" HOUSE OF REPRESENTATIVES ! 107TH CONGRESS

2d Session 

REPORT

107–772

NATIONAL DEFENSE AUTHORIZATION 

ACT FOR FISCAL YEAR 2003

CONFERENCE REPORT

TO ACCOMPANY

H.R. 4546

NOVEMBER 12, 2002.—Ordered to be printed 


congress.#13
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

82–705

" HOUSE OF REPRESENTATIVES ! 107TH CONGRESS

2d Session 

REPORT

2002

107–772

NATIONAL DEFENSE AUTHORIZATION 

ACT FOR FISCAL YEAR 2003

CONFERENCE REPORT

TO ACCOMPANY

H.R. 4546

NOVEMBER 12, 2002.—Ordered to be printed 


congress.#13
(III)

C O N T E N T S 

Page 

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE ............................................................................................................. 311

Summary Statement of Conference Actions ................................................... 311

Summary Table of Authorizations .................................................................. 312

Congressional Defense Committees ................................................................ 318

DIVISION A—DEPARTMENT OF DEFENSE AUTHORIZATIONS ................. 318

TITLE I—PROCUREMENT .......................................................................................... 318

Procurement overview ....................................................................... 318

Aircraft Procurement, Army—Overview .......................................... 320

Missile Procurement, Army—Overview ........................................... 326

Procurement of Weapons and Tracked Combat Vehicles, Army—

Overview .......................................................................................... 330

Procurement of Ammunition, Army—Overview .............................. 335

Other Procurement, Army—Overview ............................................. 342

Chemical Agents and Munitions Destruction, Army—Overview ... 361

Aircraft Procurement, Navy—Overview ........................................... 363

MV–22 / CV–22 Osprey aircraft advance procurement .................. 363

T–45 training system ......................................................................... 363

Weapons Procurement, Navy—Overview ......................................... 371

Procurement of Ammunition, Navy and Marine Corps—Overview .................................................................................................. 376

Shipbuilding and Conversion, Navy—Overview .............................. 381

Other Procurement, Navy—Overview .............................................. 385

Procurement, Marine Corps—Overview ........................................... 400

Batteries .............................................................................................. 400

Aircraft Procurement, Air Force—Overview .................................... 408

Missile Procurement, Air Force—Overview ..................................... 418

Procurement of Ammunition, Air Force—Overview ........................ 423

Other Procurement, Air Force—Overview ....................................... 426

Procurement, Defense-Wide—Overview ........................................... 436

Advanced SEAL Delivery System ..................................................... 436

Chemical Agents and Munitions Destruction, Defense—Overview .................................................................................................. 446

Items of Special Interest .................................................................................. 448

Big Safari ............................................................................................ 448

Navy ship acquisition ........................................................................ 448

Cryptographic equipment modernization ......................................... 451

Signals intelligence architecture ....................................................... 451

Legislative Provisions Adopted ........................................................................ 452

Subtitle A—Authorization of Appropriations .......................................... 452

Authorization of appropriations (secs. 101–107) ............................. 452

Chemical Agents and Munitions Destruction, Defense (sec. 106) .. 452

Subtitle B—Army Programs ..................................................................... 453

Pilot program on sales of manufactured articles and services 

of certain Army industrial facilities without regard to availability from domestic sources (sec. 111) ....................................... 453

Report on impact of Army aviation modernization plan on the 

Army National Guard (sec. 112) .................................................... 453

Family of Medium Tactical Vehicles (sec. 113) ................................ 453

Subtitle C—Navy Programs ..................................................................... 454

Extension of multiyear procurement authority for DDG–51 class 

destroyers (sec. 121) ....................................................................... 454

Sense of Congress on scope of conversion program for Ticonderoga-class cruisers (sec. 122) ...................................................... 454

Page

IV

TITLE I—PROCUREMENT—Continued

Legislative Provisions Adopted—Continued

Subtitle C—Navy Programs—Continued

Continuation of contract for operation of Champion-class T–5 

fuel tanker vessels (sec. 123) ......................................................... 454

Subtitle D—Air Force Programs .............................................................. 455

Multiyear procurement authority for C–130J aircraft program 

(sec. 131) .......................................................................................... 455

Pathfinder programs (sec. 132) ......................................................... 455

Leases for tanker aircraft under multiyear aircraft-lease pilot 

program (sec. 133) .......................................................................... 456

Subtitle E—Other Programs .................................................................... 456

Destruction of existing stockpile of lethal chemical agents and 

munitions (sec. 141) ........................................................................ 456

Report on unmanned aerial vehicle systems (sec. 142) ................... 457

Global Information Grid system (sec. 143) ...................................... 457

Legislative Provisions Not Adopted ................................................................ 457

Compass Call program ....................................................................... 457

Integrated bridge system ................................................................... 457

Marine Corps live fire range improvements .................................... 458

Mobile emergency broadband system ............................................... 458

Reallocation of certain funds for Air Force Reserve Command 

F–16 aircraft procurement ............................................................. 458

Shipbuilding initiative ....................................................................... 458

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION ............................. 459

Research, Development, Test, and Evaluation overview ................ 459

Department of Defense science and technology funding ................. 459

Research, Development, Test and Evaluation, Army—Overview .. 462

Research, Development, Test and Evaluation, Navy—Overview ... 482

Marine mammal research ................................................................. 505

Littoral support craft—experimental ............................................... 505

Research, Development, Test and Evaluation, Air Force—Overview .................................................................................................. 506

Multi-sensor command and control constellation ............................ 526

Research, Development, Test and Evaluation, Defense-Wide—

Overview .......................................................................................... 526

Advanced aerospace systems ............................................................. 550

Arrow ................................................................................................... 550

Operational Test and Evaluation, Defense—Overview ................... 550

Items of Special Interest .................................................................................. 552

Biometric identification technology .................................................. 552

Delegation of research, development, test, and evaluation programs and activities ....................................................................... 552

Management of the chemical-biological defense program .............. 553

Wide bandgap semiconductor electronics ......................................... 555

Legislative Provisions Adopted ........................................................................ 557

Subtitle A—Authorization of Appropriations .......................................... 557

Authorization of appropriations (sec. 201) ....................................... 557

Amount for defense science and technology (sec. 202) .................... 557

Defense health programs (sec. 203) .................................................. 557

Subtitle B—Program Requirements, Restrictions, and Limitations ..... 558

RAH–66 Comanche aircraft program (sec. 211) .............................. 558

Extension of requirements relating to management responsibility 

for naval mine countermeasures programs (sec. 212) ................. 559

Revised requirements for plan for Manufacturing Technology 

Program (sec. 213) .......................................................................... 560

Advanced SEAL Delivery System (sec. 214) .................................... 560

Army experimentation program regarding design of the objective 

force (sec. 215) ................................................................................. 560

Program to provide Army with self-propelled Future Combat Systems non-line-of-sight cannon indirect fire capability for the 

objective force (sec. 216) ................................................................. 560

Prohibition on transfer of Medical Free Electron Laser program 

(sec. 217) .......................................................................................... 562

Littoral combat ship program (sec. 218) .......................................... 562

Subtitle C—Ballistic Missile Defense ...................................................... 564

Report requirements relating to ballistic missile defense programs (sec. 221) .............................................................................. 564

Page

V

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION—Continued

Legislative Provisions Adopted—Continued

Subtitle C—Ballistic Missile Defense—Continued

Responsibility of Missile Defense Agency for research, development, test, and evaluation related to system improvements 

of programs transferred to military departments (sec. 222) ....... 565

Limitation on obligation of funds for Theater High Altitude Area 

Defense Program pending submission of required life-cycle cost 

information (sec. 223) ..................................................................... 565

Provision of information on flight testing of Ground-based Midcourse National Missile Defense system (sec. 224) ...................... 566

References to new name for Ballistic Missile Defense Organization (sec. 225) .................................................................................. 566

One-year limitation on use of funds for nuclear armed interceptors (sec. 226) .................................................................................. 567

Subtitle D—Improved Management of Department of Defense Test 

and Evaluation Facilities ...................................................................... 567

Department of Defense Test Resource Management Center (sec. 

231) .................................................................................................. 567

Objective for institutional funding of test and evaluation facilities 

(sec. 232) .......................................................................................... 567

Uniform financial management system for Department of Defense test and evaluation facilities (sec. 233) ............................... 568

Test and evaluation workforce improvements (sec. 234) ................ 568

Compliance with testing requirements (sec. 235) ............................ 568

Subtitle E—Other Matters ....................................................................... 569

Pilot programs for revitalizing Department of Defense laboratories (sec. 241) ............................................................................... 569

Technology Transition Initiative (sec. 242) ...................................... 569

Defense Acquisition Challenge Program (sec. 243) ......................... 570

Encouragement of small businesses and nontraditional defense 

contractors to submit proposals potentially beneficial for combating terrorism (sec. 244) ............................................................. 571

Vehicle fuel cell program (sec. 245) .................................................. 572

Defense nanotechnology research and development program (sec. 

246) .................................................................................................. 572

Activities of the Defense Experimental Program to Stimulate 

Competitive Research (sec. 247) .................................................... 573

Four-year extension of authority of DARPA to award prizes for 

advanced technology achievements and additional authority of 

military departments and Defense Agencies to award prizes 

for achievements in promoting education (sec. 248) .................... 573

Plan for five-year program for enhancement of measurement and 

signatures intelligence capabilities of the United States 

through incorporation of results of basic research on sensors 

(sec. 249) .......................................................................................... 574

Legislative Provisions Not Adopted ................................................................ 574

Aerospace Relay Mirror System demonstration .............................. 574

Agroterrorist attacks .......................................................................... 574

Analysis of emerging threats ............................................................ 574

Army radar power technology ........................................................... 574

Aviation-shipboard information technology initiative ..................... 575

Basic seismic research program for support of national requirements for monitoring nuclear explosions ...................................... 575

Critical infrastructure protection ...................................................... 575

DDG optimized manning initiative ................................................... 576

Demonstration of renewable energy use .......................................... 576

Full-scale high-speed permanent magnet generator ....................... 576

Increased investment in test and evaluation facilities ................... 576

Laser welding and cutting demonstration ....................................... 576

Limitation on obligation of funds for procurement of Patriot 

(PAC–3) missiles pending submission of required certification .. 577

Report on implementation of Defense Science Board recommendations ................................................................................. 577

Theater Aerospace Command and Control Simulation Facility 

upgrades .......................................................................................... 577

Very high speed support vessel for the Army .................................. 577

TITLE III—OPERATION AND MAINTENANCE ............................................................ 578

Page

VI

TITLE III—OPERATION AND MAINTENANCE—Continued

Overview ............................................................................................. 578

Department of Defense foreign language training .......................... 620

Ship depot maintenance .................................................................... 620

Secure communications for the reserve components ....................... 620

Items of Special Interest .................................................................................. 621

Formerly Used Defense Site at Lowry Bombing and Gunnery 

Range ............................................................................................... 621

National Imagery and Mapping Agency commercial satellite imaging support .................................................................................. 621

Legislative Provisions Adopted ........................................................................ 622

Subtitle A—Authorization of Appropriations .......................................... 622

Authorization of appropriations (secs. 301–302) ............................. 622

Armed Forces Retirement Home (sec. 303) ...................................... 623

Grant to National Guard Youth Foundation (sec. 304) .................. 623

Subtitle B—Environmental Provisions .................................................... 623

Enhancement of authority on cooperative agreements for environmental purposes (sec. 311) ....................................................... 623

Single point of contact for policy and budgeting issues regarding 

unexploded ordnance, discarded military munitions, and munitions constituents (sec. 312) ........................................................... 623

Authority to carry out construction projects for environmental 

responses (sec. 313) ........................................................................ 624

Procurement of environmentally preferable procurement items 

(sec. 314) .......................................................................................... 624

Incidental taking of migratory birds during military readiness 

activities (sec. 315) ......................................................................... 624

Subtitle C—Commissaries and Nonappropriated Fund Instrumentalities ......................................................................................................... 625

Authority for each military department to provide base operating 

support to Fisher Houses (sec. 321) .............................................. 625

Use of commissary stores and MWR retail facilities by members 

of National Guard serving in national emergency (sec. 322) ...... 625

Uniform funding and management of morale, welfare, and recreation programs (sec. 323) ............................................................... 625

Rebate agreements under the special supplemental food program 

(sec. 324) .......................................................................................... 625

Subtitle D—Workplace and Depot Issues ............................................... 626

Notification requirements in connection with required studies 

for conversion of commercial or industrial type functions to 

contractor performance (sec. 331) ................................................. 626

Temporary authority for contractor performance of securityguard functions to meet increased requirements since September 11, 2001 (sec. 332) ............................................................. 626

Repeal of obsolete provision regarding depot-level maintenance 

and repair workloads that were performed at closed or realigned military installations (sec. 333) ....................................... 626

Exclusion of certain expenditures from limitation on private sector performance of depot-level maintenance (sec. 334) ............... 627

Subtitle E—Defense Dependents Education ........................................... 627

Assistance to local educational agencies that benefit dependents 

of members of the Armed Forces and Department of Defense 

civilian employees (sec. 341) .......................................................... 627

Housing benefits for unaccompanied teachers required to live 

at Guantanamo Bay Naval Station, Cuba (sec. 342) ................... 627

Options for funding dependent summer school programs (sec. 

343) .................................................................................................. 627

Impact aid eligibility for local educational agencies affected by 

privatization of military housing (sec. 344) .................................. 628

Comptroller General study of adequacy of compensation provided 

for teachers in the Department of Defense Overseas Dependents’ Schools (sec. 345) ................................................................... 628

Subtitle F—Information Technology ........................................................ 628

Annual submission of information regarding information technology capital assets (sec. 351) ...................................................... 628

Policy regarding acquisition of information assurance and information assurance-enabled information technology products 

(sec. 352) .......................................................................................... 628

Page

VII

TITLE III—OPERATION AND MAINTENANCE—Continued

Legislative Provisions Adopted—Continued

Subtitle F—Information Technology—Continued

Installation and connection policy and procedures regarding Defense Switch Network (sec. 353) .................................................... 629

Subtitle G—Other Matters ....................................................................... 629

Distribution of monthly reports on allocation of funds within 

operation and maintenance budget subactivities (sec. 361) ........ 629

Continuation of arsenal support program initiative (sec. 362) ...... 629

Extension of work safety demonstration program (sec. 363) .......... 629

Condition on authority of Defense Security Service to impose 

fees on fee-for-service basis (sec. 364) ........................................... 629

Logistics support and services for weapon systems contractors 

(sec. 365) .......................................................................................... 630

Training range sustainment plan, Global Status of Resources 

and Training System, and training range inventory (sec. 366) .. 630

Engineering study and environmental analysis of road modifications in vicinity of Fort Belvoir, Virginia (sec. 367) ..................... 630

Reauthorization of warranty claims recovery pilot program (sec. 

368) .................................................................................................. 631

Expanded eligibility for loan, gift, or exchange of documents, 

historical artifacts, and condemned or obsolete combat materiel 

(sec. 369) .......................................................................................... 631

Legislative Provisions Not Adopted ................................................................ 631

Calculation of five-year period of limitation for Navy-Marine 

Corps Intranet contract .................................................................. 631

Clarification of required core logistics capabilities .......................... 631

Cleanup of unexploded ordnance on Kaho’olawe Island, Hawaii ... 631

Impact aid for children with severe disabilities .............................. 632

Lift support for mine warfare ships and other vessels ................... 632

Military readiness and the conservation of protected species ........ 632

Minimum deduction from pay of certain members of the Armed 

Forces to support Armed Forces Retirement Home ..................... 633

National Army Museum, Fort Belvoir, Virginia .............................. 633

Navy data conversion activities ........................................................ 633

Navy Pilot Human Resources Call Center, Cutler, Maine ............. 634

Range Enhancement Initiative Fund ............................................... 634

Reimbursement for reserve component intelligence support .......... 634

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS ............................................... 634

Legislative Provisions Adopted ........................................................................ 634

Subtitle A—Active Forces ......................................................................... 634

End strengths for active forces (sec. 401) ......................................... 634

Revision in permanent end strength minimum levels (sec. 402) ... 635

Expanded authority for administrative increases in statutory active-duty end strengths (sec. 403) ................................................. 635

General and flag officer management (sec. 404) ............................. 636

Extension of certain authorities relating to management of numbers of general and flag officers in certain grades (sec. 405) ...... 636

Increase in authorized strengths for Marine Corps officers on 

active duty in the grade of colonel (sec. 406) ............................... 637

Subtitle B—Reserve Forces ...................................................................... 637

End strengths for Selected Reserve (sec. 411) ................................. 637

End strengths for Reserves on active duty in support of the 

reserves (sec. 412) ........................................................................... 637

End strengths for military technicians (dual status) (sec. 413) ..... 638

Fiscal year 2003 limitation on non-dual status technicians (sec. 

414) .................................................................................................. 638

Subtitle C—Authorization of Appropriations .......................................... 639

Authorization of appropriations for military personnel (sec. 421) . 639

Legislative Provisions Not Adopted ................................................................ 639

Authority to increase strength and grade limitations to account 

for reserve component members on active duty in support of 

a contingency operation ................................................................. 639

TITLE V—MILITARY PERSONNEL POLICY ................................................................ 640

Items of Special Interest .................................................................................. 640

Department of Defense education partnerships .............................. 640

Enrollments at Air Force Institute of Technology and Naval Postgraduate School .............................................................................. 640

Page

VIII

TITLE V—MILITARY PERSONNEL POLICY—Continued

Items of Special Interest—Continued

STARBASE resource and training center ........................................ 640

Legislative Provisions Adopted ........................................................................ 641

Subtitle A—Officer Personnel Policy ....................................................... 641

Extension of good-of-the-service waiver authority for officers appointed to a Reserve Chief or Guard Director position (sec. 

501) .................................................................................................. 641

Exclusion of certain officers from limitation on authority to grant 

a waiver of required completion or sequencing for joint professional military education (sec. 502) .............................................. 641

Extension and codification of authority for recall of retired aviators to active duty (sec. 503) ........................................................ 642

Grades for certain positions (sec. 504) ............................................. 642

Reinstatement of authority to reduce three-year time-in-grade 

requirement for retirement in grade for officers in grades 

above major and lieutenant commander (sec. 505) ...................... 642

Authority to require that an officer take leave pending review 

of a recommendation for removal by a board of inquiry (sec. 

506) .................................................................................................. 643

Subtitle B—Reserve Component Management ....................................... 643

Reviews of National Guard strength accounting and management 

and other issues (sec. 511) ............................................................. 643

Courts-martial for the National Guard when not in Federal service (sec. 512) .................................................................................... 643

Fiscal year 2003 funding for military personnel costs of reserve 

component Special Operations Forces personnel engaged in humanitarian assistance activities relating to clearing of landmines (sec. 513) ............................................................................... 644

Use of Reserves to perform duties relating to defense against 

terrorism (sec. 514) ......................................................................... 644

Repeal of prohibition on use of Air Force Reserve AGR personnel 

for Air Force base security functions (sec. 515) ........................... 644

Subtitle C—Reserve Component Officer Personnel Policy ..................... 645

Eligibility for consideration for promotion to grade of major general for certain reserve component brigadier generals who do 

not otherwise qualify for consideration for promotion under 

the one-year rule (sec. 521) ............................................................ 645

Authority for limited extension of medical deferment of mandatory retirement or separation of reserve component officers 

(sec. 522) .......................................................................................... 645

Subtitle D—Enlistment, Education, and Training Programs ................ 645

Enlistment incentives for pursuit of skills to facilitate national 

service (sec. 531) ............................................................................. 645

Authority for phased increase to 4,400 in authorized strengths 

for the service academies (sec. 532) .............................................. 646

Enhancement of reserve component delayed training program 

(sec. 533) .......................................................................................... 646

Review of Armed Forces programs for preparation for, participation in, and conduct of athletic competitions (sec. 534) ............... 646

Repeal of bar to eligibility of Army College First Program participants for benefits under student loan repayment program (sec. 

