[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 4986 Enrolled Bill (ENR)]

        H.R.4986

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


 
 To provide for the enactment of the National Defense Authorization Act 
for Fiscal Year 2008, as previously enrolled, with certain modifications 
  to address the foreign sovereign immunities provisions of title 28, 
   United States Code, with respect to the attachment of property in 
 certain judgments against Iraq, the lapse of statutory authorities for 
 the payment of bonuses, special pays, and similar benefits for members 
           of the uniformed services, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TREATMENT OF EXPLANATORY STATEMENT.

    (a) Short Title.--This Act may be cited as the ``National Defense 
Authorization Act for Fiscal Year 2008''.
    (b) Explanatory Statement.--The Joint Explanatory Statement 
submitted by the Committee of Conference for the conference report to 
accompany H.R. 1585 of the 110th Congress (Report 110-477) shall be 
deemed to be part of the legislative history of this Act and shall have 
the same effect with respect to the implementation of this Act as it 
would have had with respect to the implementation of H.R. 1585, if such 
bill had been enacted.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three divisions as 
follows:
        (1) Division A--Department of Defense Authorizations.
        (2) Division B--Military Construction Authorizations.
        (3) Division C--Department of Energy National Security 
    Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; treatment of explanatory statement.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
          Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley fighting 
          vehicle upgrades.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
          helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter 
          Information Network-Tactical program pending certification to 
          Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
          production line pending report.
Sec. 117. Stryker Mobile Gun System.

                        Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia-class submarine 
          program.
Sec. 122. Report on shipbuilding investment strategy.
Sec. 123. Sense of Congress on the preservation of a skilled United 
          States shipyard workforce.
Sec. 124. Assessments required prior to start of construction on first 
          ship of a shipbuilding program.
Sec. 125. Littoral Combat Ship (LCS) program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on Joint Cargo Aircraft.
Sec. 132. Clarification of limitation on retirement of U-2 aircraft.
Sec. 133. Repeal of requirement to maintain retired C-130E tactical 
          aircraft.
Sec. 134. Limitation on retirement of C-130E/H tactical airlift 
          aircraft.
Sec. 135. Limitation on retirement of KC-135E aerial refueling aircraft.
Sec. 136. Transfer to Government of Iraq of three C-130E tactical 
          airlift aircraft.
Sec. 137. Modification of limitations on retirement of B-52 bomber 
          aircraft.

          TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Operational test and evaluation of Future Combat Systems 
          network.
Sec. 212. Limitation on use of funds for systems development and 
          demonstration of Joint Light Tactical Vehicle program.
Sec. 213. Requirement to obligate and expend funds for development and 
          procurement of a competitive propulsion system for the Joint 
          Strike Fighter.
Sec. 214. Limitation on use of funds for defense-wide manufacturing 
          science and technology program.
Sec. 215. Advanced Sensor Applications Program.
Sec. 216. Active protection systems.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Participation of Director, Operational Test and Evaluation, in 
          missile defense test and evaluation activities.
Sec. 222. Study on future roles and missions of the Missile Defense 
          Agency.
Sec. 223. Budget and acquisition requirements for Missile Defense Agency 
          activities.
Sec. 224. Limitation on use of funds for replacing warhead on SM-3 Block 
          IIA missile.
Sec. 225. Extension of Comptroller General assessments of ballistic 
          missile defense programs.
Sec. 226. Limitation on availability of funds for procurement, 
          construction, and deployment of missile defenses in Europe.
Sec. 227. Sense of Congress on missile defense cooperation with Israel.
Sec. 228. Limitation on availability of funds for deployment of missile 
          defense interceptors in Alaska.
Sec. 229. Policy of the United States on protection of the United States 
          and its allies against Iranian ballistic missiles.

                        Subtitle D--Other Matters

Sec. 231. Coordination of human systems integration activities related 
          to acquisition programs.
Sec. 232. Expansion of authority for provision of laboratory facilities, 
          services, and equipment.
Sec. 233. Modification of cost-sharing requirement for Technology 
          Transition Initiative.
Sec. 234. Report on implementation of Manufacturing Technology Program.
Sec. 235. Assessment of sufficiency of test and evaluation personnel.
Sec. 236. Repeal of requirement for separate reports on technology area 
          review and assessment summaries.
Sec. 237. Modification of notice and wait requirement for obligation of 
          funds for foreign comparative test program.
Sec. 238. Strategic Plan for the Manufacturing Technology Program.
Sec. 239. Modification of authorities on coordination of Defense 
          Experimental Program to Stimulate Competitive Research with 
          similar Federal programs.
Sec. 240. Enhancement of defense nanotechnology research and development 
          program.
Sec. 241. Federally funded research and development center assessment of 
          the Defense Experimental Program to Stimulate Competitive 
          Research.
Sec. 242. Cost-benefit analysis of proposed funding reduction for High 
          Energy Laser Systems Test Facility.
Sec. 243. Prompt global strike.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with Moses Lake Wellfield Superfund Site, 
          Moses Lake, Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with the Arctic Surplus Superfund Site, 
          Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
          penalties in connection with Jackson Park Housing Complex, 
          Washington.
Sec. 314. Report on control of the brown tree snake.
Sec. 315. Notification of certain residents and civilian employees at 
          Camp Lejeune, North Carolina, of exposure to drinking water 
          contamination.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Availability of funds in Defense Information Systems Agency 
          Working Capital Fund for technology upgrades to Defense 
          Information Systems Network.
Sec. 322. Modification to public-private competition requirements before 
          conversion to contractor performance.
Sec. 323. Public-private competition at end of period specified in 
          performance agreement not required.
Sec. 324. Guidelines on insourcing new and contracted out functions.
Sec. 325. Restriction on Office of Management and Budget influence over 
          Department of Defense public-private competitions.
Sec. 326. Bid protests by Federal employees in actions under Office of 
          Management and Budget Circular A-76.
Sec. 327. Public-private competition required before conversion to 
          contractor performance.
Sec. 328. Extension of authority for Army industrial facilities to 
          engage in cooperative activities with non-Army entities.
Sec. 329. Reauthorization and modification of multi-trades demonstration 
          project.
Sec. 330. Pilot program for availability of working-capital funds to 
          Army for certain product improvements.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
          purchased by members of the Armed Forces deployed in 
          contingency operations.
Sec. 343. Extension of temporary authority for contract performance of 
          security guard functions.

                           Subtitle E--Reports

Sec. 351. Reports on National Guard readiness for emergencies and major 
          disasters.
Sec. 352. Annual report on prepositioned materiel and equipment.
Sec. 353. Report on incremental cost of early 2007 enhanced deployment.
Sec. 354. Modification of requirements of Comptroller General report on 
          the readiness of Army and Marine Corps ground forces.
Sec. 355. Plan to improve readiness of ground forces of active and 
          reserve components.
Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 357. Department of Defense Inspector General report on physical 
          security of Department of Defense installations.
Sec. 358. Review of high-altitude aviation training.
Sec. 359. Reports on safety measures and encroachment issues and master 
          plan for Warren Grove Gunnery Range, New Jersey.
Sec. 360. Report on search and rescue capabilities of the Air Force in 
          the northwestern United States.
Sec. 361. Report and master infrastructure recapitalization plan for 
          Cheyenne Mountain Air Station, Colorado.

                        Subtitle F--Other Matters

Sec. 371. Enhancement of corrosion control and prevention functions 
          within Department of Defense.
Sec. 372. Authority for Department of Defense to provide support for 
          certain sporting events.
Sec. 373. Authority to impose reasonable restrictions on payment of full 
          replacement value for lost or damaged personal property 
          transported at Government expense.
Sec. 374. Priority transportation on Department of Defense aircraft of 
          retired members residing in Commonwealths and possessions of 
          the United States for certain health care services.
Sec. 375. Recovery of missing military property.
Sec. 376. Retention of combat uniforms by members of the Armed Forces 
          deployed in support of contingency operations.
Sec. 377. Issue of serviceable material of the Navy other than to Armed 
          Forces.
Sec. 378. Reauthorization of Aviation Insurance Program.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
          active duty end strengths for fiscal years 2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
          duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
          duty in the grades of lieutenant commander, commander, and 
          captain.
Sec. 406. Increase in authorized daily average of number of members in 
          pay grade E-9.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2008 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.
Sec. 416. Future authorizations and accounting for certain reserve 
          component personnel authorized to be on active duty or full-
          time National Guard duty to provide operational support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
          strengths.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
          and responsibility.
Sec. 502. Enhanced authority for Reserve general and flag officers to 
          serve on active duty.
Sec. 503. Increase in years of commissioned service threshold for 
          discharge of probationary officers and for use of force 
          shaping authority.
Sec. 504. Mandatory retirement age for active-duty general and flag 
          officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for initial 
          appointments of officers in critically short health 
          professional specialties.
Sec. 506. Expansion of authority for reenlistment of officers in their 
          former enlisted grade.
Sec. 507. Increase in authorized number of permanent professors at the 
          United States Military Academy.
Sec. 508. Promotion of career military professors of the Navy.

                Subtitle B--Reserve Component Management

Sec. 511. Retention of military technicians who lose dual status in the 
          Selected Reserve due to combat-related disability.
Sec. 512. Constructive service credit upon original appointment of 
          Reserve officers in certain health care professions.
Sec. 513. Mandatory separation of Reserve officers in the grade of 
          lieutenant general or vice admiral after completion of 38 
          years of commissioned service.
Sec. 514. Maximum period of temporary Federal recognition of person as 
          Army National Guard officer or Air National Guard officer.
Sec. 515. Advance notice to members of reserve components of deployment 
          in support of contingency operations.
Sec. 516. Report on relief from professional licensure and certification 
          requirements for reserve component members on long-term active 
          duty.

                   Subtitle C--Education and Training

Sec. 521. Revisions to authority to pay tuition for off-duty training or 
          education.
Sec. 522. Reduction or elimination of service obligation in an Army 
          Reserve or Army National Guard troop program unit for certain 
          persons selected as medical students at Uniformed Services 
          University of the Health Sciences.
Sec. 523. Repeal of annual limit on number of ROTC scholarships under 
          Army Reserve and Army National Guard financial assistance 
          program.
Sec. 524. Treatment of prior active service of members in uniformed 
          medical accession programs.
Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased 
          increase in cadet strength limit at the United States Military 
          Academy.
Sec. 526. National Defense University master's degree programs.
Sec. 527. Authority of the Air University to confer degree of master of 
          science in flight test engineering.
Sec. 528. Enhancement of education benefits for certain members of 
          reserve components.
Sec. 529. Extension of period of entitlement to educational assistance 
          for certain members of the Selected Reserve affected by force 
          shaping initiatives.
Sec. 530. Time limit for use of educational assistance benefit for 
          certain members of reserve components and resumption of 
          benefit.
Sec. 531. Secretary of Defense evaluation of the adequacy of the degree-
          granting authorities of certain military universities and 
          educational institutions.
Sec. 532. Report on success of Army National Guard and Reserve Senior 
          Reserve Officers' Training Corps financial assistance program.
Sec. 533. Report on utilization of tuition assistance by members of the 
          Armed Forces.
Sec. 534. Navy Junior Reserve Officers' Training Corps unit for 
          Southold, Mattituck, and Greenport High Schools.
Sec. 535. Report on transfer of administration of certain educational 
          assistance programs for members of the reserve components.

        Subtitle D--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate civilian employees of the Federal 
          Government and dependents of deceased members as eligible for 
          legal assistance from Department of Defense legal staff 
          resources.
Sec. 542. Authority of judges of the United States Court of Appeals for 
          the Armed Forces to administer oaths.
Sec. 543. Modification of authorities on senior members of the Judge 
          Advocate Generals' Corps.
Sec. 544. Prohibition against members of the Armed Forces participating 
          in criminal street gangs.

                       Subtitle E--Military Leave

Sec. 551. Temporary enhancement of carryover of accumulated leave for 
          members of the Armed Forces.
Sec. 552. Enhancement of rest and recuperation leave.

                   Subtitle F--Decorations and Awards

Sec. 561. Authorization and request for award of Medal of Honor to 
          Leslie H. Sabo, Jr., for acts of valor during the Vietnam War.
Sec. 562. Authorization and request for award of Medal of Honor to Henry 
          Svehla for acts of valor during the Korean War.
Sec. 563. Authorization and request for award of Medal of Honor to 
          Woodrow W. Keeble for acts of valor during the Korean War.
Sec. 564. Authorization and request for award of Medal of Honor to 
          Private Philip G. Shadrach for acts of valor as one of 
          Andrews' Raiders during the Civil War.
Sec. 565. Authorization and request for award of Medal of Honor to 
          Private George D. Wilson for acts of valor as one of Andrews' 
          Raiders during the Civil War.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 571. Continuation of authority to assist local educational agencies 
          that benefit dependents of members of the Armed Forces and 
          Department of Defense civilian employees.
Sec. 572. Impact aid for children with severe disabilities.
Sec. 573. Inclusion of dependents of non-Department of Defense employees 
          employed on Federal property in plan relating to force 
          structure changes, relocation of military units, or base 
          closures and realignments.
Sec. 574. Payment of private boarding school tuition for military 
          dependents in overseas areas not served by defense dependents' 
          education system schools.

                      Subtitle H--Military Families

Sec. 581. Department of Defense Military Family Readiness Council and 
          policy and plans for military family readiness.
Sec. 582. Yellow Ribbon Reintegration Program.
Sec. 583. Study to enhance and improve support services and programs for 
          families of members of regular and reserve components 
          undergoing deployment.
Sec. 584. Protection of child custody arrangements for parents who are 
          members of the Armed Forces deployed in support of a 
          contingency operation.
Sec. 585. Family leave in connection with injured members of the Armed 
          Forces.
Sec. 586. Family care plans and deferment of deployment of single parent 
          or dual military couples with minor dependents.
Sec. 587. Education and treatment services for military dependent 
          children with autism.
Sec. 588. Commendation of efforts of Project Compassion in paying 
          tribute to members of the Armed Forces who have fallen in the 
          service of the United States.

                        Subtitle I--Other Matters

Sec. 590. Uniform performance policies for military bands and other 
          musical units.
Sec. 591. Transportation of remains of deceased members of the Armed 
          Forces and certain other persons.
Sec. 592. Expansion of number of academies supportable in any State 
          under STARBASE program.
Sec. 593. Gift acceptance authority.
Sec. 594. Conduct by members of the Armed Forces and veterans out of 
          uniform during hoisting, lowering, or passing of United States 
          flag.
Sec. 595. Annual report on cases reviewed by National Committee for 
          Employer Support of the Guard and Reserve.
Sec. 596. Modification of Certificate of Release or Discharge from 
          Active Duty (DD Form 214).
Sec. 597. Reports on administrative separations of members of the Armed 
          Forces for personality disorder.
Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.
Sec. 599. Recognition of members of the Monuments, Fine Arts, and 
          Archives program of the Civil Affairs and Military Government 
          Sections of the Armed Forces during and following World War 
          II.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
          without dependents who attend accession training while 
          maintaining a primary residence.
Sec. 603. Extension and enhancement of authority for temporary lodging 
          expenses for members of the Armed Forces in areas subject to 
          major disaster declaration or for installations experiencing 
          sudden increase in personnel levels.
Sec. 604. Income replacement payments for reserve component members 
          experiencing extended and frequent mobilization for active 
          duty service.
Sec. 605. Midmonth payment of basic pay for contributions of members of 
          the uniformed services participating in Thrift Savings Plan.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 610. Correction of lapsed authorities for payment of bonuses, 
          special pays, and similar benefits for members of the 
          uniformed services.
Sec. 611. Extension of certain bonus and special pay authorities for 
          Reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
          health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
          officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
          and special pays.
Sec. 615. Increase in incentive special pay and multiyear retention 
          bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Increase in maximum monthly rate of hardship duty pay and 
          authority to provide hardship duty pay in a lump sum.
Sec. 618. Definition of sea duty for career sea pay to include service 
          as off-cycle crewmembers of multi-crew ships.
Sec. 619. Reenlistment bonus for members of the Selected Reserve.
Sec. 620. Availability of Selected Reserve accession bonus for persons 
          who previously served in the Armed Forces for a short period.
Sec. 621. Availability of nuclear officer continuation pay for officers 
          with more than 26 years of commissioned service.
Sec. 622. Waiver of years-of-service limitation on receipt of critical 
          skills retention bonus.
Sec. 623. Accession bonus for participants in the Armed Forces Health 
          Professions Scholarship and Financial Assistance Program.
Sec. 624. Payment of assignment incentive pay for Reserve members 
          serving in combat zone for more than 22 months.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payment of inactive duty training travel costs for certain 
          Selected Reserve members.
Sec. 632. Survivors of deceased members eligible for transportation to 
          attend burial ceremonies.
Sec. 633. Allowance for participation of Reserves in electronic 
          screening.
Sec. 634. Allowance for civilian clothing for members of the Armed 
          Forces traveling in connection with medical evacuation.
Sec. 635. Payment of moving expenses for Junior Reserve Officers' 
          Training Corps instructors in hard-to-fill positions.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Expansion of combat-related special compensation eligibility.
Sec. 642. Inclusion of veterans with service-connected disabilities 
          rated as total by reason of unemployability under termination 
          of phase-in of concurrent receipt of retired pay and veterans' 
          disability compensation.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
          offset for dependency and indemnity compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
          required Survivor Benefit Plan annuity offset for dependency 
          and indemnity compensation.
Sec. 645. Modification of authority of members of the Armed Forces to 
          designate recipients for payment of death gratuity.
Sec. 646. Clarification of application of retired pay multiplier 
          percentage to members of the uniformed services with over 30 
          years of service.
Sec. 647. Commencement of receipt of non-regular service retired pay by 
          members of the Ready Reserve on active Federal status or 
          active duty for significant periods.
Sec. 648. Computation of years of service for purposes of retired pay 
          for non-regular service.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 651. Authority to continue commissary and exchange benefits for 
          certain involuntarily separated members of the Armed Forces.
Sec. 652. Authorization of installment deductions from pay of employees 
          of nonappropriated fund instrumentalities to collect 
          indebtedness to the United States.

   Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                               Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
          authorities of the uniformed services.
Sec. 662. Transitional provisions.

                        Subtitle G--Other Matters

Sec. 671. Referral bonus authorities.
Sec. 672. Expansion of education loan repayment program for members of 
          the Selected Reserve.
Sec. 673. Ensuring entry into United States after time abroad for 
          permanent resident alien military spouses and children.
Sec. 674. Overseas naturalization for military spouses and children.
Sec. 675. Modification of amount of back pay for members of Navy and 
          Marine Corps selected for promotion while interned as 
          prisoners of war during World War II to take into account 
          changes in Consumer Price Index.

                    TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

Sec. 701. One-year extension of prohibition on increases in certain 
          health care costs for members of the uniformed services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
          pharmacy system of pharmacy benefits program.
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal 
          procurement of pharmaceuticals.
Sec. 704. Stipend for members of reserve components for health care for 
          certain dependents.
Sec. 705. Authority for expansion of persons eligible for continued 
          health benefits coverage.
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for 
          certain members of the Selected Reserve.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Inclusion of mental health care in definition of health care 
          and report on mental health care services.

                     Subtitle B--Studies and Reports

Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE 
          Extra.
Sec. 712. Report on training in preservation of remains under combat or 
          combat-related conditions.
Sec. 713. Report on patient satisfaction surveys.
Sec. 714. Report on medical physical examinations of members of the 
          Armed Forces before their deployment.
Sec. 715. Report and study on multiple vaccinations of members of the 
          Armed Forces.
Sec. 716. Review of gender- and ethnic group-specific mental health 
          services and treatment for members of the Armed Forces.
Sec. 717. Licensed mental health counselors and the TRICARE program.
Sec. 718. Report on funding of the Department of Defense for health 
          care.

                        Subtitle C--Other Matters

Sec. 721. Prohibition on conversion of military medical and dental 
          positions to civilian medical and dental positions.
Sec. 722. Establishment of Joint Pathology Center.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                 MATTERS

Sec. 800. Short title.

              Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-Defense agencies.
Sec. 802. Lead systems integrators.
Sec. 803. Reinvestment in domestic sources of strategic materials.
Sec. 804. Clarification of the protection of strategic materials 
          critical to national security.
Sec. 805. Procurement of commercial services.
Sec. 806. Specification of amounts requested for procurement of contract 
          services.
Sec. 807. Inventories and reviews of contracts for services.
Sec. 808. Independent management reviews of contracts for services.
Sec. 809. Implementation and enforcement of requirements applicable to 
          undefinitized contractual actions.
Sec. 810. Clarification of limited acquisition authority for Special 
          Operations Command.

  Subtitle B--Provisions Relating to Major Defense Acquisition Programs

Sec. 811. Requirements applicable to multiyear contracts for the 
          procurement of major systems of the Department of Defense.
Sec. 812. Changes to Milestone B certifications.
Sec. 813. Comptroller General report on Department of Defense 
          organization and structure for major defense acquisition 
          programs.
Sec. 814. Clarification of submission of cost or pricing data on 
          noncommercial modifications of commercial items.
Sec. 815. Clarification of rules regarding the procurement of commercial 
          items.
Sec. 816. Review of systemic deficiencies on major defense acquisition 
          programs.
Sec. 817. Investment strategy for major defense acquisition programs.
Sec. 818. Report on implementation of recommendations on total ownership 
          cost for major weapon systems.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 821. Plan for restricting Government-unique contract clauses on 
          commercial contracts.
Sec. 822. Extension of authority for use of simplified acquisition 
          procedures for certain commercial items.
Sec. 823. Five-year extension of authority to carry out certain 
          prototype projects.
Sec. 824. Exemption of Special Operations Command from certain 
          requirements for certain contracts relating to vessels, 
          aircraft, and combat vehicles.
Sec. 825. Provision of authority to maintain equipment to unified 
          combatant command for joint warfighting.
Sec. 826. Market research.
Sec. 827. Modification of competition requirements for purchases from 
          Federal Prison Industries.
Sec. 828. Multiyear contract authority for electricity from renewable 
          energy sources.
Sec. 829. Procurement of fire resistant rayon fiber for the production 
          of uniforms from foreign sources.
Sec. 830. Comptroller General review of noncompetitive awards of 
          congressional and executive branch interest items.

                Subtitle D--Accountability in Contracting

Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts 
          and contracting processes in Iraq and Afghanistan.
Sec. 843. Enhanced competition requirements for task and delivery order 
          contracts.
Sec. 844. Public disclosure of justification and approval documents for 
          noncompetitive contracts.
Sec. 845. Disclosure of Government contractor audit findings.
Sec. 846. Protection for contractor employees from reprisal for 
          disclosure of certain information.
Sec. 847. Requirements for senior Department of Defense officials 
          seeking employment with defense contractors.
Sec. 848. Report on contractor ethics programs of Major Defense 
          contractors.
Sec. 849. Contingency contracting training for personnel outside the 
          acquisition workforce and evaluations of Army Commission 
          recommendations.

              Subtitle E--Acquisition Workforce Provisions

Sec. 851. Requirement for section on defense acquisition workforce in 
          strategic human capital plan.
Sec. 852. Department of Defense Acquisition Workforce Development Fund.
Sec. 853. Extension of authority to fill shortage category positions for 
          certain Federal acquisition positions.
Sec. 854. Repeal of sunset of acquisition workforce training fund.
Sec. 855. Federal acquisition workforce improvements.

              Subtitle F--Contracts in Iraq and Afghanistan

Sec. 861. Memorandum of understanding on matters relating to 
          contracting.
Sec. 862. Contractors performing private security functions in areas of 
          combat operations.
Sec. 863. Comptroller General reviews and reports on contracting in Iraq 
          and Afghanistan.
Sec. 864. Definitions and other general provisions.

              Subtitle G--Defense Materiel Readiness Board

Sec. 871. Establishment of Defense Materiel Readiness Board.
Sec. 872. Critical materiel readiness shortfalls.

                        Subtitle H--Other Matters

Sec. 881. Clearinghouse for rapid identification and dissemination of 
          commercial information technologies.
Sec. 882. Authority to license certain military designations and 
          likenesses of weapons systems to toy and hobby manufacturers.
Sec. 883. Modifications to limitation on contracts to acquire military 
          flight simulator.
Sec. 884. Requirements relating to waivers of certain domestic source 
          limitations relating to specialty metals.
Sec. 885. Telephone services for military personnel serving in combat 
          zones.
Sec. 886. Enhanced authority to acquire products and services produced 
          in Iraq and Afghanistan.
Sec. 887. Defense Science Board review of Department of Defense policies 
          and procedures for the acquisition of information technology.
Sec. 888. Green procurement policy.
Sec. 889. Comptroller General review of use of authority under the 
          Defense Production Act of 1950.
Sec. 890. Prevention of export control violations.
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and 
          Alaska Native-serving institutions.
Sec. 892. Competition for procurement of small arms supplied to Iraq and 
          Afghanistan.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Repeal of limitation on major Department of Defense 
          headquarters activities personnel and related report.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
          assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
          Department of Defense leadership positions.
Sec. 904. Management of the Department of Defense.
Sec. 905. Revision in guidance relating to combatant command acquisition 
          authority.
Sec. 906. Department of Defense Board of Actuaries.
Sec. 907. Modification of background requirement of individuals 
          appointed as Under Secretary of Defense for Acquisition, 
          Technology, and Logistics.
Sec. 908. Assistant Secretaries of the military departments for 
          acquisition matters; principal military deputies.
Sec. 909. Sense of Congress on term of Office of the Director of 
          Operational Test and Evaluation.

                      Subtitle B--Space Activities

Sec. 911. Space protection strategy.
Sec. 912. Biennial report on management of space cadre within the 
          Department of Defense.
Sec. 913. Additional report on oversight of acquisition for defense 
          space programs.

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 923. Repeal of certain qualifications requirement for director of 
          chemical demilitarization management organization.
Sec. 924. Modification of termination of assistance to State and local 
          governments after completion of the destruction of the United 
          States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Technical amendments to title 10, United States Code, arising 
          from enactment of the Intelligence Reform and Terrorism 
          Prevention Act of 2004.

                 Subtitle E--Roles and Missions Analysis

Sec. 941. Requirement for quadrennial roles and missions review.
Sec. 942. Joint Requirements Oversight Council additional duties 
          relating to core mission areas.
Sec. 943. Requirement for certification of major systems prior to 
          technology development.
Sec. 944. Presentation of future-years mission budget by core mission 
          area.

                        Subtitle F--Other Matters

Sec. 951. Department of Defense consideration of effect of climate 
          change on Department facilities, capabilities, and missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
          under National Security Education Program.
Sec. 954. Board of Regents for the Uniformed Services University of the 
          Health Sciences.
Sec. 955. Establishment of Department of Defense School of Nursing.
Sec. 956. Inclusion of commanders of Western Hemisphere combatant 
          commands in Board of Visitors of Western Hemisphere Institute 
          for Security Cooperation.
Sec. 957. Comptroller General assessment of reorganization of the Office 
          of the Under Secretary of Defense for Policy.
Sec. 958. Report on foreign language proficiency.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
          fiscal year 2008.
Sec. 1003. Authorization of additional emergency supplemental 
          appropriations for fiscal year 2007.
Sec. 1004. Modification of fiscal year 2007 general transfer authority.
Sec. 1005. Financial management transformation initiative for the 
          Defense Agencies.
Sec. 1006. Repeal of requirement for two-year budget cycle for the 
          Department of Defense.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
          forces of the United States Navy.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
          support to law enforcement agencies conducting counter-
          terrorism activities.
Sec. 1022. Expansion of authority to provide additional support for 
          counter-drug activities in certain foreign countries.
Sec. 1023. Report on counternarcotics assistance for the Government of 
          Haiti.

          Subtitle D--Miscellaneous Authorities and Limitations

Sec. 1031. Provision of Air Force support and services to foreign 
          military and state aircraft.
Sec. 1032. Department of Defense participation in Strategic Airlift 
          Capability Partnership.
Sec. 1033. Improved authority to provide rewards for assistance in 
          combating terrorism.
Sec. 1034. Support for non-Federal development and testing of material 
          for chemical agent defense.
Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related 
          parts.

                           Subtitle E--Reports

Sec. 1041. Extension and modification of report relating to hardened and 
          deeply buried targets.
Sec. 1042. Report on joint modeling and simulation activities.
Sec. 1043. Renewal of submittal of plans for prompt global strike 
          capability.
Sec. 1044. Report on workforce required to support the nuclear missions 
          of the Navy and the Department of Energy.
Sec. 1045. Comptroller General report on Defense Finance and Accounting 
          Service response to Butterbaugh v. Department of Justice.
Sec. 1046. Study on size and mix of airlift force.
Sec. 1047. Report on feasibility of establishing a domestic military 
          aviation national training center.
Sec. 1048. Limited field user evaluations for combat helmet pad 
          suspension systems.
Sec. 1049. Study on national security interagency system.
Sec. 1050. Report on solid rocket motor industrial base.
Sec. 1051. Reports on establishment of a memorial for members of the 
          Armed Forces who died in the air crash in Bakers Creek, 
          Australia, and establishment of other memorials in Arlington 
          National Cemetery.

                        Subtitle F--Other Matters

Sec. 1061. Reimbursement for National Guard support provided to Federal 
          agencies.
Sec. 1062. Congressional Commission on the Strategic Posture of the 
          United States.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Repeal of certification requirement.
Sec. 1065. Maintenance of capability for space-based nuclear detection.
Sec. 1066. Sense of Congress regarding detainees at Naval Station, 
          Guantanamo Bay, Cuba.
Sec. 1067. A report on transferring individuals detained at Naval 
          Station, Guantanamo Bay, Cuba.
Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 
          relating to use of Armed Forces in major public emergencies.
Sec. 1069. Standards required for entry to military installations in 
          United States.
Sec. 1070. Revised nuclear posture review.
Sec. 1071. Termination of Commission on the Implementation of the New 
          Strategic Posture of the United States.
Sec. 1072. Security clearances; limitations.
Sec. 1073. Improvements in the process for the issuance of security 
          clearances.
Sec. 1074. Protection of certain individuals.
Sec. 1075. Modification of authorities on Commission to Assess the 
          Threat to the United States from Electromagnetic Pulse Attack.
Sec. 1076. Sense of Congress on Small Business Innovation Research 
          Program.
Sec. 1077. Revision of proficiency flying definition.
Sec. 1078. Qualifications for public aircraft status of aircraft under 
          contract with the Armed Forces.
Sec. 1079. Communications with the Committees on Armed Services of the 
          Senate and the House of Representatives.
Sec. 1080. Retention of reimbursement for provision of reciprocal fire 
          protection services.
Sec. 1081. Pilot program on commercial fee-for-service air refueling 
          support for the Air Force.
Sec. 1082. Advisory panel on Department of Defense capabilities for 
          support of civil authorities after certain incidents.
Sec. 1083. Terrorism exception to immunity.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Extension of authority to waive annual limitation on total 
          compensation paid to Federal civilian employees working 
          overseas under areas of United States Central Command.
Sec. 1102. Continuation of life insurance coverage for Federal employees 
          called to active duty.
Sec. 1103. Transportation of dependents, household effects, and personal 
          property to former home following death of Federal employee 
          where death resulted from disease or injury incurred in the 
          Central Command area of responsibility.
Sec. 1104. Special benefits for civilian employees assigned on 
          deployment temporary change of station.
Sec. 1105. Death gratuity authorized for Federal employees.
Sec. 1106. Modifications to the National Security Personnel System.
Sec. 1107. Requirement for full implementation of personnel 
          demonstration project.
Sec. 1108. Authority for inclusion of certain Office of Defense Research 
          and Engineering positions in experimental personnel program 
          for scientific and technical personnel.
Sec. 1109. Pilot program for the temporary assignment of information 
          technology personnel to private sector organizations.
Sec. 1110. Compensation for Federal wage system employees for certain 
          travel hours.
Sec. 1111. Travel compensation for wage grade personnel.
Sec. 1112. Accumulation of annual leave by senior level employees.
Sec. 1113. Uniform allowances for civilian employees.
Sec. 1114. Flexibility in setting pay for employees who move from a 
          Department of Defense or Coast Guard nonappropriated fund 
          instrumentality position to a position in the General Schedule 
          pay system.
Sec. 1115. Retirement service credit for service as cadet or midshipman 
          at a military service academy.
Sec. 1116. Authorization for increased compensation for faculty and 
          staff of the Uniformed Services University of the Health 
          Sciences.
Sec. 1117. Report on establishment of a scholarship program for civilian 
          mental health professionals.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Military-to-military contacts and comparable activities.
Sec. 1202. Authority for support of military operations to combat 
          terrorism.
Sec. 1203. Medical care and temporary duty travel expenses for liaison 
          officers of certain foreign nations.
Sec. 1204. Extension and expansion of Department of Defense authority to 
          participate in multinational military centers of excellence.
Sec. 1205. Reauthorization of Commanders' Emergency Response Program.
Sec. 1206. Authority to build the capacity of the Pakistan Frontier 
          Corps.
Sec. 1207. Authority to equip and train foreign personnel to assist in 
          accounting for missing United States Government personnel.
Sec. 1208. Authority to provide automatic identification system data on 
          maritime shipping to foreign countries and international 
          organizations.
Sec. 1209. Report on foreign-assistance related programs carried out by 
          the Department of Defense.
Sec. 1210. Extension and enhancement of authority for security and 
          stabilization assistance.
Sec. 1211. Government Accountability Office report on Global Peace 
          Operations Initiative.
Sec. 1212. Repeal of limitations on military assistance under the 
          American Servicemembers' Protection Act of 2002.

          Subtitle B--Matters Relating to Iraq and Afghanistan

Sec. 1221. Modification of authorities relating to the Office of the 
          Special Inspector General for Iraq Reconstruction.
Sec. 1222. Limitation on availability of funds for certain purposes 
          relating to Iraq.
Sec. 1223. Report on United States policy and military operations in 
          Iraq.
Sec. 1224. Report on a comprehensive set of performance indicators and 
          measures for progress toward military and political stability 
          in Iraq.
Sec. 1225. Report on support from Iran for attacks against coalition 
          forces in Iraq.
Sec. 1226. Sense of Congress on the consequences of a failed state in 
          Iraq.
Sec. 1227. Sense of Congress on federalism in Iraq.
Sec. 1228. Tracking and monitoring of defense articles provided to the 
          Government of Iraq and other individuals and groups in Iraq.
Sec. 1229. Special Inspector General for Afghanistan Reconstruction.
Sec. 1230. Report on progress toward security and stability in 
          Afghanistan.
Sec. 1231. United States plan for sustaining the Afghanistan National 
          Security Forces.
Sec. 1232. Report on enhancing security and stability in the region 
          along the border of Afghanistan and Pakistan.
Sec. 1233. Reimbursement of certain coalition nations for support 
          provided to United States military operations.
Sec. 1234. Logistical support for coalition forces supporting operations 
          in Iraq and Afghanistan.

                     Subtitle C--Iraq Refugee Crisis

Sec. 1241. Short title.
Sec. 1242. Processing mechanisms.
Sec. 1243. United States refugee program processing priorities.
Sec. 1244. Special immigrant status for certain Iraqis.
Sec. 1245. Senior Coordinator for Iraqi Refugees and Internally 
          Displaced Persons.
Sec. 1246. Countries with significant populations of Iraqi refugees.
Sec. 1247. Motion to reopen denial or termination of asylum.
Sec. 1248. Reports.
Sec. 1249. Authorization of appropriations.

              Subtitle D--Other Authorities and Limitations

Sec. 1251. Cooperative opportunities documents under cooperative 
          research and development agreements with NATO organizations 
          and other allied and friendly foreign countries.
Sec. 1252. Extension and expansion of temporary authority to use 
          acquisition and cross-servicing agreements to lend military 
          equipment for personnel protection and survivability.
Sec. 1253. Acceptance of funds from the Government of Palau for costs of 
          United States military Civic Action Team in Palau.
Sec. 1254. Repeal of requirement relating to North Korea.
Sec. 1255. Justice for Osama bin Laden and other leaders of al Qaeda.
Sec. 1256. Extension of Counterproliferation Program Review Committee.
Sec. 1257. Sense of Congress on the Western Hemisphere Institute for 
          Security Cooperation.
Sec. 1258. Sense of Congress on Iran.

                           Subtitle E--Reports

Sec. 1261. One-year extension of update on report on claims relating to 
          the bombing of the Labelle Discotheque.
Sec. 1262. Report on United States policy toward Darfur, Sudan.
Sec. 1263. Inclusion of information on asymmetric capabilities in annual 
          report on military power of the People's Republic of China.
Sec. 1264. Report on application of the Uniform Code of Military Justice 
          to civilians accompanying the Armed Forces during a time of 
          declared war or contingency operation.
Sec. 1265. Report on family reunions between United States citizens and 
          their relatives in North Korea.
Sec. 1266. Reports on prevention of mass atrocities.
Sec. 1267. Report on threats to the United States from ungoverned areas.

   TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Specification of Cooperative Threat Reduction programs in 
          states outside the former Soviet Union.
Sec. 1304. Repeal of restrictions on assistance to states of the former 
          Soviet Union for Cooperative Threat Reduction.
Sec. 1305. Modification of authority to use Cooperative Threat Reduction 
          funds outside the former Soviet Union.
Sec. 1306. New initiatives for the Cooperative Threat Reduction Program.
Sec. 1307. Report relating to chemical weapons destruction at 
          Shchuch'ye, Russia.
Sec. 1308. National Academy of Sciences study of prevention of 
          proliferation of biological weapons.

                     TITLE XIV--OTHER AUTHORIZATIONS

                      Subtitle A--Military Programs

Sec. 1401. Working capital funds.
Sec. 1402. National Defense Sealift Fund.
Sec. 1403. Defense Health Program.
Sec. 1404. Chemical agents and munitions destruction, Defense.
Sec. 1405. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1406. Defense Inspector General.

                 Subtitle B--National Defense Stockpile

Sec. 1411. Authorized uses of National Defense Stockpile funds.
Sec. 1412. Revisions to required receipt objectives for previously 
          authorized disposals from the National Defense Stockpile.
Sec. 1413. Disposal of ferromanganese.
Sec. 1414. Disposal of chrome metal.

                Subtitle C--Armed Forces Retirement Home

Sec. 1421. Authorization of appropriations for Armed Forces Retirement 
          Home.
Sec. 1422. Administration and oversight of the Armed Forces Retirement 
          Home.

TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Joint Improvised Explosive Device Defeat Fund.
Sec. 1506. Defense-wide activities procurement.
Sec. 1507. Research, development, test, and evaluation.
Sec. 1508. Operation and maintenance.
Sec. 1509. Working capital funds.
Sec. 1510. Other Department of Defense programs.
Sec. 1511. Iraq Freedom Fund.
Sec. 1512. Iraq Security Forces Fund.
Sec. 1513. Afghanistan Security Forces Fund.
Sec. 1514. Military personnel.
Sec. 1515. Strategic Readiness Fund.
Sec. 1516. Treatment as additional authorizations.
Sec. 1517. Special transfer authority.

                   TITLE XVI--WOUNDED WARRIOR MATTERS

Sec. 1601. Short title.
Sec. 1602. General definitions.
Sec. 1603. Consideration of gender-specific needs of recovering service 
          members and veterans.

 Subtitle A--Policy on Improvements to Care, Management, and Transition 
                      of Recovering Service Members

Sec. 1611. Comprehensive policy on improvements to care, management, and 
          transition of recovering service members.
Sec. 1612. Medical evaluations and physical disability evaluations of 
          recovering service members.
Sec. 1613. Return of recovering service members to active duty in the 
          Armed Forces.
Sec. 1614. Transition of recovering service members from care and 
          treatment through the Department of Defense to care, 
          treatment, and rehabilitation through the Department of 
          Veterans Affairs.
Sec. 1615. Reports.
Sec. 1616. Establishment of a wounded warrior resource center.
Sec. 1617. Notification to Congress of hospitalization of combat wounded 
          service members.
Sec. 1618. Comprehensive plan on prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of, and research on, traumatic 
          brain injury, post-traumatic stress disorder, and other mental 
          health conditions in members of the Armed Forces.

    Subtitle B--Centers of Excellence in the Prevention, Diagnosis, 
  Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, 
            Post-Traumatic Stress Disorder, and Eye Injuries

Sec. 1621. Center of excellence in the prevention, diagnosis, 
          mitigation, treatment, and rehabilitation of traumatic brain 
          injury.
Sec. 1622. Center of excellence in prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of post-traumatic stress 
          disorder and other mental health conditions.
Sec. 1623. Center of excellence in prevention, diagnosis, mitigation, 
          treatment, and rehabilitation of military eye injuries.
Sec. 1624. Report on establishment of centers of excellence.

                     Subtitle C--Health Care Matters

Sec. 1631. Medical care and other benefits for members and former 
          members of the Armed Forces with severe injuries or illnesses.
Sec. 1632. Reimbursement of travel expenses of retired members with 
          combat-related disabilities for follow-on specialty care, 
          services, and supplies.
Sec. 1633. Respite care and other extended care benefits for members of 
          the uniformed services who incur a serious injury or illness 
          on active duty.
Sec. 1634. Reports.
Sec. 1635. Fully interoperable electronic personal health information 
          for the Department of Defense and Department of Veterans 
          Affairs.
Sec. 1636. Enhanced personnel authorities for the Department of Defense 
          for health care professionals for care and treatment of 
          wounded and injured members of the Armed Forces.
Sec. 1637. Continuation of transitional health benefits for members of 
          the Armed Forces pending resolution of service-related medical 
          conditions.

                     Subtitle D--Disability Matters

Sec. 1641. Utilization of veterans' presumption of sound condition in 
          establishing eligibility of members of the Armed Forces for 
          retirement for disability.
Sec. 1642. Requirements and limitations on Department of Defense 
          determinations of disability with respect to members of the 
          Armed Forces.
Sec. 1643. Review of separation of members of the Armed Forces separated 
          from service with a disability rating of 20 percent disabled 
          or less.
Sec. 1644. Authorization of pilot programs to improve the disability 
          evaluation system for members of the Armed Forces.
Sec. 1645. Reports on Army action plan in response to deficiencies in 
          the Army physical disability evaluation system.
Sec. 1646. Enhancement of disability severance pay for members of the 
          Armed Forces.
Sec. 1647. Assessments of continuing utility and future role of 
          temporary disability retired list.
Sec. 1648. Standards for military medical treatment facilities, 
          specialty medical care facilities, and military quarters 
          housing patients and annual report on such facilities.
Sec. 1649. Reports on Army Medical Action Plan in response to 
          deficiencies identified at Walter Reed Army Medical Center, 
          District of Columbia.
Sec. 1650. Required certifications in connection with closure of Walter 
          Reed Army Medical Center, District of Columbia.
Sec. 1651. Handbook for members of the Armed Forces on compensation and 
          benefits available for serious injuries and illnesses.

                     Subtitle E--Studies and Reports

Sec. 1661. Study on physical and mental health and other readjustment 
          needs of members and former members of the Armed Forces who 
          deployed in Operation Iraqi Freedom and Operation Enduring 
          Freedom and their families.
Sec. 1662. Access of recovering service members to adequate outpatient 
          residential facilities.
Sec. 1663. Study and report on support services for families of 
          recovering service members.
Sec. 1664. Report on traumatic brain injury classifications.
Sec. 1665. Evaluation of the Polytrauma Liaison Officer/Non-Commissioned 
          Officer program.

                        Subtitle F--Other Matters

Sec. 1671. Prohibition on transfer of resources from medical care.
Sec. 1672. Medical care for families of members of the Armed Forces 
          recovering from serious injuries or illnesses.
Sec. 1673. Improvement of medical tracking system for members of the 
          Armed Forces deployed overseas.
Sec. 1674. Guaranteed funding for Walter Reed Army Medical Center, 
          District of Columbia.
Sec. 1675. Use of leave transfer program by wounded veterans who are 
          Federal employees.
Sec. 1676. Moratorium on conversion to contractor performance of 
          Department of Defense functions at military medical 
          facilities.

                      TITLE XVII--VETERANS MATTERS

Sec. 1701. Sense of Congress on Department of Veterans Affairs efforts 
          in the rehabilitation and reintegration of veterans with 
          traumatic brain injury.
Sec. 1702. Individual rehabilitation and community reintegration plans 
          for veterans and others with traumatic brain injury.
Sec. 1703. Use of non-Department of Veterans Affairs facilities for 
          implementation of rehabilitation and community reintegration 
          plans for traumatic brain injury.
Sec. 1704. Research, education, and clinical care program on traumatic 
          brain injury.
Sec. 1705. Pilot program on assisted living services for veterans with 
          traumatic brain injury.
Sec. 1706. Provision of age-appropriate nursing home care.
Sec. 1707. Extension of period of eligibility for health care for 
          veterans of combat service during certain periods of 
          hostilities and war.
Sec. 1708. Service-connection and assessments for mental health 
          conditions in veterans.
Sec. 1709. Modification of requirements for furnishing outpatient dental 
          services to veterans with service-connected dental conditions 
          or disabilities.
Sec. 1710. Clarification of purpose of outreach services program of 
          Department of Veterans Affairs.
Sec. 1711. Designation of fiduciary or trustee for purposes of Traumatic 
          Servicemembers' Group Life Insurance.

     TITLE XVIII--NATIONAL GUARD BUREAU MATTERS AND RELATED MATTERS

Sec. 1801. Short title.

                    Subtitle A--National Guard Bureau

Sec. 1811. Appointment, grade, duties, and retirement of the Chief of 
          the National Guard Bureau.
Sec. 1812. Establishment of National Guard Bureau as joint activity of 
          the Department of Defense.
Sec. 1813. Enhancement of functions of the National Guard Bureau.
Sec. 1814. Requirement for Secretary of Defense to prepare plan for 
          response to natural disasters and terrorist events.
Sec. 1815. Determination of Department of Defense civil support 
          requirements.

          Subtitle B--Additional Reserve Component Enhancement

Sec. 1821. United States Northern Command.
Sec. 1822. Council of Governors.
Sec. 1823. Plan for Reserve Forces Policy Board.
Sec. 1824. High-level positions authorized or required to be held by 
          reserve component general or flag officers.
Sec. 1825. Retirement age and years of service limitations on certain 
          reserve general and flag officers.
Sec. 1826. Additional reporting requirements relating to National Guard 
          equipment.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
Sec. 2002. Expiration of authorizations and amounts required to be 
          specified by law.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Termination of authority to carry out fiscal year 2007 Army 
          projects for which funds were not appropriated.
Sec. 2106. Technical amendments to Military Construction Authorization 
          Act for Fiscal Year 2007.
Sec. 2107. Modification of authority to carry out certain fiscal year 
          2006 project.
Sec. 2108. Extension of authorization of certain fiscal year 2005 
          project.
Sec. 2109. Ground lease, SOUTHCOM headquarters facility, Miami-Doral, 
          Florida.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Termination of authority to carry out fiscal year 2007 Navy 
          projects for which funds were not appropriated.
Sec. 2206. Modification of authority to carry out certain fiscal year 
          2005 project.
Sec. 2207. Repeal of authorization for construction of Navy Outlying 
          Landing Field, Washington County, North Carolina.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Termination of authority to carry out fiscal year 2007 Air 
          Force projects for which funds were not appropriated.
Sec. 2306. Modification of authority to carry out certain fiscal year 
          2006 projects.
Sec. 2307. Extension of authorizations of certain fiscal year 2005 
          projects.
Sec. 2308. Extension of authorizations of certain fiscal year 2004 
          projects.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorization of appropriations, Defense Agencies.
Sec. 2404. Termination or modification of authority to carry out certain 
          fiscal year 2007 Defense Agencies projects.
Sec. 2405. Munitions demilitarization facilities, Blue Grass Army Depot, 
          Kentucky, and Pueblo Chemical Activity, Colorado.
Sec. 2406. Extension of authorizations of certain fiscal year 2005 
          projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Army National Guard construction and land 
          acquisition projects.
Sec. 2602. Authorized Army Reserve construction and land acquisition 
          projects.
Sec. 2603. Authorized Navy Reserve and Marine Corps Reserve construction 
          and land acquisition projects.
Sec. 2604. Authorized Air National Guard construction and land 
          acquisition projects.
Sec. 2605. Authorized Air Force Reserve construction and land 
          acquisition projects.
Sec. 2606. Authorization of appropriations, National Guard and Reserve.
Sec. 2607. Termination of authority to carry out fiscal year 2007 Guard 
          and Reserve projects for which funds were not appropriated.
Sec. 2608. Modification of authority to carry out fiscal year 2006 Air 
          Force Reserve construction and acquisition projects.
Sec. 2609. Extension of authorizations of certain fiscal year 2005 
          projects.
Sec. 2610. Extension of authorizations of certain fiscal year 2004 
          projects.

          TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES

Sec. 2701. Authorization of appropriations for base closure and 
          realignment activities funded through Department of Defense 
          Base Closure Account 1990.
Sec. 2702. Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005.
Sec. 2703. Authorization of appropriations for base closure and 
          realignment activities funded through Department of Defense 
          Base Closure Account 2005.
Sec. 2704. Authorized cost and scope of work variations for military 
          construction and military family housing projects related to 
          base closures and realignments.
Sec. 2705. Transfer of funds from Department of Defense Base Closure 
          Account 2005 to Department of Defense Housing Funds.
Sec. 2706. Comprehensive accounting of funding required to ensure timely 
          implementation of 2005 Defense Base Closure and Realignment 
          Commission recommendations.
Sec. 2707. Relocation of units from Roberts United States Army Reserve 
          Center and Navy-Marine Corps Reserve Center, Baton Rouge, 
          Louisiana.
Sec. 2708. Acquisition of real property, Fort Belvoir, Virginia, as part 
          of the realignment of the installation.
Sec. 2709. Report on availability of traffic infrastructure and 
          facilities to support base realignment.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec. 2801. Authority to use operation and maintenance funds for 
          construction projects outside the United States.
Sec. 2802. Clarification of requirement for authorization of military 
          construction.
Sec. 2803. Increase in thresholds for unspecified minor military 
          construction projects.
Sec. 2804. Temporary authority to support revitalization of Department 
          of Defense laboratories through unspecified minor military 
          construction projects.
Sec. 2805. Extension of authority to accept equalization payments for 
          facility exchanges.
Sec. 2806. Modifications of authority to lease military family housing.
Sec. 2807. Expansion of authority to exchange reserve component 
          facilities.
Sec. 2808. Limitation on use of alternative authority for acquisition 
          and improvement of military housing for privatization of 
          temporary lodging facilities.
Sec. 2809. Two-year extension of temporary program to use minor military 
          construction authority for construction of child development 
          centers.
Sec. 2810. Report on housing privatization initiatives.

         Subtitle B--Real Property and Facilities Administration

Sec. 2821. Requirement to report real property transactions resulting in 
          annual costs of more than $750,000.
Sec. 2822. Continued consolidation of real property provisions without 
          substantive change.
Sec. 2823. Modification of authority to lease non-excess property of the 
          military departments.
Sec. 2824. Cooperative agreement authority for management of cultural 
          resources on certain sites outside military installations.
Sec. 2825. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.
Sec. 2826. Expansion to all military departments of Army pilot program 
          for purchase of certain municipal services for military 
          installations.
Sec. 2827. Prohibition on commercial flights into Selfridge Air National 
          Guard Base.
Sec. 2828. Sense of Congress on Department of Defense actions to protect 
          installations, ranges, and military airspace from 
          encroachment.
Sec. 2829. Reports on Army and Marine Corps operational ranges.
Sec. 2830. Niagara Air Reserve Base, New York, basing report.
Sec. 2831. Report on the Pinon Canyon Maneuver Site, Colorado.

                      Subtitle C--Land Conveyances

Sec. 2841. Modification of conveyance authority, Marine Corps Base, Camp 
          Pendleton, California.
Sec. 2842. Grant of easement, Eglin Air Force Base, Florida.
Sec. 2843. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.
Sec. 2844. Modification of lease of property, National Flight Academy at 
          the National Museum of Naval Aviation, Naval Air Station, 
          Pensacola, Florida.
Sec. 2845. Land exchange, Detroit, Michigan.
Sec. 2846. Transfer of jurisdiction, former Nike missile site, Grosse 
          Ile, Michigan.
Sec. 2847. Modification to land conveyance authority, Fort Bragg, North 
          Carolina.
Sec. 2848. Land conveyance, Lewis and Clark United States Army Reserve 
          Center, Bismarck, North Dakota.
Sec. 2849. Land exchange, Fort Hood, Texas.

                       Subtitle D--Energy Security

Sec. 2861. Repeal of congressional notification requirement regarding 
          cancellation ceiling for Department of Defense energy savings 
          performance contracts.
Sec. 2862. Definition of alternative fueled vehicle.
Sec. 2863. Use of energy efficient lighting fixtures and bulbs in 
          Department of Defense facilities.
Sec. 2864. Reporting requirements relating to renewable energy use by 
          Department of Defense to meet Department electricity needs.

                        Subtitle E--Other Matters

Sec. 2871. Revised deadline for transfer of Arlington Naval Annex to 
          Arlington National Cemetery.
Sec. 2872. Transfer of jurisdiction over Air Force Memorial to 
          Department of the Air Force.
Sec. 2873. Report on plans to replace the monument at the Tomb of the 
          Unknowns at Arlington National Cemetery, Virginia.
Sec. 2874. Increased authority for repair, restoration, and preservation 
          of Lafayette Escadrille Memorial, Marnes-la-Coquette, France.
Sec. 2875. Addition of Woonsocket local protection project.
Sec. 2876. Repeal of moratorium on improvements at Fort Buchanan, Puerto 
          Rico.
Sec. 2877. Establishment of national military working dog teams monument 
          on suitable military installation.
Sec. 2878. Report required prior to removal of missiles from 564th 
          Missile Squadron.
Sec. 2879. Report on condition of schools under jurisdiction of 
          Department of Defense Education Activity.
Sec. 2880. Report on facilities and operations of Darnall Army Medical 
          Center, Fort Hood Military Reservation, Texas.
Sec. 2881. Report on feasibility of establishing a regional disaster 
          response center at Kelly Air Field, San Antonio, Texas.
Sec. 2882. Naming of housing facility at Fort Carson, Colorado, in honor 
          of the Honorable Joel Hefley, a former member of the United 
          States House of Representatives.
Sec. 2883. Naming of Navy and Marine Corps Reserve Center at Rock 
          Island, Illinois, in honor of the Honorable Lane Evans, a 
          former member of the United States House of Representatives.
Sec. 2884. Naming of research laboratory at Air Force Rome Research 
          Site, Rome, New York, in honor of the Honorable Sherwood L. 
          Boehlert, a former member of the United States House of 
          Representatives.
Sec. 2885. Naming of administration building at Joint Systems 
          Manufacturing Center, Lima, Ohio, in honor of the Honorable 
          Michael G. Oxley, a former member of the United States House 
          of Representatives.
Sec. 2886. Naming of Logistics Automation Training Facility, Army 
          Quartermaster Center and School, Fort Lee, Virginia, in honor 
          of General Richard H. Thompson.
Sec. 2887. Authority to relocate Joint Spectrum Center to Fort Meade, 
          Maryland.

      TITLE XXIX--WAR-RELATED AND EMERGENCY MILITARY CONSTRUCTION 
                             AUTHORIZATIONS

Sec. 2901. Authorized Army construction and land acquisition projects.
Sec. 2902. Authorized Navy construction and land acquisition projects.
Sec. 2903. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2904. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2905. Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005 and 
          related authorization of appropriations.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Energy security and assurance.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Reliable Replacement Warhead program.
Sec. 3112. Nuclear test readiness.
Sec. 3113. Modification of reporting requirement.
Sec. 3114. Limitation on availability of funds for Fissile Materials 
          Disposition program.
Sec. 3115. Modification of limitations on availability of funds for 
          Waste Treatment and Immobilization Plant.
Sec. 3116. Modification of sunset date of the Office of the Ombudsman of 
          the Energy Employees Occupational Illness Compensation 
          Program.
Sec. 3117. Technical amendments.

                        Subtitle C--Other Matters

Sec. 3121. Study on using existing pits for the Reliable Replacement 
          Warhead program.
Sec. 3122. Report on retirement and dismantlement of nuclear warheads.
Sec. 3123. Plan for addressing security risks posed to nuclear weapons 
          complex.
Sec. 3124. Department of Energy protective forces.
Sec. 3125. Evaluation of National Nuclear Security Administration 
          strategic plan for advanced computing.
Sec. 3126. Sense of Congress on the nuclear nonproliferation policy of 
          the United States and the Reliable Replacement Warhead 
          program.
Sec. 3127. Department of Energy report on plan to strengthen and expand 
          International Radiological Threat Reduction program.
Sec. 3128. Department of Energy report on plan to strengthen and expand 
          Materials Protection, Control, and Accounting program.
Sec. 3129. Agreements and reports on nuclear forensics capabilities.
Sec. 3130. Report on status of environmental management initiatives to 
          accelerate the reduction of environmental risks and challenges 
          posed by the legacy of the Cold War.

                Subtitle D--Nuclear Terrorism Prevention

Sec. 3131. Definitions.
Sec. 3132. Sense of Congress on the prevention of nuclear terrorism.
Sec. 3133. Minimum security standard for nuclear weapons and formula 
          quantities of strategic special nuclear material.
Sec. 3134. Annual report.

   TITLE XXXII--WAR-RELATED NATIONAL NUCLEAR SECURITY ADMINISTRATION 
                             AUTHORIZATIONS

Sec. 3201. Additional war-related authorization of appropriations for 
          National Nuclear Security Administration.

          TITLE XXXIII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3301. Authorization.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Remedial action at Moab uranium milling site.

                   TITLE XXXV--MARITIME ADMINISTRATION

           Subtitle A--Maritime Administration Reauthorization

Sec. 3501. Authorization of appropriations for fiscal year 2008.
Sec. 3502. Temporary authority to transfer obsolete combatant vessels to 
          Navy for disposal.
Sec. 3503. Vessel disposal program.

                          Subtitle B--Programs

Sec. 3511. Commercial vessel chartering authority.
Sec. 3512. Maritime Administration vessel chartering authority.
Sec. 3513. Chartering to State and local governmental instrumentalities.
Sec. 3514. Disposal of obsolete Government vessels.
Sec. 3515. Vessel transfer authority.
Sec. 3516. Sea trials for Ready Reserve Force.
Sec. 3517. Review of applications for loans and guarantees.

                    Subtitle C--Technical Corrections

Sec. 3521. Personal injury to or death of seamen.
Sec. 3522. Amendments to Chapter 537 based on Public Law 109-163.
Sec. 3523. Additional amendments based on Public Law 109-163.
Sec. 3524. Amendments based on Public Law 109-171.
Sec. 3525. Amendments based on Public Law 109-241.
Sec. 3526. Amendments based on Public Law 109-364.
Sec. 3527. Miscellaneous amendments.
Sec. 3528. Application of sunset provision to codified provision.
Sec. 3529. Additional technical corrections.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

    For purposes of this Act, the term ``congressional defense 
committees'' has the meaning given that term in section 101(a)(16) of 
title 10, United States Code.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
          Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley fighting 
          vehicle upgrades.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
          helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter 
          Information Network-Tactical program pending certification to 
          Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
          production line pending report.
Sec. 117. Stryker Mobile Gun System.

                        Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia-class submarine 
          program.
Sec. 122. Report on shipbuilding investment strategy.
Sec. 123. Sense of Congress on the preservation of a skilled United 
          States shipyard workforce.
Sec. 124. Assessments required prior to start of construction on first 
          ship of a shipbuilding program.
Sec. 125. Littoral Combat Ship (LCS) program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on Joint Cargo Aircraft.
Sec. 132. Clarification of limitation on retirement of U-2 aircraft.
Sec. 133. Repeal of requirement to maintain retired C-130E tactical 
          aircraft.
Sec. 134. Limitation on retirement of C-130E/H tactical airlift 
          aircraft.
Sec. 135. Limitation on retirement of KC-135E aerial refueling aircraft.
Sec. 136. Transfer to Government of Iraq of three C-130E tactical 
          airlift aircraft.
Sec. 137. Modification of limitations on retirement of B-52 bomber 
          aircraft.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Army as follows:
        (1) For aircraft, $4,168,798,000.
        (2) For missiles, $1,911,979,000.
        (3) For weapons and tracked combat vehicles, $3,007,489,000.
        (4) For ammunition, $2,214,576,000.
        (5) For other procurement, $12,451,312,000.
        (6) For the Joint Improvised Explosive Device Defeat Fund, 
    $228,000,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for procurement for the Navy as follows:
        (1) For aircraft, $12,432,644,000.
        (2) For weapons, including missiles and torpedoes, 
    $3,068,187,000.
        (3) For shipbuilding and conversion, $13,596,120,000.
        (4) For other procurement, $5,209,330,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for procurement for the Marine Corps in the amount 
of $2,299,419,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $1,058,832,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Air Force as follows:
        (1) For aircraft, $12,117,800,000.
        (2) For ammunition, $854,167,000.
        (3) For missiles, $4,984,102,000.
        (4) For other procurement, $15,405,832,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Defense-wide procurement in the amount of $3,280,435,000.

SEC. 105. NATIONAL GUARD AND RESERVE EQUIPMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the procurement of aircraft, missiles, wheeled and tracked combat 
vehicles, tactical wheeled vehicles, ammunition, other weapons, and 
other procurement for the reserve components of the Armed Forces in the 
amount of $980,000,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR M1A2 ABRAMS SYSTEM 
              ENHANCEMENT PACKAGE UPGRADES.

    The Secretary of the Army, in accordance with section 2306b of 
title 10, United States Code, may enter into a multiyear contract, 
beginning with the fiscal year 2008 program year, for procurement of 
M1A2 Abrams System Enhancement Package upgrades.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR M2A3/M3A3 BRADLEY 
              FIGHTING VEHICLE UPGRADES.

    The Secretary of the Army, in accordance with section 2306b of 
title 10, United States Code, may enter into a multiyear contract, 
beginning with the fiscal year 2008 program year, for procurement of 
M2A3/M3A3 Bradley fighting vehicle upgrades.

SEC. 113. MULTIYEAR PROCUREMENT AUTHORITY FOR CONVERSION OF CH-47D 
              HELICOPTERS TO CH-47F CONFIGURATION.

    The Secretary of the Army may, in accordance with section 2306b of 
title 10, United States Code, enter into a multiyear contract, 
beginning with the fiscal year 2008 program year, for conversion of CH-
47D helicopters to the CH-47F configuration.

SEC. 114. MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F HELICOPTERS.

    The Secretary of the Army may, in accordance with section 2306b of 
title 10, United States Code, enter into a multiyear contract, 
beginning with the fiscal year 2008 program year, for procurement of 
CH-47F helicopters.

SEC. 115. LIMITATION ON USE OF FUNDS FOR INCREMENT 1 OF THE WARFIGHTER 
              INFORMATION NETWORK-TACTICAL PROGRAM PENDING 
              CERTIFICATION TO CONGRESS.

    (a) Funding Restricted.--Of the amounts appropriated pursuant to an 
authorization of appropriations for fiscal year 2008 or otherwise made 
available for Other Procurement, Army, that are available for Increment 
1 of the Warfighter Information Network-Tactical program, not more than 
50 percent may be obligated or expended until the Director of 
Operational Test and Evaluation submits to the congressional defense 
committees a certification, in writing, that the Director of 
Operational Test and Evaluation has approved a Test and Evaluation 
Master Plan and Initial Operational Test Plan for Increment 1 of the 
Warfighter Information Network-Tactical program.
    (b) Increment 1 Defined.--For the purposes of this section, 
Increment 1 of the Warfighter Information Network-Tactical program 
includes all program elements described as constituting ``Increment 1'' 
in the memorandum titled ``Warfighter Information Network-Tactical 
(WIN-T) Program Acquisition Decision Memorandum'', dated June 5, 2007, 
and signed by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.

SEC. 116. PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE SYSTEM 
              PRODUCTION LINE PENDING REPORT.

    (a) Prohibition.--Amounts appropriated pursuant to the 
authorization of appropriations in section 101(2) for missiles, Army, 
and in section 1502(4) for missile procurement, Army, and any other 
appropriated funds available to the Secretary of the Army may not be 
used to close the production line for the Army Tactical Missile System 
program until after the date on which the Secretary of the Army submits 
to the congressional defense committees a report that contains--
        (1) the certification of the Secretary that the long range 
    surface-to-surface strike and counter battery mission of the Army 
    can be adequately performed by other Army weapons systems or by 
    other elements of the Armed Forces; and
        (2) a plan to mitigate any shortfalls in the industrial base 
    that would be created by the closure of the production line.
    (b) Submission of Report.--The report referred to in subsection (a) 
is required not later than April 1, 2008.

SEC. 117. STRYKER MOBILE GUN SYSTEM.

    (a) Limitation on Availability of Funds.--None of the amounts 
authorized to be appropriated by sections 101(3) and 1501(3) for 
procurement of weapons and tracked combat vehicles for the Army may be 
obligated or expended for purposes of the procurement of the Stryker 
Mobile Gun System until 30 days after the date on which the Secretary 
of the Army certifies to Congress that the Stryker Mobile Gun System is 
operationally effective, suitable, and survivable for its anticipated 
deployment missions.
    (b) Waiver.--The Secretary of Defense may waive the limitation in 
subsection (a) if the Secretary--
        (1) determines that further procurement of the Stryker Mobile 
    Gun System utilizing amounts referred to in subsection (a) is in 
    the national security interest of the United States notwithstanding 
    the inability of the Secretary of the Army to make the 
    certification required by that subsection; and
        (2) submits to the Congress, in writing, a notification of the 
    waiver together with a discussion of--
            (A) the reasons for the determination described in 
        paragraph (1); and
            (B) the actions that will be taken to mitigate any 
        deficiencies that cause the Stryker Mobile Gun System not to be 
        operationally effective, suitable, or survivable, as that case 
        may be, as described in subsection (a).

                       Subtitle C--Navy Programs

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA-CLASS SUBMARINE 
              PROGRAM.

    (a) Authority.--The Secretary of the Navy may, in accordance with 
section 2306b of title 10, United States Code, enter into multiyear 
contracts, beginning with the fiscal year 2009 program year, for the 
procurement of Virginia-class submarines and Government-furnished 
equipment associated with the Virginia-class submarine program.
    (b) Limitation.--The Secretary may not enter into a contract 
authorized by subsection (a) until--
        (1) the Secretary submits to the congressional defense 
    committees a certification that the Secretary has made, with 
    respect to that contract, each of the findings required by 
    subsection (a) of section 2306b of title 10, United States Code; 
    and
        (2) a period of 30 days has elapsed after the date of the 
    transmission of such certification.

SEC. 122. REPORT ON SHIPBUILDING INVESTMENT STRATEGY.

    (a) Study Required.--The Secretary of the Navy shall provide for a 
study to determine the effectiveness of current financing mechanisms 
for providing incentives for contractors to make shipbuilding capital 
expenditures, and to assess potential capital expenditure incentives 
that would lead to ship construction or life-cycle cost savings to the 
Federal Government. The study shall examine--
        (1) potential improvements in design tools and techniques, 
    material management, technology insertion, systems integration and 
    testing, and other key processes and functions that would lead to 
    reduced construction costs;
        (2) construction process improvements that would reduce 
    procurement and life-cycle costs of the vessels under construction 
    at the contractor's facilities; and
        (3) incentives for investment in shipyard infrastructure that 
    support construction process improvements.
    (b) Report.--Not later than October 1, 2008, the Secretary of the 
Navy shall submit to the congressional defense committees a report 
providing the results of the study under subsection (a). The report 
shall include each of the following:
        (1) An assessment of the shipbuilding industrial base, as 
    measured by a 10-year history for major shipbuilders with respect 
    to--
            (A) estimated value of shipbuilding facilities;
            (B) critical shipbuilding capabilities;
            (C) capital expenditures;
            (D) major investments in process improvements; and
            (E) costs for related Navy shipbuilding projects.
        (2) A description of mechanisms available to the Government and 
    industry to finance facilities and process improvements, 
    including--
            (A) contract incentive and award fees;
            (B) facilities capital cost of money;
            (C) facilities depreciation;
            (D) progress payment provisions;
            (E) other contract terms and conditions;
            (F) State and Federal tax provisions and tax incentives;
            (G) the National Shipbuilding Research Program; and
            (H) any other mechanisms available.
        (3) A summary of potential shipbuilding investments that offer 
    greatest reduction to shipbuilding costs, including, for each such 
    investment--
            (A) a project description;
            (B) an estimate of required investment;
            (C) the estimated return on investment; and
            (D) alternatives for financing the investment.
        (4) The Navy's strategy for providing incentives for 
    contractors' capital expenditures that would lead to ship 
    construction or life-cycle savings to the Federal Government, 
    including identification of any specific changes in legislative 
    authority that would be required for the Secretary to execute this 
    strategy.
    (c) Utilization of Other Studies and Outside Experts.--The study 
shall build upon the results of the 2005 and 2006 Global Shipbuilding 
Industrial Base Benchmarking studies. Financial analysis associated 
with the report shall be conducted in consultation with financial 
experts independent of the Department of Defense.

SEC. 123. SENSE OF CONGRESS ON THE PRESERVATION OF A SKILLED UNITED 
              STATES SHIPYARD WORKFORCE.

    (a) Sense of Congress.--It is the sense of Congress that the 
preservation of a robust domestic skilled workforce is required for the 
national shipbuilding infrastructure and particularly essential to the 
construction of ships for the United States Navy.
    (b) Study Required.--
        (1) In general.--The Secretary of the Navy shall determine, on 
    a one-time, non-recurring basis, and in consultation with the 
    Department of Labor, the average number of H2B visa workers 
    employed by the major shipbuilders in the construction of United 
    States Navy ships during the calendar year ending December 31, 
    2007. The study shall also identify the number of workers 
    petitioned by the major shipbuilders for use in calendar year 2008, 
    as of the first quarter of calendar year 2008.
        (2) Report.--Not later than April 1, 2008, the Secretary of the 
    Navy shall submit to the congressional defense committees a report 
    containing the results of the study required by subsection (b).
        (3) Definitions.--In this paragraph--
            (A) the term ``major shipbuilder'' means a prime contractor 
        or a first-tier subcontractor responsible for delivery of 
        combatant and support vessels required for the naval vessel 
        force, as reported within the annual naval vessel construction 
        plan required by section 231 of title 10, United States Code; 
        and
            (B) the term ``H2B visa'' means a non-immigrant visa 
        program that permits employers to hire foreign workers to come 
        temporarily to the United States and perform temporary non-
        agricultural services or labor on a one-time, seasonal, 
        peakload, or intermittent basis.

SEC. 124. ASSESSMENTS REQUIRED PRIOR TO START OF CONSTRUCTION ON FIRST 
              SHIP OF A SHIPBUILDING PROGRAM.

    (a) In General.--Concurrent with approving the start of 
construction of the first ship for any major shipbuilding program, the 
Secretary of the Navy shall--
        (1) submit a report to the congressional defense committees on 
    the results of any production readiness review; and
        (2) certify to the congressional defense committees that the 
    findings of any such review support commencement of construction.
    (b) Report.--The report required by subsection (a)(1) shall 
include, at a minimum, an assessment of each of the following:
        (1) The maturity of the ship's design, as measured by stability 
    of the ship contract specifications and the degree of completion of 
    detail design and production design drawings.
        (2) The maturity of developmental command and control systems, 
    weapon and sensor systems, and hull, mechanical and electrical 
    systems.
        (3) The readiness of the shipyard facilities and workforce to 
    begin construction.
        (4) The Navy's estimated cost at completion and the adequacy of 
    the budget to support the estimate.
        (5) The Navy's estimated delivery date and description of any 
    variance to the contract delivery date.
        (6) The extent to which adequate processes and metrics are in 
    place to measure and manage program risks.
    (c) Applicability.--This section applies to each major shipbuilding 
program beginning after the date of the enactment of this Act.
    (d) Definitions.--For the purposes of subsection (a):
        (1) Start of construction.--The term ``start of construction'' 
    means the beginning of fabrication of the hull and superstructure 
    of the ship.
        (2) First ship.--The term ``first ship'' applies to a ship if--
            (A) the ship is the first ship to be constructed under that 
        shipbuilding program; or
            (B) the shipyard at which the ship is to be constructed has 
        not previously started construction on a ship under that 
        shipbuilding program.
        (3) Major shipbuilding program.--The term ``major shipbuilding 
    program'' means a program for the construction of combatant and 
    support vessels required for the naval vessel force, as reported 
    within the annual naval vessel construction plan required by 
    section 231 of title 10, United States Code.
        (4) Production readiness review.--The term ``production 
    readiness review'' means a formal examination of a program prior to 
    the start of construction to determine if the design is ready for 
    production, production engineering problems have been resolved, and 
    the producer has accomplished adequate planning for the production 
    phase.

SEC. 125. LITTORAL COMBAT SHIP (LCS) PROGRAM.

    Section 124 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3157) is amended by striking 
subsections (a), (b), (c), and (d) and inserting the following:
    ``(a) Limitation of Costs.--
        ``(1) In general.--The total amount obligated or expended for 
    the procurement costs of post-2007 LCS vessels shall not exceed 
    $460,000,000 per vessel.
        ``(2) Procurement costs.--For purposes of this section, 
    procurement costs shall include all costs for plans, basic 
    construction, change orders, electronics, ordnance, contractor 
    support, and other costs associated with completion of production 
    drawings, ship construction, test, and delivery, including work 
    performed post-delivery that is required to meet original contract 
    requirements.
        ``(3) Post-2007 lcs vessels.--For purposes of this section, the 
    term `post-2007 LCS vessel' means a vessel in the Littoral Combat 
    Ship (LCS) class of vessels, the procurement of which is funded 
    from amounts appropriated pursuant to an authorization of 
    appropriations or otherwise made available for fiscal year 2008 or 
    any fiscal year thereafter.
    ``(b) Contract Type.--The Secretary of the Navy shall employ a 
fixed-price type contract for construction of post-2007 LCS vessels.
    ``(c) Limitation of Government Liability.--The Secretary of the 
Navy shall not enter into a contract, or modify a contract, for 
construction or final delivery of post-2007 LCS vessels if the 
limitation of the Government's cost liability, when added to the sum of 
other budgeted procurement costs, would exceed $460,000,000 per vessel.
    ``(d) Adjustment of Limitation Amount.--The Secretary of the Navy 
may adjust the amount set forth in subsections (a)(1) and (c) for 
vessels referred to in such subsections by the following:
        ``(1) The amounts of increases or decreases in costs 
    attributable to compliance with changes in Federal, State, or local 
    laws enacted after September 30, 2007.
        ``(2) The amounts of outfitting costs and costs required to 
    complete post-delivery test and trials.''.

                     Subtitle D--Air Force Programs

SEC. 131. LIMITATION ON JOINT CARGO AIRCRAFT.

    No funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for procurement, or for 
research, development, test, and evaluation, may be obligated or 
expended for the Joint Cargo Aircraft until 30 days after the Secretary 
of Defense submits to the congressional defense committees each of the 
following:
        (1) The Air Force Air Mobility Command's Airlift Mobility 
    Roadmap.
        (2) The Department of Defense Intra-Theater Airlift 
    Capabilities Study.
        (3) The Department of Defense Joint Intra-Theater Distribution 
    Assessment.
        (4) The Joint Cargo Aircraft Functional Area Series Analysis.
        (5) The Joint Cargo Aircraft Analysis of Alternatives.
        (6) The Joint Intra-Theater Airlift Fleet Mix Analysis.
        (7) The Secretary's certification that--
            (A) there is, within the Department of the Army, Department 
        of the Air Force, Army National Guard, or Air National Guard, a 
        capability gap or shortfall with respect to intra-theater 
        airlift; and
            (B) validated requirements exist to fill that gap or 
        shortfall through procurement of the Joint Cargo Aircraft.

SEC. 132. CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    Section 133(b) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2112) is 
amended--
        (1) in paragraph (1)--
            (A) by striking ``After fiscal year 2007'' and inserting 
        ``For each fiscal year after fiscal year 2007''; and
            (B) by inserting after ``Secretary of Defense'' the 
        following: ``, in that fiscal year,''; and
        (2) in paragraph (2)--
            (A) by inserting after ``Department of Defense'' the 
        following: ``in a fiscal year''; and
            (B) by inserting after ``Congress'' the following: ``in 
        that fiscal year''.

SEC. 133. REPEAL OF REQUIREMENT TO MAINTAIN RETIRED C-130E TACTICAL 
              AIRCRAFT.

    (a) In General.--Effective as of the date specified in subsection 
(b), section 137(b) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2114) is 
repealed.
    (b) Specified Date.--The date specified in this subsection is the 
date that is 30 days after the date on which the Secretary of the Air 
Force submits to the congressional defense committees the Fleet Mix 
Analysis Study.

SEC. 134. LIMITATION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT 
              AIRCRAFT.

    (a) General Prohibition.--The Secretary of the Air Force may not 
retire C-130E/H tactical airlift aircraft during fiscal year 2008, 
except as provided in subsection (b).
    (b) Contingent Authority to Retire Certain C-130E Aircraft.--
Effective as of the date specified in subsection (d), subsection (a) 
shall not apply to C-130E tactical airlift aircraft, and the number of 
such aircraft retired by the Secretary of the Air Force during fiscal 
year 2008 may not exceed 24.
    (c) Treatment of Retired Aircraft.--The Secretary of the Air Force 
shall maintain each C-130E tactical airlift aircraft that is retired 
during fiscal year 2008 in a condition that would allow recall of that 
aircraft to future service.
    (d) Specified Date.--The date specified in this subsection is the 
date that is 30 days after the date on which the Secretary of the Air 
Force submits to the congressional defense committees the Fleet Mix 
Analysis Study.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AERIAL REFUELING 
              AIRCRAFT.

    (a) Limitation on Retirement of More Than 48 Aircraft.--The 
Secretary of the Air Force may not retire more than 48 KC-135E aerial 
refueling aircraft of the Air Force during fiscal year 2008, except as 
provided in subsection (b).
    (b) Contingent Authority to Retire 37 Additional Aircraft.--
Effective as of the date specified in subsection (c), the number of 
such aircraft retired by the Secretary of the Air Force during fiscal 
year 2008 may not exceed 85.
    (c) Specified Date.--The date specified in this subsection is the 
date that is 15 days after the date on which the Secretary of the Air 
Force submits to the congressional defense committees the Secretary's 
certification that--
        (1) the system design and development contract for the KC-X 
    program has been awarded; and
        (2) if a protest is submitted pursuant to subchapter 5 of title 
    31, United States Code--
            (A) the protest has been resolved in favor of the Federal 
        agency; or
            (B) the Secretary has authorized performance of the 
        contract (notwithstanding the protest).

SEC. 136. TRANSFER TO GOVERNMENT OF IRAQ OF THREE C-130E TACTICAL 
              AIRLIFT AIRCRAFT.

    The Secretary of the Air Force may transfer not more than 3 C-130E 
tactical airlift aircraft, allowed to be retired under the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364), to the Government of Iraq.

SEC. 137. MODIFICATION OF LIMITATIONS ON RETIREMENT OF B-52 BOMBER 
              AIRCRAFT.

    (a) Maintenance of Primary, Backup, and Attrition Reserve Inventory 
of Aircraft.--Subsection (a) of section 131 of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2111) is amended--
        (1) in paragraph (1)--
            (A) in subparagraph (A), by striking ``and'' at the end;
            (B) in subparagraph (B), by striking the period at the end 
        and inserting a semicolon; and
            (C) by adding at the end the following:
            ``(C) shall maintain in a common capability configuration a 
        primary aircraft inventory of not less than 63 such aircraft, a 
        backup aircraft inventory of not less than 11 such aircraft, 
        and an attrition reserve aircraft inventory of not less than 2 
        such aircraft; and
            ``(D) shall not keep any such aircraft referred to in 
        subparagraph (C) in a status considered excess to the 
        requirements of the possessing command and awaiting disposition 
        instructions.''; and
        (2) by adding at the end the following:
        ``(3) Definitions.--For purposes of paragraph (1):
            ``(A) The term `primary aircraft inventory' means aircraft 
        assigned to meet the primary aircraft authorization to--
                ``(i) a unit for the performance of its wartime 
            mission;
                ``(ii) a training unit primarily for technical and 
            specialized training for crew personnel or leading to 
            aircrew qualification;
                ``(iii) a test unit for testing of the aircraft or its 
            components for purposes of research, development, test and 
            evaluation, operational test and evaluation, or to support 
            testing programs; or
                ``(iv) meet requirements for special missions not 
            elsewhere classified.
            ``(B) The term `backup aircraft inventory' means aircraft 
        above the primary aircraft inventory to permit scheduled and 
        unscheduled depot level maintenance, modifications, 
        inspections, and repairs, and certain other mitigating 
        circumstances without reduction of aircraft available for the 
        assigned mission.
            ``(C) The term `attrition reserve aircraft inventory' means 
        aircraft required to replace anticipated losses of primary 
        aircraft inventory due to peacetime accidents or wartime 
        attrition.
        ``(4) Treatment of retired aircraft.--Of the aircraft retired 
    in accordance with paragraph (1)(A), the Secretary of the Air Force 
    may use not more than 2 such aircraft for maintenance ground 
    training.''.
    (b) Notice of Retirement.--Subsection (b)(1) of such section is 
amended by striking ``45 days'' and inserting ``60 days''.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Operational test and evaluation of Future Combat Systems 
          network.
Sec. 212. Limitation on use of funds for systems development and 
          demonstration of Joint Light Tactical Vehicle Program.
Sec. 213. Requirement to obligate and expend funds for development and 
          procurement of a competitive propulsion system for the Joint 
          Strike Fighter.
Sec. 214. Limitation on use of funds for defense-wide manufacturing 
          science and technology program.
Sec. 215. Advanced Sensor Applications Program.
Sec. 216. Active protection systems.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Participation of Director, Operational Test and Evaluation, in 
          missile defense test and evaluation activities.
Sec. 222. Study on future roles and missions of the Missile Defense 
          Agency.
Sec. 223. Budget and acquisition requirements for Missile Defense Agency 
          activities.
Sec. 224. Limitation on use of funds for replacing warhead on SM-3 Block 
          IIA missile.
Sec. 225. Extension of Comptroller General assessments of ballistic 
          missile defense programs.
Sec. 226. Limitation on availability of funds for procurement, 
          construction, and deployment of missile defenses in Europe.
Sec. 227. Sense of Congress on missile defense cooperation with Israel.
Sec. 228. Limitation on availability of funds for deployment of missile 
          defense interceptors in Alaska.
Sec. 229. Policy of the United States on protection of the United States 
          and its allies against Iranian ballistic missiles.

                        Subtitle D--Other Matters

Sec. 231. Coordination of human systems integration activities related 
          to acquisition programs.
Sec. 232. Expansion of authority for provision of laboratory facilities, 
          services, and equipment.
Sec. 233. Modification of cost sharing requirement for Technology 
          Transition Initiative.
Sec. 234. Report on implementation of Manufacturing Technology Program.
Sec. 235. Assessment of sufficiency of test and evaluation personnel.
Sec. 236. Repeal of requirement for separate reports on technology area 
          review and assessment summaries.
Sec. 237. Modification of notice and wait requirement for obligation of 
          funds for foreign comparative test program.
Sec. 238. Strategic Plan for the Manufacturing Technology Program.
Sec. 239. Modification of authorities on coordination of Defense 
          Experimental Program to Stimulate Competitive Research with 
          similar Federal programs.
Sec. 240. Enhancement of defense nanotechnology research and development 
          program.
Sec. 241. Federally funded research and development center assessment of 
          the Defense Experimental Program to Stimulate Competitive 
          Research.
Sec. 242. Cost-benefit analysis of proposed funding reduction for High 
          Energy Laser Systems Test Facility.
Sec. 243. Prompt global strike.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
        (1) For the Army, $10,840,392,000.
        (2) For the Navy, $16,980,732,000.
        (3) For the Air Force, $25,692,521,000.
        (4) For Defense-wide activities, $20,213,900,000, of which 
    $180,264,000 is authorized for the Director of Operational Test and 
    Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2008.--Of the amounts authorized to be appropriated 
by section 201, $10,913,944,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense budget activity 1, 2, or 3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. OPERATIONAL TEST AND EVALUATION OF FUTURE COMBAT SYSTEMS 
              NETWORK.

    (a) Operational Test and Evaluation Required.--The Secretary of the 
Army, in cooperation with the Director, Operational Test and 
Evaluation, shall complete an operational test and evaluation (as 
defined in section 139(a)(2)(A) of title 10, United States Code), of 
the FCS network in a realistic environment simulating operational 
conditions. The operational test and evaluation shall--
        (1) be conducted in accordance with a Future Combat Systems 
    Test and Evaluation Master Plan approved by the Director, 
    Operational Test and Evaluation;
        (2) be conducted using prototype equipment, sensors, and 
    software for the FCS network;
        (3) be conducted in a manner that simulates a full Future 
    Combat Systems brigade;
        (4) be conducted, to the maximum extent possible, using actual 
    communications equipment instead of computer simulations;
        (5) be conducted in a realistic operational electronic warfare 
    environment, including enemy electronic warfare and network 
    attacks; and
        (6) include, to the maximum extent possible, all sensor 
    information feeds the FCS network is designed to incorporate.
    (b) FCS Network Defined.--In this section, the term ``FCS network'' 
includes all sensors, information systems, computers, and 
communications systems necessary to support Future Combat Systems 
brigade operations.
    (c) Report.--Not later than 120 days after completing the 
operational test and evaluation required by subsection (a), the 
Director, Operational Test and Evaluation shall submit to the 
congressional defense committees a report on the outcome of the 
operational test and evaluation. The report shall include, at a 
minimum--
        (1) an evaluation of the overall operational effectiveness of 
    the FCS network, including--
            (A) an evaluation of the FCS network's capability to 
        transmit the volume and classes of data required by Future 
        Combat Systems approved requirements; and
            (B) an evaluation of the FCS network's performance in a 
        degraded condition due to enemy network attack, sophisticated 
        enemy electronic warfare, adverse weather conditions, and 
        terrain variability;
        (2) an evaluation of the FCS network's ability to improve 
    friendly force knowledge of the location and capability of enemy 
    forces and combat systems; and
        (3) an evaluation of the overall operational suitability of the 
    FCS network.
    (d) Limitation Pending Submission of Report.--
        (1) In general.--No funds, with the exception of funds for 
    advanced procurement, appropriated pursuant to an authorization of 
    appropriations or otherwise made available to the Department of the 
    Army for any fiscal year may be obligated for low-rate initial 
    production or full-rate production of Future Combat Systems manned 
    ground vehicles until 60 days after the date on which the report is 
    submitted under subsection (c).
        (2) Waiver authority.--The Secretary of Defense may waive the 
    limitation in paragraph (1) if the Secretary determines that such a 
    waiver is critical for national security. Such a waiver shall not 
    become effective until 45 days after the date on which the 
    Secretary submits to the congressional defense committees a written 
    notice of the waiver.
        (3) Inapplicability to the non line of sight cannon vehicle.--
    The limitation in paragraph (1) does not apply to the Non Line of 
    Sight Cannon vehicle.

SEC. 212. LIMITATION ON USE OF FUNDS FOR SYSTEMS DEVELOPMENT AND 
              DEMONSTRATION OF JOINT LIGHT TACTICAL VEHICLE PROGRAM.

    Of the amounts appropriated pursuant to an authorization of 
appropriations or otherwise made available for the Joint Light Tactical 
Vehicle Program for the acquisition program phase of systems 
development and demonstration for fiscal year 2008 or any fiscal year 
thereafter, no more than 50 percent of those amounts may be obligated 
or expended until after--
        (1) the Under Secretary of Defense for Acquisition, Technology, 
    and Logistics, or the appropriate milestone decision authority, 
    makes the certification required by section 2366a of title 10, 
    United States Code, with respect to the Joint Light Tactical 
    Vehicle Program; and
        (2) the certification has been received by the congressional 
    defense committees.

SEC. 213. REQUIREMENT TO OBLIGATE AND EXPEND FUNDS FOR DEVELOPMENT AND 
              PROCUREMENT OF A COMPETITIVE PROPULSION SYSTEM FOR THE 
              JOINT STRIKE FIGHTER.

    Of the funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for fiscal year 2008 or any 
year thereafter, for research, development, test, and evaluation and 
procurement for the Joint Strike Fighter Program, the Secretary of 
Defense shall ensure the obligation and expenditure in each such fiscal 
year of sufficient annual amounts for the continued development and 
procurement of 2 options for the propulsion system for the Joint Strike 
Fighter in order to ensure the development and competitive production 
for the propulsion system for the Joint Strike Fighter.

SEC. 214. LIMITATION ON USE OF FUNDS FOR DEFENSE-WIDE MANUFACTURING 
              SCIENCE AND TECHNOLOGY PROGRAM.

    No funds available to the Office of the Secretary of Defense for 
any fiscal year may be obligated or expended for the defense-wide 
manufacturing science and technology program unless the Director, 
Defense Research and Engineering, ensures each of the following:
        (1) A component of the Department of Defense has requested and 
    evaluated--
            (A) competitive proposals, for each project under the 
        program that is not a project covered by subparagraph (B); and
            (B) proposals from as many sources as is practicable under 
        the circumstances, for a project under the program if the 
        disclosure of the needs of the Department of Defense with 
        respect to that project would compromise the national security.
        (2) Each project under the program is carried out--
            (A) in accordance with the statutory requirements of the 
        Manufacturing Technology Program established by section 2521 of 
        title 10, United States Code; and
            (B) in compliance with all requirements of any directive 
        that applies to manufacturing technology.
        (3) An implementation plan has been developed.

SEC. 215. ADVANCED SENSOR APPLICATIONS PROGRAM.

    (a) Transfer of Funds.--(1) Of the amount authorized to be 
appropriated by section 201(3) for research, development, test, and 
evaluation, Air Force activities, and made available for the activities 
of the Intelligence Systems Support Office, an aggregate of $13,000,000 
shall be transferred to the Advanced Sensor Applications Program not 
later than 60 days after the date of the enactment of this Act.
    (2) Of the amount authorized to be appropriated by section 301(2) 
for operation and maintenance, Navy activities, and made available for 
the activities of the Office of Naval Intelligence, an aggregate of 
$5,000,000 shall be transferred to the Advanced Sensor Applications 
Program not later than 60 days after the date of the enactment of this 
Act.
    (b) Assignment of Program.--Management of the program shall reside 
within the office of the Under Secretary of Defense for Intelligence 
until certain conditions specified in the classified annex to the 
statement of managers accompanying this Act are met. The program shall 
be executed by the Commander, Naval Air Systems Command in consultation 
with the Program Executive Officer for Aviation for the Navy.

SEC. 216. ACTIVE PROTECTION SYSTEMS.

    (a) Live-Fire Tests Required.--
        (1) In general.--The Secretary of Defense shall undertake live-
    fire tests, of appropriate foreign and domestic active protection 
    systems with size, weight, and power characteristics suitable for 
    protecting wheeled tactical vehicles, especially light wheeled 
    tactical vehicles, in order--
            (A) to determine the effectiveness of such systems for 
        protecting wheeled tactical vehicles; and
            (B) to develop information useful in the consideration of 
        the adoption of such systems in defense acquisition programs.
        (2) Reports.--Not later than March 1 of each of 2008 and 2009, 
    the Secretary shall submit to the congressional defense committees 
    a report on the results of the tests undertaken under paragraph (1) 
    as of the date of such report.
        (3) Funding.--The live-fire tests required by paragraph (1) 
    shall be conducted using funds authorized and appropriated for the 
    Joint Improvised Explosive Device Defeat Fund.
    (b) Comprehensive Assessment Required.--
        (1) In general.--The Secretary shall undertake a comprehensive 
    assessment of active protection systems in order to develop 
    information useful in the development of joint active protection 
    systems and other defense programs.
        (2) Elements.--The assessment under paragraph (1) shall 
    include--
            (A) an identification of the potential merits and 
        operational costs of the use of active protection systems by 
        United States military forces;
            (B) a characterization of the threats that use of active 
        protection systems by potential adversaries would pose to 
        United States military forces and weapons;
            (C) an identification and assessment of countermeasures to 
        active protection systems;
            (D) an analysis of collateral damage potential of active 
        protection systems;
            (E) an identification and assessment of emerging direct-
        fire and top-attack threats to defense systems that could 
        potentially deploy active protection systems; and
            (F) an identification and assessment of critical technology 
        elements of active protection systems.
        (3) Report.--Not later than December 31, 2008, the Secretary 
    shall submit to the congressional defense committees a report on 
    the assessment under paragraph (1).

                 Subtitle C--Ballistic Missile Defense

SEC. 221. PARTICIPATION OF DIRECTOR, OPERATIONAL TEST AND EVALUATION, 
              IN MISSILE DEFENSE TEST AND EVALUATION ACTIVITIES.

    Section 139 of title 10, United States Code, is amended--
        (1) by redesignating subsections (f) through (j) as subsections 
    (g) through (k), respectively; and
        (2) by inserting after subsection (e) the following new 
    subsection (f):
    ``(f)(1) The Director of the Missile Defense Agency shall make 
available to the Director of Operational Test and Evaluation the 
results of all tests and evaluations conducted by the Missile Defense 
Agency and of all studies conducted by the Missile Defense Agency in 
connection with tests and evaluations in the Missile Defense Agency.
    ``(2) The Director of Operational Test and Evaluation may require 
that such observers as the Director designates be present during the 
preparation for and the conducting of any test and evaluation conducted 
by the Missile Defense Agency.
    ``(3) The Director of Operational Test and Evaluation shall have 
access to all records and data in the Department of Defense (including 
the records and data of the Missile Defense Agency) that the Director 
considers necessary to review in order to carry out his duties under 
this subsection.''.

SEC. 222. STUDY ON FUTURE ROLES AND MISSIONS OF THE MISSILE DEFENSE 
              AGENCY.

    (a) In General.--The Secretary of Defense shall enter into an 
agreement with 1 of the Federally Funded Research and Development 
Centers under which the Center shall carry out an independent study to 
examine, and make recommendations with respect to, the long-term 
structure, roles, and missions of the Missile Defense Agency.
    (b) Matters Included.--
        (1) Review.--The study shall include a full review of the 
    structure, roles, and missions of the Missile Defense Agency.
        (2) Assessments.--The study shall include an examination and 
    assessment of the current and future--
            (A) structure, roles, and missions of the Missile Defense 
        Agency;
            (B) relationship of the Missile Defense Agency with--
                (i) the Office of the Under Secretary of Defense for 
            Acquisition, Technology, and Logistics;
                (ii) the Office of the Under Secretary of Defense for 
            Policy;
                (iii) the Director of Operational Test and Evaluation;
                (iv) the Commander of the United States Strategic 
            Command and other combatant commanders;
                (v) the Joint Requirements Oversight Council; and
                (vi) the military departments;
            (C) operations and sustainment of missile defenses;
            (D) acquisition process for missile defense;
            (E) requirements process for missile defense; and
            (F) transition and transfer of missile defense capabilities 
        to the military departments.
        (3) Recommendations.--The study shall include recommendations 
    as to how the Missile Defense Agency can be made more effective to 
    support the needs of the warfighter, especially with regard to 
    near-term missile defense capabilities. The study shall also 
    examine the full range of options for the future of the Missile 
    Defense Agency and shall include, but not be limited to, specific 
    recommendations as to whether--
            (A) the Missile Defense Agency should be maintained in its 
        current configuration;
            (B) the scope and nature of the Missile Defense Agency 
        should be changed from an organization focused on research and 
        development to an organization focused on combat support;
            (C) any functions and responsibilities should be added to 
        the Missile Defense Agency, in part or in whole, from other 
        entities such as the United States Strategic Command and the 
        military departments; and
            (D) any functions and responsibilities of the Missile 
        Defense Agency should be transferred, in part or in whole, to 
        other entities such as the United States Strategic Command and 
        the military departments.
    (c) Cooperation From Government.--In carrying out the study, the 
Federally Funded Research and Development Center shall receive the full 
and timely cooperation of the Secretary of Defense and any other United 
States Government official in providing the Center with analyses, 
briefings, and other information necessary for the fulfillment of its 
responsibilities.
    (d) Report.--Not later than September 1, 2008, the Federally Funded 
Research and Development Center shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a report on its findings, conclusions, and 
recommendations.
    (e) Funding.--Funds for the study shall be provided from amounts 
appropriated for the Department of Defense.

SEC. 223. BUDGET AND ACQUISITION REQUIREMENTS FOR MISSILE DEFENSE 
              AGENCY ACTIVITIES.

    (a) Revised Budget Structure.--The budget justification materials 
submitted to Congress in support of the Department of Defense budget 
for any fiscal year after fiscal year 2009 (as submitted with the 
budget of the President under section 1105(a) of title 31, United 
States Code) shall set forth separately amounts requested for the 
Missile Defense Agency for each of the following:
        (1) Research, development, test, and evaluation.
        (2) Procurement.
        (3) Operation and maintenance.
        (4) Military construction.
    (b) Revised Budget Structure for Fiscal Year 2009.--The budget 
justification materials submitted to Congress in support of the 
Department of Defense budget for fiscal year 2009 (as submitted with 
the budget of the President under section 1105(a) of title 31, United 
States Code) shall--
        (1) identify all known and estimated operation and support 
    costs; and
        (2) set forth separately amounts requested for the Missile 
    Defense Agency for each of the following:
            (A) Research, development, test, and evaluation.
            (B) Procurement or advance procurement of long lead items, 
        including for Terminal High Altitude Area Defense firing units 
        3 and 4, and for Standard Missile-3 Block 1A interceptors.
            (C) Military construction.
    (c) Availability of RDT&E Funds for Fiscal Year 2009.--Upon 
approval by the Secretary of Defense, and consistent with the plan 
submitted under subsection (f), funds appropriated pursuant to an 
authorization of appropriations or otherwise made available for fiscal 
year 2009 for research, development, test, and evaluation for the 
Missile Defense Agency--
        (1) may be used for the fielding of ballistic missile defense 
    capabilities approved previously by Congress; and
        (2) may not be used for--
            (A) military construction activities; or
            (B) procurement or advance procurement of long lead items, 
        including for Terminal High Altitude Area Defense firing units 
        3 and 4, and for Standard Missile-3 Block 1A interceptors.
    (d) Full Funding Requirement Not Applicable to Use of Procurement 
Funds for Fiscal Years 2009 and 2010.--In any case in which funds 
appropriated pursuant to an authorization of appropriations or 
otherwise made available for procurement for the Missile Defense Agency 
for fiscal years 2009 and 2010 are used for the fielding of ballistic 
missile defense capabilities, the funds may be used for the fielding of 
those capabilities on an ``incremental'' basis, notwithstanding any law 
or policy of the Department of Defense that would otherwise require a 
``full funding'' basis.
    (e) Relationship to Other Law.--Nothing in this provision shall be 
construed to alter or otherwise affect in any way the applicability of 
the requirements and other provisions of section 234(a) through (d) of 
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375; 118 Stat. 1837; 10 U.S.C. 2431 note).
    (f) Plan Required.--Not later than March 1, 2008, the Director of 
the Missile Defense Agency shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a plan for transitioning the Missile Defense Agency 
from using exclusively research, development, test, and evaluation 
funds to using procurement, military construction, operations and 
maintenance, and research, development, test, and evaluation funds for 
the appropriate budget activities, and for transitioning from 
incremental funding to full funding for fiscal years after fiscal year 
2010.
    (g) Objectives for Acquisition Activities.--
        (1) In general.--Commencing as soon as practicable, but not 
    later than the submittal to Congress of the budget for the 
    President for fiscal year 2009 under section 1105(a) of title 31, 
    United States Code, the Missile Defense Agency shall take 
    appropriate actions to achieve the following objectives in its 
    acquisition activities:
            (A) Improved transparency.
            (B) Improved accountability.
            (C) Enhanced oversight.
        (2) Required actions.--In order to achieve the objectives 
    specified in paragraph (1), the Missile Defense Agency shall, at a 
    minimum, take actions as follows:
            (A) Establish acquisition cost, schedule, and performance 
        baselines for each ballistic missile defense system element 
        that--
                (i) has entered the equivalent of the systems 
            development and demonstration phase of acquisition; or
                (ii) is being produced and acquired for operational 
            fielding.
            (B) Provide unit cost reporting data for each ballistic 
        missile defense system element covered by subparagraph (A), and 
        secure independent estimation and verification of such cost 
        reporting data.
            (C) Include, in the budget justification materials 
        described in subsection (a), a description of actions being 
        taken in the fiscal year in which such materials are submitted, 
        and the actions to be taken in the fiscal year covered by such 
        materials, to achieve such objectives.
        (3) Specification of ballistic missile defense system 
    elements.--The ballistic missile defense system elements that, as 
    of October 2007, are ballistic missile defense system elements 
    covered by paragraph (2)(A) are the following elements:
            (A) Ground-based Midcourse Defense.
            (B) Aegis Ballistic Missile Defense.
            (C) Terminal High Altitude Area Defense.
            (D) Forward-Based X-band radar-Transportable (AN/TPY-2).
            (E) Command, Control, Battle Management, and 
        Communications.
            (F) Sea-Based X-band radar.
            (G) Upgraded Early Warning radars.

