[United States Statutes at Large, Volume 122, 110th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

122 STAT. 3

Public Law 110-181
110th Congress

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. [NOTE: Jan. 28,
2008 -  [H.R. 4986]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress [NOTE: National Defense
Authorization Act for Fiscal Year 2008.] 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.

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122 STAT. 4

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.

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122 STAT. 5

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.

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122 STAT. 6

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.

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122 STAT. 7

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.

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122 STAT. 8

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.

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122 STAT. 9

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.

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122 STAT. 10

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.

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122 STAT. 11

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.

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122 STAT. 12

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.

[[Page 13]]
122 STAT. 13

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.

[[Page 14]]
122 STAT. 14

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.

[[Page 15]]
122 STAT. 15

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.

[[Page 16]]
122 STAT. 16

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.

[[Page 17]]
122 STAT. 17

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.

[[Page 18]]
122 STAT. 18

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.

[[Page 19]]
122 STAT. 19

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.

[[Page 20]]
122 STAT. 20

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.

[[Page 21]]
122 STAT. 21

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.

[[Page 22]]
122 STAT. 22

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.

[[Page 23]]
122 STAT. 23

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. [NOTE: 10 USC 101 note.] 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.

[[Page 24]]
122 STAT. 24

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.

[[Page 25]]
122 STAT. 25

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

[[Page 26]]
122 STAT. 26

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) [NOTE: Certification.] 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) [NOTE: Plan.] 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

[[Page 27]]
122 STAT. 27

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) [NOTE: Certification.] 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) [NOTE: Deadline.] 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;

[[Page 28]]
122 STAT. 28

(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. [NOTE: 10 USC 7291 note.] 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) [NOTE: Reports.] submit a report to the congressional
defense committees on the results of any production readiness
review; and
(2) [NOTE: Certification.] certify to the congressional
defense committees that the findings of any such review support
commencement of construction.

[[Page 29]]
122 STAT. 29

(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.

[[Page 30]]
122 STAT. 30

``(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 [NOTE: Deadline. Submissions.] 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) [NOTE: Study.] 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) [NOTE: Certification.] 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)--

[[Page 31]]
122 STAT. 31

(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 [NOTE: Effective date.] 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) [NOTE: Study.] 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 [NOTE: Effective date.] 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) [NOTE: Study.] 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 [NOTE: Effective date.] 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) [NOTE: Certification.] 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--

[[Page 32]]
122 STAT. 32

(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.

[[Page 33]]
122 STAT. 33

``(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.

[[Page 34]]
122 STAT. 34

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

[[Page 35]]
122 STAT. 35

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) [NOTE: Certification.] 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.

[[Page 36]]
122 STAT. 36

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. [NOTE: 10 USC 2521 note.] 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) [NOTE: Deadlines.] 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

[[Page 37]]
122 STAT. 37

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--

[[Page 38]]
122 STAT. 38

(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) [NOTE: Records.] 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

[[Page 39]]
122 STAT. 39

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. [NOTE: 10 USC 223 note.] 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.

[[Page 40]]
122 STAT. 40

(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 [NOTE: Deadline.] 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--

[[Page 41]]
122 STAT. 41

(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 [NOTE: Certification.]  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) [NOTE: Japan.] 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

[[Page 42]]
122 STAT. 42

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) [NOTE: Deadline.] Forty five days have elapsed
following the receipt by Congress of the report required under
subsection (c)(6).

(b) Additional Limitation.--
In [NOTE: Reports. Certification.] 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.

[[Page 43]]
122 STAT. 43

(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

[[Page 44]]
122 STAT. 44

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. [NOTE: Certification.] 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.

[[Page 45]]
122 STAT. 45

SEC. 229. [NOTE: 10 USC 2431 note.] 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. [NOTE: 10 USC 1701 note.] 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

[[Page 46]]
122 STAT. 46

(2) identify and recommend, as appropriate, resource
requirements for human systems integration activities.

(d) Designation.--The [NOTE: Deadline.] 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;

[[Page 47]]
122 STAT. 47

(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.

[[Page 48]]
122 STAT. 48

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) [NOTE: Deadline.] 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) [NOTE: 10 USC 2521 note.]  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 [NOTE: Deadline.]  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

[[Page 49]]
122 STAT. 49

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

[[Page 50]]
122 STAT. 50

``(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) [NOTE: Deadline. Reports.]  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--

[[Page 51]]
122 STAT. 51

(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. [NOTE: 10 USC 113 note.]  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.

[[Page 52]]
122 STAT. 52

(2) Limitation.--The [NOTE: Deadline.]  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.

[[Page 53]]
122 STAT. 53

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.

[[Page 54]]
122 STAT. 54

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

[[Page 55]]
122 STAT. 55

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,

[[Page 56]]
122 STAT. 56

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. [NOTE: Deadlines.]  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

[[Page 57]]
122 STAT. 57

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.

[[Page 58]]
122 STAT. 58

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

[[Page 59]]
122 STAT. 59

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) [NOTE: Regulations.]  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''.

[[Page 60]]
122 STAT. 60

(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

[[Page 61]]
122 STAT. 61

``(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) [NOTE: Inventory.]  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) [NOTE: 10 USC 2463 note.]  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 [NOTE: 10 USC 2461 note.]  343.

SEC. 325. [NOTE: 10 USC 2461 note.]  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

[[Page 62]]
122 STAT. 62

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) [NOTE: Reports. Deadline.]  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) [NOTE: Records.]  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

[[Page 63]]
122 STAT. 63

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) [NOTE: 28 USC 1491 note.]  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:

[[Page 64]]
122 STAT. 64

``SEC. 43. [NOTE: 41 USC 439.]  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

[[Page 65]]
122 STAT. 65

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) [NOTE: Regulations.]  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) [NOTE: Certification.]  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)

[[Page 66]]
122 STAT. 66

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. [NOTE: Deadline.]  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) [NOTE: 10 USC 4544 note.]  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.

[[Page 67]]
122 STAT. 67

(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. [NOTE: 10 USC 5013 note.]  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''.

[[Page 68]]
122 STAT. 68

(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.

[[Page 69]]
122 STAT. 69

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) [NOTE: 116 Stat. 2513.]  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;

[[Page 70]]
122 STAT. 70

``(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) [NOTE: 10 USC 10541 note.] Effective Date.--

[[Page 71]]
122 STAT. 71

(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) [NOTE: 10 USC 482 note.]  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

[[Page 72]]
122 STAT. 72

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) [NOTE: Termination date.]  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);

[[Page 73]]
122 STAT. 73

(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;

[[Page 74]]
122 STAT. 74

(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) [NOTE: Deadline.]  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

[[Page 75]]
122 STAT. 75

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

[[Page 76]]
122 STAT. 76

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

[[Page 77]]
122 STAT. 77

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.

[[Page 78]]
122 STAT. 78

(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

[[Page 79]]
122 STAT. 79

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. [NOTE: Establishment.]  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.

[[Page 80]]
122 STAT. 80

``(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--

[[Page 81]]
122 STAT. 81

``(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.

[[Page 82]]
122 STAT. 82

``(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) [NOTE: Applicability.]  Scope of Priority.--The increased
priority for space-available transportation required by subsection (a)
applies with respect to both--

[[Page 83]]
122 STAT. 83

``(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.

[[Page 84]]
122 STAT. 84

(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.

[[Page 85]]
122 STAT. 85

``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.

[[Page 86]]
122 STAT. 86

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.

[[Page 87]]
122 STAT. 87

(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.

[[Page 88]]
122 STAT. 88

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





[[Page 89]]
122 STAT. 89


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.

[[Page 90]]
122 STAT. 90

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.

[[Page 91]]
122 STAT. 91

(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 [NOTE: Deadline.]  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

[[Page 92]]
122 STAT. 92

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.

[[Page 93]]
122 STAT. 93

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.

[[Page 94]]
122 STAT. 94

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) [NOTE: Deadline.]  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) [NOTE: Deadline.]  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.''.

[[Page 95]]
122 STAT. 95

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) [NOTE: Deadline.]  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''.

[[Page 96]]
122 STAT. 96

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.--

[[Page 97]]
122 STAT. 97

(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 [NOTE: Regulations.]  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. [NOTE: President.] 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. [NOTE: Deadline. Reports.]
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 [NOTE: Deadline. Reports.] 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.

[[Page 98]]
122 STAT. 98

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 [NOTE: Deadline.]  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.

[[Page 99]]
122 STAT. 99

``(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. [NOTE: 10 USC 12301 note.]  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

[[Page 100]]
122 STAT. 100

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 [NOTE: Deadline.]  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. [NOTE: Reports.]  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)'';

[[Page 101]]
122 STAT. 101

(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

[[Page 102]]
122 STAT. 102

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.''.

[[Page 103]]
122 STAT. 103

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

[[Page 104]]
122 STAT. 104

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.''.

[[Page 105]]
122 STAT. 105

(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) [NOTE: 10 USC 2163 note.]  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.

[[Page 106]]
122 STAT. 106

``(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

[[Page 107]]
122 STAT. 107

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) [NOTE: 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) 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) [NOTE: 10 USC 16131a note.]  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

[[Page 108]]
122 STAT. 108

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

[[Page 109]]
122 STAT. 109

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) [NOTE: 10 USC 16162a note.]  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.

[[Page 110]]
122 STAT. 110

``(2) [NOTE: Effective date.]  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) [NOTE: Regulations.]  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) [NOTE: 10 USC 16164 note.]  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.

[[Page 111]]
122 STAT. 111

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)).

[[Page 112]]
122 STAT. 112

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. [NOTE: New York.]  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

[[Page 113]]
122 STAT. 113

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 [NOTE: Deadline. Assessment.]  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

[[Page 114]]
122 STAT. 114

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:

[[Page 115]]
122 STAT. 115

``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) [NOTE: Regulations.]  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

[[Page 116]]
122 STAT. 116

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. [NOTE: 10 USC note prec. 651.]  PROHIBITION AGAINST MEMBERS
OF THE ARMED FORCES PARTICIPATING IN CRIMINAL STREET GANGS.

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

[[Page 117]]
122 STAT. 117

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''.

[[Page 118]]
122 STAT. 118

Subtitle F--Decorations [NOTE: President.]  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

[[Page 119]]
122 STAT. 119

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).

[[Page 120]]
122 STAT. 120

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) [NOTE: Establishment.]  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

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122 STAT. 121

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.

[[Page 122]]
122 STAT. 122

``(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. [NOTE: 10 USC 10101 note.] 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

[[Page 123]]
122 STAT. 123

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) [NOTE: Designation.]  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) [NOTE: Establishment.]  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) [NOTE: Establishment.]  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

[[Page 124]]
122 STAT. 124

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

[[Page 125]]
122 STAT. 125

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.

[[Page 126]]
122 STAT. 126

(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.

[[Page 127]]
122 STAT. 127

(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

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122 STAT. 128

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

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122 STAT. 129

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,

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122 STAT. 130

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

[[Page 131]]
122 STAT. 131

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

[[Page 132]]
122 STAT. 132

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. [NOTE: Procedures. 10 USC 991 note.]  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.

[[Page 133]]
122 STAT. 133

SEC. 587. [NOTE: 10 USC 1781 note.]  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.

[[Page 134]]
122 STAT. 134

(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) [NOTE: Criteria.]  minimum education,
training, and experience criteria required to be met by
employees who provide services to eligible dependents;
(B) [NOTE: Requirements.]  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) [NOTE: Deadline.]  Period.--If the Secretary of
Defense determines to conduct demonstration projects under this
subsection, the Secretary shall commence such demonstration
projects not later

[[Page 135]]
122 STAT. 135

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. [NOTE: Deadline.]  The
Secretary shall submit the plan to the congressional defense committees
not later than July 1, 2009.

(i) Definitions.--In this section:

[[Page 136]]
122 STAT. 136

(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) [NOTE: Kaziah M. Hancock.]  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.--

[[Page 137]]
122 STAT. 137

(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.''.

[[Page 138]]
122 STAT. 138

(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) [NOTE: Regulations. 10 USC 2601 note.]  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

[[Page 139]]
122 STAT. 139

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. [NOTE: 10 USC 1168 note.]  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

[[Page 140]]
122 STAT. 140

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

[[Page 141]]
122 STAT. 141

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. [NOTE: 10 USC 113 note.]  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

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122 STAT. 142

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) [NOTE: Regulations.]  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.