535) .................................................................................................. 647

Subtitle E—Decorations, Awards, and Commendations ........................ 647

Waiver of time limitations for award of Army DistinguishedService Cross to certain persons (sec. 541) ................................... 647

Option to convert award of Armed Forces Expeditionary Medal 

awarded for Operation Frequent Wind to Vietnam Service 

Medal (sec. 542) .............................................................................. 647

Korea Defense Service Medal (sec. 543) ........................................... 647

Commendation of military chaplains (sec. 544) ............................... 648

Subtitle F—Administrative Matters ........................................................ 648

Staffing and funding for Defense Prisoner of War/Missing Personnel Office (sec. 551) ................................................................... 648

Three-year freeze on reductions of personnel of agencies responsible for review and correction of military records (sec. 552) ..... 648

Authority for acceptance of voluntary services of individuals as 

proctors for administration of Armed Services Vocational Aptitude Battery test (sec. 553) ............................................................ 648

Page

IX

TITLE V—MILITARY PERSONNEL POLICY—Continued

Legislative Provisions Adopted—Continued

Subtitle F—Administrative Matters—Continued

Extension of temporary early retirement authority (sec. 554) ....... 649

Subtitle G—Matters Relating to Minorities and Women in the Armed 

Forces ...................................................................................................... 649

Surveys of racial and ethnic issues and of gender issues in the 

Armed Forces (sec. 561) ................................................................. 649

Annual report on status of female members of the Armed Forces 

(sec. 562) .......................................................................................... 649

Wear of abayas by female members of the Armed Forces in 

Saudi Arabia (sec. 563) .................................................................. 649

Subtitle H—Benefits ................................................................................. 650

Department of Defense support for persons participating in military funeral honors details (sec. 571) ........................................... 650

Emergency leave of absence program (sec. 572) .............................. 650

Enhanced flexibility in medical loan repayment program (sec. 

573) .................................................................................................. 650

Destinations authorized for Government paid transportation of 

enlisted personnel for rest and recuperation absence upon extending duty at designated locations overseas (sec. 574) ............ 650

Vehicle storage in lieu of transportation when member is ordered 

to a nonforeign duty station outside continental United States 

(sec. 575) .......................................................................................... 651

Subtitle I—Reports .................................................................................... 651

Quadrennial quality of life review (sec. 581) ................................... 651

Report on desirability and feasibility of consolidating separate 

courses of basic instruction for judge advocates (sec. 582) ......... 651

Reports on efforts to resolve status of Captain Michael Scott 

Speicher, United States Navy (sec. 583) ....................................... 651

Report on volunteer services of members of the reserve components in emergency response to the terrorist attacks of September 11, 2001 (sec. 584) ............................................................. 652

Legislative Provisions Not Adopted ................................................................ 652

Exemption from active status strength limitation for reserve 

component general and flag officers serving on active duty 

in certain joint duty assignments designated by the Chairman 

of the Joint Chiefs of Staff ............................................................. 652

Matching funds requirements under National Guard Youth Challenge Program ................................................................................. 652

Military recruiter access to institutions of higher education ......... 652

Retention of promotion eligibility for reserve component general 

and flag officers transferred to an inactive status ....................... 653

Right of convicted accused to request sentencing by military 

judge ................................................................................................ 653

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS ............................. 653

Legislative Provisions Adopted ........................................................................ 653

Subtitle A—Pay and Allowances .............................................................. 653

Increase in basic pay for fiscal year 2003 (sec. 601) ....................... 653

Basic allowance for housing in cases of low-cost or no-cost moves 

(sec. 602) .......................................................................................... 653

Rate of basic allowance for subsistence for enlisted personnel 

occupying single Government quarters without adequate availability of meals (sec. 603) ............................................................... 653

Subtitle B—Bonuses and Special and Incentive Pays ............................ 654

One-year extension of certain bonus and special pay authorities 

for reserve forces (sec. 611) ............................................................ 654

One-year extension of certain bonus and special pay authorities 

for certain health care professionals (sec. 612) ............................ 654

One-year extension of special pay and bonus authorities for nuclear officers (sec. 613) ................................................................... 654

One-year extension of other bonus and special pay authorities 

(sec. 614) .......................................................................................... 654

Increase in maximum rates for certain special pays, bonuses, 

and financial assistance for health care professionals (sec. 

615) .................................................................................................. 655

Assignment incentive pay (sec. 616) ................................................. 655

Increase in maximum rates for prior service enlistment bonus 

(sec. 617) .......................................................................................... 655

Page

X

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS—Continued

Legislative Provisions Adopted—Continued

Subtitle B—Bonuses and Special and Incentive Pays—Continued

Retention incentives for health care professionals qualified in 

a critical military skill (sec. 618) ................................................... 656

Subtitle C—Travel and Transportation Allowances ............................... 656

Extension of leave travel deferral period for members performing 

consecutive overseas tours of duty (sec. 621) ............................... 656

Transportation of motor vehicles for members reported missing 

(sec. 622) .......................................................................................... 656

Subtitle D—Retired Pay and Survivor Benefits ..................................... 656

Permanent reduction from eight to six in number of years of 

reserve service required for eligibility for retired pay for nonregular service (sec. 631) ................................................................ 656

Increased retired pay for enlisted Reserves credited with extraordinary heroism (sec. 632) ............................................................... 656

Elimination of possible inversion in retired pay cost-of-living adjustment for initial COLA computation (sec. 633) ....................... 657

Technical revisions to so-called ‘‘forgotten widows’’ annuity program (sec. 634) ................................................................................ 657

Expansion of authority of Secretary of Defense to waive time 

limitations on claims against the Government for military personnel benefits (sec. 635) ............................................................... 657

Special compensation for certain combat-related disabled uniform 

services retirees (sec. 636) ............................................................. 657

Subtitle E—Montgomery GI Bill .............................................................. 658

Time limitation for use of Montgomery GI Bill entitlement by 

members of the Selected Reserve (sec. 641) ................................. 658

Repayment requirements under reserve component Montgomery 

GI Bill arising from failure to participate satisfactorily in military service to be considered debts owed to the United States 

(sec. 642) .......................................................................................... 658

Technical adjustments to authority for certain members to transfer educational assistance under Montgomery GI Bill to dependents (sec. 643) ......................................................................... 658

Subtitle F—Other Matters ....................................................................... 658

Payment of interest on student loans (sec. 651) .............................. 658

Additional authority to provide assistance for families of members of the Armed Forces (sec. 652) .............................................. 659

Repeal of authority for acceptance of honoraria by personnel 

at certain Department of Defense schools (sec. 653) ................... 659

Addition of definition of continental United States in title 37 

(sec. 654) .......................................................................................... 659

Legislative Provisions Not Adopted ................................................................ 659

Minimum levels of hardship duty pay for duty on the ground 

in Antarctica or on Arctic icepack ................................................. 659

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 ................................................................. 660

TITLE VII—HEALTH CARE PROVISIONS ................................................................... 660

Items of Special Interest .................................................................................. 660

Civil-military partnership education programs related to sexual 

health decision-making .................................................................. 660

Naval Medical Research Center cooperative agreements ............... 660

TRICARE in Alaska ........................................................................... 660

Legislative Provisions Adopted ........................................................................ 661

Subtitle A—Health Care Program Improvements .................................. 661

Elimination of requirement for TRICARE preauthorization of inpatient mental health care for medicare-eligible beneficiaries 

(sec. 701) .......................................................................................... 661

Continued TRICARE eligibility of dependents residing at remote 

locations after departure of sponsors for unaccompanied assignments and eligibility of dependents of reserve component 

members ordered to active duty (sec. 702) ................................... 661

Eligibility of surviving dependents for TRICARE dental program 

benefits after discontinuance of former enrollment (sec. 703) .... 661

Department of Defense Medicare-Eligible Retiree Health Care 

Fund (sec. 704) ................................................................................ 661

Page

XI

TITLE VII—HEALTH CARE PROVISIONS—Continued

Legislative Provisions Adopted—Continued

Subtitle A—Health Care Program Improvements—Continued

Approval of medicare providers as TRICARE providers (sec. 705) 662

Technical corrections relating to transitional health care for 

members separated from active duty (sec. 706) ........................... 662

Extension of temporary authority to enter into personal services 

contracts for the performance of health care responsibilities 

at locations other than military medical treatment facilities 

(sec. 707) .......................................................................................... 662

Access to health care services for beneficiaries eligible for 

TRICARE and Department of Veterans Affairs health care 

(sec. 708) .......................................................................................... 662

Disclosure of information on Project 112 to Department of Veterans Affairs (sec. 709) ................................................................... 663

Subtitle B—Reports .................................................................................. 663

Claims information (sec. 711) ............................................................ 663

Comptroller General report on provision of care under the 

TRICARE program (sec. 712) ........................................................ 663

Repeal of report requirement (sec. 713) ........................................... 663

Subtitle C—Department of Defense-Department of Veterans Affairs 

Health Resources Sharing ..................................................................... 664

Revised coordination and sharing guidelines (sec. 721) .................. 664

Health care resources sharing and coordination project (sec. 722) 664

Report on improved coordination and sharing of health care and 

health care resources following domestic acts of terrorism or 

domestic use of weapons of mass destruction (sec. 723) ............. 664

Interoperablity of Department of Veterans Affairs and Department of Defense pharmacy data programs (sec. 724) .................. 665

Joint pilot program for providing graduate medical education 

and training for physicians (sec. 725) ........................................... 665

Repeal of certain limits on Department of Veterans Affairs resources (sec. 726) ............................................................................ 665

Legislative Provisions Not Adopted ................................................................ 666

Findings and sense of Congress concerning status of health resources sharing between the Department of Veterans Affairs 

and the Department of Defense .................................................... 666

Reports ................................................................................................ 666

Restoration of previous policy regarding restrictions on use of 

Department of Defense medical facilities ..................................... 667

Short title ............................................................................................ 667

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED

MATTERS ................................................................................................................ 667

Legislative Provisions Adopted ........................................................................ 667

Subtitle A—Acquisition Policy and Management ................................... 667

Buy-to-budget acquisition of end items (sec. 801) ........................... 667

Report to Congress on evolutionary acquisition of major defense 

acquisition programs (sec. 802) ..................................................... 667

Spiral development under major defense acquisition programs 

(sec. 803) .......................................................................................... 668

Improvement of software acquisition processes (sec. 804) .............. 668

Performance goals for procuring services pursuant to multiple 

award contracts (sec. 805) .............................................................. 668

Rapid acquisition and deployment procedures (sec. 806) ............... 669

Quick-reaction special projects acquisition team (sec. 807) ............ 669

Subtitle B—Amendments to General Contracting Authorities, Procedures, and Limitations .......................................................................... 670

Limitation period for task and delivery order contracts (sec. 811) 670

One-year extension of program applying simplified procedures 

to certain commercial items; report (sec. 812) ............................. 670

Extension and improvement of personnel demonstration policies 

and procedures applicable to the civilian acquisition workforce 

(sec. 813) .......................................................................................... 670

Past performance given significant weight in renewal of procurement technical assistance cooperative agreements (sec. 814) ..... 671

Increased maximum amount of assistance for tribal organizations or economic enterprises carrying out procurement technical assistance programs in two or more service areas (sec. 

815) .................................................................................................. 671

Page

XII

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED

MATTERS—Continued

Legislative Provisions Adopted—Continued

Subtitle B—Amendments to General Contracting Authorities, Procedures, and Limitations—Continued

Extension of contract goal for small disadvantaged businesses 

and certain institutions of higher education (sec. 816) ............... 671

Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards (sec. 817) ........ 671

Timing of certification in connection with waiver of survivability 

and lethality testing requirements (sec. 818) ............................... 672

Contracting with Federal Prison Industries (sec. 819) ................... 672

Revisions to multiyear contracting authority (sec. 820) ................. 672

Subtitle C—Acquisition-Related Reports and Other Matters ................ 672

Evaluation of training, knowledge, and resources regarding negotiation of intellectual property arrangements (sec. 821) ............. 673

Independent technology readiness assessments (sec. 822) ............. 673

Extension and amendment of requirement for annual report on 

defense commercial pricing management improvement (sec. 

823) .................................................................................................. 673

Assessment of purchases of products and services through contracts with other Federal departments and agencies (sec. 824) . 673

Repeal of certain requirements and Comptroller General reviews 

of the requirements (sec. 825) ....................................................... 674

Multiyear procurement authority for purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products (sec. 826) ... 674

Multiyear procurement authority for environmental services for 

military installations (sec. 827) ..................................................... 674

Report on effects of Army Contracting Agency (sec. 828) ............... 674

Authorization to take actions to correct the industrial resource 

shortfall for radiation-hardened electronics (sec. 829) ................ 675

Legislative Provisions Not Adopted ................................................................ 675

Authority for nonprofit organizations to self-certify eligibility for 

treatment as qualified organizations employing severely disabled under Mentor-Protege Program .......................................... 675

Authority to make inflation adjustments to simplified acquisition 

threshold ......................................................................................... 675

Mentor-Protege Program eligibility for HUBZone small business 

concerns and small business concerns owned and controlled 

by service-disabled veterans .......................................................... 675

Modification of scope of ball and roller bearings covered for purposes of procurement limitation .................................................... 675

Moratorium on reduction of the defense acquisition and support 

workforce ......................................................................................... 676

Pilot program for transition to follow-on contracts for prototype 

projects ............................................................................................ 676

Plan for acquisition management professional exchange pilot program ................................................................................................. 676

Report on development of anticyberterrorism technology .............. 676

Waiver authority for domestic source or content requirements ..... 676

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT ........... 677

Legislative Provisions Adopted ........................................................................ 677

Subtitle A—Duties and Functions of Department of Defense Officers . 677

Under Secretary of Defense for Intelligence (sec. 901) ................... 677

Reorganization of Office of Secretary of Defense for administration of duties relating to homeland defense and combating 

terrorism (sec. 902) ......................................................................... 677

Subtitle B—Space Activities .....................................................................

Oversight of acquisition for defense space programs (sec. 911) ..... 677

Report regarding assured access to space for the United States 

(sec. 912) .......................................................................................... 678

Subtitle C—Reports .................................................................................. 679

Report on establishment of United States Northern Command 

(sec. 921) .......................................................................................... 679

Time for submittal of report on Quadrennial Defense Review 

(sec. 922) .......................................................................................... 679

National defense mission of Coast Guard to be included in future 

Quadrennial Defense Reviews (sec. 923) ...................................... 679

Page

XIII

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT—Continued

Legislative Provisions Adopted—Continued

Subtitle C—Reports—Continued

Report on establishment of a Joint National Training Complex 

and joint opposing forces (sec. 924) ............................................... 679

Subtitle D—Other Matters ....................................................................... 680

Authority to accept gifts for National Defense University (sec. 

931) .................................................................................................. 680

Western Hemisphere Institute for Security Cooperation (sec. 

932) .................................................................................................. 680

Conforming amendment to reflect disestablishment of Department of Defense Consequence Management Program Information Office (sec. 933) ....................................................................... 680

Increase in number of Deputy Commandants of the Marine 

Corps (sec. 934) ............................................................................... 681

Legislative Provisions Not Adopted ................................................................ 681

Change in title of Secretary of the Navy to the Secretary of 

the Navy and the Marine Corps .................................................... 681

Report on effect of operations other than war on combat readiness of the Armed Forces ............................................................... 681

TITLE X—GENERAL PROVISIONS .............................................................................. 682

Deferral of expenditures on financial management and feeder 

systems ............................................................................................ 682

Drug interdiction and counterdrug activities .................................. 682

Improved management of Department of Defense contracting for 

services ............................................................................................ 683

Legislative Provisions Adopted ........................................................................ 684

Subtitle A—Financial Matters ................................................................. 684

Transfer authority (sec. 1001) ........................................................... 684

Authorization of supplemental appropriations for fiscal year 2002 

(sec. 1002) ........................................................................................ 684

United States contribution to NATO common-funded budgets in 

fiscal year 2003 (sec. 1003) ............................................................ 684

Development and implementation of financial management enterprise architecture (sec. 1004) .................................................... 685

Accountable officials in the Department of Defense (sec. 1005) ..... 685

Uniform standards throughout Department of Defense for exposure of personnel to pecuniary liability for loss of Government 

property (sec. 1006) ........................................................................ 685

Improvements in purchase card management (sec. 1007) .............. 686

Improvements in travel card management (sec. 1008) ................... 686

Clearance of certain transactions recorded in Treasury suspense 

accounts and resolution of certain check issuance discrepancies 

(sec. 1009) ........................................................................................ 686

Authorization of funds for ballistic missile defense programs or 

combating terrorism programs of the Department of Defense 

(sec. 1010) ........................................................................................ 687

Reduction in overall authorization due to inflation savings (sec. 

1011) ................................................................................................ 687

Subtitle B—Naval Vessels and Shipyards .............................................. 688

Number of Navy combatant surface vessels in active and reserve 

service (sec. 1021) ........................................................................... 688

Annual long-range plan for the construction of naval vessels 

(sec. 1022) ........................................................................................ 688

Assessment of the feasibility of the expedited equipping of a 

Navy ship with a version of the 155-millimeter Advanced Gun 

System (sec. 1023) .......................................................................... 688

Report on initiatives to increase operational days of Navy ships 

(sec. 1024) ........................................................................................ 689

Ship combat system industrial base (sec. 1025) .............................. 689

Sense of Congress concerning aircraft carrier force structure (sec. 

1026) ................................................................................................ 689

Conveyance, Navy drydock, Portland, Oregon (sec. 1027) .............. 689

Subtitle C—Strategic Matters .................................................................. 689

Strategic force structure plan for nuclear weapons and delivery 

systems (sec. 1031) ......................................................................... 689

Annual report on weapons to defeat hardened and deeply buried 

targets (sec. 1032) ........................................................................... 690

Page

XIV

TITLE X—GENERAL PROVISIONS—Continued

Legislative Provisions Adopted—Continued

Subtitle C—Strategic Matters—Continued

Report on effects of nuclear earth-penetrator weapon and other 

weapons (sec. 1033) ........................................................................ 690

Subtitle D—Reports .................................................................................. 691

Repeal and modification of various reporting requirements applicable to the Department of Defense (sec. 1041) ........................... 691

Requirement that Department of Defense reports to Congress 

be accompanied by electronic version (sec. 1042) ........................ 691

Annual report on the conduct of military operations conducted 

as part of Operation Enduring Freedom (sec. 1043) .................... 691

Report on efforts to ensure adequacy of fire fighting staffs at 

military installations (sec. 1044) ................................................... 692

Report on designation of certain Louisiana highway as Defense 

Access Road (sec. 1045) .................................................................. 692

Subtitle E—Extension of Expiring Authorities ....................................... 692

Extension of authority for Secretary of Defense to sell aircraft 

and aircraft parts for use in responding to oil spills (sec. 1051) 692

Six-month extension of expiring Governmentwide information security requirements; continued applicability of expiring Governmentwide information security requirements to the Department of Defense (sec. 1052) ........................................................... 692

Two-year extension of authority of the Secretary of Defense to 

engage in commercial activities as security for intelligence collection activities abroad (sec. 1053) .............................................. 693

Subtitle F—Other Matters ....................................................................... 693

Time for transmittal of annual defense authorization legislative 

proposal (sec. 1061) ........................................................................ 693

Technical and clerical amendments (sec. 1062) ............................... 693

Use for law enforcement purposes of DNA samples maintained 

by Department of Defense for identification of human remains 

(sec. 1063) ........................................................................................ 693

Enhanced authority to obtain foreign language services during 

periods of emergency (sec. 1064) ................................................... 693

Rewards for assistance in combating terrorism (sec. 1065) ............ 694

Provision of space and services to military welfare societies (sec. 