SEC. 224. LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON SM-3 
              BLOCK IIA MISSILE.

    None of the funds appropriated or otherwise made available pursuant 
to an authorization of appropriations in this Act may be obligated or 
expended to replace the unitary warhead on the SM-3 Block IIA missile 
with the Multiple Kill Vehicle until after the Secretary of Defense 
certifies to Congress that--
        (1) the United States and Japan have reached an agreement to 
    replace the unitary warhead on the SM-3 Block IIA missile; and
        (2) replacing the unitary warhead on the SM-3 Block IIA missile 
    with the Multiple Kill Vehicle will not delay the expected 
    deployment date of 2014-2015 for that missile.

SEC. 225. EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC 
              MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act for Fiscal 
Year 2002 (10 U.S.C. 2431 note) is amended--
        (1) in paragraph (1), by striking ``through 2008'' and 
    inserting ``through 2013''; and
        (2) in paragraph (2), by striking ``through 2009'' and 
    inserting ``through 2014''.

SEC. 226. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT, 
              CONSTRUCTION, AND DEPLOYMENT OF MISSILE DEFENSES IN 
              EUROPE.

    (a) General Limitation.--No funds authorized to be appropriated by 
this Act may be obligated or expended for procurement, site activation, 
construction, preparation of equipment for, or deployment of a long-
range missile defense system in Europe until the following conditions 
have been met:
        (1) The governments of the countries in which major components 
    of such missile defense system (including interceptors and 
    associated radars) are proposed to be deployed have each given 
    final approval to any missile defense agreements negotiated between 
    such governments and the United States Government concerning the 
    proposed deployment of such components in their countries.
        (2) Forty five days have elapsed following the receipt by 
    Congress of the report required under subsection (c)(6).
    (b) Additional Limitation.--In addition to the limitation in 
subsection (a), no funds authorized to be appropriated by this Act may 
be obligated or expended for the acquisition or deployment of 
operational missiles of a long-range missile defense system in Europe 
until the Secretary of Defense, after receiving the views of the 
Director of Operational Test and Evaluation, submits to Congress a 
report certifying that the proposed interceptor to be deployed as part 
of such missile defense system has demonstrated, through successful, 
operationally realistic flight testing, a high probability of working 
in an operationally effective manner.
    (c) Report on Independent Assessment for Ballistic Missile Defense 
in Europe.--
        (1) Independent assessment.--Not later than 30 days after the 
    date of the enactment of this Act, the Secretary of Defense shall 
    select a federally funded research and development center to 
    conduct an independent assessment of options for ballistic missile 
    defense for forward deployed forces of the United States and its 
    allies in Europe and for the United States homeland.
        (2) Analysis of administration proposal.--The study shall 
    provide a full analysis of the Administration's proposal to protect 
    forward-deployed forces of the United States and its allies in 
    Europe, forward-deployed radars in Europe, and the United States by 
    deploying, in Europe, interceptors and radars of the Ground-Based 
    Midcourse Defense (GMD) system. In providing the analysis, the 
    study shall examine each of the following matters:
            (A) The threat to Europe and the United States of ballistic 
        missiles (including short-range, medium-range, intermediate-
        range, and long-range ballistic missiles) from Iran, including 
        the likelihood and timing of such threats.
            (B) The technical capabilities of the system, as so 
        deployed, to effectively protect forward-deployed forces of the 
        United States and its allies in Europe, forward-deployed radars 
        in Europe, and the United States against the threat specified 
        in subparagraph (A).
            (C) The degree of coverage of the European territory of 
        members of the North Atlantic Treaty Organization.
            (D) The political implications of such a deployment on the 
        United States, the North Atlantic Treaty Organization, and 
        other interested parties.
            (E) Integration and interoperability with North Atlantic 
        Treaty Organization missile defenses.
            (F) The operational issues associated with such a 
        deployment, including operational effectiveness.
            (G) The force structure implications of such a deployment, 
        including a comparative analysis of alternative deployment 
        options.
            (H) The budgetary implications of such a deployment, 
        including possible allied cost sharing, and the cost-
        effectiveness of such a deployment.
            (I) Command and control arrangements, including any command 
        and control roles for the United States European Command and 
        the North Atlantic Treaty Organization.
            (J) Potential opportunities for participation by the 
        Government of Russia.
        (3) Analysis of alternatives.--The study shall also provide a 
    full analysis of alternative systems that could be deployed to 
    fulfill, in whole or in part, the protective purposes of the 
    Administration's proposal. The alternative systems shall include a 
    range of feasible combinations of other missile defense systems 
    that are available or are expected to be available as of 2015 and 
    2020. These should include, but not be limited to, the following:
            (A) The Patriot PAC-3 system.
            (B) The Medium Extended Air Defense System.
            (C) The Aegis Ballistic Missile Defense system, with all 
        variants of the Standard Missile-3 interceptor.
            (D) The Terminal High Altitude Area Defense (THAAD) system.
            (E) Forward-Based X-band Transportable (FBX-T) radars.
            (F) The Kinetic Energy Interceptor (KEI).
            (G) Other non-United States, North Atlantic Treaty 
        Organization missile defense systems or components.
        (4) Matters examined.--In providing the analysis, the study 
    shall examine, for each alternative system included, each of the 
    matters specified in paragraph (2).
        (5) Cooperation of other agencies.--The Secretary of Defense 
    shall provide the federally funded research and development center 
    selected under paragraph (1) data, analyses, briefings, and other 
    information as the center considers necessary to carry out the 
    assessment described in that paragraph. Furthermore, the Director 
    of National Intelligence and the heads of other departments and 
    agencies of the United States Government shall also provide the 
    center the appropriate data, analyses, briefings, and other 
    information necessary for the purpose of carrying out the 
    assessment described in that paragraph.
        (6) Report.--Not later than 180 days after the date of the 
    enactment of this Act, the federally funded research and 
    development center shall submit to the congressional defense 
    committees and the Secretary of Defense a report on the results of 
    the study. The report shall be in unclassified form, but may 
    include a classified annex.
        (7) Funding.--Of the amounts appropriated or otherwise made 
    available pursuant to the authorization of appropriations in 
    section 201(4), $1,000,000 is available to carry out the study 
    required by this subsection.
    (d) Construction.--Nothing in this section shall be construed to 
limit continuing obligation and expenditure of funds for missile 
defense, including for research and development and for other 
activities not otherwise limited by subsection (a) or (b), including, 
but not limited to, site surveys, studies, analysis, and planning and 
design for the proposed missile defense deployment in Europe.

SEC. 227. SENSE OF CONGRESS ON MISSILE DEFENSE COOPERATION WITH ISRAEL.

    (a) Sense of Congress.--It is the sense of Congress that the United 
States should have an active program of ballistic missile defense 
cooperation with Israel, and should take steps to improve the 
coordination, interoperability, and integration of United States and 
Israeli missile defense capabilities, and to enhance the capability of 
both nations to defend against ballistic missile threats present in the 
Middle East region.
    (b) Report.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of Defense shall submit to the 
    congressional defense committees a report on the status of missile 
    defense cooperation between the United States and Israel.
        (2) Content.--The report submitted under this subsection shall 
    include each of the following:
            (A) A description of the current program of ballistic 
        missile defense cooperation between the United States and 
        Israel, including its objectives and results to date.
            (B) A description of steps taken within the previous five 
        years to improve the interoperability and coordination of the 
        missile defense capabilities of the United States and Israel.
            (C) A description of steps planned to be taken by the 
        governments of the United States and Israel in the future to 
        improve the coordination, interoperability, and integration of 
        their missile defense capabilities.
            (D) A description of joint efforts of the United States and 
        Israel to develop ballistic missile defense technologies.
            (E) A description of joint missile defense exercises and 
        training that have been conducted by the United States and 
        Israel, and the lessons learned from those exercises.
            (F) A description of the joint missile defense testing 
        activities of the United States and Israel, past and planned, 
        and the benefits of such joint testing activities.
            (G) A description of how the United States and Israel share 
        threat assessments regarding the ballistic missile threat.
            (H) Any other matters that the Secretary considers 
        appropriate.

SEC. 228. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT OF MISSILE 
              DEFENSE INTERCEPTORS IN ALASKA.

    None of the funds authorized to be appropriated by this Act may be 
obligated or expended to deploy more than 40 Ground-Based Interceptors 
at Fort Greely, Alaska, until the Secretary of Defense, after receiving 
the views of the Director of Operational Test and Evaluation, submits 
to Congress a certification that the Block 2006 Ground-based Midcourse 
Defense element of the Ballistic Missile Defense System has 
demonstrated, through operationally realistic end-to-end flight 
testing, that it has a high probability of working in an operationally 
effective manner.

SEC. 229. POLICY OF THE UNITED STATES ON PROTECTION OF THE UNITED 
              STATES AND ITS ALLIES AGAINST IRANIAN BALLISTIC MISSILES.

    (a) Finding.--Congress finds that Iran maintains a nuclear program 
in continued defiance of the international community while developing 
ballistic missiles of increasing sophistication and range that--
        (1) pose a threat to--
            (A) the forward-deployed forces of the United States;
            (B) North Atlantic Treaty Organization (NATO) allies in 
        Europe; and
            (C) other allies and friendly foreign countries in the 
        region; and
        (2) eventually could pose a threat to the United States 
    homeland.
    (b) Policy of the United States.--It is the policy of the United 
States--
        (1) to develop, test, and deploy, as soon as technologically 
    feasible, in conjunction with allies and friendly foreign countries 
    whenever possible, an effective defense against the threat from 
    Iran described in subsection (a) that will provide protection--
            (A) for the forward-deployed forces of the United States, 
        NATO allies, and other allies and friendly foreign countries in 
        the region; and
            (B) for the United States homeland;
        (2) to encourage the NATO alliance to accelerate its efforts 
    to--
            (A) protect NATO territory in Europe against the existing 
        threat of Iranian short- and medium-range ballistic missiles; 
        and
            (B) facilitate the ability of NATO allies to acquire the 
        missile defense systems needed to provide a wide-area defense 
        capability against short- and medium-range ballistic missiles; 
        and
        (3) to proceed with the activities specified in paragraphs (1) 
    and (2) in a manner such that any missile defense systems fielded 
    by the United States in Europe are integrated with or complementary 
    to missile defense systems fielded by NATO in Europe.

                       Subtitle D--Other Matters

SEC. 231. COORDINATION OF HUMAN SYSTEMS INTEGRATION ACTIVITIES RELATED 
              TO ACQUISITION PROGRAMS.

    (a) In General.--The Secretary of Defense, acting through the Under 
Secretary of Defense for Acquisition, Technology, and Logistics, shall 
coordinate and manage human systems integration activities throughout 
the acquisition programs of the Department of Defense.
    (b) Administration.--In carrying out subsection (a), the Secretary 
shall designate a senior official to be responsible for the effort.
    (c) Responsibilities.--In carrying out this section, the senior 
official designated in subsection (b) shall--
        (1) coordinate the planning, management, and execution of such 
    activities; and
        (2) identify and recommend, as appropriate, resource 
    requirements for human systems integration activities.
    (d) Designation.--The designation required by subsection (b) shall 
be made not later than 60 days after the date of the enactment of this 
Act.

SEC. 232. EXPANSION OF AUTHORITY FOR PROVISION OF LABORATORY 
              FACILITIES, SERVICES, AND EQUIPMENT.

    Section 2539b of title 10, United States Code, is amended--
        (1) in subsection (a)--
            (A) in paragraph (2) by striking ``and'' at the end;
            (B) in paragraph (3) by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(4) make available to any person or entity, through leases, 
    contracts, or other appropriate arrangements, facilities, services, 
    and equipment of any government laboratory, research center, or 
    range, if the facilities, services, and equipment provided will not 
    be in direct competition with the domestic private sector.'';
        (2) in subsection (c)--
            (A) by striking ``for services''; and
            (B) by striking ``subsection (a)(3)'' and inserting 
        ``subsections (a)(3) and (a)(4)''; and
        (3) in subsection (d)--
            (A) by striking ``for services made available''; and
            (B) by striking ``subsection (a)(3)'' and inserting 
        ``subsections (a)(3) and (a)(4)''.

SEC. 233. MODIFICATION OF COST SHARING REQUIREMENT FOR TECHNOLOGY 
              TRANSITION INITIATIVE.

    Paragraph (2) of section 2359a(f) of title 10, United States Code, 
is amended to read as follows:
    ``(2) The amount of funds provided to a project under paragraph (1) 
by the military department or Defense Agency concerned shall be the 
appropriate share of the military department or Defense Agency, as the 
case may be, of the cost of the project, as determined by the 
Manager.''.

SEC. 234. REPORT ON IMPLEMENTATION OF MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Report Required.--Not later than September 1, 2008, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the implementation of the technologies and 
processes developed under the Manufacturing Technology Program required 
by section 2521 of title 10, United States Code.
    (b) Elements.--The report shall identify each technology or process 
implemented and, for each such technology or process, shall identify--
        (1) the project of the Manufacturing Technology Program through 
    which the technology or process was developed, the Federal and non-
    Federal participants in that project, and the duration of the 
    project;
        (2) the organization or program implementing the technology or 
    process, and a description of the implementation;
        (3) the funding required to implement the technology or 
    process, including--
            (A) funds provided by military departments and Defense 
        Agencies under the Manufacturing Technology Program;
            (B) funds provided by the Department of Defense, or any 
        element of the Department, to co-develop the technology or 
        process;
            (C) to the maximum extent practicable, funds provided by 
        the Department of Defense, or any element of the Department, 
        to--
                (i) mature the technology or process prior to 
            transition to the Manufacturing Technology Program; and
                (ii) provide for the implementation of the technology 
            or process;
        (4) the total value of industry cost share, if applicable;
        (5) if applicable, the total value of cost avoidance or cost 
    savings directly attributable to the implementation of the 
    technology or process; and
        (6) a description of any system performance enhancements, 
    technology performance enhancements, or improvements in a 
    manufacturing readiness level of a system or a technology.
    (c) Definition.--For purposes of this section, the term 
``implementation'' refers to--
        (1) the use of a technology or process in the manufacture of 
    defense materiel;
        (2) the inclusion of a technology or process in the systems 
    engineering plan for a program of record; or
        (3) the use of a technology or process for the manufacture of 
    commercial items.
    (d) Scope.--The report shall include technologies or processes 
developed with funds appropriated or otherwise made available for the 
Manufacturing Technology programs of the military departments and 
Defense Agencies for fiscal years 2003 through 2005.

SEC. 235. ASSESSMENT OF SUFFICIENCY OF TEST AND EVALUATION PERSONNEL.

    (a) Assessment Required.--The Director of Operational Test and 
Evaluation shall assess whether the Director's professional staff meets 
the requirement of section 139(j) of title 10, United States Code, that 
the staff be sufficient to carry out the Director's duties and 
responsibilities.
    (b) Inclusion in Report.--The Director shall include the results of 
the assessment in the report, required by section 139(g) of title 10, 
United States Code, summarizing the operational test and evaluation 
activities during fiscal year 2007.

SEC. 236. REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON TECHNOLOGY AREA 
              REVIEW AND ASSESSMENT SUMMARIES.

    Subsection (c) of section 253 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3179; 10 U.S.C. 
2501 note) is repealed.

SEC. 237. MODIFICATION OF NOTICE AND WAIT REQUIREMENT FOR OBLIGATION OF 
              FUNDS FOR FOREIGN COMPARATIVE TEST PROGRAM.

    Paragraph (3) of section 2350a(g) of title 10, United States Code, 
is amended to read as follows:
    ``(3) The Director of Defense Research and Engineering shall notify 
the congressional defense committees of the intent to obligate funds 
made available to carry out this subsection not less than 7 days before 
such funds are obligated.''.

SEC. 238. STRATEGIC PLAN FOR THE MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General.--Section 2521 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Five-Year Strategic Plan.--(1) The Secretary shall develop a 
plan for the program that includes the following:
        ``(A) The overall manufacturing technology goals, milestones, 
    priorities, and investment strategy for the program.
        ``(B) The objectives of, and funding for, the program for each 
    military department and each Defense Agency that shall participate 
    in the program during the period of the plan.
    ``(2) The Secretary shall include in the plan mechanisms for 
assessing the effectiveness of the program under the plan.
    ``(3) The Secretary shall update the plan on a biennial basis.
    ``(4) Each plan, and each update to the plan, shall cover a period 
of five fiscal years.''.
    (b) Initial Development and Submission of Plan.--
        (1) Development.--The Secretary of Defense shall develop the 
    strategic plan required by subsection (e) of section 2521 of title 
    10, United States Code (as added by subsection (a) of this 
    section), so that the plan goes into effect at the beginning of 
    fiscal year 2009.
        (2) Submission.--Not later than the date on which the budget of 
    the President for fiscal year 2010 is submitted to Congress under 
    section 1105 of title 31, United States Code, the Secretary shall 
    submit to the Committee on Armed Services of the Senate and the 
    Committee on Armed Services of the House of Representatives the 
    plan specified in paragraph (1).

SEC. 239. MODIFICATION OF AUTHORITIES ON COORDINATION OF DEFENSE 
              EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH 
              WITH SIMILAR FEDERAL PROGRAMS.

    Section 257(e)(2) of the National Defense Authorization Act for 
Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by striking ``shall'' 
each place it appears and inserting ``may''.

SEC. 240. ENHANCEMENT OF DEFENSE NANOTECHNOLOGY RESEARCH AND 
              DEVELOPMENT PROGRAM.

    (a) Program Purposes.--Subsection (b) of section 246 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314; 116 Stat. 2500; 10 U.S.C. 2358 note) is amended--
        (1) in paragraph (2), by striking ``in nanoscale research and 
    development'' and inserting ``in the National Nanotechnology 
    Initiative and with the National Nanotechnology Coordination Office 
    under section 3 of the 21st Century Nanotechnology Research and 
    Development Act (15 U.S.C. 7502)''; and
        (2) in paragraph (3), by striking ``portfolio of fundamental 
    and applied nanoscience and engineering research initiatives'' and 
    inserting ``portfolio of nanotechnology research and development 
    initiatives''.
    (b) Program Administration.--
        (1) Administration through under secretary of defense for 
    acquisition, technology, and logistics.--Subsection (c) of such 
    section is amended--
            (A) by striking ``the Director of Defense Research and 
        Engineering'' and inserting ``the Under Secretary of Defense 
        for Acquisition, Technology, and Logistics''; and
            (B) by striking ``The Director'' and inserting ``The Under 
        Secretary''.
        (2) Other administrative matters.--Such subsection is further 
    amended--
            (A) in paragraph (2), by striking ``the Department's 
        increased investment in nanotechnology research and development 
        and the National Nanotechnology Initiative; and'' and inserting 
        ``investments by the Department and other departments and 
        agencies participating in the National Nanotechnology 
        Initiative in nanotechnology research and development;'';
            (B) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following new paragraph:
        ``(4) oversee Department of Defense participation in 
    interagency coordination of the program with other departments and 
    agencies participating in the National Nanotechnology 
    Initiative.''.
    (c) Program Activities.--Such section is further amended--
        (1) by striking subsection (d); and
        (2) by adding at the end the following new subsection (d):
    ``(d) Strategic Plan.--The Under Secretary shall develop and 
maintain a strategic plan for defense nanotechnology research and 
development that--
        ``(1) is integrated with the strategic plan for the National 
    Nanotechnology Initiative and the strategic plans of the Director 
    of Defense Research and Engineering, the military departments, and 
    the Defense Agencies; and
        ``(2) includes a clear strategy for transitioning the research 
    into products needed by the Department.''.
    (d) Reports.--Such section is further amended by adding at the end 
the following new subsection:
    ``(e) Reports.--
        ``(1) In general.--Not later than March 1 of each of 2009, 
    2011, and 2013, the Under Secretary of Defense for Acquisition, 
    Technology, and Logistics shall submit to the congressional defense 
    committees a report on the program.
        ``(2) Matters included.--Each report under paragraph (1) shall 
    include the following:
            ``(A) A review of--
                ``(i) the long-term challenges and specific technical 
            goals of the program; and
                ``(ii) the progress made toward meeting such challenges 
            and achieving such goals.
            ``(B) An assessment of current and proposed funding levels 
        for the program, including an assessment of the adequacy of 
        such funding levels to support program activities.
            ``(C) A review of the coordination of activities under the 
        program within the Department of Defense, with other 
        departments and agencies of the United States, and with the 
        National Nanotechnology Initiative.
            ``(D) A review and analysis of the findings and 
        recommendations relating to the Department of Defense of the 
        most recent triennial external review of the National 
        Nanotechnology Program under section 5 of the 21st Century 
        Nanotechnology Research and Development Act (15 U.S.C. 1704), 
        and a description of initiatives of the Department to implement 
        such recommendations.
            ``(E) An assessment of technology transition from 
        nanotechnology research and development to enhanced warfighting 
        capabilities, including contributions from the Department of 
        Defense Small Business Innovative Research and Small Business 
        Technology Transfer Research programs, and the Department of 
        Defense Manufacturing Technology program, and an identification 
        of acquisition programs and deployed defense systems that are 
        incorporating nanotechnologies.
            ``(F) An assessment of global nanotechnology research and 
        development in areas of interest to the Department, including 
        an identification of the use of nanotechnologies in any foreign 
        defense systems.
            ``(G) An assessment of the defense nanotechnology 
        manufacturing and industrial base and its capability to meet 
        the near and far term requirements of the Department.
            ``(H) Such recommendations for additional activities under 
        the program to meet emerging national security requirements as 
        the Under Secretary considers appropriate.
        ``(3) Classification.--Each report under paragraph (1) shall be 
    submitted in unclassified form, but may include a classified 
    annex.''.

SEC. 241. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER ASSESSMENT 
              OF THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
              COMPETITIVE RESEARCH.

    (a) Assessment Required.--The Secretary of Defense shall--
        (1) utilize a defense federally funded research and development 
    center to carry out an assessment of the effectiveness of the 
    Defense Experimental Program to Stimulate Competitive Research; and
        (2) not later than nine months after the date of the enactment 
    of this Act, submit to the Committees on Armed Services of the 
    Senate and the House of Representatives a report on that 
    assessment.
    (b) Matters Assessed.--The report under subsection (a) shall 
include the following:
        (1) A description and assessment of the tangible results and 
    progress toward the objectives of the program, including--
            (A) an identification of any past program activities that 
        led to, or were fundamental to, applications used by, or 
        supportive of, operational users; and
            (B) an assessment of whether the program has expanded the 
        national research infrastructure.
        (2) An assessment whether the activities undertaken under the 
    program are consistent with the statute authorizing the program.
        (3) An assessment whether the various elements of the program, 
    such as structure, funding, staffing, project solicitation and 
    selection, and administration, are working effectively and 
    efficiently to support the effective execution of the program.
        (4) A description and assessment of past and ongoing activities 
    of State planning committees under the program in supporting the 
    achievement of the objectives of the program.
        (5) An analysis of the advantages and disadvantages of having 
    an institution-based formula for qualification to participate in 
    the program when compared with the advantages and disadvantages of 
    having a State-based formula for qualification to participate in 
    supporting defense missions and the objective of expanding the 
    Nation's defense research infrastructure.
        (6) An identification of mechanisms for improving the 
    management and implementation of the program, including 
    modification of the statute authorizing the program, Department 
    regulations, program structure, funding levels, funding strategy, 
    or the activities of the State committees.
        (7) Any other matters the Secretary considers appropriate.

SEC. 242. COST-BENEFIT ANALYSIS OF PROPOSED FUNDING REDUCTION FOR HIGH 
              ENERGY LASER SYSTEMS TEST FACILITY.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report containing a cost-benefit 
analysis of the proposed reduction in Army research, development, test, 
and evaluation funding for the High Energy Laser Systems Test Facility.
    (b) Evaluation of Impact on Other Military Departments.--The report 
required under subsection (a) shall include an evaluation of the impact 
of the proposed reduction in funding on each Department of Defense 
organization or activity that utilizes the High Energy Laser Systems 
Test Facility.

SEC. 243. PROMPT GLOBAL STRIKE.

    (a) Research, Development, and Testing Plan.--The Secretary of 
Defense shall submit to the congressional defense committees a 
research, development, and testing plan for prompt global strike 
program objectives for fiscal years 2008 through 2013.
    (b) Plan for Obligation and Expenditure of Funds.--
        (1) In general.--The Under Secretary of Defense for 
    Acquisition, Technology, and Logistics shall submit to the 
    congressional defense committees a plan for obligation and 
    expenditure of funds available for prompt global strike for fiscal 
    year 2008. The plan shall include correlations between each 
    technology application being developed in fiscal year 2008 and the 
    prompt global strike alternative or alternatives toward which the 
    technology application applies.
        (2) Limitation.--The Under Secretary shall not implement the 
    plan required by paragraph (1) until at least 10 days after the 
    plan is submitted as required by that paragraph.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with Moses Lake Wellfield Superfund Site, 
          Moses Lake, Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with the Arctic Surplus Superfund Site, 
          Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
          penalties in connection with Jackson Park Housing Complex, 
          Washington.
Sec. 314. Report on control of the brown tree snake.
Sec. 315. Notification of certain residents and civilian employees at 
          Camp Lejeune, North Carolina, of exposure to drinking water 
          contamination.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Availability of funds in Defense Information Systems Agency 
          Working Capital Fund for technology upgrades to Defense 
          Information Systems Network.
Sec. 322. Modification to public-private competition requirements before 
          conversion to contractor performance.
Sec. 323. Public-private competition at end of period specified in 
          performance agreement not required.
Sec. 324. Guidelines on insourcing new and contracted out functions.
Sec. 325. Restriction on Office of Management and Budget influence over 
          Department of Defense public-private competitions.
Sec. 326. Bid protests by Federal employees in actions under Office of 
          Management and Budget Circular A-76.
Sec. 327. Public-private competition required before conversion to 
          contractor performance.
Sec. 328. Extension of authority for Army industrial facilities to 
          engage in cooperative activities with non-Army entities.
Sec. 329. Reauthorization and modification of multi-trades demonstration 
          project.
Sec. 330. Pilot program for availability of working-capital funds to 
          Army for certain product improvements.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
          purchased by members of the Armed Forces deployed in 
          contingency operations.
Sec. 343. Extension of temporary authority for contract performance of 
          security guard functions.

                           Subtitle E--Reports

Sec. 351. Reports on National Guard readiness for emergencies and major 
          disasters.
Sec. 352. Annual report on prepositioned materiel and equipment.
Sec. 353. Report on incremental cost of early 2007 enhanced deployment.
Sec. 354. Modification of requirements of Comptroller General report on 
          the readiness of Army and Marine Corps ground forces.
Sec. 355. Plan to improve readiness of ground forces of active and 
          reserve components.
Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 357. Department of Defense Inspector General report on physical 
          security of Department of Defense installations.
Sec. 358. Review of high-altitude aviation training.
Sec. 359. Reports on safety measures and encroachment issues and master 
          plan for Warren Grove Gunnery Range, New Jersey.
Sec. 360. Report on search and rescue capabilities of the Air Force in 
          the northwestern United States.
Sec. 361. Report and master infrastructure recapitalization plan for 
          Cheyenne Mountain Air Station, Colorado.

                        Subtitle F--Other Matters

Sec. 371. Enhancement of corrosion control and prevention functions 
          within Department of Defense.
Sec. 372. Authority for Department of Defense to provide support for 
          certain sporting events.
Sec. 373. Authority to impose reasonable restrictions on payment of full 
          replacement value for lost or damaged personal property 
          transported at Government expense.
Sec. 374. Priority transportation on Department of Defense aircraft of 
          retired members residing in Commonwealths and possessions of 
          the United States for certain health care services.
Sec. 375. Recovery of missing military property.
Sec. 376. Retention of combat uniforms by members of the Armed Forces 
          deployed in support of contingency operations.
Sec. 377. Issue of serviceable material of the Navy other than to Armed 
          Forces.
Sec. 378. Reauthorization of Aviation Insurance Program.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
        (1) For the Army, $28,787,219,000.
        (2) For the Navy, $33,355,683,000.
        (3) For the Marine Corps, $4,967,193,000.
        (4) For the Air Force, $33,118,462,000.
        (5) For Defense-wide activities, $22,500,253,000.
        (6) For the Army Reserve, $2,509,862,000.
        (7) For the Navy Reserve, $1,186,883,000.
        (8) For the Marine Corps Reserve, $208,637,000.
        (9) For the Air Force Reserve, $2,821,817,000.
        (10) For the Army National Guard, $5,857,409,000.
        (11) For the Air National Guard, $5,456,668,000.
        (12) For the United States Court of Appeals for the Armed 
    Forces, $11,971,000.
        (13) For Environmental Restoration, Army, $434,879,000.
        (14) For Environmental Restoration, Navy, $300,591,000.
        (15) For Environmental Restoration, Air Force, $458,428,000.
        (16) For Environmental Restoration, Defense-wide, $12,751,000.
        (17) For Environmental Restoration, Formerly Used Defense 
    Sites, $270,249,000.
        (18) For Overseas Humanitarian, Disaster, and Civic Aid 
    programs, $103,300,000.
        (19) For Former Soviet Union Threat Reduction programs, 
    $428,048,000.
        (20) For the Overseas Contingency Operations Transfer Fund, 
    $5,000,000.

                  Subtitle B--Environmental Provisions

SEC. 311. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse.--
        (1) Transfer amount.--Using funds described in subsection (b), 
    the Secretary of Defense may, notwithstanding section 2215 of title 
    10, United States Code, transfer not more than $91,588.51 to the 
    Moses Lake Wellfield Superfund Site 10-6J Special Account.
        (2) Purpose of reimbursement.--The payment under paragraph (1) 
    is to reimburse the Environmental Protection Agency for its costs 
    incurred in overseeing a remedial investigation/feasibility study 
    performed by the Department of the Army under the Defense 
    Environmental Restoration Program at the former Larson Air Force 
    Base, Moses Lake Superfund Site, Moses Lake, Washington.
        (3) Interagency agreement.--The reimbursement described in 
    paragraph (2) is provided for in the interagency agreement entered 
    into by the Department of the Army and the Environmental Protection 
    Agency for the Moses Lake Wellfield Superfund Site in March 1999.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(16) for 
operation and maintenance for Environmental Restoration, Defense-wide.
    (c) Use of Funds.--The Environmental Protection Agency shall use 
the amount transferred under subsection (a) to pay costs incurred by 
the Agency at the Moses Lake Wellfield Superfund Site.

SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH THE ARCTIC SURPLUS SUPERFUND 
              SITE, FAIRBANKS, ALASKA.

    (a) Authority To Reimburse.--
        (1) Transfer amount.--Using funds described in subsection (b), 
    the Secretary of Defense may, notwithstanding section 2215 of title 
    10, United States Code, transfer not more than $186,625.38 to the 
    Hazardous Substance Superfund.
        (2) Purpose of reimbursement.--The payment under paragraph (1) 
    is to reimburse the Environmental Protection Agency for costs 
    incurred pursuant to the agreement known as ``In the Matter of 
    Arctic Surplus Superfund Site, U.S. EPA Docket Number CERCLA-10-
    2003-0114: Administrative Order on Consent for Remedial Design and 
    Remedial Action'', entered into by the Department of Defense and 
    the Environmental Protection Agency on December 11, 2003.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(16) for 
operation and maintenance for Environmental Restoration, Defense-wide.
    (c) Use of Funds.--The Environmental Protection Agency shall use 
the amount transferred under subsection (a) to pay costs incurred by 
the Agency pursuant to the agreement described in paragraph (2) of such 
subsection.

SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION AGENCY OF STIPULATED 
              PENALTIES IN CONNECTION WITH JACKSON PARK HOUSING 
              COMPLEX, WASHINGTON.

    (a) Authority To Transfer Funds.--
        (1) Transfer amount.--Using funds described in subsection (b), 
    the Secretary of the Navy may, notwithstanding section 2215 of 
    title 10, United States Code, transfer not more than $40,000.00 to 
    the Hazardous Substance Superfund.
        (2) Purpose of transfer.--The payment under paragraph (1) is to 
    pay a stipulated penalty assessed by the Environmental Protection 
    Agency on October 25, 2005, against the Jackson Park Housing 
    Complex, Washington, for the failure by the Navy to timely submit a 
    draft final Phase II Remedial Investigation Work Plan for the 
    Jackson Park Housing Complex Operable Unit (OU-3T-JPHC) pursuant to 
    a schedule included in an Interagency Agreement (Administrative 
    Docket No. CERCLA-10-2005-0023).
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(14) for 
operation and maintenance for Environmental Restoration, Navy.
    (c) Use of Funds.--The amount transferred under subsection (a) 
shall be used by the Environmental Protection Agency to pay the penalty 
described under paragraph (2) of such subsection.

SEC. 314. REPORT ON CONTROL OF THE BROWN TREE SNAKE.

    (a) Findings.--Congress finds the following:
        (1) The brown tree snake (Boiga irregularis), an invasive 
    species, is found in significant numbers on military installations 
    and in other areas on Guam, and constitutes a serious threat to the 
    ecology of Guam.
        (2) If introduced into Hawaii, the Commonwealth of the Northern 
    Mariana Islands, or the continental United States, the brown tree 
    snake would pose an immediate and serious economic and ecological 
    threat.
        (3) The most probable vector for the introduction of the brown 
    tree snake into Hawaii, the Commonwealth of the Northern Mariana 
    Islands, or the continental United States is the movement from Guam 
    of military aircraft, personnel, and cargo, including the household 
    goods of military personnel and other military assets.
        (4) It is probable that the movement of military aircraft, 
    personnel, and cargo, including the household goods of military 
    personnel, from Guam to Hawaii, the Commonwealth of the Northern 
    Mariana Islands, or the continental United States will increase 
    significantly coincident with the increase in the number of 
    military units and personnel stationed on Guam.
        (5) Current policies, programs, procedures, and dedicated 
    resources of the Department of Defense and of other departments and 
    agencies of the United States may not be sufficient to adequately 
    address the management, control, and eradication of the brown tree 
    snake on Guam and the increasing threat of the introduction of the 
    brown tree snake from Guam into Hawaii, the Commonwealth of the 
    Northern Mariana Islands, the continental United States, or other 
    non-native environments.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the following:
        (1) The actions currently being taken (including the resources 
    being made available) by the Department of Defense to control, and 
    to develop new or existing techniques to control, the brown tree 
    snake on Guam and to prevent the introduction of the brown tree 
    snake into Hawaii, the Commonwealth of the Northern Mariana Island, 
    the continental United States, or any other non-native environment 
    as a result of the movement from Guam of military aircraft, 
    personnel, and cargo, including the household goods of military 
    personnel and other military assets. Such actions shall include any 
    actions taken by the Department of Defense to implement the 
    recommendations of the Brown Tree Snake Review Panel commissioned 
    by the Department of the Interior, as contained in the Review 
    Panel's final report entitled ``Review of Brown Tree Snake Problems 
    and Control Programs'' published in March 2005.
        (2) Current plans for enhanced future actions, policies, and 
    procedures and increased levels of resources in order to ensure 
    that the projected increase of military personnel stationed on Guam 
    does not increase the threat of introduction of the brown tree 
    snake from Guam into Hawaii, the Commonwealth of the Northern 
    Mariana Islands, the continental United States, or other non-native 
    environments.
        (3) The results of management, control, and eradication carried 
    out by the Secretary of Defense, in consultation with the Secretary 
    of the Interior, before the date on which the report is submitted 
    with respect to brown tree snakes through the integrated natural 
    resource management plans prepared for military installations in 
    Guam under the pilot program authorized by section 101(g) of the 
    Sikes Act (16 U.S.C. 670a(g)).

SEC. 315. NOTIFICATION OF CERTAIN RESIDENTS AND CIVILIAN EMPLOYEES AT 
              CAMP LEJEUNE, NORTH CAROLINA, OF EXPOSURE TO DRINKING 
              WATER CONTAMINATION.

    (a) Notification of Individuals Served by Tarawa Terrace Water 
Distribution System, Including Knox Trailer Park.--Not later than 1 
year after the date of the enactment of this Act, the Secretary of the 
Navy shall make reasonable efforts to identify and notify directly 
individuals who were served by the Tarawa Terrace Water Distribution 
System, including Knox Trailer Park, at Camp Lejeune, North Carolina, 
during the years 1958 through 1987 that they may have been exposed to 
drinking water contaminated with tetrachloroethylene (PCE).
    (b) Notification of Individuals Served by Hadnot Point Water 
Distribution System.--Not later than 1 year after the Agency for Toxic 
Substances and Disease Registry (ATSDR) completes its water modeling 
study of the Hadnot Point water distribution system, the Secretary of 
the Navy shall make reasonable efforts to identify and notify directly 
individuals who were served by the system during the period identified 
in the study of the drinking water contamination to which they may have 
been exposed.
    (c) Notification of Former Civilian Employees at Camp Lejeune.--Not 
later than 1 year after the date of the enactment of this Act, the 
Secretary of the Navy shall make reasonable efforts to identify and 
notify directly civilian employees who worked at Camp Lejeune during 
the period identified in the ATSDR drinking water study of the drinking 
water contamination to which they may have been exposed.
    (d) Circulation of Health Survey.--
        (1) Findings.--Congress makes the following findings:
            (A) Notification and survey efforts related to the drinking 
        water contamination described in this section are necessary due 
        to the potential negative health impacts of these contaminants.
            (B) The Secretary of the Navy will not be able to identify 
        or contact all former residents and former employees due to the 
        condition, non-existence, or accessibility of records.
            (C) It is the intent of Congress that the Secretary of the 
        Navy contact as many former residents and former employees as 
        quickly as possible.
        (2) ATSDR health survey.--
            (A) Development.--
                (i) In general.--Not later than 120 days after the date 
            of the enactment of this Act, the ATSDR, in consultation 
            with a well-qualified contractor selected by the ATSDR, 
            shall develop a health survey that would voluntarily 
            request of individuals described in subsections (a), (b), 
            and (c) personal health information that may lead to 
            scientifically useful health information associated with 
            exposure to trichloroethylene (TCE), PCE, vinyl chloride, 
            and the other contaminants identified in the ATSDR studies 
            that may provide a basis for further reliable scientific 
            studies of potentially adverse health impacts of exposure 
            to contaminated water at Camp Lejeune.
                (ii) Funding.--The Secretary of the Navy is authorized 
            to provide from available funds the necessary funding for 
            the ATSDR to develop the health survey.
            (B) Inclusion with notification.--The survey developed 
        under subparagraph (A) shall be distributed by the Secretary of 
        the Navy concurrently with the direct notification required 
        under subsections (a), (b), and (c).
    (e) Use of Media To Supplement Notification.--The Secretary of the 
Navy may use media notification as a supplement to direct notification 
of individuals described under subsections (a), (b), and (c). Media 
notification may reach those individuals not identifiable via remaining 
records. Once individuals respond to media notifications, the Secretary 
will add them to the contact list to be included in future information 
updates.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. AVAILABILITY OF FUNDS IN DEFENSE INFORMATION SYSTEMS AGENCY 
              WORKING CAPITAL FUND FOR TECHNOLOGY UPGRADES TO DEFENSE 
              INFORMATION SYSTEMS NETWORK.

    (a) In General.--Notwithstanding section 2208 of title 10, United 
States Code, funds in the Defense Information Systems Agency Working 
Capital Fund may be used for expenses directly related to technology 
upgrades to the Defense Information Systems Network.
    (b) Limitation on Certain Projects.--Funds may not be used under 
subsection (a) for--
        (1) any technology insertion to the Defense Information Systems 
    Network that significantly changes the performance envelope of an 
    end item; or
        (2) any component with an estimated total cost in excess of 
    $500,000.
    (c) Limitation in Fiscal Year Pending Timely Report.--If in any 
fiscal year the report required by paragraph (1) of subsection (d) is 
not submitted by the date specified in paragraph (2) of subsection (d), 
funds may not be used under subsection (a) in such fiscal year during 
the period--
        (1) beginning on the date specified in paragraph (2) of 
    subsection (d); and
        (2) ending on the date of the submittal of the report under 
    paragraph (1) of subsection (d).
    (d) Annual Report.--
        (1) In general.--The Director of the Defense Information 
    Systems Agency shall submit to the congressional defense committees 
    each fiscal year a report on the use of the authority in subsection 
    (a) during the preceding fiscal year.
        (2) Deadline for submittal.--The report required by paragraph 
    (1) in a fiscal year shall be submitted not later than 60 days 
    after the date of the submittal to Congress of the budget of the 
    President for the succeeding fiscal year pursuant to section 1105 
    of title 31, United States Code.
    (e) Sunset.--The authority in subsection (a) shall expire on 
October 1, 2011.

SEC. 322. MODIFICATION TO PUBLIC-PRIVATE COMPETITION REQUIREMENTS 
              BEFORE CONVERSION TO CONTRACTOR PERFORMANCE.

    (a) Comparison of Retirement System Costs.--Section 2461(a)(1) of 
title 10, United States Code, is amended--
        (1) in subparagraph (F), by striking ``and'' at the end;
        (2) by redesignating subparagraph (G) as subparagraph (H); and
        (3) by inserting after subparagraph (F) the following new 
    subparagraph (G):
        ``(G) requires that the contractor shall not receive an 
    advantage for a proposal that would reduce costs for the Department 
    of Defense by--
            ``(i) not making an employer-sponsored health insurance 
        plan (or payment that could be used in lieu of such a plan), 
        health savings account, or medical savings account available to 
        the workers who are to be employed to perform the function 
        under the contract;
            ``(ii) offering to such workers an employer-sponsored 
        health benefits plan that requires the employer to contribute 
        less towards the premium or subscription share than the amount 
        that is paid by the Department of Defense for health benefits 
        for civilian employees of the Department under chapter 89 of 
        title 5; or
            ``(iii) offering to such workers a retirement benefit that, 
        in any year, costs less than the annual retirement cost factor 
        applicable to civilian employees of the Department of Defense 
        under chapter 84 of title 5; and''.
    (b) Conforming Amendments.--Such title is further amended--
        (1) by striking section 2467; and
        (2) in section 2461--
            (A) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively; and
            (B) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Requirement to Consult DOD Employees.--(1) Each officer or 
employee of the Department of Defense responsible for determining under 
Office of Management and Budget Circular A-76 whether to convert to 
contractor performance any function of the Department of Defense--
        ``(A) shall, at least monthly during the development and 
    preparation of the performance work statement and the management 
    efficiency study used in making that determination, consult with 
    civilian employees who will be affected by that determination and 
    consider the views of such employees on the development and 
    preparation of that statement and that study; and
        ``(B) may consult with such employees on other matters relating 
    to that determination.
    ``(2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 of title 
5, consultation with representatives of that labor organization shall 
satisfy the consultation requirement in paragraph (1).
    ``(B) In the case of employees other than employees referred to in 
subparagraph (A), consultation with appropriate representatives of 
those employees shall satisfy the consultation requirement in paragraph 
(1).
    ``(C) The Secretary of Defense shall prescribe regulations to carry 
out this subsection. The regulations shall include provisions for the 
selection or designation of appropriate representatives of employees 
referred to in subparagraph (B) for purposes of the consultation 
required by paragraph (1).''.
    (c) Technical Amendments.--Section 2461 of such title, as amended 
by this section, is further amended--
        (1) in subsection (a)(1)--
            (A) in subparagraph (B), by inserting after ``2003'' the 
        following: ``, or any successor circular''; and
            (B) in subparagraph (D), by striking ``and reliability'' 
        and inserting ``, reliability, and timeliness''; and
        (2) in subsection (c)(2), as redesignated by subsection (b)(2), 
    by inserting ``of'' after ``examination''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 146 of such title is amended by striking the item relating to 
section 2467.

SEC. 323. PUBLIC-PRIVATE COMPETITION AT END OF PERIOD SPECIFIED IN 
              PERFORMANCE AGREEMENT NOT REQUIRED.

    Section 2461(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) A military department or Defense Agency may not be required 
to conduct a public-private competition under Office of Management and 
Budget Circular A-76 or any other provision of law at the end of the 
performance period specified in a letter of obligation or other 
agreement entered into with Department of Defense civilian employees 
pursuant to a public-private competition for any function of the 
Department of Defense performed by Department of Defense civilian 
employees.''.

SEC. 324. GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT FUNCTIONS.

    (a) Codification and Revision of Requirement for Guidelines.--
        (1) In general.--Chapter 146 of title 10, United States Code, 
    is amended by inserting after section 2462 the following new 
    section:

``Sec. 2463. Guidelines and procedures for use of civilian employees to 
            perform Department of Defense functions

    ``(a) Guidelines Required.--(1) The Under Secretary of Defense for 
Personnel and Readiness shall devise and implement guidelines and 
procedures to ensure that consideration is given to using, on a regular 
basis, Department of Defense civilian employees to perform new 
functions and functions that are performed by contractors and could be 
performed by Department of Defense civilian employees. The Secretary of 
a military department may prescribe supplemental regulations, if the 
Secretary determines such regulations are necessary for implementing 
such guidelines within that military department.
    ``(2) The guidelines and procedures required under paragraph (1) 
may not include any specific limitation or restriction on the number of 
functions or activities that may be converted to performance by 
Department of Defense civilian employees.
    ``(b) Special Consideration for Certain Functions.--The guidelines 
and procedures required under subsection (a) shall provide for special 
consideration to be given to using Department of Defense civilian 
employees to perform any function that--
        ``(1) is performed by a contractor and--
            ``(A) has been performed by Department of Defense civilian 
        employees at any time during the previous 10 years;
            ``(B) is a function closely associated with the performance 
        of an inherently governmental function;
            ``(C) has been performed pursuant to a contract awarded on 
        a non-competitive basis; or
            ``(D) has been performed poorly, as determined by a 
        contracting officer during the 5-year period preceding the date 
        of such determination, because of excessive costs or inferior 
        quality; or
        ``(2) is a new requirement, with particular emphasis given to a 
    new requirement that is similar to a function previously performed 
    by Department of Defense civilian employees or is a function 
    closely associated with the performance of an inherently 
    governmental function.
    ``(c) Exclusion of Certain Functions From Competitions.--The 
Secretary of Defense may not conduct a public-private competition under 
this chapter, Office of Management and Budget Circular A-76, or any 
other provision of law or regulation before--
        ``(1) in the case of a new Department of Defense function, 
    assigning the performance of the function to Department of Defense 
    civilian employees;
        ``(2) in the case of any Department of Defense function 
    described in subsection (b), converting the function to performance 
    by Department of Defense civilian employees; or
        ``(3) in the case of a Department of Defense function performed 
    by Department of Defense civilian employees, expanding the scope of 
    the function.
    ``(d) Use of Flexible Hiring Authority.--(1) The Secretary of 
Defense may use the flexible hiring authority available to the 
Secretary under the National Security Personnel System, as established 
pursuant to section 9902 of title 5, to facilitate the performance by 
Department of Defense civilian employees of functions described in 
subsection (b).
    ``(2) The Secretary shall make use of the inventory required by 
section 2330a(c) of this title for the purpose of identifying functions 
that should be considered for performance by Department of Defense 
civilian employees pursuant to subsection (b).
    ``(e) Definitions.--In this section the term `functions closely 
associated with inherently governmental functions' has the meaning 
given that term in section 2383(b)(3) of this title.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 2462 the following new item:

``2463. Guidelines and procedures for use of civilian employees to 
          perform Department of Defense functions.''.

        (3) Deadline for issuance of guidelines and procedures.--The 
    Secretary of Defense shall implement the guidelines and procedures 
    required under section 2463 of title 10, United States Code, as 
    added by paragraph (1), by not later than 60 days after the date of 
    the enactment of this Act.
    (b) Inspector General Report.--Not later than 180 days after the 
date of the enactment of this Act, the Inspector General of the 
Department of Defense shall submit to the congressional defense 
committees a report on the implementation of this section and the 
amendments made by this section.
    (c) Conforming Repeal.--The National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163) is amended by striking section 
343.

SEC. 325. RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET INFLUENCE OVER 
              DEPARTMENT OF DEFENSE PUBLIC-PRIVATE COMPETITIONS.

    (a) Restriction on Office of Management and Budget.--The Office of 
Management and Budget may not direct or require the Secretary of 
Defense or the Secretary of a military department to prepare for, 
undertake, continue, or complete a public-private competition or direct 
conversion of a Department of Defense function to performance by a 
contractor under Office of Management and Budget Circular A-76, or any 
other successor regulation, directive, or policy.
    (b) Restriction on Secretary of Defense.--The Secretary of Defense 
or the Secretary of a military department may not prepare for, 
undertake, continue, or complete a public-private competition or direct 
conversion of a Department of Defense function to performance by a 
contractor under Office of Management and Budget Circular A-76, or any 
other successor regulation, directive, or policy by reason of any 
direction or requirement provided by the Office of Management and 
Budget.
    (c) Inspector General Review.--
        (1) Comprehensive review required.--The Inspector General of 
    the Department of Defense shall conduct a comprehensive review of 
    the compliance of the Secretary of Defense and the Secretaries of 
    the military departments with the requirements of this section 
    during calendar year 2008. The Inspector General shall submit to 
    the congressional defense committees the following reports on the 
    comprehensive review:
            (A) An interim report, to be submitted by not later than 90 
        days after the date of the enactment of this Act.
            (B) A final report, to be submitted by not later than 
        December 31, 2008.
        (2) Inspector general access.--For the purpose of determining 
    compliance with the requirements of this section, the Secretary of 
    Defense shall ensure that the Inspector General has access to all 
    Department records of relevant communications between Department 
    officials and officials of other departments and agencies of the 
    Federal Government, whether such communications occurred inside or 
    outside of the Department.

SEC. 326. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER OFFICE OF 
              MANAGEMENT AND BUDGET CIRCULAR A-76.

    (a) Eligibility to Protest Public-Private Competitions.--Section 
3551(2) of title 31, United States Code, is amended to read as follows:
        ``(2) The term `interested party'--
            ``(A) with respect to a contract or a solicitation or other 
        request for offers described in paragraph (1), means an actual 
        or prospective bidder or offeror whose direct economic interest 
        would be affected by the award of the contract or by failure to 
        award the contract; and
            ``(B) with respect to a public-private competition 
        conducted under Office of Management and Budget Circular A-76 
        with respect to the performance of an activity or function of a 
        Federal agency, or a decision to convert a function performed 
        by Federal employees to private sector performance without a 
        competition under Office of Management and Budget Circular A-
        76, includes--
                ``(i) any official who submitted the agency tender in 
            such competition; and
                ``(ii) any one individual who, for the purpose of 
            representing the Federal employees engaged in the 
            performance of the activity or function for which the 
            public-private competition is conducted in a protest under 
            this subchapter that relates to such public-private 
            competition, has been designated as the agent of the 
            Federal employees by a majority of such employees.''.
    (b) Expedited Action.--
        (1) In general.--Subchapter V of chapter 35 of such title is 
    amended by adding at the end the following new section:

``Sec. 3557. Expedited action in protests of Public-Private 
            competitions

    ``For any protest of a public-private competition conducted under 
Office of Management and Budget Circular A-76 with respect to the 
performance of an activity or function of a Federal agency, the 
Comptroller General shall administer the provisions of this subchapter 
in the manner best suited for expediting the final resolution of the 
protest and the final action in the public-private competition.''.
        (2) Clerical amendment.--The chapter analysis at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 3556 the following new item:

``3557. Expedited action in protests of public-private competitions.''.

    (c) Right to Intervene in Civil Action.--Section 1491(b) of title 
28, United States Code, is amended by adding at the end the following 
new paragraph:
    ``(5) If an interested party who is a member of the private sector 
commences an action described in paragraph (1) with respect to a 
public-private competition conducted under Office of Management and 
Budget Circular A-76 regarding the performance of an activity or 
function of a Federal agency, or a decision to convert a function 
performed by Federal employees to private sector performance without a 
competition under Office of Management and Budget Circular A-76, then 
an interested party described in section 3551(2)(B) of title 31 shall 
be entitled to intervene in that action.''.
    (d) Applicability.--Subparagraph (B) of section 3551(2) of title 
31, United States Code (as added by subsection (a)), and paragraph (5) 
of section 1491(b) of title 28, United States Code (as added by 
subsection (c)), shall apply to--
        (1) a protest or civil action that challenges final selection 
    of the source of performance of an activity or function of a 
    Federal agency that is made pursuant to a study initiated under 
    Office of Management and Budget Circular A-76 on or after January 
    1, 2004; and
        (2) any other protest or civil action that relates to a public-
    private competition initiated under Office of Management and Budget 
    Circular A-76, or to a decision to convert a function performed by 
    Federal employees to private sector performance without a 
    competition under Office of Management and Budget Circular A-76, on 
    or after the date of the enactment of this Act.

SEC. 327. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO 
              CONTRACTOR PERFORMANCE.

    (a) In General.--The Office of Federal Procurement Policy Act (41 
U.S.C. 403 et seq.) is amended by adding at the end the following new 
section:

``SEC. 43. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO 
              CONTRACTOR PERFORMANCE.

    ``(a) Public-Private Competition.--(1) A function of an executive 
agency performed by 10 or more agency civilian employees may not be 
converted, in whole or in part, to performance by a contractor unless 
the conversion is based on the results of a public-private competition 
that--
        ``(A) formally compares the cost of performance of the function 
    by agency civilian employees with the cost of performance by a 
    contractor;
        ``(B) creates an agency tender, including a most efficient 
    organization plan, in accordance with Office of Management and 
    Budget Circular A-76, as implemented on May 29, 2003, or any 
    successor circular;
        ``(C) includes the issuance of a solicitation;
        ``(D) determines whether the submitted offers meet the needs of 
    the executive agency with respect to factors other than cost, 
    including quality, reliability, and timeliness;
        ``(E) examines the cost of performance of the function by 
    agency civilian employees and the cost of performance of the 
    function by one or more contractors to demonstrate whether 
    converting to performance by a contractor will result in savings to 
    the Government over the life of the contract, including--
            ``(i) the estimated cost to the Government (based on offers 
        received) for performance of the function by a contractor;
            ``(ii) the estimated cost to the Government for performance 
        of the function by agency civilian employees; and
            ``(iii) an estimate of all other costs and expenditures 
        that the Government would incur because of the award of such a 
        contract;
        ``(F) requires continued performance of the function by agency 
    civilian employees unless the difference in the cost of performance 
    of the function by a contractor compared to the cost of performance 
    of the function by agency civilian employees would, over all 
    performance periods required by the solicitation, be equal to or 
    exceed the lesser of--
            ``(i) 10 percent of the personnel-related costs for 
        performance of that function in the agency tender; or
            ``(ii) $10,000,000; and
        ``(G) examines the effect of performance of the function by a 
    contractor on the agency mission associated with the performance of 
    the function.
    ``(2) A function that is performed by the executive agency and is 
reengineered, reorganized, modernized, upgraded, expanded, or changed 
to become more efficient, but still essentially provides the same 
service, shall not be considered a new requirement.
    ``(3) In no case may a function being performed by executive agency 
personnel be--
        ``(A) modified, reorganized, divided, or in any way changed for 
    the purpose of exempting the conversion of the function from the 
    requirements of this section; or
        ``(B) converted to performance by a contractor to circumvent a 
    civilian personnel ceiling.
    ``(b) Requirement to Consult Employees.--(1) Each civilian employee 
of an executive agency responsible for determining under Office of 
Management and Budget Circular A-76 whether to convert to contractor 
performance any function of the executive agency--
        ``(A) shall, at least monthly during the development and 
    preparation of the performance work statement and the management 
    efficiency study used in making that determination, consult with 
    civilian employees who will be affected by that determination and 
    consider the views of such employees on the development and 
    preparation of that statement and that study; and
        ``(B) may consult with such employees on other matters relating 
    to that determination.
    ``(2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 of title 
5, United States Code, consultation with representatives of that labor 
organization shall satisfy the consultation requirement in paragraph 
(1).
    ``(B) In the case of employees other than employees referred to in 
subparagraph (A), consultation with appropriate representatives of 
those employees shall satisfy the consultation requirement in paragraph 
(1).
    ``(C) The head of each executive agency shall prescribe regulations 
to carry out this subsection. The regulations shall include provisions 
for the selection or designation of appropriate representatives of 
employees referred to in paragraph (2)(B) for purposes of consultation 
required by paragraph (1).
    ``(c) Congressional Notification.--(1) Before commencing a public-
private competition under subsection (a), the head of an executive 
agency shall submit to Congress a report containing the following:
        ``(A) The function for which such public-private competition is 
    to be conducted.
        ``(B) The location at which the function is performed by agency 
    civilian employees.
        ``(C) The number of agency civilian employee positions 
    potentially affected.
        ``(D) The anticipated length and cost of the public-private 
    competition, and a specific identification of the budgetary line 
    item from which funds will be used to cover the cost of the public-
    private competition.
        ``(E) A certification that a proposed performance of the 
    function by a contractor is not a result of a decision by an 
    official of an executive agency to impose predetermined constraints 
    or limitations on such employees in terms of man years, end 
    strengths, full-time equivalent positions, or maximum number of 
    employees.
    ``(2) The report required under paragraph (1) shall include an 
examination of the potential economic effect of performance of the 
function by a contractor on--
        ``(A) agency civilian employees who would be affected by such a 
    conversion in performance; and
        ``(B) the local community and the Government, if more than 50 
    agency civilian employees perform the function.
    ``(3)(A) A representative individual or entity at a facility where 
a public-private competition is conducted may submit to the head of the 
executive agency an objection to the public-private competition on the 
grounds that the report required by paragraph (1) has not been 
submitted or that the certification required by paragraph (1)(E) is not 
included in the report submitted as a condition for the public-private 
competition. The objection shall be in writing and shall be submitted 
within 90 days after the following date:
        ``(i) In the case of a failure to submit the report when 
    required, the date on which the representative individual or an 
    official of the representative entity authorized to pose the 
    objection first knew or should have known of that failure.
        ``(ii) In the case of a failure to include the certification in 
    a submitted report, the date on which the report was submitted to 
    Congress.
    ``(B) If the head of the executive agency determines that the 
report required by paragraph (1) was not submitted or that the required 
certification was not included in the submitted report, the function 
for which the public-private competition was conducted for which the 
objection was submitted may not be the subject of a solicitation of 
offers for, or award of, a contract until, respectively, the report is 
submitted or a report containing the certification in full compliance 
with the certification requirement is submitted.
    ``(d) Exemption for the Purchase of Products and Services of the 
Blind and Other Severely Handicapped Persons.--This section shall not 
apply to a commercial or industrial type function of an executive 
agency that--
        ``(1) is included on the procurement list established pursuant 
    to section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 47); or
        ``(2) is planned to be changed to performance by a qualified 
    nonprofit agency for the blind or by a qualified nonprofit agency 
    for other severely handicapped persons in accordance with that Act.
    ``(e) Inapplicability During War or Emergency.--The provisions of 
this section shall not apply during war or during a period of national 
emergency declared by the President or Congress.''.
    (b) Clerical Amendment.--The table of sections in section 1(b) of 
such Act is amended by adding at the end the following new item:

``Sec. 43. Public-private competition required before conversion to 
          contractor performance.''.

SEC. 328. EXTENSION OF AUTHORITY FOR ARMY INDUSTRIAL FACILITIES TO 
              ENGAGE IN COOPERATIVE ACTIVITIES WITH NON-ARMY ENTITIES.

    (a) Extension of Authority.--Section 4544 of title 10, United 
States Code, is amended--
        (1) in subsection (a), by adding at the end the following: 
    ``This authority may be used to enter into not more than eight 
    contracts or cooperative agreements.''; and
        (2) in subsection (k), by striking ``2009'' and inserting 
    ``2014''.
    (b) Reports.--
        (1) Annual report on use of authority.--The Secretary of the 
    Army shall submit to Congress at the same time the budget of the 
    President is submitted to Congress for fiscal years 2009 through 
    2016 under section 1105 of title 31, United States Code, a report 
    on the use of the authority provided under section 4544 of title 
    10, United States Code.
        (2) Analysis of use of authority.--Not later than September 30, 
    2012, the Secretary of the Army shall submit to the congressional 
    defense committees a report assessing the advisability of making 
    such authority permanent and eliminating the limitation on the 
    number of contracts or cooperative arrangements that may be entered 
    into pursuant to such authority.

SEC. 329. REAUTHORIZATION AND MODIFICATION OF MULTI-TRADES 
              DEMONSTRATION PROJECT.

    (a) Reauthorization and Expansion.--Section 338 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 10 
U.S.C. 5013 note) is amended--
        (1) by striking subsection (a) and inserting the following new 
    subsection (a):
    ``(a) Demonstration Project Authorized.--In accordance with section 
4703 of title 5, United States Code, the Secretary of a military 
department may carry out a demonstration project under which workers 
who are certified at the journey level as able to perform multiple 
trades may be promoted by one grade level. A demonstration project 
under this subsection may be carried out as follows:
        ``(1) In the case of the Secretary of the Army, at one Army 
    depot.
        ``(2) In the case of the Secretary of the Navy, at one Navy 
    Fleet Readiness Center.
        ``(3) In the case of the Secretary of the Air Force, at one Air 
    Force Logistics Center.'';
        (2) in subsection (b)--
            (A) by striking ``a Naval Aviation Depot'' and inserting 
        ``an Air Force Air Logistics Center, Navy Fleet Readiness 
        Center, or Army depot''; and
            (B) by striking ``Secretary'' and inserting ``Secretary of 
        the military department concerned'';
        (3) by striking subsection (d) and redesignating subsections 
    (e) through (g) as subsections (d) through (f), respectively;
        (4) in subsection (d), as so redesignated, by striking ``2004 
    through 2006'' and inserting ``2008 through 2013'';
        (5) in subsection (e), as so redesignated--
            (A) by striking ``2007'' and inserting ``2014'';
            (B) by inserting after ``Secretary'' the following ``of 
        each military department that carried out a demonstration 
        project under this section''; and
            (C) by adding at the end the following new sentence: ``Each 
        such report shall include the Secretary's recommendation on 
        whether permanent multi-trade authority should be 
        authorized.''; and
        (6) in subsection (f), as so redesignated--
            (A) in the first sentence, by striking ``The Secretary'' 
        and inserting ``Each Secretary who submits a report under 
        subsection (e)''; and
            (B) in the second sentence--
                (i) by striking ``receiving the report'' and inserting 
            ``receiving a report''; and
                (ii) by striking ``evaluation of the report'' and 
            inserting ``evaluation of that report''.
    (b) Clerical Amendment.--The heading for such section is amended to 
read as follows:

``SEC. 338. MULTI-TRADES DEMONSTRATION PROJECT.''.

SEC. 330. PILOT PROGRAM FOR AVAILABILITY OF WORKING-CAPITAL FUNDS TO 
              ARMY FOR CERTAIN PRODUCT IMPROVEMENTS.

    (a) In General.--Notwithstanding section 2208 of title 10, United 
States Code, the Secretary of the Army may use a working-capital fund 
established pursuant to that section for expenses directly related to 
conducting a pilot program for a product improvement described in 
subsection (b).
    (b) Product Improvement.--A product improvement covered by the 
pilot program is the procurement and installation of a component or 
subsystem of a weapon system platform or major end item that would 
improve the reliability and maintainability, extend the useful life, 
enhance safety, lower maintenance costs, or provide performance 
enhancement of the weapon system platform or major end item.
    (c) Limitation on Certain Projects.--Funds may not be used under 
subsection (a) for--
        (1) any product improvement that significantly changes the 
    performance envelope of an end item; or
        (2) any component with an estimated total cost in excess of 
    $1,000,000.
    (d) Limitation in Fiscal Year Pending Timely Report.--If during any 
fiscal year the report required by paragraph (1) of subsection (e) is 
not submitted by the date specified in paragraph (3) of that 
subsection, funds may not be used under subsection (a) in such fiscal 
year during the period--
        (1) beginning on the date specified in paragraph (3) of 
    subsection (e); and
        (2) ending on the date of the submittal of the report under 
    paragraph (1) of subsection (e).
    (e) Annual Report.--
        (1) In general.--Each fiscal year, the Assistant Secretary of 
    the Army for Acquisition, Logistics, and Technology, in 
    consultation with the Assistant Secretary of the Army for Financial 
    Management and Comptroller, shall submit to the congressional 
    defense committees a report on the use of the authority in 
    subsection (a) during the preceding fiscal year.
        (2) Recommendation.--In the case of the report required to be 
    submitted under paragraph (1) during fiscal year 2012, the report 
    shall include the recommendation of the Assistant Secretary of the 
    Army for Acquisition, Logistics, and Technology regarding whether 
    the authority under subsection (a) should be made permanent.
        (3) Deadline for submittal.--The report required by paragraph 
    (1) in a fiscal year shall be submitted not later than 60 days 
    after the date of the submittal to Congress of the budget of the 
    President for the succeeding fiscal year pursuant to section 1105 
    of title 31, United States Code.
    (f) Sunset.--The authority under subsection (a) shall expire on 
October 1, 2013.

              Subtitle D--Extension of Program Authorities

SEC. 341. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    Section 343 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (10 U.S.C. 4551 note) is amended--
        (1) in subsection (a), by striking ``2008'' and inserting 
    ``2010''; and
        (2) in subsection (g)(1), by striking ``2008'' and inserting 
    ``2010''.

SEC. 342. EXTENSION OF PERIOD FOR REIMBURSEMENT FOR HELMET PADS 
              PURCHASED BY MEMBERS OF THE ARMED FORCES DEPLOYED IN 
              CONTINGENCY OPERATIONS.

    (a) Extension.--Section 351 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 1857) is amended--
        (1) in subsection (a)(3), by inserting before the period at the 
    end the following: ``, or in the case of protective helmet pads 
    purchased by a member from a qualified vendor for that member's 
    personal use, ending on September 30, 2007'';
        (2) in subsection (c)--
            (A) by inserting after ``Armed Forces'' the following: 
        ``shall comply with regular Department of Defense procedures 
        for the submission of claims and''; and
            (B) by inserting before the period at the end the 
        following: ``or one year after the date on which the purchase 
        of the protective, safety, or health equipment was made, 
        whichever occurs last''; and
        (3) in subsection (d), by adding at the end the following new 
    sentence: ``Subsection (a)(1) shall not apply in the case of the 
    purchase of protective helmet pads on behalf of a member.''.
    (b) Funding.--Amounts for reimbursements made under section 351 of 
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 after the date of the enactment of this Act shall be derived from 
supplemental appropriations for the Department of Defense for fiscal 
year 2008, contingent upon such appropriations being enacted.

SEC. 343. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACT PERFORMANCE OF 
              SECURITY GUARD FUNCTIONS.

    (a) Extension.--Subsection (c) of section 332 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public Law 
107-314) is amended by striking ``September 30, 2009'' both places it 
appears and inserting ``September 30, 2012''.
    (b) Limitation for Fiscal Years 2010 Through 2012.--Subsection (d) 
of such section is amended--
        (1) in paragraph (2), by striking ``and'' at the end;
        (2) in paragraph (3), by striking the period and inserting a 
    semicolon; and
        (3) by adding at the end the following new paragraphs:
        ``(4) for fiscal year 2010, the number equal to 70 percent of 
    the total number of such personnel employed under such contracts on 
    October 1, 2006;
        ``(5) for fiscal year 2011, the number equal to 60 percent of 
    the total number of such personnel employed under such contracts on 
    October 1, 2006; and
        ``(6) for fiscal year 2012, the number equal to 50 percent of 
    the total number of such personnel employed under such contracts on 
    October 1, 2006.''.

                          Subtitle E--Reports

SEC. 351. REPORTS ON NATIONAL GUARD READINESS FOR EMERGENCIES AND MAJOR 
              DISASTERS.

    (a) Annual Reports on Equipment.--Section 10541(b) of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
        ``(9) An assessment of the extent to which the National Guard 
    possesses the equipment required to perform the responsibilities of 
    the National Guard pursuant to sections 331, 332, 333, 12304(b), 
    and 12406 of this title in response to an emergency or major 
    disaster (as such terms are defined in section 102 of the Robert T. 
    Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
    5122)). Such assessment shall--
            ``(A) identify any shortfall in equipment provided to the 
        National Guard by the Department of Defense throughout the 
        United States and the territories and possessions of the United 
        States that is likely to affect the ability of the National 
        Guard to perform such responsibilities;
            ``(B) evaluate the effect of any such shortfall on the 
        capacity of the National Guard to perform such responsibilities 
        in response to an emergency or major disaster that occurs in 
        the United States or a territory or possession of the United 
        States; and
            ``(C) identify the requirements and investment strategies 
        for equipment provided to the National Guard by the Department 
        of Defense that are necessary to plan for a reduction or 
        elimination of any such shortfall.''.
    (b) Inclusion of Assessment of National Guard Readiness in 
Quarterly Personnel and Unit Readiness Report.--Section 482 of such 
title is amended--
        (1) in subsection (a), by striking ``and (e)'' and inserting 
    ``(e), and (f)'';
        (2) by redesignating subsection (f) as subsection (g); and
        (3) by inserting after subsection (e) the following new 
    subsection (f):
    ``(f) Readiness of National Guard to Perform Civil Support 
Missions.--(1) Each report shall also include an assessment of the 
readiness of the National Guard to perform tasks required to support 
the National Response Plan for support to civil authorities.
    ``(2) Any information in an assessment under this subsection that 
is relevant to the National Guard of a particular State shall also be 
made available to the Governor of that State.
    ``(3) The Secretary shall ensure that each State Governor has an 
opportunity to provide to the Secretary an independent evaluation of 
that State's National Guard, which the Secretary shall include with 
each assessment submitted under this subsection.''.
    (c) Effective Date.--
        (1) Annual report on national guard and reserve component 
    equipment.--The amendment made by subsection (a) shall apply with 
    respect to reports submitted after the date of the enactment of 
    this Act.
        (2) Quarterly reports on personnel and unit readiness.--The 
    amendment made by subsection (b) shall apply with respect to the 
    quarterly report required under section 482 of title 10, United 
    States Code, for the second quarter of fiscal year 2009 and each 
    subsequent report required under that section.
    (d) Report on Implementation.--
        (1) In general.--As part of the budget justification materials 
    submitted to Congress in support of the budget of the President for 
    each of fiscal years 2009 and 2010 (as submitted under section 1105 
    of title 31, United States Code), the Secretary of Defense shall 
    submit to the congressional defense committees a report on actions 
    taken by the Secretary to implement the amendments made by this 
    section.
        (2) Elements.--Each report required under paragraph (1) shall 
    include a description of the mechanisms to be utilized by the 
    Secretary for assessing the personnel, equipment, and training 
    readiness of the National Guard, including the standards and 
    measures that will be applied and mechanisms for sharing 
    information on such matters with the Governors of the States.

SEC. 352. ANNUAL REPORT ON PREPOSITIONED MATERIEL AND EQUIPMENT.

    (a) Annual Report Required.--Chapter 131 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2229a. Annual report on prepositioned materiel and equipment

    ``(a) Annual Report Required.--Not later than the date of the 
submission of the President's budget request for a fiscal year under 
section 1105 of title 31, the Secretary of Defense shall submit to the 
congressional defense committees a report on the status of the materiel 
in the prepositioned stocks as of the end of the fiscal year preceding 
the fiscal year during which the report is submitted. Each report shall 
be unclassified and may contain a classified annex. Each report shall 
include the following information:
        ``(1) The level of fill for major end items of equipment and 
    spare parts in each prepositioned set as of the end of the fiscal 
    year covered by the report.
        ``(2) The material condition of equipment in the prepositioned 
    stocks as of the end of such fiscal year, grouped by category or 
    major end item.
        ``(3) A list of major end items of equipment drawn from the 
    prepositioned stocks during such fiscal year and a description of 
    how that equipment was used and whether it was returned to the 
    stocks after being used.
        ``(4) A timeline for completely reconstituting any shortfall in 
    the prepositioned stocks.
        ``(5) An estimate of the amount of funds required to completely 
    reconstitute any shortfall in the prepositioned stocks and a 
    description of the Secretary's plan for carrying out such complete 
    reconstitution.
        ``(6) A list of any operations plan affected by any shortfall 
    in the prepositioned stocks and a description of any action taken 
    to mitigate any risk that such a shortfall may create.
    ``(b) Comptroller General Review.--(1) By not later than 120 days 
after the date on which a report is submitted under subsection (a), the 
Comptroller General shall review the report and, as the Comptroller 
General determines appropriate, submit to the congressional defense 
committees any additional information that the Comptroller General 
determines will further inform such committees on issues relating to 
the status of the materiel in the prepositioned stocks.
    ``(2) The Secretary of Defense shall ensure the full cooperation of 
the Department of Defense with the Comptroller General for purposes of 
the conduct of the review required by this subsection, both before and 
after each report is submitted under subsection (a). The Secretary 
shall conduct periodic briefings for the Comptroller General on the 
information covered by each report required under subsection (a) and 
provide to the Comptroller General access to the data and preliminary 
results to be used by the Secretary in preparing each such report 
before the Secretary submits the report to enable the Comptroller 
General to conduct each review required under paragraph (1) in a timely 
manner.
    ``(3) The requirement to conduct a review under this subsection 
shall terminate on September 30, 2015.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2229a. Annual report on prepositioned materiel and equipment.''.

SEC. 353. REPORT ON INCREMENTAL COST OF EARLY 2007 ENHANCED DEPLOYMENT.

    Section 323(b)(2) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2146; 10 U.S.C. 
229 note) is amended--
        (1) in subparagraph (A), by striking ``; and'' and inserting a 
    semicolon;
        (2) in subparagraph (B), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) each of the military departments for the incremental 
        changes in reset costs resulting from the deployment and 
        redeployment of forces to Iraq and Afghanistan above the levels 
        deployed to such countries on January 1, 2007.''.

SEC. 354. MODIFICATION OF REQUIREMENTS OF COMPTROLLER GENERAL REPORT ON 
              THE READINESS OF ARMY AND MARINE CORPS GROUND FORCES.

    (a) Submittal Date.--Subsection (a)(1) of section 345 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2156) is amended by striking ``June 1, 2007'' 
and inserting ``June 1, 2008''.
    (b) Elements.--Subsection (b) of such section is amended--
        (1) by striking paragraph (2);
        (2) by redesignating paragraphs (3) through (7) as paragraphs 
    (4) through (8), respectively; and
        (3) by inserting after paragraph (1) the following new 
    paragraphs:
        ``(2) An assessment of the ability of the Army and Marine Corps 
    to provide trained and ready forces to meet the requirements of 
    increased force levels in support of Operation Iraqi Freedom and 
    Operation Enduring Freedom above such force levels in effect on 
    January 1, 2007, and to meet the requirements of other ongoing 
    operations simultaneously with such increased force levels.
        ``(3) An assessment of the strategic depth of the Army and 
    Marine Corps and their ability to provide trained and ready forces 
    to meet the requirements of the high-priority contingency war plans 
    of the regional combatant commands, including an identification and 
    evaluation for each such plan of--
            ``(A) the strategic and operational risks associated with 
        current and projected forces of current and projected 
        readiness;
            ``(B) the time required to make forces available and 
        prepare them for deployment; and
            ``(C) likely strategic tradeoffs necessary to meet the 
        requirements of each such plan.''.
    (c) Department of Defense Cooperation.--Such section is further 
amended--
        (1) by redesignating subsection (c) as subsection (d); and
        (2) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c) Department of Defense Cooperation.--The Secretary of Defense 
shall ensure the full cooperation of the Department of Defense with the 
Comptroller General for purposes of the preparation of the report 
required by this section.''.

SEC. 355. PLAN TO IMPROVE READINESS OF GROUND FORCES OF ACTIVE AND 
              RESERVE COMPONENTS.

    (a) Report Required.--At the same time that the budget is submitted 
under section 1105(a) of title 31, United States Code, for a fiscal 
year, the Secretary of Defense shall submit to the congressional 
defense committees a report on improving the readiness of the ground 
forces of active and reserve components of the Armed Forces. Each such 
report shall include--
        (1) a summary of the readiness of each reporting unit of the 
    ground forces of the active and reserve components and a summary of 
    the readiness of each major combat unit of each Armed Force by 
    readiness level;
        (2) an identification of the extent to which the actual 
    readiness ratings of the active and reserve components of the Armed 
    Forces have been upgraded based on the judgment of commanders and 
    any efforts of the Secretary of Defense to analyze the trends and 
    implications of such upgrades;
        (3) the goals of the Secretary of Defense for managing the 
    readiness of the ground forces of the active and reserve 
    components, expressed in terms of the number of units or percentage 
    of the force that the Secretary plans to maintain at each level of 
    readiness, and the Secretary's projected timeframe for achieving 
    each such goal;
        (4) a prioritized list of items and actions to be accomplished 
    during the fiscal year during which the report is submitted, and 
    during the fiscal years covered by the future-years defense 
    program, that the Secretary of Defense believes are necessary to 
    significantly improve the readiness of the ground forces of the 
    active and reserve components and achieve the goals and timeframes 
    described in paragraph (3); and
        (5) a detailed investment strategy and plan for each fiscal 
    year covered by the future-years defense program under section 221 
    of title 10, United States Code, that is submitted during the 
    fiscal year in which the report is submitted, that outlines the 
    resources required to improve the readiness of the ground forces of 
    the active and reserve components, including a description of how 
    each resource identified in such plan relates to funding requested 
    by the Secretary in the Secretary's annual budget, and how each 
    such resource will specifically enable the Secretary to achieve the 
    readiness goals described in paragraph (3) within the projected 
    timeframes.
    (b) Comptroller General Review.--By not later than 60 days after 
the date on which a report is submitted under subsection (a), the 
Comptroller General shall review the report and, as the Comptroller 
General determines appropriate, submit to the congressional defense 
committees any additional information that the Comptroller General 
determines will further inform the congressional defense committees on 
issues relating to the readiness of the ground forces of the active and 
reserve components of the Armed Forces.
    (c) Termination.--The requirement to submit a report under 
subsection (a) shall terminate on the date the Secretary of Defense 
submits the fifth report required under that subsection.

SEC. 356. INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY.

    (a) Independent Assessment Required.--The Secretary of Defense 
shall provide for an independent assessment of the viability of the 
Civil Reserve Air Fleet to be conducted by a federally-funded research 
and development center selected by the Secretary.
    (b) Contents of Assessment.--The assessment required by subsection 
(a) shall include each of the following:
        (1) An assessment of the Civil Reserve Air Fleet as of the date 
    of the enactment of this Act, including an assessment of--
            (A) the level of increased use of commercial assets to 
        fulfill Department of Defense transportation requirements as a 
        result of the increased global mobility requirements in 
        response to the terrorist attacks of September 11, 2001;
            (B) the extent of charter air carrier participation in 
        fulfilling increased Department of Defense transportation 
        requirements as a result of the increased global mobility 
        requirements in response to the terrorist attacks of September 
        11, 2001;
            (C) any policy of the Secretary of Defense to limit the 
        percentage of income a single air carrier participating in the 
        Civil Reserve Air Fleet may earn under contracts with the 
        Secretary during any calendar year and the effects of such 
        policy on the air carrier industry in peacetime and during 
        periods during which the Armed Forces are deployed in support 
        of a contingency operation for which the Civil Reserve Air 
        Fleet is not activated; and
            (D) any risks to the charter air carrier industry as a 
        result of the expansion of the industry in response to 
        contingency operations resulting in increased demand by the 
        Department of Defense.
        (2) A strategic assessment of the viability of the Civil 
    Reserve Air Fleet that compares such viability as of the date of 
    the enactment of this Act with the projected viability of the Civil 
    Reserve Air Fleet 5, 10, and 15 years after the date of the 
    enactment of this Act, including for activations at each of stages 
    1, 2, and 3--
            (A) an examination of the requirements of the Department of 
        Defense for the Civil Reserve Air Fleet for the support of 
        operational and contingency plans, including any anticipated 
        changes in the Department's organic airlift capacity, logistics 
        concepts, and personnel and training requirements;
            (B) an assessment of air carrier participation in the Civil 
        Reserve Air Fleet; and
            (C) a comparison between the requirements of the Department 
        described in subparagraph (A) and air carrier participation 
        described in subparagraph (B).
        (3) An examination of any perceived barriers to Civil Reserve 
    Air Fleet viability, including--
            (A) the operational planning system of the Civil Reserve 
        Air Fleet;
            (B) the reward system of the Civil Reserve Air Fleet;
            (C) the long-term affordability of the Aviation War Risk 
        Insurance Program;
            (D) the effect on United States air carriers operating 
        overseas routes during periods of Civil Reserve Air Fleet 
        activation;
            (E) increased foreign ownership of United States air 
        carriers;
            (F) increased operational costs during activation as a 
        result of hazardous duty pay, routing delays, and 
        inefficiencies in cargo handling by the Department of Defense;
            (G) the effect of policy initiatives by the Secretary of 
        Transportation to encourage international code sharing and 
        alliances; and
            (H) the effect of limitations imposed by the Secretary of 
        Defense to limit commercial shipping options for certain routes 
        and package sizes.
        (4) Recommendations for improving the Civil Reserve Air Fleet 
    program, including an assessment of potential incentives for 
    increasing participation in the Civil Reserve Air Fleet program, 
    including establishing a minimum annual purchase amount during 
    peacetime.
    (c) Submission to Congress.--Upon the completion of the assessment 
required under subsection (a) and by not later than April 1, 2008, the 
Secretary shall submit to the congressional defense committees a report 
on the assessment.
    (d) Comptroller General Report.--Not later than 90 days after the 
report is submitted under subsection (c), the Comptroller General shall 
conduct a review of the assessment required under subsection (a).

SEC. 357. DEPARTMENT OF DEFENSE INSPECTOR GENERAL REPORT ON PHYSICAL 
              SECURITY OF DEPARTMENT OF DEFENSE INSTALLATIONS.

    (a) Report.--Not later than one year after the date of the 
enactment of this Act, the Inspector General of the Department of 
Defense shall submit to Congress a report on the physical security of 
Department of Defense installations and resources.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (1) An analysis of the progress in implementing requirements 
    under the Physical Security Program as set forth in the Department 
    of Defense Instruction 5200.08-R, Chapter 2 (C.2) and Chapter 3, 
    Section 3: Installation Access (C3.3), which mandates the policies 
    and minimum standards for the physical security of Department of 
    Defense installations and resources.
        (2) Recommendations based on the findings of the Comptroller 
    General of the United States in the report required by section 344 
    of the John Warner National Defense Authorization Act for Fiscal 
    Year 2007 (Public Law 109-366; 120 Stat. 2155).
        (3) Recommendations based on the lessons learned from the 
    thwarted plot to attack Fort Dix, New Jersey, in 2007.

SEC. 358. REVIEW OF HIGH-ALTITUDE AVIATION TRAINING.

    (a) Review Required.--The Secretary of the Defense shall conduct a 
review of the training requirements of the Department of Defense for 
helicopter operations in high-altitude or power-limited conditions.
    (b) Content.--The review required under subsection (a) shall 
include an examination of--
        (1) power-management and high-altitude training requirements by 
    military department, helicopter, and crew position;
        (2) training methods and locations currently used by each of 
    the military departments to fulfill those training requirements;
        (3) department or service regulations that prohibit or inhibit 
    joint-service or inter-service high-altitude aviation training;
        (4) costs for each of the previous 5 years associated with 
    transporting aircraft to and from the High-Altitude Aviation 
    Training Site, Gypsum, Colorado, for training purposes;
        (5) potential risk avoidance and reductions in accident rates 
    due to power management if training of the type offered at the 
    High-Altitude Aviation Training Site was required training, rather 
    than optional training; and
        (6) potential cost savings and operational benefits, if any, of 
    permanently stationing no less than 4 UH-60, 2 CH-47, and 2 LUH-72 
    aircraft at the High-Altitude Aviation Training Site, Gypsum, 
    Colorado.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report on the conduct and findings of the review 
required under subsection (a) along with a summary of changes to 
policy, regulation, or asset allocation necessary to ensure that 
Department of Defense helicopter aircrews are adequately trained in 
high-altitude or power-limited flying conditions prior to being exposed 
to such conditions operationally.

SEC. 359. REPORTS ON SAFETY MEASURES AND ENCROACHMENT ISSUES AND MASTER 
              PLAN FOR WARREN GROVE GUNNERY RANGE, NEW JERSEY.

    (a) Annual Report on Safety Measures.--Not later than March 1, 
2008, and annually thereafter for 2 additional years, the Secretary of 
the Air Force shall submit to the congressional defense committees a 
report on efforts made by all of the military departments utilizing the 
Warren Grove Gunnery Range, New Jersey, to provide the highest level of 
safety.
    (b) Master Plan for Warren Grove Gunnery Range.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Secretary of the Air Force shall submit 
    to the congressional defense committees a master plan for Warren 
    Grove Gunnery Range.
        (2) Content.--The master plan required under paragraph (1) 
    shall include measures to mitigate encroachment of the Warren Grove 
    Gunnery Range, taking into consideration military mission 
    requirements, land use plans, the surrounding community, the 
    economy of the region, and protection of the environment and public 
    health, safety, and welfare.
        (3) Input.--In establishing the master plan required under 
    paragraph (1), the Secretary shall seek input from relevant 
    stakeholders at the Federal, State, and local level.

SEC. 360. REPORT ON SEARCH AND RESCUE CAPABILITIES OF THE AIR FORCE IN 
              THE NORTHWESTERN UNITED STATES.

    (a) Report.--Not later than April 1, 2008, the Secretary of the Air 
Force shall submit to the appropriate congressional committees a report 
on the search and rescue capabilities of the Air Force in the 
northwestern United States.
    (b) Content.--The report required under subsection (a) shall 
include the following:
        (1) An assessment of the search and rescue capabilities 
    required to support Air Force operations and training.
        (2) A description of the compliance of the Air Force with the 
    1999 United States National Search and Rescue Plan (referred to 
    hereinafter in this section as the ``NSRP'') for Washington, 
    Oregon, Idaho, and Montana.
        (3) An inventory and description of the search and rescue 
    assets of the Air Force that are available to meet the requirements 
    of the NSRP.
        (4) A description of the use of such search and rescue assets 
    during the 3-year period preceding the date when the report is 
    submitted.
        (5) The plans of the Air Force to meet current and future 
    search and rescue requirements in the northwestern United States, 
    including plans that take into consideration requirements related 
    to support for both Air Force operations and training and 
    compliance with the NSRP.
        (6) An inventory of other search and rescue capabilities 
    equivalent to such capabilities provided by the Air Force that may 
    be provided by other Federal, State, or local agencies in the 
    northwestern United States.
    (c) Use of Report for Purposes of Certification Regarding Search 
and Rescue Capabilities.--Section 1085 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 2065; 10 U.S.C. 113 note) is amended by striking ``unless the 
Secretary first certifies'' and inserting ``unless the Secretary, after 
reviewing the search and rescue capabilities report prepared by the 
Secretary of the Air Force under subsection (a), first certifies''.
    (d) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
        (1) the Committee on Armed Services, the Committee on Homeland 
    Security and Governmental Affairs, the Committee on Commerce, 
    Science, and Transportation, the Committee on Energy and Natural 
    Resources, and the Committee on Appropriations of the Senate; and
        (2) the Committee on Armed Services, the Committee on Homeland 
    Security, the Committee on Energy and Commerce, the Committee on 
    Natural Resources, and the Committee on Appropriations of the House 
    of Representatives.

SEC. 361. REPORT AND MASTER INFRASTRUCTURE RECAPITALIZATION PLAN FOR 
              CHEYENNE MOUNTAIN AIR STATION, COLORADO.

    (a) Report on Relocation of North American Aerospace Defense 
Command Center.--
        (1) In general.--Not later than March 1, 2008, the Secretary of 
    Defense shall submit to Congress a report on the relocation of the 
    North American Aerospace Defense Command center and related 
    functions from Cheyenne Mountain Air Station, Colorado, to Peterson 
    Air Force Base, Colorado.
        (2) Content.--The report required under paragraph (1) shall 
    include--
            (A) an analysis comparing the total costs associated with 
        the relocation, including costs determined as part of ongoing 
        security-related studies of the relocation, to anticipated 
        operational benefits from the relocation;
            (B) a detailed explanation of the backup functions that 
        will remain located at Cheyenne Mountain Air Station, and how 
        such functions planned to be transferred out of Cheyenne 
        Mountain Air Station, including the Space Operations Center, 
        will maintain operational connectivity with their related 
        commands and relevant communications centers;
            (C) the final plans for the relocation of the North 
        American Aerospace Defense Command center and related 
        functions; and
            (D) the findings and recommendations of an independent 
        security and vulnerability assessment of Peterson Air Force 
        Base carried out by Sandia National Laboratory for the United 
        States Air Force Space Command and the Secretary's plans for 
        mitigating any security and vulnerability risks identified as 
        part of that assessment and associated cost and schedule 
        estimates.
    (b) Limitation on Availability of Funds Pending Receipt of 
Report.--Of the funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for fiscal year 2008 for 
operation and maintenance for the Air Force that are available for the 
Cheyenne Mountain Transformation project, $5,000,000 may not be 
obligated or expended until Congress receives the report required under 
subsection (a).
    (c) Comptroller General Review.--Not later than 120 days after the 
date on which the Secretary of Defense submits the report required 
under subsection (a), the Comptroller General shall submit to Congress 
a review of the report and the final plans of the Secretary for the 
relocation of the North American Aerospace Defense Command center and 
related functions.
    (d) Master Infrastructure Recapitalization Plan.--
        (1) In general.--Not later than March 16, 2008, the Secretary 
    of the Air Force shall submit to Congress a master infrastructure 
    recapitalization plan for Cheyenne Mountain Air Station.
        (2) Content.--The plan required under paragraph (1) shall 
    include--
            (A) a description of the projects that are needed to 
        improve the infrastructure required for supporting missions 
        associated with Cheyenne Mountain Air Station; and
            (B) a funding plan explaining the expected timetable for 
        the Air Force to support such projects.

                       Subtitle F--Other Matters

SEC. 371. ENHANCEMENT OF CORROSION CONTROL AND PREVENTION FUNCTIONS 
              WITHIN DEPARTMENT OF DEFENSE.

    (a) Office of Corrosion Policy and Oversight.--
        (1) In general.--Section 2228 of title 10, United States Code, 
    is amended by striking the section heading and subsection (a) and 
    inserting the following:

``Sec. 2228. Office of Corrosion Policy and Oversight

    ``(a) Office and Director.--(1) There is an Office of Corrosion 
Policy and Oversight within the Office of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics.
    ``(2) The Office shall be headed by a Director of Corrosion Policy 
and Oversight, who shall be assigned to such position by the Under 
Secretary from among civilian employees of the Department of Defense 
with the qualifications described in paragraph (3). The Director is 
responsible in the Department of Defense to the Secretary of Defense 
(after the Under Secretary of Defense for Acquisition, Technology, and 
Logistics) for the prevention and mitigation of corrosion of the 
military equipment and infrastructure of the Department of Defense. The 
Director shall report directly to the Under Secretary.
    ``(3) In order to qualify to be assigned to the position of 
Director, an individual shall--
        ``(A) have management expertise in, and professional experience 
    with, corrosion project and policy implementation, including an 
    understanding of the effects of corrosion policies on 
    infrastructure; research, development, test, and evaluation; and 
    maintenance; and
        ``(B) have an understanding of Department of Defense budget 
    formulation and execution, policy formulation, and planning and 
    program requirements.
    ``(4) The Secretary of Defense shall designate the position of 
Director as a critical acquisition position under section 1733(b)(1)(C) 
of this title.''.
        (2) Conforming amendments.--Section 2228(b) of such title is 
    amended--
            (A) in paragraph (1), by striking ``official or 
        organization designated under subsection (a)'' and inserting 
        ``Director of Corrosion Policy and Oversight (in this section 
        referred to as the `Director')''; and
            (B) in paragraphs (2), (3), (4), and (5), by striking 
        ``designated official or organization'' and inserting 
        ``Director''.
    (b) Additional Authority for Director of Office.--Section 2228 of 
such title is further amended--
        (1) by redesignating subsections (c) and (d) as subsections (d) 
    and (f), respectively; and
        (2) by inserting after subsection (b) the following new 
    subsection:
    ``(c) Additional Authorities for Director.--The Director is 
authorized to--
        ``(1) develop, update, and coordinate corrosion training with 
    the Defense Acquisition University;
        ``(2) participate in the process within the Department of 
    Defense for the development of relevant directives and 
    instructions; and
        ``(3) interact directly with the corrosion prevention industry, 
    trade associations, other government corrosion prevention agencies, 
    academic research and educational institutions, and scientific 
    organizations engaged in corrosion prevention, including the 
    National Academy of Sciences.''.
    (c) Inclusion of Cooperative Research Agreements as Part of 
Corrosion Reduction Strategy.--Subsection (d)(2)(D) of section 2228 of 
such title, as redesignated by subsection (b), is amended by inserting 
after ``operational strategies'' the following: ``, including through 
the establishment of memoranda of agreement, joint funding agreements, 
public-private partnerships, university research and education centers, 
and other cooperative research agreements''.
    (d) Report Requirement.--Section 2228 of such title is further 
amended by inserting after subsection (d) (as redesignated by 
subsection (b)) the following new subsection:
    ``(e) Report.--(1) For each budget for a fiscal year, beginning 
with the budget for fiscal year 2009, the Secretary of Defense shall 
submit, with the defense budget materials, a report on the following:
        ``(A) Funding requirements for the long-term strategy developed 
    under subsection (d).
        ``(B) The return on investment that would be achieved by 
    implementing the strategy.
        ``(C) The funds requested in the budget compared to the funding 
    requirements.
        ``(D) An explanation if the funding requirements are not fully 
    funded in the budget.
    ``(2) Within 60 days after submission of the budget for a fiscal 
year, the Comptroller General shall provide to the congressional 
defense committees--
        ``(A) an analysis of the budget submission for corrosion 
    control and prevention by the Department of Defense; and
        ``(B) an analysis of the report required under paragraph 
    (1).''.
    (e) Definitions.--Subsection (f) of section 2228 of such title, as 
redesignated by subsection (b), is amended by adding at the end the 
following new paragraphs:
        ``(4) The term `budget', with respect to a fiscal year, means 
    the budget for that fiscal year that is submitted to Congress by 
    the President under section 1105(a) of title 31.
        ``(5) The term `defense budget materials', with respect to a 
    fiscal year, means the materials submitted to Congress by the 
    Secretary of Defense in support of the budget for that fiscal 
    year.''.
    (f) Clerical Amendment.--The table of sections at the beginning of 
chapter 131 of such title is amended by striking the item relating to 
section 2228 and inserting the following new item:

``2228. Office of Corrosion Policy and Oversight.''.

SEC. 372. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE SUPPORT FOR 
              CERTAIN SPORTING EVENTS.

    (a) Provision of Support.--Section 2564 of title 10, United States 
Code, is amended--
        (1) in subsection (c), by adding at the end the following new 
    paragraphs:
        ``(4) A sporting event sanctioned by the United States Olympic 
    Committee through the Paralympic Military Program.
        ``(5) Any national or international paralympic sporting event 
    (other than a sporting event described in paragraphs (1) through 
    (4))--
            ``(A) that--
                ``(i) is held in the United States or any of its 
            territories or commonwealths;
                ``(ii) is governed by the International Paralympic 
            Committee; and
                ``(iii) is sanctioned by the United States Olympic 
            Committee;
            ``(B) for which participation exceeds 100 amateur athletes; 
        and
            ``(C) in which at least 10 percent of the athletes 
        participating in the sporting event are members or former 
        members of the armed forces who are participating in the 
        sporting event based upon an injury or wound incurred in the 
        line of duty in the armed force and veterans who are 
        participating in the sporting event based upon a service-
        connected disability.''; and
        (2) by adding at the end the following new subsection:
    ``(g) Funding for Support of Certain Events.--(1) Amounts for the 
provision of support for a sporting event described in paragraph (4) or 
(5) of subsection (c) may be derived from the Support for International 
Sporting Competitions, Defense account established by section 5802 of 
the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208; 
10 U.S.C. 2564 note), notwithstanding any limitation under that section 
relating to the availability of funds in such account for the provision 
of support for international sporting competitions.
    ``(2) The total amount expended for any fiscal year to provide 
support for sporting events described in subsection (c)(5) may not 
exceed $1,000,000.''.
    (b) Source of Funds.--Section 5802 of the Omnibus Consolidated 
Appropriations Act, 1997 (Public Law 104-208; 10 U.S.C. 2564 note) is 
amended--
        (1) by inserting after ``international sporting competitions'' 
    the following: ``and for support of sporting competitions 
    authorized under section 2564(c)(4) and (5), of title 10, United 
    States Code,''; and
        (2) by striking ``45 days'' and inserting ``15 days''.

SEC. 373. AUTHORITY TO IMPOSE REASONABLE RESTRICTIONS ON PAYMENT OF 
              FULL REPLACEMENT VALUE FOR LOST OR DAMAGED PERSONAL 
              PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE.

    Section 2636a(d) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``The regulations may 
include a requirement that a member of the armed forces or civilian 
employee of the Department of Defense comply with reasonable 
restrictions or conditions prescribed by the Secretary in order to 
receive the full amount deducted under subsection (b).''.

SEC. 374. PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE AIRCRAFT OF 
              RETIRED MEMBERS RESIDING IN COMMONWEALTHS AND POSSESSIONS 
              OF THE UNITED STATES FOR CERTAIN HEALTH CARE SERVICES.

    (a) Availability of Transportation.--Chapter 157 of title 10, 
United States Code, is amended by inserting after section 2641a the 
following new section:

``Sec. 2641b. Space-available travel on Department of Defense aircraft: 
            retired members residing in Commonwealths and possessions 
            of the United States for certain health care services

    ``(a) Priority Transportation.--The Secretary of Defense shall 
provide transportation on Department of Defense aircraft on a space-
available basis for any member or former member of the uniformed 
services described in subsection (b), and a single dependent of the 
member if needed to accompany the member, at a priority level in the 
same category as the priority level for an unaccompanied dependent over 
the age of 18 traveling on environmental and morale leave.
    ``(b) Eligible Members and Former Members.--A member or former 
member eligible for priority transport under subsection (a) is a 
covered beneficiary under chapter 55 of this title who--
        ``(1) is entitled to retired or retainer pay;
        ``(2) resides in or is located in a Commonwealth or possession 
    of the United States; and
        ``(3) is referred by a military or civilian primary care 
    provider located in that Commonwealth or possession to a specialty 
    care provider for services to be provided outside of that 
    Commonwealth or possession.
    ``(c) Scope of Priority.--The increased priority for space-
available transportation required by subsection (a) applies with 
respect to both--
        ``(1) the travel from the Commonwealth or possession of the 
    United States to receive the specialty care services; and
        ``(2) the return travel.
    ``(d) Definitions.--In this section, the terms `primary care 
provider' and `specialty care provider' refer to a medical or dental 
professional who provides health care services under chapter 55 of this 
title.
    ``(e) Regulations.--The Secretary of Defense shall prescribe 
regulations to implement this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2641a the following new item:

``2641b. Space-available travel on Department of Defense aircraft: 
          retired members residing in Commonwealths and possessions of 
          the United States for certain health care services.''.