[[Page 143]]
122 STAT. 143

(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.

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122 STAT. 144

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.

[[Page 145]]
122 STAT. 145

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. [NOTE: 37 USC 1009 note.]  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) [NOTE: Effective date.]  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) [NOTE: 37 USC 403 note.]  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

[[Page 146]]
122 STAT. 146

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:

[[Page 147]]
122 STAT. 147

``(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. [NOTE: 10 USC 2130a note.]  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

[[Page 148]]
122 STAT. 148

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''.

[[Page 149]]
122 STAT. 149

(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''.

[[Page 150]]
122 STAT. 150

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) [NOTE: 37 USC 301d note.]  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) [NOTE: 37 USC 302b note.]  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.

[[Page 151]]
122 STAT. 151

``(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) [NOTE: 37 USC 308b note.]  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

[[Page 152]]
122 STAT. 152

(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) [NOTE: 37 USC 312 note.]  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) [NOTE: 10 USC 2128 note.]  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.

[[Page 153]]
122 STAT. 153

SEC. 624. [NOTE: 37 USC 307a note.]  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

[[Page 154]]
122 STAT. 154

``(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) [NOTE: 37 USC 408a note.]  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.--

[[Page 155]]
122 STAT. 155

(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) [NOTE: Regulations.] 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:

[[Page 156]]
122 STAT. 156

``(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) [NOTE: Applicability. 10 USC 1413a note.]  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.

[[Page 157]]
122 STAT. 157

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) [NOTE: 10 USC 1414 note.]  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) [NOTE: 10 USC 1450 note.]  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.

[[Page 158]]
122 STAT. 158

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) [NOTE: Applicability.]  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. [NOTE: Termination date.]  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--

[[Page 159]]
122 STAT. 159

(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) [NOTE: Notification.]  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) [NOTE: Termination date. 10 USC 1477 note.]  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

[[Page 160]]
122 STAT. 160

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) [NOTE: 10 USC 1477 note.]  Regulations.--
(1) In general.--Not [NOTE: Deadline.]  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) [NOTE: Applicability. 10 USC 1402 note.]  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

[[Page 161]]
122 STAT. 161

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) [NOTE: President.]  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) [NOTE: 10 USC 12731 note.]  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.''.

[[Page 162]]
122 STAT. 162

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 [NOTE: Regulations.] 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.''.

[[Page 163]]
122 STAT. 163

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);

[[Page 164]]
122 STAT. 164

``(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

[[Page 165]]
122 STAT. 165

``(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.

[[Page 166]]
122 STAT. 166

``(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;

[[Page 167]]
122 STAT. 167

``(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--

[[Page 168]]
122 STAT. 168

``(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.

[[Page 169]]
122 STAT. 169

``(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.

[[Page 170]]
122 STAT. 170

``(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;

[[Page 171]]
122 STAT. 171

``(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.

[[Page 172]]
122 STAT. 172

``(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

[[Page 173]]
122 STAT. 173

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. [NOTE: Regulations.]  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. [NOTE: Regulations.]  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

[[Page 174]]
122 STAT. 174

``(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.

[[Page 175]]
122 STAT. 175

``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.

[[Page 176]]
122 STAT. 176

``(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

[[Page 177]]
122 STAT. 177

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.

[[Page 178]]
122 STAT. 178

``(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, [NOTE: 37 USC 354.]  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, [NOTE: 37 USC 355.]  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.

[[Page 179]]
122 STAT. 179

``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.

[[Page 180]]
122 STAT. 180

``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. [NOTE: 37 USC 801 note.]  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) [NOTE: Deadline.]  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

[[Page 181]]
122 STAT. 181

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).

[[Page 182]]
122 STAT. 182

``(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:

[[Page 183]]
122 STAT. 183

``(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.

[[Page 184]]
122 STAT. 184

``(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 [NOTE: 119 Stat.
3310.]  (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

[[Page 185]]
122 STAT. 185

``(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

[[Page 186]]
122 STAT. 186

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) [NOTE: Applicability. 8 USC 1430 note.]  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. [NOTE: 37 USC 559 note.]  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.''.

[[Page 187]]
122 STAT. 187

(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''.

[[Page 188]]
122 STAT. 188

(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) [NOTE: 10 USC 1074g note.]  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 [NOTE: Deadline.] Secretary shall so modify such
regulations not later than December 31, 2007.

SEC. 704. [NOTE: Regulations. 10 USC 1076 note.]  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--

[[Page 189]]
122 STAT. 189

(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) [NOTE: Regulations.]  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) [NOTE: Regulations.]  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) [NOTE: 10 USC 1076d note.]  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;

[[Page 190]]
122 STAT. 190

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) [NOTE: 10 USC 1092 note.]  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. [NOTE: 10 USC 1073 note.]  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.

[[Page 191]]
122 STAT. 191

(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.

[[Page 192]]
122 STAT. 192

(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.

[[Page 193]]
122 STAT. 193

(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:

[[Page 194]]
122 STAT. 194

(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

[[Page 195]]
122 STAT. 195

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.

[[Page 196]]
122 STAT. 196

(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) [NOTE: 10 USC 1073 note.]  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

[[Page 197]]
122 STAT. 197

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. [NOTE: 10 USC 221 note.]  REPORT ON FUNDING OF THE
DEPARTMENT OF DEFENSE FOR HEALTH CARE.

(a) [NOTE: President.]  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

[[Page 198]]
122 STAT. 198

(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. [NOTE: 10 USC 129c note.]  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

[[Page 199]]
122 STAT. 199

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) [NOTE: 10 USC 129c note.]  is repealed.

SEC. 722. [NOTE: 10 USC 176 note.]  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) [NOTE: President.]  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.

[[Page 200]]
122 STAT. 200

(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) [NOTE: Deadline.]  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 [NOTE: Acquisition Improvement and Accountability Act of 2007.]
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.

[[Page 201]]
122 STAT. 201

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.

[[Page 202]]
122 STAT. 202

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. [NOTE: 10 USC 101 note.]  SHORT TITLE.

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

Subtitle A--Acquisition Policy and Management

SEC. 801. [NOTE: 10 USC 2304 note.]  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

[[Page 203]]
122 STAT. 203

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 [NOTE: Deadline.]  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) [NOTE: Notification.]  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

[[Page 204]]
122 STAT. 204

(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 [NOTE: Deadline.]  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

[[Page 205]]
122 STAT. 205

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

[[Page 206]]
122 STAT. 206

order for the procurement of goods or services on behalf of the
Department of Defense.

SEC. 802. [NOTE: 10 USC 2410p note.]  LEAD SYSTEMS INTEGRATORS.

(a) [NOTE: Effective dates. Contracts.]  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

[[Page 207]]
122 STAT. 207

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) [NOTE: Deadline.]  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

[[Page 208]]
122 STAT. 208

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--

[[Page 209]]
122 STAT. 209

``(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) [NOTE: Certification.]  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

[[Page 210]]
122 STAT. 210

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) [NOTE: Determination.]  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.

[[Page 211]]
122 STAT. 211

``(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) [NOTE: Deadline. Regulations. 10 USC 2533b note.]
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) [NOTE: Deadline. 10 USC 2533b note.]  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) [NOTE: Deadlines. Reports.]  Transparency Requirement for
Commercially Available Off-the-Shelf Item Exception.--The Secretary of
Defense

[[Page 212]]
122 STAT. 212

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. [NOTE: 10 USC 2330 note. Deadline.]  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));

[[Page 213]]
122 STAT. 213

(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. [NOTE: 10 USC 221 note.]  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) [NOTE: Deadline.]  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.

[[Page 214]]
122 STAT. 214

``(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) [NOTE: Deadline. Federal Register, publication.]  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) [NOTE: Deadline.]  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

[[Page 215]]
122 STAT. 215

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) [NOTE: 10 USC 2330a note.]  Effective Date.--
(1) The amendments made by subsection (a) shall be effective
upon the date of the enactment of this Act.
(2) [NOTE: Deadline.]  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. [NOTE: 10 USC 2330 note.]  INDEPENDENT MANAGEMENT REVIEWS OF
CONTRACTS FOR SERVICES.

(a) [NOTE: Deadline.]  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;

[[Page 216]]
122 STAT. 216

(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. [NOTE: 10 USC 2326 note.]  IMPLEMENTATION AND ENFORCEMENT OF
REQUIREMENTS APPLICABLE TO UNDEFINITIZED CONTRACTUAL
ACTIONS.

(a) [NOTE: Deadline.]  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).

[[Page 217]]
122 STAT. 217

(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:

[[Page 218]]
122 STAT. 218

(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) [NOTE: Certification. Deadline.]  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.

[[Page 219]]
122 STAT. 219

``(7) [NOTE: Notification. Deadline.]  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) [NOTE: Effective date. 10 USC 2306b note.]  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;

[[Page 220]]
122 STAT. 220

``(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) [NOTE: Notification.]  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.

[[Page 221]]
122 STAT. 221

(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.

[[Page 222]]
122 STAT. 222

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--

[[Page 223]]
122 STAT. 223

``(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) [NOTE: Deadline. Regulations. 10 USC 2302 note.]  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

[[Page 224]]
122 STAT. 224

(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

[[Page 225]]
122 STAT. 225

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

[[Page 226]]
122 STAT. 226

(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. [NOTE: 10 USC 2304 note.]  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''.

[[Page 227]]
122 STAT. 227

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) [NOTE: Certification.]  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

[[Page 228]]
122 STAT. 228

subsection (b)(2) before making purchases for or on behalf of the
Department of Defense.''.
(b) [NOTE: 10 USC 2377 note.]  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) [NOTE: 10 USC 2410n note.]  Effective date.--The
amendment made by subsection (a) shall take effect 60 days after
the date of the enactment of this Act.

(b) [NOTE: 10 USC 2410n note.]  List of Products for Which Federal
Prison Industries Has Significant Market Share.--

[[Page 229]]
122 STAT. 229

(1) Initial list.--Not [NOTE: Deadline.]  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. [NOTE: 10 USC 2533a note.]  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--

[[Page 230]]
122 STAT. 230

(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 [NOTE: Deadline.]  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. [NOTE: Deadline. Reports.]  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.--

[[Page 231]]
122 STAT. 231

(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.

[[Page 232]]
122 STAT. 232

(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--

[[Page 233]]
122 STAT. 233

(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. [NOTE: Reports.] Whenever information or
assistance requested by the Commission is unreasonably refused
or not provided, the Commission shall report the circumstances
to Congress without delay.

[[Page 234]]
122 STAT. 234

(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. [NOTE: 10 USC 2302 note.]  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.--

[[Page 235]]
122 STAT. 235

(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:

[[Page 236]]
122 STAT. 236

(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;

[[Page 237]]
122 STAT. 237

``(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) [NOTE: Notification. Deadline.]  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) [NOTE: Notification.]  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) [NOTE: Effective date.]  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) [NOTE: Applicability.]  Effective dates.--
(A) [NOTE: 10 USC 2304a note.]  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.

[[Page 238]]
122 STAT. 238

(B) [NOTE: 10 USC 2304c note.]  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) [NOTE: Notification.]  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

[[Page 239]]
122 STAT. 239

``(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) [NOTE: Effective date.]  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) [NOTE: Applicability.]  Effective dates.--
(A) [NOTE: 41 USC 253h note.]  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) [NOTE: 41 USC 253j note.]  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) [NOTE: Public information. Deadline.]  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) [NOTE: Applicability.]  In the case of a procurement
permitted by subsection (c)(2), subparagraph (A) shall be applied by
substituting `30 days' for `14 days'.

``(2) [NOTE: Web site.]  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.--

[[Page 240]]
122 STAT. 240

(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) [NOTE: Public information. Deadline.]  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) [NOTE: Applicability.]  In the case of a procurement
permitted by subsection (c)(2), subparagraph (A) shall be applied by
substituting `30 days' for `14 days'.

``(2) [NOTE: Web site.]  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. [NOTE: 5 USC app. 5 note.]  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.