1066) ................................................................................................ 694

Prevention and mitigation of corrosion of military equipment 

and infrastructure (sec. 1067) ....................................................... 694

Transfer of historic DF–9E Panther Aircraft to Women Airforce 

Service Pilots Museum (sec. 1068) ................................................ 695

Increase in amount authorized to be expended for Department 

of Defense program to commemorate 50th anniversary of the 

Korean War (sec. 1069) .................................................................. 695

Legislative Provisions Not Adopted ................................................................ 695

Assignment of members to assist Immigration and Naturalization Service and Customs Service ................................................. 695

Authority to transfer funds within a major acquisition program 

from Procurement to Research, Development, Test and Evaluation ................................................................................................... 695

Availability of amounts for Oregon Army National Guard for 

search and rescue and medical evacuation missions in adverse 

weather conditions .......................................................................... 696

Charter grant to Korean War Veterans Association ....................... 696

Enhanced cooperation between United States and Russian Federation to promote mutual security .............................................. 696

Homeland security activities of the National Guard ...................... 697

Limitation on duration of future Department of Defense reporting requirements ............................................................................ 697

Reallocation of authorizations of appropriations from ballistic 

missile defense to shipbuilding ..................................................... 697

Report on biological weapons defense and counterproliferation .... 697

Report on effects of nuclear-tipped ballistic missile interceptors 

and nuclear missiles not intercepted ............................................ 697

Sense of Congress on maintenance of a reliable, flexible, and 

robust strategic deterrent .............................................................. 698

Sense of Congress on prohibition of use of funds for International 

Criminal Court ................................................................................ 698

Page

XV

TITLE X—GENERAL PROVISIONS—Continued

Legislative Provisions Not Adopted—Continued

Transfer of funds to increase amounts for PAC–3 missile procurement and Israeli Arrow program ........................................... 698

Utah Test and Training Range ......................................................... 698

War risk insurance for vessels in support of NATO-approved 

operations ........................................................................................ 699

TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL ................................ 699

Legislative Provisions Adopted ........................................................................ 699

Eligibility of Department of Defense nonappropriated fund employees for long-term care insurance (sec. 1101) ......................... 699

Extension of Department of Defense authority to make lumpsum severance payments (sec. 1102) ............................................ 699

Continuation of Federal Employee Health Benefits Program eligibility (sec. 1103) .............................................................................. 699

Certification for Department of Defense professional accounting 

positions (sec. 1104) ........................................................................ 700

Legislative Provisions Not Adopted ................................................................ 700

Common occupational and health standards for differential payments as a consequence of exposure to asbestos ......................... 700

Extension of voluntary separation incentive pay authority ........... 700

Increased maximum period of appointment under the experimental personnel program for scientific and technical personnel ............................................................................................... 701

Triennial full-scale federal wage system wage surveys .................. 701

TITLE XII—MATTERS RELATING TO OTHER NATIONS ............................................ 702

Legislative Provisions Adopted ........................................................................ 702

Authority to provide administrative services and support for coalition liaison officers (sec. 1201) .................................................... 702

Authority to pay for certain travel of defense personnel of countries participating in NATO Partnership for Peace program 

(sec. 1202) ........................................................................................ 702

Limitation on funding for Joint Data Exchange Center in Moscow (sec. 1203) ................................................................................ 702

Support of United Nations-sponsored efforts to inspect and monitor Iraqi weapons activities (sec. 1204) ....................................... 703

Comprehensive annual report to Congress on coordination and 

integration of all United States non-proliferation activities (sec. 

1205) ................................................................................................ 703

Report requirement regarding Russian proliferation to Iran and 

other countries of proliferation concern (sec. 1206) ..................... 703

Monitoring of implementation of 1979 agreement between the 

United States and China on cooperation in science and technology (sec. 1207) ............................................................................ 704

Extension of certain counterproliferation activities and programs 

(sec. 1208) ........................................................................................ 704

Semiannual report by Director of Central Intelligence on contributions by foreign persons to efforts of countries of proliferation concern to obtain weapons of mass destruction and their 

delivery systems (sec. 1209) ........................................................... 705

Report on feasibility and advisability of senior officer exchanges 

between the Armed Forces of the United States and the military forces of Taiwan (sec. 1210) ................................................... 705

Report on United States force structure in the Pacific (sec. 1211) 705

Legislative Provisions Not Adopted ................................................................ 706

Additional countries covered by loan guarantee program .............. 706

Arctic and Western Pacific Environmental Cooperation Program . 706

Department of Defense HIV/AIDS Prevention Assistance Program ................................................................................................. 706

Limitation on number of military personnel in Colombia .............. 706

Russian tactical nuclear weapons ..................................................... 707

TITLE XIII—COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER

SOVIET UNION ....................................................................................................... 707

Items of Special Interest .................................................................................. 707

Weapons of Mass Destruction Proliferation Prevention Program 

of the Cooperative Threat Reduction program with the States 

of the Former Soviet Union ........................................................... 707

Legislative Provisions Adopted ........................................................................ 708

Page

XVI

TITLE XIII—COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER

SOVIET UNION—Continued

Legislative Provisions Adopted—Continued

Specification of Cooperative Threat Reduction programs and 

funds (sec. 1301) ............................................................................. 708

Funding allocations (sec. 1302) ......................................................... 708

Prohibition against use of funds until submission of reports (sec. 

1303) ................................................................................................ 708

Report on use of revenue generated by activities carried out 

under Cooperative Threat Reduction programs (sec. 1304) ........ 708

Prohibition against use of funds for second wing of fissile materials storage facility (sec. 1305) ..................................................... 709

Limited waiver of restrictions on use of funds for threat reduction in states of the former Soviet Union (sec. 1306) .................. 709

Legislative Provisions Not Adopted ................................................................ 710

Prohibition against use of Cooperative Threat Reduction funds 

outside the States of the former Soviet Union ............................. 710

TITLE XIV—HOMELAND SECURITY .......................................................................... Legislative Provisions Adopted ........................................................................ 710

Transfer of technology items and equipment in support of homeland security (sec. 1401) ................................................................. 710

Comprehensive plan for improving the preparedness of military 

installations for terrorist incidents (sec. 1402) ............................ 711

Additional Weapons of Mass Destruction Civil Support Teams 

(sec. 1403) ........................................................................................ 711

Report on the role of the Department of Defense in supporting 

homeland security (sec. 1404) ........................................................ 712

Sense of Congress on Department of Defense assistance to local 

first responders (sec. 1405) ............................................................ 712

Legislative Provisions Not Adopted ................................................................ 712

Additional weapons of mass destruction civil support teams ......... 712

TITLE XV—AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM . 712

Legislative Provisions Adopted ........................................................................ 712

Authorization of appropriations for continued operations for the 

war on terrorism (secs. 1501–1508) .............................................. 712

Legislative Provisions Not Adopted ................................................................ 714

Air Force procurement ....................................................................... 714

Army procurement ............................................................................. 714

Authority for joint task forces to provide support to law enforcement agencies conducting counter-terrorism activities ............... 714

Authorized military construction and land acquisition projects .... 714

Defense-Wide Activities procurement ............................................... 715

Effective date ...................................................................................... 715

Increase in amount of death gratuity ............................................... 715

Increase in rate for career enlisted flyer incentive pay .................. 715

Increase in rate for diving duty special pay .................................... 715

Increase in rate for family separation allowance ............................ 715

Increase in rate for imminent danger pay ....................................... 716

Increase in rates for various hazardous duty incentive pays ......... 716

Military personnel .............................................................................. 716

Navy and Marine Corps procurement .............................................. 716

Operation and Maintenance .............................................................. 716

Research, Development, Test and Evaluation, Defense-wide ......... 716

DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS ................... 717

Overview ............................................................................................. 717

Short title (sec. 2001) ......................................................................... 740

TITLE XXI—ARMY .................................................................................................... 740

Overview ............................................................................................. 740

Items of Special Interest .................................................................................. 740

Fort Bliss, Texas ................................................................................ 740

Fort Dix, New Jersey ......................................................................... 740

Legislative Provisions Adopted ........................................................................ 740

Authorized Army construction and land acquisition projects (sec. 

2101) ................................................................................................ 740

Family housing (sec. 2102) ................................................................ 740

Improvements to military family housing units (sec. 2103) ........... 741

Authorization of appropriations, Army (sec. 2104) .......................... 741

Modification of authority to carry out certain fiscal year 2002 

projects (sec. 2105) .......................................................................... 741

Page

XVII

TITLE XXI—ARMY—Continued

Legislative Provisions Adopted—Continued

Modification of authority to carry out certain fiscal year 2001 

project (sec. 2106) ........................................................................... 741

Legislative Provisions Not Adopted ................................................................ 742

Planning and design for anechoic chamber at White Sands Missile Range, New Mexico ................................................................. 742

TITLE XXII—NAVY ................................................................................................... 742

Overview ............................................................................................. 742

Legislative Provisions Adopted ........................................................................ 742

Authorized Navy construction and land acquisition projects (sec. 

2201) ................................................................................................ 742

Family housing (sec. 2202) ................................................................ 742

Improvements to military family housing units (sec. 2203) ........... 742

Authorization of appropriations, Navy (sec. 2204) .......................... 743

Modification of authority to carry out certain fiscal year 2002 

projects (sec. 2205) .......................................................................... 743

TITLE XXIII—AIR FORCE ......................................................................................... 743

Overview ............................................................................................. 743

Legislative Provisions Adopted ........................................................................ 743

Authorized Air Force construction and land acquisition projects 

(sec. 2301) ........................................................................................ 743

Family housing (sec. 2302) ................................................................ 744

Improvements to military family housing units (sec. 2303) ........... 744

Authorization of appropriations, Air Force (sec. 2304) ................... 744

Authority for use of military construction funds for construction 

of public road near Aviano Air Base, Italy, to replace road 

closed for force protection purposes (sec. 2305) ........................... 744

Legislative Provisions Not Adopted ................................................................ 744

Additional project authorization for air traffic control facility at 

Dover Air Force Base, Delaware ................................................... 744

Availability of funds for consolidation of materials computational 

research facility at Wright-Patterson Air Force Base, Ohio ....... 745

TITLE XXIV—DEFENSE AGENCIES .......................................................................... 745

Overview ............................................................................................. 745

Legislative Provisions Adopted ........................................................................ 745

Authorized Defense Agencies construction and land acquisition 

projects (sec. 2401) .......................................................................... 745

Improvements to military family housing units (sec. 2402) ........... 745

Energy conservation projects (sec. 2403) .......................................... 746

Authorization of appropriations, Defense Agencies (sec. 2404) ...... 746

Modification of authority to carry out certain fiscal year 2000 

project (sec. 2405) ........................................................................... 746

Modification of authority to carry out certain fiscal year 1999 

project (sec. 2406) ........................................................................... 746

Modification of authority to carry out certain fiscal year 1997 

project (sec. 2407) ........................................................................... 746

TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT

PROGRAM ............................................................................................................... 747

Authorized NATO construction and land acquisition projects (sec. 

2501) ................................................................................................ 747

Authorization of appropriations, NATO (sec. 2502) ........................ 747

TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES ....................................... 747

Overview ............................................................................................. 747

Items of Special Interest .................................................................................. 747

Planning and design, Army National Guard ................................... 747

Legislative Provisions Adopted ........................................................................ 748

Authorized Guard and Reserve construction and land acquisition 

projects (sec. 2601) .......................................................................... 748

Legislative Provisions Not Adopted ................................................................ 748

Army National Guard Reserve Center, Lane County, Oregon ....... 748

Additional project authorization for composite support facility 

for Illinois Air National Guard ...................................................... 748

TITLE XXVII—EXPIRATION AND EXTENSION OF AUTHORIZATIONS ........................ 748

Legislative Provisions Adopted ........................................................................ 748

Expiration of authorizations and amounts required to be specified by law (sec. 2701) .................................................................... 748

Extension of authorizations of certain fiscal year 2000 projects 

(sec. 2702) ........................................................................................ 749

Page

XVIII

TITLE XXVII—EXPIRATION AND EXTENSION OF AUTHORIZATIONS—Continued

Legislative Provisions Adopted—Continued

Extension of authorizations of certain fiscal year 1999 projects 

(sec. 2703) ........................................................................................ 749

Legislative Provisions Not Adopted ................................................................ 749

Effective date ...................................................................................... 749

TITLE XXVIII—GENERAL PROVISIONS .................................................................... 749

Items of Special Interest .................................................................................. 749

Blount Island, Jacksonville, Florida ................................................. 749

Legislative Provisions Adopted ........................................................................ 750

Subtitle A—Military Construction Program and Military Family 

Housing Changes ................................................................................... 750

Leasing of military family housing in Korea (sec. 2801) ................ 750

Modification of alternative authority for acquisition and improvement of military housing (sec. 2802) ............................................. 750

Pilot housing privatization authority for acquisition or construction of military unaccompanied housing (sec. 2803) .................... 751

Repeal of source requirements for family housing construction 

overseas (sec. 2804) ........................................................................ 751

Availability of energy cost savings realized at military installations (sec. 2805) .............................................................................. 751

Subtitle B—Real Property and Facilities Administration ..................... 751

Agreements to limit encroachments and other constraints on 

military training, testing, and operations (sec. 2811) ................. 751

Conveyance of surplus real property for natural resource conservation purposes (sec. 2812) ....................................................... 752

Modification of demonstration program on reduction in long-term 

facility maintenance costs (sec. 2813) ........................................... 752

Expanded authority to transfer property at military installations 

to be closed to persons who construct or provide military family housing (sec. 2814) .................................................................... 753

Subtitle C—Land Conveyances ................................................................ 753

Transfer of jurisdiction, Fort McClellan, Alabama, to establish 

Mountain Longleaf National Wildlife Refuge (sec. 2821) ............ 753

Land conveyances, lands in Alaska no longer required for National Guard purposes (sec. 2822) ................................................. 753

Land conveyance, Sunflower Army Ammunition Plant, Kansas 

(sec. 2823) ........................................................................................ 753

Land conveyances, Bluegrass Army Depot, Richmond, Kentucky 

(sec. 2824) ........................................................................................ 754

Land conveyance, Fort Campbell, Kentucky (sec. 2825) ................. 754

Land conveyance, Army Reserve Training Center, Buffalo, Minnesota (sec. 2826) ............................................................................ 755

Land conveyance, Fort Monmouth, New Jersey (sec. 2827) ........... 755

Land conveyance, Fort Bliss, Texas (sec. 2828) ............................... 755

Land conveyance, Fort Hood, Texas (sec. 2829) .............................. 756

Land conveyances, Engineer Proving Ground, Fort Belvoir, Virginia (sec. 2830) .............................................................................. 756

Land conveyance, Marine Corps Air Station, Miramar, San 

Diego, California (sec. 2831) .......................................................... 756

Modification of authority for land transfer and conveyance, Naval 

Security Group Activity, Winter Harbor, Maine (sec. 2832) ....... 757

Land conveyance, Westover Air Reserve Base, Massachusetts 

(sec. 2833) ........................................................................................ 757

Land conveyance, Naval Station, Newport, Rhode Island (sec. 

2834) ................................................................................................ 757

Land exchange and boundary adjustments, Marine Corps Base, 

Quantico, and Prince William Forest Park, Virginia (sec. 2835) 758

Modification of land conveyance, Los Angeles Air Force Base, 

California (sec. 2841) ...................................................................... 758

Land exchange, Buckley Air Force Base, Colorado (sec. 2842) ...... 758

Land conveyances, Wendover Air Force Base Auxiliary Field, 

Nevada (sec. 2843) .......................................................................... 759

Subtitle D—Other Matters ....................................................................... 759

Master plan for use of Navy Annex, Arlington, Virginia (sec. 

2851) ................................................................................................ 759

Sale of excess treated water and wastewater treatment capacity, 

Marine Corps Base, Camp Lejeune, North Carolina (sec. 2852) 759

Page

XIX

TITLE XXVIII—GENERAL PROVISIONS—Continued

Legislative Provisions Adopted—Continued

Subtitle D—Other Matters—Continued

Conveyance of real property, Adak Naval Complex, Alaska, and 

related land conveyances (sec. 2853) ............................................ 759

Special requirement for adding military installation to closure 

list (sec. 2854) ................................................................................. 760

Legislative Provisions Not Adopted ................................................................ 760

Easement for construction of roads or highways, Marine Corps 

Base, Camp Pendleton, California ................................................ 760

Land acquisition, Boundary Channel Drive Site, Arlington ........... 761

National emergency exemption from screening and other requirements of McKinney-Vento Homeless Assistance Act for property used in support of response activities ................................... 761

Transfer of funds for acquisition of replacement property for 

National Wildlife Refuge system lands in Nevada ...................... 761

DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS ...................................... 761

TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS ............ 761

Overview ............................................................................................. 761

Items of Special Interest .................................................................................. 782

Management of the National Nuclear Security Administration .... 782

Legislative Provisions Adopted ........................................................................ 782

Subtitle A—National Security Programs ................................................ 782

Authorizations .................................................................................... 782

National Nuclear Security Administration (sec. 3101) ................... 782

Defense environmental management (sec. 3102) ............................ 783

Other defense activities (sec. 3103) .................................................. 784

Defense nuclear waste disposal (sec. 3104) ...................................... 784

Subtitle B—Program Authorizations, Restrictions, and Limitations .... 784

Annual assessments and reports to the President and Congress 

regarding the condition of the United States nuclear weapons 

stockpile (sec. 3141) ........................................................................ 784

Plans for achieving enhanced readiness posture for resumption 

by the United States of underground nuclear weapons tests 

(sec. 3142) ........................................................................................ 785

Requirements for specific request for new or modified nuclear 

weapons (sec. 3143) ........................................................................ 786

Database to track notification and resolution phases of Significant Finding Investigations (sec. 3144) ........................................ 786

Defense environmental management cleanup reform program 

(sec. 3145) ........................................................................................ 787

Limitation on obligation of funds for Robust Nuclear Earth Penetrator program pending submission of report (sec. 3146) ........... 787

Subtitle C—Proliferation Matters ............................................................ 788

Transfer to National Nuclear Security Administration of Department of Defense’s Cooperative Threat Reduction program relating to elimination of weapons grade plutonium production in 

Russia (sec. 3151) ........................................................................... 788

Repeal of requirement for reports on obligation of funds for programs on fissile materials in Russia (sec. 3152) .......................... 789

Expansion of annual reports on status of nuclear materials protection, control, and accounting programs (sec. 3153) ................. 789

Testing of preparedness for emergencies involving nuclear, radiological, chemical, or biological weapons (sec. 3154) ..................... 789

Cooperative program on research, development, and demonstration of technology regarding nuclear or radiological terrorism 

(sec. 3155) ........................................................................................ 789

Matters relating to the International Materials Protection, Control, and Accounting program of the Department of Energy 

(sec. 3156) ........................................................................................ 790

Accelerated disposition of highly enriched uranium (sec. 3157) .... 791

Strengthened international security for nuclear materials and 

security of nuclear operations (sec. 3158) ..................................... 792

Export control programs (sec. 3159) ................................................. 793

Plan for accelerated return of weapons-usable nuclear material 

(Sec. 3160) ....................................................................................... 793

Sense of Congress on amendment of Convention on Physical 

Protection of Nuclear Materials (sec. 3161) ................................. 794

Page

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TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS—Continued

Legislative Provisions Adopted—Continued

Subtitle C—Proliferation Matters—Continued

Sense of Congress on program to secure stockpiles of highly 

enriched uranium and plutonium (sec. 3162) .............................. 794

Subtitle D—Other Matters ....................................................................... 795

Indemnification of Department of Energy contractors (sec. 3171) . 795

Support for public education in the vicinity of Los Alamos National Laboratory, New Mexico (sec. 3172) ................................... 795

Worker health and safety rules for Department of Energy nuclear facilities (sec. 3173) ............................................................... 796

Extension of authority to appoint certain scientific, engineering, 

and technical personnel (sec. 3174) ............................................... 797

One-year extension of panel to assess the reliability, safety, and 

security of the United States nuclear stockpile (sec. 3175) ........ 797

Report on status of environmental management initiatives to 

accelerate the reduction of environmental risks and challenges 

posed by the legacy of the Cold War (sec. 3176) .......................... 797

Subtitle E—Disposition of Weapons-Usable Plutonium at Savannah 

River, South Carolina ............................................................................ 798

Findings (sec. 3181) ........................................................................... 798

Disposition of weapons-usable plutonium at Savannah River Site 

(sec. 3182) ........................................................................................ 798

Study of facilities for storage of plutonium and plutonium materials at Savannah River Site (sec. 3183) ...................................... 799

Legislative Provisions Not Adopted ................................................................ 799

Availability of funds for environmental management cleanup reform .................................................................................................. 799

Disposition of plutonium in Russia .................................................. 800

Improvements to nuclear materials protection, control, and accounting program of the Russian Federation ............................... 801

One-year extension of authority of Department of Energy to pay 

voluntary separation incentive payments .................................... 801

Prohibition on development of low-yield nuclear weapon ............... 801

Requirement for authorization by law for funds obligated or expended for Department of Energy national security activities ... 802

Utilization of Department of Energy national laboratories and 

sites in support of counterterrorism and homeland security 

activities .......................................................................................... 802

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD ............................. 802

Legislative Provisions Adopted ........................................................................ 802

Authorization (sec. 3201) ................................................................... 802

Legislative Provisions Not Adopted ................................................................ 802

Authorization of appropriations for the formerly used sites remedial action program of the Corps of Engineers ............................ 802

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE .................................................... 803

Legislative Provisions Adopted ........................................................................ 803

Authorized uses of National Defense Stockpile funds (sec. 3301) .. 803

TITLE XXXIV—NAVAL PETROLEUM RESERVES ....................................................... 803

Legislative Provisions Adopted ........................................................................ 803

Authorization of appropriations (sec. 3401) ..................................... 803

TITLE XXXV—MARITIME ADMINISTRATION ............................................................ 803

Legislative Provisions Adopted ........................................................................ 803

Authorization of appropriations for fiscal year 2003 (sec. 3501) .... 803

Authority to convey vessel USS SPHINX (ARL–24) (sec. 3502) .... 803

Independent analysis of title XI insurance guarantee applications 

(sec. 3503) ........................................................................................ 803

Preparation as artificial reefs and scrapping of obsolete vessels 

(sec. 3504) ........................................................................................ 804

TITLE XXXVI—ATOMIC ENERGY DEFENSE PROVISIONS ........................................ 804

Short title (sec. 3601) ......................................................................... 804

Legislative Provisions Adopted ........................................................................ 805

Subtitle A—[Reserved] .............................................................................. 805

Subtitle B—Department of Energy National Security Authorization 

General Provisions ................................................................................. 805

Definitions (sec. 3620) ........................................................................ 805

Reprogramming (sec. 3621) ............................................................... 805

Page

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TITLE XXXVI—ATOMIC ENERGY DEFENSE PROVISIONS—Continued

Legislative Provisions Adopted—Continued

Subtitle B—Department of Energy National Security Authorization 

General Provisions—Continued

Minor construction projects (sec. 3622) ............................................ 805

Limits on construction projects (sec. 3623) ...................................... 806

Fund transfer authority (sec. 3624) .................................................. 806

Conceptual and construction design (sec. 3625) .............................. 806

Authority for emergency planning, design, and construction activities (sec. 3626) ........................................................................... 806

Scope of authority to carry out plant projects (sec. 3627) ............... 807

Availability of funds (sec. 3628) ........................................................ 807

Transfer of defense environmental management funds (sec. 