SEC. 375. RECOVERY OF MISSING MILITARY PROPERTY.

    (a) In General.--Chapter 165 of title 10, United States Code, is 
amended by adding at the end the following new sections:

``Sec. 2788. Property accountability: regulations

    ``The Secretary of a military department may prescribe regulations 
for the accounting for the property of that department and the fixing 
of responsibility for that property.

``Sec. 2789. Individual equipment: unauthorized disposition

    ``(a) Prohibition.--No member of the armed forces may sell, lend, 
pledge, barter, or give any clothing, arms, or equipment furnished to 
such member by the United States to any person other than a member of 
the armed forces or an officer of the United States who is authorized 
to receive it.
    ``(b) Seizure of Improperly Disposed Property.--If a member of the 
armed forces has disposed of property in violation of subsection (a) 
and the property is in the possession of a person who is neither a 
member of the armed forces nor an officer of the United States who is 
authorized to receive it, that person has no right to or interest in 
the property, and any civil or military officer of the United States 
may seize the property, wherever found, subject to applicable 
regulations. Possession of such property furnished by the United States 
to a member of the armed forces by a person who is neither a member of 
the armed forces, nor an officer of the United States, is prima facie 
evidence that the property has been disposed of in violation of 
subsection (a).
    ``(c) Delivery of Seized Property.--If an officer who seizes 
property under subsection (b) is not authorized to retain it for the 
United States, the officer shall deliver the property to a person who 
is authorized to retain it.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new items:

``2788. Property accountability: regulations.
``2789. Individual equipment: unauthorized disposition.''.

    (c) Conforming Amendments.--
        (1) In general.--Such title is further amended by striking the 
    following sections:
            (A) Section 4832.
            (B) Section 4836.
            (C) Section 9832.
            (D) Section 9836.
        (2) Clerical amendments.--
            (A) Chapter 453.--The table of sections at the beginning of 
        chapter 453 of such title is amended by striking the items 
        relating to sections 4832 and 4836.
            (B) Chapter 953.--The table of sections at the beginning of 
        chapter 953 of such title is amended by striking the items 
        relating to sections 9832 and 9836.

SEC. 376. RETENTION OF COMBAT UNIFORMS BY MEMBERS OF THE ARMED FORCES 
              DEPLOYED IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Retention of Combat Uniforms.--Chapter 152 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2568. Retention of combat uniforms by members deployed in 
            support of contingency operations

    ``The Secretary of a military department may authorize a member of 
the armed forces under the jurisdiction of the Secretary who has been 
deployed in support of a contingency operation for at least 30 days to 
retain, after that member is no longer so deployed, the combat uniform 
issued to that member as organizational clothing and individual 
equipment.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2568. Retention of combat uniforms by members deployed in support of 
          contingency operations.''.

SEC. 377. ISSUE OF SERVICEABLE MATERIAL OF THE NAVY OTHER THAN TO ARMED 
              FORCES.

    (a) In General.--Part IV of subtitle C of title 10, United States 
Code, is amended by adding at the end the following new chapter:

``CHAPTER 667--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

``Sec.
``7911. Arms, tentage, and equipment: educational institutions not 
          maintaining units of R.O.T.C.
``7912. Rifles and ammunition for target practice: educational 
          institutions having corps of midshipmen.
``7913. Supplies: military instruction camps.

``Sec. 7911. Arms, tentage, and equipment: educational institutions not 
            maintaining units of R.O.T.C.

    ``Under such conditions as he may prescribe, the Secretary of the 
Navy may issue arms, tentage, and equipment that the Secretary 
considers necessary for proper military training, to any educational 
institution at which no unit of the Reserve Officers' Training Corps is 
maintained, but which has a course in military training prescribed by 
the Secretary and which has at least 50 physically fit students over 14 
years of age.

``Sec. 7912. Rifles and ammunition for target practice: educational 
            institutions having corps of midshipmen

    ``(a) Authority To Lend.--The Secretary of the Navy may lend, 
without expense to the United States, magazine rifles and appendages 
that are not of the existing service models in use at the time and that 
are not necessary for a proper reserve supply, to any educational 
institution having a uniformed corps of midshipmen of sufficient number 
for target practice. The Secretary may also issue 40 rounds of ball 
cartridges for each midshipman for each range at which target practice 
is held, but not more than 120 rounds each year for each midshipman 
participating in target practice.
    ``(b) Responsibilities of Institutions.--The institutions to which 
property is lent under subsection (a) shall--
        ``(1) use the property for target practice;
        ``(2) take proper care of the property; and
        ``(3) return the property when required.
    ``(c) Regulations.--The Secretary of the Navy shall prescribe 
regulations to carry out this section, containing such other 
requirements as he considers necessary to safeguard the interests of 
the United States.

``Sec. 7913. Supplies: military instruction camps

    ``Under such conditions as he may prescribe, the Secretary of the 
Navy may issue, to any educational institution at which an officer of 
the naval service is detailed as professor of naval science, such 
supplies as are necessary to establish and maintain a camp for the 
military instruction of its students. The Secretary shall require a 
bond in the value of the property issued under this section, for the 
care and safekeeping of that property and except for property properly 
expended, for its return when required.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
subtitle C of such title, and the table of chapters at the beginning of 
part IV of such subtitle, are each amended by inserting after the item 
relating to chapter 665 the following new item:

``667. Issue of serviceable material other than to Armed Forces.7911.''.

SEC. 378. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

    Section 44310 of title 49, United States Code, is amended by 
striking ``March 30, 2008'' and inserting ``December 31, 2013''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
          active duty end strengths for fiscal years 2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
          duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
          duty in the grades of lieutenant commander, commander, and 
          captain.
Sec. 406. Increase in authorized daily average of number of members in 
          pay grade E-9.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2008 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.
Sec. 416. Future authorizations and accounting for certain reserve 
          component personnel authorized to be on active duty or full-
          time National Guard duty to provide operational support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
          strengths.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General.--The Armed Forces are authorized strengths for 
active duty personnel as of September 30, 2008, as follows:
        (1) The Army, 525,400.
        (2) The Navy, 329,098.
        (3) The Marine Corps, 189,000.
        (4) The Air Force, 329,563.
    (b) Limitation.--
        (1) Army.--The authorized strength for the Army provided in 
    paragraph (1) of subsection (a) for active duty personnel for 
    fiscal year 2008 is subject to the condition that costs of active 
    duty personnel of the Army for that fiscal year in excess of 
    489,400 shall be paid out of funds authorized to be appropriated 
    for that fiscal year by section 1514.
        (2) Marine corps.--The authorized strength for the Marine Corps 
    provided in paragraph (3) of subsection (a) for active duty 
    personnel for fiscal year 2008 is subject to the condition that 
    costs of active duty personnel of the Marine Corps for that fiscal 
    year in excess of 180,000 shall be paid out of funds authorized to 
    be appropriated for that fiscal year by section 1514.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
              LEVELS.

    Section 691(b) of title 10, United States Code, is amended by 
striking paragraphs (1) through (4) and inserting the following new 
paragraphs:
        ``(1) For the Army, 525,400.
        ``(2) For the Navy, 328,400.
        ``(3) For the Marine Corps, 189,000.
        ``(4) For the Air Force, 328,600.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS 
              ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2009 AND 2010.

    (a) Authority to Increase Army Active Duty End Strengths.--For each 
of fiscal years 2009 and 2010, the Secretary of Defense may, as the 
Secretary determines necessary for the purposes described in subsection 
(c), establish the active-duty end strength for the Army at a number 
greater than the number otherwise authorized by law up to the number 
equal to the fiscal-year 2008 baseline plus 22,000.
    (b) Marine Corps.--For each of fiscal years 2009 and 2010, the 
Secretary of Defense may, as the Secretary determines necessary for the 
purposes described in subsection (c), establish the active-duty end 
strength for the Marine Corps at a number greater than the number 
otherwise authorized by law up to the number equal to the fiscal-year 
2008 baseline plus 13,000.
    (c) Purpose of Increases.--The purposes for which increases may be 
made in Army and Marine Corps active duty end strengths under this 
section are--
        (1) to support operational missions; and
        (2) to achieve transformational reorganization objectives, 
    including objectives for increased numbers of combat brigades and 
    battalions, increased unit manning, force stabilization and 
    shaping, and rebalancing of the active and reserve component 
    forces.
    (d) Relationship to Presidential Waiver Authority.--Nothing in this 
section shall be construed to limit the President's authority under 
section 123a of title 10, United States Code, to waive any statutory 
end strength in a time of war or national emergency.
    (e) Relationship to Other Variance Authority.--The authority under 
this section is in addition to the authority to vary authorized end 
strengths that is provided in subsections (e) and (f) of section 115 of 
title 10, United States Code.
    (f) Budget Treatment.--
        (1) Fiscal years 2009 and 2010 budgets.--The budget for the 
    Department of Defense for fiscal years 2009 and 2010 as submitted 
    to Congress shall comply, with respect to funding, with subsections 
    (c) and (d) of section 691 of title 10, United States Code.
        (2) Other increases.--If the Secretary of Defense plans to 
    increase the Army or Marine Corps active duty end strength for a 
    fiscal year under this section, then the budget for the Department 
    of Defense for that fiscal year as submitted to Congress shall 
    include the amounts necessary for funding that active duty end 
    strength in excess of the fiscal year 2008 active duty end strength 
    authorized for that service under section 401.
    (g) Definitions.--In this section:
        (1) Fiscal-year 2008 baseline.--The term ``fiscal-year 2008 
    baseline'', with respect to the Army and Marine Corps, means the 
    active-duty end strength authorized for those services in section 
    401.
        (2) Active-duty end strength.--In this subsection, the term 
    ``active-duty end strength'' means the strength for active-duty 
    personnel of one of the Armed Forces as of the last day of a fiscal 
    year.
    (h) Repeal of Other Discretionary Authority to Temporarily Increase 
Army and Marine Corps Active Duty End Strengths.--Section 403 of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375; 10 U.S.C. 115 note), as amended by section 
403 of the John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109-364; 120 Stat. 2169), is repealed.

SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE 
              DUTY IN THE GRADE OF MAJOR.

    The portion of the table in section 523(a)(1) of title 10, United 
States Code, relating to the Army is amended to read as follows:


------------------------------------------------------------------------
``Total number of commissioned  Number of officers who may be serving on
 officers (excluding officers           active duty in grade of:
  in categories specified in   -----------------------------------------
   subsection (b)) on active                   Lieutenant
             duty:                  Major        Colonel       Colonel
------------------------------------------------------------------------
  Army:
  20,000                              7,768         5,253         1,613
  25,000                              8,689         5,642         1,796
  30,000                              9,611         6,030         1,980
  35,000                             10,532         6,419         2,163
  40,000                             11,454         6,807         2,347
  45,000                             12,375         7,196         2,530
  50,000                             13,297         7,584         2,713
  55,000                             14,218         7,973         2,897
  60,000                             15,140         8,361         3,080
  65,000                             16,061         8,750         3,264
  70,000                             16,983         9,138         3,447
  75,000                             17,903         9,527         3,631
  80,000                             18,825         9,915         3,814
  85,000                             19,746        10,304         3,997
  90,000                             20,668        10,692         4,181
  95,000                             21,589        11,081         4,364
  100,000                            22,511        11,469         4,548
  110,000                            24,354        12,246         4,915
  120,000                            26,197        13,023         5,281
  130,000                            28,040        13,800         5,648
  170,000                            35,412        16,908      7,116''.
------------------------------------------------------------------------


SEC. 405. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE 
              DUTY IN THE GRADES OF LIEUTENANT COMMANDER, COMMANDER, 
              AND CAPTAIN.

    The table in section 523(a)(2) of title 10, United States Code, is 
amended to read as follows:


------------------------------------------------------------------------
``Total number of commissioned  Number of officers who may be serving on
 officers (excluding officers           active duty in grade of:
  in categories specified in   -----------------------------------------
   subsection (b)) on active     Lieutenant
             duty:                Commander     Commander      Captain
------------------------------------------------------------------------
  Navy:
  30,000                              7,698         5,269         2,222
  33,000                              8,189         5,501         2,334
  36,000                              8,680         5,733         2,447
  39,000                              9,172         5,965         2,559
  42,000                              9,663         6,197         2,671
  45,000                             10,155         6,429         2,784
  48,000                             10,646         6,660         2,896
  51,000                             11,136         6,889         3,007
  54,000                             11,628         7,121         3,120
  57,000                             12,118         7,352         3,232
  60,000                             12,609         7,583         3,344
  63,000                             13,100         7,813         3,457
  66,000                             13,591         8,044         3,568
  70,000                             14,245         8,352         3,718
  90,000                             17,517         9,890      4,467''.
------------------------------------------------------------------------


SEC. 406. INCREASE IN AUTHORIZED DAILY AVERAGE OF NUMBER OF MEMBERS IN 
              PAY GRADE E-9.

    Section 517(a) of title 10, United States Code, is amended by 
striking ``1 percent'' and inserting ``1.25 percent''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2008, as follows:
        (1) The Army National Guard of the United States, 351,300.
        (2) The Army Reserve, 205,000.
        (3) The Navy Reserve, 67,800.
        (4) The Marine Corps Reserve, 39,600.
        (5) The Air National Guard of the United States, 106,700.
        (6) The Air Force Reserve, 67,500.
        (7) The Coast Guard Reserve, 10,000.
    (b) End Strength Reductions.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve component shall 
be proportionately reduced by--
        (1) the total authorized strength of units organized to serve 
    as units of the Selected Reserve of such component which are on 
    active duty (other than for training) at the end of the fiscal 
    year; and
        (2) the total number of individual members not in units 
    organized to serve as units of the Selected Reserve of such 
    component who are on active duty (other than for training or for 
    unsatisfactory participation in training) without their consent at 
    the end of the fiscal year.
    (c) End Strength Increases.--Whenever units or individual members 
of the Selected Reserve of any reserve component are released from 
active duty during any fiscal year, the end strength prescribed for 
such fiscal year for the Selected Reserve of such reserve component 
shall be increased proportionately by the total authorized strengths of 
such units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
              RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2008, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
        (1) The Army National Guard of the United States, 29,204.
        (2) The Army Reserve, 15,870.
        (3) The Navy Reserve, 11,579.
        (4) The Marine Corps Reserve, 2,261.
        (5) The Air National Guard of the United States, 13,936.
        (6) The Air Force Reserve, 2,721.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2008 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
        (1) For the Army Reserve, 8,249.
        (2) For the Army National Guard of the United States, 26,502.
        (3) For the Air Force Reserve, 9,909.
        (4) For the Air National Guard of the United States, 22,553.

SEC. 414. FISCAL YEAR 2008 LIMITATION ON NUMBER OF NON-DUAL STATUS 
              TECHNICIANS.

    (a) Limitations.--
        (1) National guard.--Within the limitation provided in section 
    10217(c)(2) of title 10, United States Code, the number of non-dual 
    status technicians employed by the National Guard as of September 
    30, 2008, may not exceed the following:
            (A) For the Army National Guard of the United States, 
        1,600.
            (B) For the Air National Guard of the United States, 350.
        (2) Army reserve.--The number of non-dual status technicians 
    employed by the Army Reserve as of September 30, 2008, may not 
    exceed 595.
        (3) Air force reserve.--The number of non-dual status 
    technicians employed by the Air Force Reserve as of September 30, 
    2008, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.

SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
              ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2008, the maximum number of members of the 
reserve components of the Armed Forces who may be serving at any time 
on full-time operational support duty under section 115(b) of title 10, 
United States Code, is the following:
        (1) The Army National Guard of the United States, 17,000.
        (2) The Army Reserve, 13,000.
        (3) The Navy Reserve, 6,200.
        (4) The Marine Corps Reserve, 3,000.
        (5) The Air National Guard of the United States, 16,000.
        (6) The Air Force Reserve, 14,000.

SEC. 416. FUTURE AUTHORIZATIONS AND ACCOUNTING FOR CERTAIN RESERVE 
              COMPONENT PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY OR 
              FULL-TIME NATIONAL GUARD DUTY TO PROVIDE OPERATIONAL 
              SUPPORT.

    (a) Review of Operational Support Missions Performed by Certain 
Reserve Component Personnel.--
        (1) Review required.--The Secretary of Defense shall conduct a 
    review of the long-term operational support missions performed by 
    members of the reserve components authorized under section 115(b) 
    of title 10, United States Code, to be on active duty or full-time 
    National Guard duty for the purpose of providing operational 
    support, with the objectives of such review being--
            (A) minimizing the number of reserve component members who 
        perform such service for a period greater than 1,095 
        consecutive days, or cumulatively for 1,095 days out of the 
        previous 1,460 days; and
            (B) determining which long-term operational support 
        missions being performed by such members would more 
        appropriately be performed by members of the Armed Forces on 
        active duty under other provisions of title 10, United States 
        Code, or by full-time support personnel of reserve components.
        (2) Submission of results.--Not later than March 1, 2008, the 
    Secretary shall submit to Congress the results of the review, 
    including a description of the adjustments in Department of Defense 
    policy to be implemented as a result of the review and such 
    recommendations for changes in statute, as the Secretary considers 
    to be appropriate.
    (b) Improved Accounting for Reserve Component Personnel Providing 
Operational Support.--Section 115(b) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(4) As part of the budget justification materials submitted by 
the Secretary of Defense to Congress in support of the end strength 
authorizations required under subparagraphs (A) and (B) of subsection 
(a)(1) for fiscal year 2009 and each fiscal year thereafter, the 
Secretary shall provide the following:
        ``(A) The number of members, specified by reserve component, 
    authorized under subparagraphs (A) and (B) of paragraph (1) who 
    were serving on active duty or full-time National Guard duty for 
    operational support beyond each of the limits specified under 
    subparagraphs (A) and (B) of paragraph (2) at the end of the fiscal 
    year preceding the fiscal year for which the budget justification 
    materials are submitted.
        ``(B) The number of members, specified by reserve component, on 
    active duty for operational support who, at the end of the fiscal 
    year for which the budget justification materials are submitted, 
    are projected to be serving on active duty or full-time National 
    Guard duty for operational support beyond such limits.
        ``(C) The number of members, specified by reserve component, on 
    active duty or full-time National Guard duty for operational 
    support who are included in, and counted against, the end strength 
    authorizations requested under subparagraphs (A) and (B) of 
    subsection (a)(1).
        ``(D) A summary of the missions being performed by members 
    identified under subparagraphs (A) and (B).''.

SEC. 417. REVISION OF VARIANCES AUTHORIZED FOR SELECTED RESERVE END 
              STRENGTHS.

    Section 115(f)(3) of title 10, United States Code, is amended by 
striking ``2 percent'' and inserting ``3 percent''.

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2008 a total of 
$117,091,420,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2008.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
          and responsibility.
Sec. 502. Enhanced authority for Reserve general and flag officers to 
          serve on active duty.
Sec. 503. Increase in years of commissioned service threshold for 
          discharge of probationary officers and for use of force 
          shaping authority.
Sec. 504. Mandatory retirement age for active-duty general and flag 
          officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for initial 
          appointments of officers in critically short health 
          professional specialties.
Sec. 506. Expansion of authority for reenlistment of officers in their 
          former enlisted grade.
Sec. 507. Increase in authorized number of permanent professors at the 
          United States Military Academy.
Sec. 508. Promotion of career military professors of the Navy.

                Subtitle B--Reserve Component Management

Sec. 511. Retention of military technicians who lose dual status in the 
          Selected Reserve due to combat-related disability.
Sec. 512. Constructive service credit upon original appointment of 
          Reserve officers in certain health care professions.
Sec. 513. Mandatory separation of Reserve officers in the grade of 
          lieutenant general or vice admiral after completion of 38 
          years of commissioned service.
Sec. 514. Maximum period of temporary Federal recognition of person as 
          Army National Guard officer or Air National Guard officer.
Sec. 515. Advance notice to members of reserve components of deployment 
          in support of contingency operations.
Sec. 516. Report on relief from professional licensure and certification 
          requirements for reserve component members on long-term active 
          duty.

                   Subtitle C--Education and Training

Sec. 521. Revisions to authority to pay tuition for off-duty training or 
          education.
Sec. 522. Reduction or elimination of service obligation in an Army 
          Reserve or Army National Guard troop program unit for certain 
          persons selected as medical students at Uniformed Services 
          University of the Health Sciences.
Sec. 523. Repeal of annual limit on number of ROTC scholarships under 
          Army Reserve and Army National Guard financial assistance 
          program.
Sec. 524. Treatment of prior active service of members in uniformed 
          medical accession programs.
Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased 
          increase in cadet strength limit at the United States Military 
          Academy.
Sec. 526. National Defense University master's degree programs.
Sec. 527. Authority of the Air University to confer degree of master of 
          science in flight test engineering.
Sec. 528. Enhancement of education benefits for certain members of 
          reserve components.
Sec. 529. Extension of period of entitlement to educational assistance 
          for certain members of the Selected Reserve affected by force 
          shaping initiatives.
Sec. 530. Time limit for use of educational assistance benefit for 
          certain members of reserve components and resumption of 
          benefit.
Sec. 531. Secretary of Defense evaluation of the adequacy of the degree-
          granting authorities of certain military universities and 
          educational institutions.
Sec. 532. Report on success of Army National Guard and Reserve Senior 
          Reserve Officers' Training Corps financial assistance program.
Sec. 533. Report on utilization of tuition assistance by members of the 
          Armed Forces.
Sec. 534. Navy Junior Reserve Officers' Training Corps unit for 
          Southold, Mattituck, and Greenport High Schools.
Sec. 535. Report on transfer of administration of certain educational 
          assistance programs for members of the reserve components.

        Subtitle D--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate civilian employees of the Federal 
          Government and dependents of deceased members as eligible for 
          legal assistance from Department of Defense legal staff 
          resources.
Sec. 542. Authority of judges of the United States Court of Appeals for 
          the Armed Forces to administer oaths.
Sec. 543. Modification of authorities on senior members of the Judge 
          Advocate Generals' Corps.
Sec. 544. Prohibition against members of the Armed Forces participating 
          in criminal street gangs.

                       Subtitle E--Military Leave

Sec. 551. Temporary enhancement of carryover of accumulated leave for 
          members of the Armed Forces.
Sec. 552. Enhancement of rest and recuperation leave.

                   Subtitle F--Decorations and Awards

Sec. 561. Authorization and request for award of Medal of Honor to 
          Leslie H. Sabo, Jr., for acts of valor during the Vietnam War.
Sec. 562. Authorization and request for award of Medal of Honor to Henry 
          Svehla for acts of valor during the Korean War.
Sec. 563. Authorization and request for award of Medal of Honor to 
          Woodrow W. Keeble for acts of valor during the Korean War.
Sec. 564. Authorization and request for award of Medal of Honor to 
          Private Philip G. Shadrach for acts of valor as one of 
          Andrews' Raiders during the Civil War.
Sec. 565. Authorization and request for award of Medal of Honor to 
          Private George D. Wilson for acts of valor as one of Andrews' 
          Raiders during the Civil War.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 571. Continuation of authority to assist local educational agencies 
          that benefit dependents of members of the Armed Forces and 
          Department of Defense civilian employees.
Sec. 572. Impact aid for children with severe disabilities.
Sec. 573. Inclusion of dependents of non-department of Defense employees 
          employed on Federal property in plan relating to force 
          structure changes, relocation of military units, or base 
          closures and realignments.
Sec. 574. Payment of private boarding school tuition for military 
          dependents in overseas areas not served by defense dependents' 
          education system schools.

                      Subtitle H--Military Families

Sec. 581. Department of Defense Military Family Readiness Council and 
          policy and plans for military family readiness.
Sec. 582. Yellow Ribbon Reintegration Program.
Sec. 583. Study to enhance and improve support services and programs for 
          families of members of regular and reserve components 
          undergoing deployment.
Sec. 584. Protection of child custody arrangements for parents who are 
          members of the Armed Forces deployed in support of a 
          contingency operation.
Sec. 585. Family leave in connection with injured members of the Armed 
          Forces.
Sec. 586. Family care plans and deferment of deployment of single parent 
          or dual military couples with minor dependents.
Sec. 587. Education and treatment services for military dependent 
          children with autism.
Sec. 588. Commendation of efforts of Project Compassion in paying 
          tribute to members of the Armed Forces who have fallen in the 
          service of the United States.

                        Subtitle I--Other Matters

Sec. 590. Uniform performance policies for military bands and other 
          musical units.
Sec. 591. Transportation of remains of deceased members of the Armed 
          Forces and certain other persons.
Sec. 592. Expansion of number of academies supportable in any State 
          under STARBASE program.
Sec. 593. Gift acceptance authority.
Sec. 594. Conduct by members of the Armed Forces and veterans out of 
          uniform during hoisting, lowering, or passing of United States 
          flag.
Sec. 595. Annual report on cases reviewed by National Committee for 
          Employer Support of the Guard and Reserve.
Sec. 596. Modification of Certificate of Release or Discharge from 
          Active Duty (DD Form 214).
Sec. 597. Reports on administrative separations of members of the Armed 
          Forces for personality disorder.
Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.
Sec. 599. Recognition of members of the Monuments, Fine Arts, and 
          Archives program of the Civil Affairs and Military Government 
          Sections of the Armed Forces during and following World War 
          II.

                  Subtitle A--Officer Personnel Policy

SEC. 501. ASSIGNMENT OF OFFICERS TO DESIGNATED POSITIONS OF IMPORTANCE 
              AND RESPONSIBILITY.

    (a) Continuation in Grade While Awaiting Orders.--Section 601(b) of 
title 10, United States Code, is amended--
        (1) by striking ``and'' at the end of paragraph (3);
        (2) by redesignating paragraph (4) as paragraph (5); and
        (3) by inserting after paragraph (3) the following new 
    paragraph (4):
        ``(4) at the discretion of the Secretary of Defense, while the 
    officer is awaiting orders after being relieved from the position 
    designated under subsection (a) or by law to carry one of those 
    grades, but not for more than 60 days beginning on the day the 
    officer is relieved from the position, unless, during such period, 
    the officer is placed under orders to another position designated 
    under subsection (a) or by law to carry one of those grades, in 
    which case paragraph (2) will also apply to the officer; and''.
    (b) Conforming Amendment Regarding General and Flag Officer 
Ceilings.--Section 525(e) of such title is amended by striking 
paragraph (2) and inserting the following new paragraph:
        ``(2) At the discretion of the Secretary of Defense, an officer 
    of that armed force who has been relieved from a position 
    designated under section 601(a) of this title or by law to carry 
    one of the grades specified in such section, but only during the 
    60-day period beginning on the date on which the assignment of the 
    officer to the first position is terminated or until the officer is 
    assigned to a second such position, whichever occurs first.''.

SEC. 502. ENHANCED AUTHORITY FOR RESERVE GENERAL AND FLAG OFFICERS TO 
              SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is amended--
        (1) by inserting ``(1)'' before ``The limitations''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The limitations of this section also do not apply to a 
number, as specified by the Secretary of the military department 
concerned, of reserve component general or flag officers authorized to 
serve on active duty for a period of not more than 365 days. The number 
so specified for an armed force may not exceed the number equal to 10 
percent of the authorized number of general or flag officers, as the 
case may be, of that armed force under section 12004 of this title. In 
determining such number, any fraction shall be rounded down to the next 
whole number, except that such number shall be at least one.''.

SEC. 503. INCREASE IN YEARS OF COMMISSIONED SERVICE THRESHOLD FOR 
              DISCHARGE OF PROBATIONARY OFFICERS AND FOR USE OF FORCE 
              SHAPING AUTHORITY.

    (a) Active-Duty List Officers.--
        (1) Extended probationary period.--Paragraph (1)(A) of section 
    630 of title 10, United States Code, is amended by striking ``five 
    years'' and inserting ``six years''.
        (2) Section heading.--The heading of such section is amended by 
    striking ``five years'' and inserting ``six years''.
        (3) Table of sections.--The item relating to such section in 
    the table of sections at the beginning of subchapter III of chapter 
    36 of such title is amended to read as follows:
``630. Discharge of commissioned officers with less than six years of 
          active commissioned service or found not qualified for 
          promotion for first lieutenant or lieutenant (junior 
          grade).''.
    (b) Officer Force Shaping Authority.--Section 647(b)(1) of such 
title is amended by striking ``5 years'' both places it appears and 
inserting ``six years''.
    (c) Reserve Officers.--
        (1) Extended probationary period.--Subsection (a)(1) of section 
    14503 of such title is amended by striking ``five years'' and 
    inserting ``six years''.
        (2) Section heading.--The heading of such section is amended by 
    striking ``five years'' and inserting ``six years''.
        (3) Table of sections.--The item relating to such section in 
    the table of sections at the beginning of chapter 1407 of such 
    title is amended to read as follows:
``14503. Discharge of officers with less than six years of commissioned 
          service or found not qualified for promotion to first 
          lieutenant or lieutenant (junior grade).''.

SEC. 504. MANDATORY RETIREMENT AGE FOR ACTIVE-DUTY GENERAL AND FLAG 
              OFFICERS CONTINUED ON ACTIVE DUTY.

    Section 637(b)(3) of title 10, United States Code, is amended by 
striking ``but such period may not (except as provided under section 
1251(b) of this title) extend beyond the date of the officer's sixty-
second birthday'' and inserting ``except as provided under section 1251 
or 1253 of this title''.

SEC. 505. AUTHORITY FOR REDUCED MANDATORY SERVICE OBLIGATION FOR 
              INITIAL APPOINTMENTS OF OFFICERS IN CRITICALLY SHORT 
              HEALTH PROFESSIONAL SPECIALTIES.

    Section 651 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) For the armed forces under the jurisdiction of the 
Secretary of Defense, the Secretary may waive the initial period of 
required service otherwise established pursuant to subsection (a) in 
the case of the initial appointment of a commissioned officer in a 
critically short health professional specialty specified by the 
Secretary for purposes of this subsection.
    ``(2) The minimum period of obligated service for an officer under 
a waiver under this subsection shall be the greater of--
        ``(A) two years; or
        ``(B) in the case of an officer who has accepted an accession 
    bonus or executed a contract or agreement for the multiyear receipt 
    of special pay for service in the armed forces, the period of 
    obligated service specified in such contract or agreement.''.

SEC. 506. EXPANSION OF AUTHORITY FOR REENLISTMENT OF OFFICERS IN THEIR 
              FORMER ENLISTED GRADE.

    (a) Regular Army.--Section 3258 of title 10, United States Code, is 
amended--
        (1) in subsection (a)--
            (A) by striking ``a Reserve officer'' and inserting ``an 
        officer''; and
            (B) by striking ``a temporary appointment'' and inserting 
        ``an appointment''; and
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``a Reserve officer'' and 
        inserting ``an officer''; and
            (B) in paragraph (2), by striking ``the Reserve 
        commission'' and inserting ``the commission''.
    (b) Regular Air Force.--Section 8258 of such title is amended--
        (1) in subsection (a)--
            (A) by striking ``a reserve officer'' and inserting ``an 
        officer''; and
            (B) by striking ``a temporary appointment'' and inserting 
        ``an appointment''; and
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``a Reserve officer'' and 
        inserting ``an officer''; and
            (B) in paragraph (2), by striking ``the Reserve 
        commission'' and inserting ``the commission''.

SEC. 507. INCREASE IN AUTHORIZED NUMBER OF PERMANENT PROFESSORS AT THE 
              UNITED STATES MILITARY ACADEMY.

    Paragraph (4) of section 4331(b) of title 10, United States Code, 
is amended to read as follows:
        ``(4) Twenty-eight permanent professors.''.

SEC. 508. PROMOTION OF CAREER MILITARY PROFESSORS OF THE NAVY.

    (a) Promotion.--
        (1) In general.--Chapter 603 of title 10, United States Code, 
    is amended--
            (A) by redesignating section 6970 as section 6970a; and
            (B) by inserting after section 6969 the following new 
        section 6970:

``Sec. 6970. Permanent professors: promotion

    ``(a) Promotion.--An officer serving as a permanent professor may 
be recommended for promotion to the grade of captain or colonel, as the 
case may be, under regulations prescribed by the Secretary of the Navy. 
The regulations shall include a competitive selection board process to 
identify those permanent professors best qualified for promotion. An 
officer so recommended shall be promoted by appointment to the higher 
grade by the President, by and with the advice and consent of the 
Senate.
    ``(b) Effective Date of Promotion.--If made, the promotion of an 
officer under subsection (a) shall be effective not earlier than three 
years after the selection of the officer as a permanent professor as 
described in that subsection.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by striking the item relating to section 
    6970 and inserting the following new items:

``6970. Permanent professors: promotion.
``6970a. Permanent professors: retirement for years of service; 
          authority for deferral.''.
    (b) Conforming Amendments.--Section 641(2) of such title is 
amended--
        (1) by striking ``and the registrar'' and inserting ``, the 
    registrar''; and
        (2) by inserting before the period at the end the following: 
    ``, and permanent professors of the Navy (as defined in regulations 
    prescribed by the Secretary of the Navy)''.
    (c) Competitive Selection Assessment.--The Secretary of Defense 
shall conduct an assessment of the effectiveness of the promotion 
system established under section 6970 of title 10, United States Code, 
as added by subsection (a), for permanent professors of the United 
States Naval Academy, including an evaluation of the extent to which 
the implementation of the promotion system has resulted in a 
competitive environment for the selection of permanent professors and 
an evaluation of whether the goals of the permanent professor program 
have been achieved, including adequate career progression and promotion 
opportunities for participating officers. Not later than December 31, 
2009, the Secretary shall submit to the congressional defense 
committees a report containing the results of the assessment.
    (d) Use of Exclusions From Authorized Officer Strengths.--Not later 
than March 31, 2008, the Secretary of the Navy shall submit to the 
congressional defense committees a report describing the plans of the 
Secretary for utilization of authorized exemptions under section 
523(b)(8) of title 10, United States Code, and a discussion of the 
Navy's requirement, if any, and projections for use of additional 
exemptions by grade.

                Subtitle B--Reserve Component Management

SEC. 511. RETENTION OF MILITARY TECHNICIANS WHO LOSE DUAL STATUS IN THE 
              SELECTED RESERVE DUE TO COMBAT-RELATED DISABILITY.

    Section 10216 of title 10, United States Code, is amended by 
inserting after subsection (f) the following new subsection:
    ``(g) Retention of Military Technicians Who Lose Dual Status Due to 
Combat-Related Disability.--(1) Notwithstanding subsection (d) of this 
section or subsections (a)(3) and (b) of section 10218 of this title, 
if a military technician (dual status) loses such dual status as the 
result of a combat-related disability (as defined in section 1413a of 
this title), the person may be retained as a non-dual status technician 
so long as--
        ``(A) the combat-related disability does not prevent the person 
    from performing the non-dual status functions or position; and
        ``(B) the person, while a non-dual status technician, is not 
    disqualified from performing the non-dual status functions or 
    position because of performance, medical, or other reasons.
    ``(2) A person so retained shall be removed not later than 30 days 
after becoming eligible for an unreduced annuity and becoming 60 years 
of age.
    ``(3) Persons retained under the authority of this subsection do 
not count against the limitations of section 10217(c) of this title.''.

SEC. 512. CONSTRUCTIVE SERVICE CREDIT UPON ORIGINAL APPOINTMENT OF 
              RESERVE OFFICERS IN CERTAIN HEALTH CARE PROFESSIONS.

    (a) Inclusion of Additional Health Care Professions.--Paragraph (2) 
of section 12207(b) of title 10, United States Code, is amended to read 
as follows:
    ``(2)(A) If the Secretary of Defense determines that the number of 
officers in a health profession described in subparagraph (B) who are 
serving in an active status in a reserve component of the Army, Navy, 
or Air Force in grades below major or lieutenant commander is 
critically below the number needed in such health profession by such 
reserve component in such grades, the Secretary of Defense may 
authorize the Secretary of the military department concerned to credit 
any person who is receiving an original appointment as an officer for 
service in such health profession with a period of constructive credit 
in such amount (in addition to any amount credited such person under 
paragraph (1)) as will result in the grade of such person being that of 
captain or, in the case of the Navy Reserve, lieutenant.
    ``(B) The types of health professions referred to in subparagraph 
(A) include the following:
        ``(i) Any health profession performed by officers in the 
    Medical Corps of the Army or the Navy or by officers of the Air 
    Force designated as a medical officer.
        ``(ii) Any health profession performed by officers in the 
    Dental Corps of the Army or the Navy or by officers of the Air 
    Force designated as a dental officer.
        ``(iii) Any health profession performed by officers in the 
    Medical Service Corps of the Army or the Navy or by officers of the 
    Air Force designated as a medical service officer or biomedical 
    sciences officer.
        ``(iv) Any health profession performed by officers in the Army 
    Medical Specialist Corps.
        ``(v) Any health profession performed by officers of the Nurse 
    Corps of the Army or the Navy or by officers of the Air Force 
    designated as a nurse.
        ``(vi) Any health profession performed by officers in the 
    Veterinary Corps of the Army or by officers designated as a 
    veterinary officer.''.
    (b) Conforming Amendment.--Paragraph (3) of such section is amended 
by striking ``a medical or dental officer'' and inserting ``officers 
covered by paragraph (2)''.

SEC. 513. MANDATORY SEPARATION OF RESERVE OFFICERS IN THE GRADE OF 
              LIEUTENANT GENERAL OR VICE ADMIRAL AFTER COMPLETION OF 38 
              YEARS OF COMMISSIONED SERVICE.

    (a) Mandatory Separation.--Section 14508 of title 10, United States 
Code, is amended--
        (1) by redesignating subsections (c), (d), and (e) as 
    subsections (e), (f), and (g), respectively; and
        (2) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c) Thirty-Eight Years of Service for Lieutenant Generals and 
Vice Admirals.--Unless retired, transferred to the Retired Reserve, or 
discharged at an earlier date, each reserve officer of the Army, Air 
Force, or Marine Corps in the grade of lieutenant general and each 
reserve officer of the Navy in the grade of vice admiral shall be 
separated in accordance with section 14514 of this title on the later 
of the following:
        ``(1) 30 days after completion of 38 years of commissioned 
    service.
        ``(2) The fifth anniversary of the date of the officer's 
    appointment in the grade of lieutenant general or vice admiral.''.
    (b) Clerical Amendments.--Such section is further amended--
        (1) in subsection (a), by inserting ``for Brigadier Generals 
    and Rear Admirals (Lower Half)'' after ``Grade'' in the subsection 
    heading; and
        (2) in subsection (b), by inserting ``for Major Generals and 
    Rear Admirals'' after ``Grade'' in the subsection heading.

SEC. 514. MAXIMUM PERIOD OF TEMPORARY FEDERAL RECOGNITION OF PERSON AS 
              ARMY NATIONAL GUARD OFFICER OR AIR NATIONAL GUARD 
              OFFICER.

    Section 308(a) of title 32, United States Code, is amended in the 
last sentence by striking ``six months'' and inserting ``one year''.

SEC. 515. ADVANCE NOTICE TO MEMBERS OF RESERVE COMPONENTS OF DEPLOYMENT 
              IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Advance Notice Required.--The Secretary of a military 
department shall ensure that a member of a reserve component under the 
jurisdiction of that Secretary who will be called or ordered to active 
duty for a period of more than 30 days in support of a contingency 
operation (as defined in section 101(a)(13) of title 10, United States 
Code) receives notice in advance of the mobilization date. In so far as 
is practicable, the notice shall be provided not less than 30 days 
before the mobilization date, but with a goal of 90 days before the 
mobilization date.
    (b) Reduction or Waiver of Notice Requirement.--The Secretary of 
Defense may waive the requirement of subsection (a), or authorize 
shorter notice than the minimum specified in such subsection, during a 
war or national emergency declared by the President or Congress or to 
meet mission requirements. If the waiver or reduction is made on 
account of mission requirements, the Secretary shall submit to Congress 
a report detailing the reasons for the waiver or reduction and the 
mission requirements at issue.

SEC. 516. REPORT ON RELIEF FROM PROFESSIONAL LICENSURE AND 
              CERTIFICATION REQUIREMENTS FOR RESERVE COMPONENT MEMBERS 
              ON LONG-TERM ACTIVE DUTY.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the requirements to maintain licensure or 
certification by members of the National Guard or other reserve 
components of the Armed Forces while on active duty for an extended 
period of time.
    (b) Elements of Study.--In the study, the Comptroller General 
shall--
        (1) identify the number and type of professional or other 
    licensure or certification requirements that may be adversely 
    impacted by extended periods of active duty; and
        (2) determine mechanisms that would provide relief from 
    professional or other licensure or certification requirements for 
    members of the reserve components while on active duty for an 
    extended period of time.
    (c) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committees on Armed Services of the Senate and House of Representative 
a report containing the results of the study and such recommendations 
as the Comptroller General considers appropriate to provide further 
relief for members of the reserve components from professional or other 
licensure or certification requirements while on active duty for an 
extended period of time.

                   Subtitle C--Education and Training

SEC. 521. REVISIONS TO AUTHORITY TO PAY TUITION FOR OFF-DUTY TRAINING 
              OR EDUCATION.

    (a) Inclusion of Coast Guard.--Subsection (a) of section 2007 of 
title 10, United States Code, is amended by striking ``Subject to 
subsection (b), the Secretary of a military department'' and inserting 
``Subject to subsections (b) and (c), the Secretary concerned''.
    (b) Commissioned Officers on Active Duty.--Subsection (b) of such 
section is amended--
        (1) in paragraph (1)--
            (A) by inserting after ``commissioned officer on active 
        duty'' the following: ``(other than a member of the Ready 
        Reserve)'';
            (B) by striking ``the Secretary of the military department 
        concerned'' and inserting ``the Secretary concerned''; and
            (C) by striking ``or full-time National Guard duty'' both 
        places it appears; and
        (2) in paragraph (2)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``the Secretary of the military department'' and inserting 
        ``the Secretary concerned'';
            (B) in subparagraph (B), by inserting after ``active duty 
        service'' the following: ``for which the officer was ordered to 
        active duty''; and
            (C) in subparagraph (C), by striking ``Secretary'' and 
        inserting ``Secretary concerned''.
    (c) Authority To Pay Tuition Assistance to Members of the Ready 
Reserve.--
        (1) Availability of assistance.--Subsection (c) of such section 
    is amended to read as follows:
    ``(c)(1) Subject to paragraphs (3) and (5), the Secretary concerned 
may pay the charges of an educational institution for the tuition or 
expenses described in subsection (a) of a member of the Selected 
Reserve.
    ``(2) Subject to paragraphs (4) and (5), the Secretary concerned 
may pay the charges of an educational institution for the tuition or 
expenses described in subsection (a) of a member of the Individual 
Ready Reserve who has a military occupational specialty designated by 
the Secretary concerned for purposes of this subsection.
    ``(3) The Secretary concerned may not pay charges under paragraph 
(1) for tuition or expenses of an officer of the Selected Reserve 
unless the officer enters into an agreement to remain a member of the 
Selected Reserve for at least 4 years after completion of the education 
or training for which the charges are paid.
    ``(4) The Secretary concerned may not pay charges under paragraph 
(2) for tuition or expenses of an officer of the Individual Ready 
Reserve unless the officer enters into an agreement to remain in the 
Selected Reserve or Individual Ready Reserve for at least 4 years after 
completion of the education or training for which the charges are paid.
    ``(5) The Secretary of a military department may require an 
enlisted member of the Selected Reserve or Individual Ready Reserve to 
enter into an agreement to serve for up to 4 years in the Selected 
Reserve or Individual Ready Reserve, as the case may be, after 
completion of the education or training for which tuition or expenses 
are paid under paragraph (1) or (2), as applicable.''.
        (2) Repeal of superseded provision.--Such section is further 
    amended--
            (A) by striking subsection (d); and
            (B) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
        (3) Repayment of unearned benefit.--Subsection (e) of such 
    section, as redesignated by paragraph (2) of this subsection, is 
    amended--
            (A) by inserting ``(1)'' after ``(e)''; and
            (B) by adding at the end the following new paragraph:
    ``(2) If a member of the Ready Reserve who enters into an agreement 
under subsection (c) does not complete the period of service specified 
in the agreement, the member shall be subject to the repayment 
provisions of section 303a(e) of title 37.''.
    (d) Regulations.--Such section is further amended by adding at the 
end the following new subsection:
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense or, with respect to the Coast 
Guard when it is not operating as a service in the Navy, the Secretary 
of Homeland Security.''.
    (e) Study.--
        (1) Study required.--The Secretary of Defense shall carry out a 
    study on the tuition assistance program carried out under section 
    2007 of title 10, United States Code. The study shall--
            (A) identify the number of members of the Armed Forces 
        eligible for assistance under the program, and the number who 
        actually receive the assistance;
            (B) assess the extent to which the program affects 
        retention rates; and
            (C) assess the extent to which State tuition assistance 
        programs affect retention rates in those States.
        (2) Report.--Not later than 9 months after the date of the 
    enactment of this Act, the Secretary shall submit to the Committee 
    on Armed Services of the Senate and the Committee on Armed Services 
    of the House of Representatives a report containing the results of 
    the study.

SEC. 522. REDUCTION OR ELIMINATION OF SERVICE OBLIGATION IN AN ARMY 
              RESERVE OR ARMY NATIONAL GUARD TROOP PROGRAM UNIT FOR 
              CERTAIN PERSONS SELECTED AS MEDICAL STUDENTS AT UNIFORMED 
              SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    Paragraph (3) of section 2107a(b) of title 10, United States Code, 
is amended to read as follows:
    ``(3)(A) Subject to subparagraph (C), in the case of a person 
described in subparagraph (B), the Secretary may, at any time and with 
the consent of the person, modify an agreement described in paragraph 
(1)(F) submitted by the person for the purpose of reducing or 
eliminating the troop program unit service obligation specified in the 
agreement and to establish, in lieu of that obligation, an active duty 
service obligation.
    ``(B) Subparagraph (A) applies with respect to the following 
persons:
        ``(i) A cadet under this section at a military junior college.
        ``(ii) A cadet or former cadet under this section who is 
    selected under section 2114 of this title to be a medical student 
    at the Uniformed Services University of the Health Sciences.
        ``(iii) A cadet or former cadet under this section who signs an 
    agreement under section 2122 of this title for participation in the 
    Armed Forces Health Professions Scholarship and Financial 
    Assistance program.
    ``(C) The modification of an agreement described in paragraph 
(1)(F) may be made only if the Secretary determines that it is in the 
best interests of the United States to do so.''.

SEC. 523. REPEAL OF ANNUAL LIMIT ON NUMBER OF ROTC SCHOLARSHIPS UNDER 
              ARMY RESERVE AND ARMY NATIONAL GUARD FINANCIAL ASSISTANCE 
              PROGRAM.

    Section 2107a(h) of title 10, United States Code, is amended by 
striking ``not more than 416 cadets each year under this section, to 
include'' and inserting ``each year under this section''.

SEC. 524. TREATMENT OF PRIOR ACTIVE SERVICE OF MEMBERS IN UNIFORMED 
              MEDICAL ACCESSION PROGRAMS.

    (a) Medical Students of USUHS.--
        (1) Treatment of students with prior active service.--Section 
    2114 of title 10, United States Code, is amended--
            (A) by redesignating subsections (c) through (h) as 
        subsections (d) through (i), respectively; and
            (B) in subsection (b)--
                (i) by inserting ``(1)'' after ``(b)''; and
                (ii) by inserting after the second sentence the 
            following new paragraph:
    ``(2) If a member of the uniformed services selected to be a 
student has prior active service in a pay grade and with years of 
service credited for pay that would entitle the member, if the member 
remained in the former grade, to a rate of basic pay in excess of the 
rate of basic pay for regular officers in the grade of second 
lieutenant or ensign, the member shall be paid basic pay based on the 
former grade and years of service credited for pay. The amount of such 
basic pay for the member shall be increased on January 1 of each year 
by the percentage by which basic pay is increased on average on that 
date for that year, and the member shall continue to receive basic pay 
based on the former grade and years of service until the date, whether 
occurring before or after graduation, on which the basic pay for the 
member in the member's actual grade and years of service credited for 
pay exceeds the amount of basic pay to which the member is entitled 
based on the member's former grade and years of service.''.
        (2) Conforming amendments.--Such section is further amended--
            (A) in subsection (b), by striking ``Upon graduation they'' 
        and inserting the following:
    ``(c) Medical students who graduate''; and
            (B) in subsection (i), as redesignated by paragraph (1), by 
        striking ``subsection (b)'' and inserting ``subsection (c)''.
    (b) Participants in Health Professions Scholarship and Financial 
Assistance Program.--Section 2121(c) of such title is amended--
        (1) by inserting ``(1)'' after ``(c)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) If a member of the uniformed services selected to participate 
in the program as a medical student has prior active service in a pay 
grade and with years of service credited for pay that would entitle the 
member, if the member remained in the former grade, to a rate of basic 
pay in excess of the rate of basic pay for regular officers in the 
grade of second lieutenant or ensign, the member shall be paid basic 
pay based on the former grade and years of service credited for pay. 
The amount of such basic pay for the member shall be increased on 
January 1 of each year by the percentage by which basic pay is 
increased on average on that date for that year, and the member shall 
continue to receive basic pay based on the former grade and years of 
service until the date, whether occurring before or after the 
conclusion of such participation, on which the basic pay for the member 
in the member's actual grade and years of service credited for pay 
exceeds the amount of basic pay to which the member is entitled based 
on the member's former grade and years of service.''.
    (c) Officers Detailed as Students at Medical Schools.--
        (1) Appointment and treatment of prior active service.--Section 
    2004a of such title is amended--
            (A) by redesignating subsections (e) through (h) as 
        subsections (f) through (i), respectively; and
            (B) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Appointment and Treatment of Prior Active Service.--(1) A 
commissioned officer detailed as a student at a medical school under 
subsection (a) shall be appointed as a regular officer in the grade of 
second lieutenant or ensign and shall serve on active duty in that 
grade with full pay and allowances of that grade.
    ``(2) If an officer detailed to be a medical student has prior 
active service in a pay grade and with years of service credited for 
pay that would entitle the officer, if the officer remained in the 
former grade, to a rate of basic pay in excess of the rate of basic pay 
for regular officers in the grade of second lieutenant or ensign, the 
officer shall be paid basic pay based on the former grade and years of 
service credited for pay. The amount of such basic pay for the officer 
shall be increased on January 1 of each year by the percentage by which 
basic pay is increased on average on that date for that year, and the 
officer shall continue to receive basic pay based on the former grade 
and years of service until the date, whether occurring before or after 
graduation, on which the basic pay for the officer in the officer's 
actual grade and years of service credited for pay exceeds the amount 
of basic pay to which the officer is entitled based on the officer's 
former grade and years of service.''.
        (2) Technical amendment.--Subsection (c) of such section is 
    amended by striking ``subsection (c)'' and inserting ``subsection 
    (b)''.

SEC. 525. REPEAL OF POST-2007-2008 ACADEMIC YEAR PROHIBITION ON PHASED 
              INCREASE IN CADET STRENGTH LIMIT AT THE UNITED STATES 
              MILITARY ACADEMY.

    Section 4342(j)(1) of title 10, United States Code, is amended by 
striking the last sentence.

SEC. 526. NATIONAL DEFENSE UNIVERSITY MASTER'S DEGREE PROGRAMS.

    (a) Master of Arts Program Authorized.--Section 2163 of title 10, 
United States Code, is amended--
        (1) in subsection (a), by inserting ``or master of arts'' after 
    ``master of science''; and
        (2) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(4) Master of arts in strategic security studies.--The degree 
    of master of arts in strategic security studies, to graduates of 
    the University who fulfill the requirements of the program at the 
    School for National Security Executive Education.''.
    (b) Clerical Amendments.--
        (1) Section heading.--The heading of such section is amended to 
    read as follows:

``Sec. 2163. National Defense University: master's degree programs''.

        (2) Table of contents.--The table of sections at the beginning 
    of chapter 108 of such title is amended by striking the item 
    relating to section 2163 and inserting the following new item:

``2163. National Defense University: master's degree programs.''.

    (c) Applicability to 2006-2007 Graduates.--Paragraph (4) of section 
2163(b) of title 10, United States Code, as added by subsection (a) of 
this section, applies with respect to any person who becomes a graduate 
of the National Defense University on or after September 6, 2006, and 
fulfills the requirements of the program referred to in such paragraph 
(4).

SEC. 527. AUTHORITY OF THE AIR UNIVERSITY TO CONFER DEGREE OF MASTER OF 
              SCIENCE IN FLIGHT TEST ENGINEERING.

    Section 9317(a) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (4) as paragraph (5); and
        (2) by inserting after paragraph (3) the following new 
    paragraph:
        ``(4) The degree of master of science in flight test 
    engineering upon graduates of the Air Force Test Pilot School who 
    fulfill the requirements for that degree in a manner consistent 
    with the recommendations of the Department of Education and the 
    principles of the regional accrediting body for the Air 
    University.''.

SEC. 528. ENHANCEMENT OF EDUCATION BENEFITS FOR CERTAIN MEMBERS OF 
              RESERVE COMPONENTS.

    (a) Accelerated Payment of Educational Assistance for Members of 
the Selected Reserve.--
        (1) In general.--Chapter 1606 of title 10, United States Code, 
    is amended by inserting after section 16131 the following new 
    section:

``Sec. 16131a. Accelerated payment of educational assistance

    ``(a) The educational assistance allowance payable under section 
16131 of this title with respect to an eligible person described in 
subsection (b) may, upon the election of such eligible person, be paid 
on an accelerated basis in accordance with this section.
    ``(b) An eligible person described in this subsection is a person 
entitled to educational assistance under this chapter who is--
        ``(1) enrolled in an approved program of education not 
    exceeding two years in duration and not leading to an associate, 
    bachelors, masters, or other degree, subject to subsection (g); and
        ``(2) charged tuition and fees for the program of education 
    that, when divided by the number of months (and fractions thereof) 
    in the enrollment period, exceeds the amount equal to 200 percent 
    of the monthly rate of educational assistance allowance otherwise 
    payable with respect to the person under section 16131 of this 
    title.
    ``(c)(1) The amount of the accelerated payment of educational 
assistance payable with respect to an eligible person making an 
election under subsection (a) for a program of education shall be the 
lesser of--
        ``(A) the amount equal to 60 percent of the established charges 
    for the program of education; or
        ``(B) the aggregate amount of educational assistance allowance 
    to which the person remains entitled under this chapter at the time 
    of the payment.
    ``(2)(A) In this subsection, except as provided in subparagraph 
(B), the term `established charges', in the case of a program of 
education, means the actual charges (as determined pursuant to 
regulations prescribed by the Secretary of Veterans Affairs) for 
tuition and fees which similarly circumstanced individuals who are not 
eligible for benefits under this chapter and who are enrolled in the 
program of education would be required to pay. Established charges 
shall be determined on the following basis:
        ``(i) In the case of an individual enrolled in a program of 
    education offered on a term, quarter, or semester basis, the 
    tuition and fees charged the individual for the term, quarter, or 
    semester.
        ``(ii) In the case of an individual enrolled in a program of 
    education not offered on a term, quarter, or semester basis, the 
    tuition and fees charged the individual for the entire program of 
    education.
    ``(B) In this subsection, the term `established charges' does not 
include any fees or payments attributable to the purchase of a vehicle.
    ``(3) The educational institution providing the program of 
education for which an accelerated payment of educational assistance 
allowance is elected by an eligible person under subsection (a) shall 
certify to the Secretary of Veterans Affairs the amount of the 
established charges for the program of education.
    ``(d) An accelerated payment of educational assistance allowance 
made with respect to an eligible person under this section for a 
program of education shall be made not later than the last day of the 
month immediately following the month in which the Secretary of 
Veterans Affairs receives a certification from the educational 
institution regarding--
        ``(1) the person's enrollment in and pursuit of the program of 
    education; and
        ``(2) the amount of the established charges for the program of 
    education.
    ``(e)(1) Except as provided in paragraph (2), for each accelerated 
payment of educational assistance allowance made with respect to an 
eligible person under this section, the person's entitlement to 
educational assistance under this chapter shall be charged the number 
of months (and any fraction thereof) determined by dividing the amount 
of the accelerated payment by the full-time monthly rate of educational 
assistance allowance otherwise payable with respect to the person under 
section 16131 of this title as of the beginning date of the enrollment 
period for the program of education for which the accelerated payment 
is made.
    ``(2) If the monthly rate of educational assistance allowance 
otherwise payable with respect to an eligible person under section 
16131 of this title increases during the enrollment period of a program 
of education for which an accelerated payment of educational assistance 
allowance is made under this section, the charge to the person's 
entitlement to educational assistance under this chapter shall be 
determined by prorating the entitlement chargeable, in the manner 
provided for under paragraph (1), for the periods covered by the 
initial rate and increased rate, respectively, in accordance with 
regulations prescribed by the Secretary of Veterans Affairs.
    ``(f) The Secretary of Veterans Affairs shall prescribe regulations 
to carry out this section. The regulations shall include requirements, 
conditions, and methods for the request, issuance, delivery, 
certification of receipt and use, and recovery of overpayment of an 
accelerated payment of educational assistance allowance under this 
section. The regulations may include such elements of the regulations 
prescribed under section 3014A of title 38 as the Secretary of Veterans 
Affairs considers appropriate for purposes of this section.
    ``(g) The aggregate amount of educational assistance payable under 
this section in any fiscal year for enrollments covered by subsection 
(b)(1) may not exceed $4,000,000.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 1606 of such title is amended by inserting after the 
    item relating to section 16131 the following new item:

``16131a. Accelerated payment of educational assistance.''.

        (3) Effective date.--The amendments made by this subsection 
    shall take effect on October 1, 2008, and shall only apply to 
    initial enrollments in approved programs of education after such 
    date.
    (b) Accelerated Payment of Educational Assistance for Reserve 
Component Members Supporting Contingency Operations and Other 
Operations.--
        (1) In general.--Chapter 1607 of title 10, United States Code, 
    is amended by inserting after section 16162 the following new 
    section:

``Sec. 16162a. Accelerated payment of educational assistance

    ``(a) Payment on Accelerated Basis.--The educational assistance 
allowance payable under section 16162 of this title with respect to an 
eligible member described in subsection (b) may, upon the election of 
such eligible member, be paid on an accelerated basis in accordance 
with this section.
    ``(b) Eligible Members.--An eligible member described in this 
subsection is a member of a reserve component entitled to educational 
assistance under this chapter who is--
        ``(1) enrolled in an approved program of education not 
    exceeding two years in duration and not leading to an associate, 
    bachelors, masters, or other degree, subject to subsection (g); and
        ``(2) charged tuition and fees for the program of education 
    that, when divided by the number of months (and fractions thereof) 
    in the enrollment period, exceeds the amount equal to 200 percent 
    of the monthly rate of educational assistance allowance otherwise 
    payable with respect to the member under section 16162 of this 
    title.
    ``(c) Amount of Accelerated Payment.--(1) The amount of the 
accelerated payment of educational assistance payable with respect to 
an eligible member making an election under subsection (a) for a 
program of education shall be the lesser of--
        ``(A) the amount equal to 60 percent of the established charges 
    for the program of education; or
        ``(B) the aggregate amount of educational assistance allowance 
    to which the member remains entitled under this chapter at the time 
    of the payment.
    ``(2)(A) In this subsection, except as provided in subparagraph 
(B), the term `established charges', in the case of a program of 
education, means the actual charges (as determined pursuant to 
regulations prescribed by the Secretary of Veterans Affairs) for 
tuition and fees which similarly circumstanced individuals who are not 
eligible for benefits under this chapter and who are enrolled in the 
program of education would be required to pay. Established charges 
shall be determined on the following basis:
        ``(i) In the case of an individual enrolled in a program of 
    education offered on a term, quarter, or semester basis, the 
    tuition and fees charged the individual for the term, quarter, or 
    semester.
        ``(ii) In the case of an individual enrolled in a program of 
    education not offered on a term, quarter, or semester basis, the 
    tuition and fees charged the individual for the entire program of 
    education.
    ``(B) In this subsection, the term `established charges' does not 
include any fees or payments attributable to the purchase of a vehicle.
    ``(3) The educational institution providing the program of 
education for which an accelerated payment of educational assistance 
allowance is elected by an eligible member under subsection (a) shall 
certify to the Secretary of Veterans Affairs the amount of the 
established charges for the program of education.
    ``(d) Time of Payment.--An accelerated payment of educational 
assistance allowance made with respect to an eligible member under this 
section for a program of education shall be made not later than the 
last day of the month immediately following the month in which the 
Secretary of Veterans Affairs receives a certification from the 
educational institution regarding--
        ``(1) the member's enrollment in and pursuit of the program of 
    education; and
        ``(2) the amount of the established charges for the program of 
    education.
    ``(e) Charge Against Entitlement.--(1) Except as provided in 
paragraph (2), for each accelerated payment of educational assistance 
allowance made with respect to an eligible member under this section, 
the member's entitlement to educational assistance under this chapter 
shall be charged the number of months (and any fraction thereof) 
determined by dividing the amount of the accelerated payment by the 
full-time monthly rate of educational assistance allowance otherwise 
payable with respect to the member under section 16162 of this title as 
of the beginning date of the enrollment period for the program of 
education for which the accelerated payment is made.
    ``(2) If the monthly rate of educational assistance allowance 
otherwise payable with respect to an eligible member under section 
16162 of this title increases during the enrollment period of a program 
of education for which an accelerated payment of educational assistance 
allowance is made under this section, the charge to the member's 
entitlement to educational assistance under this chapter shall be 
determined by prorating the entitlement chargeable, in the manner 
provided for under paragraph (1), for the periods covered by the 
initial rate and increased rate, respectively, in accordance with 
regulations prescribed by the Secretary of Veterans Affairs.
    ``(f) Regulations.--The Secretary of Veterans Affairs shall 
prescribe regulations to carry out this section. The regulations shall 
include requirements, conditions, and methods for the request, 
issuance, delivery, certification of receipt and use, and recovery of 
overpayment of an accelerated payment of educational assistance 
allowance under this section. The regulations may include such elements 
of the regulations prescribed under section 3014A of title 38 as the 
Secretary of Veterans Affairs considers appropriate for purposes of 
this section.
    ``(g) Limitation.--The aggregate amount of educational assistance 
payable under this section in any fiscal year for enrollments covered 
by subsection (b)(1) may not exceed $3,000,000.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 1607 of such title is amended by inserting after the 
    item relating to section 16162 the following new item:

``16162a. Accelerated payment of educational assistance.''.

        (3) Effective date.--The amendments made by this subsection 
    shall take effect on October 1, 2008, and shall only apply to 
    initial enrollments in approved programs of education after such 
    date.
    (c) Enhancement of Educational Assistance for Reserve Component 
Members Supporting Contingency Operations and Other Operations.--
        (1) Assistance for three years cumulative service.--Subsection 
    (c)(4)(C) of section 16162 of title 10, United States Code, is 
    amended by striking ``for two continuous years or more.'' and 
    inserting ``for--
            ``(i) two continuous years or more; or
            ``(ii) an aggregate of three years or more.''.
        (2) Contributions for increased amount of educational 
    assistance.--Such section is further amended by adding at the end 
    the following new subsection:
    ``(f) Contributions for Increased Amount of Educational 
Assistance.--(1)(A) Any individual eligible for educational assistance 
under this section may contribute amounts for purposes of receiving an 
increased amount of educational assistance as provided for in paragraph 
(2).
    ``(B) An individual covered by subparagraph (A) may make the 
contributions authorized by that subparagraph at any time while a 
member of a reserve component, but not more frequently than monthly.
    ``(C) The total amount of the contributions made by an individual 
under subparagraph (A) may not exceed $600. Such contributions shall be 
made in multiples of $20.
    ``(D) Contributions under this subsection shall be made to the 
Secretary concerned. Such Secretary shall deposit any amounts received 
as contributions under this subsection into the Treasury as 
miscellaneous receipts.
    ``(2) Effective as of the first day of the enrollment period 
following the enrollment period in which an individual makes 
contributions under paragraph (1), the monthly amount of educational 
assistance allowance applicable to such individual under this section 
shall be the monthly rate otherwise provided for under subsection (c) 
increased by--
        ``(A) an amount equal to $5 for each $20 contributed by such 
    individual under paragraph (1) for an approved program of education 
    pursued on a full-time basis; or
        ``(B) an appropriately reduced amount based on the amount so 
    contributed as determined under regulations that the Secretary of 
    Veterans Affairs shall prescribe, for an approved program of 
    education pursued on less than a full-time basis.''.

SEC. 529. EXTENSION OF PERIOD OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE 
              FOR CERTAIN MEMBERS OF THE SELECTED RESERVE AFFECTED BY 
              FORCE SHAPING INITIATIVES.

    Section 16133(b)(1)(B) of title 10, United States Code, is amended 
by inserting ``or the period beginning on October 1, 2007, and ending 
on September 30, 2014,'' after ``December 31, 2001,''.

SEC. 530. TIME LIMIT FOR USE OF EDUCATIONAL ASSISTANCE BENEFIT FOR 
              CERTAIN MEMBERS OF RESERVE COMPONENTS AND RESUMPTION OF 
              BENEFIT.

    (a) Modification of Time Limit for Use of Benefit.--
        (1) Modification.--Section 16164(a) of title 10, United States 
    Code, is amended by striking ``this chapter while serving--'' and 
    all that follows and inserting ``this chapter--
        ``(1) while the member is serving--
            ``(A) in the Selected Reserve of the Ready Reserve, in the 
        case of a member called or ordered to active service while 
        serving in the Selected Reserve; or
            ``(B) in the Ready Reserve, in the case of a member ordered 
        to active duty while serving in the Ready Reserve (other than 
        the Selected Reserve); and
        ``(2) in the case of a person who separates from the Selected 
    Reserve of the Ready Reserve after completion of a period of active 
    service described in section 16163 of this title and completion of 
    a service contract under other than dishonorable conditions, during 
    the 10-year period beginning on the date on which the person 
    separates from the Selected Reserve.''.
        (2) Conforming amendment.--Paragraph (2) of section 16165(a) of 
    such title is amended to read as follows:
        ``(2) when the member separates from the Ready Reserve as 
    provided in section 16164(a)(1) of this title, or upon completion 
    of the period provided for in section 16164(a)(2) of this title, as 
    applicable.''.
    (b) Reclaiming Benefit for Members Reentering Service.--Section 
16165(b) of such title is amended by striking ``of not more than 90 
days'' after ``who incurs a break in service in the Selected Reserve''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of October 28, 2004, as if included in the enactment of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375), to which such amendments relate.

SEC. 531. SECRETARY OF DEFENSE EVALUATION OF THE ADEQUACY OF THE 
              DEGREE-GRANTING AUTHORITIES OF CERTAIN MILITARY 
              UNIVERSITIES AND EDUCATIONAL INSTITUTIONS.

    (a) Evaluation Required.--The Secretary of Defense shall carry out 
an evaluation of the degree-granting authorities provided by title 10, 
United States Code, to the academic institutions specified in 
subsection (b). The evaluation shall assess whether the current 
process, under which each degree conferred by each institution must 
have a statutory authorization, remains adequate, appropriate, and 
responsive enough to meet emerging military service education 
requirements.
    (b) Specified Institutions.--The academic institutions covered by 
subsection (a) are the following:
        (1) The National Defense University.
        (2) The Army War College and the United States Army Command and 
    General Staff College.
        (3) The United States Naval War College.
        (4) The United States Naval Postgraduate School.
        (5) Air University and the United States Air Force Institute of 
    Technology.
        (6) The Marine Corps University.
    (c) Report.--Not later than April 1, 2008, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the evaluation. The report shall include the results of the evaluation 
and any recommendations for changes to policy or law that the Secretary 
considers appropriate.

SEC. 532. REPORT ON SUCCESS OF ARMY NATIONAL GUARD AND RESERVE SENIOR 
              RESERVE OFFICERS' TRAINING CORPS FINANCIAL ASSISTANCE 
              PROGRAM.

    (a) Report Required.--Not later than 150 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the success of the financial assistance 
program of the Senior Reserve Officers' Training Corps under section 
2107a of title 10, United States Code, in securing the appointment of 
second lieutenants in the Army Reserve and Army National Guard. The 
report shall include detailed information on the appointment of cadets 
under the financial assistance program who are enrolled in an 
educational institution described in subsection (b) and address the 
efforts of the Secretary to increase awareness of the availability and 
advantages of appointment in the Senior Reserve Officers' Training 
Corps at these institutions and to increase the number of cadets at 
these institutions.
    (b) Covered Educational Institutions.--The educational institutions 
referred to in subsection (a) are the following:
        (1) An historically Black college or university that is a part 
    B institution, as defined in section 322(2) of the Higher Education 
    Act of 1965 (20 U.S.C. 1061(2)).
        (2) A minority institution, as defined in section 365(3) of 
    that Act (20 U.S.C. 1067k(3)).
        (3) An Hispanic-serving institution, as defined in section 
    502(a)(5) of that Act (20 U.S.C. 1101a(a)(5)).

SEC. 533. REPORT ON UTILIZATION OF TUITION ASSISTANCE BY MEMBERS OF THE 
              ARMED FORCES.

    (a) Reports Required.--Not later than April 1, 2008, the Secretary 
of each military department shall submit to the congressional defense 
committees a report on the utilization of tuition assistance by members 
of the Armed Forces, whether in the regular components of the Armed 
Forces or the reserve components of the Armed Forces, under the 
jurisdiction of such military department during fiscal year 2007.
    (b) Elements.--The report with respect to a military department 
under subsection (a) shall include the following:
        (1) Information on the policies of such military department for 
    fiscal year 2007 regarding utilization of, and limits on, tuition 
    assistance by members of the Armed Forces under the jurisdiction of 
    such military department, including an estimate of the number of 
    members of the reserve components of the Armed Forces under the 
    jurisdiction of such military department whose requests for tuition 
    assistance during that fiscal year were unfunded.
        (2) Information on the policies of such military department for 
    fiscal year 2007 regarding funding of tuition assistance for each 
    of the regular components of the Armed Forces and each of the 
    reserve components of the Armed Forces under the jurisdiction of 
    such military department.

SEC. 534. NAVY JUNIOR RESERVE OFFICERS' TRAINING CORPS UNIT FOR 
              SOUTHOLD, MATTITUCK, AND GREENPORT HIGH SCHOOLS.

    For purposes of meeting the requirements of section 2031(b) of 
title 10, United States Code, the Secretary of the Navy may and, to the 
extent the schools request, shall treat any two or more of the 
following schools (all in Southold, Suffolk County, New York) as a 
single institution:
        (1) Southold High School.
        (2) Mattituck High School.
        (3) Greenport High School.

SEC. 535. REPORT ON TRANSFER OF ADMINISTRATION OF CERTAIN EDUCATIONAL 
              ASSISTANCE PROGRAMS FOR MEMBERS OF THE RESERVE 
              COMPONENTS.

    (a) Report Required.--Not later than September 1, 2008, the 
Secretary of Defense, in cooperation with the Secretary of Veterans 
Affairs, shall submit to the congressional defense committees and the 
Committees on Veterans Affairs of the Senate and House of 
Representatives a report on the feasibility and merits of transferring 
the administration of the educational assistance programs for members 
of the reserve components contained in chapters 1606 and 1607 of title 
10, United States Code, from the Department of Defense to the 
Department of Veterans Affairs.
    (b) Elements of Report.--The report shall specifically address the 
following:
        (1) A discussion of the history and purpose of the educational 
    assistance benefits under chapters 1606 and 1607 of title 10, 
    United States Code, and the data most recently available, as of the 
    date of the enactment of this Act, relating to the cost of 
    providing such benefits and the projected costs of providing such 
    benefits over the ten-year period beginning on the such date.
        (2) The effect of a transfer of administrative jurisdiction on 
    the delivery of educational assistance benefits to members of the 
    reserve components.
        (3) The effect of a transfer of administrative jurisdiction on 
    Department of Defense efforts relating to recruiting, retention, 
    and compensation, including bonuses, special pays, and incentive 
    pays.
        (4) The extent to which educational assistance benefits 
    influence the decision of a person to join a reserve component.
        (5) The extent to which the educational assistance benefits 
    available under chapter 1606 of title 10, United States Code, 
    affect retention rates, including statistics showing how many 
    members remain in the reserve components in order to continue to 
    receive education benefits under such chapter.
        (6) The extent to which the educational assistance benefits 
    available under chapter 1607 of title 10, United States Code, 
    affect retention rates, including statistics showing how many 
    members remain in the reserve components in order to continue to 
    receive education benefits under such chapter.
        (7) The practical and budgetary issues involved in a transfer 
    of administrative jurisdiction, including a discussion of the cost 
    of equating the educational assistance benefits for members of the 
    active and reserve components.
        (8) Any recommendations of the Secretary for legislation to 
    enhance or improve the delivery of educational assistance benefits 
    for members of the reserve components.
        (9) The feasibility and likely effects of transferring the 
    administration of the educational assistance programs for members 
    of the reserve components contained in chapters 1606 and 1607 of 
    title 10, United States Code, from the Department of Defense to the 
    Department of Veterans Affairs through the recodification of such 
    chapters in title 38, United States Code, as proposed in section 
    525 of H.R. 1585 of the 110th Congress, as passed by the House of 
    Representatives, together with any recommendations of the Secretary 
    for improving that section.
        (10) A discussion of the effects and impact of the amendments 
    to chapter 1607 of title 10, United States Code, made by section 
    530 of this Act, relating to the extension of the time limit for 
    the use of educational assistance benefits under that chapter.
    (c) Reviews of Report.--Before submission of the report to 
Congress, the Secretary of Defense shall secure the review of the 
report by the Defense Business Board, in cooperation with the Reserve 
Forces Policy Board. The Secretary of Veterans Affairs shall secure the 
review of the report by the Veterans Affairs Advisory Committee on 
Education. The results of such reviews shall be included as an appendix 
to the report.
    (d) Comptroller General Review.--Not later than November 1, 2008, 
the Comptroller General shall submit to the congressional committees 
referred to in subsection (a) an assessment of the report, including a 
review of the costs inherent in the transfer of administrative 
jurisdiction and the recruiting and retention data and other 
assumptions used by the Secretary of Defense in preparing the report. 
As part of the assessment, the Comptroller General shall solicit 
responses from the Secretary of Defense and the Secretary of Veterans 
Affairs.

       Subtitle D--Military Justice and Legal Assistance Matters

SEC. 541. AUTHORITY TO DESIGNATE CIVILIAN EMPLOYEES OF THE FEDERAL 
              GOVERNMENT AND DEPENDENTS OF DECEASED MEMBERS AS ELIGIBLE 
              FOR LEGAL ASSISTANCE FROM DEPARTMENT OF DEFENSE LEGAL 
              STAFF RESOURCES.

    Section 1044(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraphs:
        ``(6) Survivors of a deceased member or former member described 
    in paragraphs (1), (2), (3), and (4) who were dependents of the 
    member or former member at the time of the death of the member or 
    former member, except that the eligibility of such survivors shall 
    be determined pursuant to regulations prescribed by the Secretary 
    concerned.
        ``(7) Civilian employees of the Federal Government serving in 
    locations where legal assistance from non-military legal assistance 
    providers is not reasonably available, except that the eligibility 
    of civilian employees shall be determined pursuant to regulations 
    prescribed by the Secretary concerned.''.

SEC. 542. AUTHORITY OF JUDGES OF THE UNITED STATES COURT OF APPEALS FOR 
              THE ARMED FORCES TO ADMINISTER OATHS.

    Section 936 of title 10, United States Code (article 136 of the 
Uniform Code of Military Justice), is amended by adding at the end the 
following new subsection:
    ``(c) The judges of the United States Court of Appeals for the 
Armed Forces may administer the oaths authorized by subsections (a) and 
(b).''.

SEC. 543. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF THE JUDGE 
              ADVOCATE GENERALS' CORPS.

    (a) Department of the Army.--
        (1) Grade of judge advocate general.--Subsection (a) of section 
    3037 of title 10, United States Code, is amended by striking the 
    third sentence and inserting the following new sentence: ``The 
    Judge Advocate General, while so serving, has the grade of 
    lieutenant general.''.
        (2) Redesignation of assistant judge advocate general as deputy 
    judge advocate general.--Such section is further amended--
            (A) in subsection (a), by striking ``Assistant Judge 
        Advocate General'' each place it appears and inserting ``Deputy 
        Judge Advocate General''; and
            (B) in subsection (d), by striking ``Assistant Judge 
        Advocate General'' and inserting ``Deputy Judge Advocate 
        General''.
        (3) Clerical amendments.--(A) The heading of such section is 
    amended to read as follows:

``Sec. 3037. Judge Advocate General, Deputy Judge Advocate General, and 
            general officers of Judge Advocate General's Corps: 
            appointment; duties''.

        (B) The table of sections at the beginning of chapter 305 of 
    such title is amended by striking the item relating to section 3037 
    and inserting the following new item:

``3037. Judge Advocate General, Deputy Judge Advocate General, and 
          general officers of Judge Advocate General's Corps: 
          appointment; duties.''.

    (b) Grade of Judge Advocate General of the Navy.--Section 5148(b) 
of such title is amended by striking the last sentence and inserting 
the following new sentence: ``The Judge Advocate General, while so 
serving, has the grade of vice admiral or lieutenant general, as 
appropriate.''.
    (c) Grade of Judge Advocate General of the Air Force.--Section 
8037(a) of such title is amended by striking the last sentence and 
inserting the following new sentence: ``The Judge Advocate General, 
while so serving, has the grade of lieutenant general.''.
    (d) Increase in Number of Officers Serving in Grades Above Major 
General and Rear Admiral.--Section 525(b) of such title is amended in 
paragraphs (1) and (2)(A) by striking ``15.7 percent'' each place it 
appears and inserting ``16.3 percent''.
    (e) Legal Counsel to Chairman of the Joint Chiefs of Staff.--
        (1) In general.--Chapter 5 of title 10, United States Code, is 
    amended by adding at the end the following new section:

``Sec. 156. Legal Counsel to the Chairman of the Joint Chiefs of Staff

    ``(a) In General.--There is a Legal Counsel to the Chairman of the 
Joint Chiefs of Staff.
    ``(b) Selection for Appointment.--Under regulations prescribed by 
the Secretary of Defense, the officer selected for appointment to serve 
as Legal Counsel to the Chairman of the Joint Chiefs of Staff shall be 
recommended by a board of officers convened by the Secretary of Defense 
that, insofar as practicable, is subject to the procedures applicable 
to selection boards convened under chapter 36 of this title.
    ``(c) Grade.--An officer appointed to serve as Legal Counsel to the 
Chairman of the Joint Chiefs of Staff shall, while so serving, hold the 
grade of brigadier general or rear admiral (lower half).
    ``(d) Duties.--The Legal Counsel of the Chairman of the Joint 
Chiefs of Staff shall perform such legal duties in support of the 
responsibilities of the Chairman of the Joint Chiefs of Staff as the 
Chairman may prescribe.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 5 of such title is amended by adding at the end the 
    following new item:

``156. Legal Counsel to the Chairman of the Joint Chiefs of Staff''.

    (f) Strategic Plan to Link General and Flag Officer Numbers, 
Assignments, and Development to the Missions and Requirements of the 
Department of Defense.--
        (1) Strategic plan required.--The Secretary of Defense shall 
    develop a strategic plan linking the missions and requirements of 
    the Department of Defense for general and flag officers to the 
    statutory limits on the numbers of general and flag officers, and 
    current assignment, promotion, and joint officer development 
    policies for general and flag officers.
        (2) Advice of chairman of joint chiefs of staff.--The Secretary 
    shall develop the strategic plan required under paragraph (1) with 
    the advice of the Chairman of the Joint Chiefs of Staff.
        (3) Matters to be included.--The strategic plan required under 
    paragraph (1) shall include the following:
            (A) A description of the process for identification of the 
        present and emerging requirements for general and flag officers 
        and recommendations for meeting these requirements.
            (B) Identification of the numbers of general and flag 
        officers by service, grade, and qualifications currently 
        available compared with the numbers needed to meet existing 
        statutory requirements in support of the overall missions of 
        the Department of Defense.
            (C) An assessment of the problems or issues (and proposed 
        solutions for any such problems or issues) arising from 
        existing numerical limitations on the number and grade 
        distribution of active and reserve component general and flag 
        officers under sections 525, 526, and 12004 of title 10, United 
        States Code.
            (D) A discussion of how wartime requirements for additional 
        general or flag officers have been addressed in support of 
        Operation Enduring Freedom and Operation Iraqi Freedom, 
        including the usage of wartime or national emergency 
        authorities.
            (E) An assessment of any problems or issues (and proposed 
        solutions for any such problems or issues) arising from 
        existing statutory provisions regarding general and flag 
        officer assignments and grade requirements and the need, if 
        any, for revision of provisions in title 10, United States 
        Code, specific to individual general and flag officer positions 
        along with recommendations to mitigate the need for routine 
        legislative intervention as positions change to support 
        organizational demands.
            (F) An assessment of the use currently being made of 
        reserve component flag and general officers and discussion of 
        barriers to the qualification, selection, and assignment of 
        National Guard and Reserve officers for the broadest possible 
        range of positions of importance and responsibility.
        (4) Deadline for submission.--The Secretary shall submit the 
    plan required under paragraph (1) to the Committees on Armed 
    Services of the Senate and the House of Representatives not later 
    than March 1, 2009.

SEC. 544. PROHIBITION AGAINST MEMBERS OF THE ARMED FORCES PARTICIPATING 
              IN CRIMINAL STREET GANGS.

    The Secretary of Defense shall prescribe regulations to prohibit 
the active participation by members of the Armed Forces in a criminal 
street gang.

                       Subtitle E--Military Leave

SEC. 551. TEMPORARY ENHANCEMENT OF CARRYOVER OF ACCUMULATED LEAVE FOR 
              MEMBERS OF THE ARMED FORCES.

    (a) Temporary Increase in Accumulated Leave Carryover Amount.--
Section 701 of title 10, United States Code, is amended--
        (1) in subsection (b), by striking ``subsection (f) and 
    subsection (g)'' and inserting ``subsections (d), (f), and (g)''; 
    and
        (2) by inserting after subsection (c) the following new 
    subsection:
    ``(d) Notwithstanding subsection (b), during the period beginning 
on October 1, 2008, through December 31, 2010, a member may accumulate 
up to 75 days of leave.''.
    (b) Conforming Amendments Related to High Deployment Members.--
Subsection (f) of such section is amended--
        (1) in paragraph (1)(A), by striking ``any accumulated leave in 
    excess of 60 days at the end of the fiscal year'' and inserting 
    ``at the end of the fiscal year any accumulated leave in excess of 
    the number of days of leave authorized to be accumulated under 
    subsection (b) or (d)'';
        (2) in paragraph (1)(C)--
            (A) by striking ``60 days'' and inserting ``the days of 
        leave authorized to be accumulated under subsection (b) or (d) 
        that are''; and
            (B) by inserting ``(or fourth fiscal year, if accumulated 
        while subsection (d) is in effect)'' after ``third fiscal 
        year''; and
        (3) in paragraph (2), by striking ``except for this paragraph--
    '' and all that follows through the end of the paragraph and 
    inserting ``except for this paragraph, would lose at the end of 
    that fiscal year any accumulated leave in excess of the number of 
    days of leave authorized to be accumulated under subsection (b) or 
    (d), shall be permitted to retain such leave until the end of the 
    second fiscal year after the fiscal year in which such service on 
    active duty is terminated.''.
    (c) Conforming Amendment Related to Members in Missing Status.--
Subsection (g) of such section is amended by striking ``60-day 
limitation in subsection (b) and the 90-day limitation in subsection 
(f)'' and inserting ``limitations in subsections (b), (d), and (f)''.
    (d) Pay.--Section 501(b) of title 37, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(6) An enlisted member of the armed forces who would lose 
accumulated leave in excess of 120 days of leave under section 
701(f)(1) of title 10 may elect to be paid in cash or by a check on the 
Treasurer of the United States for any leave in excess so accumulated 
for up to 30 days of such leave. A member may make an election under 
this paragraph only once.''.

SEC. 552. ENHANCEMENT OF REST AND RECUPERATION LEAVE.

    Section 705(b)(2) of title 10, United States Code, is amended by 
inserting ``for members whose qualifying tour of duty is 12 months or 
less, or for not more than 20 days for members whose qualifying tour of 
duty is longer than 12 months,'' after ``for not more than 15 days''.

                   Subtitle F--Decorations and Awards

SEC. 561. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              LESLIE H. SABO, JR., FOR ACTS OF VALOR DURING THE VIETNAM 
              WAR.

    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the President is authorized and 
requested to award the Medal of Honor under section 3741 of such title 
to Leslie H. Sabo, Jr., for the acts of valor during the Vietnam War 
described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Leslie H. Sabo, Jr., on May 10, 1970, 
as a member of the United States Army serving in the grade of 
Specialist Four in the Republic of Vietnam with Company B of the 3d 
Battalion, 506th Infantry Regiment, 101st Airborne Division.

SEC. 562. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              HENRY SVEHLA FOR ACTS OF VALOR DURING THE KOREAN WAR.

    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the President is authorized and 
requested to award the Medal of Honor under section 3741 of such title 
to Henry Svehla for the acts of valor described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Henry Svehla on June 12, 1952, as a 
member of the United States Army serving in the grade of Private First 
Class in Korea with Company F of the 32d Infantry Regiment, 7th 
Infantry Division.

SEC. 563. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              WOODROW W. KEEBLE FOR ACTS OF VALOR DURING THE KOREAN 
              WAR.

    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 of title 10, United States Code, 
or any other time limitation with respect to the awarding of certain 
medals to persons who served in the Armed Forces, the President is 
authorized and requested to award the Medal of Honor under section 3741 
of such title to Woodrow W. Keeble for the acts of valor described in 
subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Woodrow W. Keeble of the United 
States Army as an acting platoon leader on October 20, 1950, during the 
Korean War.

SEC. 564. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              PRIVATE PHILIP G. SHADRACH FOR ACTS OF VALOR AS ONE OF 
              ANDREWS' RAIDERS DURING THE CIVIL WAR.

    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the President is authorized and 
requested to award the Medal of Honor under section 3741 of such title 
posthumously to Private Philip G. Shadrach of Company K, 2nd Ohio 
Volunteer Infantry Regiment for the acts of valor described in 
subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Philip G. Shadrach as one of Andrews' 
Raiders during the Civil War on April 12, 1862.

SEC. 565. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              PRIVATE GEORGE D. WILSON FOR ACTS OF VALOR AS ONE OF 
              ANDREWS' RAIDERS DURING THE CIVIL WAR.

    (a) Authorization.--The President is authorized and requested to 
award the Medal of Honor under section 3741 of title 10, United States 
Code, posthumously to Private George D. Wilson of Company B, 2nd Ohio 
Volunteer Infantry Regiment for the acts of valor described in 
subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of George D. Wilson as one of Andrews' 
Raiders during the Civil War on April 12, 1862.

     Subtitle G--Impact Aid and Defense Dependents Education System

SEC. 571. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
              AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for Defense-
wide activities, $30,000,000 shall be available only for the purpose of 
providing assistance to local educational agencies under subsection (a) 
of section 572 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
    (b) Assistance to Schools With Enrollment Changes Due to Base 
Closures, Force Structure Changes, or Force Relocations.--Of the amount 
authorized to be appropriated pursuant to section 301(5) for operation 
and maintenance for Defense-wide activities, $10,000,000 shall be 
available only for the purpose of providing assistance to local 
educational agencies under subsection (b) of such section 572.
    (c) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)).

SEC. 572. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).

SEC. 573. INCLUSION OF DEPENDENTS OF NON-DEPARTMENT OF DEFENSE 
              EMPLOYEES EMPLOYED ON FEDERAL PROPERTY IN PLAN RELATING 
              TO FORCE STRUCTURE CHANGES, RELOCATION OF MILITARY UNITS, 
              OR BASE CLOSURES AND REALIGNMENTS.

    Section 574(e)(3) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2227; 20 U.S.C. 
7703b note) is amended--
        (1) in subparagraph (A), by striking ``and'' at the end;
        (2) in subparagraph (B), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
            ``(C) elementary and secondary school students who are 
        dependents of personnel who are not members of the Armed Forces 
        or civilian employees of the Department of Defense but who are 
        employed on Federal property.''.

SEC. 574. PAYMENT OF PRIVATE BOARDING SCHOOL TUITION FOR MILITARY 
              DEPENDENTS IN OVERSEAS AREAS NOT SERVED BY DEFENSE 
              DEPENDENTS' EDUCATION SYSTEM SCHOOLS.

    Section 1407(b)(1) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 926(b)(1)) is amended by inserting after the first sentence 
the following new sentence: ``Schools to which tuition may be paid 
under this subsection may include private boarding schools in the 
United States.''.

                     Subtitle H--Military Families

SEC. 581. DEPARTMENT OF DEFENSE MILITARY FAMILY READINESS COUNCIL AND 
              POLICY AND PLANS FOR MILITARY FAMILY READINESS.

    (a) In General.--Subchapter I of chapter 88 of title 10, United 
States Code, is amended by inserting after section 1781 the following 
new sections:

``Sec. 1781a. Department of Defense Military Family Readiness Council

    ``(a) In General.--There is in the Department of Defense the 
Department of Defense Military Family Readiness Council (in this 
section referred to as the `Council').
    ``(b) Members.--(1) The Council shall consist of the following 
members:
        ``(A) The Under Secretary of Defense for Personnel and 
    Readiness, who shall serve as chair of the Council.
        ``(B) One representative of each of the Army, Navy, Marine 
    Corps, and Air Force, who shall be appointed by the Secretary of 
    Defense.
        ``(C) Three individuals appointed by the Secretary of Defense 
    from among representatives of military family organizations, 
    including military family organizations of families of members of 
    the regular components and of families of members of the reserve 
    components.
        ``(D) In addition to the representatives appointed under 
    subparagraph (B), the senior enlisted advisors of the Army, Navy, 
    Marine Corps, and Air Force, or the spouse of a senior enlisted 
    member from each of the Army, Navy, Marine Corps, and Air Force.
    ``(2) The term on the Council of the members appointed under 
paragraph (1)(C) shall be three years.
    ``(c) Meetings.--The Council shall meet not less often than twice 
each year.
    ``(d) Duties.--The duties of the Council shall include the 
following:
        ``(1) To review and make recommendations to the Secretary of 
    Defense regarding the policy and plans required under section 1781b 
    of this title.
        ``(2) To monitor requirements for the support of military 
    family readiness by the Department of Defense.
        ``(3) To evaluate and assess the effectiveness of the military 
    family readiness programs and activities of the Department of 
    Defense.
    ``(e) Annual Reports.--(1) Not later than February 1 each year, the 
Council shall submit to the Secretary of Defense and the congressional 
defense committees a report on military family readiness.
    ``(2) Each report under this subsection shall include the 
following:
        ``(A) An assessment of the adequacy and effectiveness of the 
    military family readiness programs and activities of the Department 
    of Defense during the preceding fiscal year in meeting the needs 
    and requirements of military families.
        ``(B) Recommendations on actions to be taken to improve the 
    capability of the military family readiness programs and activities 
    of the Department of Defense to meet the needs and requirements of 
    military families, including actions relating to the allocation of 
    funding and other resources to and among such programs and 
    activities.

``Sec. 1781b. Department of Defense policy and plans for military 
            family readiness

    ``(a) Policy and Plans Required.--The Secretary of Defense shall 
develop a policy and plans for the Department of Defense for the 
support of military family readiness.
    ``(b) Purposes.--The purposes of the policy and plans required 
under subsection (a) are as follows:
        ``(1) To ensure that the military family readiness programs and 
    activities of the Department of Defense are comprehensive, 
    effective, and properly supported.
        ``(2) To ensure that support is continuously available to 
    military families in peacetime and in war, as well as during 
    periods of force structure change and relocation of military units.
        ``(3) To ensure that the military family readiness programs and 
    activities of the Department of Defense are available to all 
    military families, including military families of members of the 
    regular components and military families of members of the reserve 
    components.
        ``(4) To make military family readiness an explicit element of 
    applicable Department of Defense plans, programs, and budgeting 
    activities, and that achievement of military family readiness is 
    expressed through Department-wide goals that are identifiable and 
    measurable.
        ``(5) To ensure that the military family readiness programs and 
    activities of the Department of Defense undergo continuous 
    evaluation in order to ensure that resources are allocated and 
    expended for such programs and activities to achieve Department-
    wide family readiness goals.
    ``(c) Elements of Policy.--The policy required under subsection (a) 
shall include the following elements:
        ``(1) A list of military family readiness programs and 
    activities.
        ``(2) Department of Defense-wide goals for military family 
    support, including joint programs, both for military families of 
    members of the regular components and military families of members 
    of the reserve components.
        ``(3) Policies on access to military family support programs 
    and activities based on military family populations served and 
    geographical location.
        ``(4) Metrics to measure the performance and effectiveness of 
    the military family readiness programs and activities of the 
    Department of Defense.
        ``(5) A summary, by fiscal year, of the allocation of funds 
    (including appropriated funds and nonappropriated funds) for major 
    categories of military family readiness programs and activities of 
    the Department of Defense, set forth for each of the military 
    departments and for the Office of the Secretary of Defense.
    ``(d) Annual Report.--Not later than March 1, 2008, and each year 
thereafter, the Secretary of Defense shall submit to the congressional 
defense committees a report on the plans required under subsection (a) 
for the five-fiscal year period beginning with the fiscal year in which 
the report is submitted. Each report shall include the plans covered by 
the report and an assessment of the discharge by the Department of 
Defense of the previous plans submitted under this section.''.
    (b) Report on Military Family Readiness Policy.--Not later than 
February 1, 2009, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth the policy 
developed under section 1781b of title 10, United States Code, as added 
by subsection (a).
    (c) Surveys of Military Families.--Section 1782 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Survey Required for Fiscal Year 2010.--Notwithstanding 
subsection (a), during fiscal year 2010, the Secretary of Defense shall 
conduct a survey otherwise authorized under such subsection. 
Thereafter, additional surveys may be conducted not less often than 
once every three fiscal years.''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
subchapter I of chapter 88 of such title is amended by inserting after 
the item relating to section 1781 the following new items:

``1781a. Department of Defense Military Family Readiness Council.
``1781b. Department of Defense policy and plans for military family 
          readiness.''.

SEC. 582. YELLOW RIBBON REINTEGRATION PROGRAM.

    (a) Establishment of Program.--The Secretary of Defense shall 
establish a national combat veteran reintegration program to provide 
National Guard and Reserve members and their families with sufficient 
information, services, referral, and proactive outreach opportunities 
throughout the entire deployment cycle. This program shall be known as 
the Yellow Ribbon Reintegration Program.
    (b) Purpose of Program; Deployment Cycle.--The Yellow Ribbon 
Reintegration Program shall consist of informational events and 
activities for members of the reserve components of the Armed Forces, 
their families, and community members to facilitate access to services 
supporting their health and well-being through the 4 phases of the 
deployment cycle:
        (1) Pre-Deployment.
        (2) Deployment.
        (3) Demobilization.
        (4) Post-Deployment-Reconstitution.
    (c) Executive Agent.--The Secretary shall designate the Under 
Secretary of Defense for Personnel and Readiness as the Department of 
Defense executive agent for the Yellow Ribbon Reintegration Program.
    (d) Office for Reintegration Programs.--
        (1) Establishment.--The Under Secretary of Defense for 
    Personnel and Readiness shall establish the Office for 
    Reintegration Programs within the Office of the Secretary of 
    Defense. The office shall administer all reintegration programs in 
    coordination with State National Guard organizations. The office 
    shall be responsible for coordination with existing National Guard 
    and Reserve family and support programs. The Directors of the Army 
    National Guard and Air National Guard and the Chiefs of the Army 
    Reserve, Marine Corps Reserve, Navy Reserve, and Air Force Reserve 
    may appoint liaison officers to coordinate with the permanent 
    office staff. The office may also enter into partnerships with 
    other public entities, including the Department of Health and Human 
    Services, Substance Abuse and the Mental Health Services 
    Administration, for access to necessary substance abuse and mental 
    health treatment services from local State-licensed service 
    providers.
        (2) Center for excellence in reintegration.--The Office for 
    Reintegration Programs shall establish a Center for Excellence in 
    Reintegration within the office. The Center shall collect and 
    analyze ``lessons learned'' and suggestions from State National 
    Guard and Reserve organizations with existing or developing 
    reintegration programs. The Center shall also assist in developing 
    training aids and briefing materials and training representatives 
    from State National Guard and Reserve organizations.
    (e) Advisory Board.--
        (1) Appointment.--The Secretary of Defense shall appoint an 
    advisory board to analyze the Yellow Ribbon Reintegration Program 
    and report on areas of success and areas for necessary 
    improvements. The advisory board shall include the Director of the 
    Army National Guard, the Director of the Air National Guard, Chiefs 
    of the Army Reserve, Marine Corps Reserve, Navy Reserve, and Air 
    Force Reserve, the Assistant Secretary of Defense for Reserve 
    Affairs, an Adjutant General on a rotational basis as determined by 
    the Chief of the National Guard Bureau, and any other Department of 
    Defense, Federal Government agency, or outside organization as 
    determined by the Secretary of Defense. The members of the advisory 
    board may designate representatives in their stead.
        (2) Schedule.--The advisory board shall meet on a schedule 
    determined by the Secretary of Defense.
        (3) Initial reporting requirement.--The advisory board shall 
    issue internal reports as necessary and shall submit an initial 
    report to the Committees on Armed Services of the Senate and House 
    of Representatives not later than 180 days after the end of the 1-
    year period beginning on the date of the establishment of the 
    Office for Reintegration Programs. The report shall contain--
            (A) an evaluation of the implementation of the Yellow 
        Ribbon Reintegration Program by State National Guard and 
        Reserve organizations;
            (B) an assessment of any unmet resource requirements; and
            (C) recommendations regarding closer coordination between 
        the Office of Reintegration Programs and State National Guard 
        and Reserve organizations.
        (4) Annual reports.--The advisory board shall submit annual 
    reports to the Committees on Armed Services of the Senate and the 
    House of Representatives following the initial report by the first 
    week in March of subsequent years following the initial report.
    (f) State Deployment Cycle Support Teams.--The Office for 
Reintegration Programs may employ personnel to administer the Yellow 
Ribbon Reintegration Program at the State level. The primary function 
of team members shall be--
        (1) to implement the reintegration curriculum through the 
    deployment cycle described in subsection (g);
        (2) to obtain necessary service providers; and
        (3) to educate service providers regarding the unique military 
    nature of the reintegration program.
    (g) Operation of Program Through Deployment Cycle.--
        (1) In general.--The Office for Reintegration Programs shall 
    analyze the demographics, placement of State Family Assistance 
    Centers and their resources before a mobilization alert is issued 
    to affected State National Guard and Reserve organizations. The 
    Office of Reintegration Programs shall consult with affected State 
    National Guard and Reserve organizations following the issuance of 
    a mobilization alert and implement the reintegration events in 
    accordance with the Reintegration Program phase model.
        (2) Pre-deployment phase.--The Pre-Deployment Phase shall 
    constitute the time from first notification of mobilization until 
    deployment of the mobilized National Guard or Reserve unit. Events 
    and activities shall focus on providing education and ensuring the 
    readiness of members of the unit, their families, and affected 
    communities for the rigors of a combat deployment.
        (3) Deployment phase.--The Deployment Phase shall constitute 
    the period from deployment of the mobilized National Guard or 
    Reserve unit until the unit arrives at a demobilization station 
    inside the continental United States. Events and services provided 
    shall focus on the challenges and stress associated with separation 
    and having a member in a combat zone. Information sessions shall 
    utilize State National Guard and Reserve resources in coordination 
    with the Employer Support of Guard and Reserve Office, Transition 
    Assistance Advisors, and the State Family Programs Director.
        (4) Demobilization phase.--
            (A) In general.--The Demobilization Phase shall constitute 
        the period from arrival of the National Guard or Reserve unit 
        at the demobilization station until its departure for home 
        station.
            (B) Initial reintegration activity.--The purpose of this 
        reintegration program is to educate members about the resources 
        that are available to them and to connect members to service 
        providers who can assist them in overcoming the challenges of 
        reintegration.
        (5) Post-deployment-reconstitution phase.--
            (A) In general.--The Post-Deployment-Reconstitution Phase 
        shall constitute the period from arrival at home station until 
        180 days following demobilization. Activities and services 
        provided shall focus on reconnecting members with their 
        families and communities and providing resources and 
        information necessary for successful reintegration. 
        Reintegration events shall begin with elements of the Initial 
        Reintegration Activity program that were not completed during 
        the Demobilization Phase.
            (B) 30-day, 60-day, and 90-day reintegration activities.--
        The State National Guard and Reserve organizations shall hold 
        reintegration activities at the 30-day, 60-day, and 90-day 
        interval following demobilization. These activities shall focus 
        on reconnecting members and their families with the service 
        providers from the Initial Reintegration Activity to ensure 
        that members and their families understand what benefits they 
        are entitled to and what resources are available to help them 
        overcome the challenges of reintegration. The Reintegration 
        Activities shall also provide a forum for members and their 
        families to address negative behaviors related to combat stress 
        and transition.
            (C) Member pay.--Members shall receive appropriate pay for 
        days spent attending the Reintegration Activities at the 30-
        day, 60-day, and 90-day intervals.
    (h) Outreach Services.--As part of the Yellow Ribbon Reintegration 
Program, the Office for Reintegration Programs may develop programs of 
outreach to members of the Armed Forces and their family members to 
educate such members and their family members about the assistance and 
services available to them under the Yellow Ribbon Reintegration 
Program. Such assistance and services may include the following:
        (1) Marriage counseling.
        (2) Services for children.
        (3) Suicide prevention.
        (4) Substance abuse awareness and treatment.
        (5) Mental health awareness and treatment.
        (6) Financial counseling.
        (7) Anger management counseling.
        (8) Domestic violence awareness and prevention.
        (9) Employment assistance.
        (10) Preparing and updating family care plans.
        (11) Development of strategies for living with a member of the 
    Armed Forces with post-traumatic stress disorder or traumatic brain 
    injury.
        (12) Other services that may be appropriate to address the 
    unique needs of members of the Armed Forces and their families who 
    live in rural or remote areas with respect to family readiness and 
    servicemember reintegration.
        (13) Assisting members of the Armed Forces and their families 
    find and receive assistance with military family readiness and 
    servicemember reintegration, including referral services.
        (14) Development of strategies and programs that recognize the 
    need for long-term follow-up services for reintegrating members of 
    the Armed Forces and their families for extended periods following 
    deployments, including between deployments.
        (15) Assisting members of the Armed Forces and their families 
    in receiving services and assistance from the Department of 
    Veterans Affairs, including referral services.