[[Page 241]]
122 STAT. 241

(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 [NOTE: Deadline.]  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

[[Page 242]]
122 STAT. 242

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) [NOTE: Reports. Deadline.]  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) [NOTE: Reports.]  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) [NOTE: Deadline.]  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) [NOTE: Deadlines.]  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

[[Page 243]]
122 STAT. 243

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. [NOTE: 10 USC 1701 note.]  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 [NOTE: Deadline.]  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.--

[[Page 244]]
122 STAT. 244

(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. [NOTE: Deadline.]  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--

[[Page 245]]
122 STAT. 245

(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

[[Page 246]]
122 STAT. 246

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) [NOTE: Deadlines. Reports.]  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

[[Page 247]]
122 STAT. 247

(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. [NOTE: 10 USC note prec. 1580.]  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.

[[Page 248]]
122 STAT. 248

(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) [NOTE: Deadlines.]  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:

[[Page 249]]
122 STAT. 249

``(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

[[Page 250]]
122 STAT. 250

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) [NOTE: 10 USC 1705 note.]  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) [NOTE: 41 USC 433
note.]  is amended by striking ``September 30, 2007'' and inserting
``September 30, 2012''.

[[Page 251]]
122 STAT. 251

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. [NOTE: 41 USC 433a.]  FEDERAL ACQUISITION WORKFORCE
IMPROVEMENTS.

(a) [NOTE: Designation.]  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,

[[Page 252]]
122 STAT. 252

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 [NOTE: Deadline.]  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).

[[Page 253]]
122 STAT. 253

Subtitle F--Contracts in Iraq and Afghanistan

SEC. 861. [NOTE: Deadlines. 10 USC 2302 note.]  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

[[Page 254]]
122 STAT. 254

Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
364).

(c) [NOTE: Regulations.]  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) [NOTE: Effective date.]  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. [NOTE: 10 USC 2302 note.]  CONTRACTORS PERFORMING PRIVATE
SECURITY FUNCTIONS IN AREAS OF COMBAT OPERATIONS.

(a) Regulations on Contractors Performing Private Security
Functions.--
(1) [NOTE: Deadline.]  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

[[Page 255]]
122 STAT. 255

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) [NOTE: Web site.]  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.--

[[Page 256]]
122 STAT. 256

(1) [NOTE: Deadline.]  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

[[Page 257]]
122 STAT. 257

(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) [NOTE: Deadline.]  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

[[Page 258]]
122 STAT. 258

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. [NOTE: 10 USC 2302 note.]  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. [NOTE: 10 USC 2302 note.]  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

[[Page 259]]
122 STAT. 259

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.

[[Page 260]]
122 STAT. 260

Subtitle G--Defense Materiel Readiness Board

SEC. 871. [NOTE: 10 USC 117 note.]  ESTABLISHMENT OF DEFENSE MATERIEL
READINESS BOARD.

(a) [NOTE: Deadline.]  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

[[Page 261]]
122 STAT. 261

form. To the extent necessary, the report may be accompanied by a
classified annex.

SEC. 872. [NOTE: 10 USC 117 note.]  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.

[[Page 262]]
122 STAT. 262

(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) [NOTE: Deadline.]  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. [NOTE: 10 USC 2225 note.]  CLEARINGHOUSE FOR RAPID
IDENTIFICATION AND DISSEMINATION OF COMMERCIAL INFORMATION
TECHNOLOGIES.

(a) [NOTE: Deadline.]  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).

[[Page 263]]
122 STAT. 263

(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

[[Page 264]]
122 STAT. 264

``(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) [NOTE: Regulations. Deadline. 10 USC 2260 note.]  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. [NOTE: 10 USC 2302 note.]  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. [NOTE: 10 USC 2533b note.]  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

[[Page 265]]
122 STAT. 265

manner consistent with the protection of national security information
and confidential business information--
(1) [NOTE: Web site.]  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) [NOTE: Public information.]  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. [NOTE: 10 USC 2304 note.]  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) [NOTE: Applicability.]  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.

[[Page 266]]
122 STAT. 266

SEC. 886. [NOTE: 10 USC 2302 note.]  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) [NOTE: Deadline.]  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.

[[Page 267]]
122 STAT. 267

(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.

[[Page 268]]
122 STAT. 268

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--

[[Page 269]]
122 STAT. 269

(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. [NOTE: 10 USC 2302 note. Deadline. Regulations.]  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) [NOTE: Contracts.]  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:

[[Page 270]]
122 STAT. 270

(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. [NOTE: 10 USC 2304 note.]  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) [NOTE: Applicability.]  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.

[[Page 271]]
122 STAT. 271

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.

[[Page 272]]
122 STAT. 272

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) [NOTE: 10 USC 221 note.]  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:

[[Page 273]]
122 STAT. 273

``(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) [NOTE: President.]  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) [NOTE: 10 USC 132 note.]  Assignment of duties.--

[[Page 274]]
122 STAT. 274

(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) [NOTE: 10 USC 132 note.]  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

[[Page 275]]
122 STAT. 275

to the Deputy Chief Management Officer of the Department of Defense.''.
(d) [NOTE: 10 USC note prec. 2201.]  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) [NOTE: Deadlines. Records.]  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) [NOTE: 10 USC 133 note.]  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').

[[Page 276]]
122 STAT. 276

``(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) [NOTE: Reports. Deadlines.]  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.''.

[[Page 277]]
122 STAT. 277

(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) [NOTE: 10 USC 183 note.]  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''.

[[Page 278]]
122 STAT. 278

SEC. 908. [NOTE: Establishment. Appointments.]  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) [NOTE: 10 USC 2430 note.]  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.

[[Page 279]]
122 STAT. 279

Subtitle B--Space Activities

SEC. 911. [NOTE: 10 USC 2271 note.]  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

[[Page 280]]
122 STAT. 280

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 [NOTE: Deadline.]  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--

[[Page 281]]
122 STAT. 281

``(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.''.

[[Page 282]]
122 STAT. 282

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. [NOTE: 50 USC 1521 note.]  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''.

[[Page 283]]
122 STAT. 283

(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.

[[Page 284]]
122 STAT. 284

(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.''.

[[Page 285]]
122 STAT. 285

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''.

[[Page 286]]
122 STAT. 286

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

[[Page 287]]
122 STAT. 287

``(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) [NOTE: 10 USC 118b note.]  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):

[[Page 288]]
122 STAT. 288

``(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) [NOTE: Effective date. 10 USC 181 note.]  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.

[[Page 289]]
122 STAT. 289

``(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) [NOTE: 10 USC 2366b note. Deadline.]  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) [NOTE: Applicability. 10 USC 2366b note.]  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.''.

[[Page 290]]
122 STAT. 290

(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) [NOTE: Applicability. 10 USC 222 note.]  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).''.

[[Page 291]]
122 STAT. 291

(b) [NOTE: 10 USC 118 note.]  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. [NOTE: 10 USC 111 note.]  INTERAGENCY POLICY COORDINATION.

(a) Plan Required.--Not [NOTE: Deadline.]  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

[[Page 292]]
122 STAT. 292

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

[[Page 293]]
122 STAT. 293

(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.''.


[[Page 294]]
122 STAT. 294


(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. [NOTE: 10 USC 2117 note.]  ESTABLISHMENT OF DEPARTMENT OF
DEFENSE SCHOOL OF NURSING.

(a) Establishment Plan Required.--Not [NOTE: Deadline.]  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.

[[Page 295]]
122 STAT. 295

(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.''.

[[Page 296]]
122 STAT. 296

(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 [NOTE: Deadline. Reports.]  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

[[Page 297]]
122 STAT. 297

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;

[[Page 298]]
122 STAT. 298

(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.

[[Page 299]]
122 STAT. 299

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

[[Page 300]]
122 STAT. 300

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).

[[Page 301]]
122 STAT. 301

(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. [NOTE: 10 USC 2222 note.]  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:

[[Page 302]]
122 STAT. 302

(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) [NOTE: Establishment.]  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

[[Page 303]]
122 STAT. 303

the system integration contract for the Initiative, as directed
by the Configuration Control Board.

(h) [NOTE: Deadlines.] 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) [NOTE: Notification.] 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

[[Page 304]]
122 STAT. 304

of the strike forces of the United States Navy, including all new
classes of such vessels, with integrated nuclear power systems.
(b) [NOTE: Notification.] 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.''.

[[Page 305]]
122 STAT. 305

SEC. 1023. REPORT ON COUNTERNARCOTICS ASSISTANCE FOR THE GOVERNMENT OF
HAITI.

(a) [NOTE: President.] 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

[[Page 306]]
122 STAT. 306

``(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.

[[Page 307]]
122 STAT. 307

(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

[[Page 308]]
122 STAT. 308

(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) [NOTE: Procedures. Effective date.] 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) [NOTE: Deadline. Reports.] 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

[[Page 309]]
122 STAT. 309

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.

[[Page 310]]
122 STAT. 310

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--

[[Page 311]]
122 STAT. 311

(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.

[[Page 312]]
122 STAT. 312

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

[[Page 313]]
122 STAT. 313

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) [NOTE: Deadlines.] 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

[[Page 314]]
122 STAT. 314

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

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122 STAT. 315

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

[[Page 316]]
122 STAT. 316

(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

[[Page 317]]
122 STAT. 317

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) [NOTE: Deadline.] 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.

[[Page 318]]
122 STAT. 318

(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.

[[Page 319]]
122 STAT. 319

(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. [NOTE: Waiver authority.] 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.

[[Page 320]]
122 STAT. 320

(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.

[[Page 321]]
122 STAT. 321

(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''.

[[Page 322]]
122 STAT. 322

(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) [NOTE: Effective date.] 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''.

[[Page 323]]
122 STAT. 323

(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) [NOTE: Effective date.] 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) [NOTE: Effective date.] 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 [NOTE: 120 Stat. 2635.] (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)))''.

[[Page 324]]
122 STAT. 324

(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:

[[Page 325]]
122 STAT. 325

(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. [NOTE: President.] 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.--

[[Page 326]]
122 STAT. 326

(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

[[Page 327]]
122 STAT. 327

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.

[[Page 328]]
122 STAT. 328

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--

[[Page 329]]
122 STAT. 329

``(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) [NOTE: Applicability.] 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) [NOTE: President.] 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.--

[[Page 330]]
122 STAT. 330

(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. [NOTE: Deadlines.] 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) [NOTE: Regulations.] 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) [NOTE: Regulations.] 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

[[Page 331]]
122 STAT. 331

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.
(4) Requirement for written determination.--A determination
of the Secretary of Defense to provide physical protection and
personal security under this subsection shall be in writing,
shall be based on a threat assessment by an appropriate law
enforcement, security, or intelligence organization, and shall
include the name and title of the officer, employee, or other
individual affected, the reason for such determination, the
duration of the authorized protection and security for such
officer, employee, or individual, and the nature of the
arrangements for the protection and security.
(5) Duration of protection.--
(A) Initial period of protection.--After making a
written determination under paragraph (4), the Secretary
of Defense may provide protection and security to an
individual under this subsection for an initial period
of not more than 90 calendar days.
(B) Subsequent period.--If, at the end of the period
that protection and security is provided to an
individual under subsection (A), the Secretary
determines that a condition described in subparagraph
(A) or (B) of paragraph (1) continues to exist with
respect to the individual, the Secretary may extend the
period that such protection and security is provided for
additional 60-day periods. The Secretary shall review
such a determination at the end of

[[Page 332]]
122 STAT. 332

each 60-day period to determine whether to continue to
provide such protection and security.
(C) Requirement for compliance with regulations.--
Protection and personal security provided under
subparagraph (B) shall be provided in accordance with
the regulations and guidelines referred to in paragraph
(1).
(6) Submission to congress.--
(A) [NOTE: Deadline.] In general.--The Secretary
of Defense shall submit to the congressional defense
committees each determination made under paragraph (4)
to provide protection and security to an individual and
of each determination under paragraph (5)(B) to extend
such protection and security, together with the
justification for such determination, not later than 15
days after the date on which the determination is made.
(B) Form of report.--A report submitted under
subparagraph (A) may be made in classified form.
(C) Regulations and guidelines.--The Secretary of
Defense shall submit to the congressional defense
committees the regulations and guidelines prescribed
pursuant to paragraph (1) not less than 20 days before
the date on which such regulations take effect.