3629) ................................................................................................ 807

Transfer of weapons activities funds (sec. 3630) ............................. 808

Funds available for all national security programs of the Department of Energy (sec. 3631) ............................................................ 808

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–772 

BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT FOR 

FISCAL YEAR 2003

NOVEMBER 12, 2002.—Ordered to be printed 

Mr. STUMP, from the committee of conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 4546] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the House to the amendment of 

the Senate to the bill (H.R. 4546), to authorize appropriations for 

fiscal year 2003 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal 

year for the Armed Forces, and for other purposes, having met, 

after full and free conference, have agreed to recommend and do 

recommend to their respective Houses as follows: 

That the Senate recede from its disagreement to the amendment of the House and agree to the same with an amendment as 

follows: 

In lieu of the matter proposed to be inserted by the House 

amendment, insert the following:

SECTION 1. SHORT TITLE; FINDINGS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Bob Stump 

National Defense Authorization Act for Fiscal Year 2003’’. 

(b) FINDINGS.—Congress makes the following findings: 

(1) Representative Bob Stump of Arizona was elected to the 

House of Representatives in 1976 for service in the 95th Congress, after serving in the Arizona legislature for 18 years and 

serving as President of the Arizona State Senate from 1975 to 

1976, and he has been reelected to each subsequent Congress. 

(2) A World War II combat veteran, Representative Stump 

entered service in the United States Navy in 1943, just after his 

16th birthday, and served aboard the USS LUNGA POINT and 

the USS TULAGI, which participated in the invasions of 

Luzon, Iwo Jima, and Okinawa. 

2

(3) Representative Stump was elected to the Committee on 

Armed Services in 1978 and has served on nearly all of its subcommittees and panels during 25 years of distinguished service 

on the committee. He has served as chairman of the committee 

during the 107th Congress and has championed United States 

national security as the paramount function of the Federal Government. 

(4) Also serving on the Committee on Veterans’ Affairs of 

the House of Representatives, chairing that committee from 

1995 to 2000, and serving on the Permanent Select Committee 

on Intelligence of the House of Representatives, including service as the ranking minority member in 1985 and 1986, Representative Stump has dedicated his entire congressional career 

to steadfastly supporting America’s courageous men and women 

in uniform both on and off the battlefield. 

(5) Representative Stump’s tireless efforts on behalf of those 

in the military and veterans have been recognized with numerous awards for outstanding service from active duty and reserve 

military, veterans’ service, military retiree, and industry organizations. 

(6) During his tenure as chairman of the Committee on 

Armed Services of the House of Representatives, Representative 

Stump has—(A) overseen the largest sustained increase to defense 

spending since the Reagan administration; 

(B) led efforts to improve the quality of military life, including passage of the largest military pay raise since 

1982; 

(C) supported military retirees, including efforts to reverse concurrent receipt law and to save the Armed Forces 

Retirement Homes; 

(D) championed military readiness by defending military access to critical training facilities such Vieques, Puerto Rico, expanding the National Training Center at Ft. 

Irwin, California, and working to restore balance between 

environmental concerns and military readiness requirements; 

(E) reinvigorated efforts to defend America against ballistic missiles by supporting an increase in fiscal year 2002 

of nearly 50 percent above the fiscal year 2001 level for missile defense programs; and 

(F) honored America’s war heroes by expanding Arlington National Cemetery, establishing a site for the Air Force 

Memorial, and assuring construction of the World War II 

Memorial. 

(7) In recognition of his long record of accomplishments in 

enhancing the national security of the United States and his 

legislative victories on behalf of active duty service members, reservists, guardsmen, and veterans, it is altogether fitting and 

proper that this Act be named in honor of Representative Bob 

Stump of Arizona, as provided in subsection (a).

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. 

3

(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; findings. 

Sec. 2. Organization of Act into divisions; table of contents. 

Sec. 3. Congressional defense committees defined.

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. Defense Inspector General. 

Sec. 106. Chemical Agents and Munitions Destruction, Defense. 

Sec. 107. Defense health programs. 

Subtitle B—Army Programs 

Sec. 111. Pilot program on sales of manufactured articles and services of certain 

Army industrial facilities without regard to availability from domestic 

sources.

Sec. 112. Report on impact of Army aviation modernization plan on the Army National Guard. 

Sec. 113. Family of Medium Tactical Vehicles. 

Subtitle C—Navy Programs 

Sec. 121. Extension of multiyear procurement authority for DDG–51 class destroyers. 

Sec. 122. Sense of Congress on scope of conversion program for Ticonderoga-class 

cruisers. 

Sec. 123. Continuation of contract for operation of Champion-class T–5 fuel tanker 

vessels. 

Subtitle D—Air Force Programs 

Sec. 131. Multiyear procurement authority for C–130J aircraft program. 

Sec. 132. Pathfinder programs. 

Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease pilot program. 

Subtitle E—Other Programs 

Sec. 141. Destruction of existing stockpile of lethal chemical agents and munitions. 

Sec. 142. Report on unmanned aerial vehicle systems. 

Sec. 143. Global Information Grid system. 

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. 

Sec. 203. Defense health programs. 

Subtitle B—Program Requirements, Restrictions, and Limitations 

Sec. 211. RAH–66 Comanche aircraft program. 

Sec. 212. Extension of requirements relating to management responsibility for naval 

mine countermeasures programs. 

Sec. 213. Revised requirements for plan for Manufacturing Technology Program. 

Sec. 214. Advanced SEAL Delivery System. 

Sec. 215. Army experimentation program regarding design of the objective force. 

Sec. 216. Program to provide Army with self-propelled Future Combat Systems nonline-of-sight cannon indirect fire capability for the objective force. 

Sec. 217. Prohibition on transfer of Medical Free Electron Laser program. 

Sec. 218. Littoral combat ship program. 

4

Subtitle C—Ballistic Missile Defense 

Sec. 221. Report requirements relating to ballistic missile defense programs. 

Sec. 222. Responsibility of Missile Defense Agency for research, development, test, 

and evaluation related to system improvements of programs transferred 

to military departments. 

Sec. 223. Limitation on obligation of funds for Theater High Altitude Area Defense 

Program pending submission of required life-cycle cost information. 

Sec. 224. Provision of information on flight testing of Ground-based Midcourse National Missile Defense system. 

Sec. 225. References to new name for Ballistic Missile Defense Organization. 

Sec. 226. One-year limitation on use of funds for nuclear armed interceptors. 

Subtitle D—Improved Management of Department of Defense Test and 

Evaluation Facilities 

Sec. 231. Department of Defense Test Resource Management Center. 

Sec. 232. Objective for institutional funding of test and evaluation facilities. 

Sec. 233. Uniform financial management system for Department of Defense test and 

evaluation facilities. 

Sec. 234. Test and evaluation workforce improvements. 

Sec. 235. Compliance with testing requirements. 

Subtitle E—Other Matters 

Sec. 241. Pilot programs for revitalizing Department of Defense laboratories. 

Sec. 242. Technology Transition Initiative. 

Sec. 243. Defense Acquisition Challenge Program.

Sec. 244. Encouragement of small businesses and nontraditional defense contractors 

to submit proposals potentially beneficial for combating terrorism. 

Sec. 245. Vehicle fuel cell program. 

Sec. 246. Defense nanotechnology research and development program. 

Sec. 247. Activities of the Defense Experimental Program to Stimulate Competitive 

Research. 

Sec. 248. Four-year extension of authority of DARPA to award prizes for advanced 

technology achievements and additional authority of military departments and Defense Agencies to award prizes for achievements in promoting education. 

Sec. 249. Plan for five-year program for enhancement of measurement and signatures intelligence capabilities of the United States through incorporation 

of results of basic research on sensors. 

TITLE III—OPERATION AND MAINTENANCE 

Subtitle A—Authorization of Appropriations 

Sec. 301. Operation and maintenance funding. 

Sec. 302. Working capital funds. 

Sec. 303. Armed Forces Retirement Home. 

Sec. 304. Grant to National Guard Youth Foundation. 

Subtitle B—Environmental Provisions 

Sec. 311. Enhancement of authority on cooperative agreements for environmental 

purposes. 

Sec. 312. Single point of contact for policy and budgeting issues regarding 

unexploded ordnance, discarded military munitions, and munitions constituents. 

Sec. 313. Authority to carry out construction projects for environmental responses. 

Sec. 314. Procurement of environmentally preferable procurement items. 

Sec. 315. Incidental taking of migratory birds during military readiness activities. 

Subtitle C—Commissaries and Nonappropriated Fund Instrumentalities 

Sec. 321. Authority for each military department to provide base operating support 

to Fisher Houses. 

Sec. 322. Use of commissary stores and MWR retail facilities by members of National Guard serving in national emergency. 

Sec. 323. Uniform funding and management of morale, welfare, and recreation programs. 

Sec. 324. Rebate agreements under the special supplemental food program. 

5

Subtitle D—Workplace and Depot Issues 

Sec. 331. Notification requirements in connection with required studies for conversion of commercial or industrial type functions to contractor performance. Sec. 332. Temporary authority for contractor performance of security-guard functions to meet increased requirements since September 11, 2001. 

Sec. 333. Repeal of obsolete provision regarding depot-level maintenance and repair 

workloads that were performed at closed or realigned military installations. 

Sec. 334. Exclusion of certain expenditures from limitation on private sector performance of depot-level maintenance. 

Subtitle E—Defense Dependents Education 

Sec. 341. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees. 

Sec. 342. Housing benefits for unaccompanied teachers required to live at Guantanamo Bay Naval Station, Cuba. 

Sec. 343. Options for funding dependent summer school programs. 

Sec. 344. Impact aid eligibility for local educational agencies affected by privatization of military housing. 

Sec. 345. Comptroller General study of adequacy of compensation provided for 

teachers in the Department of Defense Overseas Dependents’ Schools. 

Subtitle F—Information Technology 

Sec. 351. Annual submission of information regarding information technology capital assets. 

Sec. 352. Policy regarding acquisition of information assurance and information assurance-enabled information technology products. 

Sec. 353. Installation and connection policy and procedures regarding Defense 

Switch Network. 

Subtitle G—Other Matters 

Sec. 361. Distribution of monthly reports on allocation of funds within operation 

and maintenance budget subactivities. 

Sec. 362. Continuation of arsenal support program initiative. 

Sec. 363. Extension of work safety demonstration program. 

Sec. 364. Condition on authority of Defense Security Service to impose fees on feefor-service basis. 

Sec. 365. Logistics support and services for weapon systems contractors. 

Sec. 366. Training range sustainment plan, Global Status of Resources and Training System, and training range inventory. 

Sec. 367. Engineering study and environmental analysis of road modifications in vicinity of Fort Belvoir, Virginia. 

Sec. 368. Reauthorization of warranty claims recovery pilot program. 

Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, historical artifacts, and condemned or obsolete combat materiel. 

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 

Subtitle A—Active Forces 

Sec. 401. End strengths for active forces. 

Sec. 402. Revision in permanent end strength minimum levels. 

Sec. 403. Expanded authority for administrative increases in statutory active-duty 

end strengths. 

Sec. 404. General and flag officer management. 

Sec. 405. Extension of certain authorities relating to management of numbers of general and flag officers in certain grades. 

Sec. 406. Increase in authorized strengths for Marine Corps officers on active duty 

in the grade of colonel. 

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 2003 limitation on non-dual status technicians.

Subtitle C—Authorization of Appropriations 

Sec. 421. Authorization of appropriations for military personnel. 

6

TITLE V—MILITARY PERSONNEL POLICY 

Subtitle A—Officer Personnel Policy 

Sec. 501. Extension of good-of-the-service waiver authority for officers appointed to 

a Reserve Chief or Guard Director position. 

Sec. 502. Exclusion of certain officers from limitation on authority to grant a waiver 

of required completion or sequencing for joint professional military education. 

Sec. 503. Extension and codification of authority for recall of retired aviators to active duty. 

Sec. 504. Grades for certain positions. 

Sec. 505. Reinstatement of authority to reduce three-year time-in-grade requirement 

for retirement in grade for officers in grades above major and lieutenant 

commander. 

Sec. 506. Authority to require that an officer take leave pending review of a recommendation for removal by a board of inquiry. 

Subtitle B—Reserve Component Management 

Sec. 511. Reviews of National Guard strength accounting and management and 

other issues. 

Sec. 512. Courts-martial for the National Guard when not in Federal service. 

Sec. 513. Fiscal year 2003 funding for military personnel costs of reserve component 

Special Operations Forces personnel engaged in humanitarian assistance activities relating to clearing of landmines. 

Sec. 514. Use of Reserves to perform duties relating to defense against terrorism. 

Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR personnel for Air 

Force base security functions. 

Subtitle C—Reserve Component Officer Personnel Policy 

Sec. 521. Eligibility for consideration for promotion to grade of major general for 

certain reserve component brigadier generals who do not otherwise qualify for consideration for promotion under the one-year rule. 

Sec. 522. Authority for limited extension of medical deferment of mandatory retirement or separation of reserve component officers. 

Subtitle D—Enlistment, Education, and Training Programs 

Sec. 531. Enlistment incentives for pursuit of skills to facilitate national service. 

Sec. 532. Authority for phased increase to 4,400 in authorized strengths for the service academies. 

Sec. 533. Enhancement of reserve component delayed training program. 

Sec. 534. Review of Armed Forces programs for preparation for, participation in, 

and conduct of athletic competitions. 

Sec. 535. Repeal of bar to eligibility of Army College First program participants for 

benefits under student loan repayment program. 

Subtitle E—Decorations, Awards, and Commendations 

Sec. 541. Waiver of time limitations for award of Army Distinguished-Service Cross 

to certain persons. 

Sec. 542. Option to convert award of Armed Forces Expeditionary Medal awarded 

for Operation Frequent Wind to Vietnam Service Medal. 

Sec. 543. Korea Defense Service Medal. 

Sec. 544. Commendation of military chaplains. 

Subtitle F—Administrative Matters 

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing Personnel Office. 

Sec. 552. Three-year freeze on reductions of personnel of agencies responsible for review and correction of military records. 

Sec. 553. Authority for acceptance of voluntary services of individuals as proctors for 

administration of Armed Services Vocational Aptitude Battery test. 

Sec. 554. Extension of temporary early retirement authority. 

Subtitle G—Matters Relating to Minorities and Women in the Armed Forces 

Sec. 561. Surveys of racial and ethnic issues and of gender issues in the Armed 

Forces. 

Sec. 562. Annual report on status of female members of the Armed Forces. 

Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi Arabia. 

7

Subtitle H—Benefits 

Sec. 571. Department of Defense support for persons participating in military funeral honors details. 

Sec. 572. Emergency leave of absence program. 

Sec. 573. Enhanced flexibility in medical loan repayment program. 

Sec. 574. Destinations authorized for Government paid transportation of enlisted 

personnel for rest and recuperation absence upon extending duty at designated locations overseas. 

Sec. 575. Vehicle storage in lieu of transportation when member is ordered to a nonforeign duty station outside continental United States. 

Subtitle I—Reports 

Sec. 581. Quadrennial quality of life review. 

Sec. 582. Report on desirability and feasibility of consolidating separate courses of 

basic instruction for judge advocates. 

Sec. 583. Reports on efforts to resolve status of Captain Michael Scott Speicher, 

United States Navy. 

Sec. 584. Report on volunteer services of members of the reserve components in emergency response to the terrorist attacks of September 11, 2001. 

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 

Subtitle A—Pay and Allowances 

Sec. 601. Increase in basic pay for fiscal year 2003. 

Sec. 602. Basic allowance for housing in cases of low-cost or no-cost moves. 

Sec. 603. Rate of basic allowance for subsistence for enlisted personnel occupying 

single Government quarters without adequate availability of meals. 

Subtitle B—Bonuses and Special and Incentive Pays 

Sec. 611. One-year extension of certain bonus and special pay authorities for reserve 

forces. 

Sec. 612. One-year extension of certain bonus and special pay authorities for certain 

health care professionals. 

Sec. 613. One-year extension of special pay and bonus authorities for nuclear officers. 

Sec. 614. One-year extension of other bonus and special pay authorities.

Sec. 615. Increase in maximum rates for certain special pays, bonuses, and financial 

assistance for health care professionals. 

Sec. 616. Assignment incentive pay. 

Sec. 617. Increase in maximum rates for prior service enlistment bonus. 

Sec. 618. Retention incentives for health care professionals qualified in a critical 

military skill. 

Subtitle C—Travel and Transportation Allowances 

Sec. 621. Extension of leave travel deferral period for members performing consecutive overseas tours of duty. 

Sec. 622. Transportation of motor vehicles for members reported missing. 

Subtitle D—Retired Pay and Survivor Benefits 

Sec. 631. Permanent reduction from eight to six in number of years of reserve service 

required for eligibility for retired pay for non-regular service. 

Sec. 632. Increased retired pay for enlisted Reserves credited with extraordinary heroism. 

Sec. 633. Elimination of possible inversion in retired pay cost-of-living adjustment 

for initial COLA computation. 

Sec. 634. Technical revisions to so-called ‘‘forgotten widows’’ annuity program. 

Sec. 635. Expansion of authority of Secretary of Defense to waive time limitations 

on claims against the Government for military personnel benefits. 

Sec. 636. Special compensation for certain combat-related disabled uniformed services retirees. 

Subtitle E—Montgomery GI Bill 

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by members of 

the Selected Reserve. 

Sec. 642. Repayment requirements under Reserve Component Montgomery GI Bill 

arising from failure to participate satisfactorily in military service to be 

considered debts owed to the United States. 

8

Sec. 643. Technical adjustments to authority for certain members to transfer 

educational assistance under Montgomery GI Bill to dependents. 

Subtitle F—Other Matters 

Sec. 651. Payment of interest on student loans. 

Sec. 652. Additional authority to provide assistance for families of members of the 

Armed Forces. 

Sec. 653. Repeal of authority for acceptance of honoraria by personnel at certain Department of Defense schools. 

Sec. 654. Addition of definition of continental United States in title 37. 

TITLE VII—HEALTH CARE PROVISIONS 

Subtitle A—Health Care Program Improvements 

Sec. 701. Elimination of requirement for TRICARE preauthorization of inpatient 

mental health care for medicare-eligible beneficiaries. 

Sec. 702. Continued TRICARE eligibility of dependents residing at remote locations 

after departure of sponsors for unaccompanied assignments and eligibility of dependents of reserve component members ordered to active 

duty. 

Sec. 703. Eligibility of surviving dependents for TRICARE dental program benefits 

after discontinuance of former enrollment. 

Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care Fund. 

Sec. 705. Approval of medicare providers as TRICARE providers. 

Sec. 706. Technical corrections relating to transitional health care for members separated from active duty. 

Sec. 707. Extension of temporary authority to enter into personal services contracts 

for the performance of health care responsibilities at locations other 

than military medical treatment facilities. 

Sec. 708. Access to health care services for beneficiaries eligible for TRICARE and 

Department of Veterans Affairs health care. 

Sec. 709. Disclosure of information on Project 112 to Department of Veterans Affairs. 

Subtitle B—Reports 

Sec. 711. Claims information. 

Sec. 712. Comptroller General report on provision of care under the TRICARE program. 

Sec. 713. Repeal of report requirement. 

Subtitle C—Department of Defense-Department of Veterans Affairs Health 

Resources Sharing 

Sec. 721. Revised coordination and sharing guidelines. 

Sec. 722. Health care resources sharing and coordination project. 

Sec. 723. Report on improved coordination and sharing of health care and health 

care resources following domestic acts of terrorism or domestic use of 

weapons of mass destruction. 

Sec. 724. Interoperability of Department of Veterans Affairs and Department of Defense pharmacy data systems. 

Sec. 725. Joint pilot program for providing graduate medical education and training for physicians. 

Sec. 726. Repeal of certain limits on Department of Veterans Affairs resources. 

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND 

RELATED MATTERS 

Subtitle A—Acquisition Policy and Management 

Sec. 801. Buy-to-budget acquisition of end items. 

Sec. 802. Report to Congress on evolutionary acquisition of major defense acquisition programs. 

Sec. 803. Spiral development under major defense acquisition programs. 

Sec. 804. Improvement of software acquisition processes. 

Sec. 805. Performance goals for procuring services pursuant to multiple award contracts. 

Sec. 806. Rapid acquisition and deployment procedures. 

Sec. 807. Quick-reaction special projects acquisition team. 

9

Subtitle B—Amendments to General Contracting Authorities, Procedures, 

and Limitations 

Sec. 811. Limitation period for task and delivery order contracts. 

Sec. 812. One-year extension of program applying simplified procedures to certain 

commercial items; report. 

Sec. 813. Extension and improvement of personnel demonstration policies and procedures applicable to the civilian acquisition workforce. 

Sec. 814. Past performance given significant weight in renewal of procurement technical assistance cooperative agreements.

Sec. 815. Increased maximum amount of assistance for tribal organizations or economic enterprises carrying out procurement technical assistance programs in two or more service areas. 

Sec. 816. Extension of contract goal for small disadvantaged businesses and certain 

institutions of higher education. 

Sec. 817. Grants of exceptions to cost or pricing data certification requirements and 

waivers of cost accounting standards. 

Sec. 818. Timing of certification in connection with waiver of survivability and 

lethality testing requirements. 

Sec. 819. Contracting with Federal Prison Industries. 

Sec. 820. Revisions to multiyear contracting authority. 

Subtitle C—Acquisition-Related Reports and Other Matters 

Sec. 821. Evaluation of training, knowledge, and resources regarding negotiation of 

intellectual property arrangements. 

Sec. 822. Independent technology readiness assessments. 

Sec. 823. Extension and amendment of requirement for annual report on defense 

commercial pricing management improvement. 

Sec. 824. Assessment of purchases of products and services through contracts with 

other Federal departments and agencies. 

Sec. 825. Repeal of certain requirements and Comptroller General reviews of the requirements. 

Sec. 826. Multiyear procurement authority for purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products. 

Sec. 827. Multiyear procurement authority for environmental services for military 

installations. 

Sec. 828. Report on effects of Army Contracting Agency. 

Sec. 829. Authorization to take actions to correct the industrial resource shortfall for 

radiation-hardened electronics. 

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND 

MANAGEMENT 

Subtitle A—Duties and Functions of Department of Defense Officers 

Sec. 901. Under Secretary of Defense for Intelligence. 

Sec. 902. Reorganization of Office of Secretary of Defense for administration of duties relating to homeland defense and combating terrorism. 

Subtitle B—Space Activities 

Sec. 911. Oversight of acquisition for defense space programs. 

Sec. 912. Report regarding assured access to space for the United States. 

Subtitle C—Reports 

Sec. 921. Report on establishment of United States Northern Command. 

Sec. 922. Time for submittal of report on Quadrennial Defense Review. 

Sec. 923. National defense mission of Coast Guard to be included in future Quadrennial Defense Reviews. 

Sec. 924. Report on establishment of a Joint National Training Complex and joint 

opposing forces. 

Subtitle D—Other Matters 

Sec. 931. Authority to accept gifts for National Defense University. 

Sec. 932. Western Hemisphere Institute for Security Cooperation. 

Sec. 933. Conforming amendment to reflect disestablishment of Department of Defense Consequence Management Program Integration Office. 

Sec. 934. Increase in number of Deputy Commandants of the Marine Corps. 

10

TITLE X—GENERAL PROVISIONS 

Subtitle A—Financial Matters 

Sec. 1001. Transfer authority. 

Sec. 1002. Authorization of supplemental appropriations for fiscal year 2002. 

Sec. 1003. United States contribution to NATO common-funded budgets in fiscal 

year 2003. 

Sec. 1004. Development and implementation of financial management enterprise architecture. 

Sec. 1005. Accountable officials in the Department of Defense. 

Sec. 1006. Uniform standards throughout Department of Defense for exposure of 

personnel to pecuniary liability for loss of Government property. 

Sec. 1007. Improvements in purchase card management. 

Sec. 1008. Improvements in travel card management. 

Sec. 1009. Clearance of certain transactions recorded in Treasury suspense accounts 

and resolution of certain check issuance discrepancies. 

Sec. 1010. Authorization of funds for ballistic missile defense programs or combating terrorism programs of the Department of Defense. 

Sec. 1011. Reduction in overall authorization due to inflation savings. 

Subtitle B—Naval Vessels and Shipyards 

Sec. 1021. Number of Navy combatant surface vessels in active and reserve service. 

Sec. 1022. Annual long-range plan for the construction of naval vessels. 

Sec. 1023. Assessment of the feasibility of the expedited equipping of a Navy ship 

with a version of the 155-millimeter Advanced Gun System. 

Sec. 1024. Report on initiatives to increase operational days of Navy ships. 

Sec. 1025. Ship combat system industrial base. 

Sec. 1026. Sense of Congress concerning aircraft carrier force structure. 

Sec. 1027. Conveyance, Navy drydock, Portland, Oregon. 

Subtitle C—Strategic Matters 

Sec. 1031. Strategic force structure plan for nuclear weapons and delivery systems. 

Sec. 1032. Annual report on weapons to defeat hardened and deeply buried targets. 

Sec. 1033. Report on effects of nuclear earth-penetrator weapon and other weapons. 

Subtitle D—Reports 

Sec. 1041. Repeal and modification of various reporting requirements applicable to 

the Department of Defense. 

Sec. 1042. Requirement that Department of Defense reports to Congress be accompanied by electronic version. 

Sec. 1043. Annual report on the conduct of military operations conducted as part of 

Operation Enduring Freedom. 

Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs at military installations. 

Sec. 1045. Report on designation of certain Louisiana highway as Defense Access 

Road.

Subtitle E—Extension of Expiring Authorities 

Sec. 1051. Extension of authority for Secretary of Defense to sell aircraft and aircraft parts for use in responding to oil spills. 

Sec. 1052. Six-month extension of expiring Governmentwide information security requirements; continued applicability of expiring Governmentwide information security requirements to the Department of Defense. 

Sec. 1053. Two-year extension of authority of the Secretary of Defense to engage in 

commercial activities as security for intelligence collection activities 

abroad. 

Subtitle F—Other Matters 

Sec. 1061. Time for transmittal of annual defense authorization legislative proposal. 

Sec. 1062. Technical and clerical amendments. 

Sec. 1063. Use for law enforcement purposes of DNA samples maintained by Department of Defense for identification of human remains. 

Sec. 1064. Enhanced authority to obtain foreign language services during periods of 

emergency. 

Sec. 1065. Rewards for assistance in combating terrorism. 

Sec. 1066. Provision of space and services to military welfare societies. 

Sec. 1067. Prevention and mitigation of corrosion of military equipment and infrastructure. 

11

Sec. 1068. Transfer of historic DF–9E Panther aircraft to Women Airforce Service 

Pilots Museum. 

Sec. 1069. Increase in amount authorized to be expended for Department of Defense 

program to commemorate 50th anniversary of the Korean War. 

TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL 

Sec. 1101. Eligibility of Department of Defense nonappropriated fund employees for 

long-term care insurance. 

Sec. 1102. Extension of Department of Defense authority to make lump-sum severance payments. 

Sec. 1103. Continuation of Federal Employee Health Benefits Program eligibility. 

Sec. 1104. Certification for Department of Defense professional accounting positions. 

TITLE XII—MATTERS RELATING TO OTHER NATIONS 

Sec. 1201. Authority to provide administrative services and support for coalition liaison officers. 

Sec. 1202. Authority to pay for certain travel of defense personnel of countries participating in NATO Partnership for Peace program. 

Sec. 1203. Limitation on funding for Joint Data Exchange Center in Moscow. 

Sec. 1204. Support of United Nations-sponsored efforts to inspect and monitor Iraqi 

weapons activities. 

Sec. 1205. Comprehensive annual report to Congress on coordination and integration of all United States nonproliferation activities. 

Sec. 1206. Report requirement regarding Russian proliferation to Iran and other 

countries of proliferation concern. 

Sec. 1207. Monitoring of implementation of 1979 agreement between the United 

States and China on cooperation in science and technology. 

Sec. 1208. Extension of certain counterproliferation activities and programs. 

Sec. 1209. Semiannual report by Director of Central Intelligence on contributions by 

foreign persons to efforts by countries of proliferation concern to obtain 

weapons of mass destruction and their delivery systems. 

Sec. 1210. Report on feasibility and advisability of senior officer exchanges between 

the Armed Forces of the United States and the military forces of Taiwan. 

Sec. 1211. Report on United States force structure in the Pacific. 

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. Prohibition against use of funds until submission of reports. 

Sec. 1304. Report on use of revenue generated by activities carried out under Cooperative Threat Reduction programs. 

Sec. 1305. Prohibition against use of funds for second wing of fissile material storage facility. 

Sec. 1306. Limited waiver of restrictions on use of funds for threat reduction in 

states of the former Soviet Union. 

TITLE XIV—HOMELAND SECURITY 

Sec. 1401. Transfer of technology items and equipment in support of homeland security. 

Sec. 1402. Comprehensive plan for improving the preparedness of military installations for terrorist incidents. 

Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams. 

Sec. 1404. Report on the role of the Department of Defense in supporting homeland 

security. 

Sec. 1405. Sense of Congress on Department of Defense assistance to local first responders. 

TITLE XV—AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON 

TERRORISM 

Sec. 1501. Authorization of appropriations for continued operations for the war on 

terrorism. 

Sec. 1502. Mobilization and personnel. 

Sec. 1503. Operations. 

Sec. 1504. Equipment replacement and enhancement. 

Sec. 1505. Classified activities. 

Sec. 1506. Procurement of munitions. 

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Sec. 1507. Discretionary restoration of authorizations of appropriations reduced for 

management efficiencies. 

Sec. 1508. General provisions applicable to transfers.

DIVISION B—MILITARY CONSTRUCTION 

AUTHORIZATIONS

Sec. 2001. Short title. 

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. Modification of authority to carry out certain fiscal year 2002 projects. 

Sec. 2106. Modification of authority to carry out certain fiscal year 2001 projects. 

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. Modification of authority to carry out certain fiscal year 2002 projects. 

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. Authority for use of military construction funds for construction of public 

road near Aviano Air Base, Italy, to replace road closed for force protection purposes. 

TITLE XXIV—DEFENSE AGENCIES 

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects. 

Sec. 2402. Improvements to military family housing units. 

Sec. 2403. Energy conservation projects. 

Sec. 2404. Authorization of appropriations, Defense Agencies. 

Sec. 2405. Modification of authority to carry out certain fiscal year 2000 project. 

Sec. 2406. Modification of authority to carry out certain fiscal year 1999 project. 

Sec. 2407. Modification of authority to carry out certain fiscal year 1997 project. 

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 Guard and Reserve construction and land acquisition 

projects. 

TITLE XXVII—EXPIRATION AND EXTENSION OF AUTHORIZATIONS 

Sec. 2701. Expiration of authorizations and amounts required to be specified by law. 

Sec. 2702. Extension of authorizations of certain fiscal year 2000 projects. 

Sec. 2703. Extension of authorizations of certain fiscal year 1999 projects. 

TITLE XXVIII—GENERAL PROVISIONS 

Subtitle A—Military Construction Program and Military Family Housing 

Changes 

Sec. 2801. Lease of military family housing in Korea. 

Sec. 2802. Modification of alternative authority for acquisition and improvement of 

military housing. 

Sec. 2803. Pilot housing privatization authority for acquisition or construction of 

military unaccompanied housing. 

Sec. 2804. Repeal of source requirements for family housing construction overseas. 

Sec. 2805. Availability of energy cost savings realized at military installations. 

13

Subtitle B—Real Property and Facilities Administration 

Sec. 2811. Agreements to limit encroachments and other constraints on military 

training, testing, and operations. 

Sec. 2812. Conveyance of surplus real property for natural resource conservation 

purposes. 

Sec. 2813. Modification of demonstration program on reduction in long-term facility 

maintenance costs. 

Sec. 2814. Expanded authority to transfer property at military installations to be 

closed to persons who construct or provide military family housing. 

Subtitle C—Land Conveyances 

PART I—ARMY CONVEYANCES

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to establish Mountain 

Longleaf National Wildlife Refuge. 

Sec. 2822. Land conveyances, lands in Alaska no longer required for National 

Guard purposes. 

Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas. 

Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky. 

Sec. 2825. Land conveyance, Fort Campbell, Kentucky. 

Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, Minnesota. 

Sec. 2827. Land conveyance, Fort Monmouth, New Jersey. 

Sec. 2828. Land conveyance, Fort Bliss, Texas. 

Sec. 2829. Land conveyance, Fort Hood, Texas. 

Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, Virginia. 

PART II—NAVY CONVEYANCES

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San Diego, California. 

Sec. 2832. Modification of authority for land transfer and conveyance, Naval Security Group Activity, Winter Harbor, Maine. 

Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts. 

Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island. 

Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 

Quantico, and Prince William Forest Park, Virginia. 

PART III—AIR FORCE CONVEYANCES

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, California. 

Sec. 2842. Land exchange, Buckley Air Force Base, Colorado. 

Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, Nevada. 

Subtitle D—Other Matters 

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.

Sec. 2852. Sale of excess treated water and wastewater treatment capacity, Marine 

Corps Base, Camp Lejeune, North Carolina. 

Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and related 

land conveyances. 

Sec. 2854. Special requirement for adding military installation to closure list.

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 management. 

Sec. 3103. Other defense activities. 

Sec. 3104. Defense nuclear waste disposal. 

Subtitle B—Program Authorizations, Restrictions, and Limitations 

Sec. 3141. Annual assessments and reports to the President and Congress regarding 

the condition of the United States nuclear weapons stockpile. 

Sec. 3142. Plans for achieving enhanced readiness posture for resumption by the 

United States of underground nuclear weapons tests. 

14

Sec. 3143. Requirements for specific request for new or modified nuclear weapons. 

Sec. 3144. Database to track notification and resolution phases of Significant Finding Investigations. 

Sec. 3145. Defense environmental management cleanup reform program. 

Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth Penetrator 

program pending submission of report. 

Subtitle C—Proliferation Matters 

Sec. 3151. Transfer to National Nuclear Security Administration of Department of 

Defense’s Cooperative Threat Reduction program relating to elimination 

of weapons grade plutonium production in Russia. 

Sec. 3152. Repeal of requirement for reports on obligation of funds for programs on 

fissile materials in Russia. 

Sec. 3153. Expansion of annual reports on status of nuclear materials protection, 

control, and accounting programs. 

Sec. 3154. Testing of preparedness for emergencies involving nuclear, radiological, 

chemical, or biological weapons. 

Sec. 3155. Cooperative program on research, development, and demonstration of 

technology regarding nuclear or radiological terrorism. 

Sec. 3156. Matters relating to the International Materials Protection, Control, and 

Accounting program of the Department of Energy. 

Sec. 3157. Accelerated disposition of highly enriched uranium. 

Sec. 3158. Strengthened international security for nuclear materials and security of 

nuclear operations. 

Sec. 3159. Export control programs. 

Sec. 3160. Plan for accelerated return of weapons-usable nuclear materials. 

Sec. 3161. Sense of Congress on amendment of Convention on Physical Protection of 

Nuclear Materials. 

Sec. 3162. Sense of Congress on program to secure stockpiles of highly enriched uranium and plutonium. 

Subtitle D—Other Matters 

Sec. 3171. Indemnification of Department of Energy contractors. 

Sec. 3172. Support for public education in the vicinity of Los Alamos National Laboratory, New Mexico. 

Sec. 3173. Worker health and safety rules for Department of Energy nuclear facilities. 

Sec. 3174. Extension of authority to appoint certain scientific, engineering, and technical personnel. 

Sec. 3175. One-year extension of panel to assess the reliability, safety, and security 

of the United States nuclear stockpile. 

Sec. 3176. 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 E—Disposition of Weapons-Usable Plutonium at Savannah River, 

South Carolina 

Sec. 3181. Findings. 

Sec. 3182. Disposition of weapons-usable plutonium at Savannah River Site. 

Sec. 3183. Study of facilities for storage of plutonium and plutonium materials at 

Savannah River Site. 

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD 

Sec. 3201. Authorization. 

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE 

Sec. 3301. Authorized uses of National Defense Stockpile funds. 

TITLE XXXIV—NAVAL PETROLEUM RESERVES 

Sec. 3401. Authorization of appropriations. 

TITLE XXXV—MARITIME ADMINISTRATION 

Sec. 3501. Authorization of appropriations for fiscal year 2003. 

Sec. 3502. Authority to convey vessel USS SPHINX (ARL–24). 

Sec. 3503. Independent analysis of title XI insurance guarantee applications. 

Sec. 3504. Preparation as artificial reefs and scrapping of obsolete vessels. 

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TITLE XXXVI—ATOMIC ENERGY DEFENSE PROVISIONS 

Sec. 3601. Short title. 

Subtitle A—[Reserved] 

Subtitle B—Department of Energy National Security Authorizations General 

Provisions 

Sec. 3620. Definitions. 

Sec. 3621. Reprogramming. 

Sec. 3622. Minor construction projects. 

Sec. 3623. Limits on construction projects. 

Sec. 3624. Fund transfer authority. 

Sec. 3625. Conceptual and construction design. 

Sec. 3626. Authority for emergency planning, design, and construction activities. 

Sec. 3627. Scope of authority to carry out plant projects. 

Sec. 3628. Availability of funds. 

Sec. 3629. Transfer of defense environmental management funds. 

Sec. 3630. Transfer of weapons activities funds. 

Sec. 3631. Funds available for all national security programs of the Department of 

Energy.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED. 

For purposes of this Act, the term ‘‘congressional defense committees’’ means—

(1) the Committee on Armed Services and the Committee on 

Appropriations of the Senate; and 

(2) the Committee on Armed Services and the Committee on 

Appropriations of the House of Representatives.

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. Defense Inspector General. 

Sec. 106. Chemical Agents and Munitions Destruction, Defense. 

Sec. 107. Defense health programs. 

Subtitle B—Army Programs 

Sec. 111. Pilot program on sales of manufactured articles and services of certain 

Army industrial facilities without regard to availability from domestic 

sources.

Sec. 112. Report on impact of Army aviation modernization plan on the Army National Guard. 

Sec. 113. Family of Medium Tactical Vehicles. 

Subtitle C—Navy Programs 

Sec. 121. Extension of multiyear procurement authority for DDG–51 class destroyers. 

Sec. 122. Sense of Congress on scope of conversion program for Ticonderoga-class 

cruisers. 

Sec. 123. Continuation of contract for operation of Champion-class T–5 fuel tanker 

vessels. 

Subtitle D—Air Force Programs 

Sec. 131. Multiyear procurement authority for C–130J aircraft program. 

Sec. 132. Pathfinder programs. 

Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease pilot program. 

16

Subtitle E—Other Programs 

Sec. 141. Destruction of existing stockpile of lethal chemical agents and munitions. 