SEC. 583. STUDY TO ENHANCE AND IMPROVE SUPPORT SERVICES AND PROGRAMS 
              FOR FAMILIES OF MEMBERS OF REGULAR AND RESERVE COMPONENTS 
              UNDERGOING DEPLOYMENT.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
to determine the most effective means to enhance and improve family 
support programs for families of deployed members of the regular and 
reserve components of the Armed Forces before, during, and after 
deployment. The study shall also take into account the potential to 
utilize non-governmental and local private sector entities and other 
Federal agencies having expertise in health and well-being of families, 
including family members who are children, infants, or toddlers.
    (b) Elements.--The study shall include at a minimum the following:
        (1) The assessment of the types of information on health care 
    and mental health benefits and services and other community 
    resources that should be made available to members of the regular 
    and reserve components and their families, including--
            (A) crisis services;
            (B) marriage and family counseling; and
            (C) financial counseling.
        (2) An assessment of means to improve support to the parents 
    and caretakers of military dependent children in order to mitigate 
    any adverse effects of the deployment of members on such children, 
    including consideration of the following:
            (A) The need to develop materials for parents and other 
        caretakers of children to assist in responding to the effects 
        of such deployment on children, including extended and multiple 
        deployments and reunion (and the death or injury of members 
        during such deployment), and the role that parents and 
        caretakers can play in addressing or mitigating such effects.
            (B) The potential best practices that are identified which 
        build psychological and emotional resiliency in children in 
        coping with deployment.
            (C) The potential to improve dissemination throughout the 
        Armed Forces of the most effective practices for outreach, 
        training, and building psychological and emotional resiliency 
        in children.
            (D) The effectiveness of training materials for education, 
        mental health, health, and family support professionals who 
        provide services to parents and caretakers of military 
        dependent children.
            (E) The requirement to develop programs and activities to 
        increase awareness throughout the military and civilian 
        communities of the effects of deployment of a military spouse 
        or guardians for such children and their families and to 
        increase collaboration within such communities to address and 
        mitigate such effects.
            (F) The development of training for early child care and 
        education, mental health, health care, and family support 
        professionals to enhance the awareness of such professionals of 
        their role in assisting families in addressing and mitigating 
        the adverse implications of such deployment.
            (G) The conduct of research on best practices for building 
        psychological and emotional resiliency in such children in 
        coping with the deployment of such members.
        (3) An assessment of the effectiveness of family-to-family 
    support programs--
            (A) in providing peer support for families of deployed 
        members of the regular and reserve components;
            (B) in identifying and preventing family problems in such 
        families;
            (C) in reducing adverse outcomes for children of such 
        families, including poor academic performance, behavioral 
        problems, stress, and anxiety;
            (D) in improving family readiness and post-deployment 
        transition for such families; and
            (E) in utilizing spouses of members of the Armed Forces as 
        counselors for families of deployed members, in order to assist 
        such families in coping before, during, and after the 
        deployment, and the best practices for training spouses of 
        members of the Armed Forces to act as counselors for families 
        of deployed members.
        (4) An assessment of the effectiveness of transition assistance 
    programs and policies for families of members during post-
    deployment transition from a combat zone back to civilian or 
    military communities--
            (A) in identifying signs and symptoms of mental health 
        conditions for both service members and their families; and
            (B) in receiving information and resources available within 
        the local communities to ease transition.
        (5) An assessment of the impact of multiple overseas 
    deployments of members on their families, particularly in the case 
    of members serving in Operation Iraqi Freedom and Operation 
    Enduring Freedom, including financial impacts and emotional 
    impacts.
        (6) An assessment of the most effective timing of providing 
    information and support to the families of deployed members before, 
    during, and after deployment, including at least six months after 
    the date of return of deployed members.
        (7) An assessment of the need for additional long-term research 
    on the effects of multiple wartime deployments on families, 
    including children, and critical areas of focus that should be 
    addressed by such research.
    (c) Report on Results of Study.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report containing the results of 
the study conducted under subsection (a).

SEC. 584. PROTECTION OF CHILD CUSTODY ARRANGEMENTS FOR PARENTS WHO ARE 
              MEMBERS OF THE ARMED FORCES DEPLOYED IN SUPPORT OF A 
              CONTINGENCY OPERATION.

    (a) Protection of Servicemembers Against Default Judgments.--
Section 201(a) of the Servicemembers Civil Relief Act (50 U.S.C. App. 
521(a)) is amended by inserting ``, including any child custody 
proceeding,'' after ``proceeding''.
    (b) Stay of Proceedings When Servicemember Has Notice.--Section 
202(a) of the Servicemembers Civil Relief Act (50 U.S.C. App. 522(a)) 
is amended by inserting ``, including any child custody proceeding,'' 
after ``civil action or proceeding''.

SEC. 585. FAMILY LEAVE IN CONNECTION WITH INJURED MEMBERS OF THE ARMED 
              FORCES.

    (a) Servicemember Family Leave.--
        (1) Definitions.--Section 101 of the Family and Medical Leave 
    Act of 1993 (29 U.S.C. 2611) is amended by adding at the end the 
    following new paragraphs:
        ``(14) Active duty.--The term `active duty' means duty under a 
    call or order to active duty under a provision of law referred to 
    in section 101(a)(13)(B) of title 10, United States Code.
        ``(15) Contingency operation.--The term `contingency operation' 
    has the same meaning given such term in section 101(a)(13) of title 
    10, United States Code.
        ``(16) Covered servicemember.--The term `covered servicemember' 
    means a member of the Armed Forces, including a member of the 
    National Guard or Reserves, who is undergoing medical treatment, 
    recuperation, or therapy, is otherwise in outpatient status, or is 
    otherwise on the temporary disability retired list, for a serious 
    injury or illness.
        ``(17) Outpatient status.--The term `outpatient status', with 
    respect to a covered servicemember, means the status of a member of 
    the Armed Forces assigned to--
            ``(A) a military medical treatment facility as an 
        outpatient; or
            ``(B) a unit established for the purpose of providing 
        command and control of members of the Armed Forces receiving 
        medical care as outpatients.
        ``(18) Next of kin.--The term `next of kin', used with respect 
    to an individual, means the nearest blood relative of that 
    individual.
        ``(19) Serious injury or illness.--The term `serious injury or 
    illness', in the case of a member of the Armed Forces, including a 
    member of the National Guard or Reserves, means an injury or 
    illness incurred by the member in line of duty on active duty in 
    the Armed Forces that may render the member medically unfit to 
    perform the duties of the member's office, grade, rank, or 
    rating.''.
        (2) Entitlement to leave.--Section 102(a) of such Act (29 
    U.S.C. 2612(a)) is amended--
            (A) in paragraph (1), by adding at the end the following 
        new subparagraph:
            ``(E) Because of any qualifying exigency (as the Secretary 
        shall, by regulation, determine) arising out of the fact that 
        the spouse, or a son, daughter, or parent of the employee is on 
        active duty (or has been notified of an impending call or order 
        to active duty) in the Armed Forces in support of a contingency 
        operation.''; and
            (B) by adding at the end the following new paragraphs:
        ``(3) Servicemember family leave.--Subject to section 103, an 
    eligible employee who is the spouse, son, daughter, parent, or next 
    of kin of a covered servicemember shall be entitled to a total of 
    26 workweeks of leave during a 12-month period to care for the 
    servicemember. The leave described in this paragraph shall only be 
    available during a single 12-month period.
        ``(4) Combined leave total.--During the single 12-month period 
    described in paragraph (3), an eligible employee shall be entitled 
    to a combined total of 26 workweeks of leave under paragraphs (1) 
    and (3). Nothing in this paragraph shall be construed to limit the 
    availability of leave under paragraph (1) during any other 12-month 
    period.''.
        (3) Requirements relating to leave.--
            (A) Schedule.--Section 102(b) of such Act (29 U.S.C. 
        2612(b)) is amended--
                (i) in paragraph (1), in the second sentence--

                    (I) by striking ``section 103(b)(5)'' and inserting 
                ``subsection (b)(5) or (f) (as appropriate) of section 
                103''; and
                    (II) by inserting ``or under subsection (a)(3)'' 
                after ``subsection (a)(1)'';

                (ii) in paragraph (1), by inserting after the second 
            sentence the following new sentence: ``Subject to 
            subsection (e)(3) and section 103(f), leave under 
            subsection (a)(1)(E) may be taken intermittently or on a 
            reduced leave schedule.''; and
                (iii) in paragraph (2), by inserting ``or under 
            subsection (a)(3)'' after ``subsection (a)(1)''.
            (B) Substitution of paid leave.--Section 102(d) of such Act 
        (29 U.S.C. 2612(d)) is amended--
                (i) in paragraph (1)--

                    (I) by inserting ``(or 26 workweeks in the case of 
                leave provided under subsection (a)(3))'' after ``12 
                workweeks'' the first place it appears; and
                    (II) by inserting ``(or 26 workweeks, as 
                appropriate)'' after ``12 workweeks'' the second place 
                it appears;

                (ii) in paragraph (2)(A), by striking ``or (C)'' and 
            inserting ``(C), or (E)''; and
                (iii) in paragraph (2)(B), by adding at the end the 
            following: ``An eligible employee may elect, or an employer 
            may require the employee, to substitute any of the accrued 
            paid vacation leave, personal leave, family leave, or 
            medical or sick leave of the employee for leave provided 
            under subsection (a)(3) for any part of the 26-week period 
            of such leave under such subsection, except that nothing in 
            this title requires an employer to provide paid sick leave 
            or paid medical leave in any situation in which the 
            employer would not normally provide any such paid leave.''.
            (C) Notice.--Section 102(e) of such Act (29 U.S.C. 2612(e)) 
        is amended--
                (i) in paragraph (2), by inserting ``or under 
            subsection (a)(3)'' after ``subsection (a)(1)''; and
                (ii) by adding at the end the following new paragraph:
        ``(3) Notice for leave due to active duty of family member.--In 
    any case in which the necessity for leave under subsection 
    (a)(1)(E) is foreseeable, whether because the spouse, or a son, 
    daughter, or parent, of the employee is on active duty, or because 
    of notification of an impending call or order to active duty in 
    support of a contingency operation, the employee shall provide such 
    notice to the employer as is reasonable and practicable.''.
            (D) Spouses employed by same employer.--Section 102(f) of 
        such Act (29 U.S.C. 2612(f)) is amended--
                (i) by redesignating paragraphs (1) and (2) as 
            subparagraphs (A) and (B), and aligning the margins of the 
            subparagraphs with the margins of section 102(e)(2)(A);
                (ii) by striking ``In any'' and inserting the 
            following:
        ``(1) In general.--In any''; and
                (iii) by adding at the end the following:
        ``(2) Servicemember family leave.--
            ``(A) In general.--The aggregate number of workweeks of 
        leave to which both that husband and wife may be entitled under 
        subsection (a) may be limited to 26 workweeks during the single 
        12-month period described in subsection (a)(3) if the leave 
        is--
                ``(i) leave under subsection (a)(3); or
                ``(ii) a combination of leave under subsection (a)(3) 
            and leave described in paragraph (1).
            ``(B) Both limitations applicable.--If the leave taken by 
        the husband and wife includes leave described in paragraph (1), 
        the limitation in paragraph (1) shall apply to the leave 
        described in paragraph (1).''.
            (E) Certification requirements.--Section 103 of such Act 
        (29 U.S.C. 2613) is amended--
                (i) in subsection (a)--

                    (I) by striking ``section 102(a)(1)'' and inserting 
                ``paragraph (1) or paragraph (3) of section 102(a)''; 
                and
                    (II) by inserting ``or of the next of kin of an 
                individual in the case of leave taken under such 
                paragraph (3),'' after ``parent of the employee,''; and

                (ii) by adding at the end the following:
    ``(f) Certification Related to Active Duty or Call to Active 
Duty.--An employer may require that a request for leave under section 
102(a)(1)(E) be supported by a certification issued at such time and in 
such manner as the Secretary may by regulation prescribe. If the 
Secretary issues a regulation requiring such certification, the 
employee shall provide, in a timely manner, a copy of such 
certification to the employer.''.
            (F) Failure to return.--Section 104(c) of such Act (29 
        U.S.C. 2614(c)) is amended--
                (i) in paragraph (2)(B)(i), by inserting ``or under 
            section 102(a)(3)'' before the semicolon; and
                (ii) in paragraph (3)(A)--

                    (I) in clause (i), by striking ``or'' at the end;
                    (II) in clause (ii), by striking the period and 
                inserting ``; or''; and
                    (III) by adding at the end the following:

                ``(iii) a certification issued by the health care 
            provider of the servicemember being cared for by the 
            employee, in the case of an employee unable to return to 
            work because of a condition specified in section 
            102(a)(3).''.
            (G) Enforcement.--Section 107 of such Act (29 U.S.C. 2617) 
        is amended, in subsection (a)(1)(A)(i)(II), by inserting ``(or 
        26 weeks, in a case involving leave under section 102(a)(3))'' 
        after ``12 weeks''.
            (H) Instructional employees.--Section 108 of such Act (29 
        U.S.C. 2618) is amended, in subsections (c)(1), (d)(2), and 
        (d)(3), by inserting ``or under section 102(a)(3)'' after 
        ``section 102(a)(1)''.
    (b) Servicemember Family Leave for Civil Service Employees.--
        (1) Definitions.--Section 6381 of title 5, United States Code, 
    is amended--
            (A) in paragraph (5), by striking ``and'' at the end;
            (B) in paragraph (6), by striking the period and inserting 
        a semicolon; and
            (C) by adding at the end the following:
        ``(7) the term `active duty' means duty under a call or order 
    to active duty under a provision of law referred to in section 
    101(a)(13)(B) of title 10;
        ``(8) the term `covered servicemember' means a member of the 
    Armed Forces, including a member of the National Guard or Reserves, 
    who is undergoing medical treatment, recuperation, or therapy, is 
    otherwise in an outpatient status, or is otherwise on the temporary 
    disability retired list, for a serious injury or illness;
        ``(9) the term `outpatient status', with respect to a covered 
    servicemember, means the status of a member of the Armed Forces 
    assigned to--
            ``(A) a military medical treatment facility as an 
        outpatient; or
            ``(B) a unit established for the purpose of providing 
        command and control of members of the Armed Forces receiving 
        medical care as outpatients;
        ``(10) the term `next of kin', used with respect to an 
    individual, means the nearest blood relative of that individual; 
    and
        ``(11) the term `serious injury or illness', in the case of a 
    member of the Armed Forces, means an injury or illness incurred by 
    the member in line of duty on active duty in the Armed Forces that 
    may render the member medically unfit to perform the duties of the 
    member's office, grade, rank, or rating.''.
        (2) Entitlement to leave.--Section 6382(a) of such title is 
    amended by adding at the end the following:
    ``(3) Subject to section 6383, an employee who is the spouse, son, 
daughter, parent, or next of kin of a covered servicemember shall be 
entitled to a total of 26 administrative workweeks of leave during a 
12-month period to care for the servicemember. The leave described in 
this paragraph shall only be available during a single 12-month period.
    ``(4) During the single 12-month period described in paragraph (3), 
an employee shall be entitled to a combined total of 26 administrative 
workweeks of leave under paragraphs (1) and (3). Nothing in this 
paragraph shall be construed to limit the availability of leave under 
paragraph (1) during any other 12-month period.''.
        (3) Requirements relating to leave.--
            (A) Schedule.--Section 6382(b) of such title is amended--
                (i) in paragraph (1), in the second sentence--

                    (I) by striking ``section 6383(b)(5)'' and 
                inserting ``subsection (b)(5) or (f) (as appropriate) 
                of section 6383''; and
                    (II) by inserting ``or under subsection (a)(3)'' 
                after ``subsection (a)(1)''; and

                (ii) in paragraph (2), by inserting ``or under 
            subsection (a)(3)'' after ``subsection (a)(1)''.
            (B) Substitution of paid leave.--Section 6382(d) of such 
        title is amended by adding at the end the following: ``An 
        employee may elect to substitute for leave under subsection 
        (a)(3) any of the employee's accrued or accumulated annual or 
        sick leave under subchapter I for any part of the 26-week 
        period of leave under such subsection.''.
            (C) Notice.--Section 6382(e) of such title is amended by 
        inserting ``or under subsection (a)(3)'' after ``subsection 
        (a)(1)''.
            (D) Certification.--Section 6383 of such title is amended 
        by adding at the end the following:
    ``(f) An employing agency may require that a request for leave 
under section 6382(a)(3) be supported by a certification issued at such 
time and in such manner as the Office of Personnel Management may by 
regulation prescribe.''.

SEC. 586. FAMILY CARE PLANS AND DEFERMENT OF DEPLOYMENT OF SINGLE 
              PARENT OR DUAL MILITARY COUPLES WITH MINOR DEPENDENTS.

    The Secretary of Defense shall establish appropriate procedures to 
ensure that an adequate family care plan is in place for a member of 
the Armed Forces with minor dependents who is a single parent or whose 
spouse is also a member of the Armed Forces when the member may be 
deployed in an area for which imminent danger pay is authorized under 
section 310 of title 37, United States Code. Such procedures should 
allow the member to request a deferment of deployment due to unforeseen 
circumstances, and the request for such a deferment should be 
considered and responded to promptly.

SEC. 587. EDUCATION AND TREATMENT SERVICES FOR MILITARY DEPENDENT 
              CHILDREN WITH AUTISM.

    (a) Assessment of Availability of Services.--The Secretary of 
Defense shall conduct a comprehensive assessment of the availability of 
Federal, State, and local education and treatment services on and in 
the vicinity of a covered military installation for children of members 
of the Armed Forces who are diagnosed with autism. This assessment 
shall include the following:
        (1) The local availability of adequate educational services for 
    children with autism.
        (2) The local availability of adequate medical services for 
    children with autism.
        (3) The local availability of supplemental services for 
    children with autism.
        (4) The ease of access of children with autism to adequate 
    educational services, such as the length of time on waiting lists.
    (b) Review of Best Practices.--In preparing the assessment under 
subsection (a), the Secretary of Defense shall conduct a review of best 
practices in the United States in the provision of covered educational 
services and treatment services for children with autism, including an 
assessment of Federal and State education and treatment services for 
children with autism in each State, with an emphasis on locations where 
eligible members and eligible dependents reside. The Secretary of 
Defense shall conduct the review in coordination with the Secretary of 
Education.
    (c) Personnel Management Requirements.--
        (1) Limited stationing options.--The Secretary of the military 
    department concerned shall ensure that, whenever practicable, 
    eligible members are only assigned to military installations that 
    are identified in the report required by subsection (g)(1).
        (2) Stabilization policy.--The Secretary of the military 
    department concerned shall ensure that, whenever practicable, the 
    families of eligible members residing at a military installation 
    that is identified in such report are permitted to remain at that 
    installation for a period of not less than 4 years.
    (d) Case Managers and Services.--
        (1) Case managers.--The Secretary of the military department 
    concerned shall ensure that eligible members are assigned case 
    managers for both medical services and covered educational services 
    for eligible dependents, which shall be required under the 
    Exceptional Family Member Program pursuant to the policy 
    established by the Secretary.
        (2) Individualized services plan.--The Secretary of the 
    military department concerned shall provide for the voluntary 
    development for eligible dependents of individualized autism 
    services plans for use by case managers, caregivers, and families 
    to ensure continuity of services throughout the active military 
    service of eligible members.
        (3) Autism support centers.--The Secretary of the military 
    department concerned may establish local centers on military 
    installations for the purpose of providing and coordinating autism 
    services for eligible dependents.
        (4) Partnerships and contracts.--The Secretary of the military 
    department concerned is encouraged to enter into partnerships or 
    contracts with other appropriate public and private entities to 
    carry out the responsibilities of this section.
    (e) Demonstration Projects.--
        (1) Projects authorized.--The Secretary of Defense may conduct 
    1 or more demonstration projects to evaluate improved approaches to 
    the provision of covered educational services and treatment 
    services to eligible dependents for the purpose of evaluating 
    strategies for integrated treatment and case manager services, 
    including early intervention and diagnosis, medical care, parent 
    involvement, special education services, intensive behavioral 
    intervention, and language, communications, and other interventions 
    considered appropriate by the Secretary.
        (2) Case managers and services plan.--Each demonstration 
    project shall include the assignment of case managers under 
    paragraph (1) of subsection (d) and utilize the services plans 
    prepared for eligible dependents under paragraph (2) of such 
    subsection.
        (3) Supervisory level providers.--The Secretary of Defense may 
    utilize for purposes of the demonstration projects personnel who 
    are professionals with a level (as determined by the Secretary) of 
    post-secondary education that is appropriate for the provision of 
    safe and effective services for autism and who are from an 
    accredited educational facility in the mental health, human 
    development, social work, or education field to act as supervisory 
    level providers of behavioral intervention services for autism. In 
    so acting, such personnel may be authorized--
            (A) to develop and monitor intensive behavior intervention 
        plans for eligible dependents who are participating in the 
        demonstration projects; and
            (B) to provide appropriate training in the provision of 
        approved services to participating eligible dependents.
        (4) Services under corporate services provider model.--In 
    carrying out the demonstration projects, the Secretary of Defense 
    may utilize a corporate services provider model. Employees of a 
    provider under such a model shall include personnel who implement 
    special educational and behavioral intervention plans for eligible 
    dependents that are developed, reviewed, and maintained by 
    supervisory level providers approved by the Secretary. In 
    authorizing such a model, the Secretary shall establish--
            (A) minimum education, training, and experience criteria 
        required to be met by employees who provide services to 
        eligible dependents;
            (B) requirements for supervisory personnel and supervision, 
        including requirements for supervisor credentials and for the 
        frequency and intensity of supervision; and
            (C) such other requirements as the Secretary considers 
        appropriate to ensure safety and the protection of the eligible 
        dependents who receive services from such employees under the 
        demonstration projects.
        (5) Period.--If the Secretary of Defense determines to conduct 
    demonstration projects under this subsection, the Secretary shall 
    commence such demonstration projects not later than 180 days after 
    the date of the enactment of this Act. The demonstration projects 
    shall be conducted for not less than 2 years.
        (6) Evaluation.--The Secretary of Defense shall conduct an 
    evaluation of each demonstration project conducted under this 
    section. The evaluation shall include the following:
            (A) An assessment of the extent to which the activities 
        under the demonstration project contributed to positive 
        outcomes for eligible dependents.
            (B) An assessment of the extent to which the activities 
        under the demonstration project led to improvements in services 
        and continuity of care for eligible dependents.
            (C) An assessment of the extent to which the activities 
        under the demonstration project improved military family 
        readiness and enhanced military retention.
    (f) Relationship to Other Benefits.--Nothing in this section 
precludes the eligibility of members of the Armed Forces and their 
dependents for extended benefits under section 1079 of title 10, United 
States Code.
    (g) Reports.--
        (1) Report identifying covered military installations.--As a 
    result of the assessment required by subsection (a), the Secretary 
    of Defense shall submit to the congressional defense committees, 
    not later than December 31, 2008, a report identifying those 
    covered military installations that have covered educational 
    services and facilities available (on the installation or in the 
    vicinity of the installation) for eligible dependents that provide 
    special education and related services consistent with the 
    Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
    seq.).
        (2) Reports on demonstration projects.--Not later than 30 
    months after the commencement of any demonstration project under 
    subsection (e), the Secretary of Defense shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives a report on the demonstration project. The report 
    shall include a description of the project, the results of the 
    evaluation under subsection (e)(6) with respect to the project, and 
    a description of plans for the further provision of services for 
    eligible dependents under the project.
    (h) Covered Educational Services Plan.--After completing the 
assessment required by subsection (a) and the report required by 
subsection (g)(1), the Secretary of Defense shall develop a plan that 
would ensure that all eligible dependents are able to obtain covered 
educational services. In the event that eligible members are assigned 
to military installations that are not identified in the report 
required by subsection (g)(1), the plan should ensure that such 
eligible dependents are still able to obtain covered educational 
services, including by the use of authority granted to the Secretary 
under section 2164 of title 10, United States Code. The plan shall also 
include any legislative actions that the Secretary recommends to 
implement the plan and describe what funding or funding mechanisms may 
be needed to ensure eligible dependents obtain covered educational 
services. The Secretary shall submit the plan to the congressional 
defense committees not later than July 1, 2009.
    (i) Definitions.--In this section:
        (1) The term ``autism'' refers to the Autism Spectrum 
    Disorders, which are developmental disabilities that cause 
    substantial impairments in the areas of social interaction, 
    emotional regulation, communication, and the integration of higher-
    order cognitive processes and are often characterized by the 
    presence of unusual behaviors and interests. The term includes 
    autistic disorder, pervasive developmental disorder (not otherwise 
    specified), and Asperger's syndrome.
        (2) The term ``child'' has the meaning given that term in 
    section 1072 of title 10, United States Code.
        (3) The term ``covered military installation'' means a military 
    installation at which at least 1,000 members of the Armed Forces 
    are assigned who are eligible for an assignment accompanied by 
    dependents.
        (4) The term ``eligible member'' means a member of the Armed 
    Forces who--
            (A) has a dependent child who is diagnosed with autism; and
            (B) is enrolled in an Exceptional Family Member Program of 
        the Department of Defense.
        (5) The term ``eligible dependent'' means a child of an 
    eligible member who is diagnosed with autism.
        (6) The term ``local educational agency'' has the meaning given 
    that term in section 8013(9) of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 7713(9)), except that the term 
    includes publicly financed schools in communities, Department of 
    Defense domestic dependent elementary and secondary schools, and 
    schools of the defense dependents' education system.
        (7) The term ``covered educational services'' includes 
    behavioral intervention services for autism, such as Applied 
    Behavioral Analysis.

SEC. 588. COMMENDATION OF EFFORTS OF PROJECT COMPASSION IN PAYING 
              TRIBUTE TO MEMBERS OF THE ARMED FORCES WHO HAVE FALLEN IN 
              THE SERVICE OF THE UNITED STATES.

    (a) Commendation.--Congress, on the behalf of the people of the 
United States, commends Kaziah M. Hancock and the 4 other volunteer 
professional portrait artists of the nonprofit organization known as 
Project Compassion, as well as the entire Project Compassion 
organization, for their ongoing efforts to provide, without charge, to 
the family of each member of the Armed Forces who has died on active 
duty since September 11, 2001, a museum-quality original oil portrait 
of the member.
    (b) Sense of Congress.--It is the sense of Congress that the people 
of the United States owe the deepest gratitude to Kaziah M. Hancock and 
the members of Project Compassion.

                       Subtitle I--Other Matters

SEC. 590. UNIFORM PERFORMANCE POLICIES FOR MILITARY BANDS AND OTHER 
              MUSICAL UNITS.

    (a) In General.--
        (1) Consolidation of separate authorities.--Chapter 49 of title 
    10, United States Code, is amended by inserting after section 973 
    the following new section:

``Sec. 974. Uniform performance policies for military bands and other 
            musical units

    ``(a) Restrictions on Competition and Remuneration.--Bands, 
ensembles, choruses, or similar musical units of the armed forces, 
including individual members of such a unit performing in an official 
capacity, may not--
        ``(1) engage in the performance of music in competition with 
    local civilian musicians; or
        ``(2) receive remuneration for official performances.
    ``(b) Members Performing in Personal Capacity.--A member of a band, 
ensemble, chorus, or similar musical unit of the armed forces may 
engage in the performance of music in the member's personal capacity, 
as an individual or part of a group, for remuneration or otherwise, if 
the member--
        ``(1) does not wear a military uniform for the performance;
        ``(2) does not identify himself or herself as a member of the 
    armed forces in connection with the performance; and
        ``(3) complies with all other applicable regulations and 
    standards of conduct.
    ``(c) Recordings.--(1) When authorized pursuant to regulations 
prescribed by the Secretary of Defense for purposes of this section, 
bands, ensembles, choruses, or similar musical units of the armed 
forces may produce recordings for distribution to the public, at a cost 
not to exceed production and distribution expenses.
    ``(2) Amounts received in payment for recordings distributed to the 
public under this subsection shall be credited to the appropriation or 
account providing the funds for the production of such recordings. Any 
amounts so credited shall be merged with amounts in the appropriation 
or account to which credited, and shall be available for the same 
purposes, and subject to the same conditions and limitations, as 
amounts in such appropriation or account.
    ``(d) Performance of Music in Competition With Local Civilian 
Musicians Defined.--(1) In this section, the term `performance of music 
in competition with local civilian musicians' includes performances--
        ``(A) that are more than incidental to events that are not 
    supported solely by appropriated funds and are not free to the 
    public; and
        ``(B) of background, dinner, dance, or other social music at 
    events, regardless of location, that are not supported solely by 
    appropriated funds.
    ``(2) The term does not include performances--
        ``(A) at official Federal Government events that are supported 
    solely by appropriated funds;
        ``(B) at concerts, parades, and other events that are patriotic 
    events or celebrations of national holidays and are free to the 
    public; or
        ``(C) that are incidental, such as short performances of 
    military or patriotic music to open or close events, to events that 
    are not supported solely by appropriated funds, in compliance with 
    applicable rules and regulations.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 973 the following new item:

``974. Uniform performance policies for military bands and other musical 
          units.''.

    (b) Repeal of Separate Service Authorities.--
        (1) Repeal.--Sections 3634, 6223, and 8634 of such title are 
    repealed.
        (2) Table of sections.--(A) The table of sections at the 
    beginning of chapter 349 of such title is amended by striking the 
    item relating to section 3634.
        (B) The table of sections at the beginning of chapter 565 of 
    such title is amended by striking the item relating to section 
    6223.
        (C) The table of sections at the beginning of chapter 849 of 
    such title is amended by striking the item relating to section 
    8634.

SEC. 591. TRANSPORTATION OF REMAINS OF DECEASED MEMBERS OF THE ARMED 
              FORCES AND CERTAIN OTHER PERSONS.

    Section 1482(a)(8) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``When transportation of 
the remains includes transportation by aircraft under section 562 of 
the John Warner National Defense Authorization Act for Fiscal Year 2007 
(Public Law 109-364; 10 U.S.C. 1482 note), the Secretary concerned 
shall provide, to the maximum extent practicable, for delivery of the 
remains by air to the commercial, general aviation, or military airport 
nearest to the place selected by the designee.''.

SEC. 592. EXPANSION OF NUMBER OF ACADEMIES SUPPORTABLE IN ANY STATE 
              UNDER STARBASE PROGRAM.

    Section 2193b(c)(3) of title 10, United States Code, is amended--
        (1) in subparagraph (A), by striking ``more than two 
    academies'' and inserting ``more than four academies''; and
        (2) in subparagraph (B), by striking ``in excess of two'' both 
    places it appears and inserting ``in excess of four''.

SEC. 593. GIFT ACCEPTANCE AUTHORITY.

    (a) Permanent Authority To Accept Gifts on Behalf of the Wounded.--
Section 2601(b) of title 10, United States Code, is amended by striking 
paragraph (4).
    (b) Limitation on Solicitation of Gifts.--The Secretary of Defense 
shall prescribe regulations implementing sections 2601 and 2608 of 
title 10, United States Code, that prohibit the solicitation of any 
gift under such sections by any employee of the Department of Defense 
if the nature or circumstances of such solicitation would compromise 
the integrity or the appearance of integrity of any program of the 
Department of Defense or of any individual involved in such program.

SEC. 594. CONDUCT BY MEMBERS OF THE ARMED FORCES AND VETERANS OUT OF 
              UNIFORM DURING HOISTING, LOWERING, OR PASSING OF UNITED 
              STATES FLAG.

    Section 9 of title 4, United States Code, is amended by striking 
``all persons present'' and all that follows through the end of the 
section and inserting the following: ``all persons present in uniform 
should render the military salute. Members of the Armed Forces and 
veterans who are present but not in uniform may render the military 
salute. All other persons present should face the flag and stand at 
attention with their right hand over the heart, or if applicable, 
remove their headdress with their right hand and hold it at the left 
shoulder, the hand being over the heart. Citizens of other countries 
present should stand at attention. All such conduct toward the flag in 
a moving column should be rendered at the moment the flag passes.''.

SEC. 595. ANNUAL REPORT ON CASES REVIEWED BY NATIONAL COMMITTEE FOR 
              EMPLOYER SUPPORT OF THE GUARD AND RESERVE.

    Section 4332 of title 38, United States Code, is amended--
        (1) by redesignating paragraphs (2), (3), (4), (5), and (6) as 
    paragraphs (3), (4), (5), (6), and (7) respectively;
        (2) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) The number of cases reviewed by the Secretary of Defense 
    under the National Committee for Employer Support of the Guard and 
    Reserve of the Department of Defense during the fiscal year for 
    which the report is made.''; and
        (3) in paragraph (5), as so redesignated, by striking ``(2), or 
    (3)'' and inserting ``(2), (3), or (4)''.

SEC. 596. MODIFICATION OF CERTIFICATE OF RELEASE OR DISCHARGE FROM 
              ACTIVE DUTY (DD FORM 214).

    The Secretary of Defense, in consultation with the Secretary of 
Veterans Affairs, shall modify the Certificate of Release or Discharge 
from Active Duty (DD Form 214) in order to permit a member of the Armed 
Forces, upon discharge or release from active duty in the Armed Forces, 
to elect that the DD-214 issued with regard to the member be forwarded 
to the following:
        (1) The Central Office of the Department of Veterans Affairs in 
    the District of Columbia.
        (2) The appropriate office of the Department of Veterans 
    Affairs for the State or other locality in which the member will 
    first reside after such discharge or release.

SEC. 597. REPORTS ON ADMINISTRATIVE SEPARATIONS OF MEMBERS OF THE ARMED 
              FORCES FOR PERSONALITY DISORDER.

    (a) Secretary of Defense Report on Administrative Separations Based 
on Personality Disorder.--
        (1) Report required.--Not later than April 1, 2008, the 
    Secretary of Defense shall submit to the Committees on Armed 
    Services of the Senate and the House of Representatives a report on 
    all cases of administrative separation from the Armed Forces of 
    covered members of the Armed Forces on the basis of a personality 
    disorder.
        (2) Elements.--The report required by paragraph (1) shall 
    include the following:
            (A) A statement of the total number of cases, by Armed 
        Force, in which covered members of the Armed Forces have been 
        separated from the Armed Forces on the basis of a personality 
        disorder, and an identification of the various forms of 
        personality disorder forming the basis for such separations.
            (B) A statement of the total number of cases, by Armed 
        Force, in which covered members of the Armed Forces who have 
        served in Iraq and Afghanistan since October 2001 have been 
        separated from the Armed Forces on the basis of a personality 
        disorder, and the identification of the various forms of 
        personality disorder forming the basis for such separations.
            (C) A summary of the policies, by Armed Force, controlling 
        administrative separations of members of the Armed Forces based 
        on personality disorder, and an evaluation of the adequacy of 
        such policies for ensuring that covered members of the Armed 
        Forces who may be eligible for disability evaluation due to 
        mental health conditions are not separated from the Armed 
        Forces on the basis of a personality disorder.
            (D) A discussion of measures being implemented to ensure 
        that members of the Armed Forces who should be evaluated for 
        disability separation or retirement due to mental health 
        conditions are not processed for separation from the Armed 
        Forces on the basis of a personality disorder, and 
        recommendations regarding how members of the Armed Forces who 
        may have been so separated from the Armed Forces should be 
        provided with expedited review by the applicable board for the 
        correction of military records.
    (b) Comptroller General Report on Policies on Administrative 
Separation Based on Personality Disorder.--
        (1) Report required.--Not later than June 1, 2008, the 
    Comptroller General shall submit to Congress a report evaluating 
    the policies and procedures of the Department of Defense and of the 
    military departments relating to the separation of members of the 
    Armed Forces based on a personality disorder.
        (2) Elements.--The report required by paragraph (1) shall--
            (A) include an audit of a sampling of cases to determine 
        the validity and clinical efficacy of the policies and 
        procedures referred to in paragraph (1) and the extent, if any, 
        of the divergence between the terms of such policies and 
        procedures and the implementation of such policies and 
        procedures; and
            (B) include a determination by the Comptroller General of 
        whether, and to what extent, the policies and procedures 
        referred to in paragraph (1)--
                (i) deviate from standard clinical diagnostic practices 
            and current clinical standards; and
                (ii) provide adequate safeguards aimed at ensuring that 
            members of the Armed Forces who suffer from mental health 
            conditions (including depression, post-traumatic stress 
            disorder, or traumatic brain injury) resulting from service 
            in a combat zone are not separated from the Armed Forces on 
            the basis of a personality disorder.
        (3) Alternative submission method.--In lieu of submitting a 
    separate report under this subsection, the Comptroller may include 
    the evaluation, audit and determination required by this subsection 
    as part of the study of mental health services required by section 
    723 of the Ronald W. Reagan National Defense Authorization Act of 
    2005 (Public Law 108-375; 118 Stat. 1989).
    (c) Covered Member of the Armed Forces Defined.--In this section, 
the term ``covered member of the Armed Forces'' includes the following:
        (1) Any member of a regular component of the Armed Forces who 
    has served in Iraq or Afghanistan since October 2001.
        (2) Any member of the Selected Reserve of the Ready Reserve of 
    the Armed Forces who served on active duty in Iraq or Afghanistan 
    since October 2001.

SEC. 598. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE VIETNAM WAR.

    (a) Commemorative Program Authorized.--The Secretary of Defense may 
conduct a program to commemorate the 50th anniversary of the Vietnam 
War. In conducting the commemorative program, the Secretary shall 
coordinate, support, and facilitate other programs and activities of 
the Federal Government, State and local governments, and other persons 
and organizations in commemoration of the Vietnam War.
    (b) Schedule.--The Secretary of Defense shall determine the 
schedule of major events and priority of efforts for the commemorative 
program in order to ensure achievement of the objectives specified in 
subsection (c).
    (c) Commemorative Activities and Objectives.--The commemorative 
program may include activities and ceremonies to achieve the following 
objectives:
        (1) To thank and honor veterans of the Vietnam War, including 
    personnel who were held as prisoners of war or listed as missing in 
    action, for their service and sacrifice on behalf of the United 
    States and to thank and honor the families of these veterans.
        (2) To highlight the service of the Armed Forces during the 
    Vietnam War and the contributions of Federal agencies and 
    governmental and non-governmental organizations that served with, 
    or in support of, the Armed Forces.
        (3) To pay tribute to the contributions made on the home front 
    by the people of the United States during the Vietnam War.
        (4) To highlight the advances in technology, science, and 
    medicine related to military research conducted during the Vietnam 
    War.
        (5) To recognize the contributions and sacrifices made by the 
    allies of the United States during the Vietnam War.
    (d) Names and Symbols.--The Secretary of Defense shall have the 
sole and exclusive right to use the name ``The United States of America 
Vietnam War Commemoration'', and such seal, emblems, and badges 
incorporating such name as the Secretary may lawfully adopt. Nothing in 
this section may be construed to supersede rights that are established 
or vested before the date of the enactment of this Act.
    (e) Commemorative Fund.--
        (1) Establishment and administration.--If the Secretary 
    establishes the commemorative program under subsection (a), the 
    Secretary the Treasury shall establish in the Treasury of the 
    United States an account to be known as the ``Department of Defense 
    Vietnam War Commemoration Fund'' (in this section referred to as 
    the ``Fund''). The Fund shall be administered by the Secretary of 
    Defense.
        (2) Use of fund.--The Secretary shall use the assets of the 
    Fund only for the purpose of conducting the commemorative program 
    and shall prescribe such regulations regarding the use of the Fund 
    as the Secretary considers to be necessary.
        (3) Deposits.--There shall be deposited into the Fund--
            (A) amounts appropriated to the Fund;
            (B) proceeds derived from the Secretary's use of the 
        exclusive rights described in subsection (d);
            (C) donations made in support of the commemorative program 
        by private and corporate donors; and
            (D) funds transferred to the Fund by the Secretary from 
        funds appropriated for fiscal year 2008 and subsequent years 
        for the Department of Defense.
        (4) Availability.--Subject to subsection (g)(2), amounts 
    deposited under paragraph (3) shall constitute the assets of the 
    Fund and remain available until expended.
        (5) Budget request.--The Secretary of Defense may establish a 
    separate budget line for the commemorative program. In the budget 
    justification materials submitted by the Secretary in support of 
    the budget of the President for any fiscal year for which the 
    Secretary establishes the separate budget line, the Secretary 
    shall--
            (A) identify and explain any amounts expended for the 
        commemorative program in the fiscal year preceding the budget 
        request;
            (B) identify and explain the amounts being requested to 
        support the commemorative program for the fiscal year of the 
        budget request; and
            (C) present a summary of the fiscal status of the Fund.
    (f) Acceptance of Voluntary Services.--
        (1) Authority to accept services.--Notwithstanding section 1342 
    of title 31, United States Code, the Secretary of Defense may 
    accept from any person voluntary services to be provided in 
    furtherance of the commemorative program. The Secretary of Defense 
    shall prohibit the solicitation of any voluntary services if the 
    nature or circumstances of such solicitation would compromise the 
    integrity or the appearance of integrity of any program of the 
    Department of Defense or of any individual involved in the program.
        (2) Reimbursement of incidental expenses.--The Secretary may 
    provide for reimbursement of incidental expenses incurred by a 
    person providing voluntary services under this subsection. The 
    Secretary shall determine which expenses are eligible for 
    reimbursement under this paragraph.
    (g) Final Report.--
        (1) Report required.--Not later than 60 days after the end of 
    the commemorative program, if established by the Secretary of 
    Defense under subsection (a), the Secretary shall submit to 
    Congress a report containing an accounting of--
            (A) all of the funds deposited into and expended from the 
        Fund;
            (B) any other funds expended under this section; and
            (C) any unobligated funds remaining in the Fund.
        (2) Treatment of unobligated funds.--Unobligated amounts 
    remaining in the Fund as of the end of the commemorative period 
    specified in subsection (b) shall be held in the Fund until 
    transferred by law.
    (h) Limitation on Expenditures.--Total expenditures from the Fund, 
using amounts appropriated to the Department of Defense, may not exceed 
$5,000,000 for fiscal year 2008 or for any subsequent fiscal year to 
carry out the commemorative program.
    (i) Funding.--Of the amount authorized to be appropriated pursuant 
to section 301(5) for Defense-wide activities, $1,000,000 shall be 
available for deposit in the Fund for fiscal year 2008 if the Fund is 
established under subsection (e).

SEC. 599. RECOGNITION OF MEMBERS OF THE MONUMENTS, FINE ARTS, AND 
              ARCHIVES PROGRAM OF THE CIVIL AFFAIRS AND MILITARY 
              GOVERNMENT SECTIONS OF THE ARMED FORCES DURING AND 
              FOLLOWING WORLD WAR II.

    Congress hereby--
        (1) recognizes the men and women who served in the Monuments, 
    Fine Arts, and Archives program (MFAA) under the Civil Affairs and 
    Military Government Sections of the United States Armed Forces for 
    their heroic role in the preservation, protection, and restitution 
    of monuments, works of art, and other artifacts of inestimable 
    cultural importance in Europe and Asia during and following World 
    War II;
        (2) recognizes that without their dedication and service, many 
    more of the world's artistic and historic treasures would have been 
    destroyed or lost forever amidst the chaos and destruction of World 
    War II;
        (3) acknowledges that the detailed catalogues, documentation, 
    inventories, and photographs developed and compiled by MFAA 
    personnel during and following World War II, have made, and 
    continue to make, possible the restitution of stolen works of art 
    to their rightful owners; and
        (4) commends and extols the members of the MFAA for 
    establishing a precedent for action to protect cultural property in 
    the event of armed conflict, and by their action setting a standard 
    not just for one country, but for people of all nations to 
    acknowledge and uphold.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
          without dependents who attend accession training while 
          maintaining a primary residence.
Sec. 603. Extension and enhancement of authority for temporary lodging 
          expenses for members of the Armed Forces in areas subject to 
          major disaster declaration or for installations experiencing 
          sudden increase in personnel levels.
Sec. 604. Income replacement payments for reserve component members 
          experiencing extended and frequent mobilization for active 
          duty service.
Sec. 605. Midmonth payment of basic pay for contributions of members of 
          the uniformed services participating in Thrift Savings Plan.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 610. Correction of lapsed authorities for payment of bonuses, 
          special pays, and similar benefits for members of the 
          uniformed services.
Sec. 611. Extension of certain bonus and special pay authorities for 
          Reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
          health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
          officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
          and special pays.
Sec. 615. Increase in incentive special pay and multiyear retention 
          bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Increase in maximum monthly rate of hardship duty pay and 
          authority to provide hardship duty pay in a lump sum.
Sec. 618. Definition of sea duty for career sea pay to include service 
          as off-cycle crewmembers of multi-crew ships.
Sec. 619. Reenlistment bonus for members of the Selected Reserve.
Sec. 620. Availability of Selected Reserve accession bonus for persons 
          who previously served in the Armed Forces for a short period.
Sec. 621. Availability of nuclear officer continuation pay for officers 
          with more than 26 years of commissioned service.
Sec. 622. Waiver of years-of-service limitation on receipt of critical 
          skills retention bonus.
Sec. 623. Accession bonus for participants in the Armed Forces Health 
          Professions Scholarship and Financial Assistance Program.
Sec. 624. Payment of assignment incentive pay for Reserve members 
          serving in combat zone for more than 22 months.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Payment of inactive duty training travel costs for certain 
          Selected Reserve members.
Sec. 632. Survivors of deceased members eligible for transportation to 
          attend burial ceremonies.
Sec. 633. Allowance for participation of Reserves in electronic 
          screening.
Sec. 634. Allowance for civilian clothing for members of the Armed 
          Forces traveling in connection with medical evacuation.
Sec. 635. Payment of moving expenses for Junior Reserve Officers' 
          Training Corps instructors in hard-to-fill positions.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Expansion of combat-related special compensation eligibility.
Sec. 642. Inclusion of veterans with service-connected disabilities 
          rated as total by reason of unemployability under termination 
          of phase-in of concurrent receipt of retired pay and veterans' 
          disability compensation.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
          offset for dependency and indemnity compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
          required Survivor Benefit Plan annuity offset for dependency 
          and indemnity compensation.
Sec. 645. Modification of authority of members of the Armed Forces to 
          designate recipients for payment of death gratuity.
Sec. 646. Clarification of application of retired pay multiplier 
          percentage to members of the uniformed services with over 30 
          years of service.
Sec. 647. Commencement of receipt of non-regular service retired pay by 
          members of the Ready Reserve on active Federal status or 
          active duty for significant periods.
Sec. 648. Computation of years of service for purposes of retired pay 
          for non-regular service.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 651. Authority to continue commissary and exchange benefits for 
          certain involuntarily separated members of the Armed Forces.
Sec. 652. Authorization of installment deductions from pay of employees 
          of nonappropriated fund instrumentalities to collect 
          indebtedness to the United States.

   Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                               Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
          authorities of the uniformed services.
Sec. 662. Transitional provisions.

                        Subtitle G--Other Matters

Sec. 671. Referral bonus authorities.
Sec. 672. Expansion of education loan repayment program for members of 
          the Selected Reserve.
Sec. 673. Ensuring entry into United States after time abroad for 
          permanent resident alien military spouses and children.
Sec. 674. Overseas naturalization for military spouses and children.
Sec. 675. Modification of amount of back pay for members of Navy and 
          Marine Corps selected for promotion while interned as 
          prisoners of war during World War II to take into account 
          changes in Consumer Price Index.

                     Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY.

    (a) Rescission of Prior Basic Pay Adjustment.--The adjustment made 
as of January 1, 2008, pursuant to section 4 of Executive Order No. 
13454 (issued January 4, 2008), in elements of compensation of members 
of the uniformed services pursuant to section 1009 of title 37, United 
States Code, is hereby rescinded in order to permit the 3.5 percent 
increase in monthly basic pay for members of the uniformed services 
required by subsection (b) to take effect as intended.
    (b) Increase in Basic Pay.--Effective as of January 1, 2008, the 
rates of monthly basic pay for members of the uniformed services are 
increased by 3.5 percent.

SEC. 602. BASIC ALLOWANCE FOR HOUSING FOR RESERVE COMPONENT MEMBERS 
              WITHOUT DEPENDENTS WHO ATTEND ACCESSION TRAINING WHILE 
              MAINTAINING A PRIMARY RESIDENCE.

    (a) Availability of Allowance.--Section 403(g)(1) of title 37, 
United States Code, is amended--
        (1) by inserting ``to attend accession training,'' after 
    ``active duty'' the first place it appears; and
        (2) by inserting a comma after ``contingency operation'' the 
    first place it appears.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to months beginning on or after the date of the 
enactment of this Act.

SEC. 603. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR TEMPORARY LODGING 
              EXPENSES FOR MEMBERS OF THE ARMED FORCES IN AREAS SUBJECT 
              TO MAJOR DISASTER DECLARATION OR FOR INSTALLATIONS 
              EXPERIENCING SUDDEN INCREASE IN PERSONNEL LEVELS.

    (a) Maximum Period of Receipt of Expenses.--Section 404a(c)(3) of 
title 37, United States Code, is amended by striking ``20 days'' and 
inserting ``60 days''.
    (b) Extension of Authority for Increase in Certain BAH.--Section 
403(b)(7)(E) of such title is amended by striking ``December 31, 2008'' 
and inserting ``December 31, 2009''.

SEC. 604. INCOME REPLACEMENT PAYMENTS FOR RESERVE COMPONENT MEMBERS 
              EXPERIENCING EXTENDED AND FREQUENT MOBILIZATION FOR 
              ACTIVE DUTY SERVICE.

    (a) Clarification Regarding When Payments Required.--Subsection (a) 
of section 910 of title 37, United States Code, is amended by inserting 
before the period at the end of the first sentence the following: ``, 
when the total monthly military compensation of the member is less than 
the average monthly civilian income of the member''.
    (b) Eligibility.--Subsection (b) of such section is amended to read 
as follows:
    ``(b) Eligibility.--(1) A member of a reserve component is entitled 
to a payment under this section for any full month of active duty of 
the member, when the total monthly military compensation of the member 
is less than the average monthly civilian income of the member, while 
the member is on active duty under an involuntary mobilization order, 
following the date on which the member--
        ``(A) completes 547 continuous days of service on active duty 
    under an involuntary mobilization order;
        ``(B) completes 730 cumulative days on active duty under an 
    involuntary mobilization order during the previous 1,826 days; or
        ``(C) is involuntarily mobilized for service on active duty for 
    a period of 180 days or more within 180 days after the date of the 
    member's separation from a previous period of active duty for a 
    period of 180 days or more.
    ``(2) The entitlement of a member of a reserve component to a 
payment under this section also shall commence or, if previously 
commenced under paragraph (1), shall continue if the member--
        ``(A) satisfies the required number of days on active duty 
    specified in subparagraph (A) or (B) of paragraph (1) or was 
    involuntarily mobilized as provided in subparagraph (C) of such 
    paragraph; and
        ``(B) is retained on active duty under subparagraph (A) or (B) 
    of section 12301(h)(1) of title 10 because of an injury or illness 
    incurred or aggravated while the member was assigned to duty in an 
    area for which special pay under section 310 of this title is 
    available.''.
    (c) Termination of Authority.--Subsection (g) of such section is 
amended to read as follows:
    ``(g) Termination.--No payment shall be made to a member under this 
section for months beginning after December 31, 2008, unless the 
entitlement of the member to payments under this section commenced on 
or before that date.''.

SEC. 605. MIDMONTH PAYMENT OF BASIC PAY FOR CONTRIBUTIONS OF MEMBERS OF 
              THE UNIFORMED SERVICES PARTICIPATING IN THRIFT SAVINGS 
              PLAN.

    (a) Semi-Monthly Deposit of Member's Contributions.--Section 1014 
of title 37, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c) With respect to a member of the uniformed services who has 
elected to participate in the Thrift Savings Plan under section 211 of 
this title, subsection (a) does not preclude the payment of an amount 
equal to one-half of the monthly deposit to the Thrift Savings Fund 
otherwise to be made by the member in participating in the Plan, which 
amount may be deposited in the Thrift Savings Fund at midmonth.''.
    (b) Semi-Monthly Repayment of Borrowed Amounts.--Section 211 of 
such title is amended by adding at the end the following new 
subsection:
    ``(e) Repayment of Amounts Borrowed From Member Account.--If a loan 
is issued to a member under section 8433(g) of title 5 from funds in 
the member's account in the Thrift Savings Plan, repayment of the loan 
may be required on the same semi-monthly basis as authorized for 
contributions to the Thrift Savings Fund on behalf of the member under 
section 1014(c) of this title.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 610. CORRECTION OF LAPSED AUTHORITIES FOR PAYMENT OF BONUSES, 
              SPECIAL PAYS, AND SIMILAR BENEFITS FOR MEMBERS OF THE 
              UNIFORMED SERVICES.

    (a) Retroactive Effective Date for Payment Authorities.--The 
amendments made by sections 611, 612, 613, and 614 shall take effect as 
of December 31, 2007.
    (b) Ratification of Existing Contingent Agreements.--In the case of 
a provision of title 10 or 37, United States Code, amended by section 
611, 612, 613, or 614 under which an individual must enter into an 
agreement with the Secretary concerned for receipt of a bonus, special 
pay, or similar benefit, the Secretary concerned may treat any 
agreement entered into under such a provision during the period 
beginning on January 1, 2008, and ending on the date of the enactment 
of this Act as having taken effect as of the date on which the 
agreement was signed by the individual.
    (c) Temporary Additional Agreement Authority.--
        (1) Authority.--In the case of a provision of title 10 or 37, 
    United States Code, amended by section 611, 612, 613, or 614 under 
    which an individual must enter into an agreement with the Secretary 
    concerned for receipt of a bonus, special pay, or similar benefit, 
    the Secretary concerned, during the 120-day period beginning on the 
    date of the enactment of this Act, may treat any agreement entered 
    into under such a provision by an individual described in paragraph 
    (2) as having been signed by the individual during the period 
    beginning on January 1, 2008, and ending on the date of the 
    enactment of this Act.
        (2) Covered individuals.--An individual referred to in 
    paragraph (1) is an individual who would have met all of the 
    qualifications for a bonus, special pay, or similar benefit under a 
    provision of title 10 or 37, United States Code, amended by section 
    611, 612, 613, or 614 at any time during the period beginning on 
    January 1, 2008, and ending on the date of the enactment of this 
    Act, but for the fact that the statutory authority for the bonus, 
    special pay, or similar benefit lapsed on December 31, 2007.
    (d) Tax Treatment.--The payment of a bonus, special pay, or similar 
benefit under a provision of title 10 or 37, United States Code, 
amended by section 611, 612, 613, or 614 to an individual who would 
have been entitled to the tax treatment accorded by section 112 of the 
Internal Revenue Code of 1986 on the date on which the member would 
have otherwise earned the bonus, special pay, or similar benefit, but 
for the fact that the statutory authority for the bonus, special pay, 
or similar benefit lapsed on December 31, 2007, shall be treated as 
covered by such section 112.
    (e) Retroactive Implementation of Army Referral Bonus.--The 
Secretary of the Army may pay a bonus under section 3252 of title 10, 
United States Code, as added by section 671(a)(1), to an individual 
referred to in subsection (a)(2) of such section 3252 who made a 
referral, as described in subsection (b) of such section 3252, to an 
Army recruiter during the period beginning on January 1, 2008, and 
ending on the date of the enactment of this Act.
    (f) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in section 
101(5) of title 37, United States Code.

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
              RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title 
37, United States Code, is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--Section 
308c(i) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (d) Ready Reserve Enlistment Bonus for Persons Without Prior 
Service.--Section 308g(f)(2) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons 
With Prior Service.--Section 308h(e) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (f) Selected Reserve Enlistment Bonus for Persons With Prior 
Service.--Section 308i(f) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
              HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2009''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(e) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (h) Accession Bonus for Medical Officers in Critically Short 
Wartime Specialties.--Section 302k(f) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (i) Accession Bonus for Dental Specialist Officers in Critically 
Short Wartime Specialties.--Section 302l(g) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.

SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR 
              OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(f) of title 37, United States Code, is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2008''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.

SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (c) Enlistment Bonus.--Section 309(e) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (d) Retention Bonus for Members With Critical Military Skills or 
Assigned to High Priority Units.--Section 323(i) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (e) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (f) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (g) Accession Bonus for Officer Candidates.--Section 330(f) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (h) Prohibition on Charges for Meals Received at Military Treatment 
Facilities by Members Receiving Continuous Care.--Section 402(h)(3) of 
such title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.

SEC. 615. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION 
              BONUS FOR MEDICAL OFFICERS.

    (a) Incentive Special Pay.--Section 302(b)(1) of title 37, United 
States Code, is amended by striking ``$50,000'' and inserting 
``$75,000''.
    (b) Multiyear Retention Bonus.--Section 301d(a)(2) of title 37, 
United States Code, is amended by striking ``$50,000'' and inserting 
``$75,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to agreements entered into under section 301d(a) or 
302b(c) of title 37, United States Code, on or after the date of the 
enactment of this Act.

SEC. 616. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

    (a) Increase.--Section 302b(a)(4) of title 37, United States Code, 
is amended--
        (1) in the matter preceding subparagraph (A), by striking ``at 
    the following rates'' and inserting ``at a rate determined by the 
    Secretary concerned, which rate may not exceed the following'';
        (2) in subparagraph (A), by striking ``$4,000'' and inserting 
    ``$10,000''; and
        (3) in subparagraph (B), by striking ``$6,000'' and inserting 
    ``$12,000''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to agreements entered into under section 302b(b) of 
title 37, United States Code, on or after the date of the enactment of 
this Act.

SEC. 617. INCREASE IN MAXIMUM MONTHLY RATE OF HARDSHIP DUTY PAY AND 
              AUTHORITY TO PROVIDE HARDSHIP DUTY PAY IN A LUMP SUM.

    Section 305 of title 37, United States Code, is amended to read as 
follows:

``Sec. 305. Special pay: hardship duty pay

    ``(a) Special Pay Authorized.--A member of a uniformed service who 
is entitled to basic pay may be paid special pay under this section 
while the member is performing duty that is designated by the Secretary 
of Defense as hardship duty.
    ``(b) Payment on Monthly or Lump Sum Basis.--Special pay payable 
under this section may be paid on a monthly basis or in a lump sum.
    ``(c) Maximum Rate or Amount.--(1) The monthly rate of special pay 
payable to a member under this section may not exceed $1,500.
    ``(2) The amount of the lump sum payment of special pay payable to 
a member under this section may not exceed the product of--
        ``(A) the maximum monthly rate in effect under paragraph (1) at 
    the time the member qualifies for payment of special pay under this 
    section; and
        ``(B) the number of months during which the member will be 
    performing the designated hardship duty.
    ``(d) Relationship to Other Pay and Allowances.--Special pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(e) Repayment.--A member who is paid special pay in a lump sum 
under this section, but who fails to perform the designated hardship 
duty during the months included in the calculation of the amount of the 
lump sum under subsection (c)(2), shall be subject to the repayment 
provisions of section 303a(e) of this title.
    ``(f) Regulations.--The Secretary of Defense shall prescribe 
regulations for the payment of hardship duty pay under this section, 
including the specific monthly rates at which the special pay will be 
available.''.

SEC. 618. DEFINITION OF SEA DUTY FOR CAREER SEA PAY TO INCLUDE SERVICE 
              AS OFF-CYCLE CREWMEMBERS OF MULTI-CREW SHIPS.

    Section 305a(e)(1)(A) of title 37, United States Code, is amended--
        (1) by striking ``or'' at the end of clause (ii); and
        (2) by adding at the end the following new clause:
            ``(iv) while serving as an off-cycle crewmember of a multi-
        crewed ship; or''.

SEC. 619. REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Minimum Term of Reenlistment or Enlistment Extension.--
Subsection (a)(2) of 308b of title 37, United States Code, is amended 
by striking ``his enlistment for a period of three years or for a 
period of six years'' and inserting ``an enlistment for a period of at 
least three years''.
    (b) Maximum Bonus Amount.--Subsection (b)(1) of such section is 
amended by striking ``may not exceed'' and all that follows through the 
end of the paragraph and inserting ``may not exceed $15,000.''.
    (c) Conforming Amendments Regarding Eligibility Requirements.--
Subsection (c) of such section is amended--
        (1) by striking the subsection heading and all that follows 
    through ``(2) In the case'' and inserting ``Waiver of Condition on 
    Eligibility.--In the case''; and
        (2) by striking ``paragraph (1)(B) or''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to reenlistments or extensions of enlistment that 
occur on or after the date of the enactment of this Act.

SEC. 620. AVAILABILITY OF SELECTED RESERVE ACCESSION BONUS FOR PERSONS 
              WHO PREVIOUSLY SERVED IN THE ARMED FORCES FOR A SHORT 
              PERIOD.

    Section 308c(c)(1) of title 37, United States Code, is amended by 
inserting before the semicolon the following: ``or has served in the 
armed forces, but was released from such service before completing the 
basic training requirements of the armed force of which the person was 
a member and the service was characterized as either honorable or 
uncharacterized''.

SEC. 621. AVAILABILITY OF NUCLEAR OFFICER CONTINUATION PAY FOR OFFICERS 
              WITH MORE THAN 26 YEARS OF COMMISSIONED SERVICE.

    (a) Increase.--Section 312 of title 37, United States Code, is 
amended--
        (1) in subsection (a)(3), by striking ``26 years'' and 
    inserting ``30 years''; and
        (2) in subsection (e)(1), by striking ``the end of 26 years of 
    commissioned service'' and inserting ``the maximum number of years 
    of commissioned service authorized by subsection (a)(3)''.
    (b) Effect on Existing Agreements.--The Secretary of the Navy and 
an officer of the naval service who is a party to an agreement under 
section 312 of title 37, United States Code, that was entered into 
before the date of the enactment of this Act may revise the agreement 
to reflect the new limitation on the number of years of commissioned 
service that the officer may serve while remaining eligible for special 
pay under such section.

SEC. 622. WAIVER OF YEARS-OF-SERVICE LIMITATION ON RECEIPT OF CRITICAL 
              SKILLS RETENTION BONUS.

    Section 323(e) of title 37, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) The Secretary of Defense, or the Secretary of Homeland 
Security with respect to the Coast Guard when it is not operating as a 
service in the Navy, may waive the limitations in paragraph (1) with 
respect to a member who, during the period of active duty or service in 
an active status in a reserve component for which the bonus is being 
offered, is assigned duties in a skill designated as critical under 
subsection (b)(1). The authority to grant a waiver under this paragraph 
may not be delegated below the Under Secretary of Defense for Personnel 
and Readiness or the Deputy Secretary of the Department of Homeland 
Security.''.

SEC. 623. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED FORCES HEALTH 
              PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    (a) Accession Bonus Authorized.--Subchapter I of chapter 105 of 
title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2128. Accession bonus for members of the program

    ``(a) Availability of Bonus.--The Secretary of Defense may offer a 
person who enters into an agreement under section 2122(a)(2) of this 
title an accession bonus of not more than $20,000 as part of the 
agreement.
    ``(b) Relation to Other Payments.--An accession bonus paid a person 
under this section is in addition to any other amounts payable to the 
person under this subchapter.
    ``(c) Repayment.--A person who receives an accession bonus under 
this section, but fails to comply with the agreement under section 
2122(a)(2) of this title or to commence or complete the active duty 
obligation imposed by section 2123 of this title, shall be subject to 
the repayment provisions of section 303a(e) of title 37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2128. Accession bonus for members of the program.''.

    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to agreements entered into under section 2122(a)(2) 
of title 10, United States Code, on or after the date of the enactment 
of this Act.

SEC. 624. PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE MEMBERS 
              SERVING IN COMBAT ZONE FOR MORE THAN 22 MONTHS.

    (a) Payment.--The Secretary of a military department may pay 
assignment incentive pay under section 307a of title 37, United States 
Code, to a member of a reserve component under the jurisdiction of the 
Secretary for each month during the eligibility period of the member 
determined under subsection (b) during which the member served for any 
portion of the month in a combat zone associated with Operating 
Enduring Freedom or Operation Iraqi Freedom in excess of 22 months of 
qualifying service.
    (b) Eligibility Period.--The eligibility period for a member 
extends from January 1, 2005, through the end of the active duty 
service of the member in a combat zone associated with Operating 
Enduring Freedom or Operation Iraqi Freedom if the service on active 
duty during the member's most recent period of mobilization to active 
duty began before January 19, 2007.
    (c) Amount of Payment.--The monthly rate of incentive pay payable 
to a member under this section is $1,000.
    (d) Qualifying Service.--For purposes of this section, qualifying 
service includes cumulative mobilized service on active duty under 
sections 12301(d), 12302, and 12304 of title 10, United States Code, 
during the period beginning on January 1, 2003, through the end of the 
member's active duty service during the member's most recent period of 
mobilization to active duty beginning before January 19, 2007.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. PAYMENT OF INACTIVE DUTY TRAINING TRAVEL COSTS FOR CERTAIN 
              SELECTED RESERVE MEMBERS.

    (a) Payment of Travel Costs Authorized.--
        (1) In general.--Chapter 7 of title 37, United States Code, is 
    amended by inserting after section 408 the following new section:

``Sec. 408a. Travel and transportation allowances: inactive duty 
            training outside of normal commuting distances

    ``(a) Allowance Authorized.--The Secretary concerned may reimburse 
an eligible member of the Selected Reserve of the Ready Reserve for 
travel expenses for travel to an inactive duty training location to 
perform inactive duty training when the member is required to commute a 
distance from the member's permanent residence to the inactive duty 
training location that is outside the normal commuting distance (as 
determined under the regulations prescribed under subsection (d)) for 
that commute.
    ``(b) Eligible Members.--To be eligible for reimbursement under 
subsection (a), a member of the Selected Reserve of the Ready Reserve 
must be--
        ``(1) qualified in a skill designated as critically short by 
    the Secretary concerned;
        ``(2) assigned to a unit of the Selected Reserve with a 
    critical manpower shortage or in a pay grade in the member's 
    reserve component with a critical manpower shortage; or
        ``(3) assigned to a unit or position that is disestablished or 
    relocated as a result of defense base closure or realignment or 
    another force structure reallocation.
    ``(c) Maximum Reimbursement Amount.--The amount of reimbursement 
provided a member under subsection (a) for each round trip to a 
training location may not exceed $300.
    ``(d) Regulations.--The Secretary concerned shall prescribe 
regulations to carry out this section. Regulations prescribed by the 
Secretary of a military department shall be subject to the approval of 
the Secretary of Defense.
    ``(e) Termination.--No reimbursement may be provided under this 
section for travel that occurs after December 31, 2010.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 7 of such title is amended by inserting after the item 
    relating to section 408 the following new item:

``408a. Travel and transportation allowances: inactive duty training 
          outside of normal commuting distances.''.

    (b) Application of Amendment.--No reimbursement may be provided 
under section 408a of title 37, United States Code, as added by 
subsection (a), for travel costs incurred before the date of the 
enactment of this Act.

SEC. 632. SURVIVORS OF DECEASED MEMBERS ELIGIBLE FOR TRANSPORTATION TO 
              ATTEND BURIAL CEREMONIES.

    (a) Eligible Relatives.--Paragraph (1) of section 411f(c) of title 
37, United States Code, is amended--
        (1) by striking subparagraph (B) and inserting the following 
    new subparagraph:
        ``(B) The child or children of the deceased member (including 
    stepchildren, adopted children, and illegitimate children).''; and
        (2) by adding at the end the following new subparagraphs:
        ``(D) The sibling or siblings of the deceased member.
        ``(E) The person who directs the disposition of the remains of 
    the deceased member under section 1482(c) of title 10 or, in the 
    case of a deceased member whose remains are commingled and buried 
    in a common grave in a national cemetery, the person who would have 
    been designated under such section to direct the disposition of the 
    remains if individual identification had been made.''.
    (b) Other Persons.--Paragraph (2) of such section is amended to 
read as follows:
    ``(2) If no person described in subparagraphs (A) through (D) of 
paragraph (1) is provided travel and transportation allowances under 
subsection (a)(1), the travel and transportation allowances may be 
provided to one or two other persons who are closely related to the 
deceased member and are selected by the person referred to in paragraph 
(1)(E). A person provided travel and transportation allowances under 
this paragraph is in addition to the person referred to in paragraph 
(1)(E).''.

SEC. 633. ALLOWANCE FOR PARTICIPATION OF RESERVES IN ELECTRONIC 
              SCREENING.

    (a) Allowance for Participation in Electronic Screening.--
        (1) In general.--Chapter 7 of title 37, United States Code, is 
    amended by inserting after section 433 the following new section:

``Sec. 433a. Allowance for participation in Ready Reserve screening

    ``(a) Allowance Authorized.--(1) Under regulations prescribed by 
the Secretaries concerned, a member of the Individual Ready Reserve may 
be paid a stipend for participation in the screening performed pursuant 
to section 10149 of title 10, in lieu of muster duty performed under 
section 12319 of title 10, if such participation is conducted through 
electronic means.
    ``(2) The stipend paid a member under this section shall constitute 
the sole monetary allowance authorized for participation in the 
screening described in paragraph (1), and shall constitute payment in 
full to the member for participation in such screening, regardless of 
the grade or rank in which the member is serving.
    ``(b) Maximum Payment.--The aggregate amount of the stipend paid a 
member of the Individual Ready Reserve under this section in any 
calendar year may not exceed $50.
    ``(c) Payment Requirements.--(1) The stipend authorized by this 
section may not be disbursed in kind.
    ``(2) Payment of a stipend to a member of the Individual Ready 
Reserve under this section for participation in screening shall be made 
on or after the date of participation in such screening, but not later 
than 30 days after such date.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 7 of such title is amended by inserting after the item 
    relating to section 433 the following new item:

``433a. Allowance for participation in Ready Reserve screening.''.

    (b) Bar to Dual Compensation.--Section 206 of such title is amended 
by adding at the end the following new subsection:
    ``(f) A member of the Individual Ready Reserve is not entitled to 
compensation under this section for participation in screening for 
which the member is paid a stipend under section 433a of this title.''.
    (c) Bar to Retirement Credit.--Section 12732(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
        ``(8) Service in the screening performed pursuant to section 
    10149 of this title through electronic means, regardless of whether 
    or not a stipend is paid the member concerned for such service 
    under section 433a of title 37.''.

SEC. 634. ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF THE ARMED 
              FORCES TRAVELING IN CONNECTION WITH MEDICAL EVACUATION.

    Section 1047(a) of title 10, United States Code, is amended by 
inserting ``and luggage'' after ``civilian clothing'' both places it 
appears.

SEC. 635. PAYMENT OF MOVING EXPENSES FOR JUNIOR RESERVE OFFICERS' 
              TRAINING CORPS INSTRUCTORS IN HARD-TO-FILL POSITIONS.

    Section 2031 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) When determined by the Secretary of the military 
department concerned to be in the national interest and agreed upon by 
the institution concerned, the institution may reimburse a Junior 
Reserve Officers' Training Corps instructor for moving expenses 
incurred by the instructor to accept employment at the institution in a 
position that the Secretary concerned determines is hard-to-fill for 
geographic or economic reasons.
    ``(2) As a condition on providing reimbursement under paragraph 
(1), the institution shall require the instructor to execute a written 
agreement to serve a minimum of two years of employment at the 
institution in the hard-to-fill position.
    ``(3) Any reimbursement provided to an instructor under paragraph 
(1) is in addition to the minimum instructor pay otherwise payable to 
the instructor.
    ``(4) The Secretary concerned shall reimburse an institution 
providing reimbursement to an instructor under paragraph (1) in an 
amount equal to the amount of the reimbursement paid by the institution 
under that paragraph. Any reimbursement provided by the Secretary 
concerned shall be provided from funds appropriated for that purpose.
    ``(5) The provision of reimbursement under paragraph (1) or (4) 
shall be subject to regulations prescribed by the Secretary of Defense 
for purposes of this subsection.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY.

    (a) Expanded Eligibility for Chapter 61 Military Retirees.--
Subsection (c) of section 1413a of title 10, United States Code, is 
amended by striking ``entitled to retired pay who--'' and all that 
follows and inserting ``who--
        ``(1) is entitled to retired pay (other than by reason of 
    section 12731b of this title); and
        ``(2) has a combat-related disability.''.
    (b) Computation.--Paragraph (3) of subsection (b) of such section 
is amended--
        (1) by striking ``In the case of'' and inserting the following:
            ``(A) General rule.--In the case of''; and
        (2) by adding at the end the following new subparagraph:
            ``(B) Special rule for retirees with fewer than 20 years of 
        service.--In the case of an eligible combat-related disabled 
        uniformed services retiree who is retired under chapter 61 of 
        this title with fewer than 20 years of creditable service, the 
        amount of the payment under paragraph (1) for any month shall 
        be reduced by the amount (if any) by which the amount of the 
        member's retired pay under chapter 61 of this title exceeds the 
        amount equal to 2\1/2\ percent of the member's years of 
        creditable service multiplied by the member's retired pay base 
        under section 1406(b)(1) or 1407 of this title, whichever is 
        applicable to the member.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2008, and shall apply to payments for months 
beginning on or after that date.

SEC. 642. INCLUSION OF VETERANS WITH SERVICE-CONNECTED DISABILITIES 
              RATED AS TOTAL BY REASON OF UNEMPLOYABILITY UNDER 
              TERMINATION OF PHASE-IN OF CONCURRENT RECEIPT OF RETIRED 
              PAY AND VETERANS' DISABILITY COMPENSATION.

    (a) Inclusion of Veterans.--Section 1414(a)(1) of title 10, United 
States Code, is amended by striking ``except that'' and all that 
follows and inserting ``except that payment of retired pay is subject 
to subsection (c) only during the period beginning on January 1, 2004, 
and ending on December 31, 2004, in the case of the following:
            ``(A) A qualified retiree receiving veterans' disability 
        compensation for a disability rated as 100 percent.
            ``(B) A qualified retiree receiving veterans' disability 
        compensation at the rate payable for a 100 percent disability 
        by reason of a determination of individual unemployability.''.
    (b) Effective Date.--
        (1) In general.--Subject to paragraph (2), the amendment made 
    by subsection (a) shall take effect as of December 31, 2004.
        (2) Timing of payment of retroactive benefits.--Any amount 
    payable for a period before October 1, 2008, by reason of the 
    amendment made by subsection (a) shall not be paid until after that 
    date.

SEC. 643. RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, BUT SUBJECT TO 
              OFFSET FOR DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Limitation on Recoupment; Notification Requirements.--Section 
1450(c) of title 10, United States Code, is amended by adding at the 
end the following new paragraph:
        ``(3) Limitation on recoupment of offset amount.--Any amount 
    subject to offset under this subsection that was previously paid to 
    the surviving spouse or former spouse shall be recouped only to the 
    extent that the amount paid exceeds any amount to be refunded under 
    subsection (e). In notifying a surviving spouse or former spouse of 
    the recoupment requirement, the Secretary shall provide the spouse 
    or former spouse--
            ``(A) a single notice of the net amount to be recouped or 
        the net amount to be refunded, as applicable, under this 
        subsection or subsection (e);
            ``(B) a written explanation of the statutory requirements 
        for recoupment of the offset amount and for refund of any 
        applicable amount deducted from retired pay;
            ``(C) a detailed accounting of how the offset amount being 
        recouped and retired pay deduction amount being refunded were 
        calculated; and
            ``(D) contact information for a person who can provide 
        information about the offset recoupment and retired pay 
        deduction refund processes and answer questions the surviving 
        spouse or former spouse may have about the requirements, 
        processes, or amounts.''.
    (b) Application.--Paragraph (3) of subsection (c) of section 1450 
of title 10, United States Code, as added by subsection (a), shall 
apply with respect to the recoupment on or after April 1, 2008, of 
amounts subject to offset under such subsection.

SEC. 644. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR PERSONS AFFECTED BY 
              REQUIRED SURVIVOR BENEFIT PLAN ANNUITY OFFSET FOR 
              DEPENDENCY AND INDEMNITY COMPENSATION.

    Section 1450 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(m) Special Survivor Indemnity Allowance.--
        ``(1) Provision of allowance.--The Secretary concerned shall 
    pay a monthly special survivor indemnity allowance under this 
    subsection to the surviving spouse or former spouse of a member of 
    the uniformed services to whom section 1448 of this title applies 
    if--
            ``(A) the surviving spouse or former spouse is entitled to 
        dependency and indemnity compensation under section 1311(a) of 
        title 38;
            ``(B) except for subsection (c) of this section, the 
        surviving spouse or former spouse is eligible for an annuity by 
        reason of a participant in the Plan under section 1448(a)(1) of 
        this title; and
            ``(C) the eligibility of the surviving spouse or former 
        spouse for an annuity as described in subparagraph (B) is 
        affected by subsection (c) of this section.
        ``(2) Amount of payment.--Subject to paragraph (3), the amount 
    of the allowance paid to an eligible survivor under paragraph (1) 
    for a month shall be equal to--
            ``(A) for months during fiscal year 2009, $50;
            ``(B) for months during fiscal year 2010, $60;
            ``(C) for months during fiscal year 2011, $70;
            ``(D) for months during fiscal year 2012, $80;
            ``(E) for months during fiscal year 2013, $90; and
            ``(F) for months after fiscal year 2013, $100.
        ``(3) Limitation.--The amount of the allowance paid to an 
    eligible survivor under paragraph (1) for any month may not exceed 
    the amount of the annuity for that month that is subject to offset 
    under subsection (c).
        ``(4) Status of payments.--An allowance paid under this 
    subsection does not constitute an annuity, and amounts so paid are 
    not subject to adjustment under any other provision of law.
        ``(5) Source of funds.--The special survivor indemnity 
    allowance shall be paid from amounts in the Department of Defense 
    Military Retirement Fund established under section 1461 of this 
    title.
        ``(6) Effective date and duration.--This subsection shall only 
    apply with respect to the month beginning on October 1, 2008, and 
    subsequent months through the month ending on February 28, 2016. 
    Effective on March 1, 2016, the authority provided by this 
    subsection shall terminate. No special survivor indemnity allowance 
    may be paid to any person by reason of this subsection for any 
    period before October 1, 2008, or beginning on or after March 1, 
    2016.''.

SEC. 645. MODIFICATION OF AUTHORITY OF MEMBERS OF THE ARMED FORCES TO 
              DESIGNATE RECIPIENTS FOR PAYMENT OF DEATH GRATUITY.

    (a) Authority to Designate Recipients.--Section 1477 of title 10, 
United States Code, is amended--
        (1) by striking subsections (c) and (d);
        (2) by redesignating subsection (b) as subsection (d) and, in 
    such subsection, by striking ``Subsection (a)(2)'' and inserting 
    ``Treatment of Children.--Subsection (b)(2)''; and
        (3) by striking subsection (a) and inserting the following new 
    subsections:
    ``(a) Designation of Recipients.--(1) On and after July 1, 2008, or 
such earlier date as the Secretary of Defense may prescribe, a person 
covered by section 1475 or 1476 of this title may designate one or more 
persons to receive all or a portion of the amount payable under section 
1478 of this title. The designation of a person to receive a portion of 
the amount shall indicate the percentage of the amount, to be specified 
only in 10 percent increments, that the designated person may receive. 
The balance of the amount of the death gratuity, if any, shall be paid 
in accordance with subsection (b).
    ``(2) If a person covered by section 1475 or 1476 of this title has 
a spouse, but designates a person other than the spouse to receive all 
or a portion of the amount payable under section 1478 of this title, 
the Secretary concerned shall provide notice of the designation to the 
spouse.
    ``(b) Distribution of Remainder; Distribution in Absence of 
Designated Recipient.--If a person covered by section 1475 or 1476 of 
this title does not make a designation under subsection (a) or 
designates only a portion of the amount payable under section 1478 of 
this title, the amount of the death gratuity not covered by a 
designation shall be paid as follows:
        ``(1) To the surviving spouse of the person, if any.
        ``(2) If there is no surviving spouse, to any surviving 
    children (as prescribed by subsection (d)) of the person and the 
    descendants of any deceased children by representation.
        ``(3) If there is none of the above, to the surviving parents 
    (as prescribed by subsection (c)) of the person or the survivor of 
    them.
        ``(4) If there is none of the above, to the duly-appointed 
    executor or administrator of the estate of the person.
        ``(5) If there is none of the above, to other next of kin of 
    the person entitled under the laws of domicile of the person at the 
    time of the person's death.
    ``(c) Treatment of Parents.--For purposes of subsection (b)(3), 
parents include fathers and mothers through adoption. However, only one 
father and one mother may be recognized in any case, and preference 
shall be given to those who exercised a parental relationship on the 
date, or most nearly before the date, on which the decedent entered a 
status described in section 1475 or 1476 of this title.''.
    (b) Clerical and Conforming Amendments.--Subsection (e) of such 
section is amended--
        (1) by inserting ``Effect of Death Before Receipt of 
    Gratuity.--'' after ``(e)'';
        (2) by striking ``subsection (a) or (d)'' and inserting 
    ``subsection (a) or (b)''; and
        (3) by striking ``subsection (a).'' and inserting ``subsection 
    (b)''.
    (c) Existing Designation Authority.--The authority provided by 
subsection (d) of section 1477 of title 10, United States Code, as in 
effect on the day before the date of the enactment of this Act, shall 
remain available to persons covered by section 1475 or 1476 of such 
title until July 1, 2008, or such earlier date as the Secretary of 
Defense may prescribe, and any designation under such subsection made 
before July 1, 2008, or the earlier date prescribed by the Secretary, 
shall continue in effect until such time as the person who made the 
designation makes a new designation under such section 1477, as amended 
by subsection (a) of this section.
    (d) Regulations.--
        (1) In general.--Not later than April 1, 2008, the Secretary of 
    Defense shall prescribe regulations to implement the amendments to 
    section 1477 of title 10, United States Code, made by subsection 
    (a).
        (2) Elements.--The regulations required by paragraph (1) shall 
    include forms for the making of the designation contemplated by 
    subsection (a) of section 1477 of title 10, United States Code, as 
    amended by subsection (a) of this section, and instructions for 
    members of the Armed Forces in the filling out of such forms.

SEC. 646. CLARIFICATION OF APPLICATION OF RETIRED PAY MULTIPLIER 
              PERCENTAGE TO MEMBERS OF THE UNIFORMED SERVICES WITH OVER 
              30 YEARS OF SERVICE.

    (a) Computation of Retired and Retainer Pay for Members of Naval 
Service.--The table in section 6333(a) of title 10, United States Code, 
is amended in Column 2 of Formula A by striking ``75 percent.'' and 
inserting ``Retired pay multiplier prescribed under section 1409 for 
the years of service that may be credited to the member under section 
1405.''.
    (b) Retired Pay for Certain Members Recalled to Active Duty.--The 
table in section 1402(a) of such title is amended by striking Column 3.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect as of January 1, 2007, and shall apply with respect 
to retired pay and retainer pay payable on or after that date.

SEC. 647. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE RETIRED PAY BY 
              MEMBERS OF THE READY RESERVE ON ACTIVE FEDERAL STATUS OR 
              ACTIVE DUTY FOR SIGNIFICANT PERIODS.

    (a) Reduced Eligibility Age.--Section 12731 of title 10, United 
States Code, is amended--
        (1) in subsection (a), by striking paragraph (1) and inserting 
    the following:
        ``(1) has attained the eligibility age applicable under 
    subsection (f) to that person;''; and
        (2) by adding at the end the following new subsection:
    ``(f)(1) Subject to paragraph (2), the eligibility age for purposes 
of subsection (a)(1) is 60 years of age.
    ``(2)(A) In the case of a person who as a member of the Ready 
Reserve serves on active duty or performs active service described in 
subparagraph (B) after the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2008, the eligibility age for 
purposes of subsection (a)(1) shall be reduced below 60 years of age by 
three months for each aggregate of 90 days on which such person so 
performs in any fiscal year after such date, subject to subparagraph 
(C). A day of duty may be included in only one aggregate of 90 days for 
purposes of this subparagraph.
    ``(B)(i) Service on active duty described in this subparagraph is 
service on active duty pursuant to a call or order to active duty under 
a provision of law referred to in section 101(a)(13)(B) or under 
section 12301(d) of this title. Such service does not include service 
on active duty pursuant to a call or order to active duty under section 
12310 of this title.
    ``(ii) Active service described in this subparagraph is also 
service under a call to active service authorized by the President or 
the Secretary of Defense under section 502(f) of title 32 for purposes 
of responding to a national emergency declared by the President or 
supported by Federal funds.
    ``(C) The eligibility age for purposes of subsection (a)(1) may not 
be reduced below 50 years of age for any person under subparagraph 
(A).''.
    (b) Continuation of Age 60 as Minimum Age for Eligibility of Non-
Regular Service Retirees for Health Care.--Section 1074(b) of such 
title is amended--
        (1) by inserting ``(1)'' after ``(b)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to a member or former member 
entitled to retired pay for non-regular service under chapter 1223 of 
this title who is under 60 years of age.''.
    (c) Administration of Related Provisions of Law or Policy.--With 
respect to any provision of law, or of any policy, regulation, or 
directive of the executive branch that refers to a member or former 
member of the uniformed services as being eligible for, or entitled to, 
retired pay under chapter 1223 of title 10, United States Code, but for 
the fact that the member or former member is under 60 years of age, 
such provision shall be carried out with respect to that member or 
former member by substituting for the reference to being 60 years of 
age a reference to having attained the eligibility age applicable under 
subsection (f) of section 12731 of title 10, United States Code (as 
added by subsection (a)), to such member or former member for 
qualification for such retired pay under subsection (a) of such 
section.

SEC. 648. COMPUTATION OF YEARS OF SERVICE FOR PURPOSES OF RETIRED PAY 
              FOR NON-REGULAR SERVICE.

    Section 12733(3) of title 10, United States Code, is amended--
        (1) in subparagraph (B), by striking ``and'' at the end;
        (2) in subparagraph (C), by striking the period and inserting 
    ``before the year of service that includes October 30, 2007; and''; 
    and
        (3) by adding at the end the following new subparagraph:
            ``(D) 130 days in the year of service that includes October 
        30, 2007, and in any subsequent year of service.''.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 651. AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE BENEFITS FOR 
              CERTAIN INVOLUNTARILY SEPARATED MEMBERS OF THE ARMED 
              FORCES.

    (a) Resumption for Members Involuntarily Separated From Active 
Duty.--Section 1146 of title 10, United States Code, is amended--
        (1) by inserting ``(a) Members Involuntarily Separated From 
    Active Duty.--'' before ``The Secretary of Defense'';
        (2) in the first sentence, by striking ``October 1, 1990, and 
    ending on December 31, 2001'' and inserting ``October 1, 2007, and 
    ending on December 31, 2012''; and
        (3) in the second sentence, by striking ``the period beginning 
    on October 1, 1994, and ending on December 31, 2001'' and inserting 
    ``the same period''.
    (b) Extension to Members Involuntarily Separated From Selected 
Reserve.--Such section is further amended by adding at the end the 
following new subsection:
    ``(b) Members Involuntarily Separated From Selected Reserve.--The 
Secretary of Defense shall prescribe regulations to allow a member of 
the Selected Reserve of the Ready Reserve who is involuntarily 
separated from the Selected Reserve as a result of the exercise of the 
force shaping authority of the Secretary concerned under section 647 of 
this title or other force shaping authority during the period beginning 
on October 1, 2007, and ending on December 31, 2012, to continue to use 
commissary and exchange stores during the two-year period beginning on 
the date of the involuntary separation of the member in the same manner 
as a member on active duty. The Secretary of Homeland Security shall 
implement this provision for Coast Guard members involuntarily 
separated during the same period.''.

SEC. 652. AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY OF EMPLOYEES 
              OF NONAPPROPRIATED FUND INSTRUMENTALITIES TO COLLECT 
              INDEBTEDNESS TO THE UNITED STATES.

    Section 5514 of title 5, United States Code, is amended--
        (1) in subsection (a)(5), by inserting ``any nonappropriated 
    fund instrumentality described in section 2105(c) of this title,'' 
    after ``Commission,''; and
        (2) by adding at the end the following new subsection:
    ``(e) An employee of a nonappropriated fund instrumentality 
described in section 2105(c) of this title is deemed an employee 
covered by this section.''.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

SEC. 661. CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
              AUTHORITIES OF THE UNIFORMED SERVICES.