(c) Definitions.--In this section:
(1) Congressional defense committees.--The term
``congressional defense committees'' means the Committee on
Appropriations and the Committee on Armed Services of the Senate
and the Committee on Appropriations and the Committee on Armed
Services of the House of Representatives.
(2) Qualified members of the armed forces and qualified
civilian employees of the department of defense.--The terms
``qualified members of the Armed Forces'' and ``qualified
civilian employees of the Department of Defense'' refer
collectively to members or employees who are assigned to
investigative, law enforcement, or security duties of any of the
following:
(A) The Army Criminal Investigation Command.
(B) The Naval Criminal Investigative Service.
(C) The Air Force Office of Special Investigations.
(D) The Defense Criminal Investigative Service.
(E) The Pentagon Force Protection Agency.

(d) Construction.--
(1) No additional law enforcement or arrest authority.--
Other than the authority to provide protection and security
under this section, nothing in this section may be construed to
bestow any additional law enforcement or arrest authority upon
the qualified members of the Armed Forces and qualified civilian
employees of the Department of Defense.
(2) Posse comitatus.--Nothing in this section shall be
construed to abridge section 1385 of title 18, United States
Code.
(3) Authorities of other departments.--Nothing in this
section may be construed to preclude or limit, in any way, the
express or implied powers of the Secretary of Defense or other
Department of Defense officials, or the duties and authorities
of the Secretary of State, the Director of the United

[[Page 333]]
122 STAT. 333

States Secret Service, the Director of the United States
Marshals Service, or any other Federal law enforcement agency.

SEC. 1075. MODIFICATION OF AUTHORITIES ON COMMISSION TO ASSESS THE
THREAT TO THE UNITED STATES FROM ELECTROMAGNETIC PULSE
ATTACK.

(a) Extension of Date of Submittal of Final Report.--Section 1403(a)
of the Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 50 U.S.C. 2301
note) is amended by striking ``June 30, 2007'' and inserting ``November
30, 2008''.
(b) Coordination of Work With Department of Homeland Security.--
Section 1404 of such Act is amended by adding at the end the following
new subsection:
``(c) Coordination With Department of Homeland Security.--The
Commission and the Secretary of Homeland Security shall jointly ensure
that the work of the Commission with respect to electromagnetic pulse
attack on electricity infrastructure, and protection against such
attack, is coordinated with Department of Homeland Security efforts on
such matters.''.
(c) Limitation on Department of Defense Funding.--The aggregate
amount of funds provided by the Department of Defense to the Commission
to Assess the Threat to the United States from Electromagnetic Pulse
Attack for purposes of the preparation and submittal of the final report
required by section 1403(a) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as amended by subsection (a)),
whether by transfer or otherwise and including funds provided the
Commission before the date of the enactment of this Act, shall not
exceed $5,600,000.

SEC. 1076. SENSE OF CONGRESS ON SMALL BUSINESS INNOVATION RESEARCH
PROGRAM.

It is the sense of Congress that--
(1) the Department of Defense's Small Business Innovation
Research program has been effective in supporting the
performance of the missions of the Department of Defense, by
stimulating technological innovation through investments in
small business research activities;
(2) the Department of Defense's Small Business Innovation
Research program has transitioned a number of technologies and
systems into operational use by warfighters; and
(3) the Department of Defense's Small Business Innovation
Research program should be reauthorized so as to ensure that the
program's activities can continue seamlessly, efficiently, and
effectively.

SEC. 1077. REVISION OF PROFICIENCY FLYING DEFINITION.

Subsection (c) of section 2245 of title 10, United States Code, is
amended to read as follows:
``(c) In this section, the term `proficiency flying' means flying
performed under competent orders by a rated or designated member of the
armed forces while serving in a non-aviation assignment or in an
assignment in which skills would normally not be maintained in the
performance of assigned duties.''.

[[Page 334]]
122 STAT. 334

SEC. 1078. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS OF AIRCRAFT UNDER
CONTRACT WITH THE ARMED FORCES.

(a) Definition of Public Aircraft.--Section 40102(a)(41)(E) of title
49, United States Code, is amended--
(1) by inserting ``or other commercial air service'' after
``transportation''; and
(2) by adding at the end the following: ``In the preceding
sentence, the term `other commercial air service' means an
aircraft operation that (i) is within the United States
territorial airspace; (ii) the Administrator of the Federal
Aviation Administration determines is available for compensation
or hire to the public, and (iii) must comply with all applicable
civil aircraft rules under title 14, Code of Federal
Regulations.''.

(b) Aircraft Operated by the Armed Forces.--Section 40125(c)(1)(C)
of such title is amended by inserting ``or other commercial air
service'' after ``transportation''.
(c) Conforming Amendments.--
(1) Section 40125(b) of such title is amended by striking
``40102(a)(37)'' and inserting ``40102(a)(41)''.
(2) Section 40125(c)(1) of such title is amended by striking
``40102(a)(37)(E)'' and inserting ``40102(a)(41)(E)''.

SEC. 1079. COMMUNICATIONS WITH THE COMMITTEES ON ARMED SERVICES OF THE
SENATE AND THE HOUSE OF REPRESENTATIVES.

(a) [NOTE: Deadline. Reports.] Requests of Committees.--The
Director of the National Counterterrorism Center, the Director of a
national intelligence center, or the head of any element of the
intelligence community shall, not later than 45 days after receiving a
written request from the Chair or ranking minority member of the
Committee on Armed Services of the Senate or the Committee on Armed
Services of the House of Representatives for any existing intelligence
assessment, report, estimate, or legal opinion relating to matters
within the jurisdiction of such Committee, make available to such
committee such assessment, report, estimate, or legal opinion, as the
case may be.

(b) [NOTE: President.] Assertion of Privilege.--
(1) In general.--In response to a request covered by
subsection (a), the Director of the National Counterterrorism
Center, the Director of a national intelligence center, or the
head of any element of the intelligence community shall provide
to the Committee making such request the document or information
covered by such request unless the President determines that
such document or information shall not be provided because the
President is asserting a privilege pursuant to the Constitution
of the United States.
(2) Submission to congress.--The White House Counsel shall
submit to Congress in writing any assertion by the President
under paragraph (1) of a privilege pursuant to the Constitution.

(c) Definitions.--In this section:
(1) Intelligence community.--The term ``intelligence
community'' has the meaning given the term in section 3(4) of
the National Security Act of 1947 (50 U.S.C. 401a(4)).
(2) Intelligence assessment.--The term ``intelligence
assessment'' means an intelligence-related analytical study of

[[Page 335]]
122 STAT. 335

a subject of policy significance and does not include building-
block papers, research projects, and reference aids.
(3) Intelligence estimate.--The term ``intelligence
estimate'' means an appraisal of available intelligence relating
to a specific situation or condition with a view to determining
the courses of action open to an enemy or potential enemy and
the probable order of adoption of such courses of action.

SEC. 1080. RETENTION OF REIMBURSEMENT FOR PROVISION OF RECIPROCAL FIRE
PROTECTION SERVICES.

Section 5 of the Act of May 27, 1955 (chapter 105; 69 Stat. 67; 42
U.S.C. 1856d) is amended--
(1) by striking ``Funds'' and inserting ``(a) Funds''; and
(2) by adding at the end the following new subsection:

``(b) Notwithstanding the provisions of subsection (a), all sums
received for any Department of Defense activity for fire protection
rendered pursuant to this Act shall be credited to the appropriation
fund or account from which the expenses were paid. Amounts so credited
shall be merged with funds in such appropriation fund or account and
shall be available for the same purposes and subject to the same
limitations as the funds with which the funds are merged.''.

SEC. 1081. PILOT PROGRAM ON COMMERCIAL FEE-FOR-SERVICE AIR REFUELING
SUPPORT FOR THE AIR FORCE.

(a) Pilot Program Required.--The Secretary of the Air Force shall
conduct, as soon as practicable after the date of the enactment of this
Act, a pilot program to assess the feasibility and advisability of
utilizing commercial fee-for-service air refueling tanker aircraft for
Air Force operations. The duration of the pilot program shall be at
least five years after commencement of the program.
(b) Purpose.--
(1) In general.--The pilot program required by subsection
(a) shall evaluate the feasibility of fee-for-service air
refueling to support, augment, or enhance the air refueling
mission of the Air Force by utilizing commercial air refueling
providers on a fee-for-service basis.
(2) Elements.--In order to achieve the purpose of the pilot
program, the Secretary of the Air Force shall--
(A) demonstrate and validate a comprehensive
strategy for air refueling on a fee-for-service basis by
evaluating all mission areas, including testing support,
training support to receiving aircraft, homeland defense
support, deployment support, air bridge support,
aeromedical evacuation, and emergency air refueling; and
(B) integrate fee-for-service air refueling
described in paragraph (1) into Air Mobility Command
operations during the evaluation and execution phases of
the pilot program.

(c) Annual Report.--The Secretary of the Air Force shall provide to
the congressional defense committees an annual report on the fee-for-
service air refueling program, which includes--
(1) information with respect to--
(A) missions flown;
(B) mission areas supported;
(C) aircraft number, type, model series supported;
(D) fuel dispensed;
(E) departure reliability rates; and

[[Page 336]]
122 STAT. 336

(F) the annual and cumulative cost to the Government
for the program, including a comparison of costs of the
same service provided by the Air Force;
(2) an assessment of the impact of outsourcing air refueling
on the Air Force's flying hour program and aircrew training; and
(3) any other data that the Secretary determines is
appropriate for evaluating the performance of the commercial air
refueling providers participating in the pilot program.

(d) Comptroller General Review.--The Comptroller General shall
submit to the congressional defense committees--
(1) an annual review of the conduct of the pilot program
under this section and any recommendations of the Comptroller
General for improving the program; and
(2) [NOTE: Deadline.] not later than 90 days after the
completion of the pilot program, a final assessment of the
results of the pilot program and the recommendations of the
Comptroller General for whether the Secretary of the Air Force
should continue to utilize fee-for-service air refueling.

SEC. 1082. ADVISORY PANEL ON DEPARTMENT OF DEFENSE CAPABILITIES FOR
SUPPORT OF CIVIL AUTHORITIES AFTER CERTAIN INCIDENTS.

(a) In General.--The Secretary of Defense shall establish an
advisory panel to carry out an assessment of the capabilities of the
Department of Defense to provide support to United States civil
authorities in the event of a chemical, biological, radiological,
nuclear, or high-yield explosive (CBRNE) incident.
(b) Panel Matters.--
(1) In general.--The advisory panel required by subsection
(a) shall consist of individuals appointed by the Secretary of
Defense (in consultation with the chairmen and ranking members
of the Committees on Armed Services of the Senate and the House
of Representatives) from among private citizens of the United
States with expertise in the legal, operational, and
organizational aspects of the management of the consequences of
a chemical, biological, radiological, nuclear, or high-yield
explosive incident.
(2) Deadline for appointment.--All members of the advisory
panel shall be appointed under this subsection not later than 30
days after the date on which the Secretary enters into the
contract required by subsection (c).
(3) [NOTE: Deadline.] Initial meeting.--The advisory panel
shall conduct its first meeting not later than 30 days after the
date that all appointments to the panel have been made under
this subsection.
(4) Procedures.--The advisory panel shall carry out its
duties under this section under procedures established under
subsection (c) by the federally funded research and development
center with which the Secretary contracts under that subsection.
Such procedures shall include procedures for the selection of a
chairman of the advisory panel from among its members.

(c) Support of Federally Funded Research and Development Center.--
(1) [NOTE: Contracts.] In general.--The Secretary of
Defense shall enter into a contract with a federally funded
research and development

[[Page 337]]
122 STAT. 337

center for the provision of support and assistance to the
advisory panel required by subsection (a) in carrying out its
duties under this section. Such support and assistance shall
include the establishment of the procedures of the advisory
panel under subsection (b)(4).
(2) Deadline for contract.--The Secretary shall enter into
the contract required by this subsection not later than 60 days
after the date of the enactment of this Act.