Sec. 142. Report on unmanned aerial vehicle systems. 

Sec. 143. Global Information Grid system.

Subtitle A—Authorization of 

Appropriations 

SEC. 101. ARMY. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for procurement for the Army as follows: 

(1) For aircraft, $2,186,296,000. 

(2) For missiles, $1,152,299,000. 

(3) For weapons and tracked combat vehicles, 

$2,276,751,000. 

(4) For ammunition, $1,229,533,000. 

(5) For other procurement, $5,857,814,000. 

SEC. 102. NAVY AND MARINE CORPS. 

(a) NAVY.—Funds are hereby authorized to be appropriated for 

fiscal year 2003 for procurement for the Navy as follows: 

(1) For aircraft, $8,979,275,000. 

(2) For weapons, including missiles and torpedoes, 

$2,375,349,000. 

(3) For shipbuilding and conversion, $9,111,023,000. 

(4) For other procurement, $4,494,754,000. 

(b) MARINE CORPS.—Funds are hereby authorized to be appropriated for fiscal year 2003 for procurement for the Marine Corps 

in the amount of $1,355,491,000. 

(c) NAVY AND MARINE CORPS AMMUNITION.—Funds are hereby 

authorized to be appropriated for fiscal year 2003 for procurement 

of ammunition for the Navy and the Marine Corps in the amount 

of $1,170,750,000. 

SEC. 103. AIR FORCE. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for procurement for the Air Force as follows: 

(1) For aircraft, $12,676,505,000. 

(2) For missiles, $3,504,139,000. 

(3) For ammunition, $1,290,764,000. 

(4) For other procurement, $10,846,048,000. 

SEC. 104. DEFENSE-WIDE ACTIVITIES. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for Defense-wide procurement in the amount of 

$3,691,604,000. 

SEC. 105. DEFENSE INSPECTOR GENERAL. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for procurement for the Inspector General of the Department 

of Defense in the amount of $2,000,000. 

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE. 

There is hereby authorized to be appropriated for fiscal year 

2003 the amount of $1,490,199,000 for—

17

(1) the destruction of lethal chemical agents and munitions 

in accordance with section 1412 of the Department of Defense 

Authorization Act, 1986 (50 U.S.C. 1521); and 

(2) the destruction of chemical warfare materiel of the 

United States that is not covered by section 1412 of such Act. 

SEC. 107. DEFENSE HEALTH PROGRAMS. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for the Department of Defense for procurement for carrying out 

health care programs, projects, and activities of the Department of 

Defense in the total amount of $278,742,000.

Subtitle B—Army Programs 

SEC. 111. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 

AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC SOURCES. 

(a) EXTENSION OF PROGRAM.—Subsection (a) of section 141 of 

the National Defense Authorization Act for Fiscal Year 1998 (Public 

Law 105–85; 10 U.S.C. 4543 note) is amended by striking ‘‘through 

2002’’ in the first sentence and inserting ‘‘through 2004’’. 

(b) USE OF OVERHEAD FUNDS MADE SURPLUS BY SALES.—Such 

section is further amended—

(1) by striking subsection (d); 

(2) by redesignating subsection (c) as subsection (d); and 

(3) by inserting after subsection (b) the following new subsection (c): 

‘‘(c) TRANSFER OF CERTAIN SUMS.—For each Army industrial 

facility participating in the pilot program that sells manufactured 

articles and services in a total amount in excess of $20,000,000 in 

any fiscal year, the amount equal to one-half of one percent of such 

total amount shall be transferred from the sums in the Army Working Capital Fund for unutilized plant capacity to appropriations 

available for the following fiscal year for the demilitarization of conventional ammunition by the Army.’’. 

(c) UPDATE OF INSPECTOR GENERAL’S REVIEW.—The Inspector 

General of the Department of Defense shall review the experience 

under the pilot program carried out under such section 141 and, not 

later than July 1, 2003, submit to Congress a report on the results 

of the review. The report shall contain the views, information, and 

recommendations called for under subsection (d) of such section (as 

redesignated by subsection (b)(2)). In carrying out the review and 

preparing the report, the Inspector General shall take into consideration the report submitted to Congress under such subsection (as so 

redesignated).

SEC. 112. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION 

PLAN ON THE ARMY NATIONAL GUARD. 

(a) REPORT BY CHIEF OF THE NATIONAL GUARD BUREAU.—The 

Chief of the National Guard Bureau shall submit to the Chief of 

Staff of the Army a report on the requirements for Army National 

Guard aviation. The report shall include the following: 

(1) An analysis of the impact of the Army Aviation Modernization Plan on the ability of the Army National Guard to 

conduct its aviation missions. 

18

(2) The plan under that aviation modernization plan for 

the transfer of aircraft from the active component of the Army 

to the Army reserve components, including a timeline for those 

transfers. 

(3) The progress, as of January 1, 2003, in carrying out the 

transfers under the plan referred to in paragraph (2). 

(4) An evaluation of the suitability and cost effectiveness of 

existing Commercial Off The Shelf light utility helicopters for 

performance of Army National Guard utility aviation missions. 

(b) COMMENTS AND RECOMMENDATIONS BY CHIEF OF STAFF OF

THE ARMY.—Not later than February 1, 2003, the Chief of Staff of 

the Army shall submit to the Committee on Armed Services of the 

Senate and the Committee on Armed Services of the House of Representatives the report received under subsection (a), together with 

any comments and recommendations that the Chief of Staff considers appropriate on the matters covered in the report.

SEC. 113. FAMILY OF MEDIUM TACTICAL VEHICLES. 

(a) MULTIYEAR PROCUREMENT AUTHORITY.—Beginning with the 

fiscal year 2003 program year, the Secretary of the Army may, in 

accordance with section 2306b of title 10, United States Code, enter 

into a multiyear contract for the procurement of vehicles under the 

Family of Medium Tactical Vehicles program, subject to subsection 

(b). 

(b) LIMITATION.—The Secretary of the Army may not enter into 

a multiyear contract for the procurement of vehicles in the Family 

of Medium Tactical Vehicles authorized by subsection (a) until the 

Secretary submits to the congressional defense committees a written 

certification that—

(1) all key performance parameters required in the initial 

operational test and evaluation for that program have been met; 

and 

(2) the total cost through the use of such multiyear contract 

of the procurement of the number of vehicles to be procured 

under such contract is at least 10 percent less than the total 

cost of the procurement of the same number of such vehicles 

through the use of successive one-year contracts. 

(c) WAIVER AUTHORITY.—The Secretary of Defense may waive 

subsection (b)(2) if the Secretary—

(1) determines that using a multiyear contract for the procurement of vehicles under the Family of Medium Tactical Vehicles program is in the national security interests of the United 

States; 

(2) certifies that the Army cannot achieve the savings specified in subsection (b)(2); and 

(3) submits to the congressional defense committees, in 

writing, a notification of the waiver together with a report describing the reasons why the use of a multiyear contract for 

such procurement is in the national security interests of the 

United States and why the Army cannot achieve a 10 percent 

savings of the total anticipated costs of carrying out the program through a multiyear contract.

19

Subtitle C—Navy Programs

SEC. 121. EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR 

DDG–51 CLASS DESTROYERS. 

Section 122(b) of the National Defense Authorization Act for 

Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2446), as amended 

by section 122 of Public Law 106–65 (113 Stat. 534) and section 

122(a) 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–24), is further amended by striking ‘‘October 1, 

2005’’ in the first sentence and inserting ‘‘October 1, 2007’’.

SEC. 122. SENSE OF CONGRESS ON SCOPE OF CONVERSION PROGRAM 

FOR TICONDEROGA-CLASS CRUISERS. 

It is the sense of Congress that the Secretary of the Navy should 

maintain the scope of the conversion program for the Ticonderoga 

class of cruisers so that the program—

(1) covers all 27 ships in that class of cruisers; and 

(2) provides for modernizing each of those ships to include 

an appropriate mix of upgrades to ships’ capabilities for theater 

missile defense, naval fire support, and air dominance.

SEC. 123. CONTINUATION OF CONTRACT FOR OPERATION OF CHAMPION-CLASS T–5 FUEL TANKER VESSELS. 

The Department of the Navy contract in effect on the date of the 

enactment of this Act for the operation of five Champion-class T–5 

fuel tanker vessels shall continue in effect with respect to the operation of each such vessel until the completion of the term of the contract or, if sooner for any such vessel, until the vessel is no longer 

used for purposes of the Military Sealift Command or any other 

Navy purpose.

Subtitle D—Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C–130J AIRCRAFT PROGRAM. 

(a) MULTIYEAR AUTHORITY.—Beginning with the fiscal year 

2003 program year, the Secretary of the Air Force may, in accordance with section 2306b of title 10, United States Code, enter into 

a multiyear contract for procurement of up to 40 C–130J aircraft in 

the CC–130J configuration and up to 24 C–130J aircraft in the KC–

130J configuration. Notwithstanding subsection (k) of such section, 

such a contract may be for a period of six program years. 

(b) LIMITATION.—The Secretary of the Air Force may not enter 

into a contract authorized by subsection (a) until—

(1) testing of the CC–130J aircraft for qualification for use 

in assault operations has been completed by the Air Force 

Flight Test Center; and 

(2) Block 5.3 software upgrades have been installed on all 

C–130J and CC–130J aircraft in the inventory of the Air Force.

SEC. 132. PATHFINDER PROGRAMS. 

(a) PATHFINDER PROGRAMS.—Not later than February 1, 2003, 

the Secretary of the Air Force shall submit to the congressional defense committees a list of Air Force programs that the Secretary has 

20

designated as acquisition reform pathfinder programs (hereinafter 

in this section referred to as ‘‘pathfinder programs’’). 

(b) OVERSIGHT OF PATHFINDER PROGRAMS.—The Secretary of 

Defense shall ensure that the Under Secretary of Defense for Acquisition, Technology and Logistics, the Director of Operational Test 

and Evaluation, and the Joint Requirements Oversight Council 

maintain oversight over each pathfinder program that qualifies as 

a major defense acquisition program under section 2430 of title 10, 

United States Code. 

(c) REPORT ON PATHFINDER PROGRAMS.—(1) Not later than 

March 15, 2003, the Secretary of the Air Force shall submit to the 

congressional defense committees a report on pathfinder programs. 

For each such program, the report shall include a description of the 

following: 

(A) The management approach for that program and how 

that approach will result in a disciplined, affordable and wellmanaged acquisition program. 

(B) The acquisition strategy for that program and how that 

acquisition strategy responds to approved operational requirements. 

(C) The test and evaluation plan for that program and how 

that plan will provide adequate assessment of each pathfinder 

program. 

(D) The manner in which the acquisition plan for that program considers cost, schedule, and technical risk. 

(E) The manner in which any innovative business practices 

developed as a result of participation in the program could be 

applied to other acquisition programs, and any impediments to 

application of such practices to other programs. 

(2) For each such program, the report shall also set forth the 

following: 

(A) The manner in which the Under Secretary of Defense 

for Acquisition, Technology, and Logistics will be involved in 

the development, oversight, and approval of the program’s management approach, acquisition strategy, and acquisition approach. 

(B) The manner in which the Director of Operational Test 

and Evaluation will be involved in the development, oversight, 

and approval of the program’s test and evaluation plan. 

(C) The manner in which an independent cost estimate for 

the program will be developed by the Office of the Secretary of 

Defense. 

(d) APPLICABILITY OF SPIRAL DEVELOPMENT SECTION.—Nothing 

in this section shall be construed to exempt any pathfinder program 

from the application of any provision of section 803(c).

SEC. 133. LEASES FOR TANKER AIRCRAFT UNDER MULTIYEAR AIRCRAFT-LEASE PILOT PROGRAM. 

The Secretary of the Air Force may not enter into a lease for the 

acquisition of tanker aircraft for the Air Force under section 8159 

of the Department of Defense Appropriations Act, 2002 (division A 

of Public Law 107–117; 115 Stat. 2284; 10 U.S.C. 2401a note) 

until—

(1) the Secretary submits the report specified in subsection 

(c)(6) of such section; and 

(2) either—

21

(A) authorization and appropriation of funds necessary 

to enter into such lease are provided by law; or 

(B) a new start reprogramming notification for the 

funds necessary to enter into such lease has been submitted 

in accordance with established procedures.

Subtitle E—Other Programs

SEC. 141. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS AND MUNITIONS. 

(a) PROGRAM MANAGEMENT.—The Secretary of Defense shall ensure that the program for destruction of the United States stockpile 

of lethal chemical agents and munitions is managed as a major defense acquisition program (as defined in section 2430 of title 10, 

United States Code) in accordance with the essential elements of 

such programs as may be determined by the Secretary. 

(b) REQUIREMENT FOR UNDER SECRETARY OF DEFENSE

(COMPTROLLER) ANNUAL CERTIFICATION.—Beginning with respect to 

the budget request for fiscal year 2004, the Under Secretary of Defense (Comptroller) shall submit to the congressional defense committees on an annual basis a certification that the budget request 

for the chemical agents and munitions destruction program has 

been submitted in accordance with the requirements of section 1412 

of the Department of Defense Authorization Act, 1986 (50 U.S.C. 

1521).

SEC. 142. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS. 

(a) REPORT.—Not later than January 1, 2003, the Secretary of 

Defense shall submit to Congress a report on unmanned aerial vehicle systems of the Department of Defense. 

(b) MATTERS TO BE INCLUDED CONCERNING UNMANNED AERIAL

VEHICLE SYSTEMS.—The Secretary shall include in the report under 

subsection (a) the following, shown for each system referred to in 

that subsection: 

(1) A description of the infrastructure that the Department 

of Defense has (or is planning) for the system. 

(2) A description of the operational requirements document 

(ORD) for the system. 

(3) A description of the physical infrastructure of the Department for training and basing. 

(4) A description of the manner in which the Department 

is interfacing with the industrial base. 

(5) A description of the acquisition plan for the system. 

(6) A description of the process by which the Department 

will ensure that any unmanned aerial vehicle program proceeding past the science and technology stage does so only as 

part of an integrated, overall Office of the Secretary of Defense 

strategy for acquisition of unmanned aerial vehicles, such as 

that provided in the approved Office of the Secretary of Defense 

unmanned aerial vehicle roadmap. 

(c) SUGGESTIONS FOR CHANGES IN LAW.—The Secretary shall 

also include in the report under subsection (a) such suggestions as 

the Secretary considers appropriate for changes in law that would 

facilitate the way the Department acquires unmanned aerial vehicle 

systems.

22

SEC. 143. GLOBAL INFORMATION GRID SYSTEM. 

None of the funds authorized to be appropriated by this Act for 

the Department of Defense system known as the Global Information 

Grid may be obligated until the Secretary of Defense submits to the 

congressional defense committees a plan to provide that, as part of 

the bandwidth expansion efforts for the system, the system will be 

designed and configured so as to ensure that information transmitted within the system is secure and protected from unauthorized 

access. 

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. 

Sec. 203. Defense health programs. 

Subtitle B—Program Requirements, Restrictions, and Limitations 

Sec. 211. RAH–66 Comanche aircraft program. 

Sec. 212. Extension of requirements relating to management responsibility for naval 

mine countermeasures programs. 

Sec. 213. Revised requirements for plan for Manufacturing Technology Program. 

Sec. 214. Advanced SEAL Delivery System. 

Sec. 215. Army experimentation program regarding design of the objective force. 

Sec. 216. Program to provide Army with self-propelled Future Combat Systems nonline-of-sight cannon indirect fire capability for the objective force. 

Sec. 217. Prohibition on transfer of Medical Free Electron Laser program. 

Sec. 218. Littoral combat ship program. 

Subtitle C—Ballistic Missile Defense 

Sec. 221. Report requirements relating to ballistic missile defense programs. 

Sec. 222. Responsibility of Missile Defense Agency for research, development, test, 

and evaluation related to system improvements of programs transferred 

to military departments. 

Sec. 223. Limitation on obligation of funds for Theater High Altitude Area Defense 

Program pending submission of required life-cycle cost information. 

Sec. 224. Provision of information on flight testing of Ground-based Midcourse National Missile Defense system. 

Sec. 225. References to new name for Ballistic Missile Defense Organization. 

Sec. 226. One-year limitation on use of funds for nuclear armed interceptors. 

Subtitle D—Improved Management of Department of Defense Test and 

Evaluation Facilities 

Sec. 231. Department of Defense Test Resource Management Center. 

Sec. 232. Objective for institutional funding of test and evaluation facilities. 

Sec. 233. Uniform financial management system for Department of Defense test and 

evaluation facilities. 

Sec. 234. Test and evaluation workforce improvements. 

Sec. 235. Compliance with testing requirements. 

Subtitle E—Other Matters 

Sec. 241. Pilot programs for revitalizing Department of Defense laboratories. 

Sec. 242. Technology Transition Initiative. 

Sec. 243. Defense Acquisition Challenge Program.

Sec. 244. Encouragement of small businesses and nontraditional defense contractors 

to submit proposals potentially beneficial for combating terrorism. 

Sec. 245. Vehicle fuel cell program. 

Sec. 246. Defense nanotechnology research and development program. 

Sec. 247. Activities of the Defense Experimental Program to Stimulate Competitive 

Research. 

23

Sec. 248. Four-year extension of authority of DARPA to award prizes for advanced 

technology achievements and additional authority of military departments and Defense Agencies to award prizes for achievements in promoting education. 

Sec. 249. Plan for five-year program for enhancement of measurement and signatures intelligence capabilities of the United States through incorporation 

of results of basic research on sensors.

Subtitle A—Authorization of 

Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for the use of the Department of Defense for research, development, test, and evaluation as follows: 

(1) For the Army, $7,158,256,000. 

(2) For the Navy, $13,244,164,000. 

(3) For the Air Force, $18,337,078,000. 

(4) For Defense-wide activities, $17,970,653,000, of which 

$311,554,000 is authorized for the Director of Operational Test 

and Evaluation. 

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY. 

(a) FISCAL YEAR 2003.—Of the amounts authorized to be appropriated by section 201, $10,384,658,000 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 category 

6.1, 6.2, or 6.3. 

SEC. 203. DEFENSE HEALTH PROGRAMS. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for the Department of Defense for research, development, test, 

and evaluation for carrying out health care programs, projects, and 

activities of the Department of Defense in the total amount of 

$67,214,000.

Subtitle B—Program Requirements, 

Restrictions, and Limitations

SEC. 211. RAH–66 COMANCHE AIRCRAFT PROGRAM. 

(a) REPORTS REQUIRED.—Not later than the end of each fiscal 

quarter of fiscal year 2003, the Secretary of the Army 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 progress of the restructured engineering and manufacturing 

development phase of the RAH–66 Comanche aircraft program. 

(b) CONTENT.—The report shall include, at a minimum, the information relating to the program that the program manager provides to the Assistant Secretary of the Army for Acquisition, Logistics, and Technology with respect to—

24

(1) cost, including funding and contracts; 

(2) schedule; 

(3) performance; 

(4) which goals are being met and which are not being met; 

(5) milestones events accomplished; and 

(6) significant events accomplished.

SEC. 212. EXTENSION OF REQUIREMENTS RELATING TO MANAGEMENT 

RESPONSIBILITY FOR NAVAL MINE COUNTERMEASURES 

PROGRAMS. 

(a) IN GENERAL.—Section 216 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102–190; 

105 Stat. 1317), as most recently amended by section 211 of the 

Strom Thurmond National Defense Authorization Act for Fiscal 

Year 1999 (Public Law 105–261; 112 Stat. 1946), is amended—

(1) in subsection (a), by striking ‘‘through 2003’’ and inserting ‘‘through 2008’’; 

(2) in subsection (b)—

(A) by striking ‘‘and’’ at the end of paragraph (2); 

(B) by redesignating paragraph (3) as paragraph (4); 

and 

(C) by inserting after paragraph (2) the following new 

paragraph: 

‘‘(3) the responsibilities of the Joint Requirements Oversight 

Council under subsections (b) and (d) of section 181 of title 10, 

United States Code, have been carried out with respect to the 

updated mine countermeasures master plan, the budget resources for mine countermeasures for that fiscal year, and the 

future years defense program for mine countermeasures; and’’; 

and 

(3) by adding at the end the following new subsection: 

‘‘(c) NOTIFICATION OF PROPOSED CHANGES.—Upon certifying 

under subsection (b) with respect to a fiscal year, the Secretary may 

not carry out any change to the naval mine countermeasures master 

plan or the budget resources for mine countermeasures with respect 

to that fiscal year until after the Under Secretary of Defense for Acquisition, Technology, and Logistics submits to the congressional defense committees a notification of the proposed change. Such notification shall describe the nature of the proposed change, the effect of 

the proposed change on the naval mine countermeasures program or 

related programs with respect to that fiscal year, and the effect of 

the proposed change on the validity of the decision to certify under 

subsection (b) with respect to that fiscal year.’’. 