    (a) Consolidation.--Chapter 5 of title 37, United States Code, is 
amended--
        (1) by inserting before section 301 the following subchapter 
    heading:

    ``SUBCHAPTER I--EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                             AUTHORITIES'';

    and
        (2) by adding at the end the following new subchapters:

``SUBCHAPTER II--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                              AUTHORITIES

``Sec. 331. General bonus authority for enlisted members

    ``(a) Authority to Provide Bonus.--The Secretary concerned may pay 
a bonus under this section to a person, including a member of the armed 
forces, who--
        ``(1) enlists in an armed force;
        ``(2) enlists in or affiliates with a reserve component of an 
    armed force;
        ``(3) reenlists, voluntarily extends an enlistment, or 
    otherwise agrees to serve--
            ``(A) for a specified period in a designated career field, 
        skill, or unit of an armed force; or
            ``(B) under other conditions of service in an armed force;
        ``(4) transfers from a regular component of an armed force to a 
    reserve component of that same armed force or from a reserve 
    component of an armed force to the regular component of that same 
    armed force; or
        ``(5) transfers from a regular component or reserve component 
    of an armed force to a regular component or reserve component of 
    another armed force, subject to the approval of the Secretary with 
    jurisdiction over the armed force to which the member is 
    transferring.
    ``(b) Service Eligibility.--A bonus authorized by subsection (a) 
may be paid to a person or member only if the person or member agrees 
under subsection (d)--
        ``(1) to serve for a specified period in a designated career 
    field, skill, unit, or grade; or
        ``(2) to meet some other condition or conditions of service 
    imposed by the Secretary concerned.
    ``(c) Maximum Amount and Method of Payment.--
        ``(1) Maximum amount.--The Secretary concerned shall determine 
    the amount of a bonus to be paid under this section, except that--
            ``(A) a bonus paid under paragraph (1) or (2) of subsection 
        (a) may not exceed $50,000 for a minimum two-year period of 
        obligated service agreed to under subsection (d);
            ``(B) a bonus paid under paragraph (3) of subsection (a) 
        may not exceed $30,000 for each year of obligated service in a 
        regular component agreed to under subsection (d);
            ``(C) a bonus paid under paragraph (3) of subsection (a) 
        may not exceed $15,000 for each year of obligated service in a 
        reserve component agreed to under subsection (d); and
            ``(D) a bonus paid under paragraph (4) or (5) of subsection 
        (a) may not exceed $10,000.
        ``(2) Lump sum or installments.--A bonus under this section may 
    be paid in a lump sum or in periodic installments, as determined by 
    the Secretary concerned.
        ``(3) Fixing bonus amount.--Upon acceptance by the Secretary 
    concerned of the written agreement required by subsection (d), the 
    total amount of the bonus to be paid under the agreement shall be 
    fixed.
    ``(d) Written Agreement.--To receive a bonus under this section, a 
person or member determined to be eligible for the bonus shall enter 
into a written agreement with the Secretary concerned that specifies--
        ``(1) the amount of the bonus;
        ``(2) the method of payment of the bonus under subsection 
    (c)(2);
        ``(3) the period of obligated service; and
        ``(4) the type or conditions of the service.
    ``(e) Relationship to Other Pay and Allowances.--A bonus paid to a 
person or member under this section is in addition to any other pay and 
allowance to which the person or member is entitled.
    ``(f) Relationship to Prohibition on Bounties.--A bonus authorized 
under this section is not a bounty for purposes of section 514(a) of 
title 10.
    ``(g) Repayment.--A person or member who receives a bonus under 
this section and who fails to complete the period of service, or meet 
the conditions of service, for which the bonus is paid, as specified in 
the written agreement under subsection (d), shall be subject to the 
repayment provisions of section 373 of this title.
    ``(h) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

``Sec. 332. General bonus authority for officers

    ``(a) Authority To Provide Bonus.--The Secretary concerned may pay 
a bonus under this section to a person, including an officer in the 
uniformed services, who--
        ``(1) accepts a commission or appointment as an officer in a 
    uniformed service;
        ``(2) affiliates with a reserve component of a uniformed 
    service;
        ``(3) agrees to remain on active duty or to serve in an active 
    status for a specific period as an officer in a uniformed service;
        ``(4) transfers from a regular component of a uniformed service 
    to a reserve component of that same uniformed service or from a 
    reserve component of a uniformed service to the regular component 
    of that same uniformed service; or
        ``(5) transfers from a regular component or reserve component 
    of a uniformed service to a regular component or reserve component 
    of another uniformed service, subject to the approval of the 
    Secretary with jurisdiction over the uniformed service to which the 
    member is transferring.
    ``(b) Service Eligibility.--A bonus authorized by subsection (a) 
may be paid to a person or officer only if the person or officer agrees 
under subsection (d)--
        ``(1) to serve for a specified period in a designated career 
    field, skill, unit, or grade; or
        ``(2) to meet some other condition or conditions of service 
    imposed by the Secretary concerned.
    ``(c) Maximum Amount and Method of Payment.--
        ``(1) Maximum amount.--The Secretary concerned shall determine 
    the amount of a bonus to be paid under this section, except that--
            ``(A) a bonus paid under paragraph (1) of subsection (a) 
        may not exceed $60,000 for a minimum three-year period of 
        obligated service agreed to under subsection (d);
            ``(B) a bonus paid under paragraph (2) of subsection (a) 
        may not exceed $12,000 for a minimum three-year period of 
        obligated service agreed to under subsection (d);
            ``(C) a bonus paid under paragraph (3) of subsection (a) 
        may not exceed $50,000 for each year of obligated service in a 
        regular component agreed to under subsection (d);
            ``(D) a bonus paid under paragraph (3) of subsection (a) 
        may not exceed $12,000 for each year of obligated service in a 
        reserve component agreed to under subsection (d); and
            ``(E) a bonus paid under paragraph (4) or (5) of subsection 
        (a) may not exceed $10,000.
        ``(2) Lump sum or installments.--A bonus under this section may 
    be paid in a lump sum or in periodic installments, as determined by 
    the Secretary concerned.
        ``(3) Fixing bonus amount.--Upon acceptance by the Secretary 
    concerned of the written agreement required by subsection (d), the 
    total amount of the bonus to be paid under the agreement shall be 
    fixed.
    ``(d) Written Agreement.--To receive a bonus under this section, a 
person or officer determined to be eligible for the bonus shall enter 
into a written agreement with the Secretary concerned that specifies--
        ``(1) the amount of the bonus;
        ``(2) the method of payment of the bonus under subsection 
    (c)(2);
        ``(3) the period of obligated service; and
        ``(4) the type or conditions of the service.
    ``(e) Relationship to Other Pay and Allowances.--The bonus paid to 
a person or officer under this section is in addition to any other pay 
and allowance to which the person or officer is entitled.
    ``(f) Repayment.--A person or officer who receives a bonus under 
this section and who fails to complete the period of service, or meet 
the conditions of service, for which the bonus is paid, as specified in 
the written agreement under subsection (d), shall be subject to the 
repayment provisions of section 373 of this title.
    ``(g) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

``Sec. 333. Special bonus and incentive pay authorities for nuclear 
            officers

    ``(a) Nuclear Officer Bonus.--The Secretary of the Navy may pay a 
nuclear officer bonus under this section to a person, including an 
officer in the Navy, who--
        ``(1) is selected for the officer naval nuclear power training 
    program in connection with the supervision, operation, and 
    maintenance of naval nuclear propulsion plants and agrees to serve, 
    upon completion of such training, on active duty in connection with 
    the supervision, operation, and maintenance of naval nuclear 
    propulsion plants; or
        ``(2) has the current technical and operational qualification 
    for duty in connection with the supervision, operation, and 
    maintenance of naval nuclear propulsion plants and agrees to remain 
    on active duty in connection with the supervision, operation, and 
    maintenance of naval nuclear propulsion plants.
    ``(b) Nuclear Officer Incentive Pay.--The Secretary of the Navy may 
pay nuclear officer incentive pay under this section to an officer in 
the Navy who--
        ``(1) is entitled to basic pay under section 204 of this title; 
    and
        ``(2) remains on active duty for a specified period while 
    maintaining current technical and operational qualifications, as 
    approved by the Secretary, for duty in connection with the 
    supervision, operation, and maintenance of naval nuclear propulsion 
    plants.
    ``(c) Additional Eligibility Criteria.--The Secretary of the Navy 
may impose such additional criteria for the receipt of a nuclear 
officer bonus or nuclear officer incentive pay under this section as 
the Secretary determines to be appropriate.
    ``(d) Maximum Amount and Method of Payment.--
        ``(1) Maximum amount.--The Secretary of the Navy shall 
    determine the amounts of a nuclear officer bonus or nuclear officer 
    incentive pay to be paid under this section, except that--
            ``(A) a nuclear officer bonus paid under subsection (a) may 
        not exceed $35,000 for each 12-month period of the agreement 
        under subsection (e); and
            ``(B) the amount of nuclear officer incentive paid under 
        subsection (b) may not exceed $25,000 for each 12-month period 
        of qualifying service.
        ``(2) Lump sum or installments.--A nuclear officer bonus or 
    nuclear officer incentive pay under this section may be paid in a 
    lump sum or in periodic installments.
        ``(3) Fixing bonus amount.--Upon acceptance by the Secretary 
    concerned of the written agreement required by subsection (e), the 
    total amount of the nuclear officer bonus to be paid under the 
    agreement shall be fixed.
    ``(e) Written Agreement for Bonus.--
        ``(1) Agreement required.--To receive a nuclear officer bonus 
    under subsection (a), a person or officer determined to be eligible 
    for the bonus shall enter into a written agreement with the 
    Secretary of the Navy that specifies--
            ``(A) the amount of the bonus;
            ``(B) the method of payment of the bonus under subsection 
        (d)(2);
            ``(C) the period of obligated service; and
            ``(D) the type or conditions of the service.
        ``(2) Replacement agreement.--An officer who is performing 
    obligated service under an agreement for a nuclear officer bonus 
    may execute a new agreement to replace the existing agreement if 
    the amount to be paid under the new agreement will be higher than 
    the amount to be paid under the existing agreement. The period of 
    the new agreement shall be equal to or exceed the remaining term of 
    the period of the officer's existing agreement. If a new agreement 
    is executed under this paragraph, the existing agreement shall be 
    cancelled, effective on the day before an anniversary date of the 
    existing agreement occurring after the date on which the amount to 
    be paid under this paragraph is increased.
    ``(f) Relationship to Other Pay and Allowances.--A nuclear officer 
bonus or nuclear officer incentive pay paid to a person or officer 
under this section is in addition to any other pay and allowance to 
which the person or officer is entitled, except that a person or 
officer may not receive a payment under this section and section 332 or 
353 of this title for the same skill and period of service.
    ``(g) Repayment.--A person or officer who receives a nuclear 
officer bonus or nuclear officer incentive pay under this section and 
who fails to complete the officer naval nuclear power training program, 
maintain required technical and operational qualifications, complete 
the period of service, or meet the types or conditions of service for 
which the bonus or incentive pay is paid, as specified in the written 
agreement under subsection (e) in the case of a nuclear officer bonus, 
shall be subject to the repayment provisions of section 373 of this 
title.
    ``(h) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of the Navy.
    ``(i) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

``Sec. 334. Special aviation incentive pay and bonus authorities for 
            officers

    ``(a) Aviation Incentive Pay.--The Secretary concerned may pay 
aviation incentive pay under this section to an officer in a regular or 
reserve component of a uniformed service who--
        ``(1) is entitled to basic pay under section 204 of this title 
    or compensation under section 206 of this title;
        ``(2) maintains, or is in training leading to, an aeronautical 
    rating or designation that qualifies the officer to engage in 
    operational flying duty or proficiency flying duty;
        ``(3) engages in, or is in training leading to, frequent and 
    regular performance of operational flying duty or proficiency 
    flying duty;
        ``(4) engages in or remains in aviation service for a specified 
    period; and
        ``(5) meets such other criteria as the Secretary concerned 
    determines appropriate.
    ``(b) Aviation Bonus.--The Secretary concerned may pay an aviation 
bonus under this section to an officer in a regular or reserve 
component of a uniformed service who--
        ``(1) is entitled to aviation incentive pay under subsection 
    (a);
        ``(2) has completed any active duty service commitment incurred 
    for undergraduate aviator training or is within one year of 
    completing such commitment;
        ``(3) executes a written agreement to remain on active duty in 
    a regular component or to serve in an active status in a reserve 
    component in aviation service for at least one year; and
        ``(4) meets such other criteria as the Secretary concerned 
    determines appropriate.
    ``(c) Maximum Amount and Method of Payment.--
        ``(1) Maximum amount.--The Secretary concerned shall determine 
    the amount of a bonus or incentive pay to be paid under this 
    section, except that--
            ``(A) aviation incentive pay under subsection (a) shall be 
        paid at a monthly rate, not to exceed $850 per month; and
            ``(B) an aviation bonus under subsection (b) may not exceed 
        $25,000 for each 12-month period of obligated service agreed to 
        under subsection (d).
        ``(2) Lump sum or installments.--A bonus under this section may 
    be paid in a lump sum or in periodic installments, as determined by 
    the Secretary concerned.
        ``(3) Fixing bonus amount.--Upon acceptance by the Secretary 
    concerned of the written agreement required by subsection (d), the 
    total amount of the bonus to be paid under the agreement shall be 
    fixed.
    ``(d) Written Agreement for Bonus.--To receive an aviation officer 
bonus under this section, an officer determined to be eligible for the 
bonus shall enter into a written agreement with the Secretary concerned 
that specifies--
        ``(1) the amount of the bonus;
        ``(2) the method of payment of the bonus under subsection 
    (c)(2);
        ``(3) the period of obligated service; and
        ``(4) the type or conditions of the service.
    ``(e) Reserve Component Officers Performing Inactive Duty 
Training.--A reserve component officer who is entitled to compensation 
under section 206 of this title and who is authorized aviation 
incentive pay under this section may be paid an amount of incentive pay 
that is proportionate to the compensation received under section 206 
for inactive-duty training.
    ``(f) Relationship to Other Pay and Allowances.--
        ``(1) Aviation incentive pay.--Aviation incentive pay paid to 
    an officer under subsection (a) shall be in addition to any other 
    pay and allowance to which the officer is entitled, except that an 
    officer may not receive a payment under such subsection and section 
    351 or 353 of this title for the same skill and period of service.
        ``(2) Aviation bonus.--An aviation bonus paid to an officer 
    under subsection (b) shall be in addition to any other pay and 
    allowance to which the officer is entitled, except that an officer 
    may not receive a payment under such subsection and section 332 or 
    353 of this title for the same skill and period of service.
    ``(g) Repayment.--An officer who receives aviation incentive pay or 
an aviation bonus under this section and who fails to fulfill the 
eligibility requirements for the receipt of the incentive pay or bonus 
or complete the period of service for which the incentive pay or bonus 
is paid, as specified in the written agreement under subsection (d) in 
the case of a bonus, shall be subject to the repayment provisions of 
section 373 of this title.
    ``(h) Definitions.--In this section:
        ``(1) The term `aviation service' means service performed by an 
    officer in a regular or reserve component (except a flight surgeon 
    or other medical officer) while holding an aeronautical rating or 
    designation or while in training to receive an aeronautical rating 
    or designation.
        ``(2) The term `operational flying duty' means flying performed 
    under competent orders by rated or designated regular or reserve 
    component officers while serving in assignments in which basic 
    flying skills normally are maintained in the performance of 
    assigned duties as determined by the Secretary concerned, and 
    flying performed by members in training that leads to the award of 
    an aeronautical rating or designation.
        ``(3) The term `proficiency flying duty' means flying performed 
    under competent orders by rated or designated regular or reserve 
    component officers while serving in assignments in which such 
    skills would normally not be maintained in the performance of 
    assigned duties.
        ``(4) The term `officer' includes an individual enlisted and 
    designated as an aviation cadet under section 6911 of title 10.
    ``(i) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

``Sec. 335. Special bonus and incentive pay authorities for officers in 
            health professions

    ``(a) Health Professions Bonus.--The Secretary concerned may pay a 
health professions bonus under this section to a person, including an 
officer in the uniformed services, who is a graduate of an accredited 
school in a health profession and who--
        ``(1) accepts a commission or appointment as an officer in a 
    regular or reserve component of a uniformed service, or affiliates 
    with a reserve component of a uniformed service, and agrees to 
    serve on active duty in a regular component or in an active status 
    in a reserve component in a health profession;
        ``(2) accepts a commission or appointment as an officer and 
    whose health profession specialty is designated by the Secretary of 
    Defense as a critically short wartime specialty; or
        ``(3) agrees to remain on active duty or continue serving in an 
    active status in a reserve component in a health profession.
    ``(b) Health Professions Incentive Pay.--The Secretary concerned 
may pay incentive pay under this section to an officer in a regular or 
reserve component of a uniformed service who--
        ``(1) is entitled to basic pay under section 204 of this title 
    or compensation under section 206 of this title; and
        ``(2) is serving on active duty or in an active status in a 
    designated health profession specialty or skill.
    ``(c) Board Certification Incentive Pay.--The Secretary concerned 
may pay board certification incentive pay under this section to an 
officer in a regular or reserve component of a uniformed service who--
        ``(1) is entitled to basic pay under section 204 of this title 
    or compensation under section 206 of this title;
        ``(2) is board certified in a designated health profession 
    specialty or skill; and
        ``(3) is serving on active duty or in an active status in such 
    designated health profession specialty or skill.
    ``(d) Additional Eligibility Criteria.--The Secretary concerned may 
impose such additional criteria for the receipt of a bonus or incentive 
pay under this section as the Secretary determines to be appropriate.
    ``(e) Maximum Amount and Method of Payment.--
        ``(1) Maximum amount.--The Secretary concerned shall determine 
    the amounts of a bonus or incentive pay to be paid under this 
    section, except that--
            ``(A) a health professions bonus paid under paragraph (1) 
        of subsection (a) may not exceed $30,000 for each 12-month 
        period of obligated service agreed to under subsection (f);
            ``(B) a health professions bonus paid under paragraph (2) 
        of subsection (a) may not exceed $100,000 for each 12-month 
        period of obligated service agreed to under subsection (f);
            ``(C) a health professions bonus paid under paragraph (3) 
        of subsection (a) may not exceed $75,000 for each 12-month 
        period of obligated service agreed to under subsection (f);
            ``(D) health professions incentive pay under subsection (b) 
        may be paid monthly and may not exceed, in any 12-month 
        period--
                ``(i) $100,000 for medical officers and dental 
            surgeons; and
                ``(ii) $15,000 for officers in other health 
            professions; and
            ``(E) board certification incentive pay under subsection 
        (c) may not exceed $6,000 for each 12-month period an officer 
        remains certified in the designated health profession specialty 
        or skill.
        ``(2) Lump sum or installments.--A health professions bonus 
    under subsection (a) may be paid in a lump sum or in periodic 
    installments, as determined by the Secretary concerned. Board 
    certification incentive pay under subsection (c) may be paid 
    monthly, in a lump sum at the beginning of the certification 
    period, or in periodic installments during the certification 
    period, as determined by the Secretary concerned.
        ``(3) Fixing bonus amount.--Upon acceptance by the Secretary 
    concerned of the written agreement required by subsection (f), the 
    total amount of the health professions bonus to be paid under the 
    agreement shall be fixed.
    ``(f) Written Agreement for Bonus.--To receive a bonus under this 
section, an officer determined to be eligible for the bonus shall enter 
into a written agreement with the Secretary concerned that specifies--
        ``(1) the amount of the bonus;
        ``(2) the method of payment of the bonus under subsection 
    (e)(2);
        ``(3) the period of obligated service;
        ``(4) whether the service will be performed on active duty or 
    in an active status in a reserve component; and
        ``(5) the type or conditions of the service.
    ``(g) Reserve Component Officers.--An officer in a reserve 
component authorized incentive pay under subsection (b) or (c) who is 
not serving on continuous active duty and is entitled to compensation 
under section 204 of this title or compensation under section 206 of 
this title may be paid a monthly amount of incentive pay that is 
proportionate to the basic pay or compensation received under this 
title.
    ``(h) Relationship to Other Pay and Allowances.--
        ``(1) Health professions bonus.--A bonus paid to a person or 
    officer under subsection (a) shall be in addition to any other pay 
    and allowance to which the person or officer is entitled, except 
    that a person or officer may not receive a payment under such 
    subsection and section 332 of this title for the same period of 
    obligated service.
        ``(2) Health professions incentive pay.--Incentive pay paid to 
    an officer under subsection (b) shall be in addition to any other 
    pay and allowance to which an officer is entitled, except that an 
    officer may not receive a payment under such subsection and section 
    353 of this title for the same skill and period of service.
        ``(3) Board certification incentive pay.--Incentive pay paid to 
    an officer under subsection (c) shall be in addition to any other 
    pay and allowance to which an officer is entitled, except that an 
    officer may not receive a payment under such subsection and section 
    353(b) of this title for the same skill and period of service 
    covered by the certification.
    ``(i) Repayment.--An officer who receives a bonus or incentive pay 
under this section and who fails to fulfill the eligibility 
requirements for the receipt of the bonus or incentive pay or complete 
the period of service for which the bonus or incentive pay is paid, as 
specified in the written agreement under subsection (f) in the case of 
a bonus, shall be subject to the repayment provisions of section 373 of 
this title.
    ``(j) Health Profession Defined.--In this section, the term `health 
profession' means the following:
        ``(1) Any health profession performed by officers in the 
    Medical Corps of a uniformed service or by officers designated as a 
    medical officer.
        ``(2) Any health profession performed by officers in the Dental 
    Corps of a uniformed service or by officers designated as a dental 
    officer.
        ``(3) Any health profession performed by officers in the 
    Medical Service Corps of a uniformed service or by officers 
    designated as a medical service officer or biomedical sciences 
    officer.
        ``(4) Any health profession performed by officers in the 
    Medical Specialist Corps of a uniformed service or by officers 
    designated as a medical specialist.
        ``(5) Any health profession performed by officers of the Nurse 
    Corps of a uniformed service or by officers designated as a nurse.
        ``(6) Any health profession performed by officers in the 
    Veterinary Corps of a uniformed service or by officers designated 
    as a veterinary officer.
        ``(7) Any health profession performed by officers designated as 
    a physician assistant.
        ``(8) Any health profession performed by officers in the 
    regular or reserve corps of the Public Health Service.
    ``(k) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

``Sec. 351. Hazardous duty pay

    ``(a) Hazardous Duty Pay.--The Secretary concerned may pay 
hazardous duty pay under this section to a member of a regular or 
reserve component of the uniformed services entitled to basic pay under 
section 204 of this title or compensation under section 206 of this 
title who--
        ``(1) performs duty in a hostile fire area designated by the 
    Secretary concerned, is exposed to a hostile fire event, explosion 
    of a hostile explosive device, or any other hostile action, or is 
    on duty during a month in an area in which a hostile event occurred 
    which placed the member in grave danger of physical injury;
        ``(2) performs duty designated by the Secretary concerned as 
    hazardous duty based upon the inherent dangers of that duty and 
    risks of physical injury; or
        ``(3) performs duty in a foreign area designated by the 
    Secretary concerned as an area in which the member is subject to 
    imminent danger of physical injury due to threat conditions.
    ``(b) Maximum Amount.--The amount of hazardous duty pay paid to a 
member under subsection (a) shall be based on the type of duty and the 
area in which the duty is performed, as follows:
        ``(1) In the case of a member who performs duty in a designated 
    hostile fire area, as described in subsection (a)(1), hazardous 
    duty pay may not exceed $450 per month.
        ``(2) In the case of a member who performs a designated 
    hazardous duty, as described in subsection (a)(2), hazardous duty 
    pay may not exceed $250 per month.
        ``(3) In the case of a member who performs duty in a foreign 
    area designated as an imminent danger area, as described in 
    subsection (a)(3), hazardous duty pay may not exceed $250 per 
    month.
    ``(c) Method of Payment.--Hazardous duty pay shall be paid on a 
monthly basis. A member who is eligible for hazardous duty pay by 
reason of subsection (a) shall receive the full monthly rate of 
hazardous duty pay authorized by the Secretary concerned under such 
paragraph, notwithstanding subsection (d).
    ``(d) Reserve Component Members Performing Inactive Duty 
Training.--A member of a reserve component entitled to compensation 
under section 206 of this title who is authorized hazardous duty pay 
under this section may be paid an amount of hazardous duty pay that is 
proportionate to the compensation received by the member under section 
206 of this title for inactive-duty training.
    ``(e) Administration and Retroactive Payments.--The effective date 
for the designation of a hostile fire area, as described in paragraph 
(1) of subsection (a), and for the designation of a foreign area as an 
imminent danger area, as described in paragraph (3) of such subsection, 
may be a date that occurs before, on, or after the actual date of the 
designation by the Secretary concerned.
    ``(f) Determination of Fact.--Any determination of fact that is 
made in administering subsection (a) is conclusive. The determination 
may not be reviewed by any other officer or agency of the United States 
unless there has been fraud or gross negligence. However, the Secretary 
concerned may change the determination on the basis of new evidence or 
for other good cause. The regulations prescribed to administer this 
section shall define the activities that are considered hazardous for 
purposes of subsection (a)(2).
    ``(g) Relationship to Other Pay and Allowances.--
        ``(1) In addition to other pay and allowances.--A member may be 
    paid hazardous duty pay under this section in addition to any other 
    pay and allowances to which the member is entitled. The regulations 
    prescribed to administer this section shall address dual 
    compensation under this section for multiple circumstances 
    involving performance of a designated hazardous duty, as described 
    in paragraph (2) of subsection (a), or for duty in certain 
    designated areas, as described in paragraph (1) or (3) of such 
    subsection, that is performed by a member during a single month of 
    service.
        ``(2) Limitation.--A member may not receive hazardous duty pay 
    under this section for a month for more than three qualifying 
    instances described in subsection (a)(2).
    ``(h) Prohibition on Variable Rates.--The regulations prescribed to 
administer this section may not include varied criteria or rates for 
payment of hazardous duty for officers and enlisted members.
    ``(i) Termination of Authority.--No hazardous duty pay under this 
section may be paid after December 31, 2009.

``Sec. 352. Assignment pay or special duty pay

    ``(a) Assignment or Special Duty Pay Authorized.--The Secretary 
concerned may pay assignment or special duty pay under this section to 
a member of a regular or reserve component of the uniformed services 
who--
        ``(1) is entitled to basic pay under section 204 of this title 
    or compensation under section 206 of this title; and
        ``(2) performs duties in an assignment, location, or unit 
    designated by, and under the conditions of service specified by, 
    the Secretary concerned.
    ``(b) Maximum Amount and Method of Payment.--
        ``(1) Lump sum or installments.--Assignment or special duty pay 
    under subsection (a) may be paid monthly, in a lump sum, or in 
    periodic installments other than monthly, as determined by the 
    Secretary concerned.
        ``(2) Maximum monthly amount.--The maximum monthly amount of 
    assignment or special duty pay may not exceed $5,000.
        ``(3) Maximum lump sum amount.--The amount of a lump sum 
    payment of assignment or special duty pay payable to a member may 
    not exceed the amount equal to the product of--
            ``(A) the maximum monthly rate authorized under paragraph 
        (2) at the time the member enters into a written agreement 
        under subsection (c); and
            ``(B) the number of continuous months in the period for 
        which assignment or special duty pay will be paid pursuant to 
        the agreement.
        ``(4) Maximum installment amount.--The amount of each 
    installment payment of assignment or special duty pay payable to a 
    member on an installment basis may not exceed the amount equal to--
            ``(A) the product of--
                ``(i) a monthly rate specified in the written agreement 
            entered into under subsection (c), which monthly rate may 
            not exceed the maximum monthly rate authorized under 
            paragraph (2) at the time the member enters into the 
            agreement; and
                ``(ii) the number of continuous months in the period 
            for which the assignment or special duty pay will be paid; 
            divided by
            ``(B) the number of installments over such period.
        ``(5) Effect of extension.--If a member extends an assignment 
    or performance of duty specified in an agreement with the Secretary 
    concerned under subsection (c), assignment or special duty pay for 
    the period of the extension may be paid on a monthly basis, in a 
    lump sum, or in installments, consistent with this subsection.
    ``(c) Written Agreement.--
        ``(1) Discretionary for monthly payments.--The Secretary 
    concerned may require a member to enter into a written agreement 
    with the Secretary in order to qualify for the payment of 
    assignment or special duty pay on a monthly basis. The written 
    agreement shall specify the period for which the assignment or 
    special duty pay will be paid to the member and the monthly rate of 
    the assignment or special duty pay.
        ``(2) Required for lump sum or installment payments.--The 
    Secretary concerned shall require a member to enter into a written 
    agreement with the Secretary in order to qualify for payment of 
    assignment or special duty pay on a lump sum or installment basis. 
    The written agreement shall specify the period for which the 
    assignment or special duty pay will be paid to the member and the 
    amount of the lump sum or each periodic installment.
    ``(d) Reserve Component Members Performing Inactive Duty 
Training.--A member of a reserve component entitled to compensation 
under section 206 of this title who is authorized assignment or special 
duty pay under this section may be paid an amount of assignment or 
special duty pay that is proportionate to the compensation received by 
the member under section 206 of this title for inactive-duty training.
    ``(e) Relationship to Other Pay and Allowances.--Assignment or 
special duty pay paid to a member under this section is in addition to 
any other pay and allowances to which the member is entitled.
    ``(f) Repayment.--A member who receives assignment or special duty 
pay under this section and who fails to fulfill the eligibility 
requirements under subsection (a) for receipt of such pay shall be 
subject to the repayment provisions of section 373 of this title.
    ``(g) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

``Sec. 353. Skill incentive pay or proficiency bonus

    ``(a) Skill Incentive Pay.--The Secretary concerned may pay a 
monthly skill incentive pay to a member of a regular or reserve 
component of the uniformed services who--
        ``(1) is entitled to basic pay under section 204 of this title 
    or compensation under section 206 of this title; and
        ``(2) serves in a career field or skill designated as critical 
    by the Secretary concerned.
    ``(b) Skill Proficiency Bonus.--The Secretary concerned may pay a 
proficiency bonus to a member of a regular or reserve component of the 
uniformed services who--
        ``(1) is entitled to basic pay under section 204 of this title 
    or compensation under section 206 of this title; and
        ``(2) is determined to have, and maintains, certified 
    proficiency under subsection (d) in a skill designated as critical 
    by the Secretary concerned.
    ``(c) Maximum Amounts and Methods of Payment.--
        ``(1) Skill incentive pay.--Skill incentive pay under 
    subsection (a) shall be paid monthly in an amount not to exceed 
    $1,000 per month.
        ``(2) Proficiency bonus.--A proficiency bonus under subsection 
    (b) may be paid in a lump sum at the beginning of the proficiency 
    certification period or in periodic installments during the 
    proficiency certification period. The amount of the bonus may not 
    exceed $12,000 for each 12-month period of certification. The 
    Secretary concerned may not vary the criteria or rates for the 
    proficiency bonus paid for officers and enlisted members.
    ``(d) Certified Proficiency for Proficiency Bonus.--
        ``(1) Certification required.--Proficiency in a designated 
    critical skill for purposes of subsection (b) shall be subject to 
    annual certification by the Secretary concerned.
        ``(2) Duration of certification.--A certification period for 
    purposes of subsection (c)(2) shall expire at the end of the one-
    year period beginning on the first day of the first month beginning 
    on or after the certification date.
        ``(3) Waiver.--Notwithstanding paragraphs (1) and (2), the 
    regulations prescribed to administer this section shall address the 
    circumstances under which the Secretary concerned may waive the 
    certification requirement under paragraph (1) or extend a 
    certification period under paragraph (2).
    ``(e) Written Agreement.--
        ``(1) Discretionary for skill incentive pay.--The Secretary 
    concerned may require a member to enter into a written agreement 
    with the Secretary in order to qualify for the payment of skill 
    incentive pay under subsection (a). The written agreement shall 
    specify the period for which the skill incentive pay will be paid 
    to the member and the monthly rate of the pay.
        ``(2) Required for proficiency bonus.--The Secretary concerned 
    shall require a member to enter into a written agreement with the 
    Secretary in order to qualify for payment of a proficiency bonus 
    under subsection (b). The written agreement shall specify the 
    amount of the proficiency bonus, the period for which the bonus 
    will be paid, and the initial certification or recertification 
    necessary for payment of the proficiency bonus.
    ``(f) Reserve Component Members Performing Inactive Duty 
Training.--
        ``(1) Proration.--A member of a reserve component entitled to 
    compensation under section 206 of this title who is authorized 
    skill incentive pay under subsection (a) or a skill proficiency 
    bonus under subsection (b) may be paid an amount of the pay or 
    bonus, as the case may be, that is proportionate to the 
    compensation received by the member under section 206 of this title 
    for inactive-duty training.
        ``(2) Exception for foreign language proficiency.--No reduction 
    in the amount of a skill proficiency bonus may be made under 
    paragraph (1) in the case of a member of a reserve component who is 
    authorized the bonus because of the member's proficiency in a 
    foreign language.
    ``(g) Repayment.--A member who receives skill incentive pay or a 
proficiency bonus under this section and who fails to fulfill the 
eligibility requirement for receipt of the pay or bonus shall be 
subject to the repayment provisions of section 373 of this title.
    ``(h) Relationship to Other Pays and Allowances.--A member may not 
be paid more than one pay under this section in any month for the same 
period of service and skill. A member may be paid skill incentive pay 
or the proficiency bonus under this section in addition to any other 
pay and allowances to which the member is entitled, except that a 
member may not be paid skill incentive pay or a proficiency bonus under 
this section and hazardous duty pay under section 351 of this title for 
the same period of service in the same career field or skill.
    ``(i) Termination of Authority.--No agreement may be entered into 
under this section after December 31, 2009.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

``Sec. 371. Relationship to other incentives and pays

    ``(a) Treatment.--A bonus or incentive pay paid to a member of the 
uniformed services under subchapter II is in addition to any other pay 
and allowance to which a member is entitled, unless otherwise provided 
under this chapter.
    ``(b) Exception.--A member may not receive a bonus or incentive pay 
under both subchapter I and subchapter II for the same activity, skill, 
or period of service.
    ``(c) Relationship to Other Computations.--The amount of a bonus or 
incentive pay to which a member is entitled under subchapter II may not 
be included in computing the amount of--
        ``(1) any increase in pay authorized by any other provision of 
    this title; or
        ``(2) any retired pay, retainer pay, separation pay, or 
    disability severance pay.

``Sec. 372. Continuation of pays during hospitalization and 
            rehabilitation resulting from wounds, injury, or illness 
            incurred while on duty in a hostile fire area or exposed to 
            an event of hostile fire or other hostile action

    ``(a) Continuation of Pays.--If a member of a regular or reserve 
component of a uniformed service incurs a wound, injury, or illness in 
the line of duty while serving in a combat operation or a combat zone, 
while serving in a hostile fire area, or while exposed to a hostile 
fire event, as described under section 351 of this title, and is 
hospitalized for treatment of the wound, injury, or illness, the 
Secretary concerned may continue to pay to the member, notwithstanding 
any provision of this chapter to the contrary, all pay and allowances 
(including any bonus, incentive pay, or similar benefit) that were 
being paid to the member at the time the member incurred the wound, 
injury, or illness.
    ``(b) Duration.--The payment of pay and allowances to a member 
under subsection (a) may continue until the end of the first month 
beginning after the earliest of the following dates:
        ``(1) The date on which the member is returned for assignment 
    to other than a medical or patient unit for duty.
        ``(2) One year after the date on which the member is first 
    hospitalized for the treatment of the wound, injury, or illness, 
    except that the Secretary concerned may extend the termination date 
    in six-month increments.
        ``(3) The date on which the member is discharged, separated, or 
    retired (including temporary disability retirement) from the 
    uniformed services.
    ``(c) Bonus, Incentive Pay, or Similar Benefit Defined.--In this 
section, the term `bonus, incentive pay, or similar benefit' means a 
bonus, incentive pay, special pay, or similar payment paid to a member 
of the uniformed services under this title or title 10.

``Sec. 373. Repayment of unearned portion of bonus, incentive pay, or 
            similar benefit when conditions of payment not met

    ``(a) Repayment.--Except as provided in subsection (b), a member of 
the uniformed services who is paid a bonus, incentive pay, or similar 
benefit, the receipt of which is contingent upon the member's 
satisfaction of certain service or eligibility requirements, shall 
repay to the United States any unearned portion of the bonus, incentive 
pay, or similar benefit if the member fails to satisfy any such service 
or eligibility requirement.
    ``(b) Exceptions.--The regulations prescribed to administer this 
section may specify procedures for determining the circumstances under 
which an exception to the required repayment may be granted.
    ``(c) Effect of Bankruptcy.--An obligation to repay the United 
States under this section is, for all purposes, a debt owed the United 
States. A discharge in bankruptcy under title 11 does not discharge a 
person from such debt if the discharge order is entered less than five 
years after--
        ``(1) the date of the termination of the agreement or contract 
    on which the debt is based; or
        ``(2) in the absence of such an agreement or contract, the date 
    of the termination of the service on which the debt is based.
    ``(d) Definitions.--In this section:
        ``(1) The term `bonus, incentive pay, or similar benefit' means 
    a bonus, incentive pay, special pay, or similar payment, or an 
    educational benefit or stipend, paid to a member of the uniformed 
    services under a provision of law that refers to the repayment 
    requirements of this section or section 303a(e) of this title.
        ``(2) The term `service', as used in subsection (c)(2), refers 
    to an obligation willingly undertaken by a member of the uniformed 
    services, in exchange for a bonus, incentive pay, or similar 
    benefit offered by the Secretary concerned--
            ``(A) to a member in a regular or reserve component who 
        remains on active duty or in an active status;
            ``(B) to perform duty in a specified skill, with or without 
        a specified qualification or credential;
            ``(C) to perform duty in a specified assignment, location 
        or unit; or
            ``(D) to perform duty for a specified period of time.

``Sec. 374. Regulations

    ``This subchapter and subchapter II shall be administered under 
regulations prescribed by--
        ``(1) the Secretary of Defense, with respect to the armed 
    forces under the jurisdiction of the Secretary of Defense;
        ``(2) the Secretary of Homeland Security, with respect to the 
    Coast Guard when it is not operating as a service in the Navy;
        ``(3) the Secretary of Health and Human Services, with respect 
    to the commissioned corps of the Public Health Service; and
        ``(4) the Secretary of Commerce, with respect to the National 
    Oceanic and Atmospheric Administration.''.
    (b) Transfer of 15-Year Career Status Bonus to Subchapter II.--
        (1) Transfer.--Section 322 of title 37, United States Code, is 
    transferred to appear after section 353 of subchapter II of chapter 
    5 of such title, as added by subsection (a), and is redesignated as 
    section 354.
        (2) Conforming amendment.--Subsection (f) of such section, as 
    so transferred and redesignated, is amended by striking ``section 
    303a(e)'' and inserting ``section 373''.
        (3) Cross references.--Sections 1401a, 1409(b)(2), and 1410 of 
    title 10, United States Code, are amended by striking ``section 
    322'' each place it appears and inserting ``section 322 (as in 
    effect before the enactment of the National Defense Authorization 
    Act for Fiscal Year 2008) or section 354''.
    (c) Transfer of Retention Incentives for Members Qualified in 
Critical Military Skills or Assigned to High Priority Units.--
        (1) Transfer.--Section 323 of title 37, United States Code, as 
    amended by sections 614 and 622, is transferred to appear after 
    section 354 of subchapter II of chapter 5 of such title, as 
    transferred and redesignated by subsection (b)(1), and is 
    redesignated as section 355.
        (2) Conforming amendment.--Subsection (g) of such section, as 
    so transferred and redesignated, is amended by striking ``section 
    303a(e)'' and inserting ``section 373''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of title 37, United States Code, is amended to read as 
follows:

     ``subchapter i--existing special pay, incentive pay, and bonus 
                               authorities

``Sec.
``301. Incentive pay: hazardous duty.
``301a. Incentive pay: aviation career.
``301b. Special pay: aviation career officers extending period of active 
          duty.
``301c. Incentive pay: submarine duty.
``301d. Multiyear retention bonus: medical officers of the armed forces.
``301e. Multiyear retention bonus: dental officers of the armed forces.
``302. Special pay: medical officers of the armed forces.
``302a. Special pay: optometrists.
``302b. Special pay: dental officers of the armed forces.
``302c. Special pay: psychologists and nonphysician health care 
          providers.
``302d. Special pay: accession bonus for registered nurses.
``302e. Special pay: nurse anesthetists.
``302f. Special pay: reserve, recalled, or retained health care 
          officers.
``302g. Special pay: Selected Reserve health care professionals in 
          critically short wartime specialties.
``302h. Special pay: accession bonus for dental officers.
``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.
``302k. Special pay: accession bonus for medical officers in critically 
          short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
          critically short wartime specialties.
``303. Special pay: veterinarians.
``303a. Special pay: general provisions.
``303b. Waiver of board certification requirements.
``304. Special pay: diving duty.
``305. Special pay: hardship duty pay.
``305a. Special pay: career sea pay.
``305b. Special pay: service as member of Weapons of Mass Destruction 
          Civil Support Team.
``306. Special pay: officers holding positions of unusual responsibility 
          and of critical nature.
``306a. Special pay: members assigned to international military 
          headquarters.
``307. Special pay: special duty assignment pay for enlisted members.
``307a. Special pay: assignment incentive pay.
``308. Special pay: reenlistment bonus.
``308b. Special pay: reenlistment bonus for members of the Selected 
          Reserve.
``308c. Special pay: bonus for affiliation or enlistment in the Selected 
          Reserve.
``308d. Special pay: members of the Selected Reserve assigned to certain 
          high priority units.
``308g. Special pay: bonus for enlistment in elements of the Ready 
          Reserve other than the Selected Reserve.
``308h. Special pay: bonus for reenlistment, enlistment, or voluntary 
          extension of enlistment in elements of the Ready Reserve other 
          than the Selected Reserve.
``308i. Special pay: prior service enlistment bonus.
``308j. Special pay: affiliation bonus for officers in the Selected 
          Reserve.
``309. Special pay: enlistment bonus.
``310. Special pay: duty subject to hostile fire or imminent danger.
``312. Special pay: nuclear-qualified officers extending period of 
          active duty.
``312b. Special pay: nuclear career accession bonus.
``312c. Special pay: nuclear career annual incentive bonus.
``314. Special pay or bonus: qualified members extending duty at 
          designated locations overseas.
``315. Special pay: engineering and scientific career continuation pay.
``316. Special pay: bonus for members with foreign language proficiency.
``317. Special pay: officers in critical acquisition positions extending 
          period of active duty.
``318. Special pay: special warfare officers extending period of active 
          duty.
``319. Special pay: surface warfare officer continuation pay.
``320. Incentive pay: career enlisted flyers.
``321. Special pay: judge advocate continuation pay.
``324. Special pay: accession bonus for new officers in critical skills.
``325. Incentive bonus: savings plan for education expenses and other 
          contingencies.
``326. Incentive bonus: conversion to military occupational specialty to 
          ease personnel shortage.
``327. Incentive bonus: transfer between armed forces.
``328. Combat-related injury rehabilitation pay.
``329. Incentive bonus: retired members and reserve component members 
          volunteering for high-demand, low-density assignments.
``330. Special pay: accession bonus for officer candidates.

 ``subchapter ii--consolidation of special pay, incentive pay, and bonus 
                               authorities

``331. General bonus authority for enlisted members.
``332. General bonus authority for officers.
``333. Special bonus and incentive pay authorities for nuclear officers.
``334. Special aviation incentive pay and bonus authorities for 
          officers.
``335. Special bonus and incentive pay authorities for officers in 
          health professions.
``351. Hazardous duty pay.
``352. Assignment pay or special duty pay.
``353. Skill incentive pay or proficiency bonus.
``354. Special pay: 15-year career status bonus for members entering 
          service on or after August 1, 1986.
``355. Special pay: retention incentives for members qualified in 
          critical military skills or assigned to high priority units.

                   ``subchapter iii--general provisions

``371. Relationship to other incentives and pays.
``372. Continuation of pays during hospitalization and rehabilitation 
          resulting from wounds, injury, or illness incurred while on 
          duty in a hostile fire area or exposed to an event of hostile 
          fire or other hostile action.
``373. Repayment of unearned portion of bonus, incentive pay, or similar 
          benefit when conditions of payment not met.
``374. Regulations.''.

SEC. 662. TRANSITIONAL PROVISIONS.

    (a) Implementation Plan.--
        (1) Development.--The Secretary of Defense shall develop a plan 
    to implement subchapters II and III of chapter 5 of title 37, 
    United States Code, as added by section 661(a), and to 
    correspondingly transition all of the special and incentive pay 
    programs for members of the uniformed services solely to provisions 
    of such subchapters.
        (2) Submission.--Not later than one year after the date of the 
    enactment of this Act, the Secretary shall submit the 
    implementation plan to the congressional defense committees.
    (b) Transition Period.--During a transition period of not more than 
10 years beginning on the date of the enactment of this Act, the 
Secretary of Defense, the Secretary of a military department, and the 
Secretaries referred to in subsection (d) may continue to use the 
authorities in provisions in subchapter I of chapter 5 of title 37, 
United States Code, as designated by section 661(a), but subject to the 
terms of such provisions and such modifications as the Secretary of 
Defense may include in the implementation plan, to provide bonuses and 
special and incentive pays for members of the uniformed services.
    (c) Notice of Implementation of New Authorities.--Not less than 30 
days before the date on which a special pay or bonus authority provided 
under subchapter II of chapter 5 of title 37, United States Code, as 
added by section 661(a), is first utilized, the Secretary of Defense 
shall submit to the congressional defense committees a notice of the 
implementation of the authority, including whether, as a result of 
implementation of the authority, a corresponding authority in 
subchapter I of such chapter, as designated by section 661(a), will no 
longer be used.
    (d) Coordination.--The Secretary of Defense shall prepare the 
implementation plan in coordination with--
        (1) the Secretary of Homeland Security, with respect to the 
    Coast Guard;
        (2) the Secretary of Health and Human Services, with respect to 
    the commissioned corps of the Public Health Service; and
        (3) the Secretary of Commerce, with respect to the National 
    Oceanic and Atmospheric Administration.
    (e) No Effect on Fiscal Year 2008 Obligations.--During fiscal year 
2008, obligations incurred under subchapters I, II, and III of chapter 
5 of title 37, United States Code, as amended by section 661, to 
provide bonuses, incentive pays, special pays, and similar payments to 
members of the uniformed services under such subchapters may not exceed 
the obligations that would be incurred in the absence of the amendments 
made by such section.

                       Subtitle G--Other Matters

SEC. 671. REFERRAL BONUS AUTHORITIES.

    (a) Codification and Modification of Army Referral Bonus 
Authority.--
        (1) Army referral bonus.--Chapter 333 of title 10, United 
    States Code, is amended by inserting after section 3251 the 
    following new section:

``Sec. 3252. Bonus to encourage Army personnel to refer persons for 
            enlistment in the Army

    ``(a) Authority To Pay Bonus.--
        ``(1) Authority.--The Secretary of the Army may pay a bonus 
    under this section to an individual referred to in paragraph (2) 
    who refers to an Army recruiter a person who has not previously 
    served in an armed force and who, after such referral, enlists in 
    the regular component of the Army or in the Army National Guard or 
    Army Reserve.
        ``(2) Individuals eligible for bonus.--Subject to subsection 
    (c), the following individuals are eligible for a referral bonus 
    under this section:
            ``(A) A member in the regular component of the Army.
            ``(B) A member of the Army National Guard.
            ``(C) A member of the Army Reserve.
            ``(D) A member of the Army in a retired status, including a 
        member under 60 years of age who, but for age, would be 
        eligible for retired pay.
            ``(E) A civilian employee of the Department of the Army.
    ``(b) Referral.--For purposes of this section, a referral for which 
a bonus may be paid under subsection (a) occurs--
        ``(1) when the individual concerned contacts an Army recruiter 
    on behalf of a person interested in enlisting in the Army; or
        ``(2) when a person interested in enlisting in the Army 
    contacts the Army recruiter and informs the recruiter of the role 
    of the individual concerned in initially recruiting the person.
    ``(c) Certain Referrals Ineligible.--
        ``(1) Referral of immediate family.--A member of the Army or 
    civilian employee of the Department of the Army may not be paid a 
    bonus under subsection (a) for the referral of an immediate family 
    member.
        ``(2) Members in recruiting roles.--A member of the Army or 
    civilian employee of the Department of the Army serving in a 
    recruiting or retention assignment, or assigned to other duties 
    regarding which eligibility for a bonus under subsection (a) could 
    (as determined by the Secretary) be perceived as creating a 
    conflict of interest, may not be paid a bonus under subsection (a).
        ``(3) Junior reserve officers' training corps instructors.--A 
    member of the Army detailed under subsection (c)(1) of section 2031 
    of this title to serve as an administrator or instructor in the 
    Junior Reserve Officers' Training Corps program or a retired member 
    of the Army employed as an administrator or instructor in the 
    program under subsection (d) of such section may not be paid a 
    bonus under subsection (a).
    ``(d) Amount of Bonus.--The amount of the bonus payable for a 
referral under subsection (a) may not exceed $2,000. The amount shall 
be payable as provided in subsection (e).
    ``(e) Payment.--A bonus payable for a referral of a person under 
subsection (a) shall be paid as follows:
        ``(1) Not more than $1,000 shall be paid upon the commencement 
    of basic training by the person.
        ``(2) Not more than $1,000 shall be paid upon the completion of 
    basic training and individual advanced training by the person.
    ``(f) Relation to Prohibition on Bounties.--The referral bonus 
authorized by this section is not a bounty for purposes of section 
514(a) of this title.
    ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under 
this section to a member of the Army in a retired status is in addition 
to any compensation to which the member is entitled under this title, 
title 37 or 38, or any other provision of law.
    ``(h) Duration of Authority.--A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after December 
31, 2008.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by inserting after the item relating to 
    section 3251 the following new item:

``3252. Bonus to encourage Army personnel to refer persons for 
          enlistment in the Army.''.

    (b) Bonus for Referral of Persons for Appointment as Officers To 
Serve in Health Professions.--
        (1) Health professions referral bonus.--Chapter 53 of such 
    title is amended by inserting before section 1031 the following new 
    section:

``Sec. 1030. Bonus to encourage Department of Defense personnel to 
            refer persons for appointment as officers to serve in 
            health professions

    ``(a) Authority To Pay Bonus.--
        ``(1) Authority.--The Secretary of Defense may authorize the 
    appropriate Secretary to pay a bonus under this section to an 
    individual referred to in paragraph (2) who refers to a military 
    recruiter a person who has not previously served in an armed force 
    and, after such referral, takes an oath of enlistment that leads to 
    appointment as a commissioned officer, or accepts an appointment as 
    a commissioned officer, in an armed force in a health profession 
    designated by the appropriate Secretary for purposes of this 
    section.
        ``(2) Individuals eligible for bonus.--Subject to subsection 
    (c), the following individuals are eligible for a referral bonus 
    under this section:
            ``(A) A member of the armed forces in a regular component 
        of the armed forces.
            ``(B) A member of the armed forces in a reserve component 
        of the armed forces.
            ``(C) A member of the armed forces in a retired status, 
        including a member under 60 years of age who, but for age, 
        would be eligible for retired or retainer pay.
            ``(D) A civilian employee of a military department or the 
        Department of Defense.
    ``(b) Referral.--For purposes of this section, a referral for which 
a bonus may be paid under subsection (a) occurs--
        ``(1) when the individual concerned contacts a military 
    recruiter on behalf of a person interested in taking an oath of 
    enlistment that leads to appointment as a commissioned officer, or 
    accepting an appointment as a commissioned officer, as applicable, 
    in an armed force in a health profession; or
        ``(2) when a person interested in taking an oath of enlistment 
    that leads to appointment as a commissioned officer, or accepting 
    an appointment as a commissioned officer, as applicable, in an 
    armed force in a health profession contacts a military recruiter 
    and informs the recruiter of the role of the individual concerned 
    in initially recruiting the person.
    ``(c) Certain Referrals Ineligible.--
        ``(1) Referral of immediate family.--A member of the armed 
    forces or civilian employee of a military department or the 
    Department of Defense may not be paid a bonus under subsection (a) 
    for the referral of an immediate family member.
        ``(2) Members in recruiting roles.--A member of the armed 
    forces or civilian employee of a military department or the 
    Department of Defense serving in a recruiting or retention 
    assignment, or assigned to other duties regarding which eligibility 
    for a bonus under subsection (a) could (as determined by the 
    appropriate Secretary) be perceived as creating a conflict of 
    interest, may not be paid a bonus under subsection (a).
        ``(3) Junior reserve officers' training corps instructors.--A 
    member of the armed forces detailed under subsection (c)(1) of 
    section 2031 of this title to serve as an administrator or 
    instructor in the Junior Reserve Officers' Training Corps program 
    or a retired member of the armed forces employed as an 
    administrator or instructor in the program under subsection (d) of 
    such section may not be paid a bonus under subsection (a).
    ``(d) Amount of Bonus.--The amount of the bonus payable for a 
referral under subsection (a) may not exceed $2,000. The amount shall 
be payable as provided in subsection (e).
    ``(e) Payment.--A bonus payable for a referral of a person under 
subsection (a) shall be paid as follows:
        ``(1) Not more than $1,000 shall be paid upon the execution by 
    the person of an agreement to serve as an officer in a health 
    profession in an armed force for not less than 3 years,
        ``(2) Not more than $1,000 shall be paid upon the completion by 
    the person of the initial period of military training as an 
    officer.
    ``(f) Relation to Prohibition on Bounties.--The referral bonus 
authorized by this section is not a bounty for purposes of section 
514(a) of this title.
    ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under 
this section to a member of the armed forces in a retired status is in 
addition to any compensation to which the member is entitled under this 
title, title 37 or 38, or any other provision of law.
    ``(h) Appropriate Secretary Defined.--In this section, the term 
`appropriate Secretary' means--
        ``(1) the Secretary of the Army, with respect to matters 
    concerning the Army;
        ``(2) the Secretary of the Navy, with respect to matters 
    concerning the Navy, the Marine Corps, and the Coast Guard when it 
    is operating as a service in the Navy;
        ``(3) the Secretary of the Air Force, with respect to matters 
    concerning the Air Force; and
        ``(4) the Secretary of Defense, with respect to personnel of 
    the Department of Defense.
    ``(i) Duration of Authority.--A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after December 
31, 2008.''.
        (2) Clerical amendments.--The table of sections at the 
    beginning of such chapter is amended by inserting before the item 
    relating to section 1031 the following new item:

``1030. Bonus to encourage Department of Defense personnel to refer 
          persons for appointment as officers to serve in health 
          professions.''.

    (c) Repeal of Superseded army Referral Bonus Authority.--
        (1) Repeal.--Section 645 of the National Defense Authorization 
    Act for Fiscal Year 2006 (Public Law 109-163) is repealed.
        (2) Payment of bonuses under superseded authority.--Any bonus 
    payable under section 645 of the National Defense Authorization Act 
    for Fiscal Year 2006, as in effect before its repeal by paragraph 
    (1), shall remain payable after that date and shall be paid in 
    accordance with the provisions of such section, as in effect on the 
    day before the date of the enactment of this Act.

SEC. 672. EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM FOR MEMBERS OF 
              THE SELECTED RESERVE.

    (a) Additional Educational Loans Eligible for Repayment.--Paragraph 
(1) of subsection (a) of section 16301 of title 10, United States Code, 
is amended--
        (1) by striking ``or'' at the end of subparagraph (B);
        (2) by striking the period at the end of subparagraph (C) and 
    inserting ``; or''; and
        (3) by inserting after subparagraph (C) the following new 
    subparagraph:
        ``(D) any loan incurred for educational purposes made by a 
    lender that is--
            ``(i) an agency or instrumentality of a State;
            ``(ii) a financial or credit institution (including an 
        insurance company) that is subject to examination and 
        supervision by an agency of the United States or any State;
            ``(iii) a pension fund approved by the Secretary for 
        purposes of this section; or
            ``(iv) a nonprofit private entity designated by a State, 
        regulated by that State, and approved by the Secretary for 
        purposes of this section.''.
    (b) Participation of Officers in Program.--Such subsection is 
further amended--
        (1) in paragraph (2)--
            (A) by striking ``Except as provided in paragraph (3), the 
        Secretary'' and inserting ``The Secretary''; and
            (B) by striking ``an enlisted member of the Selected 
        Reserve of the Ready Reserve of an armed force in a reserve 
        component and military specialty'' and inserting ``a member of 
        the Selected Reserve of the Ready Reserve of an armed force in 
        a reserve component and in an officer program or military 
        specialty''; and
        (2) by striking paragraph (3).
    (c) Clerical Amendments.--
        (1) Section heading.--The heading of such section is amended to 
    read as follows:

``Sec. 16301. Education loan repayment program: members of Selected 
            Reserve''.

        (2) Table of sections.--The table of sections at the beginning 
    of chapter 1609 of such title is amended by striking the item 
    relating to section 16301 and inserting the following new item:

``16301. Education loan repayment program: members of Selected 
          Reserve.''.

SEC. 673. ENSURING ENTRY INTO UNITED STATES AFTER TIME ABROAD FOR 
              PERMANENT RESIDENT ALIEN MILITARY SPOUSES AND CHILDREN.

    Section 284 of the Immigration and Nationality Act (8 U.S.C. 1354) 
is amended--
        (1) by striking ``Nothing'' and inserting ``(a) Nothing''; and
        (2) by adding at the end the following new subsection:
    ``(b) If a person lawfully admitted for permanent residence is the 
spouse or child of a member of the Armed Forces of the United States, 
is authorized to accompany the member and reside abroad with the member 
pursuant to the member's official orders, and is so accompanying and 
residing with the member (in marital union if a spouse), then the 
residence and physical presence of the person abroad shall not be 
treated as--
        ``(1) an abandonment or relinquishment of lawful permanent 
    resident status for purposes of clause (i) of section 
    101(a)(13)(C); or
        ``(2) an absence from the United States for purposes of clause 
    (ii) of such section.''.

SEC. 674. OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND CHILDREN.

    (a) Spouses.--Section 319 of the Immigration and Nationality Act (8 
U.S.C. 1430) is amended by adding at the end the following new 
subsection:
    ``(e)(1) In the case of a person lawfully admitted for permanent 
residence in the United States who is the spouse of a member of the 
Armed Forces of the United States, is authorized to accompany such 
member and reside abroad with the member pursuant to the member's 
official orders, and is so accompanying and residing with the member in 
marital union, such residence and physical presence abroad shall be 
treated, for purposes of subsection (a) and section 316(a), as 
residence and physical presence in--
        ``(A) the United States; and
        ``(B) any State or district of the Department of Homeland 
    Security in the United States.
    ``(2) Notwithstanding any other provision of law, a spouse 
described in paragraph (1) shall be eligible for naturalization 
proceedings overseas pursuant to section 1701(d) of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 8 
U.S.C. 1443a).''.
    (b) Children.--Section 322 of the Immigration and Nationality Act 
(8 U.S.C. 1433) is amended by adding at the end the following new 
subsection:
    ``(d) In the case of a child of a member of the Armed Forces of the 
United States who is authorized to accompany such member and reside 
abroad with the member pursuant to the member's official orders, and is 
so accompanying and residing with the member--
        ``(1) any period of time during which the member of the Armed 
    Forces is residing abroad pursuant to official orders shall be 
    treated, for purposes of subsection (a)(2)(A), as physical presence 
    in the United States;
        ``(2) subsection (a)(5) shall not apply; and
        ``(3) the oath of allegiance described in subsection (b) may be 
    subscribed to abroad pursuant to section 1701(d) of the National 
    Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 
    8 U.S.C. 1443a).''.
    (c) Overseas Naturalization Authority.--Section 1701(d) of the 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136; 8 U.S.C. 1443a) is amended--
        (1) in the subsection heading, by inserting ``and Their Spouses 
    and Children'' after ``Forces''; and
        (2) by inserting ``, and persons made eligible for 
    naturalization by section 319(e) or 322(d) of such Act,'' after 
    ``Armed Forces''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and apply to any 
application for naturalization or issuance of a certificate of 
citizenship pending on or after such date.

SEC. 675. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS OF NAVY AND 
              MARINE CORPS SELECTED FOR PROMOTION WHILE INTERNED AS 
              PRISONERS OF WAR DURING WORLD WAR II TO TAKE INTO ACCOUNT 
              CHANGES IN CONSUMER PRICE INDEX.

    (a) Modification.--Section 667(c) of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-170) is amended by adding at the 
end the following new paragraph:
    ``(3) The amount determined for a person under paragraph (1) shall 
be increased to reflect increases in cost of living since the basic pay 
referred to in paragraph (1)(B) was paid to or for that person, 
calculated on the basis of the Consumer Price Index (all items--United 
States city average) published monthly by the Bureau of Labor 
Statistics.''.
    (b) Recalculation of Previous Payments.--In the case of any payment 
of back pay made to or for a person under section 667 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 before 
the date of the enactment of this Act, the Secretary of the Navy 
shall--
        (1) recalculate the amount of back pay to which the person is 
    entitled by reason of the amendment made by subsection (a); and
        (2) if the amount of back pay, as so recalculated, exceeds the 
    amount of back pay so paid, pay the person, or the surviving spouse 
    of the person, an amount equal to the excess.

                   TITLE VII--HEALTH CARE PROVISIONS

          Subtitle A--Improvements to Military Health Benefits

Sec. 701. One-year extension of prohibition on increases in certain 
          health care costs for members of the uniformed services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
          pharmacy system of pharmacy benefits program.
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal 
          procurement of pharmaceuticals.
Sec. 704. Stipend for members of reserve components for health care for 
          certain dependents.
Sec. 705. Authority for expansion of persons eligible for continued 
          health benefits coverage.
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for 
          certain members of the Selected Reserve.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Inclusion of mental health care in definition of health care 
          and report on mental health care services.

                     Subtitle B--Studies and Reports

Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE 
          Extra.
Sec. 712. Report on training in preservation of remains under combat or 
          combat-related conditions.
Sec. 713. Report on patient satisfaction surveys.
Sec. 714. Report on medical physical examinations of members of the 
          Armed Forces before their deployment.
Sec. 715. Report and study on multiple vaccinations of members of the 
          Armed Forces.
Sec. 716. Review of gender- and ethnic group-specific mental health 
          services and treatment for members of the Armed Forces.
Sec. 717. Licensed mental health counselors and the TRICARE program.
Sec. 718. Report on funding of the Department of Defense for health 
          care.

                        Subtitle C--Other Matters

Sec. 721. Prohibition on conversion of military medical and dental 
          positions to civilian medical and dental positions.
Sec. 722. Establishment of Joint Pathology Center.

          Subtitle A--Improvements to Military Health Benefits

SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON INCREASES IN CERTAIN 
              HEALTH CARE COSTS FOR MEMBERS OF THE UNIFORMED SERVICES.

    (a) Charges Under Contracts for Medical Care.--Section 1097(e) of 
title 10, United States Code, is amended by striking ``September 30, 
2007'' and inserting ``September 30, 2008''.
    (b) Charges for Inpatient Care.--Section 1086(b)(3) of such title 
is amended by striking ``September 30, 2007.'' and inserting 
``September 30, 2008''.
    (c) Premiums Under TRICARE Coverage for Certain Members in the 
Selected Reserve.--Section 1076d(d)(3) of such title is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2008''.

SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL 
              PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    During the period beginning on October 1, 2007, and ending on 
September 30, 2008, the cost sharing requirements established under 
paragraph (6) of section 1074g(a) of title 10, United States Code, for 
pharmaceutical agents available through retail pharmacies covered by 
paragraph (2)(E)(ii) of such section may not exceed amounts as follows:
        (1) In the case of generic agents, $3.
        (2) In the case of formulary agents, $9.
        (3) In the case of nonformulary agents, $22.

SEC. 703. INCLUSION OF TRICARE RETAIL PHARMACY PROGRAM IN FEDERAL 
              PROCUREMENT OF PHARMACEUTICALS.

    (a) In General.--Section 1074g of title 10, United States Code, is 
amended--
        (1) by redesignating subsections (f) and (g) as subsections (g) 
    and (h), respectively; and
        (2) by inserting after subsection (e) the following new 
    subsection (f):
    ``(f) Procurement of Pharmaceuticals by TRICARE Retail Pharmacy 
Program.--With respect to any prescription filled on or after the date 
of the enactment of the National Defense Authorization Act for Fiscal 
Year 2008, the TRICARE retail pharmacy program shall be treated as an 
element of the Department of Defense for purposes of the procurement of 
drugs by Federal agencies under section 8126 of title 38 to the extent 
necessary to ensure that pharmaceuticals paid for by the Department of 
Defense that are provided by pharmacies under the program to eligible 
covered beneficiaries under this section are subject to the pricing 
standards in such section 8126.''.
    (b) Regulations.--The Secretary of Defense shall, after 
consultation with the other administering Secretaries under chapter 55 
of title 10, United States Code, modify the regulations under 
subsection (h) of section 1074g of title 10, United States Code (as 
redesignated by subsection (a)(1) of this section), to implement the 
requirements of subsection (f) of section 1074g of title 10, United 
States Code (as amended by subsection (a)(2) of this section). The 
Secretary shall so modify such regulations not later than December 31, 
2007.

SEC. 704. STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR HEALTH CARE FOR 
              CERTAIN DEPENDENTS.

    The Secretary of Defense may, pursuant to regulations prescribed by 
the Secretary, pay a stipend to a member of a reserve component of the 
Armed Forces who is called or ordered to active duty for a period of 
more than 30 days for purposes of maintaining civilian health care 
coverage for a dependant whom the Secretary determines to possess a 
special health care need that would be best met by remaining in the 
member's civilian health plan. In making such determination, the 
Secretary shall consider whether--
        (1) the dependent of the member was receiving treatment for the 
    special health care need before the call or order to active duty of 
    the member; and
        (2) the call or order to active duty would result in an 
    interruption in treatment or a change in health care provider for 
    such treatment.

SEC. 705. AUTHORITY FOR EXPANSION OF PERSONS ELIGIBLE FOR CONTINUED 
              HEALTH BENEFITS COVERAGE.

    (a) Authority To Specify Additional Eligible Persons.--Subsection 
(b) of section 1078a of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
        ``(4) Any other person specified in regulations prescribed by 
    the Secretary of Defense for purposes of this paragraph who loses 
    entitlement to health care services under this chapter or section 
    1145 of this title, subject to such terms and conditions as the 
    Secretary shall prescribe in the regulations.''.
    (b) Election of Coverage.--Subsection (d) of such section is 
amended by adding at the end the following new paragraph:
        ``(4) In the case of a person described in subsection (b)(4), 
    by such date as the Secretary shall prescribe in the regulations 
    required for purposes of that subsection.''.
    (c) Period of Coverage.--Subsection (g)(1) of such section is 
amended--
        (1) in subparagraph (B), by striking ``and'' at the end;
        (2) in subparagraph (C), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following new subparagraph:
        ``(D) in the case of a person described in subsection (b)(4), 
    the date that is 36 months after the date on which the person loses 
    entitlement to health care services as described in that 
    subsection.''.

SEC. 706. CONTINUATION OF ELIGIBILITY FOR TRICARE STANDARD COVERAGE FOR 
              CERTAIN MEMBERS OF THE SELECTED RESERVE.

    (a) In General.--Section 706(f) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 
2282; 10 U.S.C. 1076d note) is amended--
        (1) by striking ``Enrollments'' and inserting ``(1) Except as 
    provided in paragraph (2), enrollments''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The enrollment of a member in TRICARE Standard that is in 
effect on the day before health care under TRICARE Standard is provided 
pursuant to the effective date in subsection (g) shall not be 
terminated by operation of the exclusion of eligibility under 
subsection (a)(2) of such section 1076d, as so amended, for the 
duration of the eligibility of the member under TRICARE Standard as in 
effect on October 16, 2006.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 707. EXTENSION OF PILOT PROGRAM FOR HEALTH CARE DELIVERY.

    (a) Extension of Duration of Pilot Program.--Section 721(e) of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375; 118 Stat. 1988; 10 U.S.C. 1092 note) is 
amended by striking ``and 2007'' and inserting ``, 2007, 2008, 2009, 
and 2010''.
    (b) Extension of Report Deadline.--Section 721(f) of such Act is 
amended by striking ``July 1, 2007'' and inserting ``July 1, 2010''.
    (c) Revision in Selection Criteria.--Section 721(d)(2) of such Act 
is amended by striking ``expected to increase over the next five 
years'' and inserting ``has increased over the five years preceding 
2008''.
    (d) Addition to Requirements of Pilot Program.--Section 721(b) of 
such Act is amended--
        (1) by striking ``and'' at the end of paragraph (3);
        (2) by striking the period and inserting ``; and'' at the end 
    of paragraph (4); and
        (3) by adding at the end the following:
        ``(5) collaborate with State and local authorities to create an 
    arrangement to share and exchange, between the Department of 
    Defense and non-military health care systems, personal health 
    information and data of military personnel and their families.''.

SEC. 708. INCLUSION OF MENTAL HEALTH CARE IN DEFINITION OF HEALTH CARE 
              AND REPORT ON MENTAL HEALTH CARE SERVICES.

    (a) Inclusion of Mental Health Care in Definition of Health Care.--
Section 1072 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
        ``(10) The term `health care' includes mental health care.''.
    (b) Report on Access to Mental Health Care Services.--Not later 
than one year after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report on the adequacy 
of access to mental health services under the TRICARE program, 
including in the geographic areas where surveys on the continued 
viability of TRICARE Standard and TRICARE Extra are conducted under 
section 711 of this Act.

                    Subtitle B--Studies and Reports

SEC. 711. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD AND 
              TRICARE EXTRA.

    (a) Requirement for Surveys.--
        (1) In general.--The Secretary of Defense shall conduct surveys 
    of health care providers and beneficiaries who use TRICARE in the 
    United States to determine, utilizing a reconciliation of the 
    responses of providers and beneficiaries to such surveys, each of 
    the following:
            (A) How many health care providers in TRICARE Prime service 
        areas selected under paragraph (3)(A) are accepting new 
        patients under each of TRICARE Standard and TRICARE Extra.
            (B) How many health care providers in geographic areas in 
        which TRICARE Prime is not offered are accepting patients under 
        each of TRICARE Standard and TRICARE Extra.
            (C) The availability of mental health care providers in 
        TRICARE Prime service areas selected under paragraph (3)(C) and 
        in geographic areas in which TRICARE Prime is not offered.
        (2) Benchmarks.--The Secretary shall establish for purposes of 
    the surveys required by paragraph (1) benchmarks for primary care 
    and specialty care providers, including mental health care 
    providers, to be utilized to determine the adequacy of the 
    availability of health care providers to beneficiaries eligible for 
    TRICARE.
        (3) Scope of surveys.--The Secretary shall carry out the 
    surveys required by paragraph (1) as follows:
            (A) In the case of the surveys required by subparagraph (A) 
        of that paragraph, in at least 20 TRICARE Prime service areas 
        in the United States in each of fiscal years 2008 through 2011.
            (B) In the case of the surveys required by subparagraph (B) 
        of that paragraph, in 20 geographic areas in which TRICARE 
        Prime is not offered and in which significant numbers of 
        beneficiaries who are members of the Selected Reserve reside.
            (C) In the case of the surveys required by subparagraph (C) 
        of that paragraph, in at least 40 geographic areas.
        (4) Priority for surveys.--In prioritizing the areas which are 
    to be surveyed under paragraph (1), the Secretary shall--
            (A) consult with representatives of TRICARE beneficiaries 
        and health care and mental health care providers to identify 
        locations where TRICARE Standard beneficiaries are experiencing 
        significant levels of access-to-care problems under TRICARE 
        Standard or TRICARE Extra;
            (B) give a high priority to surveying health care and 
        mental health care providers in such areas; and
            (C) give a high priority to surveying beneficiaries and 
        providers located in geographic areas with high concentrations 
        of members of the Selected Reserve.
        (5) Information from providers.--The surveys required by 
    paragraph (1) shall include questions seeking to determine from 
    health care and mental health care providers the following:
            (A) Whether the provider is aware of the TRICARE program.
            (B) What percentage of the provider's current patient 
        population uses any form of TRICARE.
            (C) Whether the provider accepts patients for whom payment 
        is made under the medicare program for health care and mental 
        health care services.
            (D) If the provider accepts patients referred to in 
        subparagraph (C), whether the provider would accept additional 
        such patients who are not in the provider's current patient 
        population.
        (6) Information from beneficiaries.--The surveys required by 
    paragraph (1) shall include questions seeking information to 
    determine from TRICARE beneficiaries whether they have difficulties 
    in finding health care and mental health care providers willing to 
    provide services under TRICARE Standard or TRICARE Extra.
    (b) GAO Review.--
        (1) Ongoing review.--The Comptroller General shall, on an 
    ongoing basis, review--
            (A) the processes, procedures, and analysis used by the 
        Department of Defense to determine the adequacy of the number 
        of health care and mental health care providers--
                (i) that currently accept TRICARE Standard or TRICARE 
            Extra beneficiaries as patients under TRICARE Standard in 
            each TRICARE area as of the date of completion of the 
            review; and
                (ii) that would accept TRICARE Standard or TRICARE 
            Extra beneficiaries as new patients under TRICARE Standard 
            or TRICARE Extra, as applicable, within a reasonable time 
            after the date of completion of the review; and
            (B) the actions taken by the Department of Defense to 
        ensure ready access of TRICARE Standard beneficiaries to health 
        care and mental health care under TRICARE Standard in each 
        TRICARE area, including any pending or resolved requests for 
        waiver of payment limits in order to improve access to health 
        care or mental health care in a specific geographic area.
        (2) Reports.--The Comptroller General shall submit to the 
    Committees on Armed Services of the Senate and the House of 
    Representatives on a bi-annual basis a report on the results of the 
    review under paragraph (1). Each report shall include the 
    following:
            (A) An analysis of the adequacy of the surveys under 
        subsection (a).
            (B) An identification of any impediments to achieving 
        adequacy of availability of health care and mental health care 
        under TRICARE Standard or TRICARE Extra.
            (C) An assessment of the adequacy of Department of Defense 
        education programs to inform health care and mental health care 
        providers about TRICARE Standard and TRICARE Extra.
            (D) An assessment of the adequacy of Department of Defense 
        initiatives to encourage health care and mental health care 
        providers to accept patients under TRICARE Standard and TRICARE 
        Extra.
            (E) An assessment of the adequacy of information available 
        to TRICARE Standard beneficiaries to facilitate access by such 
        beneficiaries to health care and mental health care under 
        TRICARE Standard and TRICARE Extra.
            (F) An assessment of any need for adjustment of health care 
        and mental health care provider payment rates to attract 
        participation in TRICARE Standard by appropriate numbers of 
        health care and mental health care providers.
            (G) An assessment of the adequacy of Department of Defense 
        programs to inform members of the Selected Reserve about the 
        TRICARE Reserve Select program.
            (H) An assessment of the ability of TRICARE Reserve Select 
        beneficiaries to receive care in their geographic area.
    (c) Effective Date.--This section shall take effect on October 1, 
2007.
    (d) Repeal of Superseded Requirements and Authority.--Section 723 
of the National Defense Authorization Act for Fiscal Year 2004 (10 
U.S.C. 1073 note) is repealed, effective as of October 1, 2007.
    (e) Definitions.--In this section:
        (1) The term ``TRICARE Extra'' means the option of the TRICARE 
    program under which TRICARE Standard beneficiaries may obtain 
    discounts on cost-sharing as a result of using TRICARE network 
    providers.
        (2) The term ``TRICARE Prime'' means the managed care option of 
    the TRICARE program.
        (3) The term ``TRICARE Prime service area'' means a geographic 
    area designated by the Department of Defense in which managed care 
    support contractors develop a managed care network under TRICARE 
    Prime.
        (4) The term ``TRICARE Standard'' means the option of the 
    TRICARE program that is also known as the Civilian Health and 
    Medical Program of the Uniformed Services, as defined in section 
    1072(4) of title 10, United States Code.
        (5) The term ``TRICARE Reserve Select'' means the option of the 
    TRICARE program that allows members of the Selected Reserve to 
    enroll in TRICARE Standard, pursuant to section 1076d of title 10, 
    United States Code.
        (6) The term ``member of the Selected Reserve'' means a member 
    of the Selected Reserve of the Ready Reserve of a reserve component 
    of the Armed Forces.
        (7) The term ``United States'' means the United States (as 
    defined in section 101(a) of title 10, United States Code), its 
    possessions (as defined in such section), and the Commonwealth of 
    Puerto Rico.

SEC. 712. REPORT ON TRAINING IN PRESERVATION OF REMAINS UNDER COMBAT OR 
              COMBAT-RELATED CONDITIONS.

    (a) Report Required.--The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the requirements of section 567 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2224; 10 U.S.C. 1481 note).
    (b) Matters Covered.--The report shall include a detailed 
description of the implementation of such section, including--
        (1) where the training program is taking place;
        (2) who is providing the training;
        (3) the number of each type of military health care 
    professional trained to date; and
        (4) what the training covers.
    (c) Deadline.--The report required by this section shall be 
submitted not later than 180 days after the date of the enactment of 
this Act.

SEC. 713. REPORT ON PATIENT SATISFACTION SURVEYS.

    (a) Report Required.--Not later than March 1, 2008, the Secretary 
of Defense shall submit to the congressional defense committees a 
report on the ongoing patient satisfaction surveys taking place in 
Department of Defense inpatient and outpatient settings at military 
treatment facilities.
    (b) Content.--The report required under subsection (a) shall 
include the following:
        (1) The types of survey questions asked.
        (2) How frequently the surveying is conducted.
        (3) How often the results are analyzed and reported back to the 
    treatment facilities.
        (4) To whom survey feedback is made available.
        (5) How best practices are incorporated for quality 
    improvement.
        (6) An analysis of the effect of inpatient and outpatient 
    surveys on quality improvement and a comparison of patient 
    satisfaction survey programs with patient satisfaction survey 
    programs used by other public and private health care systems and 
    organizations.
    (c) Use of Report Information.--The Secretary shall use information 
in the report as the basis for a plan for improvements in patient 
satisfaction surveys used to assess health care at military treatment 
facilities in order to ensure the provision of high quality health care 
and hospital services in such facilities.

SEC. 714. REPORT ON MEDICAL PHYSICAL EXAMINATIONS OF MEMBERS OF THE 
              ARMED FORCES BEFORE THEIR DEPLOYMENT.

    Not later than April 1, 2008, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives a report setting forth the following:
        (1) A comparison of the policies of the military departments 
    concerning medical physical examinations of members of the Armed 
    Forces before their deployment, including an identification of 
    instances in which a member (including a member of a reserve 
    component) may be required to undergo multiple physical 
    examinations, from the time of notification of an upcoming 
    deployment through the period of preparation for deployment.
        (2) An assessment of the current policies related to, as well 
    as the feasibility of, each of the following:
            (A) A single predeployment physical examination for members 
        of the Armed Forces before their deployment.
            (B) A single system for tracking electronically the results 
        of examinations under subparagraph (A) that can be shared among 
        the military departments and thereby eliminate redundancy of 
        medical physical examinations for members of the Armed Forces 
        before their deployment.

SEC. 715. REPORT AND STUDY ON MULTIPLE VACCINATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the policies of the Department of Defense 
for administering and evaluating the vaccination of members of the 
Armed Forces.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (1) An assessment of the Department's policies governing the 
    administration of multiple vaccinations in a 24-hour period, 
    including the procedures providing for a full review of an 
    individual's medical history prior to the administration of 
    multiple vaccinations, and whether such policies and procedures 
    differ for members of the Armed Forces on active duty and members 
    of reserve components.
        (2) An assessment of how the Department's policies on multiple 
    vaccinations in a 24-hour period conform to current regulations of 
    the Food and Drug Administration and research performed or being 
    performed by the Centers for Disease Control, other non-military 
    Federal agencies, and non-Federal institutions on multiple 
    vaccinations in a 24-hour period.
        (3) An assessment of the Department's procedures for initiating 
    investigations of deaths of members of the Armed Forces in which 
    vaccinations may have played a role, including whether such 
    investigations can be requested by family members of the deceased 
    individuals.
        (4) The number of deaths of members of the Armed Forces since 
    May 18, 1998, that the Department has investigated for the 
    potential role of vaccine administration, including both the number 
    of deaths investigated that was alleged to have involved more than 
    one vaccine administered in a given 24-hour period and the number 
    of deaths investigated that was determined to have involved more 
    than one vaccine administered in a given 24-hour period.
        (5) An assessment of the procedures for providing the Adjutants 
    General of the various States and territories with up-to-date 
    information on the effectiveness and potential allergic reactions 
    and side effects of vaccines required to be taken by National Guard 
    members.
        (6) An assessment of whether procedures are in place to provide 
    that the Adjutants General of the various States and territories 
    retain updated medical records of each National Guard member called 
    up for active duty.

SEC. 716. REVIEW OF GENDER- AND ETHNIC GROUP-SPECIFIC MENTAL HEALTH 
              SERVICES AND TREATMENT FOR MEMBERS OF THE ARMED FORCES.

    (a) Comprehensive Review.--The Secretary of Defense shall conduct a 
comprehensive review of--
        (1) the need for gender- and ethnic group-specific mental 
    health treatment and services for members of the Armed Forces; and
        (2) the efficacy and adequacy of existing gender- and ethnic 
    group-specific mental health treatment programs and services for 
    members of the Armed Forces, to include availability of and access 
    to such programs.
    (b) Elements.--The review required by subsection (a) shall include, 
but not be limited to, an assessment of the following:
        (1) The need for gender- and ethnic group-specific mental 
    health outreach, prevention, and treatment services for members of 
    the Armed Forces.
        (2) The access to and efficacy of existing gender- and ethnic 
    group-specific mental health outreach, prevention, and treatment 
    services and programs (including substance abuse programs).
        (3) The availability of gender- and ethnic group-specific 
    services and treatment for members of the Armed Forces who 
    experienced sexual assault or abuse.
        (4) The access to and need for treatment facilities focusing on 
    the gender- and ethnic group-specific mental health care needs of 
    members of the Armed Forces.
        (5) The need for further clinical research on the gender- and 
    ethnic group-specific needs of members of the Armed Forces who 
    served in a combat zone.
    (c) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the congressional 
defense committees a report on the review required by subsection (a).

SEC. 717. LICENSED MENTAL HEALTH COUNSELORS AND THE TRICARE PROGRAM.

    (a) Regulations.--The Secretary of Defense shall prescribe 
regulations to establish criteria that licensed or certified mental 
health counselors shall meet in order to be able to independently 
provide care to TRICARE beneficiaries and receive payment under the 
TRICARE program for such services. The criteria shall include 
requirements for education level, licensure, certification, and 
clinical experience as considered appropriate by the Secretary.
    (b) Study Required.--The Secretary of Defense shall enter into a 
contract with the Institute of Medicine of the National Academy of 
Sciences, or another similarly qualified independent academic medical 
organization, for the purpose of--
        (1) conducting an independent study of the credentials, 
    preparation, and training of individuals practicing as licensed 
    mental health counselors; and
        (2) making recommendations for permitting licensed mental 
    health counselors to practice independently under the TRICARE 
    program.
    (c) Elements of Study.--
        (1) Educational requirements.--The study required by subsection 
    (b) shall provide for an assessment of the educational requirements 
    and curricula relevant to mental health practice for licensed 
    mental health counselors, including types of degrees recognized, 
    certification standards for graduate programs for such profession, 
    and recognition of undergraduate coursework for completion of 
    graduate degree requirements.
        (2) Licensing requirements.--The study required by subsection 
    (b) shall provide for an assessment of State licensing requirements 
    for licensed mental health counselors, including for each level of 
    licensure if a State issues more than one type of license for the 
    profession. The assessment shall examine requirements in the areas 
    of education, training, examination, continuing education, and 
    ethical standards, and shall include an evaluation of the extent to 
    which States authorize members of the licensed mental health 
    counselor profession to diagnose and treat mental illnesses.
        (3) Clinical experience requirements.--The study required by 
    subsection (b) shall provide for an analysis of the requirements 
    for clinical experience for a licensed mental health counselor to 
    be recognized under regulations for the TRICARE program, and 
    recommendations, if any, for standardization or adjustment of such 
    requirements.
        (4) Independent practice under other federal programs.--The 
    study required by subsection (b) shall provide for an assessment of 
    the extent to which licensed mental health counselors are 
    authorized to practice independently under other Federal programs 
    (such as the Medicare program, the Department of Veterans Affairs, 
    the Indian Health Service, and Head Start), and a review of the 
    relationship, if any, between recognition of mental health 
    professions under the Medicare program and independent practice 
    authority for such profession under the TRICARE program.
        (5) Independent practice under fehbp.--The study required by 
    subsection (b) shall provide for an assessment of the extent to 
    which licensed mental health counselors are authorized to practice 
    independently under the Federal Employee Health Benefits Program 
    and private insurance plans. The assessment shall identify the 
    States having laws requiring private insurers to cover, or offer 
    coverage of, the services of members of licensed mental health 
    counselors and shall identify the conditions, if any, that are 
    placed on coverage of practitioners under the profession by 
    insurance plans and how frequently these types of conditions are 
    used by insurers.
        (6) Historical review of regulations.--The study required by 
    subsection (b) shall provide for a review of the history of 
    regulations prescribed by the Department of Defense regarding which 
    members of the mental health profession are recognized as providers 
    under the TRICARE program as independent practitioners, and an 
    examination of the recognition by the Department of third-party 
    certification for members of such profession.
        (7) Clinical capabilities studies.--The study required by 
    subsection (b) shall include a review of outcome studies and of the 
    literature regarding the comparative quality and effectiveness of 
    care provided by licensed mental health counselors and provide an 
    independent review of the findings.
    (d) Recommendations for TRICARE Independent Practice Authority.--
The recommendations provided under subsection (b)(2) shall include 
recommendations regarding modifications of current policy for the 
TRICARE program with respect to allowing licensed mental health 
counselors to practice independently under the TRICARE program.
    (e) Report.--Not later than March 1, 2009, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the review required by subsection 
(b).

SEC. 718. REPORT ON FUNDING OF THE DEPARTMENT OF DEFENSE FOR HEALTH 
              CARE.

    (a) Report.--If the President submits to Congress the budget for a 
fiscal year under section 1105 of title 31, United States Code, and the 
aggregate amount included in that budget for the Department of Defense 
for health care for such fiscal year is less than the aggregate amount 
provided by Congress for the Department for health care for the 
preceding fiscal year, and, in the case of the Department, the total 
allocation from the Defense Health Program to any military department 
is less than the total of such allocation in the preceding fiscal year, 
the President shall submit to Congress a report on--
        (1) the reasons for the determination that inclusion of a 
    lesser aggregate amount or allocation to any military department is 
    in the national interest; and
        (2) the anticipated effects of the inclusion of such lesser 
    aggregate amount or allocation to any military department on the 
    access to and delivery of medical and support services to members 
    of the Armed Forces and their family members.
    (b) Termination.--The section shall not be in effect after December 
31, 2017.

                       Subtitle C--Other Matters

SEC. 721. PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND DENTAL 
              POSITIONS TO CIVILIAN MEDICAL AND DENTAL POSITIONS.

    (a) Prohibition.--The Secretary of a military department may not 
convert any military medical or dental position to a civilian medical 
or dental position during the period beginning on October 1, 2007, and 
ending on September 30, 2012.
    (b) Restoration of Certain Positions to Military Positions.--In the 
case of any military medical or dental position that is converted to a 
civilian medical or dental position during the period beginning on 
October 1, 2004, and ending on September 30, 2008, if the position is 
not filled by a civilian by September 30, 2008, the Secretary of the 
military department concerned shall restore the position to a military 
medical or dental position that can be filled only by a member of the 
Armed Forces who is a health professional.
    (c) Report.--
        (1) Requirement.--The Secretary of Defense shall submit to the 
    congressional defense committees a report on conversions made 
    during fiscal year 2007 not later than 180 days after the enactment 
    of this Act.
        (2) Matters covered.--The report shall include the following:
            (A) The number of military medical or dental positions, by 
        grade or band and specialty, converted to civilian medical or 
        dental positions.
            (B) The results of a market survey in each affected area of 
        the availability of civilian medical and dental care providers 
        in such area in order to determine whether there were civilian 
        medical and dental care providers available in such area 
        adequate to fill the civilian positions created by the 
        conversion of military medical and dental positions to civilian 
        positions in such area.
            (C) An analysis, by affected area, showing the extent to 
        which access to health care and cost of health care was 
        affected in both the direct care and purchased care systems, 
        including an assessment of the effect of any increased shifts 
        in patient load from the direct care to the purchased care 
        system, or any delays in receipt of care in either the direct 
        or purchased care system because of the conversions.
            (D) The extent to which military medical and dental 
        positions converted to civilian medical or dental positions 
        affected recruiting and retention of uniformed medical and 
        dental personnel.
            (E) A comparison of the full costs for the military medical 
        and dental positions converted with the full costs for civilian 
        medical and dental positions, including expenses such as 
        recruiting, salary, benefits, training, and any other costs the 
        Department identifies.
            (F) An assessment showing that the military medical or 
        dental positions converted were in excess of the military 
        medical and dental positions needed to meet medical and dental 
        readiness requirements of the uniformed services, as determined 
        jointly by all the uniformed services.
    (d) Definitions.--In this section:
        (1) The term ``military medical or dental position'' means a 
    position for the performance of health care functions within the 
    Armed Forces held by a member of the Armed Forces.
        (2) The term ``civilian medical or dental position'' means a 
    position for the performance of health care functions within the 
    Department of Defense held by an employee of the Department or of a 
    contractor of the Department.
        (3) The term ``uniformed services'' has the meaning given that 
    term in section 1072(1) of title 10, United States Code.
        (4) The term ``conversion'', with respect to a military medical 
    or dental position, means a change of the position to a civilian 
    medical or dental position, effective as of the date of the manning 
    authorization document of the military department making the change 
    (through a change in designation from military to civilian in the 
    document, the elimination of the listing of the position as a 
    military position in the document, or through any other means 
    indicating the change in the document or otherwise).
    (e) Repeal.--Section 742 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 
2306) is repealed.

SEC. 722. ESTABLISHMENT OF JOINT PATHOLOGY CENTER.

    (a) Findings.--Congress makes the following findings:
        (1) The Secretary of Defense proposed to disestablish all 
    elements of the Armed Forces Institute of Pathology, except the 
    National Medical Museum and the Tissue Repository, as part of the 
    recommendations of the Secretary for the closure of Walter Reed 
    Army Medical Center in the 2005 round of defense base closure and 
    realignment.
        (2) The Defense Base Closure and Realignment Commission 
    altered, but did not reject, the proposal of the Secretary of 
    Defense to disestablish the Armed Forces Institute of Pathology.
        (3) The Commission's recommendation that the Armed Forces 
    Institute of Pathology's ``capabilities not specified in this 
    recommendation will be absorbed into other DOD, Federal, or 
    civilian facilities'' provides the flexibility to retain a Joint 
    Pathology Center as a Department of Defense or Federal entity.
    (b) Sense of Congress.--It is the sense of Congress that the Armed 
Forces Institute of Pathology has provided important medical benefits 
to the Armed Forces and to the United States and that the Federal 
Government should retain a Joint Pathology Center.
    (c) Establishment.--
        (1) Establishment required.--The President shall establish and 
    maintain a Joint Pathology Center that shall function as the 
    reference center in pathology for the Federal Government.
        (2) Establishment within dod.--Except as provided in paragraph 
    (3), the Joint Pathology Center shall be established in the 
    Department of Defense, consistent with the final recommendations of 
    the 2005 Defense Base Closure and Realignment Commission, as 
    approved by the President.
        (3) Establishment in another department.--If the President 
    makes a determination, within 180 days after the date of the 
    enactment of this Act, that the Joint Pathology Center cannot be 
    established in the Department of Defense, the Joint Pathology 
    Center shall be established as an element of a Federal agency other 
    than the Department of Defense. The President shall incorporate the 
    selection of such agency into the determination made under this 
    paragraph.
    (d) Services.--The Joint Pathology Center shall provide, at a 
minimum, the following:
        (1) Diagnostic pathology consultation services in medicine, 
    dentistry, and veterinary sciences.
        (2) Pathology education, to include graduate medical education, 
    including residency and fellowship programs, and continuing medical 
    education.
        (3) Diagnostic pathology research.
        (4) Maintenance and continued modernization of the Tissue 
    Repository and, as appropriate, utilization of the Repository in 
    conducting the activities described in paragraphs (1) through (3).

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 800. Short title.

              Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-Defense agencies.
Sec. 802. Lead systems integrators.
Sec. 803. Reinvestment in domestic sources of strategic materials.
Sec. 804. Clarification of the protection of strategic materials 
          critical to national security.
Sec. 805. Procurement of commercial services.
Sec. 806. Specification of amounts requested for procurement of contract 
          services.
Sec. 807. Inventories and reviews of contracts for services.
Sec. 808. Independent management reviews of contracts for services.
Sec. 809. Implementation and enforcement of requirements applicable to 
          undefinitized contractual actions.
Sec. 810. Clarification of limited acquisition authority for Special 
          Operations Command.

  Subtitle B--Provisions Relating to Major Defense Acquisition Programs

Sec. 811. Requirements applicable to multiyear contracts for the 
          procurement of major systems of the Department of Defense.
Sec. 812. Changes to Milestone B certifications.
Sec. 813. Comptroller General report on Department of Defense 
          organization and structure for major defense acquisition 
          programs.
Sec. 814. Clarification of submission of cost or pricing data on 
          noncommercial modifications of commercial items.
Sec. 815. Clarification of rules regarding the procurement of commercial 
          items.
Sec. 816. Review of systemic deficiencies on major defense acquisition 
          programs.
Sec. 817. Investment strategy for major defense acquisition programs.
Sec. 818. Report on implementation of recommendations on total ownership 
          cost for major weapon systems.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                             and Limitations

Sec. 821. Plan for restricting Government-unique contract clauses on 
          commercial contracts.
Sec. 822. Extension of authority for use of simplified acquisition 
          procedures for certain commercial items.
Sec. 823. Five-year extension of authority to carry out certain 
          prototype projects.
Sec. 824. Exemption of Special Operations Command from certain 
          requirements for certain contracts relating to vessels, 
          aircraft, and combat vehicles.
Sec. 825. Provision of authority to maintain equipment to unified 
          combatant command for joint warfighting.
Sec. 826. Market research.
Sec. 827. Modification of competition requirements for purchases from 
          Federal Prison Industries.
Sec. 828. Multiyear contract authority for electricity from renewable 
          energy sources.
Sec. 829. Procurement of fire resistant rayon fiber for the production 
          of uniforms from foreign sources.
Sec. 830. Comptroller General review of noncompetitive awards of 
          congressional and executive branch interest items.

                Subtitle D--Accountability in Contracting

Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts 
          and contracting processes in Iraq and Afghanistan.
Sec. 843. Enhanced competition requirements for task and delivery order 
          contracts.
Sec. 844. Public disclosure of justification and approval documents for 
          noncompetitive contracts.
Sec. 845. Disclosure of government contractor audit findings.
Sec. 846. Protection for contractor employees from reprisal for 
          disclosure of certain information.
Sec. 847. Requirements for senior Department of Defense officials 
          seeking employment with defense contractors.
Sec. 848. Report on contractor ethics programs of Major Defense 
          contractors.
Sec. 849. Contingency contracting training for personnel outside the 
          acquisition workforce and evaluations of Army Commission 
          recommendations.

              Subtitle E--Acquisition Workforce Provisions

Sec. 851. Requirement for section on defense acquisition workforce in 
          strategic human capital plan.
Sec. 852. Department of Defense Acquisition Workforce Development Fund.
Sec. 853. Extension of authority to fill shortage category positions for 
          certain Federal acquisition positions.
Sec. 854. Repeal of sunset of acquisition workforce training fund.
Sec. 855. Federal acquisition workforce improvements.

              Subtitle F--Contracts in Iraq and Afghanistan

Sec. 861. Memorandum of understanding on matters relating to 
          contracting.
Sec. 862. Contractors performing private security functions in areas of 
          combat operations.
Sec. 863. Comptroller General reviews and reports on contracting in Iraq 
          and Afghanistan.
Sec. 864. Definitions and other general provisions.

              Subtitle G--Defense Materiel Readiness Board

Sec. 871. Establishment of Defense Materiel Readiness Board.
Sec. 872. Critical materiel readiness shortfalls.

                        Subtitle H--Other Matters

Sec. 881. Clearinghouse for rapid identification and dissemination of 
          commercial information technologies.
Sec. 882. Authority to license certain military designations and 
          likenesses of weapons systems to toy and hobby manufacturers.
Sec. 883. Modifications to limitation on contracts to acquire military 
          flight simulator.
Sec. 884. Requirements relating to waivers of certain domestic source 
          limitations relating to specialty metals.
Sec. 885. Telephone services for military personnel serving in combat 
          zones.
Sec. 886. Enhanced authority to acquire products and services produced 
          in Iraq and Afghanistan.
Sec. 887. Defense Science Board review of Department of Defense policies 
          and procedures for the acquisition of information technology.
Sec. 888. Green procurement policy.
Sec. 889. Comptroller General review of use of authority under the 
          Defense Production Act of 1950.
Sec. 890. Prevention of export control violations.
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and 
          Alaska Native-serving institutions.
Sec. 892. Competition for procurement of small arms supplied to Iraq and 
          Afghanistan.

SEC. 800. SHORT TITLE.

    This title may be cited as the ``Acquisition Improvement and 
Accountability Act of 2007''.

             Subtitle A--Acquisition Policy and Management

SEC. 801. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
              DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE AGENCIES.

    (a) Inspectors General Reviews and Determinations.--
        (1) In general.--For each covered non-defense agency, the 
    Inspector General of the Department of Defense and the Inspector 
    General of such covered non-defense agency shall, not later than 
    the date specified in paragraph (2), jointly--
            (A) review--
                (i) the procurement policies, procedures, and internal 
            controls of such covered non-defense agency that are 
            applicable to the procurement of property and services on 
            behalf of the Department by such covered non-defense 
            agency; and
                (ii) the administration of such policies, procedures, 
            and internal controls; and
            (B) determine in writing whether such covered non-defense 
        agency is or is not compliant with defense procurement 
        requirements.
        (2) Deadline for reviews and determinations.--The reviews and 
    determinations required by paragraph (1) shall take place as 
    follows:
            (A) In the case of the General Services Administration, by 
        not later than March 15, 2010.
            (B) In the case of each of the Department of the Treasury, 
        the Department of the Interior, and the National Aeronautics 
        and Space Administration, by not later than March 15, 2011.
            (C) In the case of each of the Department of Veterans 
        Affairs and the National Institutes of Health, by not later 
        than March 15, 2012.
        (3) Separate reviews and determinations.--The Inspector General 
    of the Department of Defense and the Inspector General of a covered 
    non-defense agency may by joint agreement conduct separate reviews 
    of the procurement of property and services on behalf of the 
    Department of Defense that are conducted by separate business 
    units, or under separate government-wide acquisition contracts, of 
    the covered non-defense agency. If such separate reviews are 
    conducted, the Inspectors General shall make a separate 
    determination under paragraph (1)(B) with respect to each such 
    separate review.
        (4) Memoranda of understanding for reviews and 
    determinations.--Not later than one year before a review and 
    determination is required under this subsection with respect to a 
    covered non-defense agency, the Inspector General of the Department 
    of Defense and the Inspector General of the covered non-defense 
    agency shall enter into a memorandum of understanding with each 
    other to carry out such review and determination.
        (5) Termination of non-compliance determination.--If the 
    Inspector General of the Department of Defense and the Inspector 
    General of a covered non-defense agency determine, pursuant to 
    paragraph (1)(B), that a covered non-defense agency is not 
    compliant with defense procurement requirements, the Inspectors 
    General shall terminate such a determination effective on the date 
    on which the Inspectors General jointly--
            (A) determine that the non-defense agency is compliant with 
        defense procurement requirements; and
            (B) notify the Secretary of Defense of that determination.
        (6) Resolution of disagreements.--If the Inspector General of 
    the Department of Defense and the Inspector General of a covered 
    non-defense agency are unable to agree on a joint determination 
    under this subsection, a determination by the Inspector General of 
    the Department of Defense under this subsection shall be conclusive 
    for the purposes of this section.
    (b) Limitation on Procurements on Behalf of Department of 
Defense.--
        (1) Except as provided in paragraph (2), an acquisition 
    official of the Department of Defense may place an order, make a 
    purchase, or otherwise procure property or services for the 
    Department of Defense in excess of the simplified acquisition 
    threshold through a non-defense agency only if--
            (A) in the case of a procurement by any non-defense agency 
        in any fiscal year, the head of the non-defense agency has 
        certified that the non-defense agency will comply with defense 
        procurement requirements for the fiscal year;
            (B) in the case of--
                (i) a procurement by a covered non-defense agency in a 
            fiscal year for which a memorandum of understanding is 
            required by subsection (a)(4), the Inspector General of the 
            Department of Defense and the Inspector General of the 
            covered non-defense agency have entered into such a 
            memorandum of understanding; or
                (ii) a procurement by a covered non-defense agency in a 
            fiscal year following the Inspectors General review and 
            determination required by subsection (a), the Inspectors 
            General have determined that a covered non-defense agency 
            is compliant with defense procurement requirements or have 
            terminated a prior determination of non-compliance in 
            accordance with subsection (a)(5); and
            (C) the procurement is not otherwise prohibited by section 
        817 of the John Warner National Defense Authorization Act for 
        Fiscal Year 2007 (Public Law 109-364) or section 811 of the 
        National Defense Authorization Act for Fiscal Year 2006 (Public 
        Law 109-163).
        (2) Exception for procurements of necessary property and 
    services.--
            (A) In general.--The limitation in paragraph (1) shall not 
        apply to the procurement of property and services on behalf of 
        the Department of Defense by a non-defense agency during any 
        fiscal year for which there is in effect a written 
        determination of the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics that it is necessary in 
        the interest of the Department of Defense to procure property 
        and services through the non-defense agency during such fiscal 
        year.
            (B) Scope of particular exception.--A written determination 
        with respect to a non-defense agency under subparagraph (A) 
        shall apply to any category of procurements through the non-
        defense agency that is specified in the determination.
    (c) Guidance on Interagency Contracting.--
        (1) Requirement.--Not later than 180 days after the date of 
    enactment of this Act, the Secretary of Defense shall issue 
    guidance on the use of interagency contracting by the Department of 
    Defense.
        (2) Matters covered.--The guidance required by paragraph (1) 
    shall address the circumstances in which it is appropriate for 
    Department of Defense acquisition officials to procure goods or 
    services through a contract entered into by an agency outside the 
    Department of Defense. At a minimum, the guidance shall address--
            (A) the circumstances in which it is appropriate for such 
        acquisition officials to use direct acquisitions;
            (B) the circumstances in which it is appropriate for such 
        acquisition officials to use assisted acquisitions;
            (C) the circumstances in which it is appropriate for such 
        acquisition officials to use interagency contracting to acquire 
        items unique to the Department of Defense and the procedures 
        for approving such interagency contracting;
            (D) the circumstances in which it is appropriate for such 
        acquisition officials to use interagency contracting to acquire 
        items that are already being provided under a contract awarded 
        by the Department of Defense;
            (E) tools that should be used by such acquisition officials 
        to determine whether items are already being provided under a 
        contract awarded by the Department of Defense; and
            (F) procedures for ensuring that defense procurement 
        requirements are identified and communicated to outside 
        agencies involved in interagency contracting.
    (d) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a non-defense agency is compliant with 
defense procurement requirements if the procurement policies, 
procedures, and internal controls of the non-defense agency applicable 
to the procurement of products and services on behalf of the Department 
of Defense, and the manner in which they are administered, are adequate 
to ensure the compliance of the non-defense agency with the 
requirements of laws and regulations (including applicable Department 
of Defense financial management regulations) that apply to procurements 
of property and services made directly by the Department of Defense.
    (e) Treatment of Procurements for Fiscal Year Purposes.--For the 
purposes of this section, a procurement shall be treated as being made 
during a particular fiscal year to the extent that funds are obligated 
by the Department of Defense for the procurement in that fiscal year.
    (f) Definitions.--In this section:
        (1) Non-defense agency.--The term ``non-defense agency'' means 
    any department or agency of the Federal Government other than the 
    Department of Defense. Such term includes a covered non-defense 
    agency.
        (2) Covered non-defense agency.--The term ``covered non-defense 
    agency'' means each of the following:
            (A) The General Services Administration.
            (B) The Department of the Treasury.
            (C) The Department of the Interior.
            (D) The National Aeronautics and Space Administration.
            (E) The Department of Veterans Affairs.
            (F) The National Institutes of Health.
        (3) Government-wide acquisition contract.--The term 
    ``government-wide acquisition contract'' means a task or delivery 
    order contract that--
            (A) is entered into by a non-defense agency; and
            (B) may be used as the contract under which property or 
        services are procured for one or more other departments or 
        agencies of the Federal Government.
        (4) Simplified acquisition threshold.--The term ``simplified 
    acquisition threshold'' has the meaning provided by section 2302(7) 
    of title 10, United States Code.
        (5) Interagency contracting.--The term ``interagency 
    contracting'' means the exercise of the authority under section 
    1535 of title 31, United States Code, or other statutory authority, 
    for Federal agencies to purchase goods and services under contracts 
    entered into or administered by other agencies.
        (6) Acquisition official.--The term ``acquisition official'', 
    with respect to the Department of Defense, means--
            (A) a contracting officer of the Department of Defense; or
            (B) any other Department of Defense official authorized to 
        approve a direct acquisition or an assisted acquisition on 
        behalf of the Department of Defense.
        (7) Direct acquisition.--The term ``direct acquisition'', with 
    respect to the Department of Defense, means the type of interagency 
    contracting through which the Department of Defense orders an item 
    or service from a government-wide acquisition contract maintained 
    by a non-defense agency.
        (8) Assisted acquisition.--The term ``assisted acquisition'', 
    with respect to the Department of Defense, means the type of 
    interagency contracting through which acquisition officials of a 
    non-defense agency award a contract or task or delivery order for 
    the procurement of goods or services on behalf of the Department of 
    Defense.

SEC. 802. LEAD SYSTEMS INTEGRATORS.