(d) Duties of Panel.--The advisory panel required by subsection (a)
shall--
(1) evaluate the authorities and capabilities of the
Department of Defense to conduct operations in support to United
States civil authorities in the event of a chemical, biological,
radiological, nuclear, or high-yield explosive incident,
including the authorities and capabilities of the military
departments, the Defense Agencies, the combatant commands, any
supporting commands, and the reserve components of the Armed
Forces (including the National Guard in a Federal and non-
Federal status);
(2) assess the adequacy of existing plans and programs of
the Department of Defense for training and equipping dedicated,
special, and general purposes forces for conducting operations
described in paragraph (1) across a broad spectrum of scenarios,
including current National Planning Scenarios as applicable;
(3) assess policies, directives, and plans of the Department
of Defense in support of civilian authorities in managing the
consequences of a chemical, biological, radiological, nuclear,
or high-yield explosive incident;
(4) assess the adequacy of policies and structures of the
Department of Defense for coordination with other department and
agencies of the Federal Government, especially the Department of
Homeland Security, the Department of Energy, the Department of
Justice, and the Department of Health and Human Services, in the
provision of support described in paragraph (1);
(5) assess the adequacy and currency of information
available to the Department of Defense, whether directly or
through other departments and agencies of the Federal
Government, from State and local governments in circumstances
where the Department provides support described in paragraph (1)
because State and local response capabilities are not fully
adequate for a comprehensive response;
(6) assess the equipment capabilities and needs of the
Department of Defense to provide support described in paragraph
(1);
(7) develop recommendations for modifying the capabilities,
plans, policies, equipment, and structures evaluated or assessed
under this subsection in order to improve the provision by the
Department of Defense of the support described in paragraph (1);
and
(8) assess and make recommendations on--
(A) whether there should be any additional Weapons
of Mass Destruction Civil Support Teams, beyond the 55
already authorized and, if so, how many additional Civil
Support Teams, and where they should be located; and

[[Page 338]]
122 STAT. 338

(B) what criteria and considerations are appropriate
to determine whether additional Civil Support Teams are
needed and, if so, where they should be located.

(e) Cooperation of Other Agencies.--
(1) In general.--The advisory panel required by subsection
(a) may secure directly from the Department of Defense, the
Department of Homeland Security, the Department of Energy, the
Department of Justice, the Department of Health and Human
Services, and any other department or agency of the Federal
Government information that the panel considers necessary for
the panel to carry out its duties.
(2) Cooperation.--The Secretary of Defense, the Secretary of
Homeland Secretary, the Secretary of Energy, the Attorney
General, the Secretary of Health and Human Services, and any
other official of the United States shall provide the advisory
panel with full and timely cooperation in carrying out its
duties under this section.

(f) Report.--Not later than 12 months after the date of the initial
meeting of the advisory panel required by subsection (a), the advisory
panel shall submit to the Secretary of Defense, and to the Committees on
Armed Services of the Senate and the House of Representatives, a report
on activities under this section. The report shall set forth--
(1) the findings, conclusions, and recommendations of the
advisory panel for improving the capabilities of the Department
of Defense to provide support to United States civil authorities
in the event of a chemical, biological, radiological, nuclear,
or high-yield explosive incident; and
(2) such other findings, conclusions, and recommendations
for improving the capabilities of the Department for homeland
defense as the advisory panel considers appropriate.

SEC. 1083. TERRORISM EXCEPTION TO IMMUNITY.

(a) Terrorism Exception to Immunity.--
(1) In general.--Chapter 97 of title 28, United States Code,
is amended by inserting after section 1605 the following:

``Sec. 1605A. Terrorism exception to the jurisdictional immunity of a
foreign state

``(a) In General.--
``(1) No immunity.--A foreign state shall not be immune from
the jurisdiction of courts of the United States or of the States
in any case not otherwise covered by this chapter in which money
damages are sought against a foreign state for personal injury
or death that was caused by an act of torture, extrajudicial
killing, aircraft sabotage, hostage taking, or the provision of
material support or resources for such an act if such act or
provision of material support or resources is engaged in by an
official, employee, or agent of such foreign state while acting
within the scope of his or her office, employment, or agency.
``(2) Claim heard.--The court shall hear a claim under this
section if--
``(A)(i)(I) the foreign state was designated as a
state sponsor of terrorism at the time the act described
in paragraph (1) occurred, or was so designated as a
result of such act, and, subject to subclause (II),
either remains

[[Page 339]]
122 STAT. 339

so designated when the claim is filed under this section
or was so designated within the 6-month period before
the claim is filed under this section; or
``(II) in the case of an action that is refiled
under this section by reason of section 1083(c)(2)(A) of
the National Defense Authorization Act for Fiscal Year
2008 or is filed under this section by reason of section
1083(c)(3) of that Act, the foreign state was designated
as a state sponsor of terrorism when the original action
or the related action under section 1605(a)(7) (as in
effect before the enactment of this section) or section
589 of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1997 (as contained
in section 101(c) of division A of Public Law 104-208)
was filed;
``(ii) the claimant or the victim was, at the time
the act described in paragraph (1) occurred--
``(I) a national of the United States;
``(II) a member of the armed forces; or
``(III) otherwise an employee of the
Government of the United States, or of an
individual performing a contract awarded by the
United States Government, acting within the scope
of the employee's employment; and
``(iii) in a case in which the act occurred in the
foreign state against which the claim has been brought,
the claimant has afforded the foreign state a reasonable
opportunity to arbitrate the claim in accordance with
the accepted international rules of arbitration; or
``(B) the act described in paragraph (1) is related
to Case Number 1:00CV03110 (EGS) in the United States
District Court for the District of Columbia.

``(b) Limitations.--An action may be brought or maintained under
this section if the action is commenced, or a related action was
commenced under section 1605(a)(7) (before the date of the enactment of
this section) or section 589 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1997 (as contained
in section 101(c) of division A of Public Law 104-208) not later than
the latter of--
``(1) 10 years after April 24, 1996; or
``(2) 10 years after the date on which the cause of action
arose.

``(c) Private Right of Action.--A foreign state that is or was a
state sponsor of terrorism as described in subsection (a)(2)(A)(i), and
any official, employee, or agent of that foreign state while acting
within the scope of his or her office, employment, or agency, shall be
liable to--
``(1) a national of the United States,
``(2) a member of the armed forces,
``(3) an employee of the Government of the United States, or
of an individual performing a contract awarded by the United
States Government, acting within the scope of the employee's
employment, or
``(4) the legal representative of a person described in
paragraph (1), (2), or (3),

for personal injury or death caused by acts described in subsection
(a)(1) of that foreign state, or of an official, employee, or agent of
that foreign state, for which the courts of the United States

[[Page 340]]
122 STAT. 340

may maintain jurisdiction under this section for money damages. In any
such action, damages may include economic damages, solatium, pain and
suffering, and punitive damages. In any such action, a foreign state
shall be vicariously liable for the acts of its officials, employees, or
agents.
``(d) Additional Damages.--After an action has been brought under
subsection (c), actions may also be brought for reasonably foreseeable
property loss, whether insured or uninsured, third party liability, and
loss claims under life and property insurance policies, by reason of the
same acts on which the action under subsection (c) is based.
``(e) Special Masters.--
``(1) In general.--The courts of the United States may
appoint special masters to hear damage claims brought under this
section.
``(2) Transfer of funds.--The Attorney General shall
transfer, from funds available for the program under section
1404C of the Victims of Crime Act of 1984 (42 U.S.C. 10603c), to
the Administrator of the United States district court in which
any case is pending which has been brought or maintained under
this section such funds as may be required to cover the costs of
special masters appointed under paragraph (1). Any amount paid
in compensation to any such special master shall constitute an
item of court costs.

``(f) Appeal.--In an action brought under this section, appeals from
orders not conclusively ending the litigation may only be taken pursuant
to section 1292(b) of this title.
``(g) Property Disposition.--
``(1) In general.--In every action filed in a United States
district court in which jurisdiction is alleged under this
section, the filing of a notice of pending action pursuant to
this section, to which is attached a copy of the complaint filed
in the action, shall have the effect of establishing a lien of
lis pendens upon any real property or tangible personal property
that is--
``(A) subject to attachment in aid of execution, or
execution, under section 1610;
``(B) located within that judicial district; and
``(C) titled in the name of any defendant, or titled
in the name of any entity controlled by any defendant if
such notice contains a statement listing such controlled
entity.
``(2) Notice.--A notice of pending action pursuant to this
section shall be filed by the clerk of the district court in the
same manner as any pending action and shall be indexed by
listing as defendants all named defendants and all entities
listed as controlled by any defendant.
``(3) Enforceability.--Liens established by reason of this
subsection shall be enforceable as provided in chapter 111 of
this title.

``(h) Definitions.--For purposes of this section--
``(1) the term `aircraft sabotage' has the meaning given
that term in Article 1 of the Convention for the Suppression of
Unlawful Acts Against the Safety of Civil Aviation;
``(2) the term `hostage taking' has the meaning given that
term in Article 1 of the International Convention Against the
Taking of Hostages;

[[Page 341]]
122 STAT. 341

``(3) the term `material support or resources' has the
meaning given that term in section 2339A of title 18;
``(4) the term `armed forces' has the meaning given that
term in section 101 of title 10;
``(5) the term `national of the United States' has the
meaning given that term in section 101(a)(22) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(22));
``(6) the term `state sponsor of terrorism' means a country
the government of which the Secretary of State has determined,
for purposes of section 6(j) of the Export Administration Act of
1979 (50 U.S.C. App. 2405(j)), section 620A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371), section 40 of the Arms
Export Control Act (22 U.S.C. 2780), or any other provision of
law, is a government that has repeatedly provided support for
acts of international terrorism; and
``(7) the terms `torture' and `extrajudicial killing' have
the meaning given those terms in section 3 of the Torture Victim
Protection Act of 1991 (28 U.S.C. 1350 note).''.
(2) Amendment to chapter analysis.--The table of sections at
the beginning of chapter 97 of title 28, United States Code, is
amended by inserting after the item relating to section 1605 the
following:

``1605A. Terrorism exception to the jurisdictional immunity of a foreign
state.''.

(b) Conforming Amendments.--
(1) General exception.--Section 1605 of title 28, United
States Code, is amended--
(A) in subsection (a)--
(i) in paragraph (5)(B), by inserting ``or''
after the semicolon;
(ii) in paragraph (6)(D), by striking ``; or''
and inserting a period; and
(iii) by striking paragraph (7);
(B) by repealing subsections (e) and (f); and
(C) in subsection (g)(1)(A), by striking ``but for
subsection (a)(7)'' and inserting ``but for section
1605A''.
(2) Counterclaims.--Section 1607(a) of title 28, United
States Code, is amended by inserting ``or 1605A'' after
``1605''.
(3) Property.--Section 1610 of title 28, United States Code,
is amended--
(A) in subsection (a)(7), by striking ``1605(a)(7)''
and inserting ``1605A'';
(B) in subsection (b)(2), by striking ``(5), or (7),
or 1605(b)'' and inserting ``or (5), 1605(b), or
1605A'';
(C) in subsection (f), in paragraphs (1)(A) and
(2)(A), by inserting ``(as in effect before the
enactment of section 1605A) or section 1605A'' after
``1605(a)(7)''; and
(D) by adding at the end the following:

``(g) Property in Certain Actions.--
``(1) In general.--Subject to paragraph (3), the property of
a foreign state against which a judgment is entered under
section 1605A, and the property of an agency or instrumentality
of such a state, including property that is a separate juridical
entity or is an interest held directly or indirectly in a
separate juridical entity, is subject to attachment in aid of
execution, and execution, upon that judgment as provided in this
section, regardless of--

[[Page 342]]
122 STAT. 342

``(A) the level of economic control over the
property by the government of the foreign state;
``(B) whether the profits of the property go to that
government;
``(C) the degree to which officials of that
government manage the property or otherwise control its
daily affairs;
``(D) whether that government is the sole
beneficiary in interest of the property; or
``(E) whether establishing the property as a
separate entity would entitle the foreign state to
benefits in United States courts while avoiding its
obligations.
``(2) United states sovereign immunity inapplicable.--Any
property of a foreign state, or agency or instrumentality of a
foreign state, to which paragraph (1) applies shall not be
immune from attachment in aid of execution, or execution, upon a
judgment entered under section 1605A because the property is
regulated by the United States Government by reason of action
taken against that foreign state under the Trading With the
Enemy Act or the International Emergency Economic Powers Act.
``(3) Third-party joint property holders.--Nothing in this
subsection shall be construed to supersede the authority of a
court to prevent appropriately the impairment of an interest
held by a person who is not liable in the action giving rise to
a judgment in property subject to attachment in aid of
execution, or execution, upon such judgment.''.
(4) Victims of crime act.--Section 1404C(a)(3) of the
Victims of Crime Act of 1984 (42 U.S.C. 10603c(a)(3)) is amended
by striking ``December 21, 1988 with respect to which an
investigation or'' and inserting ``October 23, 1983, with
respect to which an investigation or civil or criminal''.