(b) TECHNICAL AMENDMENTS.—Such section is further amended—

(1) in subsection (a), by striking ‘‘Under Secretary of Defense for Acquisition and Technology’’ and inserting ‘‘Under 

Secretary of Defense for Acquisition, Technology, and Logistics’’; 

and 

(2) in subsection (b)(2)—

(A) by striking ‘‘multiyear’’ and inserting ‘‘future 

years’’; and 

(B) by striking ‘‘section 114a’’ and inserting ‘‘section 

221’’.

25

SEC. 213. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING 

TECHNOLOGY PROGRAM. 

(a) STREAMLINED CONTENTS OF PLAN.—Subsection (e) of section 

2521 of title 10, United States Code, is amended by striking 

‘‘prepare a five-year plan’’ in paragraph (1) and all that follows 

through the end of subparagraph (B) of paragraph (2) and inserting 

the following: ‘‘prepare and maintain a five-year plan for the program. 

‘‘(2) The plan shall establish the following: 

‘‘(A) The overall manufacturing technology objectives, milestones, priorities, and investment strategy for the program. 

‘‘(B) The specific objectives of, and funding for the program 

by, each military department and each Defense Agency participating in the program.’’. 

(b) BIENNIAL REPORT.—Such subsection is further amended in 

paragraph (3)—

(1) by striking ‘‘annually’’ and inserting ‘‘biennially’’; and 

(2) by striking ‘‘for a fiscal year’’ and inserting ‘‘for each 

even-numbered fiscal year’’.

SEC. 214. ADVANCED SEAL DELIVERY SYSTEM. 

(a) TRANSFER OF FUNDS.—To the extent provided in appropriations Acts, the amount described in subsection (b) shall be transferred to amounts available for fiscal year 2003 for research, development, test, and evaluation, Defense-Wide, and shall be available 

only for research, development, test, and evaluation relating to the 

Advanced SEAL Delivery System. 

(b) AMOUNT TO BE TRANSFERRED.—The amount referred to in 

subsection (a) is the amount of $13,700,000 that was authorized 

and appropriated for fiscal year 2002 for procurement of the Advanced SEAL Delivery System within amounts for Procurement, Defense-Wide. 

(c) TRANSFER AUTHORITY IN ADDITION TO OTHER AUTHORITY.—

The transfer authority provided by this section is in addition to any 

other transfer authority provided by law.

SEC. 215. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF 

THE OBJECTIVE FORCE. 

(a) REQUIREMENT FOR REPORT.—Not later than March 31, 

2003, the Secretary of the Army shall submit to Congress a report 

on the experimentation program regarding design of the objective 

force that is required by subsection (g) of section 113 of the Floyd 

D. Spence National Defense Authorization Act for Fiscal Year 2001, 

as added by section 113 of the National Defense Authorization Act 

for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1029). 

(b) BUDGET DISPLAY.—Amounts provided for the experimentation program in the budget for fiscal year 2004 that is submitted 

to Congress under section 1105(a) of title 31, United States Code, 

shall be displayed as a distinct program element in that budget and 

in the supporting documentation submitted to Congress by the Secretary of Defense.

SEC. 216. PROGRAM TO PROVIDE ARMY WITH SELF-PROPELLED FUTURE COMBAT SYSTEMS NON-LINE-OF-SIGHT CANNON INDIRECT FIRE CAPABILITY FOR THE OBJECTIVE FORCE. 

(a) PROGRAM REQUIRED.—The Secretary of Defense shall carry 

out a program to provide the Army, not later than fiscal year 2008, 

26

with a self-propelled Future Combat Systems non-line-of-sight cannon indirect fire capability to equip the objective force. 

(b) REPORT.—(1) The Secretary shall submit to the congressional defense committees, at the same time that the President submits the budget for a fiscal year referred to in paragraph (2) to Congress under section 1105(a) of title 31, United States Code, a report 

on the investments proposed to be made with respect to non-line-ofsight indirect fire programs for the Army. The report shall—

(A) identify the amount proposed for expenditures for the 

Crusader artillery system program for that fiscal year in the future-years defense program that was submitted to Congress in 

2002 under section 221 of title 10, United States Code; and 

(B) specify—

(i) the manner in which the amount provided in that 

budget would be expended for improved non-line-of-sight 

indirect fire capabilities for the Army; and 

(ii) the extent to which expending such amount in such 

manner would improve such capabilities for the Army. 

(2) The requirement to submit a report under paragraph (1) 

shall apply with respect to budgets for fiscal years 2004, 2005, 2006, 

2007, and 2008. 

(c) OBJECTIVE FORCE DEFINED.—In this section, the term 

‘‘objective force’’ has the meaning given such term in section 

113(f)(2) 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–24). 

(d) FUNDING.—Of the amount authorized to be appropriated by 

section 201(1) for the Army for research, development, test, and 

evaluation, $368,500,000 shall be used only to develop and field a 

self-propelled Future Combat Systems non-line-of-sight cannon indirect fire artillery system and a resupply vehicle with respect to such 

system.

SEC. 217. PROHIBITION ON TRANSFER OF MEDICAL FREE ELECTRON 

LASER PROGRAM. 

The Medical Free Electron Laser Program (PE 0602227D8Z) 

may not be transferred from the Department of Defense to the National Institutes of Health, or to any other department or agency of 

the Federal Government.

SEC. 218. LITTORAL COMBAT SHIP PROGRAM. 

(a) AMOUNT FOR PROGRAM.—Of the amount authorized to be 

appropriated by section 201(2) for research, development, test, and 

evaluation, Navy, $4,000,000 may be available in program element 

0603563N, relating to Ship Concept Advanced Design, for requirements development for the littoral combat ship.

(b) LIMITATION ON OBLIGATION OF FUNDS.—The Secretary of 

the Navy may not obligate any funds for the construction of a littoral combat ship until after the Secretary submits the report required by subsection (c). 

(c) REPORT ON MILESTONE A PLAN AND SCHEDULE.—(1) The 

Secretary of the Navy shall submit to the congressional defense committees, at the same time that the President submits the budget for 

fiscal year 2004 to Congress under section 1105(a) of title 31, United 

States Code, a report on development of the littoral combat ship. 

27

(2) The report shall address the plan and schedule for fulfilling 

the requirements of Department of Defense Instruction 5000-series 

for a major defense acquisition Milestone A decision for initiation 

of concept and technology development for the littoral combat ship, 

including the following such requirements: 

(A) Consideration of technology issues. 

(B) Market research. 

(C) Validated mission need statement. 

(D) Analysis of multiple concepts. 

(E) Test and evaluation master plan (evaluation strategy 

only). 

(F) Exit criteria. 

(G) Acquisition decision memorandum. 

(3) The report shall include a discussion of the Secretary’s acquisition strategy for development of the littoral combat ship. 

(d) REQUIREMENTS FOR ACQUISITION STRATEGY.—The Secretary 

shall ensure that the acquisition strategy for development of the littoral combat ship includes the following: 

(1) A concept and technology demonstration phase that is 

robust and, in a manner and on a schedule that will inform the 

Navy’s decisions on the concepts, technologies, and capabilities 

to be incorporated into the initial design of the littoral combat 

ship and into follow-on designs, capitalizes upon ongoing and 

planned experiments, demonstrations, and evaluations of—

(A) existing, prototype, and experimental hull forms 

and platforms, including the hull forms and platforms relating to—

(i) the Coastal Waters Interdiction Platform; 

(ii) the Hybrid Deep Vee Demonstrator; 

(iii) the Littoral Support Craft (Experimental); 

(iv) the High Speed Vessel; 

(v) surface effects ships; 

(vi) Research Vessel Triton; 

(vii) the SLICE ship; 

(viii) other existing, prototype, and experimental 

craft that the Secretary considers to be appropriate; 

and 

(ix) other existing ships capable of carrying the desired payload packages; 

(B) ship and combat systems components; 

(C) command, control, and communications systems; 

(D) intelligence, surveillance, and reconnaissance systems; 

(E) weapons systems; and 

(F) support systems. 

(2) A description of the experiments, demonstrations, and 

evaluations that are needed for support of design and development decisionmaking for mission modules to be employed on 

the littoral combat ship, including the mission modules for—

(A) anti-submarine warfare; 

(B) mine countermeasures; 

(C) anti-ship defense; and 

(D) any other missions that may be envisioned for the 

ship. 

28

(3) An identification of the experiments, demonstrations, 

and evaluations that would need to be accomplished during the 

concept and technology demonstration phase and those that 

would need to be accomplished during the system development 

and demonstration phase (after a major defense acquisition 

Milestone B decision to enter that phase). 

(4) A description of the potential trade-offs between program requirements and capabilities, and the methodology 

(including life cycle cost as an independent variable, speed as 

an independent variable, and other applicable program attributes), needed to arrive at a design for a littoral combat ship 

that can be approved (pursuant to a major defense acquisition 

Milestone B decision) for entry into the system development and 

demonstration phase. 

(5) An analysis of the adequacy of existing and planned 

platforms to test the littoral ship concept prior to construction 

of a littoral combat ship.

Subtitle C—Ballistic Missile Defense

SEC. 221. REPORT REQUIREMENTS RELATING TO BALLISTIC MISSILE 

DEFENSE PROGRAMS. 

(a) ANNUAL SUBMISSION OF CURRENT PERFORMANCE GOALS

AND DEVELOPMENT BASELINES.—(1) The Secretary of Defense shall 

submit to the congressional defense committees each year the performance goals and development baselines— (A) for those ballistic missile defense systems under development by the Missile Defense Agency that could be fielded; and 

(B) for any other ballistic missile defense program or 

project that has been designated by Congress as a special interest item. 

(2) Such performance goals and development baselines shall be 

provided for each block of each such system. 

(3) The performance goals and development baselines under 

paragraph (1) shall be included annually with the defense budget 

justification materials submitted in support of the President’s budget submitted to Congress under section 1105 of title 31, United 

States Code. 

(b) RDT&E BUDGET JUSTIFICATION MATERIALS.—The budget 

justification materials submitted to Congress for any fiscal year in 

support of a request for the authorization and appropriation of 

funds for research, development, test, and evaluation for ballistic 

missile defense systems shall include a funding profile for each 

block of each such system that could be fielded that reflects the development baseline submitted pursuant to subsection (a) for that fiscal year. 

(c) REVIEW OF MDA CRITERIA IN RELATION TO MILITARY RE- QUIREMENTS.—(1) The Joint Requirements Oversight Council established under section 181 of title 10, United States Code, shall review 

cost, schedule, and performance criteria for missile defense programs of the Missile Defense Agency in order to assess the validity 

of those criteria in relation to military requirements. 

(2) The Secretary shall include the results of such review with 

the first annual statement of program goals submitted to the congressional defense committees under section 232(c) of the National 

29

Defense Authorization Act for Fiscal Year 2002 (Public Law 107– 107; 10 U.S.C. 2431 note) after the date of the enactment of this Act.

SEC. 222. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION RELATED TO SYSTEM IMPROVEMENTS OF PROGRAMS TRANSFERRED TO MILITARY DEPARTMENTS. 

Section 224(e) of title 10, United States Code, is amended— (1) by striking ‘‘before a’’ and inserting ‘‘for each’’; 

(2) by striking ‘‘is’’; and 

(3) by striking ‘‘roles and responsibilities’’ and all that follows through the period at the end and inserting ‘‘responsibility 

for research, development, test, and evaluation related to system 

improvements for that program remains with the Director.’’.

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS FOR THEATER HIGH 

ALTITUDE AREA DEFENSE PROGRAM PENDING SUBMISSION OF REQUIRED LIFE-CYCLE COST INFORMATION. 

(a) LIMITATION PENDING SUBMISSION OF CERTIFICATION.—Not 

more than 85 percent of the amount specified in subsection (b) may 

be obligated until the Secretary of Defense submits to the congressional defense committees the estimated total life-cycle cost of the 

Theater High Altitude Area Defense (THAAD) program as required 

for programs in engineering and manufacturing development by section 232(d) of the National Defense Authorization Act for Fiscal 

Year 2002 (Public Law 107–107; 10 U.S.C. 2431 note). 

(b) FUNDS SUBJECT TO LIMITATION.—Subsection (a) applies to 

the amount authorized to be appropriated for fiscal year 2003 for 

the Missile Defense Agency for the Theater High Altitude Area Defense (THAAD) program.

SEC. 224. PROVISION OF INFORMATION ON FLIGHT TESTING OF 

GROUND-BASED MIDCOURSE NATIONAL MISSILE DEFENSE SYSTEM. 

(a) INFORMATION TO BE FURNISHED TO CONGRESSIONAL COMMITTEES.—The Director of the Missile Defense Agency shall provide 

to the congressional defense committees information on the results 

of each flight test of the Ground-based Midcourse national missile 

defense system. 

(b) CONTENT.—Information provided under subsection (a) on 

the results of a flight test shall include the following matters: 

(1) A thorough discussion of the content and objectives of 

the test. 

(2) For each such test objective, a statement regarding 

whether or not the objective was achieved. 

(3) For any such test objective not achieved—

(A) a thorough discussion describing the reasons that 

the objective was not achieved; and 

(B) a discussion of any plans for future tests to achieve 

that objective.

SEC. 225. REFERENCES TO NEW NAME FOR BALLISTIC MISSILE DEFENSE ORGANIZATION. 

(a) IN GENERAL.—Any reference to the Ballistic Missile Defense 

Organization in any provision of law, regulation, map, document, 

record, or other paper of the United States shall be considered to be 

a reference to the Missile Defense Agency. 

(b) CONFORMING AMENDMENTS.—(1) Title 10, United States 

Code, is amended as follows: 

30

(A) Sections 203, 223, and 224 are each amended by striking ‘‘Ballistic Missile Defense Organization’’ each place it appears and inserting ‘‘Missile Defense Agency’’. 

(B)(i) The heading for section 203 is amended to read as 

follows: 

‘‘§ 203. Director of Missile Defense Agency’’.

(ii) The item relating to section 203 in the table of sections 

at the beginning of subchapter II of chapter 8 is amended to 

read as follows:

‘‘203. Director of Missile Defense Agency.’’.

(2) The National Defense Authorization Act for Fiscal Year 

2002 (Public Law 107–107) is amended as follows: 

(A) Sections 232 (115 Stat. 1037; 10 U.S.C. 2431 note), 233 

(115 Stat. 1039), and 235 (115 Stat. 1041) are each amended 

by striking ‘‘Ballistic Missile Defense Organization’’ each place 

it appears and inserting ‘‘Missile Defense Agency’’. 

(B) The heading for section 232 is amended to read as follows: 

‘‘SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.’’. 

(3) Section 3132 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–455; 10 U.S.C. 2431 note) is amended—

(A) by striking ‘‘Ballistic Missile Defense Organization’’

each place it appears and inserting ‘‘Missile Defense Agency’’; 

(B) in subsection (c), by striking ‘‘BMDO’’ and inserting 

‘‘MDA’’; and 

(C) by amending the heading to read as follows: 

‘‘SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR 

SECURITY ADMINISTRATION AND MISSILE DEFENSE 

AGENCY.’’. 

(4) The following provisions are each amended by striking 

‘‘Ballistic Missile Defense Organization’’ each place it appears and 

inserting ‘‘Missile Defense Agency’’: 

(A) Section 233 of the National Defense Authorization Act 

for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C. 223 note). 

(B) Section 243 of the National Defense Authorization Act 

for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C. 2431 

note).

SEC. 226. ONE-YEAR LIMITATION ON USE OF FUNDS FOR NUCLEAR 

ARMED INTERCEPTORS. 

(a) LIMITATION.—None of the funds described in subsection (b) 

may be obligated for research, development, test, or evaluation, or 

for procurement, of a nuclear armed interceptor as a component of 

a missile defense system. 

(b) COVERED FUNDS.—Subsection (a) applies to funds made 

available to the Department of Defense pursuant to an authorization 

of appropriations in this title or title I or to the Department of Energy pursuant to an authorization of appropriations in title XXXI.

31

Subtitle D—Improved Management of Department of Defense Test and Evaluation 

Facilities

SEC. 231. DEPARTMENT OF DEFENSE TEST RESOURCE MANAGEMENT 

CENTER. 

(a) ESTABLISHMENT.—(1) Subchapter I of chapter 8 of title 10, 

United States Code, is amended by adding at the end the following 

new section:

‘‘§ 196. Department of Defense Test Resource Management 

Center 

‘‘(a) ESTABLISHMENT AS DEPARTMENT OF DEFENSE FIELD AC- TIVITY.—The Secretary of Defense shall establish within the Department of Defense under section 191 of this title a Department of Defense Test Resource Management Center (hereinafter in this section 

referred to as the ‘Center’). The Secretary shall designate the Center 

as a Department of Defense Field Activity. ‘‘(b) DIRECTOR AND DEPUTY DIRECTOR.—(1) At the head of the 

Center shall be a Director, selected by the Secretary from among 

commissioned officers of the armed forces on active duty. The Director, while so serving, holds the grade of lieutenant general or, in the 

case of an officer of the Navy, vice admiral. ‘‘(2) There shall be a Deputy Director of the Center, selected by 

the Secretary from among senior civilian officers and employees of 

the Department of Defense who have substantial experience in the 

field of test and evaluation. The Deputy Director shall act for, and 

exercise the powers of, the Director when the Director is disabled or 

the position of Director is vacant. ‘‘(c) DUTIES OF DIRECTOR.—The Director shall have the following duties: ‘‘(1) To review and provide oversight of proposed Department of Defense budgets and expenditures for—

‘‘(A) the test and evaluation facilities and resources of 

the Major Range and Test Facility Base of the Department 

of Defense; and 

‘‘(B) all other test and evaluation facilities and resources within and outside of the Department of Defense. 

‘‘(2) To complete and maintain the strategic plan required 

by subsection (d). 

‘‘(3) To review proposed budgets under subsection (e) and 

submit reports and certifications required by such subsection. ‘‘(4) To administer the Central Test and Evaluation Investment Program and the program of the Department of Defense 

for test and evaluation science and technology. 

‘‘(d) STRATEGIC PLAN FOR DEPARTMENT OF DEFENSE TEST AND

EVALUATION RESOURCES.—(1) Not less often than once every two fiscal years, the Director, in coordination with the Director of Operational Test and Evaluation, the Secretaries of the military departments, and the heads of Defense Agencies with test and evaluation 

responsibilities, shall complete a strategic plan reflecting the needs 

of the Department of Defense with respect to test and evaluation facilities and resources. Each such strategic plan shall cover the period of ten fiscal years beginning with the fiscal year in which the 

32

plan is submitted under paragraph (3). The strategic plan shall be 

based on a comprehensive review of the test and evaluation requirements of the Department and the adequacy of the test and evaluation facilities and resources of the Department to meet those requirements. ‘‘(2) The strategic plan shall include the following: ‘‘(A) An assessment of the test and evaluation requirements 

of the Department for the period covered by the plan. ‘‘(B) An identification of performance measures associated 

with the successful achievement of test and evaluation objectives 

for the period covered by the plan. ‘‘(C) An assessment of the test and evaluation facilities and 

resources that will be needed to meet such requirements and 

satisfy such performance measures. ‘‘(D) An assessment of the current state of the test and evaluation facilities and resources of the Department. ‘‘(E) An itemization of acquisitions, upgrades, and improvements necessary to ensure that the test and evaluation facilities 

and resources of the Department are adequate to meet such requirements and satisfy such performance measures. ‘‘(F) An assessment of the budgetary resources necessary to 

implement such acquisitions, upgrades, and improvements. 