    (a) Prohibitions on the Use of Lead Systems Integrators.--
        (1) Prohibition on new lead systems integrators.--Effective 
    October 1, 2010, the Department of Defense may not award a new 
    contract for lead systems integrator functions in the acquisition 
    of a major system to any entity that was not performing lead 
    systems integrator functions in the acquisition of the major system 
    prior to the date of the enactment of this Act.
        (2) Prohibition on lead systems integrators beyond low-rate 
    initial production.--Effective on the date of the enactment of this 
    Act, the Department of Defense may award a new contract for lead 
    systems integrator functions in the acquisition of a major system 
    only if--
            (A) the major system has not yet proceeded beyond low-rate 
        initial production; or
            (B) the Secretary of Defense determines in writing that it 
        would not be practicable to carry out the acquisition without 
        continuing to use a contractor to perform lead systems 
        integrator functions and that doing so is in the best interest 
        of the Department.
        (3) Requirements relating to determinations.--A determination 
    under paragraph (2)(B)--
            (A) shall specify the reasons why it would not be 
        practicable to carry out the acquisition without continuing to 
        use a contractor to perform lead systems integrator functions 
        (including a discussion of alternatives, such as the use of the 
        Department of Defense workforce, or a system engineering and 
        technical assistance contractor);
            (B) shall include a plan for phasing out the use of 
        contracted lead systems integrator functions over the shortest 
        period of time consistent with the interest of the national 
        defense;
            (C) may not be delegated below the level of the Under 
        Secretary of Defense for Acquisition, Technology, and 
        Logistics; and
            (D) shall be provided to the Committees on Armed Services 
        of the Senate and the House of Representatives at least 45 days 
        before the award of a contract pursuant to the determination.
    (b) Acquisition Workforce.--
        (1) Requirement.--The Secretary of Defense shall ensure that 
    the acquisition workforce is of the appropriate size and skill 
    level necessary--
            (A) to accomplish inherently governmental functions related 
        to acquisition of major systems; and
            (B) to effectuate the purpose of subsection (a) to minimize 
        and eventually eliminate the use of contractors to perform lead 
        systems integrator functions.
        (2) Report.--The Secretary shall include an update on the 
    progress made in complying with paragraph (1) in the annual report 
    required by section 820 of the John Warner National Defense 
    Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
    Stat. 2330).
    (c) Exception for Contracts for Other Management Services.--The 
Department of Defense may continue to award contracts for the 
procurement of services the primary purpose of which is to perform 
acquisition support functions with respect to the development or 
production of a major system, if the following conditions are met with 
respect to each such contract:
        (1) The contract prohibits the contractor from performing 
    inherently governmental functions.
        (2) The Department of Defense organization responsible for the 
    development or production of the major system ensures that Federal 
    employees are responsible for--
            (A) determining courses of action to be taken in the best 
        interest of the government; and
            (B) determining best technical performance for the 
        warfighter.
        (3) The contract requires that the prime contractor for the 
    contract may not advise or recommend the award of a contract or 
    subcontract for the development or production of the major system 
    to an entity owned in whole or in part by the prime contractor.
    (d) Definitions.--In this section:
        (1) Lead systems integrator.--The term ``lead systems 
    integrator'' means--
            (A) a prime contractor for the development or production of 
        a major system, if the prime contractor is not expected at the 
        time of award to perform a substantial portion of the work on 
        the system and the major subsystems; or
            (B) a prime contractor under a contract for the procurement 
        of services the primary purpose of which is to perform 
        acquisition functions closely associated with inherently 
        governmental functions with respect to the development or 
        production of a major system.
        (2) Major system.--The term ``major system'' has the meaning 
    given such term in section 2302d of title 10, United States Code.
        (3) Low-rate initial production.--The term ``low-rate initial 
    production'' has the meaning given such term in section 2400 of 
    title 10, United States Code.

SEC. 803. REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC MATERIALS.

    (a) Assessment Required.--Not later than 180 days after the date of 
the enactment of this Act, the Strategic Materials Protection Board 
established pursuant to section 187 of title 10, United States Code, 
shall perform an assessment of the extent to which domestic producers 
of strategic materials are investing and planning to invest on a 
sustained basis in the processes, infrastructure, workforce training, 
and facilities required for the continued domestic production of such 
materials to meet national defense requirements.
    (b) Cooperation of Domestic Producers.--The Department of Defense 
may take into consideration the degree of cooperation of any domestic 
producer of strategic materials with the assessment conducted under 
subsection (a) when determining how much weight to accord any comments 
provided by such domestic producer regarding a proposed waiver of 
domestic source limitations pursuant to section 2533b of title 10, 
United States Code.
    (c) Report to Congressional Defense Committees.--The Board shall 
include the findings and recommendations of the assessment required by 
subsection (a) in the first report submitted to Congress pursuant to 
section 187(d) of title 10, United States Code, after the completion of 
such assessment.
    (d) Definition.--The term ``strategic material'' means--
        (1) a material designated as critical to national security by 
    the Strategic Materials Protection Board in accordance with section 
    187 of title 10, United States Code; or
        (2) a specialty metal as defined by section 2533b of title 10, 
    United States Code.

SEC. 804. CLARIFICATION OF THE PROTECTION OF STRATEGIC MATERIALS 
              CRITICAL TO NATIONAL SECURITY.

    (a) Prohibition.--Subsection (a) of section 2533b of title 10, 
United States Code, is amended--
        (1) by striking ``Except as provided in subsections (b) through 
    (j), funds appropriated or otherwise available to the Department of 
    Defense may not be used for the procurement of--'' and inserting 
    ``Except as provided in subsections (b) through (m), the 
    acquisition by the Department of Defense of the following items is 
    prohibited:'';
        (2) in paragraph (1)--
            (A) by striking ``the following'' and inserting ``The 
        following''; and
            (B) by striking ``; or'' and inserting a period; and
        (3) in paragraph (2), by striking ``a speciality'' and 
    inserting ``A specialty''.
    (b) Applicability to Acquisition of Commercial Items.--Subsection 
(h) of such section is amended to read as follows:
    ``(h) Applicability to Acquisitions of Commercial Items.--(1) 
Except as provided in paragraphs (2) and (3), this section applies to 
acquisitions of commercial items, notwithstanding sections 34 and 35 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 430 and 431).
    ``(2) This section does not apply to contracts or subcontracts for 
the acquisition of commercially available off-the-shelf items, as 
defined in section 35(c) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 431(c)), other than--
        ``(A) contracts or subcontracts for the acquisition of 
    specialty metals, including mill products, such as bar, billet, 
    slab, wire, plate and sheet, that have not been incorporated into 
    end items, subsystems, assemblies, or components;
        ``(B) contracts or subcontracts for the acquisition of forgings 
    or castings of specialty metals, unless such forgings or castings 
    are incorporated into commercially available off-the-shelf end 
    items, subsystems, or assemblies;
        ``(C) contracts or subcontracts for commercially available high 
    performance magnets unless such high performance magnets are 
    incorporated into commercially available off-the-shelf-end items or 
    subsystems; and
        ``(D) contracts or subcontracts for commercially available off-
    the-shelf fasteners, unless such fasteners are--
            ``(i) incorporated into commercially available off-the-
        shelf end items, subsystems, assemblies, or components; or
            ``(ii) purchased as provided in paragraph (3).
    ``(3) This section does not apply to fasteners that are commercial 
items that are purchased under a contract or subcontract with a 
manufacturer of such fasteners, if the manufacturer has certified that 
it will purchase, during the relevant calendar year, an amount of 
domestically melted specialty metal, in the required form, for use in 
the production of such fasteners for sale to the Department of Defense 
and other customers, that is not less than 50 percent of the total 
amount of the specialty metal that it will purchase to carry out the 
production of such fasteners.''.
    (c) Electronic Components.--Subsection (g) of such section is 
amended by striking ``commercially available'' and all that follows 
through the end of the subsection and inserting ``electronic 
components, unless the Secretary of Defense, upon the recommendation of 
the Strategic Materials Protection Board pursuant to section 187 of 
this title, determines that the domestic availability of a particular 
electronic component is critical to national security.''.
    (d) Additional Exceptions.--Section 2533b of title 10, United 
States Code, as amended by subsections (a), (b), and (c), is further 
amended--
        (1) by redesignating subsections (i) and (j) as subsections (l) 
    and (m), respectively; and
        (2) by inserting after subsection (h) the following new 
    subsections:
    ``(i) Exceptions for Purchases of Specialty Metals Below Minimum 
Threshold.--(1) Notwithstanding subsection (a), the Secretary of 
Defense or the Secretary of a military department may accept delivery 
of an item containing specialty metals that were not melted in the 
United States if the total amount of noncompliant specialty metals in 
the item does not exceed 2 percent of the total weight of specialty 
metals in the item.
    ``(2) This subsection does not apply to high performance magnets.
    ``(j) Streamlined Compliance for Commercial Derivative Military 
Articles.--(1) Subsection (a) shall not apply to an item acquired under 
a prime contract if the Secretary of Defense or the Secretary of a 
military department determines that--
        ``(A) the item is a commercial derivative military article; and
        ``(B) the contractor certifies that the contractor and its 
    subcontractors have entered into a contractual agreement, or 
    agreements, to purchase an amount of domestically melted specialty 
    metal in the required form, for use during the period of contract 
    performance in the production of the commercial derivative military 
    article and the related commercial article, that is not less than 
    the greater of--
            ``(i) an amount equivalent to 120 percent of the amount of 
        specialty metal that is required to carry out the production of 
        the commercial derivative military article (including the work 
        performed under each subcontract); or
            ``(ii) an amount equivalent to 50 percent of the amount of 
        specialty metal that is purchased by the contractor and its 
        subcontractors for use during such period in the production of 
        the commercial derivative military article and the related 
        commercial article.
    ``(2) For the purposes of this subsection, the amount of specialty 
metal that is required to carry out the production of the commercial 
derivative military article includes specialty metal contained in any 
item, including commercially available off-the-shelf items, 
incorporated into such commercial derivative military article.
    ``(k) National Security Waiver.--(1) Notwithstanding subsection 
(a), the Secretary of Defense may accept the delivery of an end item 
containing noncompliant materials if the Secretary determines in 
writing that acceptance of such end item is necessary to the national 
security interests of the United States.
    ``(2) A written determination under paragraph (1)--
        ``(A) may not be delegated below the level of the Deputy 
    Secretary of Defense or the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics;
        ``(B) shall specify the quantity of end items to which the 
    waiver applies and the time period over which the waiver applies; 
    and
        ``(C) shall be provided to the congressional defense committees 
    prior to making such a determination (except that in the case of an 
    urgent national security requirement, such certification may be 
    provided to the defense committees up to 7 days after it is made).
    ``(3)(A) In any case in which the Secretary makes a determination 
under paragraph (1), the Secretary shall determine whether or not the 
noncompliance was knowing and willful.
    ``(B) If the Secretary determines that the noncompliance was not 
knowing or willful, the Secretary shall ensure that the contractor or 
subcontractor responsible for the noncompliance develops and implements 
an effective plan to ensure future compliance.
    ``(C) If the Secretary determines that the noncompliance was 
knowing or willful, the Secretary shall--
        ``(i) require the development and implementation of a plan to 
    ensure future compliance; and
        ``(ii) consider suspending or debarring the contractor or 
    subcontractor until such time as the contractor or subcontractor 
    has effectively addressed the issues that lead to such 
    noncompliance.''.
    (e) Additional Definitions.--Subsection (m) of section 2533b of 
title 10, United States Code, as redesignated by subsection (c), is 
further amended by adding at the end the following:
        ``(3) The term `acquisition' has the meaning provided in 
    section 4 of the Office of Federal Procurement Policy Act (41 
    U.S.C. 403).
        ``(4) The term `required form' shall not apply to end items or 
    to their components at any tier. The term `required form' means in 
    the form of mill product, such as bar, billet, wire, slab, plate or 
    sheet, and in the grade appropriate for the production of--
            ``(A) a finished end item delivered to the Department of 
        Defense; or
            ``(B) a finished component assembled into an end item 
        delivered to the Department of Defense.
        ``(5) The term `commercially available off-the-shelf', has the 
    meaning provided in section 35(c) of the Office of Federal 
    Procurement Policy Act (41 U.S.C. 431(c)).
        ``(6) The term `assemblies' means items forming a portion of a 
    system or subsystem that can be provisioned and replaced as an 
    entity and which incorporates multiple, replaceable parts.
        ``(7) The term `commercial derivative military article' means 
    an item procured by the Department of Defense that is or will be 
    produced using the same production facilities, a common supply 
    chain, and the same or similar production processes that are used 
    for the production of articles predominantly used by the general 
    public or by nongovernmental entities for purposes other than 
    governmental purposes.
        ``(8) The term `subsystem' means a functional grouping of items 
    that combine to perform a major function within an end item, such 
    as electrical power, attitude control, and propulsion.
        ``(9) The term `end item' means the final production product 
    when assembled or completed, and ready for issue, delivery, or 
    deployment.
        ``(10) The term `subcontract' includes a subcontract at any 
    tier.''.
    (f) Conforming Amendments.--Section 2533b of title 10, United 
States Code, is further amended--
        (1) in subsection (c)--
            (A) in the heading, by striking ``Procurements'' and 
        inserting ``Acquisitions''; and
            (B) in paragraphs (1) and (2), by striking ``Procurements'' 
        and inserting ``Acquisitions'';
        (2) in subsection (d), by striking ``procurement'' each place 
    it appears and inserting ``acquisition''; and
        (3) in subsections (f) and (g), by striking ``procurements'' 
    each place it appears and inserting ``acquisitions''.
    (g) Implementation.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe 
regulations on the implementation of this section and the amendments 
made by this section, including specific guidance on how thresholds 
established in subsections (h)(3), (i) and (j) of section 2533b of 
title 10, United States Code, as amended by this section, should be 
implemented.
    (h) Revision of Domestic Nonavailability Determinations and 
Rules.--No later than 180 days after the date of the enactment of this 
Act, any domestic nonavailability determination under section 2533b of 
title 10, United States Code, including a class deviation, or rules 
made by the Department of Defense between December 6, 2006, and the 
date of the enactment of this Act, shall be reviewed and amended, as 
necessary, to comply with the amendments made by this section. This 
requirement shall not apply to a domestic nonavailability determination 
that applies to--
        (1) an individual contract that was entered into before the 
    date of the enactment of this Act; or
        (2) an individual Department of Defense program, except to the 
    extent that such domestic nonavailability determination applies to 
    contracts entered into after the date of the enactment of this Act.
    (i) Transparency Requirement for Commercially Available Off-the-
Shelf Item Exception.--The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives, not later than December 30, 2008, a report on the use 
of authority provided under subsection (h) of section 2533b of title 
10, United States Code, as amended by this section. Such report shall 
include, at a minimum, a description of types of items being procured 
as commercially available off-the-shelf items under such subsection and 
incorporated into noncommercial items. The Secretary shall submit an 
update of such report to such committees not later than December 30, 
2009.

SEC. 805. PROCUREMENT OF COMMERCIAL SERVICES.

    (a) Regulations Required.--Not later than 180 days after the date 
of the enactment of this Act , the Secretary of Defense shall modify 
the regulations of the Department of Defense for the procurement of 
commercial services for or on behalf of the Department of Defense.
    (b) Applicability of Commercial Procedures.--
        (1) Services of a type sold in marketplace.--The regulations 
    modified pursuant to subsection (a) shall ensure that services that 
    are not offered and sold competitively in substantial quantities in 
    the commercial marketplace, but are of a type offered and sold 
    competitively in substantial quantities in the commercial 
    marketplace, may be treated as commercial items for purposes of 
    section 2306a of title 10, United States Code (relating to truth in 
    negotiations), only if the contracting officer determines in 
    writing that the offeror has submitted sufficient information to 
    evaluate, through price analysis, the reasonableness of the price 
    for such services.
        (2) Information submitted.--To the extent necessary to make a 
    determination under paragraph (1), the contracting officer may 
    request the offeror to submit--
            (A) prices paid for the same or similar commercial items 
        under comparable terms and conditions by both government and 
        commercial customers; and
            (B) if the contracting officer determines that the 
        information described in subparagraph (A) is not sufficient to 
        determine the reasonableness of price, other relevant 
        information regarding the basis for price or cost, including 
        information on labor costs, material costs, and overhead rates.
    (c) Time-and-Materials Contracts.--
        (1) Commercial item acquisitions.--The regulations modified 
    pursuant to subsection (a) shall ensure that procedures applicable 
    to time-and-materials contracts and labor-hour contracts for 
    commercial item acquisitions may be used only for the following:
            (A) Services procured for support of a commercial item, as 
        described in section 4(12)(E) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(12)(E)).
            (B) Emergency repair services.
            (C) Any other commercial services only to the extent that 
        the head of the agency concerned approves a determination in 
        writing by the contracting officer that--
                (i) the services to be acquired are commercial services 
            as defined in section 4(12)(F) of the Office of Federal 
            Procurement Policy Act (41 U.S.C. 403(12)(F));
                (ii) if the services to be acquired are subject to 
            subsection (b), the offeror of the services has submitted 
            sufficient information in accordance with that subsection;
                (iii) such services are commonly sold to the general 
            public through use of time-and-materials or labor-hour 
            contracts; and
                (iv) the use of a time-and-materials or labor-hour 
            contract type is in the best interest of the Government.
        (2) Non-commercial item acquisitions.--Nothing in this 
    subsection shall be construed to preclude the use of procedures 
    applicable to time-and-materials contracts and labor-hour contracts 
    for non-commercial item acquisitions for the acquisition of any 
    category of services.

SEC. 806. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCUREMENT OF 
              CONTRACT SERVICES.

    (a) Specification of Amounts Requested.--The budget justification 
materials submitted to Congress in support of the budget of the 
Department of Defense for any fiscal year after fiscal year 2009 shall 
identify clearly and separately the amounts requested in each budget 
account for the procurement of contract services.
    (b) Information Provided.--For each budget account, the materials 
submitted shall clearly identify--
        (1) the amount requested for each Department of Defense 
    component, installation, or activity; and
        (2) the amount requested for each type of service to be 
    provided.
    (c) Contract Services Defined.--In this section, the term 
``contract services''--
        (1) means services from contractors; but
        (2) excludes services relating to research and development and 
    services relating to military construction.

SEC. 807. INVENTORIES AND REVIEWS OF CONTRACTS FOR SERVICES.

    (a) Inventory Requirement.--Section 2330a of title 10, United 
States Code, is amended--
        (1) by redesignating subsection (d) as subsection (g);
        (2) by striking subsection (c) and inserting the following:
    ``(c) Inventory.--(1) Not later than the end of the third quarter 
of each fiscal year, the Secretary of Defense shall submit to Congress 
an annual inventory of the activities performed during the preceding 
fiscal year pursuant to contracts for services for or on behalf of the 
Department of Defense. The entry for an activity on an inventory under 
this subsection shall include, for the fiscal year covered by such 
entry, the following:
        ``(A) The functions and missions performed by the contractor.
        ``(B) The contracting organization, the component of the 
    Department of Defense administering the contract, and the 
    organization whose requirements are being met through contractor 
    performance of the function.
        ``(C) The funding source for the contract under which the 
    function is performed by appropriation and operating agency.
        ``(D) The fiscal year for which the activity first appeared on 
    an inventory under this section.
        ``(E) The number of full-time contractor employees (or its 
    equivalent) paid for the performance of the activity.
        ``(F) A determination whether the contract pursuant to which 
    the activity is performed is a personal services contract.
        ``(G) A summary of the data required to be collected for the 
    activity under subsection (a).
    ``(2) The inventory required under this subsection shall be 
submitted in unclassified form, but may include a classified annex.
    ``(d) Public Availability of Inventories.--Not later than 30 days 
after the date on which an inventory under subsection (c) is required 
to be submitted to Congress, the Secretary shall--
        ``(1) make the inventory available to the public; and
        ``(2) publish in the Federal Register a notice that the 
    inventory is available to the public.
    ``(e) Review and Planning Requirements.--Within 90 days after the 
date on which an inventory is submitted under subsection (c), the 
Secretary of the military department or head of the Defense Agency 
responsible for activities in the inventory shall--
        ``(1) review the contracts and activities in the inventory for 
    which such Secretary or agency head is responsible;
        ``(2) ensure that--
            ``(A) each contract on the list that is a personal services 
        contract has been entered into, and is being performed, in 
        accordance with applicable statutory and regulatory 
        requirements;
            ``(B) the activities on the list do not include any 
        inherently governmental functions; and
            ``(C) to the maximum extent practicable, the activities on 
        the list do not include any functions closely associated with 
        inherently governmental functions;
        ``(3) identify activities that should be considered for 
    conversion--
            ``(A) to performance by civilian employees of the 
        Department of Defense pursuant to section 2463 of this title; 
        or
            ``(B) to an acquisition approach that would be more 
        advantageous to the Department of Defense; and
        ``(4) develop a plan to provide for appropriate consideration 
    of the conversion of activities identified under paragraph (3) 
    within a reasonable period of time.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to authorize the performance of personal services by a 
contractor except where expressly authorized by a provision of law 
other than this section.''; and
        (3) by adding at the end of subsection (g) (as so redesignated) 
    the following new paragraphs:
        ``(3) Function closely associated with inherently governmental 
    functions.--The term `function closely associated with inherently 
    governmental functions' has the meaning given that term in section 
    2383(b)(3) of this title.
        ``(4) Inherently governmental functions.--The term `inherently 
    governmental functions' has the meaning given that term in section 
    2383(b)(2) of this title.
        ``(5) Personal services contract.--The term `personal services 
    contract' means a contract under which, as a result of its terms or 
    conditions or the manner of its administration during performance, 
    contractor personnel are subject to the relatively continuous 
    supervision and control of one or more Government officers or 
    employees, except that the giving of an order for a specific 
    article or service, with the right to reject the finished product 
    or result, is not the type of supervision or control that makes a 
    contract a personal services contract.''.
    (b) Effective Date.--
        (1) The amendments made by subsection (a) shall be effective 
    upon the date of the enactment of this Act.
        (2) The first inventory required by section 2330a(c) of title 
    10, United States Code, as added by subsection (a), shall be 
    submitted not later than the end of the third quarter of fiscal 
    year 2008.

SEC. 808. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.

    (a) Guidance and Instructions.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall issue 
guidance, with detailed implementation instructions, for the Department 
of Defense to provide for periodic independent management reviews of 
contracts for services. The independent management review guidance and 
instructions issued pursuant to this subsection shall be designed to 
evaluate, at a minimum--
        (1) contract performance in terms of cost, schedule, and 
    requirements;
        (2) the use of contracting mechanisms, including the use of 
    competition, the contract structure and type, the definition of 
    contract requirements, cost or pricing methods, the award and 
    negotiation of task orders, and management and oversight 
    mechanisms;
        (3) the contractor's use, management, and oversight of 
    subcontractors;
        (4) the staffing of contract management and oversight 
    functions; and
        (5) the extent of any pass-throughs, and excessive pass-through 
    charges (as defined in section 852 of the John Warner National 
    Defense Authorization Act for Fiscal Year 2007), by the contractor.
    (b) Additional Subject of Review.--In addition to the matters 
required by subsection (a), the guidance and instructions issued 
pursuant to subsection (a) shall provide for procedures for the 
periodic review of contracts under which one contractor provides 
oversight for services performed by other contractors. In particular, 
the procedures shall be designed to evaluate, at a minimum--
        (1) the extent of the agency's reliance on the contractor to 
    perform acquisition functions closely associated with inherently 
    governmental functions as defined in section 2383(b)(3) of title 
    10, United States Code; and
        (2) the financial interest of any prime contractor performing 
    acquisition functions described in paragraph (1) in any contract or 
    subcontract with regard to which the contractor provided advice or 
    recommendations to the agency.
    (c) Elements.--The guidance and instructions issued pursuant to 
subsection (a) shall address, at a minimum--
        (1) the contracts subject to independent management reviews, 
    including any applicable thresholds and exceptions;
        (2) the frequency with which independent management reviews 
    shall be conducted;
        (3) the composition of teams designated to perform independent 
    management reviews;
        (4) any phase-in requirements needed to ensure that qualified 
    staff are available to perform independent management reviews;
        (5) procedures for tracking the implementation of 
    recommendations made by independent management review teams; and
        (6) procedures for developing and disseminating lessons learned 
    from independent management reviews.
    (c) Reports.--
        (1) Report on guidance and instruction.--Not later than 270 
    days after the date of the enactment of this Act, the Secretary of 
    Defense shall submit to the congressional defense committees a 
    report setting forth the guidance and instructions issued pursuant 
    to subsection (a).
        (2) GAO report on implementation.--Not later than two years 
    after the date of the enactment of this Act, the Comptroller 
    General of the United States shall submit to the congressional 
    defense committees a report on the implementation of the guidance 
    and instructions issued pursuant to subsection (a).

SEC. 809. IMPLEMENTATION AND ENFORCEMENT OF REQUIREMENTS APPLICABLE TO 
              UNDEFINITIZED CONTRACTUAL ACTIONS.

    (a) Guidance and Instructions.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall issue 
guidance, with detailed implementation instructions, for the Department 
of Defense to ensure the implementation and enforcement of requirements 
applicable to undefinitized contractual actions.
    (b) Elements.--The guidance and instructions issued pursuant to 
subsection (a) shall address, at a minimum--
        (1) the circumstances in which it is, and is not, appropriate 
    for Department of Defense officials to use undefinitized 
    contractual actions;
        (2) approval requirements (including thresholds) for the use of 
    undefinitized contractual actions;
        (3) procedures for ensuring that timelines for the 
    definitization of undefinitized contractual actions are met;
        (4) procedures for ensuring compliance with regulatory 
    limitations on the obligation of funds pursuant to undefinitized 
    contractual actions;
        (5) procedures for ensuring compliance with regulatory 
    limitations on profit or fee with respect to costs incurred before 
    the definitization of an undefinitized contractual action; and
        (6) reporting requirements for undefinitized contractual 
    actions that fail to meet required timelines for definitization or 
    fail to comply with regulatory limitations on the obligation of 
    funds or on profit or fee.
    (c) Reports.--
        (1) Report on guidance and instructions.--Not later than 210 
    days after the date of the enactment of this Act, the Secretary of 
    Defense shall submit to the congressional defense committees a 
    report setting forth the guidance and instructions issued pursuant 
    to subsection (a).
        (2) GAO report.--Not later than two years after the date of the 
    enactment of this Act, the Comptroller General of the United States 
    shall submit to the congressional defense committees a report on 
    the extent to which the guidance and instructions issued pursuant 
    to subsection (a) have resulted in improvements to--
            (A) the level of insight that senior Department of Defense 
        officials have into the use of undefinitized contractual 
        actions;
            (B) the appropriate use of undefinitized contractual 
        actions;
            (C) the timely definitization of undefinitized contractual 
        actions; and
            (D) the negotiation of appropriate profits and fees for 
        undefinitized contractual actions.

SEC. 810. CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR SPECIAL 
              OPERATIONS COMMAND.

    Section 167(e)(4) of title 10, United States Code, is amended--
        (1) by redesignating subparagraph (C) as subparagraph (D); and
        (2) by inserting after subparagraph (B) the following new 
    subparagraph:
    ``(C)(i) The staff of the commander shall include a command 
acquisition executive, who shall be responsible for the overall 
supervision of acquisition matters for the special operations command. 
The command acquisition executive shall have the authority to--
        ``(I) negotiate memoranda of agreement with the military 
    departments to carry out the acquisition of equipment, material, 
    supplies, and services described in subparagraph (A) on behalf of 
    the command;
        ``(II) supervise the acquisition of equipment, material, 
    supplies, and services described in subparagraph (A), regardless of 
    whether such acquisition is carried out by the command, or by a 
    military department pursuant to a delegation of authority by the 
    command;
        ``(III) represent the command in discussions with the military 
    departments regarding acquisition programs for which the command is 
    a customer; and
        ``(IV) work with the military departments to ensure that the 
    command is appropriately represented in any joint working group or 
    integrated product team regarding acquisition programs for which 
    the command is a customer.
    ``(ii) The command acquisition executive of the special operations 
command shall be included on the distribution list for acquisition 
directives and instructions of the Department of Defense.''.

 Subtitle B--Provisions Relating to Major Defense Acquisition Programs

SEC. 811. REQUIREMENTS APPLICABLE TO MULTIYEAR CONTRACTS FOR THE 
              PROCUREMENT OF MAJOR SYSTEMS OF THE DEPARTMENT OF 
              DEFENSE.

    (a) Additional Requirements Applicable to Multiyear Contracts.--
Section 2306b of title 10, United States Code, is amended as follows:
        (1) Subsection (a) of such section is amended by adding at the 
    end the following new paragraph:
        ``(7) In the case of a contract in an amount equal to or 
    greater than $500,000,000, that the conditions required by 
    subparagraphs (C) through (F) of paragraph (1) of subsection (i) 
    will be met, in accordance with the Secretary's certification and 
    determination under such subsection, by such contract.''.
        (2) Subsection (i)(1) of such section is amended by inserting 
    after ``unless'' the following: ``the Secretary of Defense 
    certifies in writing by no later than March 1 of the year in which 
    the Secretary requests legislative authority to enter into such 
    contract that''.
        (3) Subsection (i)(1) of such section is further amended--
            (A) by redesignating subparagraph (B) as subparagraph (G); 
        and
            (B) by striking subparagraph (A) and inserting the 
        following:
        ``(A) The Secretary has determined that each of the 
    requirements in paragraphs (1) through (6) of subsection (a) will 
    be met by such contract and has provided the basis for such 
    determination to the congressional defense committees.
        ``(B) The Secretary's determination under subparagraph (A) was 
    made after the completion of a cost analysis performed by the Cost 
    Analysis Improvement Group of the Department of Defense and such 
    analysis supports the findings.
        ``(C) The system being acquired pursuant to such contract has 
    not been determined to have experienced cost growth in excess of 
    the critical cost growth threshold pursuant to section 2433(d) of 
    this title within 5 years prior to the date the Secretary 
    anticipates such contract (or a contract for advance procurement 
    entered into consistent with the authorization for such contract) 
    will be awarded.
        ``(D) A sufficient number of end items of the system being 
    acquired under such contract have been delivered at or within the 
    most current estimates of the program acquisition unit cost or 
    procurement unit cost for such system to determine that current 
    estimates of such unit costs are realistic.
        ``(E) During the fiscal year in which such contract is to be 
    awarded, sufficient funds will be available to perform the contract 
    in such fiscal year, and the future-years defense program for such 
    fiscal year will include the funding required to execute the 
    program without cancellation.
        ``(F) The contract is a fixed price type contract.''.
        (4) Subsection (i) of such section is further amended by adding 
    at the end the following new paragraphs:
    ``(5) The Secretary may make the certification under paragraph (1) 
notwithstanding the fact that one or more of the conditions of such 
certification are not met if the Secretary determines that, due to 
exceptional circumstances, proceeding with a multiyear contract under 
this section is in the best interest of the Department of Defense and 
the Secretary provides the basis for such determination with the 
certification.
    ``(6) The Secretary of Defense may not delegate the authority to 
make the certification under paragraph (1) or the determination under 
paragraph (5) to an official below the level of Under Secretary of 
Defense for Acquisition, Technology, and Logistics.
    ``(7) The Secretary of Defense shall send a notification containing 
the findings of the agency head under subsection (a), and the basis for 
such findings, 30 days prior to the award of a multiyear contract for a 
defense acquisition program that has been specifically authorized by 
law.''.
        (5) Such section is further amended by adding at the end the 
    following new subsection:
    ``(m) Increased Funding and Reprogramming Requests.--Any request 
for increased funding for the procurement of a major system under a 
multiyear contract authorized under this section shall be accompanied 
by an explanation of how the request for increased funding affects the 
determinations made by the Secretary under subsection (i).''.
    (b) Applicability.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply with 
respect to multiyear contracts for the purchase of major systems for 
which legislative authority is requested on or after that date.

SEC. 812. CHANGES TO MILESTONE B CERTIFICATIONS.

    Section 2366a of title 10, United States Code, is amended--
        (1) by amending subsection (a) to read as follows:
    ``(a) Certification.--A major defense acquisition program may not 
receive Milestone B approval, or Key Decision Point B approval in the 
case of a space program, until the milestone decision authority--
        ``(1) has received a business case analysis and certifies on 
    the basis of the analysis that--
            ``(A) the program is affordable when considering the 
        ability of the Department of Defense to accomplish the 
        program's mission using alternative systems;
            ``(B) the program is affordable when considering the per 
        unit cost and the total acquisition cost in the context of the 
        total resources available during the period covered by the 
        future-years defense program submitted during the fiscal year 
        in which the certification is made;
            ``(C) reasonable cost and schedule estimates have been 
        developed to execute the product development and production 
        plan under the program; and
            ``(D) funding is available to execute the product 
        development and production plan under the program, through the 
        period covered by the future-years defense program submitted 
        during the fiscal year in which the certification is made, 
        consistent with the estimates described in subparagraph (C) for 
        the program; and
        ``(2) further certifies that--
            ``(A) appropriate market research has been conducted prior 
        to technology development to reduce duplication of existing 
        technology and products;
            ``(B) the Department of Defense has completed an analysis 
        of alternatives with respect to the program;
            ``(C) the Joint Requirements Oversight Council has 
        accomplished its duties with respect to the program pursuant to 
        section 181(b) of this title, including an analysis of the 
        operational requirements for the program;
            ``(D) the technology in the program has been demonstrated 
        in a relevant environment;
            ``(E) the program demonstrates a high likelihood of 
        accomplishing its intended mission; and
            ``(F) the program complies with all relevant policies, 
        regulations, and directives of the Department of Defense.'';
        (2) by redesignating subsections (b), (c), (d), and (e) as 
    subsections (c), (d), (e), and (f), respectively;
        (3) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Changes to Certification.--(1) The program manager for a 
major defense acquisition program that has received certification under 
subsection (a) shall immediately notify the milestone decision 
authority of any changes to the program that--
        ``(A) alter the substantive basis for the certification of the 
    milestone decision authority relating to any component of such 
    certification specified in paragraph (1) or (2) of subsection (a); 
    or
        ``(B) otherwise cause the program to deviate significantly from 
    the material provided to the milestone decision authority in 
    support of such certification.
    ``(2) Upon receipt of information under paragraph (1), the 
milestone decision authority may withdraw the certification concerned 
or rescind Milestone B approval (or Key Decision Point B approval in 
the case of a space program) if the milestone decision authority 
determines that such certification or approval is no longer valid.'';
        (4) in subsection (c), as redesignated by paragraph (1)--
            (A) by inserting ``(1)'' before ``The certification''; and
            (B) by adding at the end the following new paragraph (2):
    ``(2) A summary of any information provided to the milestone 
decision authority pursuant to subsection (b) and a description of the 
actions taken as a result of such information shall be submitted with 
the first Selected Acquisition Report submitted under section 2432 of 
this title after receipt of such information by the milestone decision 
authority.'';
        (5) in subsection (d), as so redesignated--
            (A) by striking ``authority may waive'' and inserting the 
        following: ``authority may, at the time of Milestone B approval 
        (or Key Decision Point B approval in the case of a space 
        program) or at the time that such milestone decision authority 
        withdraws a certification or rescinds Milestone B approval (or 
        Key Decision Point B approval in the case of a space program) 
        pursuant to subsection (b)(2), waive''; and
            (B) by striking ``paragraph (1), (2), (3), (4), (5), (6), 
        (7), (8), or (9)'' and inserting ``paragraph (1) or (2)''; and
        (6) in subsection (e), as so redesignated, by striking 
    ``subsection (c)'' and inserting ``subsection (d)''.

SEC. 813. COMPTROLLER GENERAL REPORT ON DEPARTMENT OF DEFENSE 
              ORGANIZATION AND STRUCTURE FOR MAJOR DEFENSE ACQUISITION 
              PROGRAMS.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the congressional defense committees a report on 
potential modifications of the organization and structure of the 
Department of Defense for major defense acquisition programs.
    (b) Elements.--The report required by subsection (a) shall include 
the results of a review, conducted by the Comptroller General for 
purposes of the report, regarding the feasibility and advisability of, 
at a minimum, the following:
        (1) Revising the acquisition process for major defense 
    acquisition programs by establishing shorter, more frequent 
    acquisition program milestones.
        (2) Requiring certifications of program status to the defense 
    acquisition executive and Congress prior to milestone approval for 
    major defense acquisition programs.
        (3) Establishing a new office (to be known as the ``Office of 
    Independent Assessment'') to provide independent cost estimates and 
    performance estimates for major defense acquisition programs.
        (4) Requiring the milestone decision authority for a major 
    defense acquisition program to specify, at the time of Milestone B 
    approval, or Key Decision Point B approval, as applicable, the 
    period of time that will be required to deliver an initial 
    operational capability to the relevant combatant commanders.
        (5) Establishing a materiel solutions process for addressing 
    identified gaps in critical warfighting capabilities, under which 
    process the Under Secretary of Defense for Acquisition, Technology, 
    and Logistics circulates among the military departments and 
    appropriate Defense Agencies a request for proposals for 
    technologies and systems to address such gaps.
        (6) Modifying the role played by chiefs of staff of the Armed 
    Forces in the requirements, resource allocation, and acquisition 
    processes.
        (7) Establishing a process in which the commanders of combatant 
    commands assess, and provide input on, the capabilities needed to 
    successfully accomplish the missions in the operational and 
    contingency plans of their commands over a long-term planning 
    horizon of 15 years or more, taking into account expected changes 
    in threats, the geo-political environment, and doctrine, training, 
    and operational concepts.
    (c) Consultation.--In conducting the review required under 
subsection (b) for the report required by subsection (a), the 
Comptroller General shall obtain the views of the following:
        (1) Senior acquisition officials currently serving in the 
    Department of Defense.
        (2) Senior military officers involved in setting requirements 
    for the joint staff, the Armed Forces, and the combatant commands 
    currently serving in the Department of Defense.
        (3) Individuals who formerly served as senior acquisition 
    officials in the Department of Defense.
        (4) Participants in previous reviews of the organization and 
    structure of the Department of Defense for the acquisition of major 
    weapon systems, including the President's Blue Ribbon Commission on 
    Defense Management in 1986.
        (5) Other experts on the acquisition of major weapon systems.
        (6) Appropriate experts in the Government Accountability 
    Office.

SEC. 814. CLARIFICATION OF SUBMISSION OF COST OR PRICING DATA ON 
              NONCOMMERCIAL MODIFICATIONS OF COMMERCIAL ITEMS.

    (a) Measurement of Percentage at Contract Award.--Section 
2306a(b)(3)(A) of title 10, United States Code, is amended by inserting 
after ``total price of the contract'' the following: ``(at the time of 
contract award)''.
    (b) Harmonization of Thresholds for Cost or Pricing Data.--Section 
2306a(b)(3)(A) of title 10, United States Code, is amended by striking 
``$500,000'' and inserting ``the amount specified in subsection 
(a)(1)(A)(i), as adjusted from time to time under subsection (a)(7),''.

SEC. 815. CLARIFICATION OF RULES REGARDING THE PROCUREMENT OF 
              COMMERCIAL ITEMS.

    (a) Treatment of Subsystems, Components, and Spare Parts as 
Commercial Items.--
        (1) In general.--Section 2379 of title 10, United States Code, 
    is amended--
            (A) in subsection (a)--
                (i) by redesignating paragraph (2) as paragraph (3);
                (ii) in paragraph (1)(B), by striking ``and'' at the 
            end; and
                (iii) by inserting after paragraph (1), the following:
        ``(2) the offeror has submitted sufficient information to 
    evaluate, through price analysis, the reasonableness of the price 
    for such system; and'';
            (B) by striking subsection (b) and inserting the following 
        new subsection (b):
    ``(b) Treatment of Subsystems as Commercial Items.--A subsystem of 
a major weapon system (other than a commercially available off-the-
shelf item as defined in section 35(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 431(c))) shall be treated as a 
commercial item and purchased under procedures established for the 
procurement of commercial items only if--
        ``(1) the subsystem is intended for a major weapon system that 
    is being purchased, or has been purchased, under procedures 
    established for the procurement of commercial items in accordance 
    with the requirements of subsection (a); or
        ``(2) the contracting officer determines in writing that--
            ``(A) the subsystem is a commercial item, as defined in 
        section 4(12) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(12)); and
            ``(B) the offeror has submitted sufficient information to 
        evaluate, through price analysis, the reasonableness of the 
        price for such subsystem.'';
            (C) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively; and
            (D) by inserting after subsection (b) the following new 
        subsections (c) and (d):
    ``(c) Treatment of Components and Spare Parts as Commercial 
Items.--(1) A component or spare part for a major weapon system (other 
than a commercially available off-the-shelf item as defined in section 
35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 
431(c))) may be treated as a commercial item for the purposes of 
section 2306a of this title only if--
        ``(A) the component or spare part is intended for--
            ``(i) a major weapon system that is being purchased, or has 
        been purchased, under procedures established for the 
        procurement of commercial items in accordance with the 
        requirements of subsection (a); or
            ``(ii) a subsystem of a major weapon system that is being 
        purchased, or has been purchased, under procedures established 
        for the procurement of commercial items in accordance with the 
        requirements of subsection (b); or
        ``(B) the contracting officer determines in writing that--
            ``(i) the component or spare part is a commercial item, as 
        defined in section 4(12) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(12)); and
            ``(ii) the offeror has submitted sufficient information to 
        evaluate, through price analysis, the reasonableness of the 
        price for such component or spare part.
    ``(2) This subsection shall apply only to components and spare 
parts that are acquired by the Department of Defense through a prime 
contract or a modification to a prime contract (or through a 
subcontract under a prime contract or modification to a prime contract 
on which the prime contractor adds no, or negligible, value).
    ``(d) Information Submitted.--To the extent necessary to make a 
determination under subsection (a)(2), (b)(2), or (c)(1)(B), the 
contracting officer may request the offeror to submit--
        ``(1) prices paid for the same or similar commercial items 
    under comparable terms and conditions by both government and 
    commercial customers; and
        ``(2) if the contracting officer determines that the 
    information described in paragraph (1) is not sufficient to 
    determine the reasonableness of price, other relevant information 
    regarding the basis for price or cost, including information on 
    labor costs, material costs, and overhead rates.''.
        (2) Conforming amendment to technical data provision.--Section 
    2321(f)(2) of such title is amended by striking ``(whether or not 
    under a contract for commercial items)'' and inserting ``(other 
    than technical data for a commercially available off-the-shelf item 
    as defined in section 35(c) of the Office of Federal Procurement 
    Policy Act (41 U.S.C. 431(c)))''.
    (b) Sales of Commercial Items to Nongovernmental Entities.--Not 
later than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall modify the regulations of the Department of 
Defense on the procurement of commercial items in order to clarify that 
the terms ``general public'' and ``nongovernmental entities'' in such 
regulations do not include the Federal Government or a State, local, or 
foreign government.

SEC. 816. REVIEW OF SYSTEMIC DEFICIENCIES ON MAJOR DEFENSE ACQUISITION 
              PROGRAMS.

    (a) Annual Review.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall conduct an annual review of systemic 
deficiencies in the major defense acquisition programs of the 
Department of Defense for each fiscal year in which three or more major 
defense acquisition programs--
        (1) experience a critical cost growth threshold breach;
        (2) have a section 2366a certification withdrawn; or
        (3) have a Milestone A approval or Key Decision Point A 
    approval rescinded, by the milestone decision authority under 
    subsection (b) of section 2366b of title 10, United States Code, as 
    added by section 943 of this Act.
    (b) Content of Review.--The review conducted under subsection (a) 
shall--
        (1) identify common factors, including any systemic 
    deficiencies in the budget, requirements, and acquisition policies 
    and practices, that may have contributed to problems with major 
    defense acquisition programs covered by the criteria in subsection 
    (a);
        (2) assess the adequacy of corrective actions taken or to be 
    taken to address cost growth or other performance deficiencies in 
    programs covered by the criteria in subsection (a); and
        (3) make recommendations for any changes in budget, 
    requirements, and acquisition policies and practices that may be 
    appropriate to avoid similar problems with major defense 
    acquisition programs in the future.
    (c) Definitions.--In this section:
        (1) Critical cost growth threshold breach.--The term ``critical 
    cost growth threshold breach'' means a determination under section 
    2433(d) of title 10, United States Code, by the Secretary of a 
    military department with respect to a major defense acquisition 
    program that the program acquisition unit cost has increased by a 
    percentage equal to or greater than the critical cost growth 
    threshold or that the procurement unit cost has increased by a 
    percentage equal to or greater than the critical cost growth 
    threshold.
        (2) Section 2366a certification.--The term ``section 2366a 
    certification'' means a certification with respect to a major 
    defense acquisition program under section 2366a(a) of title 10, 
    United States Code, by the milestone decision authority.
    (d) Report.--Not later than July 15, 2008, and not later than 
August 15 of each year from 2009 through 2012, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
results of the annual review conducted (if any) for the preceding 
fiscal year under subsection (a).
    (e) Sunset.--The requirement to conduct an annual review under 
subsection (a) shall terminate on September 30, 2012.

SEC. 817. INVESTMENT STRATEGY FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required.--Not later than May 1, 2008, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the strategies of the Department of Defense for balancing the 
allocation of funds and other resources among major defense acquisition 
programs.
    (b) Elements.--The report required by subsection (a) shall address, 
at a minimum, the ability of the organizations, policies, and 
procedures of the Department of Defense to provide for--
        (1) establishing priorities among needed capabilities under 
    major defense acquisition programs, and assessing the resources 
    (including funds, technologies, time, and personnel) needed to 
    achieve such capabilities;
        (2) balancing the cost, schedule, and requirements of major 
    defense acquisition programs, including those within the same 
    functional or mission area, to ensure the most efficient use of 
    resources; and
        (3) ensuring that the budget, requirements, and acquisition 
    processes of the Department of Defense work in a complementary 
    manner to achieve desired results.
    (c) Role of Tri-Chair Committee in Resource Allocation.--
        (1) In general.--The report required by subsection (a) shall 
    also address the role of the committee described in paragraph (2) 
    in the resource allocation process for major defense acquisition 
    programs.
        (2) Committee.--The committee described in this paragraph is a 
    committee (to be known as the ``Tri-Chair Committee'') composed of 
    the following:
            (A) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, who is one of the chairs of the 
        committee.
            (B) The Vice Chairman of the Joint Chiefs of Staff, who is 
        one of the chairs of the committee.
            (C) The Director of Program Analysis and Evaluation, who is 
        one of the chairs of the committee.
            (D) Any other appropriate officials of the Department of 
        Defense, as jointly agreed upon by the Under Secretary and the 
        Vice Chairman.
    (d) Changes in Law.--The report required by subsection (a) shall, 
to the maximum extent practicable, include a discussion of any changes 
in the budget, acquisition, and requirements processes of the 
Department of Defense undertaken as a result of changes in law pursuant 
to any section in this Act.
    (e) Recommendations.--The report required by subsection (a) shall 
include any recommendations, including recommendations for legislative 
action, that the Secretary considers appropriate to improve the 
organizations, policies, and procedures described in the report.

SEC. 818. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS ON TOTAL 
              OWNERSHIP COST FOR MAJOR WEAPON SYSTEMS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the extent of the 
implementation of the recommendations set forth in the February 2003 
report of the Government Accountability Office entitled ``Setting 
Requirements Differently Could Reduce Weapon Systems' Total Ownership 
Costs''.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (1) For each recommendation described in subsection (a) that 
    has been implemented, or that the Secretary plans to implement--
            (A) a summary of all actions that have been taken to 
        implement such recommendation; and
            (B) a schedule, with specific milestones, for completing 
        the implementation of such recommendation.
        (2) For each recommendation that the Secretary has not 
    implemented and does not plan to implement--
            (A) the reasons for the decision not to implement such 
        recommendation; and
            (B) a summary of any alternative actions the Secretary 
        plans to take to address the purposes underlying such 
        recommendation.
        (3) A summary of any additional actions the Secretary has taken 
    or plans to take to ensure that total ownership cost is 
    appropriately considered in the requirements process for major 
    weapon systems.

Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

SEC. 821. PLAN FOR RESTRICTING GOVERNMENT-UNIQUE CONTRACT CLAUSES ON 
              COMMERCIAL CONTRACTS.

    (a) Plan.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall develop and implement a plan to 
minimize the number of government-unique contract clauses used in 
commercial contracts by restricting the clauses to the following:
        (1) Government-unique clauses authorized by law or regulation.
        (2) Any additional clauses that are relevant and necessary to a 
    specific contract.
    (b) Commercial Contract.--In this section:
        (1) The term ``commercial contract'' means a contract awarded 
    by the Federal Government for the procurement of a commercial item.
        (2) The term ``commercial item'' has the meaning provided by 
    section 4(12) of the Office of Federal Procurement Policy Act (41 
    U.S.C. 403(12)).

SEC. 822. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION 
              PROCEDURES FOR CERTAIN COMMERCIAL ITEMS.

    (a) Extension.--Section 4202(e) of the Clinger-Cohen Act of 1996 
(division D of Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) 
is amended by striking ``January 1, 2008'' and inserting ``January 1, 
2010''.
    (b) Report.--Not later than March 1, 2008, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the use by the Department of Defense of the 
authority provided by section 4202(e) of the Clinger-Cohen Act of 1996 
(10 U.S.C. 2304 note). The report shall include, at a minimum, the 
following:
        (1) Summary data on the use of the authority.
        (2) Specific examples of the use of the authority.
        (3) An evaluation of potential benefits and costs of extending 
    the authority after January 1, 2010.

SEC. 823. FIVE-YEAR EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
              PROTOTYPE PROJECTS.

    Section 845(i) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended by striking ``September 30, 
2008'' and inserting ``September 30, 2013''.

SEC. 824. EXEMPTION OF SPECIAL OPERATIONS COMMAND FROM CERTAIN 
              REQUIREMENTS FOR CERTAIN CONTRACTS RELATING TO VESSELS, 
              AIRCRAFT, AND COMBAT VEHICLES.

    Section 2401(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5) In the case of a contract described in subsection (a)(1)(B), 
the commander of the special operations command may make a contract 
without regard to this subsection if--
        ``(A) funds are available and obligated for the full cost of 
    the contract (including termination costs) on or before the date 
    the contract is awarded;
        ``(B) the Secretary of Defense submits to the congressional 
    defense committees a certification that there is no alternative for 
    meeting urgent operational requirements other than making the 
    contract; and
        ``(C) a period of 30 days of continuous session of Congress has 
    expired following the date on which the certification was received 
    by such committees.''.

SEC. 825. PROVISION OF AUTHORITY TO MAINTAIN EQUIPMENT TO UNIFIED 
              COMBATANT COMMAND FOR JOINT WARFIGHTING.

    (a) Authority.--Section 167a of title 10, United States Code, is 
amended--
        (1) in subsection (a), by striking ``and acquire'' and 
    inserting ``, acquire, and maintain'';
        (2) by redesignating subsection (f) as subsection (g); and
        (3) by inserting after subsection (e) the following new 
    subsection:
    ``(f) Limitation on Authority To Maintain Equipment.--The authority 
delegated under subsection (a) to maintain equipment is subject to the 
availability of funds authorized and appropriated specifically for that 
purpose.''.
    (b) Two-Year Extension.--Subsection (g) of such section, as so 
redesignated, is amended--
        (1) by striking ``through 2008'' and inserting ``through 
    2010''; and
        (2) by striking ``September 30, 2008'' and inserting 
    ``September 30, 2010''.

SEC. 826. MARKET RESEARCH.

    (a) Additional Requirements.--Subsection (c) of section 2377 of 
title 10, United States Code, is amended--
        (1) in paragraph (1)--
            (A) by striking ``and'' at the end of subparagraph (A);
            (B) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (C) by adding at the end the following:
            ``(C) before awarding a task order or delivery order in 
        excess of the simplified acquisition threshold.''; and
        (2) by adding at the end the following:
    ``(4) The head of an agency shall take appropriate steps to ensure 
that any prime contractor of a contract (or task order or delivery 
order) in an amount in excess of $5,000,000 for the procurement of 
items other than commercial items engages in such market research as 
may be necessary to carry out the requirements of subsection (b)(2) 
before making purchases for or on behalf of the Department of 
Defense.''.
    (b) Requirement To Develop Training and Tools.--The Secretary of 
Defense shall develop training to assist contracting officers, and 
market research tools to assist such officers and prime contractors, in 
performing appropriate market research as required by subsection (c) of 
section 2377 of title 10, United States Code, as amended by this 
section.

SEC. 827. MODIFICATION OF COMPETITION REQUIREMENTS FOR PURCHASES FROM 
              FEDERAL PRISON INDUSTRIES.

    (a) Modification of Competition Requirements.--
        (1) In general.--Section 2410n of title 10, United States Code, 
    is amended by striking subsections (a) and (b) and inserting the 
    following new subsections (a) and (b):
    ``(a) Products for Which Federal Prison Industries Does Not Have 
Significant Market Share.--(1) Before purchasing a product listed in 
the latest edition of the Federal Prison Industries catalog under 
section 4124(d) of title 18 for which Federal Prison Industries does 
not have a significant market share, the Secretary of Defense shall 
conduct market research to determine whether the product is comparable 
to products available from the private sector that best meet the needs 
of the Department in terms of price, quality, and time of delivery.
    ``(2) If the Secretary determines that a Federal Prison Industries 
product described in paragraph (1) is not comparable in price, quality, 
or time of delivery to products of the private sector that best meets 
the needs of the Department in terms of price, quality, and time of 
delivery, the Secretary shall use competitive procedures for the 
procurement of the product, or shall make an individual purchase under 
a multiple award contract in accordance with the competition 
requirements applicable to such contract. In conducting such a 
competition, the Secretary shall consider a timely offer from Federal 
Prison Industries.
    ``(b) Products for Which Federal Prison Industries Has Significant 
Market Share.--(1) The Secretary of Defense may purchase a product 
listed in the latest edition of the Federal Prison Industries catalog 
for which Federal Prison Industries has a significant market share only 
if the Secretary uses competitive procedures for the procurement of the 
product or makes an individual purchase under a multiple award contract 
in accordance with the competition requirements applicable to such 
contract. In conducting such a competition, the Secretary shall 
consider a timely offer from Federal Prison Industries.
    ``(2) For purposes of this subsection, Federal Prison Industries 
shall be treated as having a significant share of the market for a 
product if the Secretary, in consultation with the Administrator of 
Federal Procurement Policy, determines that the Federal Prison 
Industries share of the Department of Defense market for the category 
of products including such product is greater than 5 percent.''.
        (2) Effective date.--The amendment made by subsection (a) shall 
    take effect 60 days after the date of the enactment of this Act.
    (b) List of Products for Which Federal Prison Industries Has 
Significant Market Share.--
        (1) Initial list.--Not later than 60 days after the date of the 
    enactment of this Act, the Secretary of Defense shall publish a 
    list of product categories for which Federal Prison Industries' 
    share of the Department of Defense market is greater than 5 
    percent, based on the most recent fiscal year for which data is 
    available.
        (2) Modification.--The Secretary may modify the list published 
    under paragraph (1) at any time if the Secretary determines that 
    new data require adding a product category to the list or omitting 
    a product category from the list.
        (3) Consultation.--The Secretary shall carry out this 
    subsection in consultation with the Administrator for Federal 
    Procurement Policy.

SEC. 828. MULTIYEAR CONTRACT AUTHORITY FOR ELECTRICITY FROM RENEWABLE 
              ENERGY SOURCES.

    (a) Multiyear Contract Authority.--Chapter 141 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2410q. Multiyear contracts: purchase of electricity from 
            renewable energy sources

    ``(a) Multiyear Contracts Authorized.--Subject to subsection (b), 
the Secretary of Defense may enter into a contract for a period not to 
exceed 10 years for the purchase of electricity from sources of 
renewable energy, as that term is defined in section 203(b)(2) of the 
Energy Policy Act of 2005 (42 U.S.C. 15852(b)(2)).
    ``(b) Limitations on Contracts for Periods in Excess of Five 
Years.--The Secretary may exercise the authority in subsection (a) to 
enter into a contract for a period in excess of five years only if the 
Secretary determines, on the basis of a business case analysis prepared 
by the Department of Defense, that--
        ``(1) the proposed purchase of electricity under such contract 
    is cost effective for the Department of Defense; and
        ``(2) it would not be possible to purchase electricity from the 
    source in an economical manner without the use of a contract for a 
    period in excess of five years.
    ``(c) Relationship to Other Multiyear Contracting Authority.--
Nothing in this section shall be construed to preclude the Department 
of Defense from using other multiyear contracting authority of the 
Department to purchase renewable energy.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by adding at the end the following 
new item:

``2410q. Multiyear contracts: purchase of electricity from renewable 
          energy sources.''.

SEC. 829. PROCUREMENT OF FIRE RESISTANT RAYON FIBER FOR THE PRODUCTION 
              OF UNIFORMS FROM FOREIGN SOURCES.

    (a) Authority To Procure.--The Secretary of Defense may procure 
fire resistant rayon fiber for the production of uniforms that is 
manufactured in a foreign country referred to in subsection (d) if the 
Secretary determines either of the following:
        (1) That fire resistant rayon fiber for the production of 
    uniforms is not available from sources within the national 
    technology and industrial base.
        (2) That--
            (A) procuring fire resistant rayon fiber manufactured from 
        suppliers within the national technology and industrial base 
        would result in sole-source contracts or subcontracts for the 
        supply of fire resistant rayon fiber; and
            (B) such sole-source contracts or subcontracts would not be 
        in the best interests of the Government or consistent with the 
        objectives of section 2304 of title 10, United States Code.
    (b) Submission to Congress.--Not later than 30 days after making a 
determination under subsection (a), the Secretary shall submit to 
Congress a copy of the determination.
    (c) Applicability to Subcontracts.--The authority under subsection 
(a) applies with respect to subcontracts under Department of Defense 
contracts as well as to such contracts.
    (d) Foreign Countries Covered.--The authority under subsection (a) 
applies with respect to a foreign country that--
        (1) is a party to a defense memorandum of understanding entered 
    into under section 2531 of title 10, United States Code; and
        (2) does not discriminate against defense items produced in the 
    United States to a greater degree than the United States 
    discriminates against defense items produced in that country.
    (e) National Technology and Industrial Base Defined.--In this 
section, the term ``national technology and industrial base'' has the 
meaning given that term in section 2500 of title 10, United States 
Code.
    (f) Sunset.--The authority under subsection (a) shall expire on the 
date that is five years after the date of the enactment of this Act.

SEC. 830. COMPTROLLER GENERAL REVIEW OF NONCOMPETITIVE AWARDS OF 
              CONGRESSIONAL AND EXECUTIVE BRANCH INTEREST ITEMS.

     Not later than one year after the date of the enactment of this 
Act, the Comptroller General of the United States shall submit to the 
congressional defense committees a report on the use of procedures 
other than competitive procedures in the award of contracts by the 
Department of Defense. The report shall compare the procedures used by 
the Department of Defense for the award of funds for new projects 
pursuant to congressionally directed spending items, as defined in rule 
XLIV of the Standing Rules of the Senate, or congressional earmarks, as 
defined in rule XXI of the Rules of the House of Representatives, with 
the procedures used by the Department of Defense for the award of funds 
for new projects of special interest to senior executive branch 
officials.

               Subtitle D--Accountability in Contracting

SEC. 841. COMMISSION ON WARTIME CONTRACTING IN IRAQ AND AFGHANISTAN.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Commission on Wartime Contracting'' (in this section 
referred to as the ``Commission'').
    (b) Membership Matters.--
        (1) Membership.--The Commission shall be composed of 8 members, 
    as follows:
            (A) 2 members shall be appointed by the majority leader of 
        the Senate, in consultation with the Chairmen of the Committee 
        on Armed Services, the Committee on Homeland Security and 
        Governmental Affairs, and the Committee on Foreign Relations of 
        the Senate.
            (B) 2 members shall be appointed by the Speaker of the 
        House of Representatives, in consultation with the Chairmen of 
        the Committee on Armed Services, the Committee on Oversight and 
        Government Reform, and the Committee on Foreign Affairs of the 
        House of Representatives.
            (C) 1 member shall be appointed by the minority leader of 
        the Senate, in consultation with the Ranking Minority Members 
        of the Committee on Armed Services, the Committee on Homeland 
        Security and Governmental Affairs, and the Committee on Foreign 
        Relations of the Senate.
            (D) 1 member shall be appointed by the minority leader of 
        the House of Representatives, in consultation with the Ranking 
        Minority Member of the Committee on Armed Services, the 
        Committee on Oversight and Government Reform, and the Committee 
        on Foreign Affairs of the House of Representatives.
            (E) 2 members shall be appointed by the President, in 
        consultation with the Secretary of Defense and the Secretary of 
        State.
        (2) Deadline for appointments.--All appointments to the 
    Commission shall be made not later than 120 days after the date of 
    the enactment of this Act.
        (3) Co-chairmen.--The Commission shall have two co-chairmen, 
    including--
            (A) a co-chairman who shall be a member of the Commission 
        jointly designated by the Speaker of the House of 
        Representatives and the majority leader of the Senate; and
            (B) a co-chairman who shall be a member of the Commission 
        jointly designated by the minority leader of the House of 
        Representatives and the minority leader of the Senate.
        (4) Vacancy.--In the event of a vacancy in a seat on the 
    Commission, the individual appointed to fill the vacant seat shall 
    be--
            (A) appointed by the same officer (or the officer's 
        successor) who made the appointment to the seat when the 
        Commission was first established; and
            (B) if the officer in subparagraph (A) is of a party other 
        than the party of the officer who made the appointment to the 
        seat when the Commission was first established, chosen in 
        consultation with the senior officers in the Senate and the 
        House of Representatives of the party which is the party of the 
        officer who made the appointment to the seat when the 
        Commission was first established.
    (c) Duties.--
        (1) General duties.--The Commission shall study the following 
    matters:
            (A) Federal agency contracting for the reconstruction of 
        Iraq and Afghanistan.
            (B) Federal agency contracting for the logistical support 
        of coalition forces operating in Iraq and Afghanistan.
            (C) Federal agency contracting for the performance of 
        security functions in Iraq and Afghanistan.
        (2) Scope of contracting covered.--The Federal agency 
    contracting covered by this subsection includes contracts entered 
    into both in the United States and abroad for the performance of 
    activities described in paragraph (1).
        (3) Particular duties.--In carrying out the study under this 
    subsection, the Commission shall assess--
            (A) the extent of the reliance of the Federal Government on 
        contractors to perform functions (including security functions) 
        in Iraq and Afghanistan and the impact of this reliance on the 
        achievement of the objectives of the United States;
            (B) the performance exhibited by Federal contractors for 
        the contracts under review pursuant to paragraph (1), and the 
        mechanisms used to evaluate contractor performance;
            (C) the extent of waste, fraud, and abuse under such 
        contracts;
            (D) the extent to which those responsible for such waste, 
        fraud, and abuse have been held financially or legally 
        accountable;
            (E) the appropriateness of the organizational structure, 
        policies, practices, and resources of the Department of Defense 
        and the Department of State for handling program management and 
        contracting for the programs and contracts under review 
        pursuant to paragraph (1);
            (F) the extent to which contractors under such contracts 
        have engaged in the misuse of force or have used force in a 
        manner inconsistent with the objectives of the operational 
        field commander; and
            (G) the extent of potential violations of the laws of war, 
        Federal law, or other applicable legal standards by contractors 
        under such contracts.
    (d) Reports.--
        (1) Interim report.--On March 1, 2009, the Commission shall 
    submit to Congress an interim report on the study carried out under 
    subsection (c), including the results and findings of the study as 
    of that date.
        (2) Other reports.--The Commission may from time to time submit 
    to Congress such other reports on the study carried out under 
    subsection (c) as the Commission considers appropriate.
        (3) Final report.--Not later than two years after the date of 
    the appointment of all of the members of the Commission under 
    subsection (b), the Commission shall submit to Congress a final 
    report on the study carried out under subsection (c). The report 
    shall--
            (A) include the findings of the Commission;
            (B) identify lessons learned relating to contingency 
        program management and contingency contracting covered by the 
        study; and
            (C) include specific recommendations for improvements to be 
        made in--
                (i) the process for defining requirements and 
            developing statements of work for contracts in contingency 
            contracting;
                (ii) the process for awarding contracts and task or 
            delivery orders in contingency contracting;
                (iii) the process for contingency program management;
                (iv) the process for identifying, addressing, and 
            providing accountability for waste, fraud, and abuse in 
            contingency contracting;
                (v) the process for determining which functions are 
            inherently governmental and which functions are appropriate 
            for performance by contractors in a contingency operation 
            (including during combat operations), especially whether 
            providing security in an area of combat operations is 
            inherently governmental;
                (vi) the organizational structure, resources, policies, 
            and practices of the Department of Defense and the 
            Department of State for performing contingency program 
            management; and
                (vii) the process by which roles and responsibilities 
            with respect to management and oversight of contracts in 
            contingency contracting are distributed among the various 
            departments and agencies of the Federal Government, and 
            interagency coordination and communication mechanisms 
            associated with contingency contracting.
    (e) Other Powers and Authorities.--
        (1) Hearings and evidence.--The Commission or, on the authority 
    of the Commission, any portion thereof, may, for the purpose of 
    carrying out this section--
            (A) hold such hearings and sit and act at such times and 
        places, take such testimony, receive such evidence, administer 
        such oaths (provided that the quorum for a hearing shall be 
        three members of the Commission); and
            (B) provide for the attendance and testimony of such 
        witnesses and the production of such books, records, 
        correspondence, memoranda, papers, and documents;
    as the Commission, or such portion thereof, may determine 
    advisable.
        (2) Inability to obtain documents or testimony.--In the event 
    the Commission is unable to obtain testimony or documents needed to 
    conduct its work, the Commission shall notify the committees of 
    Congress of jurisdiction and appropriate investigative authorities.
        (3) Access to information.--The Commission may secure directly 
    from the Department of Defense and any other department or agency 
    of the Federal Government any information or assistance that the 
    Commission considers necessary to enable the Commission to carry 
    out the requirements of this section. Upon request of the 
    Commission, the head of such department or agency shall furnish 
    such information expeditiously to the Commission. Whenever 
    information or assistance requested by the Commission is 
    unreasonably refused or not provided, the Commission shall report 
    the circumstances to Congress without delay.
        (4) Personnel.--The Commission shall have the authorities 
    provided in section 3161 of title 5, United States Code, and shall 
    be subject to the conditions set forth in such section, except to 
    the extent that such conditions would be inconsistent with the 
    requirements of this section.
        (5) Detailees.--Any employee of the Federal Government may be 
    detailed to the Commission without reimbursement from the 
    Commission, and such detailee shall retain the rights, status, and 
    privileges of his or her regular employment without interruption.
        (6) Security clearances.--The appropriate departments or 
    agencies of the Federal Government shall cooperate with the 
    Commission in expeditiously providing to the Commission members and 
    staff appropriate security clearances to the extent possible 
    pursuant to existing procedures and requirements, except that no 
    person shall be provided with access to classified information 
    under this section without the appropriate security clearances.
        (7) Violations of law.--
            (A) Referral to attorney general.--The Commission may refer 
        to the Attorney General any violation or potential violation of 
        law identified by the Commission in carrying out its duties 
        under this section.
            (B) Reports on results of referral.--The Attorney General 
        shall submit to Congress a report on each prosecution, 
        conviction, resolution, or other disposition that results from 
        a referral made under this subparagraph.
    (f) Termination.--The Commission shall terminate on the date that 
is 60 days after the date of the submittal of its final report under 
subsection (d)(3).
    (g) Definitions.--In this section:
        (1) Contingency contracting.--The term ``contingency 
    contracting'' means all stages of the process of acquiring property 
    or services during a contingency operation.
        (2) Contingency operation.--The term ``contingency operation'' 
    has the meaning given that term in section 101 of title 10, United 
    States Code.
        (3) Contingency program management.--The term ``contingency 
    program management'' means the process of planning, organizing, 
    staffing, controlling, and leading the combined efforts of 
    participating personnel for the management of a specific 
    acquisition program or programs during contingency operations.

SEC. 842. INVESTIGATION OF WASTE, FRAUD, AND ABUSE IN WARTIME CONTRACTS 
              AND CONTRACTING PROCESSES IN IRAQ AND AFGHANISTAN.

    (a) Audits Required.--Thorough audits shall be performed in 
accordance with this section to identify potential waste, fraud, and 
abuse in the performance of--
        (1) Department of Defense contracts, subcontracts, and task and 
    delivery orders for the logistical support of coalition forces in 
    Iraq and Afghanistan; and
        (2) Federal agency contracts, subcontracts, and task and 
    delivery orders for the performance of security and reconstruction 
    functions in Iraq and Afghanistan.
    (b) Audit Plans.--
        (1) The Department of Defense Inspector General shall develop a 
    comprehensive plan for a series of audits of contracts, 
    subcontracts, and task and delivery orders covered by subsection 
    (a)(1), consistent with the requirements of subsection (g), in 
    consultation with other Inspectors General specified in subsection 
    (c) with regard to any contracts, subcontracts, or task or delivery 
    orders over which such Inspectors General have jurisdiction.
        (2) The Special Inspector General for Iraq Reconstruction shall 
    develop a comprehensive plan for a series of audits of contracts, 
    subcontracts, and task and delivery orders covered by subsection 
    (a)(2) relating to Iraq, consistent with the requirements of 
    subsection (h), in consultation with other Inspectors General 
    specified in subsection (c) with regard to any contracts, 
    subcontracts, or task or delivery orders over which such Inspectors 
    General have jurisdiction.
        (3) The Special Inspector General for Afghanistan 
    Reconstruction shall develop a comprehensive plan for a series of 
    audits of contracts, subcontracts, and task and delivery orders 
    covered by subsection (a)(2) relating to Afghanistan, consistent 
    with the requirements of subsection (h), in consultation with other 
    Inspectors General specified in subsection (c) with regard to any 
    contracts, subcontracts, or task or delivery orders over which such 
    Inspectors General have jurisdiction.
    (c) Performance of Audits by Certain Inspectors General.--The 
Special Inspector General for Iraq Reconstruction, during such period 
as such office exists, the Special Inspector General for Afghanistan 
Reconstruction, during such period as such office exists, the Inspector 
General of the Department of Defense, the Inspector General of the 
Department of State, and the Inspector General of the United States 
Agency for International Development shall perform such audits as 
required by subsection (a) and identified in the audit plans developed 
pursuant to subsection (b) as fall within the respective scope of their 
duties as specified in law.
    (d) Coordination of Audits.--The Inspectors General specified in 
subsection (c) shall work to coordinate the performance of the audits 
required by subsection (a) and identified in the audit plans developed 
under subsection (b) including through councils and working groups 
composed of such Inspectors General.
    (e) Joint Audits.--If one or more audits required by subsection (a) 
and identified in an audit plan developed under subsection (b) falls 
within the scope of the duties of more than one of the Inspectors 
General specified in subsection (c), and such Inspectors General agree 
that such audit or audits are best pursued jointly, such Inspectors 
General shall enter into a memorandum of understanding relating to the 
performance of such audit or audits.
    (f) Separate Audits.--If one or more audits required by subsection 
(a) and identified in an audit plan developed under subsection (b) 
falls within the scope of the duties of more than one of the Inspectors 
General specified in subsection (c), and such Inspectors General do not 
agree that such audit or audits are best pursued jointly, such audit or 
audits shall be separately performed by one or more of the Inspectors 
General concerned.
    (g) Scope of Audits of Contracts.--Audits conducted pursuant to 
subsection (a)(1) shall examine, at a minimum, one or more of the 
following issues:
        (1) The manner in which contract requirements were developed.
        (2) The procedures under which contracts or task or delivery 
    orders were awarded.
        (3) The terms and conditions of contracts or task or delivery 
    orders.
        (4) The staffing and method of performance of contractors, 
    including cost controls.
        (5) The efficacy of Department of Defense management and 
    oversight, including the adequacy of staffing and training of 
    officials responsible for such management and oversight.
        (6) The flow of information from contractors to officials 
    responsible for contract management and oversight.
    (h) Scope of Audits of Other Contracts.--Audits conducted pursuant 
to subsection (a)(2) shall examine, at a minimum, one or more of the 
following issues:
        (1) The manner in which contract requirements were developed 
    and contracts or task and delivery orders were awarded.
        (2) The manner in which the Federal agency exercised control 
    over the performance of contractors.
        (3) The extent to which operational field commanders were able 
    to coordinate or direct the performance of contractors in an area 
    of combat operations.
        (4) The degree to which contractor employees were properly 
    screened, selected, trained, and equipped for the functions to be 
    performed.
        (5) The nature and extent of any incidents of misconduct or 
    unlawful activity by contractor employees.
        (6) The nature and extent of any activity by contractor 
    employees that was inconsistent with the objectives of operational 
    field commanders.
        (7) The extent to which any incidents of misconduct or unlawful 
    activity were reported, documented, investigated, and (where 
    appropriate) prosecuted.
    (i) Independent Conduct of Audit Functions.--All audit functions 
under this section, including audit planning and coordination, shall be 
performed by the relevant Inspectors General in an independent manner, 
without consultation with the Commission established pursuant to 
section 841 of this Act. All audit reports resulting from such audits 
shall be available to the Commission.

SEC. 843. ENHANCED COMPETITION REQUIREMENTS FOR TASK AND DELIVERY ORDER 
              CONTRACTS.

    (a) Defense Contracts.--
        (1) Limitation on single award contracts.--Section 2304a(d) of 
    title 10, United States Code, is amended--
            (A) by redesignating paragraph (3) as paragraph (4); and
            (B) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3)(A) No task or delivery order contract in an amount estimated 
to exceed $100,000,000 (including all options) may be awarded to a 
single source unless the head of the agency determines in writing 
that--
        ``(i) the task or delivery orders expected under the contract 
    are so integrally related that only a single source can reasonably 
    perform the work;
        ``(ii) the contract provides only for firm, fixed price task 
    orders or delivery orders for--
            ``(I) products for which unit prices are established in the 
        contract; or
            ``(II) services for which prices are established in the 
        contract for the specific tasks to be performed;
        ``(iii) only one source is qualified and capable of performing 
    the work at a reasonable price to the government; or
        ``(iv) because of exceptional circumstances, it is necessary in 
    the public interest to award the contract to a single source.
    ``(B) The head of the agency shall notify Congress within 30 days 
after any determination under subparagraph (A)(iv).''.
        (2) Enhanced competition for orders in excess of $5,000,000.--
    Section 2304c of such title is amended--
            (A) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively;
            (B) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Enhanced Competition for Orders in Excess of $5,000,000.--In 
the case of a task or delivery order in excess of $5,000,000, the 
requirement to provide all contractors a fair opportunity to be 
considered under subsection (b) is not met unless all such contractors 
are provided, at a minimum--
        ``(1) a notice of the task or delivery order that includes a 
    clear statement of the agency's requirements;
        ``(2) a reasonable period of time to provide a proposal in 
    response to the notice;
        ``(3) disclosure of the significant factors and subfactors, 
    including cost or price, that the agency expects to consider in 
    evaluating such proposals, and their relative importance;
        ``(4) in the case of an award that is to be made on a best 
    value basis, a written statement documenting the basis for the 
    award and the relative importance of quality and price or cost 
    factors; and
        ``(5) an opportunity for a post-award debriefing consistent 
    with the requirements of section 2305(b)(5) of this title.''; and
            (C) by striking subsection (e), as redesignated by 
        paragraph (1), and inserting the following new subsection (e):
    ``(e) Protests.--(1) A protest is not authorized in connection with 
the issuance or proposed issuance of a task or delivery order except 
for--
        ``(A) a protest on the ground that the order increases the 
    scope, period, or maximum value of the contract under which the 
    order is issued; or
        ``(B) a protest of an order valued in excess of $10,000,000.
    ``(2) Notwithstanding section 3556 of title 31, the Comptroller 
General of the United States shall have exclusive jurisdiction of a 
protest authorized under paragraph (1)(B).
    ``(3) This subsection shall be in effect for three years, beginning 
on the date that is 120 days after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2008.''.
        (3) Effective dates.--
            (A) Single award contracts.--The amendments made by 
        paragraph (1) shall take effect on the date that is 120 days 
        after the date of the enactment of this Act, and shall apply 
        with respect to any contract awarded on or after such date.
            (B) Orders in excess of $5,000,000.--The amendments made by 
        paragraph (2) shall take effect on the date that is 120 days 
        after the date of the enactment of this Act, and shall apply 
        with respect to any task or delivery order awarded on or after 
        such date.
    (b) Civilian Agency Contracts.--
        (1) Limitation on single award contracts.--Section 303H(d) of 
    the Federal Property and Administrative Services Act of 1949 (41 
    U.S.C. 253h(d)) is amended--
            (A) by redesignating paragraph (3) as paragraph (4); and
            (B) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3)(A) No task or delivery order contract in an amount estimated 
to exceed $100,000,000 (including all options) may be awarded to a 
single source unless the head of the executive agency determines in 
writing that--
        ``(i) the task or delivery orders expected under the contract 
    are so integrally related that only a single source can reasonably 
    perform the work;
        ``(ii) the contract provides only for firm, fixed price task 
    orders or delivery orders for--
            ``(I) products for which unit prices are established in the 
        contract; or
            ``(II) services for which prices are established in the 
        contract for the specific tasks to be performed;
        ``(iii) only one source is qualified and capable of performing 
    the work at a reasonable price to the government; or
        ``(iv) because of exceptional circumstances, it is necessary in 
    the public interest to award the contract to a single source.
    ``(B) The head of the executive agency shall notify Congress within 
30 days after any determination under subparagraph (A)(iv).''.
        (2) Enhanced competition for orders in excess of $5,000,000.--
    Section 303J of such Act (41 U.S.C. 253j) is amended--
            (A) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively;
            (B) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Enhanced Competition for Orders in Excess of $5,000,000.--In 
the case of a task or delivery order in excess of $5,000,000, the 
requirement to provide all contractors a fair opportunity to be 
considered under subsection (b) is not met unless all such contractors 
are provided, at a minimum--
        ``(1) a notice of the task or delivery order that includes a 
    clear statement of the executive agency's requirements;
        ``(2) a reasonable period of time to provide a proposal in 
    response to the notice;
        ``(3) disclosure of the significant factors and subfactors, 
    including cost or price, that the executive agency expects to 
    consider in evaluating such proposals, and their relative 
    importance;
        ``(4) in the case of an award that is to be made on a best 
    value basis, a written statement documenting the basis for the 
    award and the relative importance of quality and price or cost 
    factors; and
        ``(5) an opportunity for a post-award debriefing consistent 
    with the requirements of section 303B(e).''; and
            (C) by striking subsection (e), as redesignated by 
        paragraph (1), and inserting the following new subsection (e):
    ``(e) Protests.--(1) A protest is not authorized in connection with 
the issuance or proposed issuance of a task or delivery order except 
for--
        ``(A) a protest on the ground that the order increases the 
    scope, period, or maximum value of the contract under which the 
    order is issued; or
        ``(B) a protest of an order valued in excess of $10,000,000.
    ``(2) Notwithstanding section 3556 of title 31, United States Code, 
the Comptroller General of the United States shall have exclusive 
jurisdiction of a protest authorized under paragraph (1)(B).
    ``(3) This subsection shall be in effect for three years, beginning 
on the date that is 120 days after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2008.''.
        (3) Effective dates.--
            (A) Single award contracts.--The amendments made by 
        paragraph (1) shall take effect on the date that is 120 days 
        after the date of the enactment of this Act, and shall apply 
        with respect to any contract awarded on or after such date.
            (B) Orders in excess of $5,000,000.--The amendments made by 
        paragraph (2) shall take effect on the date that is 120 days 
        after the date of the enactment of this Act, and shall apply 
        with respect to any task or delivery order awarded on or after 
        such date.

SEC. 844. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS FOR 
              NONCOMPETITIVE CONTRACTS.

    (a) Civilian Agency Contracts.--
        (1) In general.--Section 303 of the Federal Property and 
    Administrative Services Act of 1949 (41 U.S.C. 253) is amended by 
    adding at the end the following new subsection:
    ``(j)(1)(A) Except as provided in subparagraph (B), in the case of 
a procurement permitted by subsection (c), the head of an executive 
agency shall make publicly available, within 14 days after the award of 
the contract, the documents containing the justification and approval 
required by subsection (f)(1) with respect to the procurement.
    ``(B) In the case of a procurement permitted by subsection (c)(2), 
subparagraph (A) shall be applied by substituting `30 days' for `14 
days'.
    ``(2) The documents shall be made available on the website of the 
agency and through a government-wide website selected by the 
Administrator for Federal Procurement Policy.
    ``(3) This subsection does not require the public availability of 
information that is exempt from public disclosure under section 552(b) 
of title 5, United States Code.''.
        (2) Conforming amendment.--Section 303(f) of such Act is 
    amended--
            (A) by striking paragraph (4); and
            (B) by redesignating paragraph (5) as paragraph (4).
    (b) Defense Agency Contracts.--
        (1) In general.--Section 2304 of title 10, United States Code, 
    is amended by adding at the end the following new subsection:
    ``(l)(1)(A) Except as provided in subparagraph (B), in the case of 
a procurement permitted by subsection (c), the head of an agency shall 
make publicly available, within 14 days after the award of the 
contract, the documents containing the justification and approval 
required by subsection (f)(1) with respect to the procurement.
    ``(B) In the case of a procurement permitted by subsection (c)(2), 
subparagraph (A) shall be applied by substituting `30 days' for `14 
days'.
    ``(2) The documents shall be made available on the website of the 
agency and through a government-wide website selected by the 
Administrator for Federal Procurement Policy.
    ``(3) This subsection does not require the public availability of 
information that is exempt from public disclosure under section 552(b) 
of title 5.''.
        (2) Conforming amendment.--Section 2304(f) of such title is 
    amended--
            (A) by striking paragraph (4); and
            (B) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

SEC. 845. DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS.

     (a) Required Annex on Significant Audit Findings.--
        (1) In general.--Each Inspector General appointed under the 
    Inspector General Act of 1978 shall submit, as part of the 
    semiannual report submitted to Congress pursuant to section 5 of 
    such Act, an annex on final, completed contract audit reports 
    issued to the contracting activity containing significant audit 
    findings issued during the period covered by the semiannual report 
    concerned.
        (2) Elements.--Such annex shall include--
            (A) a list of such contract audit reports;
            (B) for each audit report, a brief description of the 
        nature of the significant audit findings in the report; and
            (C) for each audit report, the specific amounts of costs 
        identified as unsupported, questioned, or disallowed.
        (3) Information exempt from public disclosure.--(A) Nothing in 
    this subsection shall be construed to require the release of 
    information to the public that is exempt from public disclosure 
    under section 552(b) of title 5, United States Code.
        (B) For each element required by paragraph (2), the Inspector 
    General concerned shall note each instance where information has 
    been redacted in accordance with the requirements of section 552(b) 
    of title 5, United States Code, and submit an unredacted annex to 
    the committees listed in subsection (d)(2) within 7 days after the 
    issuance of the semiannual report.
    (b) Defense Contract Audit Agency Included.--For purposes of 
subsection (a), audits of the Defense Contract Audit Agency shall be 
included in the annex provided by the Inspector General of the 
Department of Defense if they include significant audit findings.
    (c) Exception.--Subsection (a) shall not apply to an Inspector 
General if no audits described in such subsection were issued during 
the covered period.
    (d) Submission of Individual Audits.--
        (1) Requirement.--The head of each Federal department or agency 
    shall provide, within 14 days after a request in writing by the 
    chairman or ranking member of any committee listed in paragraph 
    (2), a full and unredacted copy of any audit described in 
    subsection (a). Such copy shall include an identification of 
    information in the audit exempt from public disclosure under 
    section 552(b) of title 5, United States Code.
        (2) Committees.--The committees listed in this paragraph are 
    the following:
            (A) The Committee on Oversight and Government Reform of the 
        House of Representatives.
            (B) The Committee on Homeland Security and Governmental 
        Affairs of the Senate.
            (C) The Committees on Appropriations of the House of 
        Representatives and the Senate.
            (D) With respect to the Department of Defense and the 
        Department of Energy, the Committees on Armed Services of the 
        Senate and House of Representatives.
            (E) The Committees of primary jurisdiction over the agency 
        or department to which the request is made.
    (e) Classified Information.--Nothing in this section shall be 
interpreted to require the handling of classified information or 
information relating to intelligence sources and methods in a manner 
inconsistent with any law, regulation, executive order, or rule of the 
House of Representatives or of the Senate relating to the handling or 
protection of such information.
    (f) Definitions.--In this section:
        (1) Significant audit findings.--The term ``significant audit 
    findings'' includes--
            (A) unsupported, questioned, or disallowed costs in an 
        amount in excess of $10,000,000; or
            (B) other findings that the Inspector General of the agency 
        or department concerned determines to be significant.
        (2) Contract.--The term ``contract'' includes a contract, an 
    order placed under a task or delivery order contract, or a 
    subcontract.

SEC. 846. PROTECTION FOR CONTRACTOR EMPLOYEES FROM REPRISAL FOR 
              DISCLOSURE OF CERTAIN INFORMATION.

    (a) Increased Protection From Reprisal.--Subsection (a) of section 
2409 of title 10, United States Code, is amended--
        (1) by striking ``disclosing to a Member of Congress'' and 
    inserting ``disclosing to a Member of Congress, a representative of 
    a committee of Congress, an Inspector General, the Government 
    Accountability Office, a Department of Defense employee responsible 
    for contract oversight or management,''; and
        (2) by striking ``information relating to a substantial 
    violation of law related to a contract (including the competition 
    for or negotiation of a contract)'' and inserting ``information 
    that the employee reasonably believes is evidence of gross 
    mismanagement of a Department of Defense contract or grant, a gross 
    waste of Department of Defense funds, a substantial and specific 
    danger to public health or safety, or a violation of law related to 
    a Department of Defense contract (including the competition for or 
    negotiation of a contract) or grant''.
    (b) Clarification of Inspector General Determination.--Subsection 
(b) of such section is amended--
        (1) by inserting ``(1)'' after ``Investigation of Complaints.--
    '';
        (2) by striking ``an agency'' and inserting ``the Department of 
    Defense, or the Inspector General of the National Aeronautics and 
    Space Administration in the case of a complaint regarding the 
    National Aeronautics and Space Administration''; and
        (3) by adding at the end the following new paragraph:
    ``(2)(A) Except as provided under subparagraph (B), the Inspector 
General shall make a determination that a complaint is frivolous or 
submit a report under paragraph (1) within 180 days after receiving the 
complaint.
    ``(B) If the Inspector General is unable to complete an 
investigation in time to submit a report within the 180-day period 
specified in subparagraph (A) and the person submitting the complaint 
agrees to an extension of time, the Inspector General shall submit a 
report under paragraph (1) within such additional period of time as 
shall be agreed upon between the Inspector General and the person 
submitting the complaint.''.
    (c) Acceleration of Schedule for Denying Relief or Providing 
Remedy.--Subsection (c) of such section is amended--
        (1) in paragraph (1), by striking ``If the head of the agency 
    determines that a contractor has subjected a person to a reprisal 
    prohibited by subsection (a), the head of the agency may'' and 
    inserting after ``(1)'' the following: ``Not later than 30 days 
    after receiving an Inspector General report pursuant to subsection 
    (b), the head of the agency concerned shall determine whether there 
    is sufficient basis to conclude that the contractor concerned has 
    subjected the complainant to a reprisal prohibited by subsection 
    (a) and shall either issue an order denying relief or shall'';
        (2) by redesignating paragraphs (2) and (3) as paragraphs (4) 
    and (5), respectively; and
        (3) by inserting after paragraph (1) the following new 
    paragraphs:
    ``(2) If the head of an executive agency issues an order denying 
relief under paragraph (1) or has not issued an order within 210 days 
after the submission of a complaint under subsection (b), or in the 
case of an extension of time under paragraph (b)(2)(B), not later than 
30 days after the expiration of the extension of time, and there is no 
showing that such delay is due to the bad faith of the complainant, the 
complainant shall be deemed to have exhausted all administrative 
remedies with respect to the complaint, and the complainant may bring a 
de novo action at law or equity against the contractor to seek 
compensatory damages and other relief available under this section in 
the appropriate district court of the United States, which shall have 
jurisdiction over such an action without regard to the amount in 
controversy. Such an action shall, at the request of either party to 
the action, be tried by the court with a jury.
    ``(3) An Inspector General determination and an agency head order 
denying relief under paragraph (2) shall be admissible in evidence in 
any de novo action at law or equity brought pursuant to this 
subsection.''.
    (d) Definitions.--Subsection (e) of such section is amended--
        (1) in paragraph (4), by inserting ``or a grant'' after ``a 
    contract''; and
        (2) by inserting before the period at the end the following: 
    ``and any Inspector General that receives funding from, or has 
    oversight over contracts awarded for or on behalf of, the Secretary 
    of Defense''.

SEC. 847. REQUIREMENTS FOR SENIOR DEPARTMENT OF DEFENSE OFFICIALS 
              SEEKING EMPLOYMENT WITH DEFENSE CONTRACTORS.

    (a) Requirement to Seek and Obtain Written Opinion.--
        (1) Request.--An official or former official of the Department 
    of Defense described in subsection (c) who, within two years after 
    leaving service in the Department of Defense, expects to receive 
    compensation from a Department of Defense contractor, shall, prior 
    to accepting such compensation, request a written opinion regarding 
    the applicability of post-employment restrictions to activities 
    that the official or former official may undertake on behalf of a 
    contractor.
        (2) Submission of request.--A request for a written opinion 
    under paragraph (1) shall be submitted in writing to an ethics 
    official of the Department of Defense having responsibility for the 
    organization in which the official or former official serves or 
    served and shall set forth all information relevant to the request, 
    including information relating to government positions held and 
    major duties in those positions, actions taken concerning future 
    employment, positions sought, and future job descriptions, if 
    applicable.
        (3) Written opinion.--Not later than 30 days after receiving a 
    request by an official or former official of the Department of 
    Defense described in subsection (c), the appropriate ethics 
    counselor shall provide such official or former official a written 
    opinion regarding the applicability or inapplicability of post-
    employment restrictions to activities that the official or former 
    official may undertake on behalf of a contractor.
        (4) Contractor requirement.--A Department of Defense contractor 
    may not knowingly provide compensation to a former Department of 
    Defense official described in subsection (c) within two years after 
    such former official leaves service in the Department of Defense, 
    without first determining that the former official has sought and 
    received (or has not received after 30 days of seeking) a written 
    opinion from the appropriate ethics counselor regarding the 
    applicability of post-employment restrictions to the activities 
    that the former official is expected to undertake on behalf of the 
    contractor.
        (5) Administrative actions.--In the event that an official or 
    former official of the Department of Defense described in 
    subsection (c), or a Department of Defense contractor, knowingly 
    fails to comply with the requirements of this subsection, the 
    Secretary of Defense may take any of the administrative actions set 
    forth in section 27(e) of the Office of Federal Procurement Policy 
    Act (41 U.S.C. 423(e)) that the Secretary of Defense determines to 
    be appropriate.
    (b) Recordkeeping Requirement.--
        (1) Database.--Each request for a written opinion made pursuant 
    to this section, and each written opinion provided pursuant to such 
    a request, shall be retained by the Department of Defense in a 
    central database or repository for not less than five years 
    beginning on the date on which the written opinion was provided.
        (2) Inspector general review.--The Inspector General of the 
    Department of Defense shall conduct periodic reviews to ensure that 
    written opinions are being provided and retained in accordance with 
    the requirements of this section. The first such review shall be 
    conducted no later than two years after the date of the enactment 
    of this Act.
    (c) Covered Department of Defense Officials.--An official or former 
official of the Department of Defense is covered by the requirements of 
this section if such official or former official--
        (1) participated personally and substantially in an acquisition 
    as defined in section 4(16) of the Office of Federal Procurement 
    Policy Act with a value in excess of $10,000,000 and serves or 
    served--
            (A) in an Executive Schedule position under subchapter II 
        of chapter 53 of title 5, United States Code;
            (B) in a position in the Senior Executive Service under 
        subchapter VIII of chapter 53 of title 5, United States Code; 
        or
            (C) in a general or flag officer position compensated at a 
        rate of pay for grade O-7 or above under section 201 of title 
        37, United States Code; or
        (2) serves or served as a program manager, deputy program 
    manager, procuring contracting officer, administrative contracting 
    officer, source selection authority, member of the source selection 
    evaluation board, or chief of a financial or technical evaluation 
    team for a contract in an amount in excess of $10,000,000.
    (d) Definition.--In this section, the term ``post-employment 
restrictions'' includes--
        (1) section 27 of the Office of Federal Procurement Policy Act 
    (41 U.S.C. 423);
        (2) section 207 of title 18, United States Code; and
        (3) any other statute or regulation restricting the employment 
    or activities of individuals who leave government service in the 
    Department of Defense.

SEC. 848. REPORT ON CONTRACTOR ETHICS PROGRAMS OF MAJOR DEFENSE 
              CONTRACTORS.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the internal ethics programs of 
major defense contractors.
    (b) Elements.--The report required by subsection (a) shall address, 
at a minimum--
        (1) the extent to which major defense contractors have internal 
    ethics programs in place;
        (2) the extent to which the ethics programs described in 
    paragraph (1) include--
            (A) the availability of internal mechanisms, such as 
        hotlines, for contractor employees to report conduct that may 
        violate applicable requirements of law or regulation;
            (B) notification to contractor employees of the 
        availability of external mechanisms, such as the hotline of the 
        Inspector General of the Department of Defense, for the 
        reporting of conduct that may violate applicable requirements 
        of law or regulation;
            (C) notification to contractor employees of their right to 
        be free from reprisal for disclosing a substantial violation of 
        law related to a contract, in accordance with section 2409 of 
        title 10, United States Code;
            (D) ethics training programs for contractor officers and 
        employees;
            (E) internal audit or review programs to identify and 
        address conduct that may violate applicable requirements of law 
        or regulation;
            (F) self-reporting requirements, under which contractors 
        report conduct that may violate applicable requirements of law 
        or regulation to appropriate government officials;
            (G) disciplinary action for contractor employees whose 
        conduct is determined to have violated applicable requirements 
        of law or regulation; and
            (H) appropriate management oversight to ensure the 
        successful implementation of such ethics programs;
        (3) the extent to which the Department of Defense monitors or 
    approves the ethics programs of major defense contractors; and
        (4) the advantages and disadvantages of legislation requiring 
    that defense contractors develop internal ethics programs and 
    requiring that specific elements be included in such ethics 
    programs.
    (c) Access to Information.--In accordance with the contract clause 
required pursuant to section 2313(c) of title 10, United States Code, 
each major defense contractor shall provide the Comptroller General 
access to information requested by the Comptroller General that is 
within the scope of the report required by this section.
    (d) Major Defense Contractor Defined.--In this section, the term 
``major defense contractor'' means any company that was awarded 
contracts by the Department of Defense during fiscal year 2006 in 
amounts totaling more than $500,000,000.

SEC. 849. CONTINGENCY CONTRACTING TRAINING FOR PERSONNEL OUTSIDE THE 
              ACQUISITION WORKFORCE AND EVALUATIONS OF ARMY COMMISSION 
              RECOMMENDATIONS.

    (a) Training Requirement.--Section 2333 of title 10, United States 
Code is amended--
        (1) by redesignating subsection (e) as subsection (f); and
        (2) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e) Training for Personnel Outside Acquisition Workforce.--(1) 
The joint policy for requirements definition, contingency program 
management, and contingency contracting required by subsection (a) 
shall provide for training of military personnel outside the 
acquisition workforce (including operational field commanders and 
officers performing key staff functions for operational field 
commanders) who are expected to have acquisition responsibility, 
including oversight duties associated with contracts or contractors, 
during combat operations, post-conflict operations, and contingency 
operations.
    ``(2) Training under paragraph (1) shall be sufficient to ensure 
that the military personnel referred to in that paragraph understand 
the scope and scale of contractor support they will experience in 
contingency operations and are prepared for their roles and 
responsibilities with regard to requirements definition, program 
management (including contractor oversight), and contingency 
contracting.
    ``(3) The joint policy shall also provide for the incorporation of 
contractors and contract operations in mission readiness exercises for 
operations that will include contracting and contractor support.''.
    (b) Organizational Requirements.--
        (1) Evaluation by the secretary of defense.--The Secretary of 
    Defense, in consultation with the Chairman of the Joint Chiefs of 
    Staff, shall evaluate the recommendations included in the report of 
    the Commission on Army Acquisition and Program Management in 
    Expeditionary Operations and shall determine the extent to which 
    such recommendations are applicable to the other Armed Forces. Not 
    later than 120 days after the date of the enactment of this Act, 
    the Secretary of Defense shall submit a report to the congressional 
    defense committees with the conclusions of this evaluation and a 
    description of the Secretary's plans for implementing the 
    Commission's recommendations for Armed Forces other than the Army.
        (2) Evaluation by the secretary of the army.--The Secretary of 
    the Army, in consultation with the Chief of Staff of the Army, 
    shall evaluate the recommendations included in the report of the 
    Commission on Army Acquisition and Program Management in 
    Expeditionary Operations. Not later than 120 days after the date of 
    the enactment of this Act, the Secretary of the Army shall submit 
    to the congressional defense committees a report detailing the 
    Secretary's plans for implementation of the recommendations of the 
    Commission. The report shall include the following:
            (A) For each recommendation that has been implemented, or 
        that the Secretary plans to implement--
                (i) a summary of all actions that have been taken to 
            implement such recommendation; and
                (ii) a schedule, with specific milestones, for 
            completing the implementation of such recommendation.
            (B) For each recommendation that the Secretary has not 
        implemented and does not plan to implement--
                (i) the reasons for the decision not to implement such 
            recommendation; and
                (ii) a summary of any alternative actions the Secretary 
            plans to take to address the purposes underlying such 
            recommendation.
            (C) For each recommendation that would require legislation 
        to implement, the Secretary's recommendations regarding such 
        legislation.
    (c) Comptroller General Report.--Section 854(c) of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364; 120 Stat. 2346) is amended by adding at the end the following 
new paragraph:
        ``(3) Comptroller general report.--Not later than 180 days 
    after the date on which the Secretary of Defense submits the final 
    report required by paragraph (2), the Comptroller General of the 
    United States shall--
            ``(A) review the joint policies developed by the Secretary, 
        including the implementation of such policies; and
            ``(B) submit to the Committees on Armed Services of the 
        Senate and the House of Representatives a report on the extent 
        to which such policies, and the implementation of such 
        policies, comply with the requirements of section 2333 of title 
        10, United States Code (as so amended).''.

              Subtitle E--Acquisition Workforce Provisions

SEC. 851. REQUIREMENT FOR SECTION ON DEFENSE ACQUISITION WORKFORCE IN 
              STRATEGIC HUMAN CAPITAL PLAN.

    (a) In General.--In the update of the strategic human capital plan 
for 2008, and in each subsequent update, the Secretary of Defense shall 
include a separate section focused on the defense acquisition 
workforce, including both military and civilian personnel.
    (b) Funding.--The section shall contain--
        (1) an identification of the funding programmed for defense 
    acquisition workforce improvements, including a specific 
    identification of funding provided in the Department of Defense 
    Acquisition Workforce Fund established under section 1705 of title 
    10, United States Code (as added by section 852 of this Act);
        (2) an identification of the funding programmed for defense 
    acquisition workforce training in the future-years defense program, 
    including a specific identification of funding provided by the 
    acquisition workforce training fund established under section 
    37(h)(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 
    433(h)(3));
        (3) a description of how the funding identified pursuant to 
    paragraphs (1) and (2) will be implemented during the fiscal year 
    concerned to address the areas of need identified in accordance 
    with subsection (c);
        (4) a statement of whether the funding identified under 
    paragraphs (1) and (2) is being fully used; and
        (5) a description of any continuing shortfall in funding 
    available for the defense acquisition workforce.
    (c) Areas of Need.--The section also shall identify any areas of 
need in the defense acquisition workforce, including--
        (1) gaps in the skills and competencies of the current or 
    projected defense acquisition workforce;
        (2) changes to the types of skills needed in the current or 
    projected defense acquisition workforce;
        (3) incentives to retain in the defense acquisition workforce 
    qualified, experienced defense acquisition workforce personnel; and
        (4) incentives for attracting new, high-quality personnel to 
    the defense acquisition workforce.
    (d) Strategic Human Capital Plan Defined.--In this section, the 
term ``strategic human capital plan'' means the strategic human capital 
plan required under section 1122 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3452; 10 U.S.C. 
prec. 1580 note).

SEC. 852. DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND.

