[110th Congress Public Law 181]
[From the U.S. Government Printing Office]


[DOCID: f:publ181.110]

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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.

[[Page 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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

[[Page 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 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 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 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 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 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 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

[[Page 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

[[Page 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,

[[Page 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 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 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 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 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 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 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 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 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 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 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 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

[[Page 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 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.

[[Page 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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: Website.>>  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 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: Website.>>  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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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: Website.>>  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 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 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 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 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 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 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 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 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 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 122 STAT. 265]]

manner consistent with the protection of national security information 
and confidential business information--
            (1) <<NOTE: Website.>>  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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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