(c) Application to Pending Cases.--
(1) In general.--The amendments made by this section shall
apply to any claim arising under section 1605A of title 28,
United States Code.
(2) Prior actions.--
(A) In general.--With respect to any action that--
(i) was brought under section 1605(a)(7) of
title 28, United States Code, or section 589 of
the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1997 (as
contained in section 101(c) of division A of
Public Law 104-208), before the date of the
enactment of this Act,
(ii) relied upon either such provision as
creating a cause of action,
(iii) has been adversely affected on the
grounds that either or both of these provisions
fail to create a cause of action against the
state, and
(iv) as of such date of enactment, is before
the courts in any form, including on appeal or
motion under rule 60(b) of the Federal Rules of
Civil Procedure,
that action, and any judgment in the action shall, on
motion made by plaintiffs to the United States district
court where the action was initially brought, or
judgment in the action was initially entered, be given
effect as if the action had

[[Page 343]]
122 STAT. 343

originally been filed under section 1605A(c) of title
28, United States Code.
(B) Defenses waived.--The defenses of res judicata,
collateral estoppel, and limitation period are waived--
(i) in any action with respect to which a
motion is made under subparagraph (A), or
(ii) in any action that was originally
brought, before the date of the enactment of this
Act, under section 1605(a)(7) of title 28, United
States Code, or section 589 of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 1997 (as contained in section
101(c) of division A of Public Law 104-208), and
is refiled under section 1605A(c) of title 28,
United States Code,
to the extent such defenses are based on the claim in
the action.
(C) Time limitations.--A motion may be made or an
action may be refiled under subparagraph (A) only--
(i) if the original action was commenced not
later than the latter of--
(I)  10 years after April 24, 1996;
or
(II) 10 years after the cause of
action arose; and
(ii) within the 60-day period beginning on the
date of the enactment of this Act.
(3) [NOTE: Deadline.] Related actions.--If an action
arising out of an act or incident has been timely commenced
under section 1605(a)(7) of title 28, United States Code, or
section 589 of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1997 (as contained in
section 101(c) of division A of Public Law 104-208), any other
action arising out of the same act or incident may be brought
under section 1605A of title 28, United States Code, if the
action is commenced not later than the latter of 60 days after--
(A) the date of the entry of judgment in the
original action; or
(B) the date of the enactment of this Act.
(4) Preserving the jurisdiction of the courts.--Nothing in
section 1503 of the Emergency Wartime Supplemental
Appropriations Act, 2003 (Public Law 108-11, 117 Stat. 579) has
ever authorized, directly or indirectly, the making inapplicable
of any provision of chapter 97 of title 28, United States Code,
or the removal of the jurisdiction of any court of the United
States.

(d) Applicability to Iraq.--
(1) [NOTE: President. Waiver authority.] Applicability.--
The President may waive any provision of this section with
respect to Iraq, insofar as that provision may, in the
President's determination, affect Iraq or any agency or
instrumentality thereof, if the President determines that--
(A) the waiver is in the national security interest
of the United States;
(B) the waiver will promote the reconstruction of,
the consolidation of democracy in, and the relations of
the United States with, Iraq; and
(C) Iraq continues to be a reliable ally of the
United States and partner in combating acts of
international terrorism.

[[Page 344]]
122 STAT. 344

(2) [NOTE: Applicability.] Temporal scope.--The authority
under paragraph (1) shall apply--
(A) with respect to any conduct or event occurring
before or on the date of the enactment of this Act;
(B) with respect to any conduct or event occurring
before or on the date of the exercise of that authority;
and
(C) regardless of whether, or the extent to which,
the exercise of that authority affects any action filed
before, on, or after the date of the exercise of that
authority or of the enactment of this Act.
(3) [NOTE: President.] Notification to congress.--A waiver
by the President under paragraph (1) shall cease to be effective
30 days after it is made unless the President has notified
Congress in writing of the basis for the waiver as determined by
the President under paragraph (1).
(4) Sense of congress.--It is the sense of the Congress that
the President, acting through the Secretary of State, should
work with the Government of Iraq on a state-to-state basis to
ensure compensation for any meritorious claims based on
terrorist acts committed by the Saddam Hussein regime against
individuals who were United States nationals or members of the
United States Armed Forces at the time of those terrorist acts
and whose claims cannot be addressed in courts in the United
States due to the exercise of the waiver authority under
paragraph (1).

(e) Severability.--If any provision of this section or the
amendments made by this section, or the application of such provision to
any person or circumstance, is held invalid, the remainder of this
section and such amendments, and the application of such provision to
other persons not similarly situated or to other circumstances, shall
not be affected by such invalidation.

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.

[[Page 345]]
122 STAT. 345

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.

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.

(a) Extension.--Section 1105 of the National Defense Authorization
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3450), as
amended by section 1105 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat.
2409), is amended--
(1) in subsection (a)--
(A) by striking ``and 2007'' and inserting ``, 2007,
and 2008''; and
(B) by striking ``Code).'' and inserting ``Code) or,
during 2008, a military operation (including a
contingency operation, as so defined) or an operation in
response to an emergency declared by the President.'';
and
(2) in subsection (b), by striking ``2007.'' and inserting
``2007 or 2008.''.

(b) Retroactive Effective Date.--The amendments made by subsection
(a) shall take effect as of December 31, 2007.

SEC. 1102. CONTINUATION OF LIFE INSURANCE COVERAGE FOR FEDERAL EMPLOYEES
CALLED TO ACTIVE DUTY.

Section 8706 of title 5, United States Code, is amended--
(1) by redesignating subsections (d) through (g) as
subsections (e) through (h), respectively; and
(2) by inserting after subsection (c) the following:

``(d)(1) An employee who enters on approved leave without pay in the
circumstances described in paragraph (2) may elect to have such
employee's life insurance continue (beyond the end of the 12 months of
coverage provided for under subsection (a)) for an additional 12 months
and arrange to pay currently into the Employees' Life Insurance Fund,
through such employee's employing agency, both employee and agency
contributions, from the beginning of that additional 12 months of
coverage. The employing agency shall forward the premium payments to the
Fund. If the employee does not so elect, such employee's insurance will
continue during nonpay status and stop as provided by subsection (a). An
individual making an election under this subsection may cancel that
election at any time, in which case such employee's insurance will stop
as provided by subsection (a) or upon receipt of notice of cancellation,
whichever is later.
``(2) [NOTE: Applicability.] This subsection applies in the case
of any employee who--
``(A) is a member of a reserve component of the armed forces
called or ordered to active duty under a call or order that does
not specify a period of 30 days or less; and
``(B) enters on approved leave without pay to perform active
duty pursuant to such call or order.''.

[[Page 346]]
122 STAT. 346

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.

(a) In General.--Paragraph (2) of section 5742(b) of title 5, United
States Code, is amended to read as follows:
``(2) the expense of transporting his dependents, including
expenses of packing, crating, draying, and transporting
household effects and other personal property to his former home
or such other place as is determined by the head of the agency
concerned, if--
``(A) the employee died while performing official
duties outside the continental United States or in
transit thereto or therefrom; or
``(B) in the case of an employee who was a party to
a mandatory mobility agreement that was in effect when
the employee died--
``(i) the employee died in the circumstances
described in subparagraph (A); or
``(ii)(I) the employee died as a result of
disease or injury incurred while performing
official duties--
``(aa) in an overseas location that,
at the time such employee was performing
such official duties, was within the
area of responsibility of the Commander
of the United States Central Command;
and
``(bb) in direct support of or
directly related to a military
operation, including a contingency
operation (as defined in section 101(13)
of title 10) or an operation in response
to an emergency declared by the
President; and
``(II) the employee's dependents were residing
either outside the continental United States or
within the continental United States when the
employee died; and''.

(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to deaths occurring on or after the date of the
enactment of this Act.

SEC. 1104. SPECIAL BENEFITS FOR CIVILIAN EMPLOYEES ASSIGNED ON
DEPLOYMENT TEMPORARY CHANGE OF STATION.

(a) Authority.--Subchapter II of chapter 57 of title 5, United
States Code, is amended by inserting after section 5737 the following:

``Sec. 5737a. Employees temporarily deployed in contingency operations

``(a) Definitions.--For purposes of this section--
``(1) the term `covered employee' means an individual who--
``(A) is an employee of an Executive agency or a
military department, excluding a Government controlled
corporation; and
``(B) is assigned on a temporary change of station
in support of a contingency operation;
``(2) the term `temporary change of station', as used with
respect to an employee, means an assignment--

[[Page 347]]
122 STAT. 347

``(A) from the employee's official duty station to a
temporary duty station; and
``(B) for which such employee is eligible for
expenses under section 5737; and
``(3) the term `contingency operation' has the meaning given
such term by section 1482a(c) of title 10.

``(b) Quarters and Rations.--The head of an agency may provide
quarters and rations, without charge, to any covered employee of such
agency during the period of such employee's temporary assignment (as
described in subsection (a)(1)(B)).
``(c) Storage of Motor Vehicle.--The head of an agency may provide
for the storage, without charge, or for the reimbursement of the cost of
storage, of a motor vehicle that is owned or leased by a covered
employee of such agency (or by a dependent of such an employee) and that
is for the personal use of the covered
employee. [NOTE: Applicability.] This subsection shall apply--
``(1) with respect to storage during the period of the
employee's temporary assignment (as described in subsection
(a)(1)(B)); and
``(2) in the case of a covered employee, with respect to not
more than one motor vehicle as of any given time.

``(d) Relationship to Other Benefits.--Any benefits under this
section shall be in addition to (and not in lieu of) any other benefits
for which the covered employee is otherwise eligible.''.
(b) Clerical Amendment.--The table of sections for chapter 57 of
such title is amended by inserting after the item relating to section
5737 the following:

``5737a. Employees temporarily deployed in contingency operations.''.

SEC. 1105. DEATH GRATUITY AUTHORIZED FOR FEDERAL EMPLOYEES.

(a) Death Gratuity Authorized.--Chapter 81 of title 5, United States
Code, is amended by inserting after section 8102 the following:

``Sec. 8102a. Death gratuity for injuries incurred in connection with
employee's service with an Armed Force

``(a) Death Gratuity Authorized.--The United States shall pay a
death gratuity of up to $100,000 to or for the survivor prescribed by
subsection (d) immediately upon receiving official notification of the
death of an employee who dies of injuries incurred in connection with
the employee's service with an Armed Force in a contingency operation.
``(b) Retroactive Payment in Certain Cases.--At the discretion of
the Secretary concerned, subsection (a) may apply in the case of an
employee who died, on or after October 7, 2001, and before the date of
enactment of this section, as a result of injuries incurred in
connection with the employee's service with an Armed Force in the
theater of operations of Operation Enduring Freedom or Operation Iraqi
Freedom.
``(c) Relationship to Other Benefits.--The death gratuity payable
under this section shall be reduced by the amount of any death gratuity
provided under section 413 of the Foreign Service Act of 1980, section
1603 of the Emergency Supplemental Appropriations Act for Defense, the
Global War on Terror, and Hurricane Recovery, 2006, or any other law of
the United States based on the same death.
``(d) Eligible Survivors.--

[[Page 348]]
122 STAT. 348

``(1) Subject to paragraph (5), a death gratuity payable
upon the death of a person covered by subsection (a) shall be
paid to or for the living survivor highest on the following
list:
``(A) The employee's surviving spouse.
``(B) The employee's children, as prescribed by
paragraph (2), in equal shares.
``(C) If designated by the employee, any one or more
of the following persons:
``(i) The employee's parents or persons in
loco parentis, as prescribed by paragraph (3).
``(ii) The employee's brothers.
``(iii) The employee's sisters.
``(D) The employee's parents or persons in loco
parentis, as prescribed by paragraph (3), in equal
shares.
``(E) The employee's brothers and sisters in equal
shares.
Subparagraphs (C) and (E) of this paragraph include brothers and
sisters of the half blood and those through adoption.
``(2) Paragraph (1)(B) applies, without regard to age or
marital status, to--
``(A) legitimate children;
``(B) adopted children;
``(C) stepchildren who were a part of the decedent's
household at the time of death;
``(D) illegitimate children of a female decedent;
and
``(E) illegitimate children of a male decedent--
``(i) who have been acknowledged in writing
signed by the decedent;
``(ii) who have been judicially determined,
before the decedent's death, to be his children;
``(iii) who have been otherwise proved, by
evidence satisfactory to the employing agency, to
be children of the decedent; or
``(iv) to whose support the decedent had been
judicially ordered to contribute.
``(3) Subparagraphs (C) and (D) of paragraph (1), so far as
they apply to parents and persons in loco parentis, include
fathers and mothers through adoption, and persons who stood in
loco parentis to the decedent for a period of not less than one
year at any time before the decedent became an employee.
However, only one father and one mother, or their counterparts
in loco parentis, 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
became an employee.
``(4) [NOTE: Effective date.] Beginning on the date of the
enactment of this paragraph, a person covered by this section
may designate another person to receive not more than 50 percent
of the amount payable under this section. The designation shall
indicate the percentage of the amount, to be specified only in
10 percent increments up to the maximum of 50 percent, that the
designated person may receive. The balance of the amount of the
death gratuity shall be paid to or for the living survivors of
the person concerned in accordance with subparagraphs (A)
through (E) of paragraph (1).