    (a) In General.--
        (1) Establishment of fund.--Chapter 87 of title 10, United 
    States Code, is amended by inserting after section 1704 the 
    following new section:

``Sec. 1705. Department of Defense Acquisition Workforce Development 
            Fund

    ``(a) Establishment.--The Secretary of Defense shall establish a 
fund to be known as the `Department of Defense Acquisition Workforce 
Fund' (in this section referred to as the `Fund') to provide funds, in 
addition to other funds that may be available, for the recruitment, 
training, and retention of acquisition personnel of the Department of 
Defense.
    ``(b) Purpose.--The purpose of the Fund is to ensure that the 
Department of Defense acquisition workforce has the capacity, in both 
personnel and skills, needed to properly perform its mission, provide 
appropriate oversight of contractor performance, and ensure that the 
Department receives the best value for the expenditure of public 
resources.
    ``(c) Management.--The Fund shall be managed by a senior official 
of the Department of Defense designated by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics for that purpose, 
from among persons with an extensive background in management relating 
to acquisition and personnel.
    ``(d) Elements.--
        ``(1) In general.--The Fund shall consist of amounts as 
    follows:
            ``(A) Amounts credited to the Fund under paragraph (2).
            ``(B) Any other amounts appropriated to, credited to, or 
        deposited into the Fund by law.
        ``(2) Credits to the fund.--(A) There shall be credited to the 
    Fund an amount equal to the applicable percentage for a fiscal year 
    of all amounts expended by the Department of Defense in such fiscal 
    year for contract services, other than services relating to 
    research and development and services relating to military 
    construction.
        ``(B) Not later than 30 days after the end of the third fiscal 
    year quarter of fiscal year 2008, and 30 days after the end of each 
    fiscal year quarter thereafter, the head of each military 
    department and Defense Agency shall remit to the Secretary of 
    Defense an amount equal to the applicable percentage for such 
    fiscal year of the amount expended by such military department or 
    Defense Agency, as the case may be, during such fiscal year quarter 
    for services covered by subparagraph (A). Any amount so remitted 
    shall be credited to the Fund under subparagraph (A).
        ``(C) For purposes of this paragraph, the applicable percentage 
    for a fiscal year is a percentage as follows:
            ``(i) For fiscal year 2008, 0.5 percent.
            ``(ii) For fiscal year 2009, 1 percent.
            ``(iii) For fiscal year 2010, 1.5 percent.
            ``(iv) For any fiscal year after fiscal year 2010, 2 
        percent.
        ``(D) The Secretary of Defense may reduce a percentage 
    established in subparagraph (C) for any fiscal year, if he 
    determines that the application of such percentage would result in 
    the crediting of an amount greater than is reasonably needed for 
    the purpose of the Fund. In no event may the Secretary reduce a 
    percentage for any fiscal year below a percentage that results in 
    the deposit in a fiscal year of an amount equal to the following:
            ``(i) For fiscal year 2008, $300,000,000.
            ``(ii) For fiscal year 2009, $400,000,000.
            ``(iii) For fiscal year 2010, $500,000,000.
            ``(iv) For any fiscal year after fiscal year 2010, 
        $600,000,000.
    ``(e) Availability of Funds.--
        ``(1) In general.--Subject to the provisions of this 
    subsection, amounts in the Fund shall be available to the Secretary 
    of Defense for expenditure, or for transfer to a military 
    department or Defense Agency, for the recruitment, training, and 
    retention of acquisition personnel of the Department of Defense for 
    the purpose of the Fund, including for the provision of training 
    and retention incentives to the acquisition workforce of the 
    Department.
        ``(2) Prohibition.--Amounts in the Fund may not be obligated 
    for any purpose other than purposes described in paragraph (1) or 
    otherwise in accordance with this subsection.
        ``(3) Guidance.--The Under Secretary of Defense for 
    Acquisition, Technology, and Logistics, acting through the senior 
    official designated to manage the Fund, shall issue guidance for 
    the administration of the Fund. Such guidance shall include 
    provisions--
            ``(A) identifying areas of need in the acquisition 
        workforce for which amounts in the Fund may be used, 
        including--
                ``(i) changes to the types of skills needed in the 
            acquisition workforce;
                ``(ii) incentives to retain in the acquisition 
            workforce qualified, experienced acquisition workforce 
            personnel; and
                ``(iii) incentives for attracting new, high-quality 
            personnel to the acquisition workforce;
            ``(B) describing the manner and timing for applications for 
        amounts in the Fund to be submitted;
            ``(C) describing the evaluation criteria to be used for 
        approving or prioritizing applications for amounts in the Fund 
        in any fiscal year; and
            ``(D) describing measurable objectives of performance for 
        determining whether amounts in the Fund are being used in 
        compliance with this section.
        ``(4) Limitation on payments to or for contractors.--Amounts in 
    the Fund shall not be available for payments to contractors or 
    contractor employees, other than for the purpose of providing 
    advanced training to Department of Defense employees.
        ``(5) Prohibition on payment of base salary of current 
    employees.--Amounts in the Fund may not be used to pay the base 
    salary of any person who was an employee of the Department as of 
    the date of the enactment of the National Defense Authorization Act 
    for Fiscal Year 2008.
        ``(6) Duration of availability.--Amounts credited to the Fund 
    under subsection (d)(2) shall remain available for expenditure in 
    the fiscal year for which credited and the two succeeding fiscal 
    years.
    ``(f) Annual Report.--Not later than 60 days after the end of each 
fiscal year beginning with fiscal year 2008, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
operation of the Fund during such fiscal year. Each report shall 
include, for the fiscal year covered by such report, the following:
        ``(1) A statement of the amounts remitted to the Secretary for 
    crediting to the Fund for such fiscal year by each military 
    department and Defense Agency, and a statement of the amounts 
    credited to the Fund for such fiscal year.
        ``(2) A description of the expenditures made from the Fund 
    (including expenditures following a transfer of amounts in the Fund 
    to a military department or Defense Agency) in such fiscal year, 
    including the purpose of such expenditures.
        ``(3) A description and assessment of improvements in the 
    Department of Defense acquisition workforce resulting from such 
    expenditures.
        ``(4) Recommendations for additional authorities to fulfill the 
    purpose of the Fund.
        ``(5) A statement of the balance remaining in the Fund at the 
    end of such fiscal year.
    ``(g) Acquisition Workforce Defined.--In this section, the term 
`acquisition workforce' means personnel in positions designated under 
section 1721 of this title as acquisition positions for purposes of 
this chapter.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of subchapter I of such chapter is amended by inserting after the 
    item relating to section 1704 the following new item:

``1705. Department of Defense Acquisition Workforce Development Fund.''.

    (b) Effective Date.--Section 1705 of title 10, United States Code, 
as added by subsection (a), shall take effect on the date of the 
enactment of this Act.

SEC. 853. EXTENSION OF AUTHORITY TO FILL SHORTAGE CATEGORY POSITIONS 
              FOR CERTAIN FEDERAL ACQUISITION POSITIONS.

    Section 1413(b) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1665) is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2012''.

SEC. 854. REPEAL OF SUNSET OF ACQUISITION WORKFORCE TRAINING FUND.

    Section 37(h)(3) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 433(h)(3)) is amended by striking subparagraph (H).

SEC. 855. FEDERAL ACQUISITION WORKFORCE IMPROVEMENTS.

    (a) Associate Administrator for Acquisition Workforce Programs.--
The Administrator for Federal Procurement Policy shall designate a 
member of the Senior Executive Service as the Associate Administrator 
for Acquisition Workforce Programs. The Associate Administrator for 
Acquisition Workforce Programs shall be located in the Federal 
Acquisition Institute (or its successor). The Associate Administrator 
shall be responsible for--
        (1) supervising the acquisition workforce training fund 
    established under section 37(h)(3) of the Office of Federal 
    Procurement Policy Act (41 U. S. C. 433(h)(3));
        (2) developing, in coordination with Chief Acquisition Officers 
    and Chief Human Capital Officers, a strategic human capital plan 
    for the acquisition workforce of the Federal Government;
        (3) reviewing and providing input to individual agency 
    acquisition workforce succession plans;
        (4) recommending to the Administrator and other senior 
    government officials appropriate programs, policies, and practices 
    to increase the quantity and quality of the Federal acquisition 
    workforce; and
        (5) carrying out such other functions as the Administrator may 
    assign.
    (b) Acquisition and Contracting Training Programs Within Executive 
Agencies.--
        (1) Requirement.--The head of each executive agency, after 
    consultation with the Associate Administrator for Acquisition 
    Workforce Programs, shall establish and operate acquisition and 
    contracting training programs. Such programs shall--
            (A) have curricula covering a broad range of acquisition 
        and contracting disciplines corresponding to the specific 
        acquisition and contracting needs of the agency involved;
            (B) be developed and applied according to rigorous 
        standards; and
            (C) be designed to maximize efficiency, through the use of 
        self-paced courses, online courses, on-the-job training, and 
        the use of remote instructors, wherever such features can be 
        applied without reducing the effectiveness of the training or 
        negatively affecting academic standards.
        (2) Chief acquisition officer authorities and 
    responsibilities.--Subject to the authority, direction, and control 
    of the head of an executive agency, the Chief Acquisition Officer 
    for such agency shall carry out all powers, functions, and duties 
    of the head of the agency with respect to implementation of this 
    subsection. The Chief Acquisition Officer shall ensure that the 
    policies established by the head of the agency in accordance with 
    this subsection are implemented throughout the agency.
    (c) Government-Wide Policies and Evaluation.--The Administrator for 
Federal Procurement Policy shall issue policies to promote the 
development of performance standards for training and uniform 
implementation of this section by executive agencies, with due regard 
for differences in program requirements among agencies that may be 
appropriate and warranted in view of the agency mission. The 
Administrator shall evaluate the implementation of the provisions of 
subsection (b) by executive agencies.
    (d) Acquisition and Contracting Training Reporting.--The 
Administrator for Federal Procurement Policy shall ensure that the 
heads of executive agencies collect and maintain standardized 
information on the acquisition and contracting workforce related to the 
implementation of subsection (b).
    (e) Acquisition Workforce Human Capital Succession Plan.--
        (1) In general.--Not later than 1 year after the date of the 
    enactment of this Act, each Chief Acquisition Officer for an 
    executive agency shall develop, in consultation with the Chief 
    Human Capital Officer for the agency and the Associate 
    Administrator for Acquisition Workforce Programs, a succession plan 
    consistent with the agency's strategic human capital plan for the 
    recruitment, development, and retention of the agency's acquisition 
    workforce, with a particular focus on warranted contracting 
    officers and program managers of the agency.
        (2) Content of plan.--The acquisition workforce succession plan 
    shall address--
            (A) recruitment goals for personnel from procurement intern 
        programs;
            (B) the agency's acquisition workforce training needs;
            (C) actions to retain high performing acquisition 
        professionals who possess critical relevant skills;
            (D) recruitment goals for personnel from the Federal Career 
        Intern Program; and
            (E) recruitment goals for personnel from the Presidential 
        Management Fellows Program.
    (f) Training in the Acquisition of Architect and Engineering 
Services.--The Administrator for Federal Procurement Policy shall 
ensure that a sufficient number of Federal employees are trained in the 
acquisition of architect and engineering services.
    (g) Utilization of Recruitment and Retention Authorities.--The 
Administrator for Federal Procurement Policy, in coordination with the 
Director of the Office of Personnel Management, shall encourage 
executive agencies to utilize existing authorities, including direct 
hire authority and tuition assistance programs, to recruit and retain 
acquisition personnel and consider recruiting acquisition personnel who 
may be retiring from the private sector, consistent with existing laws 
and regulations.
    (h) Definitions.--In this section:
        (1) Executive agency.--The term ``executive agency'' has the 
    meaning provided in section 4(1) of the Office of Federal 
    Procurement Policy Act (41 U.S.C. 403(1)).
        (2) Chief acquisition officer.--The term ``Chief Acquisition 
    Officer'' means a Chief Acquisition Officer for an executive agency 
    appointed pursuant to section 16 of the Office of Federal 
    Procurement Policy Act (41 U.S.C. 414).

             Subtitle F--Contracts in Iraq and Afghanistan

SEC. 861. MEMORANDUM OF UNDERSTANDING ON MATTERS RELATING TO 
              CONTRACTING.

    (a) Memorandum of Understanding Required.--The Secretary of 
Defense, the Secretary of State, and the Administrator of the United 
States Agency for International Development shall, not later than July 
1, 2008, enter into a memorandum of understanding regarding matters 
relating to contracting for contracts in Iraq or Afghanistan.
    (b) Matters Covered.--The memorandum of understanding required by 
subsection (a) shall address, at a minimum, the following:
        (1) Identification of the major categories of contracts in Iraq 
    or Afghanistan being awarded by the Department of Defense, the 
    Department of State, or the United States Agency for International 
    Development.
        (2) Identification of the roles and responsibilities of each 
    department or agency for matters relating to contracting for 
    contracts in Iraq or Afghanistan.
        (3) Responsibility for establishing procedures for, and the 
    coordination of, movement of contractor personnel in Iraq or 
    Afghanistan.
        (4) Identification of common databases that will serve as 
    repositories of information on contracts in Iraq or Afghanistan and 
    contractor personnel in Iraq or Afghanistan, including agreement on 
    the elements to be included in the databases, including, at a 
    minimum--
            (A) with respect to each contract--
                (i) a brief description of the contract (to the extent 
            consistent with security considerations);
                (ii) the total value of the contract; and
                (iii) whether the contract was awarded competitively; 
            and
            (B) with respect to contractor personnel--
                (i) the total number of personnel employed on contracts 
            in Iraq or Afghanistan;
                (ii) the total number of personnel performing security 
            functions under contracts in Iraq or Afghanistan; and
                (iii) the total number of personnel working under 
            contracts in Iraq or Afghanistan who have been killed or 
            wounded.
        (5) Responsibility for maintaining and updating information in 
    the common databases identified under paragraph (4).
        (6) Responsibility for the collection and referral to the 
    appropriate Government agency of any information relating to 
    offenses under chapter 47 of title 10, United States Code (the 
    Uniform Code of Military Justice) or chapter 212 of title 18, 
    United States Code (commonly referred to as the Military 
    Extraterritorial Jurisdiction Act), including a clarification of 
    responsibilities under section 802(a)(10) of title 10, United 
    States Code (article 2(a) of the Uniform Code of Military Justice), 
    as amended by section 552 of the John Warner National Defense 
    Authorization Act for Fiscal Year 2007 (Public Law 109-364).
    (c) Implementation of Memorandum of Understanding.--Not later than 
120 days after the memorandum of understanding required by subsection 
(a) is signed, the Secretary of Defense, the Secretary of State, and 
the Administrator of the United States Agency for International 
Development shall issue such policies or guidance and prescribe such 
regulations as are necessary to implement the memorandum of 
understanding for the relevant matters pertaining to their respective 
agencies.
    (d) Copies Provided to Congress.--
        (1) Memorandum of understanding.--Copies of the memorandum of 
    understanding required by subsection (a) shall be provided to the 
    relevant committees of Congress within 30 days after the memorandum 
    is signed.
        (2) Report on implementation.--Not later than 180 days after 
    the memorandum of understanding required by subsection (a) is 
    signed, the Secretary of Defense, the Secretary of State, and the 
    Administrator of the United States Agency for International 
    Development shall each provide a report to the relevant committees 
    of Congress on the implementation of the memorandum of 
    understanding.
        (3) Databases.--The Secretary of Defense, the Secretary of 
    State, or the Administrator of the United States Agency for 
    International Development shall provide access to the common 
    databases identified under subsection (b)(4) to the relevant 
    committees of Congress.
        (4) Contracts.--Effective on the date of the enactment of this 
    Act, copies of any contracts in Iraq or Afghanistan awarded after 
    December 1, 2007, shall be provided to any of the relevant 
    committees of Congress within 15 days after the submission of a 
    request for such contract or contracts from such committee to the 
    department or agency managing the contract.

SEC. 862. CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS IN AREAS OF 
              COMBAT OPERATIONS.

    (a) Regulations on Contractors Performing Private Security 
Functions.--
        (1) In general.--Not later than 120 days after the date of the 
    enactment of this Act, the Secretary of Defense, in coordination 
    with the Secretary of State, shall prescribe regulations on the 
    selection, training, equipping, and conduct of personnel performing 
    private security functions under a covered contract in an area of 
    combat operations.
        (2) Elements.--The regulations prescribed under subsection (a) 
    shall, at a minimum, establish--
            (A) a process for registering, processing, accounting for, 
        and keeping appropriate records of personnel performing private 
        security functions in an area of combat operations;
            (B) a process for authorizing and accounting for weapons to 
        be carried by, or available to be used by, personnel performing 
        private security functions in an area of combat operations;
            (C) a process for the registration and identification of 
        armored vehicles, helicopters, and other military vehicles 
        operated by contractors performing private security functions 
        in an area of combat operations;
            (D) a process under which contractors are required to 
        report all incidents, and persons other than contractors are 
        permitted to report incidents, in which--
                (i) a weapon is discharged by personnel performing 
            private security functions in an area of combat operations;
                (ii) personnel performing private security functions in 
            an area of combat operations are killed or injured; or
                (iii) persons are killed or injured, or property is 
            destroyed, as a result of conduct by contractor personnel;
            (E) a process for the independent review and, if 
        practicable, investigation of--
                (i) incidents reported pursuant to subparagraph (D); 
            and
                (ii) incidents of alleged misconduct by personnel 
            performing private security functions in an area of combat 
            operations;
            (F) requirements for qualification, training, screening 
        (including, if practicable, through background checks), and 
        security for personnel performing private security functions in 
        an area of combat operations;
            (G) guidance to the commanders of the combatant commands on 
        the issuance of--
                (i) orders, directives, and instructions to contractors 
            performing private security functions relating to 
            equipment, force protection, security, health, safety, or 
            relations and interaction with locals;
                (ii) predeployment training requirements for personnel 
            performing private security functions in an area of combat 
            operations, addressing the requirements of this section, 
            resources and assistance available to contractor personnel, 
            country information and cultural training, and guidance on 
            working with host country nationals and military; and
                (iii) rules on the use of force for personnel 
            performing private security functions in an area of combat 
            operations;
            (H) a process by which a commander of a combatant command 
        may request an action described in subsection (b)(3); and
            (I) a process by which the training requirements referred 
        to in subparagraph (G)(ii) shall be implemented.
        (3) Availability of orders, directives, and instructions.--The 
    regulations prescribed under subsection (a) shall include 
    mechanisms to ensure the provision and availability of the orders, 
    directives, and instructions referred to in paragraph (2)(G)(i) to 
    contractors referred to in that paragraph, including through the 
    maintenance of a single location (including an Internet website, to 
    the extent consistent with security considerations) at or through 
    which such contractors may access such orders, directives, and 
    instructions.
    (b) Contract Clause on Contractors Performing Private Security 
Functions.--
        (1) Requirement under far.--Not later than 180 days after the 
    date of the enactment of this Act, the Federal Acquisition 
    Regulation issued in accordance with section 25 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 421) shall be revised to 
    require the insertion into each covered contract (or, in the case 
    of a task order, the contract under which the task order is issued) 
    of a contract clause addressing the selection, training, equipping, 
    and conduct of personnel performing private security functions 
    under such contract.
        (2) Clause requirement.--The contract clause required by 
    paragraph (1) shall require, at a minimum, that the contractor 
    concerned shall--
            (A) comply with regulations prescribed under subsection 
        (a), including any revisions or updates to such regulations, 
        and follow the procedures established in such regulations for--
                (i) registering, processing, accounting for, and 
            keeping appropriate records of personnel performing private 
            security functions in an area of combat operations;
                (ii) authorizing and accounting of weapons to be 
            carried by, or available to be used by, personnel 
            performing private security functions in an area of combat 
            operations;
                (iii) registration and identification of armored 
            vehicles, helicopters, and other military vehicles operated 
            by contractors and subcontractors performing private 
            security functions in an area of combat operations; and
                (iv) the reporting of incidents in which--

                    (I) a weapon is discharged by personnel performing 
                private security functions in an area of combat 
                operations;
                    (II) personnel performing private security 
                functions in an area of combat operations are killed or 
                injured; or
                    (III) persons are killed or injured, or property is 
                destroyed, as a result of conduct by contractor 
                personnel;

            (B) ensure that all personnel performing private security 
        functions under such contract are briefed on and understand 
        their obligation to comply with--
                (i) qualification, training, screening (including, if 
            practicable, through background checks), and security 
            requirements established by the Secretary of Defense for 
            personnel performing private security functions in an area 
            of combat operations;
                (ii) applicable laws and regulations of the United 
            States and the host country, and applicable treaties and 
            international agreements, regarding the performance of the 
            functions of the contractor;
                (iii) orders, directives, and instructions issued by 
            the applicable commander of a combatant command relating to 
            equipment, force protection, security, health, safety, or 
            relations and interaction with locals; and
                (iv) rules on the use of force issued by the applicable 
            commander of a combatant command for personnel performing 
            private security functions in an area of combat operations; 
            and
            (C) cooperate with any investigation conducted by the 
        Department of Defense pursuant to subsection (a)(2)(E) by 
        providing access to employees of the contractor and relevant 
        information in the possession of the contractor regarding the 
        incident concerned.
        (3) Noncompliance of personnel with clause.--The contracting 
    officer for a covered contract may direct the contractor, at its 
    own expense, to remove or replace any personnel performing private 
    security functions in an area of combat operations who violate or 
    fail to comply with applicable requirements of the clause required 
    by this subsection. If the violation or failure to comply is a 
    gross violation or failure or is repeated, the contract may be 
    terminated for default.
        (4) Applicability.--The contract clause required by this 
    subsection shall be included in all covered contracts awarded on or 
    after the date that is 180 days after the date of the enactment of 
    this Act. Federal agencies shall make best efforts to provide for 
    the inclusion of the contract clause required by this subsection in 
    covered contracts awarded before such date.
        (5) Inspector general report on pilot program on imposition of 
    fines for noncompliance of personnel with clause.--Not later than 
    March 30, 2008, the Inspector General of the Department of Defense 
    shall submit to Congress a report assessing the feasibility and 
    advisability of carrying out a pilot program for the imposition of 
    fines on contractors for personnel who violate or fail to comply 
    with applicable requirements of the clause required by this section 
    as a mechanism for enhancing the compliance of such personnel with 
    the clause. The report shall include--
            (A) an assessment of the feasibility and advisability of 
        carrying out the pilot program; and
            (B) if the Inspector General determines that carrying out 
        the pilot program is feasible and advisable--
                (i) recommendations on the range of contracts and 
            subcontracts to which the pilot program should apply; and
                (ii) a schedule of fines to be imposed under the pilot 
            program for various types of personnel actions or failures.
    (c) Areas of Combat Operations.--
        (1) Designation.--The Secretary of Defense shall designate the 
    areas constituting an area of combat operations for purposes of 
    this section by not later than 120 days after the date of the 
    enactment of this Act.
        (2) Particular areas.--Iraq and Afghanistan shall be included 
    in the areas designated as an area of combat operations under 
    paragraph (1).
        (3) Additional areas.--The Secretary may designate any 
    additional area as an area constituting an area of combat 
    operations for purposes of this section if the Secretary determines 
    that the presence or potential of combat operations in such area 
    warrants designation of such area as an area of combat operations 
    for purposes of this section.
        (4) Modification or elimination of designation.--The Secretary 
    may modify or cease the designation of an area under this 
    subsection as an area of combat operations if the Secretary 
    determines that combat operations are no longer ongoing in such 
    area.
    (d) Exception.--The requirements of this section shall not apply to 
contracts entered into by elements of the intelligence community in 
support of intelligence activities.

SEC. 863. COMPTROLLER GENERAL REVIEWS AND REPORTS ON CONTRACTING IN 
              IRAQ AND AFGHANISTAN.

    (a) Reviews and Reports Required.--
        (1) In general.--Every 12 months, the Comptroller General shall 
    review contracts in Iraq or Afghanistan and submit to the relevant 
    committees of Congress a report on such review.
        (2) Matters covered.--A report under this subsection shall 
    cover the following with respect to the contracts in Iraq or 
    Afghanistan reviewed for the report:
            (A) Total number of contracts and task orders awarded 
        during the period covered by the report.
            (B) Total number of active contracts and task orders.
            (C) Total value of all contracts and task orders awarded 
        during the reporting period.
            (D) Total value of active contracts and task orders.
            (E) The extent to which such contracts have used 
        competitive procedures.
            (F) Total number of contractor personnel working on 
        contracts during the reporting period.
            (G) Total number of contractor personnel, on average, who 
        are performing security functions during the reporting period.
            (H) The number of contractor personnel killed or wounded 
        during the reporting period.
            (I) Information on any specific contract or class of 
        contracts that the Comptroller General determines raises issues 
        of significant concern.
        (3) Submission of reports.--The Comptroller General shall 
    submit an initial report under this subsection not later than 
    October 1, 2008, and shall submit an updated report every year 
    thereafter until October 1, 2010.
    (b) Access to Databases on Contracts.--The Secretary of Defense and 
the Secretary of State shall provide full access to the databases 
described in section 861(b)(4) to the Comptroller General for purposes 
of the reviews carried out under this section.

SEC. 864. DEFINITIONS AND OTHER GENERAL PROVISIONS.

    (a) Definitions.--In this subtitle:
        (1) Matters relating to contracting.--The term ``matters 
    relating to contracting'', with respect to contracts in Iraq and 
    Afghanistan, means all matters relating to awarding, funding, 
    managing, tracking, monitoring, and providing oversight to 
    contracts and contractor personnel.
        (2) Contract in iraq or afghanistan.--The term ``contract in 
    Iraq or Afghanistan'' means a contract with the Department of 
    Defense, the Department of State, or the United States Agency for 
    International Development, a subcontract at any tier issued under 
    such a contract, or a task order or delivery order at any tier 
    issued under such a contract (including a contract, subcontract, or 
    task order or delivery order issued by another Government agency 
    for the Department of Defense, the Department of State, or the 
    United States Agency for International Development), if the 
    contract, subcontract, or task order or delivery order involves 
    worked performed in Iraq or Afghanistan for a period longer than 14 
    days.
        (3) Covered contract.--The term ``covered contract'' means--
            (A) a contract of a Federal agency for the performance of 
        services in an area of combat operations, as designated by the 
        Secretary of Defense under subsection (c) of section 862;
            (B) a subcontract at any tier under such a contract; or
            (C) a task order or delivery order issued under such a 
        contract or subcontract.
        (4) Contractor.--The term ``contractor'', with respect to a 
    covered contract, means the contractor or subcontractor carrying 
    out the covered contract.
        (5) Private security functions.--The term ``private security 
    functions'' means activities engaged in by a contractor under a 
    covered contract as follows:
            (A) Guarding of personnel, facilities, or property of a 
        Federal agency, the contractor or subcontractor, or a third 
        party.
            (B) Any other activity for which personnel are required to 
        carry weapons in the performance of their duties.
        (6) Relevant committees of congress.--The term ``relevant 
    committees of Congress'' means each of the following committees:
            (A) The Committees on Armed Services of the Senate and the 
        House of Representatives.
            (B) The Committee on Homeland Security and Governmental 
        Affairs of the Senate and the Committee on Oversight and 
        Government Reform of the House of Representatives.
            (C) The Committee on Foreign Relations of the Senate and 
        the Committee on Foreign Affairs of the House of 
        Representatives.
            (D) For purposes of contracts relating to the National 
        Foreign Intelligence Program, the Select Committee on 
        Intelligence of the Senate and the Permanent Select Committee 
        on Intelligence of the House of Representatives.
    (b) Classified Information.--Nothing in this subtitle shall be 
interpreted to require the handling of classified information or 
information relating to intelligence sources and methods in a manner 
inconsistent with any law, regulation, executive order, or rule of the 
House of Representatives or of the Senate relating to the handling or 
protection of such information.

              Subtitle G--Defense Materiel Readiness Board

SEC. 871. ESTABLISHMENT OF DEFENSE MATERIEL READINESS BOARD.

    (a) Establishment.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Defense shall establish a 
Defense Materiel Readiness Board (in this subtitle referred to as the 
``Board'') within the Office of the Secretary of Defense.
    (b) Membership.--The Secretary shall appoint the chairman and the 
members of the Board from among officers of the Armed Forces with 
expertise in matters relevant to the function of the Board to assess 
materiel readiness and evaluate plans and policies relating to materiel 
readiness. At a minimum, the Board shall include representatives of the 
Joint Chiefs of Staff, each of the Armed Forces, and each of the 
reserve components of the Armed Forces.
    (c) Staff.--The Secretary of Defense shall assign staff, and 
request the Secretaries of the military departments to assign staff, as 
necessary to assist the Board in carrying out its duties.
    (d) Functions.--The Board shall provide independent assessments of 
materiel readiness, materiel readiness shortfalls, and materiel 
readiness plans to the Secretary of Defense and the Congress. To carry 
out such functions, the Board shall--
        (1) monitor and assess the materiel readiness of the Armed 
    Forces;
        (2) assist the Secretary of Defense in the identification of 
    deficiencies in the materiel readiness of the Armed Forces caused 
    by shortfalls in weapons systems, equipment, and supplies;
        (3) identify shortfalls in materiel readiness, including 
    critical materiel readiness shortfalls, for purposes of the 
    Secretary's designations under section 872 and the funding needed 
    to address such shortfalls;
        (4) assess the adequacy of current Department of Defense plans, 
    policies, and programs to address shortfalls in materiel readiness, 
    including critical materiel readiness shortfalls (as designated by 
    the Secretary under section 872), and to sustain and improve 
    materiel readiness;
        (5) assist the Secretary of Defense in determining whether the 
    industrial capacity of the Department of Defense and of the defense 
    industrial base is being best utilized to support the materiel 
    readiness needs of the Armed Forces;
        (6) review and assess Department of Defense systems for 
    measuring the status of current materiel readiness of the Armed 
    Forces; and
        (7) make recommendations with respect to materiel readiness 
    funding, measurement techniques, plans, policies, and programs.
    (e) Reports.--The Board shall submit to the Secretary of Defense a 
report summarizing its findings and recommendations not less than once 
every six months. Within 30 days after receiving a report from the 
Board, the Secretary shall forward the report in its entirety, together 
with his comments, to the congressional defense committees. The report 
shall be submitted in unclassified form. To the extent necessary, the 
report may be accompanied by a classified annex.

SEC. 872. CRITICAL MATERIEL READINESS SHORTFALLS.

     (a) Designation of Critical Materiel Readiness Shortfalls.--
        (1) Designation.--The Secretary of Defense may designate any 
    requirement of the Armed Forces for equipment or supplies as a 
    critical materiel readiness shortfall if there is a shortfall in 
    the required equipment or supplies that materially reduces 
    readiness of the Armed Forces and that--
            (A) cannot be adequately addressed by identifying 
        acceptable substitute capabilities or cross leveling of 
        equipment that does not unacceptably reduce the readiness of 
        other Armed Forces; and
            (B) that is likely to persist for more than two years based 
        on currently projected budgets and schedules for deliveries of 
        equipment and supplies.
        (2) Consideration of board findings and recommendations.--In 
    making any such designation, the Secretary shall take into 
    consideration the findings and recommendations of the Defense 
    Materiel Readiness Board.
    (b) Measures to Address Critical Materiel Readiness Shortfalls.--
The Secretary of Defense shall ensure that critical materiel readiness 
shortfalls designated pursuant to subsection (a)(1) are transmitted to 
the relevant officials of the Department of Defense responsible for 
requirements, budgets, and acquisition, and that such officials 
prioritize and address such shortfalls in the shortest time frame 
practicable.
    (c) Transfer Authority.--
        (1) In general.--The amounts of authorizations that the 
    Secretary may transfer under the authority of section 1001 of this 
    Act is hereby increased by $2,000,000,000.
        (2) Limitations.--The additional transfer authority provided by 
    this section--
            (A) may be made only from authorizations to the Department 
        of Defense for fiscal year 2008;
            (B) may be exercised solely for the purpose of addressing 
        critical materiel readiness shortfalls as designated by the 
        Secretary of Defense under subsection (a); and
            (C) is subject to the same terms, conditions, and 
        procedures as other transfer authority under section 1001 of 
        this Act.
    (d) Strategic Readiness Fund.--
        (1) Establishment.--There is established on the books of the 
    Treasury a fund to be known as the Department of Defense Strategic 
    Readiness Fund (in this subsection referred to as the ``Fund''), 
    which shall be administered by the Secretary of the Treasury.
        (2) Purposes.--The Fund shall be used to address critical 
    materiel readiness shortfalls as designated by the Secretary of 
    Defense under subsection (a).
        (3) Assets of fund.--There shall be deposited into the Fund any 
    amount appropriated to the Fund, which shall constitute the assets 
    of the Fund.
        (4) Limitation.--The procurement unit cost (as defined in 
    section 2432(a) of title 10, United States Code) of any item 
    purchased using assets of the Fund, whether such assets are in the 
    Fund or after such assets have been transferred from the Fund using 
    the authority provided in subsection (c), shall not exceed 
    $30,000,000.
    (e) Multiyear Contract Notification.--
        (1) Notification.--If the Secretary of a military department 
    makes the determination described in paragraph (2) with respect to 
    the use of a multiyear contract, the Secretary shall notify the 
    congressional defense committees within 30 days of the 
    determination and provide a detailed description of the proposed 
    multiyear contract.
        (2) Determination.--The determination referred to in paragraph 
    (1) is a determination by the Secretary of a military department 
    that the use of a multiyear contract to procure an item to address 
    a critical materiel readiness shortfall--
            (A) will significantly accelerate efforts to address a 
        critical materiel readiness shortfall;
            (B) will provide savings compared to the total anticipated 
        costs of carrying out the contract through annual contracts; 
        and
            (C) will serve the interest of national security.
    (f) Definition.--In this section, the term ``critical materiel 
readiness shortfall'' means a critical materiel readiness shortfall 
designated by the Secretary of Defense under this section.

                       Subtitle H--Other Matters

SEC. 881. CLEARINGHOUSE FOR RAPID IDENTIFICATION AND DISSEMINATION OF 
              COMMERCIAL INFORMATION TECHNOLOGIES.

    (a) Requirement to Establish Clearinghouse.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense, acting through the Assistant Secretary of Defense for Networks 
and Information Integration, shall establish a clearinghouse for 
identifying, assessing, and disseminating knowledge about readily 
available information technologies (with an emphasis on commercial off-
the-shelf information technologies) that could support the warfighting 
mission of the Department of Defense.
    (b) Responsibilities.--The clearinghouse established pursuant to 
subsection (a) shall be responsible for the following:
        (1) Developing a process to rapidly assess and set priorities 
    and needs for significant information technology needs of the 
    Department of Defense that could be met by commercial technologies, 
    including a process for--
            (A) aligning priorities and needs with the requirements of 
        the commanders of the combatant command; and
            (B) proposing recommendations to the commanders of the 
        combatant command of feasible technical solutions for further 
        evaluation.
        (2) Identifying and assessing emerging commercial technologies 
    (including commercial off-the-shelf technologies) that could 
    support the warfighting mission of the Department of Defense, 
    including the priorities and needs identified pursuant to paragraph 
    (1).
        (3) Disseminating information about commercial technologies 
    identified pursuant to paragraph (2) to commanders of combatant 
    commands and other potential users of such technologies.
        (4) Identifying gaps in commercial technologies and working to 
    stimulate investment in research and development in the public and 
    private sectors to address those gaps.
        (5) Enhancing internal data and communications systems of the 
    Department of Defense for sharing and retaining information 
    regarding commercial technology priorities and needs, technologies 
    available to meet such priorities and needs, and ongoing research 
    and development directed toward gaps in such technologies.
        (6) Developing mechanisms, including web-based mechanisms, to 
    facilitate communications with industry regarding the priorities 
    and needs of the Department of Defense identified pursuant to 
    paragraph (1) and commercial technologies available to address such 
    priorities and needs.
        (7) Assisting in the development of guides to help small 
    information technology companies with promising technologies to 
    understand and navigate the funding and acquisition processes of 
    the Department of Defense.
        (8) Developing methods to measure how well processes developed 
    by the clearinghouse are being utilized and to collect data on an 
    ongoing basis to assess the benefits of commercial technologies 
    that are procured on the recommendation of the clearinghouse.
    (c) Personnel.--The Secretary of Defense, acting through the 
Assistant Secretary of Defense for Networks and Information 
Integration, shall provide for the hiring and support of employees 
(including detailees from other components of the Department of Defense 
and from other Federal departments or agencies) to assist in 
identifying, assessing, and disseminating information regarding 
commercial technologies under this section.
    (d) Report to Congress.--Not later than one year after the date of 
the enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the implementation of this 
section.

SEC. 882. AUTHORITY TO LICENSE CERTAIN MILITARY DESIGNATIONS AND 
              LIKENESSES OF WEAPONS SYSTEMS TO TOY AND HOBBY 
              MANUFACTURERS.

    (a) Authority to License Certain Items.--Section 2260 of title 10, 
United States Code, is amended--
        (1) by redesignating subsections (c), (d), and (e) as 
    subsections (d), (e), and (f), respectively; and
        (2) by inserting after subsection (b) the following new 
    subsection:
    ``(c) Licenses for Qualifying Companies.--(1) The Secretary 
concerned may license trademarks, service marks, certification marks, 
and collective marks owned or controlled by the Secretary relating to 
military designations and likenesses of military weapons systems to any 
qualifying company upon receipt of a request from the company.
    ``(2) For purposes of paragraph (1), a qualifying company is any 
United States company that--
        ``(A) is a toy or hobby manufacturer; and
        ``(B) is determined by the Secretary concerned to be qualified 
    in accordance with such criteria as determined appropriate by the 
    Secretary of Defense.
    ``(3) The fee for a license under this subsection shall not exceed 
by more than a nominal amount the amount needed to recover all costs of 
the Department of Defense in processing the request for the license and 
supplying the license.
    ``(4) A license to a qualifying company under this subsection shall 
provide that the license may not be transferred, sold, or relicensed by 
the qualifying company.
    ``(5) A license under this subsection shall not be an exclusive 
license.''.
    (b) Effective Date.--The Secretary of Defense shall prescribe 
regulations to implement the amendment made by this section not later 
than 180 days after the date of the enactment of this Act.

SEC. 883. MODIFICATIONS TO LIMITATION ON CONTRACTS TO ACQUIRE MILITARY 
              FLIGHT SIMULATOR.

    (a) Effect on Existing Contracts.--Section 832 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364; 120 Stat. 2331) is amended by adding at the end the following 
new subsection:
    ``(e) Effect on Existing Contracts.--The limitation in subsection 
(a) does not apply to any service contract of a military department to 
acquire a military flight simulator, or to any renewal or extension of, 
or follow-on contract to, such a contract, if--
        ``(1) the contract was in effect as of October 17, 2006;
        ``(2) the number of flight simulators to be acquired under the 
    contract (or renewal, extension, or follow-on) will not result in 
    the total number of flight simulators acquired by the military 
    department concerned through service contracts to exceed the total 
    number of flight simulators to be acquired under all service 
    contracts of such department for such simulators in effect as of 
    October 17, 2006; and
        ``(3) in the case of a renewal or extension of, or follow-on 
    contract to, the contract, the Secretary of the military department 
    concerned provides to the congressional defense committees a 
    written notice of the decision to exercise an option to renew or 
    extend the contract, or to issue a solicitation for bids or 
    proposals using competitive procedures for a follow-on contract, 
    and an economic analysis as described in subsection (c) supporting 
    the decision, at least 30 days before carrying out such 
    decision.''.
    (b) Change in Grounds for Waiver.--Section 832(c)(1) of such Act, 
as redesignated by subsection (a), is amend by striking ``necessary for 
national security purposes'' and inserting ``in the national 
interest''.

SEC. 884. REQUIREMENTS RELATING TO WAIVERS OF CERTAIN DOMESTIC SOURCE 
              LIMITATIONS RELATING TO SPECIALTY METALS.

    (a) Notice Requirement.--At least 30 days prior to making a 
domestic nonavailability determination pursuant to section 2533b(b) of 
title 10, United States Code, that would apply to more than one 
contract of the Department of Defense, the Secretary of Defense shall, 
to the maximum extent practicable and in a manner consistent with the 
protection of national security information and confidential business 
information--
        (1) publish a notice on the website maintained by the General 
    Services Administration known as FedBizOpps.gov (or any successor 
    site) of the Secretary's intent to make the domestic 
    nonavailability determination; and
        (2) solicit information relevant to such notice from interested 
    parties, including producers of specialty metal mill products.
    (b) Determination.--(1) The Secretary shall take into consideration 
all information submitted pursuant to subsection (a) in making a 
domestic nonavailability determination pursuant to section 2533b(b) of 
title 10, United States Code, that would apply to more than one 
contract of the Department of Defense, and may also consider other 
relevant information that cannot be made part of the public record 
consistent with the protection of national security information and 
confidential business information.
    (2) The Secretary shall ensure that any such determination and the 
rationale for such determination is made publicly available to the 
maximum extent consistent with the protection of national security 
information and confidential business information.

SEC. 885. TELEPHONE SERVICES FOR MILITARY PERSONNEL SERVING IN COMBAT 
              ZONES.

    (a) Competitive Procedures Required.--
        (1) Requirement.--When the Secretary of Defense considers it 
    necessary to provide morale, welfare, and recreation telephone 
    services for military personnel serving in combat zones, the 
    Secretary shall use competitive procedures when entering into a 
    contract to provide those services.
        (2) Review and determination.--Before soliciting bids or 
    proposals for new contracts, or considering extensions to existing 
    contracts, to provide morale, welfare, and recreation telephone 
    services for military personnel serving in combat zones, the 
    Secretary shall review and determine whether it is in the best 
    interest of the Department to require bids or proposals, or 
    adjustments for the purpose of extending a contract, to include 
    options that minimize the cost of the telephone services to 
    individual users while providing individual users the flexibility 
    of using phone cards from other than the prospective contractor. 
    The Secretary shall submit the results of this review and 
    determination to the Committees on Armed Services of the Senate and 
    the House of Representatives.
    (b) Effective Date.--
        (1) Requirement.--Subsection (a)(1) shall apply to any new 
    contract to provide morale, welfare, and recreation telephone 
    services for military personnel serving in combat zones that is 
    entered into after the date of the enactment of this Act.
        (2) Review and determination.--Subsection (a)(2) shall apply to 
    any new contract or extension to an existing contract to provide 
    morale, welfare, and recreation telephone services for military 
    personnel serving in combat zones that is entered into or agreed 
    upon after the date of the enactment of this Act.

SEC. 886. ENHANCED AUTHORITY TO ACQUIRE PRODUCTS AND SERVICES PRODUCED 
              IN IRAQ AND AFGHANISTAN.

    (a) In General.--In the case of a product or service to be acquired 
in support of military operations or stability operations in Iraq or 
Afghanistan (including security, transition, reconstruction, and 
humanitarian relief activities) for which the Secretary of Defense 
makes a determination described in subsection (b), the Secretary may 
conduct a procurement in which--
        (1) competition is limited to products or services that are 
    from Iraq or Afghanistan;
        (2) procedures other than competitive procedures are used to 
    award a contract to a particular source or sources from Iraq or 
    Afghanistan; or
        (3) a preference is provided for products or services that are 
    from Iraq or Afghanistan.
    (b) Determination.--A determination described in this subsection is 
a determination by the Secretary that--
        (1) the product or service concerned is to be used only by the 
    military forces, police, or other security personnel of Iraq or 
    Afghanistan; or
        (2) it is in the national security interest of the United 
    States to limit competition, use procedures other than competitive 
    procedures, or provide a preference as described in subsection (a) 
    because--
            (A) such limitation, procedure, or preference is necessary 
        to provide a stable source of jobs in Iraq or Afghanistan; and
            (B) such limitation, procedure, or preference will not 
        adversely affect--
                (i) military operations or stability operations in Iraq 
            or Afghanistan; or
                (ii) the United States industrial base.
    (c) Products, Services, and Sources From Iraq or Afghanistan.--For 
the purposes of this section:
        (1) A product is from Iraq or Afghanistan if it is mined, 
    produced, or manufactured in Iraq or Afghanistan.
        (2) A service is from Iraq or Afghanistan if it is performed in 
    Iraq or Afghanistan by citizens or permanent resident aliens of 
    Iraq or Afghanistan.
        (3) A source is from Iraq or Afghanistan if it--
            (A) is located in Iraq or Afghanistan; and
            (B) offers products or services that are from Iraq or 
        Afghanistan.

SEC. 887. DEFENSE SCIENCE BOARD REVIEW OF DEPARTMENT OF DEFENSE 
              POLICIES AND PROCEDURES FOR THE ACQUISITION OF 
              INFORMATION TECHNOLOGY.

    (a) Review Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall direct the 
Defense Science Board to carry out a review of Department of Defense 
policies and procedures for the acquisition of information technology.
    (b) Matters To Be Addressed.--The matters addressed by the review 
required by subsection (a) shall include the following:
        (1) Department of Defense policies and procedures for acquiring 
    national security systems, business information systems, and other 
    information technology.
        (2) The roles and responsibilities in implementing such 
    policies and procedures of--
            (A) the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics;
            (B) the Chief Information Officer of the Department of 
        Defense;
            (C) the Director of the Business Transformation Agency;
            (D) the service acquisition executives;
            (E) the chief information officers of the military 
        departments;
            (F) Defense Agency acquisition officials;
            (G) the information officers of the Defense Agencies; and
            (H) the Director of Operational Test and Evaluation and the 
        heads of the operational test organizations of the military 
        departments and the Defense Agencies.
        (3) The application of such policies and procedures to 
    information technologies that are an integral part of weapons or 
    weapon systems.
        (4) The requirements of subtitle III of title 40, United States 
    Code, and chapter 35 of title 44, United States Code, regarding 
    performance-based and results-based management, capital planning, 
    and investment control in the acquisition of information 
    technology.
        (5) Department of Defense policies and procedures for 
    maximizing the usage of commercial information technology while 
    ensuring the security of the microelectronics, software, and 
    networks of the Department.
        (6) The suitability of Department of Defense acquisition 
    regulations, including Department of Defense Directive 5000.1 and 
    the accompanying milestones, to the acquisition of information 
    technology systems.
        (7) The adequacy and transparency of metrics used by the 
    Department of Defense for the acquisition of information technology 
    systems.
        (8) The effectiveness of existing statutory and regulatory 
    reporting requirements for the acquisition of information 
    technology systems.
        (9) The adequacy of operational and development test resources 
    (including infrastructure and personnel), policies, and procedures 
    to ensure appropriate testing of information technology systems 
    both during development and before operational use.
        (10) The appropriate policies and procedures for technology 
    assessment, development, and operational testing for purposes of 
    the adoption of commercial technologies into information technology 
    systems.
    (c) Report Required.--Not later than one year after the date of 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report on the results of the review required by 
subsection (a). The report shall include the findings and 
recommendations of the Defense Science Board pursuant to the review, 
including such recommendations for legislative or administrative action 
as the Board considers appropriate, together with any comments the 
Secretary considers appropriate.

SEC. 888. GREEN PROCUREMENT POLICY.

    (a) Sense of Congress.--It is the sense of Congress that the 
Department of Defense should establish a system to document and track 
the use of environmentally preferable products and services.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on a plan to increase the usage of environmentally friendly products 
that minimize potential impacts to human health and the environment at 
all Department of Defense facilities inside and outside the United 
States, including through the direct purchase of products and the 
purchase of products by facility maintenance contractors. The report 
shall also cover consideration of the budgetary impact of 
implementation of the plan.

SEC. 889. COMPTROLLER GENERAL REVIEW OF USE OF AUTHORITY UNDER THE 
              DEFENSE PRODUCTION ACT OF 1950.

    (a) Thorough Review Required.--The Comptroller General of the 
United States (in this section referred to as the ``Comptroller'') 
shall conduct a thorough review of the application of the Defense 
Production Act of 1950, covering the period beginning on the date of 
the enactment of the Defense Production Act Reauthorization of 2003 
(Public Law 108-195) and ending on the date of the enactment of this 
Act.
    (b) Considerations.--In conducting the review required by this 
section, the Comptroller shall examine--
        (1) the relevance and utility of the authorities provided under 
    the Defense Production Act of 1950 to meet the security challenges 
    of the 21st Century;
        (2) the manner in which the authorities provided under such Act 
    have been used by the Federal Government--
            (A) to meet security challenges;
            (B) to meet current and future defense requirements;
            (C) to meet current and future energy requirements;
            (D) to meet current and future domestic emergency and 
        disaster response and recovery requirements;
            (E) to reduce the interruption of critical infrastructure 
        operations during a terrorist attack, natural catastrophe, or 
        other similar national emergency; and
            (F) to safeguard critical components of the United States 
        industrial base, including American aerospace and shipbuilding 
        industries;
        (3) the economic impact of foreign offset contracts;
        (4) the relative merit of developing rapid and standardized 
    systems for use of the authorities provided under the Defense 
    Production Act of 1950, by any Federal agency; and
        (5) such other issues as the Comptroller determines relevant.
    (c) Report to Congress.--Not later than 150 days after the date of 
the enactment of this Act, the Comptroller shall submit to the 
Committees on Armed Services and on Banking, Housing, and Urban Affairs 
of the Senate and the Committees on Armed Services and on Financial 
Services of the House of Representatives a report on the review 
conducted under this section.
    (d) Rules of Construction on Protection of Information.--
Notwithstanding any other provision of law--
        (1) the provisions of section 705(d) of the Defense Production 
    Act of 1950 (50 U.S.C. App. 2155(d)) shall not apply to information 
    sought or obtained by the Comptroller for purposes of the review 
    required by this section; and
        (2) provisions of law pertaining to the protection of 
    classified information or proprietary information otherwise 
    applicable to information sought or obtained by the Comptroller in 
    carrying out this section shall not be affected by any provision of 
    this section.

SEC. 890. PREVENTION OF EXPORT CONTROL VIOLATIONS.

    (a) Prevention of Export Control Violations.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall prescribe regulations requiring any contractor under a 
contract with the Department of Defense to provide goods or technology 
that is subject to export controls under the Arms Export Control Act or 
the Export Administration of 1979 (as continued in effect under the 
International Emergency Economic Powers Act) to comply with those Acts 
and applicable regulations with respect to such goods and technology, 
including the International Traffic in Arms Regulations and the Export 
Administration Regulations. Regulations prescribed under this 
subsection shall include a contract clause enforcing such requirement.
    (b) Training on Export Controls.--The Secretary of Defense shall 
ensure that any contractor under a contract with the Department of 
Defense to provide goods or technology that is subject to export 
controls under the Arms Export Control Act or the Export Administration 
of 1979 (as continued in effect under the International Emergency 
Economic Powers Act) is made aware of any relevant resources made 
available by the Department of State and the Department of Commerce to 
assist in compliance with the requirement established by subsection (a) 
and the need for a corporate compliance plan and periodic internal 
audits of corporate performance under such plan.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report assessing the utility 
of--
        (1) requiring defense contractors (or subcontractors at any 
    tier) to periodically report on measures taken to ensure compliance 
    with the International Traffic in Arms Regulations and the Export 
    Administration Regulations;
        (2) requiring periodic audits of defense contractors (or 
    subcontractors at any tier) to ensure compliance with all 
    provisions of the International Traffic in Arms Regulations and the 
    Export Administration Regulations;
        (3) requiring defense contractors to maintain a corporate 
    training plan to disseminate information to appropriate contractor 
    personnel regarding the applicability of the Arms Export Control 
    Act and the Export Administration Act of 1979; and
        (4) requiring a designated corporate liaison, available for 
    training provided by the United States Government, whose primary 
    responsibility would be contractor compliance with the Arms Export 
    Control Act and the Export Administration Act of 1979.
    (d) Definitions.--In this section:
        (1) Export administration regulations.--The term ``Export 
    Administration Regulations'' means those regulations contained in 
    sections 730 through 774 of title 15, Code of Federal Regulations 
    (or successor regulations).
        (2) International traffic in arms regulations.--The term 
    ``International Traffic in Arms Regulations'' means those 
    regulations contained in sections 120 through 130 of title 22, Code 
    of Federal Regulations (or successor regulations).

SEC. 891. PROCUREMENT GOAL FOR NATIVE HAWAIIAN-SERVING INSTITUTIONS AND 
              ALASKA NATIVE-SERVING INSTITUTIONS.

    Section 2323 of title 10, United States Code, is amended--
        (1) in subsection (a)(1)--
            (A) by striking ``and'' at the end of subparagraph (C);
            (B) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(E) Native Hawaiian-serving institutions and Alaska 
        Native-serving institutions (as defined in section 317 of the 
        Higher Education Act of 1965).'';
        (2) in subsection (a)(2), by inserting after ``Hispanic-serving 
    institutions,'' the following: ``Native Hawaiian-serving 
    institutions and Alaska Native-serving institutions,'';
        (3) in subsection (c)(1), by inserting after ``Hispanic-serving 
    institutions,'' the following: ``Native Hawaiian-serving 
    institutions and Alaska Native-serving institutions,''; and
        (4) in subsection (c)(3), by inserting after ``Hispanic-serving 
    institutions,'' the following: ``to Native Hawaiian-serving 
    institutions and Alaska Native-serving institutions,''.

SEC. 892. COMPETITION FOR PROCUREMENT OF SMALL ARMS SUPPLIED TO IRAQ 
              AND AFGHANISTAN.

    (a) Competition Requirement.--For the procurement of pistols and 
other weapons described in subsection (b), the Secretary of Defense 
shall ensure, consistent with the provisions of section 2304 of title 
10, United States Code, that--
        (1) full and open competition is obtained to the maximum extent 
    practicable;
        (2) no responsible United States manufacturer is excluded from 
    competing for such procurements; and
        (3) products manufactured in the United States are not excluded 
    from the competition.
    (b) Procurements Covered.--This section applies to the procurement 
of the following:
        (1) Pistols and other weapons less than 0.50 caliber for 
    assistance to the Army of Iraq, the Iraqi Police Forces, and other 
    Iraqi security organizations.
        (2) Pistols and other weapons less than 0.50 caliber for 
    assistance to the Army of Afghanistan, the Afghani Police Forces, 
    and other Afghani security organizations.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Repeal of limitation on major Department of Defense 
          headquarters activities personnel and related report.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
          assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
          Department of Defense leadership positions.
Sec. 904. Management of the Department of Defense.
Sec. 905. Revision in guidance relating to combatant command acquisition 
          authority.
Sec. 906. Department of Defense Board of Actuaries.
Sec. 907. Modification of background requirement of individuals 
          appointed as Under Secretary of Defense for Acquisition, 
          Technology, and Logistics.
Sec. 908. Assistant Secretaries of the military departments for 
          acquisition matters; principal military deputies.
Sec. 909. Sense of Congress on term of Office of the Director of 
          Operational Test and Evaluation.

                      Subtitle B--Space Activities

Sec. 911. Space protection strategy.
Sec. 912. Biennial report on management of space cadre within the 
          Department of Defense.
Sec. 913. Additional report on oversight of acquisition for defense 
          space programs.

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 923. Repeal of certain qualifications requirement for director of 
          chemical demilitarization management organization.
Sec. 924. Modification of termination of assistance to State and local 
          governments after completion of the destruction of the United 
          States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Technical amendments to title 10, United States Code, arising 
          from enactment of the Intelligence Reform and Terrorism 
          Prevention Act of 2004.

                 Subtitle E--Roles and Missions Analysis

Sec. 941. Requirement for quadrennial roles and missions review.
Sec. 942. Joint Requirements Oversight Council additional duties 
          relating to core mission areas.
Sec. 943. Requirement for certification of major systems prior to 
          technology development.
Sec. 944. Presentation of future-years mission budget by core mission 
          area.

                        Subtitle F--Other Matters

Sec. 951. Department of Defense consideration of effect of climate 
          change on Department facilities, capabilities, and missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
          under National Security Education Program.
Sec. 954. Board of Regents for the Uniformed Services University of the 
          Health Sciences.
Sec. 955. Establishment of Department of Defense School of Nursing.
Sec. 956. Inclusion of commanders of Western Hemisphere combatant 
          commands in Board of Visitors of Western Hemisphere Institute 
          for Security Cooperation.
Sec. 957. Comptroller General assessment of reorganization of the Office 
          of the Under Secretary of Defense for Policy.
Sec. 958. Report on foreign language proficiency.

              Subtitle A--Department of Defense Management

SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT OF DEFENSE 
              HEADQUARTERS ACTIVITIES PERSONNEL AND RELATED REPORT.

    (a) Repeal of Limitation.--
        (1) Repeal.--Section 130a of title 10, United States Code, is 
    repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 3 of such title is amended by striking the item relating 
    to section 130a.
    (b) Report Required.--The Secretary of Defense shall include a 
report with the defense budget materials for each fiscal year that 
includes the following information:
        (1) The average number of military personnel and civilian 
    employees of the Department of Defense assigned to major Department 
    of Defense headquarters activities for each component of the 
    Department of Defense during the preceding fiscal year.
        (2) The total increase in personnel assigned to major 
    headquarters activities, if any, during the preceding fiscal year--
            (A) attributable to the replacement of contract personnel 
        with military personnel or civilian employees of the Department 
        of Defense, including the number of positions associated with 
        the replacement of contract personnel performing inherently 
        governmental functions; and
            (B) attributable to reasons other than the replacement of 
        contract personnel with military personnel or civilian 
        employees of the Department, such as workload or operational 
        demand increases.
        (3) An estimate of the cost savings, if any, associated with 
    the elimination of contracts for the performance of major 
    headquarters activities.
        (4) The number of military personnel and civilian employees of 
    the Department of Defense assigned to major headquarters activities 
    for each component of the Department of Defense as of October 1 of 
    the preceding fiscal year.
    (c) Definitions.--In this section:
        (1) Defense budget materials.--The term ``defense budget 
    materials'', with respect to a fiscal year, means the materials 
    submitted to Congress by the Secretary of Defense in support of the 
    budget for that fiscal year that is submitted to Congress by the 
    President under section 1105 of title 31, United States Code.
        (2) Contract personnel.--The term ``contract personnel'' means 
    persons hired under a contract with the Department of Defense for 
    the performance of major Department of Defense headquarters 
    activities.

SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEPUTY CHIEFS AND 
              ASSISTANT CHIEFS.

    (a) Army.--Section 3035(b) of title 10, United States Code, is 
amended to read as follows:
    ``(b) The Secretary of the Army shall prescribe the number of 
Deputy Chiefs of Staff and Assistant Chiefs of Staff, for a total of 
not more than eight positions.''.
    (b) Navy.--
        (1) Deputy chiefs of naval operations.--Section 5036(a) of 
    title 10, United States Code, is amended--
            (A) by striking ``There are in the Office of the Chief of 
        Naval Operations not more than five Deputy Chiefs of Naval 
        Operations,'' and inserting ``There are Deputy Chiefs of Naval 
        Operations in the Office of the Chief of Naval Operations,''; 
        and
            (B) by adding at the end the following: ``The Secretary of 
        the Navy shall prescribe the number of Deputy Chiefs of Naval 
        Operations under this section and Assistant Chiefs of Naval 
        Operations under section 5037 of this title, for a total of not 
        more than eight positions.''.
        (2) Assistant chiefs of naval operations.--Section 5037(a) of 
    such title is amended--
            (A) by striking ``There are in the Office of the Chief of 
        Naval Operations not more than three Assistant Chiefs of Naval 
        Operations,'' and inserting ``There are Assistant Chiefs of 
        Naval Operations in the Office of the Chief of Naval 
        Operations,''; and
            (B) by adding at the end the following: ``The Secretary of 
        the Navy shall prescribe the number of Assistant Chiefs of 
        Naval Operations in accordance with section 5036(a) of this 
        title.''.
    (c) Air Force.--Section 8035(b) of title 10, United States Code, is 
amended to read as follows:
    ``(b) The Secretary of the Air Force shall prescribe the number of 
Deputy Chiefs of Staff and Assistant Chiefs of Staff, for a total of 
not more than eight positions.''.

SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR APPOINTMENT TO 
              DEPARTMENT OF DEFENSE LEADERSHIP POSITIONS.

    (a) Secretary of Defense.--Section 113(a) of title 10, United 
States Code, is amended by striking ``10'' and inserting ``seven''.
    (b) Deputy Secretary of Defense.--Section 132(a) of such title is 
amended by striking ``ten'' and inserting ``seven''.
    (c) Under Secretary of Defense for Policy.--Section 134(a) of such 
title is amended by striking ``10'' and inserting ``seven''.

SEC. 904. MANAGEMENT OF THE DEPARTMENT OF DEFENSE.

    (a) Assignment of Management Duties and Designation of a Chief 
Management Officer and Deputy Chief Management Officer of the 
Department of Defense.--
        (1) Establishment of position.--Section 132 of title 10, United 
    States Code is amended--
            (A) by redesignating subsection (c) as subsection (d); and
            (B) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) The Deputy Secretary serves as the Chief Management Officer 
of the Department of Defense. The Deputy Secretary shall be assisted in 
this capacity by a Deputy Chief Management Officer, who shall be 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate.''.
        (2) Assignment of duties.--
            (A) The Secretary of Defense shall assign duties and 
        authorities relating to the management of the business 
        operations of the Department of Defense.
            (B) The Secretary shall assign such duties and authorities 
        to the Chief Management Officer as are necessary for that 
        official to effectively and efficiently organize the business 
        operations of the Department of Defense.
            (C) The Secretary shall assign such duties and authorities 
        to the Deputy Chief Management Officer as are necessary for 
        that official to assist the Chief Management Officer to 
        effectively and efficiently organize the business operations of 
        the Department of Defense.
            (D) The Deputy Chief Management Officer shall perform the 
        duties and have the authorities assigned by the Secretary under 
        subparagraph (C) and perform such duties and have such 
        authorities as are delegated by the Chief Management Officer.
        (3) Executive schedule level iii.--Section 5314 of title 5, 
    United States Code, is amended by inserting after the item relating 
    to the Under Secretary of Defense for Intelligence the following 
    new item:

        ``Deputy Chief Management Officer of the Department of 
    Defense.''.
        (4) Placement in osd.--Section 131(b)(2) of title 10, United 
    States Code, is amended--
            (A) by redesignating paragraphs (3) through (8) as 
        paragraphs (4) through (9), respectively; and
            (B) by inserting after paragraph (2) the following new 
        paragraph (3):
        ``(3) The Deputy Chief Management Officer of the Department of 
    Defense.''.
    (b) Assignment of Management Duties and Designation of the Chief 
Management Officers of the Military Departments.--
        (1) The Secretary of a military department shall assign duties 
    and authorities relating to the management of the business 
    operations of such military department.
        (2) The Secretary of a military department, in assigning duties 
    and authorities under paragraph (1) shall designate the Under 
    Secretary of such military department to have the primary 
    management responsibility for business operations, to be known in 
    the performance of such duties as the Chief Management Officer.
        (3) The Secretary shall assign such duties and authorities to 
    the Chief Management Officer as are necessary for that official to 
    effectively and efficiently organize the business operations of the 
    military department concerned.
        (4) The Chief Management Officer of each military department 
    shall promptly provide such information relating to the business 
    operations of such department to the Chief Management Officer and 
    Deputy Chief Management Officer of the Department of Defense as is 
    necessary to assist those officials in the performance of their 
    duties.
    (c) Management of Defense Business Transformation Agency.--Section 
192(e)(2) of title 10, United States Code, is amended by striking 
``that the Agency'' and all that follows and inserting ``that the 
Director of the Agency shall report directly to the Deputy Chief 
Management Officer of the Department of Defense.''.
    (d) Strategic Management Plan Required.--
        (1) Requirement.--The Secretary of Defense, acting through the 
    Chief Management Officer of the Department of Defense, shall 
    develop a strategic management plan for the Department of Defense.
        (2) Matters covered.--Such plan shall include, at a minimum, 
    detailed descriptions of--
            (A) performance goals and measures for improving and 
        evaluating the overall efficiency and effectiveness of the 
        business operations of the Department of Defense and achieving 
        an integrated management system for business support areas 
        within the Department of Defense;
            (B) key initiatives to be undertaken by the Department of 
        Defense to achieve the performance goals under subparagraph 
        (A), together with related resource needs;
            (C) procedures to monitor the progress of the Department of 
        Defense in meeting performance goals and measures under 
        subparagraph (A);
            (D) procedures to review and approve plans and budgets for 
        changes in business operations, including any proposed changes 
        to policies, procedures, processes, and systems, to ensure the 
        compatibility of such plans and budgets with the strategic 
        management plan of the Department of Defense; and
            (E) procedures to oversee the development of, and review 
        and approve, all budget requests for defense business systems.
        (3) Updates.--The Secretary of Defense, acting through the 
    Chief Management Officer, shall update the strategic management 
    plan no later than July 1, 2009, and every two years thereafter and 
    provide a copy to the Committees on Armed Services of the Senate 
    and the House of Representatives.
    (e) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall provide to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the implementation of this section and a 
copy of the strategic management plan required by subsection (d).

SEC. 905. REVISION IN GUIDANCE RELATING TO COMBATANT COMMAND 
              ACQUISITION AUTHORITY.

    Subparagraph (B) of section 905(b)(1) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2353) is amended by striking ``and mutually supportive of''.

SEC. 906. DEPARTMENT OF DEFENSE BOARD OF ACTUARIES.

    (a) Establishment.--
        (1) In general.--Chapter 7 of title 10, United States Code, is 
    amended by inserting after section 182 the following new section:

``Sec. 183. Department of Defense Board of Actuaries

    ``(a) In General.--There shall be in the Department of Defense a 
Department of Defense Board of Actuaries (hereinafter in this section 
referred to as the `Board').
    ``(b) Members.--(1) The Board shall consist of three members who 
shall be appointed by the Secretary of Defense from among qualified 
professional actuaries who are members of the Society of Actuaries.
    ``(2) The members of the Board shall serve for a term of 15 years, 
except that a member of the Board appointed to fill a vacancy occurring 
before the end of the term for which the member's predecessor was 
appointed shall only serve until the end of such term. A member may 
serve after the end of the member's term until the member's successor 
takes office.
    ``(3) A member of the Board may be removed by the Secretary of 
Defense only for misconduct or failure to perform functions vested in 
the Board.
    ``(4) A member of the Board who is not an employee of the United 
States is entitled to receive pay at the daily equivalent of the annual 
rate of basic pay of the highest rate of basic pay then currently being 
paid under the General Schedule of subchapter III of chapter 53 of 
title 5 for each day the member is engaged in the performance of the 
duties of the Board and is entitled to travel expenses, including a per 
diem allowance, in accordance with section 5703 of that title in 
connection with such duties.
    ``(c) Duties.--The Board shall have the following duties:
        ``(1) To review valuations of the Department of Defense 
    Military Retirement Fund in accordance with section 1465(c) of this 
    title and submit to the President and Congress, not less often than 
    once every four years, a report on the status of that Fund, 
    including such recommendations for modifications to the funding or 
    amortization of that Fund as the Board considers appropriate and 
    necessary to maintain that Fund on a sound actuarial basis.
        ``(2) To review valuations of the Department of Defense 
    Education Benefits Fund in accordance with section 2006(e) of this 
    title and make recommendations to the President and Congress on 
    such modifications to the funding or amortization of that Fund as 
    the Board considers appropriate to maintain that Fund on a sound 
    actuarial basis.
        ``(3) To review valuations of such other funds as the Secretary 
    of Defense shall specify for purposes of this section and make 
    recommendations to the President and Congress on such modifications 
    to the funding or amortization of such funds as the Board considers 
    appropriate to maintain such funds on a sound actuarial basis.
    ``(d) Records.--The Secretary of Defense shall ensure that the 
Board has access to such records regarding the funds referred to in 
subsection (c) as the Board shall require to determine the actuarial 
status of such funds.
    ``(e) Reports.--(1) The Board shall submit to the Secretary of 
Defense on an annual basis a report on the actuarial status of each of 
the following:
        ``(A) The Department of Defense Military Retirement Fund.
        ``(B) The Department of Defense Education Benefits Fund.
        ``(C) Each other fund specified by Secretary under subsection 
    (c)(3).
    ``(2) The Board shall also furnish its advice and opinion on 
matters referred to it by the Secretary.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 7 of such title is amended by inserting after the item 
    relating to section 182 the following new item:

``183. Department of Defense Board of Actuaries''.

        (3) Initial service as board members.--Each member of the 
    Department of Defense Retirement Board of Actuaries or the 
    Department of Defense Education Benefits Board of Actuaries as of 
    the date of the enactment of this Act shall serve as an initial 
    member of the Department of Defense Board of Actuaries under 
    section 183 of title 10, United States Code (as added by paragraph 
    (1)), from that date until the date otherwise provided for the 
    completion of such individual's term as a member of the Department 
    of Defense Retirement Board of Actuaries or the Department of 
    Defense Education Benefits Board of Actuaries, as the case may be, 
    unless earlier removed by the Secretary of Defense.
    (b) Termination of Existing Boards of Actuaries.--
        (1) Department of defense retirement board of actuaries.--(A) 
    Section 1464 of title 10, United States Code, is repealed.
        (B) The table of sections at the beginning of chapter 74 of 
    such title is amended by striking the item relating to section 
    1464.
        (2) Department of defense education benefits board of 
    actuaries.--Section 2006 of such title is amended--
            (A) in subsection (c)(1), by striking ``subsection (g)'' 
        and inserting ``subsection (f)'';
            (B) by striking subsection (e);
            (C) by redesignating subsections (f), (g), and (h) as 
        subsections (e), (f), and (g), respectively;
            (D) in subsection (e), as redesignated by subparagraph (C), 
        by striking ``subsection (g)'' in paragraph (5) and inserting 
        ``subsection (f)''; and
            (E) in subsection (f), as so redesignated--
                (i) in paragraph (2)(A), by striking ``subsection 
            (f)(3)'' and inserting ``subsection (e)(3)''; and
                (ii) in paragraph (2)(B), by striking ``subsection 
            (f)(4)'' and inserting ``subsection (e)(4)''.
    (c) Conforming Amendments.--
        (1) Section 1175(h)(4) of title 10, United States Code, is 
    amended by striking ``Retirement'' the first place it appears.
        (2) Section 1460(b) of such title is amended by striking 
    ``Retirement''.
        (3) Section 1466(c)(3) of such title is amended by striking 
    ``Retirement''.
        (4) Section 12521(6) of such title is amended by striking 
    ``Department of Defense Education Benefits Board of Actuaries 
    referred to in section 2006(e)(1) of this title'' and inserting 
    ``Department of Defense Board of Actuaries under section 183 of 
    this title''.

SEC. 907. MODIFICATION OF BACKGROUND REQUIREMENT OF INDIVIDUALS 
              APPOINTED AS UNDER SECRETARY OF DEFENSE FOR ACQUISITION, 
              TECHNOLOGY, AND LOGISTICS.

    Section 133(a) of title 10, United States Code, is amended by 
striking ``in the private sector''.

SEC. 908. ASSISTANT SECRETARIES OF THE MILITARY DEPARTMENTS FOR 
              ACQUISITION MATTERS; PRINCIPAL MILITARY DEPUTIES.

    (a) Department of the Army.--Section 3016(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
    ``(5)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of the Army for Acquisition, Technology, and Logistics. The 
principal duty of the Assistant Secretary shall be the overall 
supervision of acquisition, technology, and logistics matters of the 
Department of the Army.
    ``(B) The Assistant Secretary shall have a Principal Military 
Deputy, who shall be a lieutenant general of the Army on active duty. 
The Principal Military Deputy shall be appointed from among officers 
who have significant experience in the areas of acquisition and program 
management. The position of Principal Military Deputy shall be 
designated as a critical acquisition position under section 1733 of 
this title.''.
    (b) Department of the Navy.--Section 5016(b) of such title is 
amended by adding at the end the following new paragraph:
    ``(4)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of the Navy for Research, Development, and Acquisition. The 
principal duty of the Assistant Secretary shall be the overall 
supervision of research, development, and acquisition matters of the 
Department of the Navy.
    ``(B) The Assistant Secretary shall have a Principal Military 
Deputy, who shall be a vice admiral of the Navy or a lieutenant general 
of the Marine Corps on active duty. The Principal Military Deputy shall 
be appointed from among officers who have significant experience in the 
areas of acquisition and program management. The position of Principal 
Military Deputy shall be designated as a critical acquisition position 
under section 1733 of this title.''.
    (c) Department of the Air Force.--Section 8016(b) of such title is 
amended by adding at the end the following new paragraph:
    ``(4)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of the Air Force for Acquisition. The principal duty of the 
Assistant Secretary shall be the overall supervision of acquisition 
matters of the Department of the Air Force.
    ``(B) The Assistant Secretary shall have a Principal Military 
Deputy, who shall be a lieutenant general of the Air Force on active 
duty. The Principal Military Deputy shall be appointed from among 
officers who have significant experience in the areas of acquisition 
and program management. The position of Principal Military Deputy shall 
be designated as a critical acquisition position under section 1733 of 
this title.''.
    (d) Duty of Principal Military Deputies To Inform Service Chiefs on 
Major Defense Acquisition Programs.--Each Principal Military Deputy to 
a service acquisition executive shall be responsible for keeping the 
Chief of Staff of the Armed Forces concerned informed of the progress 
of major defense acquisition programs.

SEC. 909. SENSE OF CONGRESS ON TERM OF OFFICE OF THE DIRECTOR OF 
              OPERATIONAL TEST AND EVALUATION.

    It is the sense of Congress that the term of office of the Director 
of Operational Test and Evaluation of the Department of Defense should 
be not less than five years.

                      Subtitle B--Space Activities

SEC. 911. SPACE PROTECTION STRATEGY.

    (a) Sense of Congress.--It is the Sense of Congress that the United 
States should place greater priority on the protection of national 
security space systems.
    (b) Strategy.--The Secretary of Defense, in conjunction with the 
Director of National Intelligence, shall develop a strategy, to be 
known as the Space Protection Strategy, for the development and 
fielding by the United States of the capabilities that are necessary to 
ensure freedom of action in space for the United States.
    (c) Matters Included.--The strategy required by subsection (b) 
shall include each of the following:
        (1) An identification of the threats to, and the 
    vulnerabilities of, the national security space systems of the 
    United States.
        (2) A description of the capabilities currently contained in 
    the program of record of the Department of Defense and the 
    intelligence community that ensure freedom of action in space.
        (3) For each period covered by the strategy, a description of 
    the capabilities that are needed for the period, including--
            (A) the hardware, software, and other materials or services 
        to be developed or procured;
            (B) the management and organizational changes to be 
        achieved; and
            (C) concepts of operations, tactics, techniques, and 
        procedures to be employed.
        (4) For each period covered by the strategy, an assessment of 
    the gaps and shortfalls between the capabilities that are needed 
    for the period and the capabilities currently contained in the 
    program of record.
        (5) For each period covered by the strategy, a comprehensive 
    plan for investment in capabilities that identifies specific 
    program and technology investments to be made in that period.
        (6) A description of the current processes by which the systems 
    protection requirements of the Department of Defense and the 
    intelligence community are addressed in space acquisition programs 
    and during key milestone decisions, an assessment of the adequacy 
    of those processes, and an identification of the actions of the 
    Department and the intelligence community for addressing any 
    inadequacies in those processes.
        (7) A description of the current processes by which the 
    Department of Defense and the intelligence community program and 
    budget for capabilities (including capabilities that are 
    incorporated into single programs and capabilities that span 
    multiple programs), an assessment of the adequacy of those 
    processes, and an identification of the actions of the Department 
    and the intelligence community for addressing any inadequacies in 
    those processes.
        (8) A description of the organizational and management 
    structure of the Department of Defense and the intelligence 
    community for addressing policy, planning, acquisition, and 
    operations with respect to capabilities, a description of the roles 
    and responsibilities of each organization, and an identification of 
    the actions of the Department and the intelligence community for 
    addressing any inadequacies in that structure.
    (d) Periods Covered.--The strategy required by subsection (b) shall 
cover the following periods:
        (1) Fiscal years 2008 through 2013.
        (2) Fiscal years 2014 through 2019.
        (3) Fiscal years 2020 through 2025.
    (e) Definitions.--In this section--
        (1) the term ``capabilities'' means space, airborne, and ground 
    systems and capabilities for space situational awareness and for 
    space systems protection; and
        (2) the term ``intelligence community'' has the meaning given 
    such term in section 3(4) of the National Security Act of 1947 (50 
    U.S.C. 401a(4)).
    (f) Report; Biennial Update.--
        (1) Report.--Not later than six months after the date of the 
    enactment of this Act, the Secretary of Defense, in conjunction 
    with the Director of National Intelligence, shall submit to 
    Congress a report on the strategy required by subsection (b), 
    including each of the matters required by subsection (c).
        (2) Biennial update.--Not later than March 15 of each even-
    numbered year after 2008, the Secretary of Defense, in conjunction 
    with the Director of National Intelligence, shall submit to 
    Congress an update to the report required by paragraph (1).
        (3) Classification.--The report required by paragraph (1), and 
    each update required by paragraph (2), shall be in unclassified 
    form, but may include a classified annex.
    (g) Conforming Repeal.--Section 911 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3405; 10 U.S.C. 2271 note) is repealed.

SEC. 912. BIENNIAL REPORT ON MANAGEMENT OF SPACE CADRE WITHIN THE 
              DEPARTMENT OF DEFENSE.

    (a) In General.--Chapter 23 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 490. Space cadre management: biennial report

    ``(a) Requirement.--The Secretary of Defense and each Secretary of 
a military department shall develop metrics and use these metrics to 
identify, track, and manage space cadre personnel within the Department 
of Defense to ensure the Department has sufficient numbers of personnel 
with the expertise, training, and experience to meet current and future 
national security space needs.
    ``(b) Biennial Report Required.--
        ``(1) In general.--Not later than 180 days after the date of 
    the enactment of this section, and every even-numbered year 
    thereafter, the Secretary of Defense shall submit to the 
    congressional defense committees a report on the management of the 
    space cadre.
        ``(2) Matters included.--The report required by paragraph (1) 
    shall include--
            ``(A) the number of active duty, reserve duty, and 
        government civilian space-coded billets that--
                ``(i) are authorized or permitted to be maintained for 
            each military department and defense agency;
                ``(ii) are needed or required for each military 
            department and defense agency for the year in which the 
            submission of the report is required; and
                ``(iii) are needed or required for each military 
            department and defense agency for each of the five years 
            following the date of the submission of the report;
            ``(B) the actual number of active duty, reserve duty, and 
        government civilian personnel that are coded or classified as 
        space cadre personnel within the Department of Defense, 
        including the military departments and defense agencies;
            ``(C) the number of personnel recruited or hired as 
        accessions to serve in billets coded or classified as space 
        cadre personnel for each military department and defense 
        agency;
            ``(D) the number of personnel serving in billets coded or 
        classified as space cadre personnel that discontinued serving 
        each military department and defense agency during the 
        preceding calendar year;
            ``(E) for each of the reporting requirements in 
        subparagraphs (A) through (D), further classification of the 
        number of personnel by--
                ``(i) space operators, acquisition personnel, 
            engineers, scientists, program managers, and other space-
            related areas identified by the Department;
                ``(ii) expertise or technical specialization area--

                    ``(I) such as communications, missile warning, 
                spacelift, and any other space-related specialties 
                identified by the Department or classifications used by 
                the Department; and
                    ``(II) consistent with section 1721 of this title 
                for acquisition personnel;

                ``(iii) rank for active duty and reserve duty personnel 
            and grade for government civilian personnel;
                ``(iv) qualification, expertise, or proficiency level 
            consistent with service and agency-defined qualification, 
            expertise, or proficiency levels; and
                ``(v) any other such space-related classification 
            categories used by the Department or military departments; 
            and
            ``(F) any other metrics identified by the Department to 
        improve the identification, tracking, training, and management 
        of space cadre personnel.
        ``(3) Assessments.--The report required by paragraph (1) shall 
    also include the Secretary's assessment of the state of the 
    Department's space cadre, the Secretary's assessment of the space 
    cadres of the military departments, and a description of efforts to 
    ensure the Department has a space cadre sufficient to meet current 
    and future national security space needs.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``490. Space cadre management: biennial report.''.

SEC. 913. ADDITIONAL REPORT ON OVERSIGHT OF ACQUISITION FOR DEFENSE 
              SPACE PROGRAMS.

    Section 911(b)(1) of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2621) is 
amended by inserting ``, and March 15, 2008,'' after ``March 15, 
2003,''.

             Subtitle C--Chemical Demilitarization Program

SEC. 921. CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMISSIONS.

    (a) Functions.--Section 172 of the National Defense Authorization 
Act for Fiscal Year 1993 (50 U.S.C. 1521 note) is amended--
        (1) in each of subsections (b) and (f), by striking ``Assistant 
    Secretary of the Army (Research, Development and Acquisition)'' and 
    inserting ``Assistant Secretary of the Army (Acquisition, 
    Logistics, and Technology)''; and
        (2) in subsection (g), by striking ``Assistant Secretary of the 
    Army (Research, Development, and Acquisition)'' and inserting 
    ``Assistant Secretary of the Army (Acquisition, Logistics, and 
    Technology)''.
    (b) Termination.--Such section is further amended in subsection (h) 
by striking ``after the stockpile located in that commission's State 
has been destroyed'' and inserting ``after the closure activities 
required pursuant to regulations promulgated by the Administrator of 
the Environmental Protection Agency pursuant to the Solid Waste 
Disposal Act (42 U.S.C. 6901 et seq.) have been completed for the 
chemical agent destruction facility in the commission's State, or upon 
the request of the Governor of the commission's State, whichever occurs 
first''.

SEC. 922. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED 
              STATES CHEMICAL WEAPONS STOCKPILE.

    (a) Findings.--Congress makes the following findings:
        (1) The Convention on the Prohibition of the Development, 
    Production, Stockpiling and Use of Chemical Weapons and on Their 
    Destruction, done at Paris on January 13, 1993 (commonly referred 
    to as the ``Chemical Weapons Convention''), requires that 
    destruction of the entire United States chemical weapons stockpile 
    be completed by not later than April 29, 2007.
        (2) In 2006, under the terms of the Chemical Weapons 
    Convention, the United States requested and received a one-time, 5-
    year extension of its chemical weapons destruction deadline to 
    April 29, 2012.
        (3) On April 10, 2006, the Secretary of Defense notified 
    Congress that the United States would not meet even the extended 
    deadline under the Chemical Weapons Convention for destruction of 
    the United States chemical weapons stockpile, but would ``continue 
    working diligently to minimize the time to complete destruction 
    without sacrificing safety and security'' and would also ``continue 
    requesting resources needed to complete destruction as close to 
    April 2012 as practicable''.
        (4) The United States chemical demilitarization program has met 
    its one percent, 20 percent, and extended 45 percent destruction 
    deadlines under the Chemical Weapons Convention.
        (5) Destroying the remaining stockpile of United States 
    chemical weapons is imperative for public safety and homeland 
    security, and doing so by April 2012, in accordance with the 
    current destruction deadline provided under the Chemical Weapons 
    Convention, is required by United States law.
        (6) The elimination of chemical weapons anywhere they exist in 
    the world, and the prevention of their proliferation, is of utmost 
    importance to the national security of the United States.
        (7) Section 921(b)(3) of the John Warner National Defense 
    Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
    Stat. 2359) contained a sense of Congress urging the Secretary of 
    Defense to ensure the elimination of the United States chemical 
    weapons stockpile in the shortest time possible, consistent with 
    the requirement to protect public health, safety, and the 
    environment.
        (8) Section 921(b)(4) of that Act contained a sense of Congress 
    urging the Secretary of Defense to propose a credible treatment and 
    disposal process with the support of affected communities. In this 
    regard, any such process should provide for sufficient 
    communication and consultation between representatives of the 
    Department of Defense and representatives of affected States and 
    communities.
    (b) Sense of Congress.--It is the sense of Congress that--
        (1) the United States is, and must remain, committed to making 
    every effort to safely dispose of its entire chemical weapons 
    stockpile by April 2012, the current destruction deadline provided 
    under the Chemical Weapons Convention, or as soon thereafter as 
    possible, and must carry out all of its other obligations under the 
    Convention; and
        (2) the Secretary of Defense should make every effort to plan 
    for, and to request in the annual budget of the President submitted 
    to Congress adequate funding to complete, the elimination of the 
    United States chemical weapons stockpile in accordance with United 
    States obligations under the Chemical Weapons Convention and in a 
    manner that will protect public health, safety, and the 
    environment, as required by law.
    (c) Reports Required.--
        (1) In general.--Not later than March 15, 2008, and every 180 
    days thereafter until the year in which the United States completes 
    the destruction of its entire stockpile of chemical weapons under 
    the terms of the Chemical Weapons Convention, the Secretary of 
    Defense shall submit to the members and committees of Congress 
    referred to in paragraph (3) a report on the implementation by the 
    United States of its chemical weapons destruction obligations under 
    the Chemical Weapons Convention.
        (2) Elements.--Each report under paragraph (1) shall include 
    the following:
            (A) The anticipated schedule at the time of such report for 
        the completion of destruction of chemical agents, munitions, 
        and materiel at each chemical weapons demilitarization facility 
        in the United States.
            (B) A description of the options and alternatives for 
        accelerating the completion of chemical weapons destruction at 
        each such facility, particularly in time to meet the 
        destruction deadline of April 29, 2012, currently provided by 
        the Chemical Weapons Convention, and by December 31, 2017.
            (C) A description of the funding required to achieve each 
        of the options for destruction described under subparagraph 
        (B), and a detailed life-cycle cost estimate for each of the 
        affected facilities included in each such funding profile.
            (D) A description of all actions being taken by the United 
        States to accelerate the destruction of its entire stockpile of 
        chemical weapons, agents, and materiel in order to meet the 
        current destruction deadline under the Chemical Weapons 
        Convention of April 29, 2012, or as soon thereafter as 
        possible.
        (3) Members and committees of congress.--The members and 
    committees of Congress referred to in this paragraph are--
            (A) the majority leader of the Senate, the minority leader 
        of the Senate, and the Committees on Armed Services and 
        Appropriations of the Senate; and
            (B) the Speaker of the House of Representatives, the 
        majority leader of the House of Representatives, the minority 
        leader of the House of Representatives, and the Committees on 
        Armed Services and Appropriations of the House of 
        Representatives.

SEC. 923. REPEAL OF CERTAIN QUALIFICATIONS REQUIREMENT FOR DIRECTOR OF 
              CHEMICAL DEMILITARIZATION MANAGEMENT ORGANIZATION.

    Section 1412(e)(3) of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521(e)(3)) is amended--
        (1) in subparagraph (A), by adding ``and'' at the end;
        (2) by striking subparagraph (B); and
        (3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 924. MODIFICATION OF TERMINATION OF ASSISTANCE TO STATE AND LOCAL 
              GOVERNMENTS AFTER COMPLETION OF THE DESTRUCTION OF THE 
              UNITED STATES CHEMICAL WEAPONS STOCKPILE.

    Subparagraph (B) of section 1412(c)(5) of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521(c)(5)) is amended to read as 
follows:
    ``(B) Assistance may be provided under this paragraph for 
capabilities to respond to emergencies involving an installation or 
facility as described in subparagraph (A) until the earlier of the 
following:
        ``(i) The date of the completion of all grants and cooperative 
    agreements with respect to the installation or facility for 
    purposes of this paragraph between the Federal Emergency Management 
    Agency and the State and local governments concerned.
        ``(ii) The date that is 180 days after the date of the 
    completion of the destruction of lethal chemical agents and 
    munitions at the installation or facility.''.

                Subtitle D--Intelligence-Related Matters

SEC. 931. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES CODE, ARISING 
              FROM ENACTMENT OF THE INTELLIGENCE REFORM AND TERRORISM 
              PREVENTION ACT OF 2004.

    (a) References to Head of Intelligence Community.--Title 10, United 
States Code, is amended by striking ``Director of Central 
Intelligence'' each place it appears in the following provisions and 
inserting ``Director of National Intelligence'':
        (1) Section 192(c)(2).
        (2) Section 193(d)(2).
        (3) Section 193(e).
        (4) Section 201(a).
        (5) Section 201(c)(1).
        (6) Section 425(a).
        (7) Section 426(a)(3).
        (8) Section 426(b)(2).
        (9) Section 441(c).
        (10) Section 441(d).
        (11) Section 443(d).
        (12) Section 2273(b)(1).
        (13) Section 2723(a).
    (b) References to Head of Central Intelligence Agency.--Such title 
is further amended by striking ``Director of Central Intelligence'' 
each place it appears in the following provisions and inserting 
``Director of the Central Intelligence Agency'':
        (1) Section 431(b)(1).
        (2) Section 444.
        (3) Section 1089(g).
    (c) Other Amendments.--
        (1) Subsection headings.--
            (A) Section 441(c).--The heading of subsection (c) of 
        section 441 of such title is amended by striking ``Director of 
        Central Intelligence'' and inserting ``Director of National 
        Intelligence''.
            (B) Section 443(d).--The heading of subsection (d) of 
        section 443 of such title is amended by striking ``Director of 
        Central Intelligence'' and inserting ``Director of National 
        Intelligence''.
        (2) Section 201.--Section 201 of such title is further 
    amended--
            (A) in subsection (b)(1), to read as follows:
        ``(1) In the event of a vacancy in a position referred to in 
    paragraph (2), before appointing an individual to fill the vacancy 
    or recommending to the President an individual to be nominated to 
    fill the vacancy, the Secretary of Defense shall obtain the 
    concurrence of the Director of National Intelligence as provided in 
    section 106(b) of the National Security Act of 1947 (50 U.S.C. 403-
    6(b)).''; and
            (B) in subsection (c)(1), by striking ``National Foreign 
        Intelligence Program'' and inserting ``National Intelligence 
        Program''.

                Subtitle E--Roles and Missions Analysis

SEC. 941. REQUIREMENT FOR QUADRENNIAL ROLES AND MISSIONS REVIEW.

    (a) Requirement for Review.--
        (1) In general.--Chapter 2 of title 10, United States Code, is 
    amended by inserting after section 118a the following new section:

``Sec. 118b. Quadrennial roles and missions review

    ``(a) Review Required.--The Secretary of Defense shall every four 
years conduct a comprehensive assessment (to be known as the 
`quadrennial roles and missions review') of the roles and missions of 
the armed forces and the core competencies and capabilities of the 
Department of Defense to perform and support such roles and missions.
    ``(b) Independent Military Assessment of Roles and Missions.--(1) 
In each year in which the Secretary of Defense is required to conduct a 
comprehensive assessment pursuant to subsection (a), the Chairman of 
the Joint Chiefs of Staff shall prepare and submit to the Secretary the 
Chairman's assessment of the roles and missions of the armed forces and 
the assignment of functions to the armed forces, together with any 
recommendations for changes in assignment that the Chairman considers 
necessary to achieve maximum efficiency and effectiveness of the armed 
forces.
    ``(2) The Chairman's assessment shall be conducted so as to--
        ``(A) organize the significant missions of the armed forces 
    into core mission areas that cover broad areas of military 
    activity;
        ``(B) ensure that core mission areas are defined and functions 
    are assigned so as to avoid unnecessary duplication of effort among 
    the armed forces; and
        ``(C) provide the Chairman's recommendations with regard to 
    issues to be addressed by the Secretary of Defense under subsection 
    (c).
    ``(c) Identification of Core Mission Areas and Core Competencies 
and Capabilities.--Upon receipt of the Chairman's assessment, and after 
giving appropriate consideration to the Chairman's recommendations, the 
Secretary of Defense shall identify--
        ``(1) the core mission areas of the armed forces;
        ``(2) the core competencies and capabilities that are 
    associated with the performance or support of a core mission area 
    identified pursuant to paragraph (1);
        ``(3) the elements of the Department of Defense (including any 
    other office, agency, activity, or command described in section 
    111(b) of this title) that are responsible for providing the core 
    competencies and capabilities required to effectively perform the 
    core missions identified pursuant to paragraph (1);
        ``(4) any gaps in the ability of the elements (or other office, 
    agency activity, or command) of the Department of Defense to 
    provide core competencies and capabilities required to effectively 
    perform the core missions identified pursuant to paragraph (1);
        ``(5) any unnecessary duplication of core competencies and 
    capabilities between defense components; and
        ``(6) a plan for addressing any gaps or unnecessary duplication 
    identified pursuant to paragraph (4) or paragraph (5).
    ``(d) Report.--The Secretary shall submit a report on the 
quadrennial roles and missions review to the Committees on Armed 
Services of the Senate and the House of Representatives. The report 
shall be submitted in the year following the year in which the review 
is conducted, but not later than the date on which the President 
submits the budget for the next fiscal year to Congress under section 
1105(a) of title 31.''.
    (b) Repeal of Superseded Provision.--Section 118(e) of title 10, 
United States Code, is amended--
        (1) by striking paragraph (2); and
        (2) by redesignating paragraph (3) as paragraph (2).
    (c) Timing of Quadrennial Roles and Missions Review.--
        (1) First review.--The first quadrennial roles and missions 
    review under section 118b of title 10, United States Code, as added 
    by subsection (a), shall be conducted during 2008.
        (2) Subsequent reviews.--Subsequent reviews shall be conducted 
    every four years, beginning in 2011.

SEC. 942. JOINT REQUIREMENTS OVERSIGHT COUNCIL ADDITIONAL DUTIES 
              RELATING TO CORE MISSION AREAS.

    (a) Revisions in Mission.--Subsection (b) of section 181 of title 
10, United States Code, is amended to read as follows:
    ``(b) Mission.--In addition to other matters assigned to it by the 
President or Secretary of Defense, the Joint Requirements Oversight 
Council shall--
        ``(1) assist the Chairman of the Joint Chiefs of Staff--
            ``(A) in identifying, assessing, and approving joint 
        military requirements (including existing systems and 
        equipment) to meet the national military strategy; and
            ``(B) in identifying the core mission area associated with 
        each such requirement;
        ``(2) assist the Chairman in establishing and assigning 
    priority levels for joint military requirements;
        ``(3) assist the Chairman in reviewing the estimated level of 
    resources required in the fulfillment of each joint military 
    requirement and in ensuring that such resource level is consistent 
    with the level of priority assigned to such requirement; and
        ``(4) assist acquisition officials in identifying alternatives 
    to any acquisition program that meet joint military requirements 
    for the purposes of section 2366a(a)(4), section 2366b(b), and 
    section 2433(e)(2) of this title.''.
    (b) Advisors.--Section 181 of such title is amended--
        (1) by redesignating subsection (d) as subsection (f); and
        (2) by inserting after subsection (c) the following new 
    subsection (d):
    ``(d) Advisors.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics, the Under Secretary of Defense 
(Comptroller), and the Director of the Office of Program Analysis and 
Evaluation shall serve as advisors to the Council on matters within 
their authority and expertise.''.
    (c) Organization.--Section 181 of such title is further amended by 
inserting after subsection (d) (as inserted by subsection (b)) the 
following new subsection (e):
    ``(e) Organization.--The Joint Requirements Oversight Council shall 
conduct periodic reviews of joint military requirements within a core 
mission area of the Department of Defense. In any such review of a core 
mission area, the officer or official assigned to lead the review shall 
have a deputy from a different military department.''.
    (d) Definitions.--Section 181 of such title is further amended by 
adding at the end the following new subsection:
    ``(g) Definitions.--In this section:
        ``(1) The term `joint military requirement' means a capability 
    necessary to fulfill a gap in a core mission area of the Department 
    of Defense.
        ``(2) The term `core mission area' means a core mission area of 
    the Department of Defense identified under the most recent 
    quadrennial roles and missions review pursuant to section 118b of 
    this title.''.
    (e) Consultation.--Section 2433(e)(2) of such title is amended by 
inserting ``, after consultation with the Joint Requirements Oversight 
Council regarding program requirements,'' after ``Secretary of 
Defense'' in the matter preceding subparagraph (A).
    (f) Deadlines.--Effective June 1, 2009, all joint military 
requirements documents of the Joint Requirements Oversight Council 
produced to carry out its mission under section 181(b)(1) of title 10, 
United States Code, shall reference the core mission areas organized 
and defined under section 118b of such title. Not later than October 1, 
2009, all such documents produced before June 1, 2009, shall reference 
such structure.

SEC. 943. REQUIREMENT FOR CERTIFICATION OF MAJOR SYSTEMS PRIOR TO 
              TECHNOLOGY DEVELOPMENT.

    (a) Requirement for Certification.--
        (1) In general.--Chapter 139 of title 10, United States Code, 
    is amended by inserting after section 2366a the following new 
    section:

``Sec. 2366b. Major defense acquisition programs: certification 
            required before Milestone A or Key Decision Point A 
            approval

    ``(a) Certification.--A major defense acquisition program may not 
receive Milestone A approval, or Key Decision Point A approval in the 
case of a space program, until the Milestone Decision Authority 
certifies, after consultation with the Joint Requirements Oversight 
Council on matters related to program requirements and military needs--
        ``(1) that the system fulfills an approved initial capabilities 
    document;
        ``(2) that the system is being executed by an entity with a 
    relevant core competency as identified by the Secretary of Defense 
    under section 118b of this title;
        ``(3) if the system duplicates a capability already provided by 
    an existing system, the duplication provided by such system is 
    necessary and appropriate; and
        ``(4) that a cost estimate for the system has been submitted 
    and that the level of resources required to develop and procure the 
    system is consistent with the priority level assigned by the Joint 
    Requirements Oversight Council.
    ``(b) Notification.--With respect to a major system certified by 
the Milestone Decision Authority under subsection (a), if the projected 
cost of the system, at any time prior to Milestone B approval, exceeds 
the cost estimate for the system submitted at the time of the 
certification by at least 25 percent, the program manager for the 
system concerned shall notify the Milestone Decision Authority. The 
Milestone Decision Authority, in consultation with the Joint 
Requirements Oversight Council on matters related to program 
requirements and military needs, shall determine whether the level of 
resources required to develop and procure the system remains consistent 
with the priority level assigned by the Joint Requirements Oversight 
Council. The Milestone Decision Authority may withdraw the 
certification concerned or rescind Milestone A approval (or Key 
Decision Point A approval in the case of a space program) if the 
Milestone Decision Authority determines that such action is in the 
interest of national defense.
    `` (c)Definitions.--In this section:
        ``(1) The term `major system' has the meaning provided in 
    section 2302(5) of this title.
        ``(2) The term `initial capabilities document' means any 
    capabilities requirement document approved by the Joint 
    Requirements Oversight Council that establishes the need for a 
    materiel approach to resolve a capability gap.
        ``(3) The term `technology development program' means a 
    coordinated effort to assess technologies and refine user 
    performance parameters to fulfill a capability gap identified in an 
    initial capabilities document.
        ``(4) The term `entity' means an entity listed in section 
    125a(a) of this title.
        ``(5) The term `Milestone B approval' has the meaning provided 
    that term in section 2366(e)(7) of this title.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by adding at the end the following new 
    item:

``2366b. Major defense acquisition programs: certification required 
          before Milestone A or Key Decision Point A approval.''.

    (b) Review of Department of Defense Acquisition Directives.--Not 
later than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall review Department of Defense Directive 
5000.1 and associated guidance, and the manner in which such directive 
and guidance have been implemented, and take appropriate steps to 
ensure that the Department does not commence a technology development 
program for a major weapon system without Milestone A approval (or Key 
Decision Point A approval in the case of a space program).
    (c) Effective Date.--Section 2366b of title 10, United States Code, 
as added by subsection (a), shall apply to major systems on and after 
March 1, 2008.

SEC. 944. PRESENTATION OF FUTURE-YEARS MISSION BUDGET BY CORE MISSION 
              AREA.

    (a) Time of Submission of Future-Years Mission Budget.--The second 
sentence of section 222(a) of title 10, United States Code, is amended 
to read as follows: ``That budget shall be submitted for any fiscal 
year with the future-years defense program submitted under section 221 
of this title.''.
    (b) Organization of Future-Years Mission Budget.--The second 
sentence of section 222(b) of such title is amended by striking ``on 
the basis'' and all that follows through the end of the sentence and 
inserting the following: ``on the basis of both major force programs 
and the core mission areas identified under the most recent quadrennial 
roles and missions review pursuant to section 118b of this title.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to the future-years mission budget for fiscal year 
2010 and each fiscal year thereafter.

                       Subtitle F--Other Matters

SEC. 951. DEPARTMENT OF DEFENSE CONSIDERATION OF EFFECT OF CLIMATE 
              CHANGE ON DEPARTMENT FACILITIES, CAPABILITIES, AND 
              MISSIONS.

    (a) Consideration of Climate Change Effect.--Section 118 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(g) Consideration of Effect of Climate Change on Department 
Facilities, Capabilities, and Missions.--(1) The first national 
security strategy and national defense strategy prepared after the date 
of the enactment of the National Defense Authorization Act for Fiscal 
Year 2008 shall include guidance for military planners--
        ``(A) to assess the risks of projected climate change to 
    current and future missions of the armed forces;
        ``(B) to update defense plans based on these assessments, 
    including working with allies and partners to incorporate climate 
    mitigation strategies, capacity building, and relevant research and 
    development; and
        ``(C) to develop the capabilities needed to reduce future 
    impacts.
    ``(2) The first quadrennial defense review prepared after the date 
of the enactment of the National Defense Authorization Act for Fiscal 
Year 2008 shall also examine the capabilities of the armed forces to 
respond to the consequences of climate change, in particular, 
preparedness for natural disasters from extreme weather events and 
other missions the armed forces may be asked to support inside the 
United States and overseas.
    ``(3) For planning purposes to comply with the requirements of this 
subsection, the Secretary of Defense shall use--
        ``(A) the mid-range projections of the fourth assessment report 
    of the Intergovernmental Panel on Climate Change;
        ``(B) subsequent mid-range consensus climate projections if 
    more recent information is available when the next national 
    security strategy, national defense strategy, or quadrennial 
    defense review, as the case may be, is conducted; and
        ``(C) findings of appropriate and available estimations or 
    studies of the anticipated strategic, social, political, and 
    economic effects of global climate change and the implications of 
    such effects on the national security of the United States.
    ``(4) In this subsection, the term `national security strategy' 
means the annual national security strategy report of the President 
under section 108 of the National Security Act of 1947 (50 U.S.C. 
404a).''.
    (b) Implementation.--The Secretary of Defense shall ensure that 
subsection (g) of section 118 of title 10, United States Code, as added 
by subsection (a), is implemented in a manner that does not have a 
negative impact on the national security of the United States.

SEC. 952. INTERAGENCY POLICY COORDINATION.

    (a) Plan Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall develop and 
submit to Congress a plan to improve and reform the Department of 
Defense's participation in and contribution to the interagency 
coordination process on national security issues.
    (b) Elements.--The elements of the plan shall include the 
following:
        (1) Assigning either the Under Secretary of Defense for Policy 
    or another official to be the lead policy official for improving 
    and reforming the interagency coordination process on national 
    security issues for the Department of Defense, with an explanation 
    of any decision to name an official other than the Under Secretary 
    and the relative advantages and disadvantages of such decision.
        (2) Giving the official assigned under paragraph (1) the 
    following responsibilities:
            (A) To be the lead person at the Department of Defense for 
        the development of policy affecting the national security 
        interagency process.
            (B) To serve, or designate a person to serve, as the 
        representative of the Department of Defense in Federal 
        Government forums established to address interagency policy, 
        planning, or reforms.
            (C) To advocate, on behalf of the Secretary, for greater 
        interagency coordination and contributions in the execution of 
        the National Security Strategy and particularly specific 
        operational objectives undertaken pursuant to that strategy.
            (D) To make recommendations to the Secretary of Defense on 
        changes to existing Department of Defense regulations or laws 
        to improve the interagency process.
            (E) To serve as the coordinator for all planning and 
        training assistance that is--
                (i) designed to improve the interagency process or the 
            capabilities of other agencies to work with the Department 
            of Defense; and
                (ii) provided by the Department of Defense at the 
            request of other agencies.
            (F) To serve as the lead official in Department of Defense 
        for the development of deployable joint interagency task 
        forces.
    (c) Factors To Be Considered.--In drafting the plan, the Secretary 
of Defense shall also consider the following factors:
        (1) How the official assigned under subsection (b)(1) shall 
    provide input to the Secretary of Defense on an ongoing basis on 
    how to incorporate the need to coordinate with other agencies into 
    the establishment and reform of combatant commands.
        (2) How such official shall develop and make recommendations to 
    the Secretary of Defense on a regular or an ongoing basis on 
    changes to military and civilian personnel to improve interagency 
    coordination.
        (3) How such official shall work with the combatant command 
    that has the mission for joint warfighting experimentation and 
    other interested agencies to develop exercises to test and validate 
    interagency planning and capabilities.
        (4) How such official shall lead, coordinate, or participate in 
    after-action reviews of operations, tests, and exercises to capture 
    lessons learned regarding the functioning of the interagency 
    process and how those lessons learned will be disseminated.
        (5) The role of such official in ensuring that future defense 
    planning guidance takes into account the capabilities and needs of 
    other agencies.
    (d) Recommendation on Changes in Law.--The Secretary of Defense may 
submit with the plan or with any future budget submissions 
recommendations for any changes to law that are required to enhance the 
ability of the official assigned under subsection (b)(1) in the 
Department of Defense to coordinate defense interagency efforts or to 
improve the ability of the Department of Defense to work with other 
agencies.
    (e) Annual Report.--If an official is named by the Secretary of 
Defense under subsection (b)(1), the official shall annually submit to 
Congress a report, beginning in the fiscal year following the naming of 
the official, on those actions taken by the Department of Defense to 
enhance national security interagency coordination, the views of the 
Department of Defense on efforts and challenges in improving the 
ability of agencies to work together, and suggestions on changes needed 
to laws or regulations that would enhance the coordination of efforts 
of agencies.
    (f) Definition.--In this section, the term ``interagency 
coordination'', within the context of Department of Defense 
involvement, means the coordination that occurs between elements of the 
Department of Defense and engaged Federal Government agencies for the 
purpose of achieving an objective.
    (g) Construction.--Nothing in this provision shall be construed as 
preventing the Secretary of Defense from naming an official with the 
responsibilities listed in subsection (b) before the submission of the 
report required under this section.

SEC. 953. EXPANSION OF EMPLOYMENT CREDITABLE UNDER SERVICE AGREEMENTS 
              UNDER NATIONAL SECURITY EDUCATION PROGRAM.

    Paragraph (2) of subsection (b) of section 802 of the David L. 
Boren National Security Education Act of 1991 (50 U.S.C. 1902), as most 
recently amended by section 945 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 
2367), is amended--
        (1) in subparagraph (A)--
            (A) in clause (i) by striking ``or'' at the end; and
            (B) by adding at the end the following:
                ``(iii) for not less than one academic year in a 
            position in the field of education in a discipline related 
            to the study supported by the program if the recipient 
            demonstrates to the Secretary of Defense that no position 
            is available in the departments, agencies, and offices 
            covered by clauses (i) and (ii); or''; and
        (2) in subparagraph (B)--
            (A) in clause (i) by striking ``or'' at the end;
            (B) in clause (ii) by striking ``and'' at the end and 
        inserting ``or''; and
            (C) by adding at the end the following:
                ``(iii) for not less than one academic year in a 
            position in the field of education in a discipline related 
            to the study supported by the program if the recipient 
            demonstrates to the Secretary of Defense that no position 
            is available in the departments, agencies, and offices 
            covered by clauses (i) and (ii); and''.

SEC. 954. BOARD OF REGENTS FOR THE UNIFORMED SERVICES UNIVERSITY OF THE 
              HEALTH SCIENCES.

    (a) Reorganization and Amendment of Board of Regents Provisions.--
        (1) In general.--Chapter 104 of title 10, United States Code, 
    is amended by inserting after section 2113 the following new 
    section:

``Sec. 2113a. Board of Regents

    ``(a) In General.--To assist the Secretary of Defense in an 
advisory capacity, there is a Board of Regents of the University.
    ``(b) Membership.--The Board shall consist of--
        ``(1) nine persons outstanding in the fields of health and 
    health education who shall be appointed from civilian life by the 
    Secretary of Defense;
        ``(2) the Secretary of Defense, or his designee, who shall be 
    an ex officio member;
        ``(3) the surgeons general of the uniformed services, who shall 
    be ex officio members; and
        ``(4) the President of the University, who shall be a nonvoting 
    ex officio member.
    ``(c) Term of Office.--The term of office of each member of the 
Board (other than ex officio members) shall be six years except that--
        ``(1) any member appointed to fill a vacancy occurring before 
    the expiration of the term for which his predecessor was appointed 
    shall be appointed for the remainder of such term; and
        ``(2) any member whose term of office has expired shall 
    continue to serve until his successor is appointed.
    ``(d) Chairman.--One of the members of the Board (other than an ex 
officio member) shall be designated by the Secretary as Chairman. He 
shall be the presiding officer of the Board.
    ``(e) Compensation.--Members of the Board (other than ex officio 
members) while attending conferences or meetings or while otherwise 
performing their duties as members shall be entitled to receive 
compensation at a rate to be fixed by the Secretary and shall also be 
entitled to receive an allowance for necessary travel expenses while so 
serving away from their place of residence.
    ``(f) Meetings.--The Board shall meet at least once a quarter.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by adding at the end the following new 
    item:

``2113a. Board of Regents.''.

        (3) Conforming amendments.--
            (A) Section 2113 of title 10, United States Code, is 
        amended--
                (i) in subsection (a), by striking ``To assist'' and 
            all that follows through the end of paragraph (4);
                (ii) by striking subsections (b), (c), and (e);
                (iii) by redesignating subsections (d), (f), (g), (h), 
            (i), and (j) as subsections (b), (c), (d), (e), (f), and 
            (g), respectively; and
                (iv) in subsection (b), as so redesignated, by striking 
            ``who shall also serve as a nonvoting ex officio member of 
            the Board''.
            (B) Section 2114(h) of such title is amended by striking 
        ``2113(h)'' and inserting ``2113(e)''.
    (b) Statutory Redesignation of Dean as President.--
        (1) Subsection 2113 of such title is further amended by 
    striking ``Dean'' each place it appears in subsections (b) and 
    (c)(1), as redesignated by subsection (a)(3), and inserting 
    ``President''.
        (2) Section 2114(e) of such title is amended by striking 
    ``Dean'' each place it appears in paragraphs (3) and (5).

SEC. 955. ESTABLISHMENT OF DEPARTMENT OF DEFENSE SCHOOL OF NURSING.

    (a) Establishment Plan Required.--Not later than February 1, 2008, 
the Secretary of Defense shall submit to the congressional defense 
committees a plan to establish a School of Nursing within the Uniformed 
Services University of the Health Sciences. The Secretary shall develop 
the plan in consultation with the Board of Regents of the Uniformed 
Services University of the Health Sciences and submit the plan to the 
Board of Regents for review and to solicit the Board's recommendations.
    (b) Programs of Instruction.--In consultation with the Secretaries 
of the military departments, the Secretary of Defense shall include in 
the plan required by subsection (a) programs of instruction for the 
School of Nursing that would lead to the award of a bachelor of science 
in nursing and such other baccalaureate or graduate degrees in nursing 
as the Secretary considers appropriate. The plan shall also address the 
enrollment as students of enlisted members and officers of the Armed 
Forces and civilians for the purpose of commissioning them as military 
nursing officers upon graduation. The graduates of such a program of 
instruction shall be fully eligible to meet credentialing and licensing 
requirements of the military departments and at least one State in 
their program of study.
    (c) Consideration of Certain Programs.--In developing the plan 
under subsection (a), the Secretary shall consider the inclusion of the 
following types of programs:
        (1) A program to enroll students who already possess an 
    associate degree in nursing so that they can earn a bachelor of 
    science in nursing.
        (2) A program to enroll students who already possess other 
    associate degrees so that they can earn a bachelor of science in 
    nursing.
        (3) A program to enroll students who already possess an 
    associate degree in nursing so that they can earn a master of 
    science in nursing.
        (4) A program to enroll students who already possess a bachelor 
    of science in nursing so that they can earn a master of science in 
    nursing.
    (d) Other Considerations.--The plan required by subsection (a) 
shall also include the following:
        (1) The results of a study of the nursing shortage in the 
    Department of Defense and the reasons for such shortages.
        (2) Details of the curriculum and degree requirements for each 
    category of students at the School of Nursing, if established.
        (3) An analysis of the contributions to overall medical 
    readiness that will be made by the School of Nursing.
        (4) Proposals for the development of the School of Nursing to 
    be phased in over a period of time.
        (5) Faculty requirements based on degree requirements and 
    numbers of projected students, to include the source and number of 
    faculty required.
        (6) Projected number of graduates per year for each of the 
    first 15 years of operation.
        (7) Predicted accession sources, military career paths, and 
    service commitments and retention rates of School of Nursing 
    graduates, to include the retention of enlisted personnel accessed 
    into the school.
        (8) Administrative and instructional facilities required, and 
    the likely initial and final location of clinical training 
    institutions.
        (9) Plan for accreditation by a nationally recognized nursing 
    school accrediting body.
        (10) Projected faculty, administration, instruction, and 
    facilities costs for the School of Nursing beginning in fiscal year 
    2009 and continuing through fiscal year 2024, including the cost 
    analysis of developing the School of Nursing and the cost of 
    additional administrative support for the Uniformed Services 
    University of the Health Sciences on account of the establishment 
    of the school.
    (e) Effect on Current Programs.--Notwithstanding the development of 
the plan under subsection (a), the Secretary shall ensure that graduate 
degree programs in nursing, including advanced practice nursing, 
continue.
    (f) Effect on Other Recruitment Efforts.--Nothing in this section 
shall be construed as limiting or terminating any current or future 
program related to the recruitment, accession, training, or retention 
of military nurses.
    (g) Establishment Authority.--
        (1) Establishment.--Chapter 104 of title 10, United States 
    Code, is amended by adding at the end the following new section:

``Sec. 2117. School of Nursing

    ``(a) Establishment Authorized.--The Secretary of Defense may 
establish a School of Nursing within the University. The School of 
Nursing may include a program that awards a bachelor of science in 
nursing.
    ``(b) Phased Development.--The School of Nursing may be developed 
in phases as determined appropriate by the Secretary.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of such chapter is amended by adding at the end the following new 
    item:

``2117. School of Nursing.''.

SEC. 956. INCLUSION OF COMMANDERS OF WESTERN HEMISPHERE COMBATANT 
              COMMANDS IN BOARD OF VISITORS OF WESTERN HEMISPHERE 
              INSTITUTE FOR SECURITY COOPERATION.

    Subparagraph (F) of section 2166(e)(1) of title 10, United States 
Code, is amended to read as follows:
        ``(F) The commanders of the combatant commands having 
    geographic responsibility for the Western Hemisphere, or the 
    designees of those officers.''.

SEC. 957. COMPTROLLER GENERAL ASSESSMENT OF REORGANIZATION OF THE 
              OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR POLICY.

    (a) Assessment Required.--Not later than June 1, 2008, the 
Comptroller General of the United States shall submit to the 
congressional defense committees a report containing an assessment of 
the most recent reorganization of the office of the Under Secretary of 
Defense for Policy, including an assessment with respect to the matters 
set forth in subsection (b).
    (b) Matters To Be Assessed.--The matters to be included in the 
assessment required by subsection (a) are as follows:
        (1) The manner in which the reorganization of the office 
    furthers, or will further, its stated purposes in the short-term 
    and long-term, including the manner in which the reorganization 
    enhances, or will enhance, the ability of the Department of 
    Defense--
            (A) to address current security priorities, including on-
        going military operations in Iraq, Afghanistan, and elsewhere;
            (B) to manage geopolitical defense relationships; and
            (C) to anticipate future strategic shifts in those 
        relationships.
        (2) The manner in which and the extent to which the 
    reorganization adheres to generally accepted principles of 
    effective organization, such as establishing clear goals, 
    identifying clear lines of authority and accountability, and 
    developing an effective human capital strategy.
        (3) The extent to which the Department has developed detailed 
    implementation plans for the reorganization, and the current status 
    of the implementation of all aspects of the reorganization.
        (4) The extent to which the Department has worked to mitigate 
    congressional concerns and address other challenges that have 
    arisen since the reorganization was announced.
        (5) The manner in which the Department plans to evaluate 
    progress in achieving the stated goals of the reorganization and 
    what measurements, if any, the Department has established to assess 
    the results of the reorganization.
        (6) The impact of the large increase in responsibilities for 
    the Assistant Secretary of Defense for Special Operations and Low 
    Intensity Conflict and Interdependent Capabilities under the 
    reorganization on the ability of the Assistant Secretary to carry 
    out the principal duties of the Assistant Secretary under law.
        (7) The possible decrease in attention given to special 
    operations issues resulting from the increase in responsibilities 
    for the Assistant Secretary of Defense for Special Operations and 
    Low Intensity Conflict and Interdependent Capabilities, including 
    responsibility under the reorganization for each of the following:
            (A) Strategic capabilities.
            (B) Forces transformation.
            (C) Major budget programs.
        (8) The possible diffusion of attention from counternarcotics, 
    counterproliferation, and global threat issues resulting from the 
    merging of those responsibilities under a single Deputy Assistant 
    Secretary of Defense for Counternarcotics, Counterproliferation, 
    and Global Threats.
        (9) The impact of the reorganization on counternarcotics 
    program execution.
        (10) The unique placement under the reorganization of both 
    functional and regional issue responsibilities under the Assistant 
    Secretary of Defense for Homeland Defense and Americas' Security 
    Affairs.
        (11) The differentiation between the responsibilities of the 
    Deputy Assistant Secretary of Defense for Partnership Strategy and 
    the Deputy Assistant Secretary of Defense for Coalition Affairs and 
    the relationship between such officials.

SEC. 958. REPORT ON FOREIGN LANGUAGE PROFICIENCY.

    (a) In General.--Not later than 240 days after the date of the 
enactment of this Act, and annually thereafter until the date referred 
to in subsection (d), the Secretary of Defense, in conjunction with the 
Secretary of each military department, shall submit to the 
congressional defense committees a report on the foreign language 
proficiency of the personnel of the Department of Defense.
    (b) Contents.--Each report submitted under subsection (a) shall 
include--
        (1) the number of positions, identified by each foreign 
    language and dialect, for each military department and Defense 
    Agency concerned that--
            (A) require proficiency in that foreign language or dialect 
        for the year in which the submission of the report is required;
            (B) are anticipated to require proficiency in that foreign 
        language or dialect for each of the five years following the 
        date of the submission of the report; and
            (C) are authorized in the future-years defense plan to be 
        maintained for proficiency in a foreign language or dialect;
        (2) the number of personnel for each military department and 
    Defense Agency, identified by each foreign language and dialect, 
    that are serving in a position that requires proficiency in the 
    foreign language or dialect--
            (A) to perform the primary duty of the position; and
            (B) that meet the required level of proficiency of the 
        Interagency Language Roundtable;
        (3) the number of personnel for each military department and 
    Defense Agency, identified by each foreign language and dialect, 
    that are recruited or hired as accessions to serve in a position 
    that requires proficiency in the foreign language or dialect;
        (4) the number of personnel for each military department and 
    Defense Agency, identified by each foreign language and dialect, 
    that served in a position that requires proficiency in the foreign 
    language or dialect and discontinued service during the preceding 
    calendar year;
        (5) the number of positions that require proficiency in a 
    foreign language or dialect that are fulfilled by contractors;
        (6) the percentage of work requiring linguistic skills that is 
    fulfilled by personnel of the intelligence community (as defined in 
    section 3(4) of the National Security Act of 1947 (50 U.S.C. 
    401a(4))); and
        (7) an assessment of the foreign language capacity and 
    capabilities of each military department and Defense Agency and of 
    the Department of Defense as a whole.
    (c) Non-Military Personnel.--Except as provided in paragraphs (6) 
and (7) of subsection (b), a report submitted under subsection (a) 
shall cover only members of the Armed Forces on active duty and reserve 
duty assigned to the military departments concerned or to the 
Department of Defense.
    (d) Termination of Requirement.--The duty to submit a report under 
subsection (a) shall terminate on December 31, 2013.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
          fiscal year 2008.
Sec. 1003. Authorization of additional emergency supplemental 
          appropriations for fiscal year 2007.
Sec. 1004. Modification of fiscal year 2007 general transfer authority.
Sec. 1005. Financial management transformation initiative for the 
          Defense Agencies.
Sec. 1006. Repeal of requirement for two-year budget cycle for the 
          Department of Defense.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
          forces of the United States Navy.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
          support to law enforcement agencies conducting counter-
          terrorism activities.
Sec. 1022. Expansion of authority to provide additional support for 
          counter-drug activities in certain foreign countries.
Sec. 1023. Report on counternarcotics assistance for the Government of 
          Haiti.

          Subtitle D--Miscellaneous Authorities and Limitations

Sec. 1031. Provision of Air Force support and services to foreign 
          military and state aircraft.
Sec. 1032. Department of Defense participation in Strategic Airlift 
          Capability Partnership.
Sec. 1033. Improved authority to provide rewards for assistance in 
          combating terrorism.
Sec. 1034. Support for non-Federal development and testing of material 
          for chemical agent defense.
Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related 
          parts.

                           Subtitle E--Reports

Sec. 1041. Extension and modification of report relating to hardened and 
          deeply buried targets.
Sec. 1042. Report on joint modeling and simulation activities.
Sec. 1043. Renewal of submittal of plans for prompt global strike 
          capability.
Sec. 1044. Report on workforce required to support the nuclear missions 
          of the Navy and the Department of Energy.
Sec. 1045. Comptroller General report on Defense Finance and Accounting 
          Service response to Butterbaugh v. Department of Justice.
Sec. 1046. Study on size and mix of airlift force.
Sec. 1047. Report on feasibility of establishing a domestic military 
          aviation national training center.
Sec. 1048. Limited field user evaluations for combat helmet pad 
          suspension systems.
Sec. 1049. Study on national security interagency system.
Sec. 1050. Report on solid rocket motor industrial base.
Sec. 1051. Reports on establishment of a memorial for members of the 
          Armed Forces who died in the air crash in Bakers Creek, 
          Australia, and establishment of other memorials in Arlington 
          National Cemetery.

                        Subtitle F--Other Matters

Sec. 1061. Reimbursement for National Guard support provided to Federal 
          agencies.
Sec. 1062. Congressional Commission on the Strategic Posture of the 
          United States.
Sec. 1063. Technical and clerical amendments.
Sec. 1064. Repeal of certification requirement.
Sec. 1065. Maintenance of capability for space-based nuclear detection.
Sec. 1066. Sense of Congress regarding detainees at Naval Station, 
          Guantanamo Bay, Cuba.
Sec. 1067. A report on transferring individuals detained at Naval 
          Station, Guantanamo Bay, Cuba.
Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 
          relating to use of Armed Forces in major public emergencies.
Sec. 1069. Standards required for entry to military installations in 
          United States.
Sec. 1070. Revised nuclear posture review.
Sec. 1071. Termination of Commission on the Implementation of the New 
          Strategic Posture of the United States.
Sec. 1072. Security clearances; limitations.
Sec. 1073. Improvements in the process for the issuance of security 
          clearances.
Sec. 1074. Protection of certain individuals.
Sec. 1075. Modification of authorities on Commission to Assess the 
          Threat to the United States from Electromagnetic Pulse Attack.
Sec. 1076. Sense of Congress on Small Business Innovation Research 
          Program.
Sec. 1077. Revision of proficiency flying definition.
Sec. 1078. Qualifications for public aircraft status of aircraft under 
          contract with the Armed Forces.
Sec. 1079. Communications with the Committees on Armed Services of the 
          Senate and the House of Representatives.
Sec. 1080. Retention of reimbursement for provision of reciprocal fire 
          protection services.
Sec. 1081. Pilot program on commercial fee-for-service air refueling 
          support for the Air Force.
Sec. 1082. Advisory panel on Department of Defense capabilities for 
          support of civil authorities after certain incidents.
Sec. 1083. Terrorism exception to immunity.

                     Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--
        (1) Authority.--Upon determination by the Secretary of Defense 
    that such action is necessary in the national interest, the 
    Secretary may transfer amounts of authorizations made available to 
    the Department of Defense in this division for fiscal year 2008 
    between any such authorizations for that fiscal year (or any 
    subdivisions thereof). Amounts of authorizations so transferred 
    shall be merged with and be available for the same purposes as the 
    authorization to which transferred.
        (2) Limitation.--Except as provided in paragraph (3), the total 
    amount of authorizations that the Secretary may transfer under the 
    authority of this section may not exceed $5,000,000,000.
        (3) Exception for transfers between military personnel 
    authorizations.--A transfer of funds between military personnel 
    authorizations under title IV shall not be counted toward the 
    dollar limitation in paragraph (2).
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
        (1) may only be used to provide authority for items that have a 
    higher priority than the items from which authority is transferred; 
    and
        (2) may not be used to provide authority for an item that has 
    been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2008.

    (a) Fiscal Year 2008 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2008 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
        (1) The amounts of unexpended balances, as of the end of fiscal 
    year 2007, of funds appropriated for fiscal years before fiscal 
    year 2008 for payments for those budgets.
        (2) The amount specified in subsection (c)(1).
        (3) The amount specified in subsection (c)(2).
        (4) The total amount of the contributions authorized to be made 
    under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
        (1) Of the amount provided in section 201(1), $1,031,000 for 
    the Civil Budget.
        (2) Of the amount provided in section 301(1), $362,159,000 for 
    the Military Budget.
    (d) Definitions.--For purposes of this section:
        (1) Common-funded budgets of nato.--The term ``common-funded 
    budgets of NATO'' means the Military Budget, the Security 
    Investment Program, and the Civil Budget of the North Atlantic 
    Treaty Organization (and any successor or additional account or 
    program of NATO).
        (2) Fiscal year 1998 baseline limitation.--The term ``fiscal 
    year 1998 baseline limitation'' means the maximum annual amount of 
    Department of Defense contributions for common-funded budgets of 
    NATO that is set forth as the annual limitation in section 
    3(2)(C)(ii) of the resolution of the Senate giving the advice and 
    consent of the Senate to the ratification of the Protocols to the 
    North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
    and the Czech Republic (as defined in section 4(7) of that 
    resolution), approved by the Senate on April 30, 1998.

SEC. 1003. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL 
              APPROPRIATIONS FOR FISCAL YEAR 2007.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2007 in the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364) are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization are increased by a 
supplemental appropriation or by a transfer of funds, or decreased by a 
rescission, or any thereof, pursuant to the U.S. Troop Readiness, 
Veterans' Care, Katrina Recovery, and Iraq Accountability 
Appropriations Act, 2007 (Public Law 110-28).

SEC. 1004. MODIFICATION OF FISCAL YEAR 2007 GENERAL TRANSFER AUTHORITY.

    Section 1001(a) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2371) is 
amended by adding at the end the following new paragraph:
        ``(3) Exception for certain transfers.--The following transfers 
    of funds shall be not be counted toward the limitation in paragraph 
    (2) on the amount that may be transferred under this section:
            ``(A) The transfer of funds to the Iraq Security Forces 
        Fund under reprogramming FY07-07-R PA.
            ``(B) The transfer of funds to the Joint Improvised 
        Explosive Device Defeat Fund under reprogramming FY07-11 PA.
            ``(C) The transfer of funds back from the accounts referred 
        to in subparagraphs (A) and (B) to restore the sources used in 
        the reprogrammings referred to in such subparagraphs.''.

SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR THE 
              DEFENSE AGENCIES.

    (a) Financial Management Transformation Initiative.--
        (1) In general.--The Director of the Business Transformation 
    Agency of the Department of Defense shall carry out an initiative 
    for financial management transformation in the Defense Agencies. 
    The initiative shall be known as the ``Defense Agencies 
    Initiative'' (in this section referred to as the ``Initiative'').
        (2) Scope of authority.--In carrying out the Initiative, the 
    Director of the Business Transformation Agency may require the 
    heads of the Defense Agencies to carry out actions that are within 
    the purpose and scope of the Initiative.
    (b) Purposes.--The purposes of Initiative shall be as follows:
        (1) To eliminate or replace financial management systems of the 
    Defense Agencies that are duplicative, redundant, or fail to comply 
    with the standards set forth in subsection (d).
        (2) To transform the budget, finance, and accounting operations 
    of the Defense Agencies to enable the Defense Agencies to achieve 
    accurate and reliable financial information needed to support 
    financial accountability and effective and efficient management 
    decisions.
    (c) Required Elements.--The Initiative shall include, to the 
maximum extent practicable--
        (1) the utilization of commercial, off-the-shelf technologies 
    and web-based solutions;
        (2) a standardized technical environment and an open and 
    accessible architecture; and
        (3) the implementation of common business processes, shared 
    services, and common data structures.
    (d) Standards.--In carrying out the Initiative, the Director of the 
Business Transformation Agency shall ensure that the Initiative is 
consistent with--
        (1) the requirements of the Business Enterprise Architecture 
    and Transition Plan developed pursuant to section 2222 of title 10, 
    United States Code;
        (2) the Standard Financial Information Structure of the 
    Department of Defense;
        (3) the Federal Financial Management Improvement Act of 1996 
    (and the amendments made by that Act); and
        (4) other applicable requirements of law and regulation.
    (e) Scope.--The Initiative shall be designed to provide, at a 
minimum, capabilities in the major process areas for both general fund 
and working capital fund operations of the Defense Agencies as follows:
        (1) Budget formulation.
        (2) Budget to report, including general ledger and trial 
    balance.
        (3) Procure to pay, including commitments, obligations, and 
    accounts payable.
        (4) Order to fulfill, including billing and accounts 
    receivable.
        (5) Cost accounting.
        (6) Acquire to retire (account management).
        (7) Time and attendance and employee entitlement.
        (8) Grants financial management.
    (f) Consultation.--In carrying out subsections (d) and (e), the 
Director of the Business Transformation Agency shall consult with the 
Comptroller of the Department of Defense to ensure that any financial 
management systems developed for the Defense Agencies, and any changes 
to the budget, finance, and accounting operations of the Defense 
Agencies, are consistent with the financial standards and requirements 
of the Department of Defense.
    (g) Program Control.--In carrying out the Initiative, the Director 
of the Business Transformation Agency shall establish--
        (1) a board (to be known as the ``Configuration Control 
    Board'') to manage scope and cost changes to the Initiative; and
        (2) a program management office (to be known as the ``Program 
    Management Office'') to control and enforce assumptions made in the 
    acquisition plan, the cost estimate, and the system integration 
    contract for the Initiative, as directed by the Configuration 
    Control Board.
    (h) Plan on Development and Implementation of Initiative.--Not 
later than six months after the date of the enactment of this Act, the 
Director of the Business Transformation Agency shall submit to the 
congressional defense committees a plan for the development and 
implementation of the Initiative. The plan shall provide for the 
implementation of an initial capability under the Initiative as 
follows:
        (1) In at least one Defense Agency by not later than eight 
    months after the date of the enactment of this Act.
        (2) In not less than five Defense Agencies by not later than 18 
    months after the date of the enactment of this Act.

SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE FOR THE 
              DEPARTMENT OF DEFENSE.

    Section 1405 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 99 Stat. 744; 31 U.S.C. 1105 note) is repealed.

          Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. LIMITATION ON LEASING OF VESSELS.

    Section 2401 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(h) The Secretary of a military department may make a contract 
for the lease of a vessel or for the provision of a service through use 
by a contractor of a vessel, the term of which is for a period of 
greater than two years, but less than five years, only if--
        ``(1) the Secretary has notified the Committee on Armed 
    Services and the Committee on Appropriations of the Senate and the 
    Committee on Armed Services and the Committee on Appropriations of 
    the House of Representatives of the proposed contract and included 
    in such notification--
            ``(A) a detailed description of the terms of the proposed 
        contract and a justification for entering into the proposed 
        contract rather than obtaining the capability provided for by 
        the lease, charter, or services involved through purchase of 
        the vessel;
            ``(B) a determination that entering into the proposed 
        contract as a means of obtaining the vessel is the most cost-
        effective means of obtaining such vessel; and
            ``(C) a plan for meeting the requirement provided by the 
        proposed contract upon completion of the term of the lease 
        contract; and
        ``(2) a period of 30 days of continuous session of Congress has 
    expired following the date on which notice was received by such 
    committees.''.

SEC. 1012. POLICY RELATING TO MAJOR COMBATANT VESSELS OF THE STRIKE 
              FORCES OF THE UNITED STATES NAVY.

    (a) Integrated Nuclear Power Systems.--It is the policy of the 
United States to construct the major combatant vessels of the strike 
forces of the United States Navy, including all new classes of such 
vessels, with integrated nuclear power systems.
    (b) Requirement To Request Nuclear Vessels.--If a request is 
submitted to Congress in the budget for a fiscal year for construction 
of a new class of major combatant vessel for the strike forces of the 
United States, the request shall be for such a vessel with an 
integrated nuclear power system, unless the Secretary of Defense 
submits with the request a notification to Congress that the inclusion 
of an integrated nuclear power system in such vessel is not in the 
national interest.
    (c) Definitions.--In this section:
        (1) Major combatant vessels of the strike forces of the united 
    states navy.--The term ``major combatant vessels of the strike 
    forces of the United States Navy'' means the following:
            (A) Submarines.
            (B) Aircraft carriers.
            (C) Cruisers, battleships, or other large surface 
        combatants whose primary mission includes protection of carrier 
        strike groups, expeditionary strike groups, and vessels 
        comprising a sea base.
        (2) Integrated nuclear power system.--The term ``integrated 
    nuclear power system'' means a ship engineering system that uses a 
    naval nuclear reactor as its energy source and generates sufficient 
    electric energy to provide power to the ship's electrical loads, 
    including its combat systems and propulsion motors.
        (3) Budget.--The term ``budget'' means the budget that is 
    submitted to Congress by the President under section 1105(a) of 
    title 31, United States Code.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY FOR JOINT TASK FORCES TO PROVIDE 
              SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING COUNTER-
              TERRORISM ACTIVITIES.

    Section 1022(b) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 371 note) is amended by 
striking ``and 2007'' and inserting ``through 2008''.

SEC. 1022. EXPANSION OF AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR 
              COUNTER-DRUG ACTIVITIES IN CERTAIN FOREIGN COUNTRIES.

    Subsection (b) of section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1881), as amended by section 1021(b) of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136, 117 Stat. 
1593) and section 1022(b) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 
2382), is further amended by adding at the end the following new 
paragraphs:
        ``(17) The Government of Mexico.
        ``(18) The Government of the Dominican Republic.''.

SEC. 1023. REPORT ON COUNTERNARCOTICS ASSISTANCE FOR THE GOVERNMENT OF 
              HAITI.

    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the President shall submit to Congress a report 
on counternarcotics assistance for the Government of Haiti.
    (b) Matters to Be Included.--The report required by subsection (a) 
shall include the following:
        (1) A description and assessment of the counternarcotics 
    assistance provided to the Government of Haiti by the Department of 
    Defense, the Department of State, the Department of Homeland 
    Security, and the Department of Justice.
        (2) A description and assessment of any impediments to 
    increasing counternarcotics assistance to the Government of Haiti.
        (3) An assessment of the potential for the provision of 
    counternarcotics assistance for the Government of Haiti through the 
    United Nations Stabilization Mission in Haiti.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may include a classified annex.

         Subtitle D--Miscellaneous Authorities and Limitations

SEC. 1031. PROVISION OF AIR FORCE SUPPORT AND SERVICES TO FOREIGN 
              MILITARY AND STATE AIRCRAFT.

    (a) Provision of Support and Services.--
        (1) In general.--Section 9626 of title 10, United States Code, 
    is amended to read as follows:

``Sec. 9626. Aircraft supplies and services: foreign military or other 
            state aircraft

    ``(a) Provision of Supplies and Services on Reimbursable Basis.--
(1) The Secretary of the Air Force may, under such regulations as the 
Secretary may prescribe and when in the best interests of the United 
States, provide any of the supplies or services described in paragraph 
(2) to military and other state aircraft of a foreign country, on a 
reimbursable basis without an advance of funds, if similar supplies and 
services are furnished on a like basis to military aircraft and other 
state aircraft of the United States by the foreign country concerned.
    ``(2) The supplies and services described in this paragraph are 
supplies and services as follows:
        ``(A) Routine airport services, including landing and takeoff 
    assistance, servicing aircraft with fuel, use of runways, parking 
    and servicing, and loading and unloading of baggage and cargo.
        ``(B) Miscellaneous supplies, including Air Force-owned fuel, 
    provisions, spare parts, and general stores, but not including 
    ammunition.
    ``(b) Provision of Routine Airport Services on Non-Reimbursable 
Basis.--(1) Routine airport services may be provided under this section 
at no cost to a foreign country--
        ``(A) if such services are provided by Air Force personnel and 
    equipment without direct cost to the Air Force; or
        ``(B) if such services are provided under an agreement with the 
    foreign country that provides for the reciprocal furnishing by the 
    foreign country of routine airport services, as defined in that 
    agreement, to military and other state aircraft of the United 
    States without reimbursement.
    ``(2) If routine airport services are provided under this section 
by a working-capital fund activity of the Air Force under section 2208 
of this title and such activity is not reimbursed directly for the 
costs incurred by the activity in providing such services by reason of 
paragraph (1)(B), the working-capital fund activity shall be reimbursed 
for such costs out of funds currently available to the Air Force for 
operation and maintenance.''.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 939 of such title is amended by striking the item 
    relating to section 9626 and inserting the following new item:

``9626. Aircraft supplies and services: foreign military or other state 
          aircraft.''.

    (b) Conforming Amendment.--Section 9629(3) of such title is amended 
by striking ``for aircraft of a foreign military or air attache''.

SEC. 1032. DEPARTMENT OF DEFENSE PARTICIPATION IN STRATEGIC AIRLIFT 
              CAPABILITY PARTNERSHIP.

    (a) Authority To Participate in Partnership.--
        (1) Memorandum of understanding.--The Secretary of Defense may 
    enter into a multilateral memorandum of understanding authorizing 
    the Strategic Airlift Capability Partnership to conduct activities 
    necessary to accomplish its purpose, including--
            (A) the acquisition, equipping, ownership, and operation of 
        strategic airlift aircraft; and
            (B) the acquisition or transfer of airlift and airlift-
        related services and supplies among members of the Strategic 
        Airlift Capability Partnership, or between the Partnership and 
        non-member countries or international organizations, on a 
        reimbursable basis or by replacement-in-kind or exchange of 
        airlift or airlift-related services of an equal value.
        (2) Payments.--From funds available to the Department of 
    Defense for such purpose, the Secretary of Defense may pay the 
    United States equitable share of the recurring and non-recurring 
    costs of the activities and operations of the Strategic Airlift 
    Capability Partnership, including costs associated with procurement 
    of aircraft components and spare parts, maintenance, facilities, 
    and training, and the costs of claims.
    (b) Authorities Under Partnership.--In carrying out the memorandum 
of understanding entered into under subsection (a), the Secretary of 
Defense may do the following:
        (1) Waive reimbursement of the United States for the cost of 
    the following functions performed by Department of Defense 
    personnel with respect to the Strategic Airlift Capability 
    Partnership:
            (A) Auditing.
            (B) Quality assurance.
            (C) Inspection.
            (D) Contract administration.
            (E) Acceptance testing.
            (F) Certification services.
            (G) Planning, programming, and management services.
        (2) Waive the imposition of any surcharge for administrative 
    services provided by the United States that would otherwise be 
    chargeable against the Strategic Airlift Capability Partnership.
        (3) Pay the salaries, travel, lodging, and subsistence expenses 
    of Department of Defense personnel assigned for duty to the 
    Strategic Airlift Capability Partnership without seeking 
    reimbursement or cost-sharing for such expenses.
    (c) Crediting of Receipts.--Any amount received by the United 
States in carrying out the memorandum of understanding entered into 
under subsection (a) shall be credited, as elected by the Secretary of 
Defense, to the following:
        (1) The appropriation, fund, or account used in incurring the 
    obligation for which such amount is received.
        (2) An appropriation, fund, or account currently providing 
    funds for the purposes for which such obligation was made.
    (d) Authority To Transfer Aircraft.--
        (1) Transfer authority.--The Secretary of Defense may transfer 
    one strategic airlift aircraft to the Strategic Airlift Capability 
    Partnership in accordance with the terms and conditions of the 
    memorandum of understanding entered into under subsection (a).
        (2) Report.--Not later than 30 days before the date on which 
    the Secretary transfers a strategic airlift aircraft under 
    paragraph (1), the Secretary shall submit to the congressional 
    defense committees a report on the strategic airlift aircraft to be 
    transferred, including the type of strategic airlift aircraft to be 
    transferred and the tail registration or serial number of such 
    aircraft.
    (e) Strategic Airlift Capability Partnership Defined.--In this 
section the term ``Strategic Airlift Capability Partnership'' means the 
strategic airlift capability consortium established by the United 
States and other participating countries.

SEC. 1033. IMPROVED AUTHORITY TO PROVIDE REWARDS FOR ASSISTANCE IN 
              COMBATING TERRORISM.

    (a) Increased Amounts.--Section 127b of title 10, United States 
Code, is amended--
        (1) in subsection (b), by striking ``$200,000'' and inserting 
    ``$5,000,000'';
        (2) in subsection (c)(1)(B), by striking ``$50,000'' and 
    inserting ``$1,000,000''; and
        (3) in subsection (d)(2), by striking ``$100,000'' and 
    inserting ``$2,000,000''.
    (b) Involvement of Allied Forces.--Such section is further 
amended--
        (1) in subsection (a)--
            (A) in the matter preceding paragraph (1), by inserting 
        after ``United States Government personnel'' the following: ``, 
        or government personnel of allied forces participating in a 
        combined operation with the armed forces,'';
            (B) in paragraph (1), by inserting after ``armed forces'' 
        the following: ``, or of allied forces participating in a 
        combined operation with the armed forces,''; and
            (C) in paragraph (2), by inserting after ``armed forces'' 
        the following: ``, or of allied forces participating in a 
        combined operation with the armed forces''; and
        (2) in subsection (c), by adding at the end the following:
    ``(3)(A) Subject to subparagraphs (B) and (C), an official who has 
authority delegated under paragraph (1) or (2) may use that authority, 
acting through government personnel of allied forces, to offer and make 
rewards.
    ``(B) The Secretary of Defense shall prescribe policies and 
procedures for making rewards in the manner described in subparagraph 
(A), which shall include guidance for the accountability of funds used 
for making rewards in that manner. The policies and procedures shall 
not take effect until 30 days after the date on which the Secretary 
submits the policies and procedures to the congressional defense 
committees. Rewards may not be made in the manner described in 
subparagraph (A) except under policies and procedures that have taken 
effect.
    ``(C) Rewards may not be made in the manner described in 
subparagraph (A) after September 30, 2009.
    ``(D) Not later than April 1, 2008, the Secretary of Defense shall 
submit to the congressional defense committees a report on the 
implementation of this paragraph. The report shall identify each reward 
made in the manner described in subparagraph (A) and, for each such 
reward--
        ``(i) identify the type, amount, and recipient of the reward;
        ``(ii) explain the reason for making the reward; and
        ``(iii) assess the success of the reward in advancing the 
    effort to combat terrorism.''.
    (c) Annual Report to Include Specific Information on Additional 
Authority.--Section 127b of title 10, United States Code, is further 
amended in subsection (f)(2) by adding at the end the following new 
subparagraph:
        ``(D) Information on the implementation of paragraph (3) of 
    subsection (c).''.

SEC. 1034. SUPPORT FOR NON-FEDERAL DEVELOPMENT AND TESTING OF MATERIAL 
              FOR CHEMICAL AGENT DEFENSE.

    (a) Authority to Provide Toxic Chemicals or Precursors.--
        (1) In general.--The Secretary of Defense, in coordination with 
    the heads of other elements of the Federal Government, may make 
    available, to a State, a unit of local government, or a private 
    entity incorporated in the United States, small quantities of a 
    toxic chemical or precursor for the development or testing, in the 
    United States, of material that is designed to be used for 
    protective purposes.
        (2) Terms and conditions.--Any use of the authority under 
    paragraph (1) shall be subject to such terms and conditions as the 
    Secretary considers appropriate.
    (b) Payment of Costs and Disposition of Funds.--
        (1) In general.--The Secretary shall ensure, through the 
    advance payment required by paragraph (2) and through any other 
    payments that may be required, that a recipient of toxic chemicals 
    or precursors under subsection (a) pays for all actual costs, 
    including direct and indirect costs, associated with providing the 
    toxic chemicals or precursors.
        (2) Advance payment.--In carrying out paragraph (1), the 
    Secretary shall require each recipient to make an advance payment 
    in an amount that the Secretary determines will equal all such 
    actual costs.
        (3) Credits.--A payment received under this subsection shall be 
    credited to the account that was used to cover the costs for which 
    the payment was provided. Amounts so credited shall be merged with 
    amounts in that account, and shall be available for the same 
    purposes, and subject to the same conditions and limitations, as 
    other amounts in that account.
    (c) Chemical Weapons Convention.--The Secretary shall ensure that 
toxic chemicals and precursors are made available under this section 
for uses and in quantities that comply with the Convention on the 
Prohibition of the Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction, signed at Paris on January 
13, 1993, and entered into force with respect to the United States on 
April 29, 1997.
    (d) Report.--
        (1) Not later than March 15, 2008, and each year thereafter, 
    the Secretary shall submit to Congress a report on the use of the 
    authority under subsection (a) during the previous calendar year. 
    The report shall include a description of each use of the authority 
    and specify what material was made available and to whom it was 
    made available.
        (2) Each report under paragraph (1) shall be submitted in 
    unclassified form, but may include a classified annex.
    (e) Definitions.--In this section, the terms ``precursor'', 
``protective purposes'', and ``toxic chemical'' have the meanings given 
those terms in the convention referred to in subsection (c), in 
paragraph 2, paragraph 9(b), and paragraph 1, respectively, of article 
II of that convention.

SEC. 1035. PROHIBITION ON SALE OF F-14 FIGHTER AIRCRAFT AND RELATED 
              PARTS.

    (a) Prohibition on Sale by Department of Defense.--
        (1) In general.--Except as provided in paragraph (2), the 
    Department of Defense may not sell (whether directly or indirectly) 
    any F-14 fighter aircraft, any parts unique to the F-14 fighter 
    aircraft, or any tooling or dies used in the manufacture of such 
    aircraft or parts, whether such sales occur through the Defense 
    Reutilization and Marketing Service or through another agency or 
    element of the Department.
        (2) Exception.--Paragraph (1) shall not apply with respect to 
    the sale of F-14 fighter aircraft or parts for F-14 fighter 
    aircraft to a museum or similar organization located in the United 
    States that is involved in the preservation of F-14 fighter 
    aircraft for historical purposes.
    (b) Prohibition on Export License.--No license for the export of 
any F-14 fighter aircraft, any parts unique to the F-14 fighter 
aircraft, or any tooling or dies used in the manufacture of such 
aircraft or parts may be issued by the United States Government to a 
non-United States person or entity.

                          Subtitle E--Reports

SEC. 1041. EXTENSION AND MODIFICATION OF REPORT RELATING TO HARDENED 
              AND DEEPLY BURIED TARGETS.

    Section 1032 of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2643; 10 U.S.C. 
2358 note) is amended--
        (1) in the heading, by striking ``annual report on weapons'' 
    and inserting ``report on weapons and capabilities'';
        (2) in subsection (a)--
            (A) in the heading, by striking ``Annual'';
            (B) by striking ``April 1 of each year'' and inserting 
        ``March 1, 2009, and every two years thereafter,'';
            (C) by striking ``Director of Central Intelligence'' and 
        inserting ``Director of National Intelligence'';
            (D) by striking ``the preceding fiscal year'' and inserting 
        ``the preceding two fiscal years and planned for the current 
        fiscal year and the next fiscal year''; and
            (E) by striking ``to develop weapons'' and inserting ``to 
        develop weapons and capabilities'';
        (3) in subsection (b)--
            (A) in the matter preceding paragraph (1), by striking 
        ``The report for a fiscal year'' and inserting ``A report 
        submitted'';
            (B) in paragraph (1), by striking ``were undertaken during 
        that fiscal year'' and inserting ``were or will be undertaken 
        during the four-fiscal-year period covered by the report''; and
            (C) in paragraph (2) in the matter preceding subparagraph 
        (A), by striking ``were undertaken during such fiscal year'' 
        and inserting ``were or will be undertaken during the four-
        fiscal-year period covered by the report''; and
        (4) in subsection (d), by striking ``April 1, 2007'' and 
    inserting ``March 1, 2013''.

SEC. 1042. REPORT ON JOINT MODELING AND SIMULATION ACTIVITIES.

    (a) Report Required.--Not later than December 31, 2008, the 
Secretary of Defense shall submit to the congressional defense 
committees a report that describes current and planned joint modeling 
and simulation activities within the Department of Defense.
    (b) Matters to Be Included.--The report under subsection (a) shall 
include the following:
        (1) An identification and description of how joint modeling and 
    simulation activities support the development of capabilities to 
    meet joint and service-unique military requirements and needs, in 
    areas including but not limited to joint training, experimentation, 
    systems acquisition, test and evaluation, assessment, and planning.
        (2) A description of how joint modeling and simulation 
    activities are supportive of Department-level strategies and goals.
        (3) For each appropriate element of the Department of Defense 
    and each appropriate combatant command--
            (A) An identification of modeling and simulation 
        capabilities; and
            (B) A description of plans and programs to continuously 
        introduce new modeling and simulation technologies so as to 
        enhance defense capabilities.
        (4) A description of incentives and plans to reduce or divest 
    duplicative or outdated capabilities as necessary.
        (5) Plans or activities to allow non-defense users to access 
    defense joint modeling and simulation activities, as appropriate.
        (6) Budget and resource estimates, including government and 
    contractor personnel requirements, for planned joint modeling and 
    simulation activities.
        (7) A description of the relationship and coordination between 
    and among joint modeling and simulation activities and the modeling 
    and simulation activities of elements of the Department of Defense, 
    Federal agencies, State and local governments, academia, private 
    industry, United States and international standards organizations, 
    and international partners.
        (8) Any other matters the Secretary considers appropriate.
    (c) Consultation.--The report under (a) shall be developed in 
consultation with appropriate military departments, Defense Agencies, 
combatant commands, and other defense activities.

SEC. 1043. RENEWAL OF SUBMITTAL OF PLANS FOR PROMPT GLOBAL STRIKE 
              CAPABILITY.

    Section 1032(b)(1) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1605; 10 U.S.C. 113 
note) is amended by inserting ``and each of 2007, 2008, and 2009,'' 
after ``2004, 2005, and 2006,''.

SEC. 1044. REPORT ON WORKFORCE REQUIRED TO SUPPORT THE NUCLEAR MISSIONS 
              OF THE NAVY AND THE DEPARTMENT OF ENERGY.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense and the Secretary of 
Energy shall each submit to Congress a report on the requirements for a 
workforce to support the nuclear missions of the Navy and the 
Department of Energy during the 10-year period beginning on the date of 
the report.
    (b) Elements.--Each report shall include--
        (1) a description of the projected nuclear missions of the Navy 
    and the Department of Energy during the 10-year period beginning on 
    the date of the report;
        (2) an assessment of existing knowledge retention programs 
    within the Department of Defense, the Department of Energy, the 
    national laboratories, and federally funded research facilities 
    that support the nuclear missions of the Navy and the Department of 
    Energy, and any planned changes in those programs; and
        (3) a plan to address anticipated workforce attrition, 
    retirement, and recruiting trends during that period and ensure an 
    adequate workforce in support of the nuclear missions of the Navy 
    and the Department of Energy.

SEC. 1045. COMPTROLLER GENERAL REPORT ON DEFENSE FINANCE AND ACCOUNTING 
              SERVICE RESPONSE TO BUTTERBAUGH V. DEPARTMENT OF JUSTICE.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the congressional defense committees a report setting 
forth an assessment by the Comptroller General of the response of the 
Defense Finance and Accounting Service to the decision in Butterbaugh 
v. Department of Justice (336 F.3d 1332 (2003)).
    (b) Elements.--The report required by subsection (a) shall include 
the following:
        (1) An estimate of the number of members of the reserve 
    components of the Armed Forces, both past and present, who are 
    entitled to compensation under the decision in Butterbaugh v. 
    Department of Justice.
        (2) An assessment of the current policies, procedures, and 
    timeliness of the Defense Finance and Accounting Service in 
    implementing and resolving claims under the decision in Butterbaugh 
    v. Department of Justice.
        (3) An assessment whether or not the decisions made by the 
    Defense Finance and Accounting Service in implementing the decision 
    in Butterbaugh v. Department of Justice follow a consistent pattern 
    of resolution.
        (4) An assessment of whether or not the decisions made by the 
    Defense Finance and Accounting Service in implementing the decision 
    in Butterbaugh v. Department of Justice are resolving claims by 
    providing more compensation than an individual has been able to 
    prove, under the rule of construction that laws providing benefits 
    to veterans are liberally construed in favor of the veteran.
        (5) An estimate of the total amount of compensation payable to 
    members of the reserve components of the Armed Forces, both past 
    and present, as a result of the recent decision in Hernandez v. 
    Department of the Air Force (No. 2006-3375, slip op.) that leave 
    can be reimbursed for Reserve service before 1994, when Congress 
    enacted chapter 43 of title 38, United States Code (commonly 
    referred to as the ``Uniformed Services Employment and Reemployment 
    Rights Act'').
        (6) A comparative assessment of the handling of claims by the 
    Defense Finance and Accounting Service under the decision in 
    Butterbaugh v. Department of Justice with the handling of claims by 
    other Federal agencies (selected by the Comptroller General for 
    purposes of the comparative assessment) under that decision.
        (7) A statement of the number of claims by members of the 
    reserve components of the Armed Forces under the decision in 
    Butterbaugh v. Department of Justice that have been adjudicated by 
    the Defense Finance and Accounting Service.
        (8) A statement of the number of claims by members of the 
    reserve components of the Armed Forces under the decision in 
    Butterbaugh v. Department of Justice that have been denied by the 
    Defense Finance and Accounting Service.
        (9) A comparative assessment of the average amount of time 
    required for the Defense Finance and Accounting Service to resolve 
    a claim under the decision in Butterbaugh v. Department of Justice 
    with the average amount of time required by other Federal agencies 
    (as so selected) to resolve a claim under that decision.
        (10) A comparative statement of the backlog of claims with the 
    Defense Finance and Accounting Service under the decision in 
    Butterbaugh v. Department of Justice with the backlog of claims of 
    other Federal agencies (as so selected) under that decision.
        (11) An estimate of the amount of time required for the Defense 
    Finance and Accounting Service to resolve all outstanding claims 
    under the decision in Butterbaugh v. Department of Justice.
        (12) An assessment of the reasonableness of the requirement of 
    the Defense Finance and Accounting Service for the submittal by 
    members of the reserve components of the Armed Forces of supporting 
    documentation for claims under the decision in Butterbaugh v. 
    Department of Justice.
        (13) A comparative assessment of the requirement of the Defense 
    Finance and Accounting Service for the submittal by members of the 
    reserve components of the Armed Forces of supporting documentation 
    for claims under the decision in Butterbaugh v. Department of 
    Justice with the requirement of other Federal agencies (as so 
    selected) for the submittal by such members of supporting 
    documentation for such claims.
        (14) Such recommendations for legislative action as the 
    Comptroller General considers appropriate in light of the decision 
    in Butterbaugh v. Department of Justice and the decision in 
    Hernandez v. Department of the Air Force.

SEC. 1046. STUDY ON SIZE AND MIX OF AIRLIFT FORCE.

    (a) Study Required.--The Secretary of Defense shall conduct a 
requirements-based study on alternatives for the proper size and mix of 
fixed-wing intratheater and intertheater airlift assets to meet the 
National Military Strategy for each of the following timeframes: fiscal 
year 2012, 2018, and 2024. The study shall--
        (1) focus on organic and commercially programmed airlift 
    capabilities;
        (2) analyze the full-spectrum lifecycle costs of the various 
    alternatives for organic models of each of the following aircraft: 
    C-5A/B/C/M, C-17A, KC-X, KC-10, KC-135R, C-130E/H/J, Joint Cargo 
    Aircraft; and
        (3) incorporate the augmentation capability, viability, and 
    feasibility of the Civil Reserve Air Fleet during activation stages 
    I, II, and III.
    (b) Use of Ffrdc.--The Secretary shall select, to carry out the 
study required by subsection (a), a federally funded research and 
development center that has experience and expertise in conducting 
similar studies.
    (c) Study Plan.--The study required by subsection (a) shall be 
carried out under a study plan. The study plan shall be developed as 
follows:
        (1) The center selected under subsection (b) shall develop the 
    study plan and shall, not later than 60 days after the date of 
    enactment of this Act, submit the study plan to the congressional 
    defense committees, the Secretary, and the Comptroller General of 
    the United States.
        (2) The Comptroller General shall review the study plan to 
    determine whether it is complete and objective, and whether it has 
    any flaws or weaknesses in scope or methodology, and shall, not 
    later than 30 days after receiving the study plan, submit to the 
    Secretary and the center a report that contains the results of that 
    review and provides any recommendations that the Comptroller 
    General considers appropriate for improvements to the study plan.
        (3) The center shall modify the study plan to incorporate the 
    recommendations under paragraph (2) and shall, not later than 45 
    days after receiving that report, submit to the Secretary and the 
    congressional defense committees a report on those modifications. 
    The report shall describe each modification and, if the 
    modifications do not incorporate one or more of the 
    recommendations, shall explain the reasons for not doing so.
    (d) Elements of Study Plan.--The study plan required by subsection 
(c) shall address, at minimum, the following:
        (1) A description of lift requirements and operating profiles 
    for airlift aircraft required to meet the National Military 
    Strategy, including assumptions regarding the following:
            (A) Current and future military combat and support 
        missions.
            (B) The planned force structure growth of the military 
        services.
            (C) Potential changes in lift requirements, including the 
        deployment of the Future Combat Systems by the Army.
            (D) New capability in airlift to be provided by the KC(X) 
        aircraft and the expected utilization of such capability, 
        including its use in intratheater lift.
            (E) The utilization of intertheater lift aircraft in 
        intratheater combat mission support roles.
            (F) The availability and application of Civil Reserve Air 
        Fleet assets in future military scenarios.
            (G) Air mobility requirements associated with the Global 
        Rebasing Initiative of the Department of Defense.
            (H) Air mobility requirements in support of worldwide 
        peacekeeping and humanitarian missions.
            (I) Air mobility requirements in support of homeland 
        defense and national emergencies.
            (J) The viability and capability of the Civil Reserve Air 
        Fleet to augment organic forces in both friendly and hostile 
        environments.
            (K) An assessment of the Civil Reserve Air Fleet to 
        adequately augment the organic fleet as it relates to 
        commercial inventory management restructuring in response to 
        future commercial markets, streamlining of operations, 
        efficiency measures, or downsizing of the participant.
        (2) An evaluation of the state of the current airlift fleet of 
    the Air Force, including assessments of the following:
            (A) The extent to which the increased use of airlift 
        aircraft in on-going operations is affecting the programmed 
        service life of the aircraft of that fleet.
            (B) The adequacy of the current airlift force, including 
        whether or not a minimum of 299 strategic airlift aircraft for 
        the Air Force is sufficient to support future expeditionary 
        combat and non-combat missions, as well as domestic and 
        training mission demands consistent with the requirements of 
        meeting the National Military Strategy.
            (C) The optimal mix of C-5 and C-17 aircraft for the 
        strategic airlift fleet of the Air Force, to include the 
        following:
                (i) The cost-effectiveness of modernizing various 
            iterations of the C-5A and C-5B/C aircraft fleet versus 
            procuring additional C-17 aircraft.
                (ii) The military capability, operational availability, 
            usefulness, and service life of the C-5A/B/C/M aircraft and 
            the C-17 aircraft. Such an assessment shall examine 
            appropriate metrics, such as aircraft availability rates, 
            departure rates, and mission capable rates, in each of the 
            following cases:

                    (I) Completion of the Avionics Modernization 
                Program and the Reliability Enhancement and Re-engining 
                Program.
                    (II) Partial completion of the Avionics 
                Modernization Program and the Reliability Enhancement 
                and Re-engining Program, with partial completion of 
                either such program being considered the point at which 
                the continued execution of each program is no longer 
                supported by the cost-effectiveness analysis.

                (iii) At what specific fleet inventory for each organic 
            aircraft, to include air refueling aircraft used in the 
            airlift role, would it impede the ability of Civil Reserve 
            Air Fleet participants to remain a viable augmentation 
            option.
            (D) An analysis and assessment of the lessons that may be 
        learned from the experience of the Air Force in restarting the 
        production line for the C-5 aircraft after having closed the 
        line for several years, and recommendations for the actions 
        that the Department of Defense should take to ensure that the 
        production line for the C-17 aircraft could be restarted if 
        necessary, including--
                (i) an analysis of the methods that were used and costs 
            that were incurred in closing and re-opening the production 
            line for the C-5 aircraft;
                (ii) an assessment of the methods and actions that 
            should be employed and the expected costs and risks of 
            closing and re-opening the production line for the C-17 
            aircraft in view of that experience.
        Such analysis and assessment should deal with issues such as 
        production work force, production facilities, tooling, 
        industrial base suppliers, contractor logistics support versus 
        organic maintenance, and diminished manufacturing sources.
            (E) Assessing the military capability, operational 
        availability, usefulness, service life and optimal mix of 
        intra-theater airlift aircraft, to include--
                (i) the cost-effectiveness of procuring the Joint Cargo 
            Aircraft versus procuring additional C-130J or refurbishing 
            C-130E/H platforms to meet intra-theater airlift 
            requirements of the combatant commander and component 
            commands; and
                (ii) the cost-effectiveness of procuring additional C-
            17 aircraft versus procuring additional C-130J platforms or 
            refurbishing C-130E/H platforms to meet intra-theater 
            airlift requirements of the combatant commander and 
            component commands.
        (3) Each analysis required by paragraph (2) shall include--
            (A) a description of the assumptions and sensitivity 
        analysis utilized in the study regarding aircraft performances 
        and cargo loading factors; and
            (B) a comprehensive statement of the data and assumptions 
        utilized in making the program life cycle cost estimates and a 
        comparison of cost and risk associated with the optimally mixed 
        fleet of airlift aircraft versus the program of record airlift 
        aircraft fleet.
    (e) Utilization of Other Studies.--The study required by subsection 
(a) shall build upon the results of the 2005 Mobility Capabilities 
Studies, the on-going Intra-theater Airlift Fleet Mix Analysis, the 
Intra-theater Lift Capabilities Study, the Joint Future Theater Airlift 
Capabilities Analysis, and other appropriate studies and analyses, such 
as Fleet Viability Board Reports or special aircraft assessments. The 
study shall also include any testing data collected on modernization, 
recapitalization, and upgrade efforts of current organic aircraft.
    (f) Collaboration With United States Transportation Command.--In 
conducting the study required by subsection (a) and preparing the 
report required by subsection (c)(3), the center shall collaborate with 
the commander of the United States Transportation Command.
    (g) Collaboration With Cost Analysis Improvement Group.--In 
conducting the study required by subsection (a) and constructing the 
analysis required by subsection (a)(2), the center shall collaborate 
with the Cost Analysis Improvement Group of the Department of Defense.
    (h) Report.--Not later than January 10, 2009, the center selected 
under subsection (b) shall submit to the Secretary and the 
congressional defense committees a report on the study required by 
subsection (a). The report shall be submitted in unclassified form, but 
shall include a classified annex.

SEC. 1047. REPORT ON FEASIBILITY OF ESTABLISHING A DOMESTIC MILITARY 
              AVIATION NATIONAL TRAINING CENTER.

    (a) In General.--Not later than June 1, 2008, the Secretary of 
Defense shall submit to the congressional defense committees a report 
to determine the feasibility of establishing a Border State Aviation 
Training Center (BSATC) to support the current and future requirements 
of the existing RC-26 training site for counterdrug activities, located 
at the Fixed Wing Army National Guard Aviation Training Site (FWAATS), 
including the domestic reconnaissance and surveillance missions of the 
National Guard in support of local, State, and Federal law enforcement 
agencies, provided that the activities to be conducted at the BSATC 
shall not duplicate or displace any activity or program at the RC-26 
training site or the FWAATS.
    (b) Content.--The report required under subsection (a) shall--
        (1) examine the current and past requirements of RC-26 aircraft 
    in support of local, State, and Federal law enforcement and 
    determine the number of additional aircraft required to provide 
    such support for each State that borders Canada, Mexico, or the 
    Gulf of Mexico;
        (2) determine the number of military and civilian personnel 
    required to run a RC-26 domestic training center meeting the 
    requirements identified under paragraph (1);
        (3) determine the requirements and cost of locating such a 
    training center at a military installation for the purpose of 
    preempting and responding to security threats and responding to 
    crises; and
        (4) include a comprehensive review of the number and type of 
    intelligence, reconnaissance, and surveillance platforms needed for 
    the National Guard to effectively provide domestic operations and 
    civil support (including homeland defense and counterdrug) to 
    local, State, and Federal law enforcement and first responder 
    entities and how those platforms would provide additional 
    capabilities not currently available from the assets of other 
    local, State, and Federal agencies.
    (c) Consultation.--In preparing the report required under 
subsection (a), the Secretary of Defense shall consult with the 
Adjutant General of each State that borders Canada, Mexico, or the Gulf 
of Mexico, the Adjutant General of the State of West Virginia, and the 
National Guard Bureau.

SEC. 1048. LIMITED FIELD USER EVALUATIONS FOR COMBAT HELMET PAD 
              SUSPENSION SYSTEMS.

    (a) In General.--The Secretary of Defense shall carry out a limited 
field user evaluation and operational assessment of qualified combat 
helmet pad suspension systems. The evaluation and assessment shall be 
carried out using verified product representative samples from combat 
helmet pad suspension systems that are qualified as of the date of the 
enactment of this Act.
    (b) Report.--Not later than September 30, 2008, the Secretary shall 
submit to the congressional defense committees a report on the results 
of the limited field user evaluation and operational assessment.
    (c) Funding.--The limited field user evaluation and operational 
assessment required by subsection (a) shall be conducted using funds 
appropriated pursuant to an authorization of appropriations or 
otherwise made available for fiscal year 2008 for operation and 
maintenance, Army, for soldier protection and safety.

SEC. 1049. STUDY ON NATIONAL SECURITY INTERAGENCY SYSTEM.

    (a) Study Required.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Defense shall enter into an 
agreement with an independent, non-profit, non-partisan organization to 
conduct a study on the national security interagency system.
    (b) Report.--The agreement entered into under subsection (a) shall 
require the organization to submit to Congress and the President a 
report containing the results of the study conducted pursuant to such 
agreement and any recommendations for changes to the national security 
interagency system (including legislative or regulatory changes) 
identified by the organization as a result of the study.
    (c) Submittal Date.--The agreement entered into under subsection 
(a) shall require the organization to submit the report required under 
subsection (a) not later than September 1, 2008.
    (d) National Security Interagency System Defined.--In this section, 
the term ``national security interagency system'' means the structures, 
mechanisms, and processes by which the departments, agencies, and 
elements of the Federal Government that have national security missions 
coordinate and integrate their policies, capabilities, expertise, and 
activities to accomplish such missions.
    (e) Funding.--Of the amount authorized to be appropriated by 
section 301(5) for operation and maintenance for Defense-wide 
activities, not more than $3,000,000 may be available to carry out this 
section.

SEC. 1050. REPORT ON SOLID ROCKET MOTOR INDUSTRIAL BASE.

    (a) Report.--Not later than 190 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the status, capability, 
viability, and capacity of the solid rocket motor industrial base in 
the United States.
    (b) Content.--The report required under subsection (a) shall 
include the following:
        (1) An assessment of the ability to maintain the Minuteman III 
    intercontinental ballistic missile through its planned operational 
    life.
        (2) An assessment of the ability to maintain the Trident II D-5 
    submarine launched ballistic missile through its planned 
    operational life.
        (3) An assessment of the ability to maintain all other space 
    launch, missile defense, and other vehicles with solid rocket 
    motors, through their planned operational lifetimes.
        (4) An assessment of the ability to support projected future 
    requirements for vehicles with solid rocket motors to support space 
    launch, missile defense, or any range of ballistic missiles 
    determined to be necessary to meet defense needs or other 
    requirements of the United States Government.
        (5) An assessment of the required materials, the supplier base, 
    the production facilities, and the production workforce needed to 
    ensure that current and future requirements could be met.
        (6) An assessment of the adequacy of the current and projected 
    industrial base support programs to support the full range of 
    projected future requirements identified in paragraph (4).

SEC. 1051. REPORTS ON ESTABLISHMENT OF A MEMORIAL FOR MEMBERS OF THE 
              ARMED FORCES WHO DIED IN THE AIR CRASH IN BAKERS CREEK, 
              AUSTRALIA, AND ESTABLISHMENT OF OTHER MEMORIALS IN 
              ARLINGTON NATIONAL CEMETERY.

    (a) Bakers Creek Memorial.--Not later than April 1, 2008, the 
Secretary of the Army shall submit to the Committee on Armed Services 
and the Committee on Veterans' Affairs of the House of Representatives 
and the Committee on Armed Services and the Committee on Veterans' 
Affairs of the Senate a report containing a discussion of locations 
outside of Arlington National Cemetery that would serve as a suitable 
location for the establishment of a memorial to honor the memory of the 
40 members of the Armed Forces of the United States who lost their 
lives in the air crash at Bakers Creek, Australia, on June 14, 1943.
    (b) Memorials in Arlington National Cemetery.--Not later than April 
1, 2008, the Secretary of the Army shall submit to the congressional 
committees specified in subsection (a) a report containing--
        (1) recommendations to implement the results of the study 
    regarding proposals for the construction of new memorials in 
    Arlington National Cemetery that was conducted pursuant to section 
    2897 of the Ronald W. Reagan National Defense Authorization Act for 
    Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2157); and
        (2) proposed legislation, if necessary, to implement the 
    results of the study.

                       Subtitle F--Other Matters

SEC. 1061. REIMBURSEMENT FOR NATIONAL GUARD SUPPORT PROVIDED TO FEDERAL 
              AGENCIES.

    Section 377 of title 10, United States Code, is amended--
        (1) in subsection (a), by striking ``To the extent'' and 
    inserting ``Subject to subsection (c), to the extent''; and
        (2) by striking subsection (b) and inserting the following new 
    subsections:
    ``(b)(1) Subject to subsection (c), the Secretary of Defense shall 
require a Federal agency to which law enforcement support or support to 
a national special security event is provided by National Guard 
personnel performing duty under section 502(f) of title 32 to reimburse 
the Department of Defense for the costs of that support, 
notwithstanding any other provision of law. No other provision of this 
chapter shall apply to such support.
    ``(2) Any funds received by the Department of Defense under this 
subsection as reimbursement for support provided by personnel of the 
National Guard shall be credited, at the election of the Secretary of 
Defense, to the following:
        ``(A) The appropriation, fund, or account used to fund the 
    support.
        ``(B) The appropriation, fund, or account currently available 
    for reimbursement purposes.
    ``(c) An agency to which support is provided under this chapter or 
section 502(f) of title 32 is not required to reimburse the Department 
of Defense for such support if the Secretary of Defense waives 
reimbursement. The Secretary may waive the reimbursement requirement 
under this subsection if such support--
        ``(1) is provided in the normal course of military training or 
    operations; or
        ``(2) results in a benefit to the element of the Department of 
    Defense or personnel of the National Guard providing the support 
    that is substantially equivalent to that which would otherwise be 
    obtained from military operations or training.''.

SEC. 1062. CONGRESSIONAL COMMISSION ON THE STRATEGIC POSTURE OF THE 
              UNITED STATES.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Congressional Commission on the Strategic Posture of the 
United States''. The purpose of the commission is to examine and make 
recommendations with respect to the long-term strategic posture of the 
United States.
    (b) Composition.--
        (1) Membership.--The commission shall be composed of 12 members 
    appointed as follows:
            (A) Three by the chairman of the Committee on Armed 
        Services of the House of Representatives.
            (B) Three by the ranking minority member of the Committee 
        on Armed Services of the House of Representatives.
            (C) Three by the chairman of the Committee on Armed 
        Services of the Senate.
            (D) Three by the ranking minority member of the Committee 
        on Armed Services of the Senate.
        (2) Chairman; vice chairman.--
            (A) Chairman.--The chairman of the Committee on Armed 
        Services of the House of Representatives and the chairman of 
        the Committee on Armed Services of the Senate shall jointly 
        designate one member of the commission to serve as chairman of 
        the commission.
            (B) Vice chairman.--The ranking minority member of the 
        Committee on Armed Services of the House of Representatives and 
        the ranking minority member of the Committee on Armed Services 
        of the Senate shall jointly designate one member of the 
        commission to serve as vice chairman of the commission.
        (3) Period of appointment; vacancies.--Members shall be 
    appointed for the life of the commission. Any vacancy in the 
    commission shall be filled in the same manner as the original 
    appointment.
    (c) Duties.--
        (1) Review.--The commission shall conduct a review of the 
    strategic posture of the United States, including a strategic 
    threat assessment and a detailed review of nuclear weapons policy, 
    strategy, and force structure.
        (2) Assessment and recommendations.--
            (A) Assessment.--The commission shall assess the benefits 
        and risks associated with the current strategic posture and 
        nuclear weapons policies of the United States.
            (B) Recommendations.--The commission shall make 
        recommendations as to the most appropriate strategic posture 
        and most effective nuclear weapons strategy.
    (d) Cooperation From Government.--
        (1) Cooperation.--In carrying out its duties, the commission 
    shall receive the full and timely cooperation of the Secretary of 
    Defense, the Secretary of Energy, the Secretary of State, the 
    Director of National Intelligence, and any other United States 
    Government official in providing the commission with analyses, 
    briefings, and other information necessary for the fulfillment of 
    its responsibilities.
        (2) Liaison.--The Secretary of Defense, the Secretary of 
    Energy, the Secretary of State, and the Director of National 
    Intelligence shall each designate at least one officer or employee 
    of the Department of Defense, the Department of Energy, the 
    Department of State, and the intelligence community, respectively, 
    to serve as a liaison officer between the department (or the 
    intelligence community, as the case may be) and the commission.
    (e) Report.--Not later than December 1, 2008, the commission shall 
submit to the President, the Secretary of Defense, the Secretary of 
Energy, the Secretary of State, the Committee on Armed Services of the 
Senate, and the Committee on Armed Services of the House of 
Representatives a report on the commission's findings, conclusions, and 
recommendations. The report shall identify the strategic posture and 
nuclear weapons strategy recommended under subsection (c)(2)(B) and 
shall include--
        (1) the military capabilities and force structure necessary to 
    support the strategy, including both nuclear and non-nuclear 
    capabilities that might support the strategy;
        (2) the number of nuclear weapons required to support the 
    strategy, including the number of replacement warheads required, if 
    any;
        (3) the appropriate qualitative analysis, including force-on-
    force exchange modeling, to calculate the effectiveness of the 
    strategy under various scenarios;
        (4) the nuclear infrastructure (that is, the size of the 
    nuclear complex) required to support the strategy;
        (5) an assessment of the role of missile defenses in the 
    strategy;
        (6) an assessment of the role of nonproliferation programs in 
    the strategy;
        (7) the political and military implications of the strategy for 
    the United States and its allies; and
        (8) any other information or recommendations relating to the 
    strategy (or to the strategic posture) that the commission 
    considers appropriate.
    (f) Funding.--Of the amounts appropriated or otherwise made 
available pursuant to this Act to the Department of Defense, $5,000,000 
is available to fund the activities of the commission.
    (g) Termination.--The commission shall terminate on June 1, 2009.

SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
        (1) Chapter 3 is amended--
            (A) by redesignating the section 127c added by section 
        1201(a) of the John Warner National Defense Authorization Act 
        for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2410) as 
        section 127d and transferring that section so as to appear 
        immediately after the section 127c added by section 1231(a) of 
        the National Defense Authorization Act for Fiscal Year 2006 
        (Public Law 109-163; 119 Stat. 3467); and
            (B) by revising the table of sections at the beginning of 
        such chapter to reflect the redesignation and transfer made by 
        paragraph (1).
        (2) Section 629(d)(1) is amended by inserting a comma after 
    ``(a)''.
        (3) Section 662(b) is amended by striking ``paragraphs (1), 
    (2), and (3) of subsection (a)'' and inserting ``paragraphs (1) and 
    (2) of subsection (a)''.
        (4) Subsections (c) and (d) of section 948r are each amended by 
    striking ``Defense Treatment Act of 2005'' each place it appears 
    and inserting ``Detainee Treatment Act of 2005''.
        (5) The table of sections at the beginning of subchapter VI of 
    chapter 47A is amended by striking the item relating to section 
    950j and inserting the following:
``950j. Finality of proceedings, findings, and sentences.''.

        (6) Section 950f(b) is amended by striking ``No person may be 
    serve'' and inserting ``No person may serve''.
        (7) The heading for section 950j is amended by striking 
    ``Finality or'' and inserting ``Finality of''.
        (8) Section 1034(b)(2) is amended by inserting ``unfavorable'' 
    before ``action'' the second place it appears.
        (9) Section 1588(d)(1)(B) is amended by striking ``the Act of 
    March 9, 1920, commonly known as the `Suits in Admiralty Act' (41 
    Stat. 525; 46 U.S.C. App. 741 et seq.) and the Act of March 3, 
    1925, commonly known as the `Public Vessels Act' (43 Stat. 1112; 46 
    U.S.C. App. 781 et seq.)'' and inserting ``chapters 309 and 311 of 
    title 46''.
        (10) The table of sections at the beginning of chapter 137 is 
    amended by striking the item relating to section 2333 and inserting 
    the following new item:

``2333. Joint policies on requirements definition, contingency program 
          management, and contingency contracting.''.

        (11) The table of sections at the beginning of chapter 141 is 
    amended by inserting a period at the end of the item relating to 
    section 2410p.
        (12) The table of sections at the beginning of chapter 152 is 
    amended by inserting a period at the end of the item relating to 
    section 2567.
        (13) Section 2583(e) is amended by striking ``Dogs'' and 
    inserting ``Animals''.
        (14) Section 2668(e) is amended by striking ``and (d)'' and 
    inserting ``and (e)''.
        (15) Section 12304(a) is amended by striking the second period 
    at the end.
        (16) Section 14310(d)(1) is amended by inserting a comma after 
    ``(a)''.
    (b) Title 37, United States Code.--Section 302c(d)(1) of title 37, 
United States Code, is amended by striking ``Services Corps'' and 
inserting ``Service Corps''.
    (c) John Warner National Defense Authorization Act for Fiscal Year 
2007.--Effective as of October 17, 2006, and as if included therein as 
enacted, the John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109-364) is amended as follows:
        (1) Section 333(a) (120 Stat. 2151) is amended--
            (A) by striking ``Section 332(c)'' and inserting ``Section 
        332''; and
            (B) in paragraph (1), by inserting ``in subsection (c),'' 
        after ``(1)''.
        (2) Section 348(2) (120 Stat. 2159) is amended by striking ``60 
    days of'' and inserting ``60 days after''.
        (3) Section 511(a)(2)(D)(i) (120 Stat. 2182) is amended by 
    inserting a comma after ``title''.
        (4) Section 591(b)(1) (120 Stat. 2233) is amended by inserting 
    a period after ``this title''.
        (5) Section 606(b)(1)(A) (120 Stat. 2246) is amended by 
    striking ``in'' and inserting ``In''.
        (6) Section 670(b) (120 Stat. 2269) is amended by striking 
    ``such title'' and inserting ``such chapter''.
        (7) Section 673 (120 Stat. 2271) is amended--
            (A) in subsection (a)(1), by inserting ``the second place 
        it appears'' before ``and inserting'';
            (B) in subsection (b)(1)--
                (i) by striking ``Section'' and inserting ``Subsection 
            (a) of section''; and
                (ii) by inserting ``the second place it appears'' 
            before ``and inserting''; and
            (C) in subsection (c)(1), by inserting ``the second place 
        it appears'' before ``and inserting''.
        (8) Section 842(a)(2) (120 Stat. 2337) is amended by striking 
    ``adding at the end'' and inserting ``inserting after the item 
    relating to section 2533a''.
        (9) Section 1017(b)(2) (120 Stat. 2379; 10 U.S.C. 2631 note) is 
    amended by striking ``section 27'' and all that follows through the 
    period at the end and inserting ``sections 12112 and 50501 and 
    chapter 551 of title 46, United States Code.''.
        (10) Section 1071(f) (120 Stat. 2402) is amended by striking 
    ``identical'' both places it appears.
        (11) Section 1231(d) (120 Stat. 2430; 22 U.S.C. 2776a(d)) is 
    amended by striking ``note''.
        (12) Section 2404(b)(2)(A)(ii) (120 Stat. 2459) is amended by 
    striking ``2906 of such Act'' and inserting ``2906A of such Act''.
        (13) Section 2831 (120 Stat. 2480) is amended--
            (A) by striking ``Section 2667(d)'' and inserting ``Section 
        2667(e)''; and
            (B) by inserting ``as redesignated by section 662(b)(1) of 
        this Act,'' after ``Code,''.
    (d) Public Law 109-366.--Effective as of October 17, 2006, and as 
if included therein as enacted, Public Law 109-366 is amended as 
follows:
        (1) Section 8(a)(3) (120 Stat. 2636) is amended by inserting a 
    semicolon after ``subsection''.
        (2) Section 9(1) (120 Stat. 2636) is amended by striking ``No. 
    1.'' and inserting ``No. 1,''.
    (e) National Defense Authorization Act for Fiscal Year 2006.--
Effective as of January 6, 2006, and as if included therein as enacted, 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163) is amended as follows:
        (1) Section 571 (119 Stat. 3270) is amended by striking ``931 
    et seq.)'' and inserting ``921 et seq.)''.
        (2) Section 1052(j) (119 Stat. 3435) is amended by striking 
    ``Section 1049'' and inserting ``Section 1409''.
    (f) Military Commissions Act of 2006.--Section 7 of the Military 
Commissions Act of 2006 (Public Law 109-366) is amended by striking 
``added by added by'' and inserting ``added by''.
    (g) National Defense Authorization Act for Fiscal Year 2004.--The 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136) is amended as follows:
        (1) Section 706(a) (117 Stat. 1529; 10 U.S.C. 1076b note) is 
    amended by striking ``those program'' and inserting ``those 
    programs''.
        (2) Section 1413(a) (117 Stat. 1665; 41 U.S.C. 433 note) is 
    amended by striking ``(A))'' and inserting ``(A)))''.
        (3) Section 1602(e)(3) (117 Stat. 1683; 10 U.S.C. 2302 note) is 
    amended by inserting ``Security'' after ``Health''.
    (h) National Defense Authorization Act for Fiscal Year 1994.--
Section 845(a) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
        (1) in paragraph (2)(A), by inserting ``Research'' after 
    ``Defense Advanced''; and
        (2) in paragraph (3), by inserting ``Research'' after ``Defense 
    Advanced''.
    (i) National Defense Authorization Act for Fiscal Year 1993.--
Section 722(a)(1) of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 10 U.S.C. 1073 note) is amended by 
striking ``155 Stat.'' and inserting ``115 Stat.''.

SEC. 1064. REPEAL OF CERTIFICATION REQUIREMENT.

    Section 1063 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3445) is repealed.

SEC. 1065. MAINTENANCE OF CAPABILITY FOR SPACE-BASED NUCLEAR DETECTION.

    The Secretary of Defense shall maintain the capability for space-
based nuclear detection at a level that meets or exceeds the level of 
capability as of the date of the enactment of this Act.

SEC. 1066. SENSE OF CONGRESS REGARDING DETAINEES AT NAVAL STATION, 
              GUANTANAMO BAY, CUBA.

    It is the sense of Congress that--
        (1) the Nation extends its gratitude to the military personnel 
    who guard and interrogate some of the world's most dangerous men 
    every day at Naval Station, Guantanamo Bay, Cuba;
        (2) the United States Government should urge the international 
    community, in general, and in particular, the home countries of the 
    detainees who remain in detention despite having been ordered 
    released by a Department of Defense administrative review board, to 
    work with the Department of Defense to facilitate and expedite the 
    repatriation of such detainees;
        (3) detainees at Guantanamo Bay, to the maximum extent 
    possible, should be charged and expeditiously prosecuted for crimes 
    committed against the United States; and
        (4) operations at Guantanamo Bay should be carried out in a way 
    that upholds the national interest and core values of the American 
    people.

SEC. 1067. A REPORT ON TRANSFERRING INDIVIDUALS DETAINED AT NAVAL 
              STATION, GUANTANAMO BAY, CUBA.

    (a) Report Required.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report that contains the Secretary's 
plan for each individual presently detained at Naval Station, 
Guantanamo Bay, Cuba, under the control of the Joint Task Force 
Guantanamo, who is or has ever been classified as an ``enemy 
combatant'' (referred to in this section as a ``detainee'').
    (b) Contents of Report.--The report required under subsection (a) 
shall include each of the following:
        (1) An identification of the number of detainees who, as of 
    December 31, 2007, the Department estimates--
            (A) will have been or will be charged with one or more 
        crimes and may, therefore, be tried before a military 
        commission;
            (B) will be subject of an order calling for the release or 
        transfer of the detainee from the Guantanamo Bay facility; or
            (C) will not have been charged with any crimes and will not 
        be subject to an order calling for the release or transfer of 
        the detainee from the Guantanamo Bay facility, but whom the 
        Department wishes to continue to detain.
        (2) A description of the actions required to be undertaken, by 
    the Secretary of Defense, possibly the heads of other Federal 
    agencies, and Congress, to ensure that detainees who are subject to 
    an order calling for their release or transfer from the Guantanamo 
    Bay facility have, in fact, been released.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form but may contain a classified annex.

SEC. 1068. REPEAL OF PROVISIONS IN SECTION 1076 OF PUBLIC LAW 109-364 
              RELATING TO USE OF ARMED FORCES IN MAJOR PUBLIC 
              EMERGENCIES.

    (a) Interference With State and Federal Laws.--
        (1) In general.--Section 333 of title 10, United States Code, 
    is amended to read as follows:

``Sec. 333. Interference with State and Federal law

    ``The President, by using the militia or the armed forces, or both, 
or by any other means, shall take such measures as he considers 
necessary to suppress, in a State, any insurrection, domestic violence, 
unlawful combination, or conspiracy, if it--
        ``(1) so hinders the execution of the laws of that State, and 
    of the United States within the State, that any part or class of 
    its people is deprived of a right, privilege, immunity, or 
    protection named in the Constitution and secured by law, and the 
    constituted authorities of that State are unable, fail, or refuse 
    to protect that right, privilege, or immunity, or to give that 
    protection; or
        ``(2) opposes or obstructs the execution of the laws of the 
    United States or impedes the course of justice under those laws.
In any situation covered by clause (1), the State shall be considered 
to have denied the equal protection of the laws secured by the 
Constitution.''.
        (2) Proclamation to disperse.--Section 334 of such title is 
    amended by striking ``or those obstructing the enforcement of the 
    laws'' after ``insurgents''.
        (3) Heading amendment.--The heading of chapter 15 of such title 
    is amended to read as follows:

                     ``CHAPTER 15--INSURRECTION''.

        (4) Clerical amendments.--
            (A) The table of sections at the beginning of chapter 15 of 
        such title is amended by striking the item relating to section 
        333 and inserting the following new item:

``333. Interference with State and Federal law.''.

            (B) The tables of chapters at the beginning of subtitle A 
        of title 10, United States Code, and at the beginning of part I 
        of such subtitle, are each amended by striking the item 
        relating to chapter 15 and inserting the following new item:

``15. Insurrection................................................331''.

    (b) Repeal of Section Relating to Provision of Supplies, Services, 
and Equipment.--
        (1) In general.--Section 2567 of title 10, United States Code, 
    is repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 152 of such title is amended by striking the item 
    relating to section 2567.
    (c) Conforming Amendment.--Section 12304(c) of such title is 
amended by striking ``Except to perform'' and all that follows through 
``this section'' and inserting ``No unit or member of a reserve 
component may be ordered to active duty under this section to perform 
any of the functions authorized by chapter 15 or section 12406 of this 
title or, except as provided in subsection (b),''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1069. STANDARDS REQUIRED FOR ENTRY TO MILITARY INSTALLATIONS IN 
              UNITED STATES.

    (a) Development of Standards.--
        (1) Access standards for visitors.--The Secretary of Defense 
    shall develop access standards applicable to all military 
    installations in the United States. The standards shall require 
    screening standards appropriate to the type of installation 
    involved, the security level, category of individuals authorized to 
    visit the installation, and level of access to be granted, 
    including--
            (A) protocols to determine the fitness of the individual to 
        enter an installation; and
            (B) standards and methods for verifying the identity of the 
        individual.
        (2) Additional criteria.--The standards required under 
    paragraph (1) may--
            (A) provide for expedited access to a military installation 
        for Department of Defense personnel and employees and family 
        members of personnel who reside on the installation;
            (B) provide for closer scrutiny of categories of 
        individuals determined by the Secretary of Defense to pose a 
        higher potential security risk; and
            (C) in the case of an installation that the Secretary 
        determines contains particularly sensitive facilities, provide 
        additional screening requirements, as well as physical and 
        other security measures for the installation.
    (b) Use of Technology.--The Secretary of Defense is encouraged to 
procure and field existing identification screening technology and to 
develop additional technology only to the extent necessary to assist 
commanders of military installations in implementing the standards 
developed under this section at points of entry for such installations.
    (c) Deadlines.--
        (1) Development and implementation.--The Secretary of Defense 
    shall develop the standards required under this section by not 
    later than July 1, 2008, and implement such standards by not later 
    than January 1, 2009.
        (2) Submission to congress.--Not later than August 1, 2009, the 
    Secretary shall submit to the Committees on Armed Services of the 
    Senate and House of Representatives the standards implemented 
    pursuant to paragraph (1).

SEC. 1070. REVISED NUCLEAR POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to clarify 
United States nuclear deterrence policy and strategy for the near term, 
the Secretary of Defense shall conduct a comprehensive review of the 
nuclear posture of the United States for the next 5 to 10 years. The 
Secretary shall conduct the review in consultation with the Secretary 
of Energy and the Secretary of State.
    (b) Elements of Review.--The nuclear posture review shall include 
the following elements:
        (1) The role of nuclear forces in United States military 
    strategy, planning, and programming.
        (2) The policy requirements and objectives for the United 
    States to maintain a safe, reliable, and credible nuclear 
    deterrence posture.
        (3) The relationship among United States nuclear deterrence 
    policy, targeting strategy, and arms control objectives.
        (4) The role that missile defense capabilities and conventional 
    strike forces play in determining the role and size of nuclear 
    forces.
        (5) The levels and composition of the nuclear delivery systems 
    that will be required for implementing the United States national 
    and military strategy, including any plans for replacing or 
    modifying existing systems.
        (6) The nuclear weapons complex that will be required for 
    implementing the United States national and military strategy, 
    including any plans to modernize or modify the complex.
        (7) The active and inactive nuclear weapons stockpile that will 
    be required for implementing the United States national and 
    military strategy, including any plans for replacing or modifying 
    warheads.
    (c) Report to Congress.--The Secretary of Defense shall submit to 
Congress, in unclassified and classified forms as necessary, a report 
on the results of the nuclear posture review conducted under this 
section. The report shall be submitted concurrently with the 
quadrennial defense review required to be submitted under section 118 
of title 10, United States Code, in 2009.
    (d) Sense of Congress.--It is the sense of Congress that the 
nuclear posture review conducted under this section should be used as a 
basis for establishing future United States arms control objectives and 
negotiating positions.

SEC. 1071. TERMINATION OF COMMISSION ON THE IMPLEMENTATION OF THE NEW 
              STRATEGIC POSTURE OF THE UNITED STATES.

    Section 1051 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3431) is repealed.

SEC. 1072. SECURITY CLEARANCES; LIMITATIONS.

    (a) In General.--Title III of the Intelligence Reform and Terrorism 
Prevention Act of 2004 (50 U.S.C. 435b) is amended by adding at the end 
the following new section:

``SEC. 3002. SECURITY CLEARANCES; LIMITATIONS.

    ``(a) Definitions.--In this section:
        ``(1) Controlled substance.--The term `controlled substance' 
    has the meaning given that term in section 102 of the Controlled 
    Substances Act (21 U.S.C. 802).
        ``(2) Covered person.--The term `covered person' means--
            ``(A) an officer or employee of a Federal agency;
            ``(B) a member of the Army, Navy, Air Force, or Marine 
        Corps who is on active duty or is in an active status; and
            ``(C) an officer or employee of a contractor of a Federal 
        agency.
        ``(3) Restricted data.--The term `Restricted Data' has the 
    meaning given that term in section 11 of the Atomic Energy Act of 
    1954 (42 U.S.C. 2014).
        ``(4) Special access program.--The term `special access 
    program' has the meaning given that term in section 4.1 of 
    Executive Order No. 12958 (60 Fed. Reg. 19825).
    ``(b) Prohibition.--After January 1, 2008, the head of a Federal 
agency may not grant or renew a security clearance for a covered person 
who is an unlawful user of a controlled substance or an addict (as 
defined in section 102(1) of the Controlled Substances Act (21 U.S.C. 
802)).
    ``(c) Disqualification.--
        ``(1) In general.--After January 1, 2008, absent an express 
    written waiver granted in accordance with paragraph (2), the head 
    of a Federal agency may not grant or renew a security clearance 
    described in paragraph (3) for a covered person who--
            ``(A) has been convicted in any court of the United States 
        of a crime, was sentenced to imprisonment for a term exceeding 
        1 year, and was incarcerated as a result of that sentence for 
        not less than 1 year;
            ``(B) has been discharged or dismissed from the Armed 
        Forces under dishonorable conditions; or
            ``(C) is mentally incompetent, as determined by an 
        adjudicating authority, based on an evaluation by a duly 
        qualified mental health professional employed by, or acceptable 
        to and approved by, the United States Government and in 
        accordance with the adjudicative guidelines required by 
        subsection (d).
        ``(2) Waiver authority.--In a meritorious case, an exception to 
    the disqualification in this subsection may be authorized if there 
    are mitigating factors. Any such waiver may be authorized only in 
    accordance with--
            ``(A) standards and procedures prescribed by, or under the 
        authority of, an Executive order or other guidance issued by 
        the President; or
            ``(B) the adjudicative guidelines required by subsection 
        (d).
        ``(3) Covered security clearances.--This subsection applies to 
    security clearances that provide for access to--
            ``(A) special access programs;
            ``(B) Restricted Data; or
            ``(C) any other information commonly referred to as 
        `sensitive compartmented information'.
        ``(4) Annual report.--
            ``(A) Requirement for report.--Not later than February 1 of 
        each year, the head of a Federal agency shall submit a report 
        to the appropriate committees of Congress if such agency 
        employs or employed a person for whom a waiver was granted in 
        accordance with paragraph (2) during the preceding year. Such 
        annual report shall not reveal the identity of such person, but 
        shall include for each waiver issued the disqualifying factor 
        under paragraph (1) and the reasons for the waiver of the 
        disqualifying factor.
            ``(B) Definitions.--In this paragraph:
                ``(i) Appropriate committees of congress.--The term 
            `appropriate committees of Congress' means, with respect to 
            a report submitted under subparagraph (A) by the head of a 
            Federal agency--

                    ``(I) the congressional defense committees;
                    ``(II) the congressional intelligence committees;
                    ``(III) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(IV) the Committee on Oversight and Government 
                Reform of the House of Representatives; and
                    ``(V) each Committee of the Senate or the House of 
                Representatives with oversight authority over such 
                Federal agency.

                ``(ii) Congressional defense committees.--The term 
            `congressional defense committees' has the meaning given 
            that term in section 101(a)(16) of title 10, United States 
            Code.
                ``(iii) Congressional intelligence committees.--The 
            term `congressional intelligence committees' has the 
            meaning given that term in section 3 of the National 
            Security Act of 1947 (50 U.S.C. 401a).
    ``(d) Adjudicative Guidelines.--
        ``(1) Requirement to establish.--The President shall establish 
    adjudicative guidelines for determining eligibility for access to 
    classified information.
        ``(2) Requirements related to mental health.--The guidelines 
    required by paragraph (1) shall--
            ``(A) include procedures and standards under which a 
        covered person is determined to be mentally incompetent and 
        provide a means to appeal such a determination; and
            ``(B) require that no negative inference concerning the 
        standards in the guidelines may be raised solely on the basis 
        of seeking mental health counseling.''.
    (b) Conforming Amendments.--
        (1) Repeal.--Section 986 of title 10, United States Code, is 
    repealed.
        (2) Clerical amendment.--The table of sections at the beginning 
    of chapter 49 of such title is amended by striking the item 
    relating to section 986.
        (3) Effective date.--The amendments made by this subsection 
    shall take effect on January 1, 2008.

SEC. 1073. IMPROVEMENTS IN THE PROCESS FOR THE ISSUANCE OF SECURITY 
              CLEARANCES.

    (a) Demonstration Project.--Not later than 6 months after the date 
of the enactment of this Act, the Secretary of Defense and the Director 
of National Intelligence shall implement a demonstration project that 
applies new and innovative approaches to improve the processing of 
requests for security clearances.
    (b) Evaluation.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Defense and the Director of 
National Intelligence shall carry out an evaluation of the process for 
issuing security clearances and develop a specific plan and schedule 
for replacing such process with an improved process.
    (c) Report.--Not later than 30 days after the date of the 
completion of the evaluation required by subsection (b), the Secretary 
of Defense and the Director of National Intelligence shall submit to 
Congress a report on--
        (1) the results of the demonstration project carried out 
    pursuant to subsection (a);
        (2) the results of the evaluation carried out under subsection 
    (b); and
        (3) the recommended specific plan and schedule for replacing 
    the existing process for issuing security clearances with an 
    improved process.

SEC. 1074. PROTECTION OF CERTAIN INDIVIDUALS.

    (a) Protection for Department Leadership.--The Secretary of 
Defense, under regulations prescribed by the Secretary and in 
accordance with guidelines approved by the Secretary and the Attorney 
General, may authorize qualified members of the Armed Forces and 
qualified civilian employees of the Department of Defense to provide 
physical protection and personal security within the United States to 
the following persons who, by nature of their positions, require 
continuous security and protection:
        (1) Secretary of Defense.
        (2) Deputy Secretary of Defense.
        (3) Chairman of the Joint Chiefs of Staff.
        (4) Vice Chairman of the Joint Chiefs of Staff.
        (5) Secretaries of the military departments.
        (6) Chiefs of the Services.
        (7) Commanders of combatant commands.
    (b) Protection for Additional Personnel.--
        (1) Authority to provide.--The Secretary of Defense, under 
    regulations prescribed by the Secretary and in accordance with 
    guidelines approved by the Secretary and the Attorney General, may 
    authorize qualified members of the Armed Forces and qualified 
    civilian employees of the Department of Defense to provide physical 
    protection and personal security within the United States to 
    individuals other than individuals described in paragraphs (1) 
    through (7) of subsection (a) if the Secretary determines that such 
    protection and security are necessary because--
            (A) there is an imminent and credible threat to the safety 
        of the individual for whom protection is to be provided; or
            (B) compelling operational considerations make such 
        protection essential to the conduct of official Department of 
        Defense business.
        (2) Personnel.--Individuals authorized to receive physical 
    protection and personal security under this subsection include the 
    following:
            (A) Any official, military member, or employee of the 
        Department of Defense.
            (B) A former or retired official who faces serious and 
        credible threats arising from duties performed while employed 
        by the Department for a period of up to two years beginning on 
        the date on which the official separates from the Department.
            (C) A head of a foreign state, an official representative 
        of a foreign government, or any other distinguished foreign 
        visitor to the United States who is primarily conducting 
        official business with the Department of Defense.
            (D) Any member of the immediate family of a person 
        authorized to receive physical protection and personal security 
        under this section.
            (E) An individual who has been designated by the President, 
        and who has received the advice and consent of the Senate, to 
        serve as Secretary of Defense, but who has not yet been 
        appointed as Secretary of Defense.
        (3) Limitation on delegation.--The authority of the Secretary 
    of Defense to authorize the provision of physical protection and 
    personal security under this subsection may be delegated only to 
    the Deputy Secretary of Defense.