[[Page 349]]
122 STAT. 349

``(5) If a person entitled to all or a portion of a death
gratuity under paragraph (1) or (4) dies before the person
receives the death gratuity, it shall be paid to the living
survivor next in the order prescribed by paragraph (1).

``(e) Definitions.--(1) The term `contingency operation' has the
meaning given to that term in section 1482a(c) of title 10, United
States Code.
``(2) The term `employee' has the meaning provided in section 8101
of this title, but also includes a nonappropriated fund instrumentality
employee, as defined in section 1587(a)(1) of title 10.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 81 of such title is amended by inserting after the item relating
to section 8102 the following:

``8102a. Death gratuity for injuries incurred in connection with
employee's service with an Armed Force.''.

SEC. 1106. MODIFICATIONS TO THE NATIONAL SECURITY PERSONNEL SYSTEM.

(a) In General.--Section 9902 of title 5, United States Code, is
amended to read as follows:

``Sec. 9902. Establishment of human resources management system

``(a) In General.--The Secretary may, in regulations prescribed
jointly with the Director, establish, and from time to time adjust, a
human resources management system for some or all of the organizational
or functional units of the Department of Defense. The human resources
management system established under authority of this section shall be
referred to as the `National Security Personnel System'.
``(b) System Requirements.--Any system established under subsection
(a) shall--
``(1) be flexible;
``(2) be contemporary;
``(3) not waive, modify, or otherwise affect--
``(A) the public employment principles of merit and
fitness set forth in section 2301, including the
principles of hiring based on merit, fair treatment
without regard to political affiliation or other
nonmerit considerations, equal pay for equal work, and
protection of employees against reprisal for
whistleblowing;
``(B) any provision of section 2302, relating to
prohibited personnel practices;
``(C)(i) any provision of law referred to in section
2302(b)(1), (8), and (9); or
``(ii) any provision of law implementing any
provision of law referred to in section 2302(b)(1), (8),
and (9) by--
``(I) providing for equal employment
opportunity through affirmative action; or
``(II) providing any right or remedy available
to any employee or applicant for employment in the
public service;
``(D) any other provision of this part (as described
in subsection (d)); or
``(E) any rule or regulation prescribed under any
provision of law referred to in this paragraph;

[[Page 350]]
122 STAT. 350

``(4) not apply to any prevailing rate employees, as defined
in section 5342(a)(2);
``(5) ensure that employees may organize, bargain
collectively, and participate through labor organizations of
their own choosing in decisions which affect them, subject to
any exclusion from coverage or limitation on negotiability
established pursuant to law;
``(6) not be limited by any specific law or authority under
this title, or by any rule or regulation prescribed under this
title, that is waived in regulations prescribed under this
chapter, subject to paragraph (3); and
``(7) include a performance management system that
incorporates the following elements:
``(A) Adherence to merit principles set forth in
section 2301.
``(B) A fair, credible, and transparent employee
performance appraisal system.
``(C) A link between the performance management
system and the agency's strategic plan.
``(D) A means for ensuring employee involvement in
the design and implementation of the system.
``(E) Adequate training and retraining for
supervisors, managers, and employees in the
implementation and operation of the performance
management system.
``(F) A process for ensuring ongoing performance
feedback and dialogue between supervisors, managers, and
employees throughout the appraisal period, and setting
timetables for review.
``(G) Effective safeguards to ensure that the
management of the system is fair and equitable and based
on employee performance.
``(H) A means for ensuring that adequate agency
resources are allocated for the design, implementation,
and administration of the performance management system.
``(I) A pay-for-performance evaluation system to
better link individual pay to performance, and provide
an equitable method for appraising and compensating
employees.

``(c) Personnel Management at Defense Laboratories.--
``(1) [NOTE: Applicability.] The National Security
Personnel System shall not apply with respect to a laboratory
under paragraph (2) before October 1, 2011, and shall apply on
or after October 1, 2011, only to the extent that the Secretary
determines that the flexibilities provided by the National
Security Personnel System are greater than the flexibilities
provided to those laboratories pursuant to section 342 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103-337; 108 Stat. 2721) and section 1101 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year 1999
(5 U.S.C. 3104 note), respectively.
``(2) The laboratories to which this subsection applies
are--
``(A) the Aviation and Missile Research Development
and Engineering Center;
``(B) the Army Research Laboratory;
``(C) the Medical Research and Materiel Command;
``(D) the Engineer Research and Development Command;
``(E) the Communications-Electronics Command;

[[Page 351]]
122 STAT. 351

``(F) the Soldier and Biological Chemical Command;
``(G) the Naval Sea Systems Command Centers;
``(H) the Naval Research Laboratory;
``(I) the Office of Naval Research; and
``(J) the Air Force Research Laboratory.

``(d) Other Nonwaivable Provisions.--The other provisions of this
part referred to in subsection (b)(3)(D) are--
``(1) subparts A, B, E, G, and H of this part; and
``(2) chapters 41, 45, 47, 55 (except subchapter V thereof,
apart from section 5545b), 57, 59, 71, 72, 73, 75, 77, and 79,
and this chapter.

``(e) Limitations Relating to Pay.--
``(1) Nothing in this section shall constitute authority to
modify the pay of any employee who serves in an Executive
Schedule position under subchapter II of chapter 53.
``(2) Except as provided for in paragraph (1), the total
amount in a calendar year of allowances, differentials, bonuses,
awards, or other similar cash payments paid under this title to
any employee who is paid under section 5376 or 5383 or under
title 10 or under other comparable pay authority established for
payment of Department of Defense senior executive or equivalent
employees may not exceed the total annual compensation payable
to the Vice President under section 104 of title 3.
``(3) To the maximum extent practicable, the rates of
compensation for civilian employees at the Department of Defense
shall be adjusted at the same rate, and in the same proportion,
as are rates of compensation for members of the uniformed
services.
``(4) To the maximum extent practicable, for fiscal years
2004 through 2012, the overall amount allocated for compensation
of the civilian employees of an organizational or functional
unit of the Department of Defense that is included in the
National Security Personnel System shall not be less than the
amount that would have been allocated for compensation of such
employees for such fiscal year if they had not been converted to
the National Security Personnel System, based on, at a minimum--
``(A) the number and mix of employees in such
organizational or functional unit prior to the
conversion of such employees to the National Security
Personnel System; and
``(B) adjusted for normal step increases and rates
of promotion that would have been expected, had such
employees remained in their previous pay schedule.
``(5) To the maximum extent practicable, the regulations
implementing the National Security Personnel System shall
provide a formula for calculating the overall amount to be
allocated for fiscal years after fiscal year 2012 for
compensation of the civilian employees of an organization or
functional unit of the Department of Defense that is included in
the National Security Personnel System. The formula shall ensure
that in the aggregate, employees are not disadvantaged in terms
of the overall amount of pay available as a result of conversion
to the National Security Personnel System, while providing
flexibility to accommodate changes in the function of the
organization, changes in the mix of employees performing those

[[Page 352]]
122 STAT. 352

functions, and other changed circumstances that might impact pay
levels.
``(6) Amounts allocated for compensation of civilian
employees of the Department of Defense pursuant to paragraphs
(4) and (5) shall be available only for the purpose of providing
such compensation.
``(7) At the time of any annual adjustment to pay schedules
pursuant to section 5303, the rate of basic pay for each
employee of an organizational or functional unit of the
Department of Defense that is included in the National Security
Personnel System who receives a performance rating above
unacceptable or who does not have a current rating of record for
the most recently completed appraisal period shall be adjusted
by no less than 60 percent of the amount of such adjustment. The
balance of the amount that would have been available for an
annual adjustment under section 5303 shall be allocated to pay
pool funding, for the purpose of increasing rates of pay on the
basis of employee performance.
``(8) Each employee of an organizational or functional unit
of the Department of Defense that is included in the National
Security Personnel System who receives a performance rating
above unacceptable or who does not have a current rating of
record for the most recently completed appraisal period shall
receive--
``(A) locality-based comparability payments under
section 5304 and section 5304a in the same manner and to
the same extent as employees under the General Schedule;
or
``(B) the full measure of any other local market
supplement applicable to the employee if locality-based
comparability payments referred to in subparagraph (A)
are not generally applicable to the employee.
Nothing in this paragraph shall be construed to make locality-
based comparability payments or other local market supplements
payable to any category of employees or positions which were
ineligible for such payments or supplements (as the case may be)
as of the day before the date of the enactment of the National
Defense Authorization Act for Fiscal Year 2004.
``(9) Any rate of pay established or adjusted in accordance
with the requirements of this section shall be non-negotiable,
but shall be subject to procedures and appropriate arrangements
of paragraphs (2) and (3) of section 7106(b), except that
nothing in this paragraph shall be construed to eliminate the
bargaining rights of any category of employees who were
authorized to negotiate rates of pay as of the day before the
date of the enactment of the National Defense Authorization Act
for Fiscal Year 2004.

``(f) Provisions Regarding National Level Bargaining.--
``(1) The Secretary may bargain with a labor organization
which has been accorded exclusive recognition under chapter 71
at an organizational level above the level of exclusive
recognition. The decision to bargain above the level of
exclusive recognition shall not be subject to review. The
Secretary shall consult with the labor organization before
determining the appropriate organizational level of bargaining.
``(2) Any such bargaining shall--
``(A) address issues that are--

[[Page 353]]
122 STAT. 353

``(i) subject to bargaining under chapter 71
and this chapter;
``(ii) applicable to multiple bargaining
units; and
``(iii) raised by either party to the
bargaining;
``(B) except as agreed by the parties or directed
through an independent dispute resolution process agreed
upon by the parties, be binding on all affected
subordinate bargaining units of the labor organization
at the level of recognition and their exclusive
representatives, and the Department of Defense and its
subcomponents, without regard to levels of recognition;
``(C) to the extent agreed by the parties or
directed through an independent dispute resolution
process agreed upon by the parties, supersede
conflicting provisions of all other collective
bargaining agreements of the labor organization,
including collective bargaining agreements negotiated
with an exclusive representative at the level of
recognition; and
``(D) except as agreed by the parties or directed
through an independent dispute resolution process agreed
upon by the parties, not be subject to further
negotiations for any purpose, including bargaining at
the level of recognition.
``(3) Any independent dispute resolution process agreed to
by the parties for the purposes of paragraph (2) shall have the
authority to address all issues on which the parties are unable
to reach agreement.
``(4) The National Guard Bureau and the Army and Air Force
National Guard may be included in coverage under this
subsection.
``(5) Any bargaining completed pursuant to this subsection
with a labor organization not otherwise having national
consultation rights with the Department of Defense or its
subcomponents shall not create any obligation on the Department
of Defense or its subcomponents to confer national consultation
rights on such a labor organization.

``(g) Provisions Related to Separation and Retirement Incentives.--
``(1) The Secretary may establish a program within the
Department of Defense under which employees may be eligible for
early retirement, offered separation incentive pay to separate
from service voluntarily, or both. This authority may be used to
reduce the number of personnel employed by the Department of
Defense or to restructure the workforce to meet mission
objectives without reducing the overall number of personnel.
This authority is in addition to, and notwithstanding, any other
authorities established by law or regulation for such programs.
``(2)(A) The Secretary may not authorize the payment of
voluntary separation incentive pay under paragraph (1) to more
than 25,000 employees in any fiscal year, except that employees
who receive voluntary separation incentive pay as a result of a
closure or realignment of a military installation under the
Defense Base Closure and Realignment Act of 1990 (title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) shall not be included
in that number.
``(B) [NOTE: Reports.] The Secretary shall prepare a
report each fiscal year setting forth the number of employees
who received such pay

[[Page 354]]
122 STAT. 354

as a result of a closure or realignment of a military base as
described under subparagraph (A).
``(C) The Secretary shall submit the report under
subparagraph (B) to the Committee on Armed Services and the
Committee on Governmental Affairs of the Senate, and the
Committee on Armed Services and the Committee on Government
Reform of the House of Representatives.
``(3) For purposes of this section, the term `employee'
means an employee of the Department of Defense, serving under an
appointment without time limitation, except that such term does
not include--
``(A) a reemployed annuitant under subchapter III of
chapter 83 or chapter 84, or another retirement system
for employees of the Federal Government;
``(B) an employee having a disability on the basis
of which such employee is or would be eligible for
disability retirement under any of the retirement
systems referred to in subparagraph (A); or
``(C) for purposes of eligibility for separation
incentives under this section, an employee who is in
receipt of a decision notice of involuntary separation
for misconduct or unacceptable performance.
``(4) An employee who is at least 50 years of age and has
completed 20 years of service, or has at least 25 years of
service, may, pursuant to regulations promulgated under this
section, apply and be retired from the Department of Defense and
receive benefits in accordance with chapter 83 or 84 if the
employee has been employed continuously within the Department of
Defense for more than 30 days before the date on which the
determination to conduct a reduction or restructuring within 1
or more Department of Defense components is approved.
``(5)(A) Separation pay shall be paid in a lump sum or in
installments and shall be equal to the lesser of --
``(i) an amount equal to the amount the employee
would be entitled to receive under section 5595(c), if
the employee were entitled to payment under such
section; or
``(ii) $25,000.
``(B) Separation pay shall not be a basis for payment, and
shall not be included in the computation, of any other type of
Government benefit. Separation pay shall not be taken into
account for the purpose of determining the amount of any
severance pay to which an individual may be entitled under
section 5595, based on any other separation.
``(C) Separation pay, if paid in installments, shall cease
to be paid upon the recipient's acceptance of employment by the
Federal Government, or commencement of work under a personal
services contract as described in paragraph (6).
``(6)(A) An employee who receives separation pay under such
program may not be reemployed by the Department of Defense for a
12-month period beginning on the effective date of the
employee's separation, unless this prohibition is waived by the
Secretary on a case-by-case basis.
``(B) An employee who receives separation pay under this
section on the basis of a separation occurring on or after the
date of the enactment of the Federal Workforce Restructuring Act
of 1994 (Public Law 103-226; 108 Stat. 111) and accepts

[[Page 355]]
122 STAT. 355

employment with the Government of the United States, or who
commences work through a personal services contract with the
United States within 5 years after the date of the separation on
which payment of the separation pay is based, shall be required
to repay the entire amount of the separation pay to the
Department of Defense. If the employment is with an Executive
agency (as defined by section 105) other than the Department of
Defense, the Director may, at the request of the head of that
agency, waive the repayment if the individual involved possesses
unique abilities and is the only qualified applicant available
for the position. If the employment is within the Department of
Defense, the Secretary may waive the repayment if the individual
involved is the only qualified applicant available for the
position. If the employment is with an entity in the legislative
branch, the head of the entity or the appointing official may
waive the repayment if the individual involved possesses unique
abilities and is the only qualified applicant available for the
position. If the employment is with the judicial branch, the
Director of the Administrative Office of the United States
Courts may waive the repayment if the individual involved
possesses unique abilities and is the only qualified applicant
available for the position.
``(7) Under this program, early retirement and separation
pay may be offered only pursuant to regulations established by
the Secretary, subject to such limitations or conditions as the
Secretary may require.

``(h) Provisions Relating to Reemployment.--
``(1) Except as provided under paragraph (2), if an
annuitant receiving an annuity from the Civil Service Retirement
and Disability Fund becomes employed in a position within the
Department of Defense, his annuity shall continue. An annuitant
so reemployed shall not be considered an employee for purposes
of subchapter III of chapter 83 or chapter 84.
``(2)(A) An annuitant retired under section 8336(d)(1) or
8414(b)(1)(A) receiving an annuity from the Civil Service
Retirement and Disability Fund, who becomes employed in a
position within the Department of Defense after the date of
enactment of the National Defense Authorization Act for Fiscal
Year 2004 (Public Law 108-136), may elect to be subject to
section 8344 or 8468 (as the case may be).
``(B) [NOTE: Deadline.] An election for coverage under
this paragraph shall be filed not later than the later of 90
days after the date the Department of Defense--
``(i) prescribes regulations to carry out this
subsection; or
``(ii) [NOTE: Notification.] takes reasonable
actions to notify employees who may file an election.
``(C) [NOTE: Effective date.] If an employee files an
election under this paragraph, coverage shall be effective
beginning on the first day of the first applicable pay period
beginning on or after the date of the filing of the election.
``(D) [NOTE: Applicability.] Paragraph (1) shall apply to
an individual who is eligible to file an election under
subparagraph (A) and does not file a timely election under
subparagraph (B).
``(3) [NOTE: Regulations.] The Secretary shall prescribe
regulations to carry out this subsection.

[[Page 356]]
122 STAT. 356

``(i) Additional Provisions Relating to Personnel Management.--
``(1) Subject to the requirements of chapter 71 and the
limitations in subsection (b)(3), the Secretary of Defense, in
establishing and implementing the National Security Personnel
System under subsection (a), shall not be limited by any
provision of this title or any rule or regulation prescribed
under this title in establishing and implementing regulations
relating to--
``(A) the methods of establishing qualification
requirements for, recruitment for, and appointments to
positions; and
``(B) the methods of assigning, reassigning,
detailing, transferring, or promoting employees.
``(2) In implementing this subsection, the Secretary shall
comply with the provisions of section 2302(b)(11), regarding
veterans' preference requirements, as provided for in subsection
(b)(3).

``(j) Phase-in.--The Secretary may not, in any calendar year, add
any organizational or functional unit to the National Security Personnel
System which would cause the total number of employees added to such
System in such year to exceed 100,000.''.
(b) Implementation.--
(1) [NOTE: Regulations. Notification. Public comment.] The
requirements of section 9902 of title 5, United States Code, as
amended by this section, may be implemented through rules
promulgated jointly by the Secretary of Defense and the Director
of the Office of Personnel Management after notice and
opportunity for public comment or through Department of Defense
rules or internal agency implementing issuances. Rules
promulgated jointly by the Secretary and the Director under this
paragraph shall be treated as major rules for the purposes of
section 801 of title 5, United States Code.
(2) Both rules and implementing issuances shall be subject
to collective bargaining consistent with the requirements of
chapter 71 of title 5, United States Code. Rules promulgated
jointly by the Secretary of Defense and the Director of the
Office of Personnel Management after notice and opportunity for
public comment and in accordance with the requirements of
section 801 of such title 5 for a major rule shall be treated in
the same manner as government-wide rules for the purpose of such
collective bargaining, if such rules are uniformly applicable to
all organizational or functional units included in the National
Security Personnel System.
(3) Any rules and implementing issuances that were adopted
prior to the date of the enactment of this Act--
(A) shall be invalid to the extent that they are
inconsistent with the requirements of section 9902 of
title 5, United States Code, as amended by this section;
(B) shall not supersede a collective bargaining
agreement that was in place prior to the date on which
the rule or implementing issuance was promulgated; and
(C) shall be subject to collective bargaining--
(i) in the case of rules which are uniformly
applicable to all organizational or functional
units included in the National Security Personnel
System and issued jointly by the Secretary of
Defense and the Director of the Office of
Personnel Management

[[Page 357]]
122 STAT. 357

pursuant to subsection 9902(f)(1) of title 5,
United States Code (as in effect prior to the
enactment of this section), only as to impact and
implementation, when applied to employees of the
Department of Defense from any bargaining unit;
(ii) in the case of any other rules or
implementing issuances, to the extent provided in
chapter 71 of title 5, United States Code.
(4) The availability of judicial review of any rules or
implementing issuances that were adopted prior to the date of
the enactment of this Act shall not be affected by the enactment
of this section.

(c) Comptroller General Reviews.--
(1) The Comptroller General shall conduct annual reviews in
calendar years 2008, 2009 and 2010 of--
(A) employee satisfaction with the National Security
Personnel System established pursuant to section 9902 of
title 5, United States Code, as amended by this section;
and
(B) the extent to which the Department of Defense
has effectively implemented accountability mechanisms,
including those established in section 9902(b)(7) of
title 5, United States Code, and internal safeguards for
the National Security Personnel System.
(2) To the extent that the Department of Defense undertakes
internal assessments or employee surveys to assess employee
satisfaction with the National Security Personnel System in any
such calendar year, the Comptroller General shall--
(A) determine whether such assessments or surveys
are appropriately designed and statistically valid; and
(B) provide an independent evaluation of the results
of such assessments or surveys.
(3) To the extent that the Department of Defense does not
undertake appropriately designed and statistically valid
employee surveys, the Comptroller General shall conduct such a
survey and provide an independent evaluation of the results.
(4) [NOTE: Reports.] The Comptroller General shall report
the results of each annual review conducted under this
subsection to the Committees on Armed Services of the Senate and
the House of Representatives, the Committee on Homeland Security
and Governmental Affairs of the Senate, and the Committee on
Oversight and Government Reform of the House of Representatives.

SEC. 1107. REQUIREMENT FOR FULL IMPLEMENTATION OF PERSONNEL
DEMONSTRATION PROJECT.

(a) Requirement.--The Secretary of Defense shall take all necessary
actions to fully implement and use the authorities provided to the
Secretary under section 342(b) of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2721), as amended by
section 1114 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-315), to carry out personnel management demonstration
projects at Department of Defense laboratories that are exempted by
section 9902(c) of

[[Page 358]]
122 STAT. 358

title 5, United States Code, from inclusion in the Department of Defense
National Security Personnel System.
(b) Process for Full Implementation.-- [NOTE: Plan.] The Secretary
of Defense shall also implement a process and implementation plan to
fully utilize the authorities described in subsection (a) to enhance the
performance of the missions of the laboratories.

(c) Other Laboratories.--Any flexibility available to any
demonstration laboratory shall be available for use at any other
laboratory as enumerated in section 9902(c)(2) of title 5, United States
Code.
(d) Submission of List and Description.-- [NOTE: Deadline.] Not
later than March 1 of each year, beginning with March 1, 2008, the
Secretary of Defense shall submit to Congress a list and description of
the demonstration project notices, amendments, and changes requested by
the laboratories during the preceding calendar year. The list shall
include all approved and disapproved notices, amendments, and changes,
and the reasons for disapproval or delay in approval.

SEC. 1108. AUTHORITY FOR INCLUSION OF CERTAIN OFFICE OF DEFENSE RESEARCH
AND ENGINEERING POSITIONS IN EXPERIMENTAL PERSONNEL PROGRAM
FOR SCIENTIFIC AND TECHNICAL PERSONNEL.

Section 1101(b)(1) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by adding ``and'' at the end; and
(3) by adding after subparagraph (C) the following:
``(D) not more than a total of 10 scientific and
engineering positions in the Office of the Director of
Defense Research and Engineering;''.

SEC. 1109. PILOT PROGRAM FOR THE TEMPORARY ASSIGNMENT OF INFORMATION
TECHNOLOGY PERSONNEL TO PRIVATE SECTOR ORGANIZATIONS.

(a) Assignment Authority.--The Secretary of Defense may, with the
agreement of the private sector organization and the Department of
Defense employee concerned, arrange for the temporary assignment of such
employee to such private sector organization under this section. An
employee shall be eligible f