‘‘(3) Upon completing a strategic plan under paragraph (1), the 

Director shall submit to the Secretary of Defense a report on that 

plan. The report shall include the plan and a description of the review on which the plan is based. ‘‘(4) Not later than 60 days after the date on which the report 

is submitted under paragraph (3), the Secretary of Defense shall 

transmit to the Committee on Armed Services and Committee on 

Appropriations of the Senate and the Committee on Armed Services 

and Committee on Appropriations of the House of Representatives 

the report, together with any comments with respect to the report 

that the Secretary considers appropriate. ‘‘(e) CERTIFICATION OF BUDGETS.—(1) The Secretary of Defense, 

acting through the Under Secretary of Defense (Comptroller), shall 

require that the Secretary of each military department, the Director 

of Operational Test and Evaluation, and the head of each Defense 

Agency with test and evaluation responsibilities transmit such Secretary’s, Director’s, or head’s proposed budget for test and evaluation activities for a fiscal year to the Director of the Center for review under paragraph (2) before submitting such proposed budget 

to the Under Secretary of Defense (Comptroller). 

‘‘(2)(A) The Director of the Center shall review each proposed 

budget transmitted under paragraph (1) and shall, not later than 

January 31 of the year preceding the fiscal year for which such 

budgets are proposed, submit to the Secretary of Defense a report 

containing the comments of the Director with respect to all such proposed budgets, together with the certification of the Director as to 

whether such proposed budgets are adequate. 

‘‘(B) The Director shall also submit, together with such report 

and such certification, an additional certification as to whether 

such proposed budgets provide balanced support for such strategic 

plan. 

‘‘(3) The Secretary of Defense shall, not later than March 31 of 

the year preceding the fiscal year for which such budgets are proVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00056 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
33

posed, submit to Congress a report on those proposed budgets which 

the Director has not certified under paragraph (2)(A) to be adequate. 

The report shall include the following matters:

‘‘(A) A discussion of the actions that the Secretary proposes 

to take, together with any recommended legislation that the Secretary considers appropriate, to address the inadequacy of the 

proposed budgets. 

‘‘(B) Any additional comments that the Secretary considers 

appropriate regarding the inadequacy of the proposed budgets. 

‘‘(f) SUPERVISION OF DIRECTOR BY UNDER SECRETARY.—The Director of the Center shall be subject to the supervision of the Under 

Secretary of Defense for Acquisition, Technology, and Logistics. The 

Director shall report directly to the Under Secretary, without the 

interposition of any other supervising official. 

‘‘(g) ADMINISTRATIVE SUPPORT OF CENTER.—The Secretary of 

Defense shall provide the Director with administrative support adequate for carrying out the Director’s responsibilities under this section. The Secretary shall provide the support out of the headquarters activities of the Department or any other activities that the 

Secretary considers appropriate. 

‘‘(h) DEFINITION.—In this section, the term ‘Major Range and 

Test Facility Base’ means the test and evaluation facilities and resources that are designated by the Director of Operational Test and 

Evaluation as facilities and resources comprising the Major Range 

and Test Facility Base.’’.

(2) The table of sections at the beginning of such subchapter is 

amended by adding at the end the following new item:

‘‘196. Department of Defense Test Resource Management Center.’’.

(b) FIRST STRATEGIC PLAN.—The first strategic plan required to 

be completed under subsection (d)(1) of section 196 of title 10, 

United States Code (as added by subsection (a)), shall be completed 

not later than six months after the date of the enactment of this Act. 

(c) ADMINISTRATION OF CTEIP AND DOD T&E S&T PROGRAMS.—The duty of the Director of the Department of Defense Test 

Resource Management Center to administer the programs specified 

in subsection (c)(4) of section 196 of title 10, United States Code (as 

added by subsection (a)), shall take effect, and such programs shall 

be placed under control of such Director, upon the beginning of the 

first fiscal year that begins after the report on the first strategic 

plan referred to subsection (b) is transmitted to the congressional 

committees required by subsection (d)(4) of such section 196.

SEC. 232. OBJECTIVE FOR INSTITUTIONAL FUNDING OF TEST AND 

EVALUATION FACILITIES. 

(a) FUNDING OBJECTIVE.—The Secretary of Defense shall establish the objective of ensuring that, by fiscal year 2006—

(1) the institutional and overhead costs of a facility or resource of a military department or Defense Agency that is within the Major Range and Test Facility Base are fully funded 

through the major test and evaluation investment accounts of 

the military department or Defense Agency, the account of the 

Central Test and Evaluation Investment Program of the Department of Defense, and other appropriate accounts of the military department or Defense Agency; and 

34

(2) the charge to an element of the Department of Defense 

for a use by that element of such a facility or resource for testing under a particular program is not more than the amount 

equal to the direct costs of such use by that element. 

(b) DEFINITIONS.—In this section: 

(1) The term ‘‘Major Range and Test Facility Base’’ means 

the test and evaluation facilities and resources that are designated by the Director of Operational Test and Evaluation as 

facilities and resources comprising the Major Range and Test 

Facility Base. 

(2) The term ‘‘institutional and overhead costs’’, with respect to a facility or resource within the Major Range Test and 

Facility Base—

(A) means the costs of maintaining, operating, upgrading, and modernizing the facility or resource; and 

(B) does not include any incremental cost of operating 

the facility or resource that is attributable to the use of the 

facility or resource for testing under a particular program. 

(3) The term ‘‘direct costs’’, with respect to a facility or resource within the Major Range and Test Facility Base, means 

those costs that are directly attributable to the use of the facility 

or resource for testing under a particular program, over and 

above the institutional and overhead costs with respect to the 

facility or resource.

SEC. 233. UNIFORM FINANCIAL MANAGEMENT SYSTEM FOR DEPARTMENT OF DEFENSE TEST AND EVALUATION FACILITIES. 

(a) REQUIREMENT FOR SYSTEM.—The Secretary of Defense shall 

implement a single financial management and accounting system 

for all test and evaluation facilities of the Department of Defense. 

The Secretary shall implement such system as soon as practicable, 

and shall establish the objective that such system be implemented 

not later than September 30, 2006. 

(b) SYSTEM FEATURES.—The system required by subsection (a) 

shall be designed to achieve, at a minimum, the following functional objectives: 

(1) Enable managers within the Department of Defense to 

compare the costs of carrying out test and evaluation activities 

in the various facilities of the military departments. 

(2) Enable the Secretary of Defense—

(A) to make prudent investment decisions; and 

(B) to reduce the extent to which unnecessary costs of 

owning and operating test and evaluation facilities of the 

Department of Defense are incurred. 

(3) Enable the Department of Defense to track the total cost 

of test and evaluation activities. 

(4) Comply with the financial management architecture established by the Secretary.

SEC. 234. TEST AND EVALUATION WORKFORCE IMPROVEMENTS. 

(a) REPORT ON CAPABILITIES.—Not later than March 15, 2003, 

the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to Congress a report on the capabilities of the 

test and evaluation workforce of the Department of Defense. The 

Under Secretary shall consult with the Under Secretary of Defense 

35

for Personnel and Readiness and the Director of Operational Test 

and Evaluation in preparing the report. 

(b) REQUIREMENT FOR PLAN.—(1) The report shall contain a 

plan for taking the actions necessary to ensure that the test and 

evaluation workforce of the Department of Defense is of sufficient 

size and has the expertise necessary to timely and accurately identify issues of military suitability and effectiveness of Department of 

Defense systems through testing of the systems. 

(2) The plan shall set forth objectives for the size, composition, 

and qualifications of the workforce, and shall specify the actions 

(including recruitment, retention, and training) and milestones for 

achieving the objectives. 

(c) ADDITIONAL MATTERS.—The report shall also include the following matters: 

(1) An assessment of the changing size and demographics 

of the test and evaluation workforce, including the impact of 

anticipated retirements among the most experienced personnel 

over the period of five fiscal years beginning with fiscal year 

2003, together with a discussion of the management actions 

necessary to address the changes. 

(2) An assessment of the anticipated workloads and responsibilities of the test and evaluation workforce over the period of 

ten fiscal years beginning with fiscal year 2003, together with 

the number and qualifications of military and civilian personnel necessary to carry out such workloads and responsibilities. 

(3) The Under Secretary’s specific plans for using the demonstration authority provided in section 4308 of the National 

Defense Authorization Act for Fiscal Year 1996 (Public Law 

104–106; 10 U.S.C. 1701 note) and other special personnel management authorities of the Under Secretary to attract and retain 

qualified personnel in the test and evaluation workforce. 

(4) Any recommended legislation or additional special authority that the Under Secretary considers appropriate for facilitating the recruitment and retention of qualified personnel 

for the test and evaluation workforce. 

(5) Any other matters that are relevant to the capabilities 

of the test and evaluation workforce.

SEC. 235. COMPLIANCE WITH TESTING REQUIREMENTS. 

(a) ANNUAL OT&E REPORT.—Subsection (g) of section 139 of 

title 10, United States Code, is amended by inserting after the 

fourth sentence the following: ‘‘The report for a fiscal year shall also 

include an assessment of the waivers of and deviations from requirements in test and evaluation master plans and other testing requirements that occurred during the fiscal year, any concerns raised 

by the waivers or deviations, and the actions that have been taken 

or are planned to be taken to address the concerns.’’. 

(b) REORGANIZATION OF PROVISION.—Subsection (g) of such section, as amended by subsection (a), is further amended—

(1) by inserting ‘‘(1)’’ after ‘‘(g)’’; 

(2) by designating the second sentence as paragraph (2); 

(3) by designating the third sentence as paragraph (3); 

(4) by designating the matter consisting of the fourth and 

fifth sentences as paragraph (4); and 

(5) by designating the sixth sentence as paragraph (5). 

36

Subtitle E—Other Matters

SEC. 241. PILOT PROGRAMS FOR REVITALIZING DEPARTMENT OF DEFENSE LABORATORIES. 

(a) ADDITIONAL PILOT PROGRAM.—(1) The Secretary of Defense 

may carry out a pilot program to demonstrate improved efficiency 

in the performance of research, development, test, and evaluation 

functions of the Department of Defense. 

(2) Under the pilot program, the Secretary of Defense shall provide the director of one science and technology laboratory, and the 

director of one test and evaluation laboratory, of each military department with authority for the following: 

(A) To use innovative methods of personnel management 

appropriate for ensuring that the selected laboratories can— (i) employ and retain a workforce appropriately balanced between permanent and temporary personnel and 

among workers with appropriate levels of skills and experience; and 

(ii) effectively shape workforces to ensure that the 

workforces have the necessary sets of skills and experience 

to fulfill their organizational missions. 

(B) To develop or expand innovative methods of entering 

into and expanding cooperative relationships and arrangements 

with private sector organizations, educational institutions 

(including primary and secondary schools), and State and local 

governments to facilitate the training of a future scientific and 

technical workforce that will contribute significantly to the accomplishment of organizational missions. 

(C) To develop or expand innovative methods of establishing cooperative relationships and arrangements with private 

sector organizations and educational institutions to promote the 

establishment of the technological industrial base in areas critical for Department of Defense technological requirements. 

(D) To waive any restrictions not required by law that 

apply to the demonstration and implementation of methods for 

achieving the objectives set forth in subparagraphs (A), (B), and 

(C). 

(3) The Secretary may carry out the pilot program under this 

subsection at each selected laboratory for a period of three years beginning not later than March 1, 2003. 

(b) RELATIONSHIP TO FISCAL YEARS 1999 AND 2000 REVITALIZA- TION PILOT PROGRAMS.—The pilot program under this section is in 

addition to, but may be carried out in conjunction with, the fiscal 

years 1999 and 2000 revitalization pilot programs. 

(c) REPORTS.—(1) Not later than January 1, 2003, the Secretary 

shall submit to Congress a report on the experience under the fiscal 

years 1999 and 2000 revitalization pilot programs in exercising the 

authorities provided for the administration of those programs. The 

report shall include a description of— (A) barriers to the exercise of the authorities that have been 

encountered; 

(B) the proposed solutions for overcoming the barriers; and 

(C) the progress made in overcoming the barriers. 

(2) Not later than September 1, 2003, the Secretary of Defense 

shall submit to Congress a report on the implementation of the pilot 

37

program under subsection (a) and the fiscal years 1999 and 2000 

revitalization pilot programs. The report shall include, for each 

such pilot program, the following: 

(A) Each laboratory selected for the pilot program. 

(B) To the extent practicable, a description of the innovative 

methods that are to be tested at each laboratory. 

(C) The criteria to be used for measuring the success of 

each method to be tested. 

(3) Not later than 90 days after the expiration of the period for 

the participation of a laboratory in a pilot program referred to in 

paragraph (2), the Secretary of Defense shall submit to Congress a 

final report on the participation of that laboratory in the pilot program. The report shall include the following: 

(A) A description of the methods tested. 

(B) The results of the testing. 

(C) The lessons learned. 

(D) Any proposal for legislation that the Secretary recommends on the basis of the experience at that laboratory under 

the pilot program. 

(d) EXTENSION OF AUTHORITY FOR OTHER REVITALIZATION

PILOT PROGRAMS.—(1) Section 246(a)(4) of the Strom Thurmond 

National Defense Authorization Act for Fiscal Year 1999 (Public 

Law 105–261; 112 Stat. 1956; 10 U.S.C. 2358 note) is amended by 

striking ‘‘a period of three years’’ and inserting ‘‘up to six years’’. (2) Section 245(a)(4) of the National Defense Authorization Act 

for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 553; 10 U.S.C. 

2358 note) is amended by striking ‘‘a period of three years’’ and inserting ‘‘up to five years’’. (e) PARTNERSHIPS UNDER PILOT PROGRAM.—(1) The Secretary 

of Defense may authorize one or more laboratories and test centers 

participating in the pilot program under subsection (a) or in one of 

the fiscal years 1999 and 2000 revitalization pilot programs to enter 

into a cooperative arrangement (in this subsection referred to as a 

‘‘public-private partnership’’) with entities in the private sector and 

institutions of higher education for the performance of work. 

(2) A competitive process shall be used for the selection of entities outside the Government to participate in a public-private partnership. 

(3)(A) Not more than one public-private partnership may be established as a limited liability company. 

(B) An entity participating in a limited liability company as a 

party to a public-private partnership under the pilot program may 

contribute funds to the company, accept contributions of funds for 

the company, and provide materials, services, and use of facilities 

for research, technology, and infrastructure of the company, if it is 

determined under regulations prescribed by the Secretary of Defense 

that doing so will improve the efficiency of the performance of research, test, and evaluation functions of the Department of Defense. 

(f) FISCAL YEARS 1999 AND 2000 REVITALIZATION PILOT PRO- GRAMS DEFINED.—In this section, the term ‘‘fiscal years 1999 and 

2000 revitalization pilot programs’’ means— (1) the pilot programs authorized by section 246 of the 

Strom Thurmond National Defense Authorization Act for Fiscal 

Year 1999 (Public Law 105–261; 112 Stat. 1955; 10 U.S.C. 

2358 note); and 

38

(2) the pilot programs authorized by section 245 of the National Defense Authorization Act for Fiscal Year 2000 (Public 

Law 106–65; 113 Stat. 552; 10 U.S.C. 2358 note).

SEC. 242. TECHNOLOGY TRANSITION INITIATIVE. 

(a) ESTABLISHMENT AND CONDUCT.—(1) Chapter 139 of title 10, 

United States Code, is amended by inserting after section 2359 the 

following new section: 

‘‘§ 2359a. Technology Transition Initiative 

‘‘(a) INITIATIVE REQUIRED.—The Secretary of Defense, acting 

through the Under Secretary of Defense for Acquisition, Technology, 

and Logistics, shall carry out an initiative, to be known as the Technology Transition Initiative (hereinafter in this section referred to as 

the ‘Initiative’), to facilitate the rapid transition of new technologies 

from science and technology programs of the Department of Defense 

into acquisition programs of the Department for the production of 

such technologies. ‘‘(b) OBJECTIVES.—The objectives of the Initiative are as follows: ‘‘(1) To accelerate the introduction of new technologies into 

operational capabilities for the armed forces. ‘‘(2) To successfully demonstrate new technologies in relevant environments. 

‘‘(c) MANAGEMENT OF INITIATIVE.—(1) The Under Secretary 

shall designate a senior official of the Department of Defense 

(hereinafter in this section referred to as the ‘Manager’) to manage 

the Initiative. ‘‘(2) In managing the Initiative, the Manager shall— ‘‘(A) report directly to the Under Secretary; and 

‘‘(B) obtain advice and other assistance from the Technology Transition Council established under subsection (g). 

‘‘(3) The Manager shall— ‘‘(A) in consultation with the Technology Transition Council 

established under subsection (g), identify promising technology 

transition projects that can contribute to meeting Department of 

Defense technology goals and requirements; ‘‘(B) identify potential sponsors in the Department of Defense to manage such projects; and ‘‘(C) provide funds under subsection (f) for those projects 

that are selected under subsection (d)(2). 

‘‘(d) SELECTION OF PROJECTS.—(1) The science and technology 

and acquisition executives of each military department and each appropriate Defense Agency and the commanders of the unified and 

specified combatant commands may nominate technology transition 

projects for implementation under subsection (e) and shall submit 

a list of the projects so nominated to the Manager. 

‘‘(2) The Manager, in consultation with the Technology Transition Council established under subsection (g), shall select projects 

for implementation under subsection (e) from among the projects on 

the lists submitted under paragraph (1). 

‘‘(e) IMPLEMENTATION OF PROJECTS.—For each project selected 

under subsection (d)(2), the Manager shall designate a military department or Defense Agency to implement the project. 

‘‘(f) FUNDING OF PROJECTS.—(1) From funds made available to 

the Manager for the Initiative, the Manager shall, subject to paragraphs (2) and (3), provide funds for each project selected under 

39

subsection (d)(2) in an amount determined by mutual agreement between the Manager and the acquisition executive of the military department or Defense Agency concerned. ‘‘(2) The amount of funds provided to a project under paragraph (1) shall be not less than the amount equal to 50 percent of 

the total cost of the project. ‘‘(3) A project shall not be provided funds under this subsection 

for more than four fiscal years. ‘‘(g) TECHNOLOGY TRANSITION COUNCIL.—(1) There is a Technology Transition Council in the Department of Defense. The Council is composed of the following members: ‘‘(A) The science and technology executive of each military 

department and each Defense Agency. ‘‘(B) The acquisition executive of each military department. 

‘‘(C) The members of the Joint Requirements Oversight 

Council. 

‘‘(2) The duty of the Council shall be to provide advice and assistance to the Manager under this section. ‘‘(3) The Council shall meet not less often than semiannually to 

carry out its duty under paragraph (2). ‘‘(h) REPORT.—Not later than March 31 of each year, the Under 

Secretary shall submit to 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 a report on the activities carried out by the Initiative during the preceding fiscal year. ‘‘(i) DEFINITION.—In this section, the term ‘acquisition executive’, with respect to a military department or Defense Agency, 

means the official designated as the senior procurement executive 

for that military department or Defense Agency for the purposes of 

section 16(3) of the Office of Federal Procurement Policy Act (41 

U.S.C. 414(3)).’’. (2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 2359 the following new item:

‘‘2359a. Technology Transition Initiative.’’.

(b) AUTHORIZATION OF APPROPRIATIONS.—Of the amount authorized to be appropriated under section 201(4), $25,430,000 may 

be available in program element 0603826D8Z for technology transition activities of the Department of Defense, including the Technology Transition Initiative required by section 2359a of title 10, 

United States Code (as added by subsection (a)), the Defense Acquisition Challenge Program required by section 2359b of title 10, 

United States Code (as added by section 243), and Quick Reaction 

Special Projects.

SEC. 243. DEFENSE ACQUISITION CHALLENGE PROGRAM. 

(a) IN GENERAL.—Chapter 139 of title 10, United States Code, 

is amended by inserting after section 2359a (as added by section 

242) the following new section:

‘‘§ 2359b. Defense Acquisition Challenge Program 

‘‘(a) PROGRAM REQUIRED.—(1) The Secretary of Defense, acting 

through the Under Secretary of Defense for Acquisition, Technology, 

and Logistics, shall carry out a program to provide opportunities for 

40

the increased introduction of innovative and cost-saving technology 

in acquisition programs of the Department of Defense. 

‘‘(2) The program, to be known as the Defense Acquisition Challenge Program (hereinafter in this section referred to as the 

‘Challenge Program’), shall provide any person or activity within or 

outside the Department of Defense with the opportunity to propose 

alternatives, to be known as challenge proposals, at the component, 

subsystem, or system level of an existing Department of Defense acquisition program that would result in improvements in performance, affordability, manufacturability, or operational capability of 

that acquisition program. 

‘‘(b) PANELS.—The Under Secretary shall establish one or more 

panels of highly qualified scientists and engineers (hereinafter in 

this section referred to as ‘Panels’) to provide preliminary evaluations of challenge proposals under subsection (c).

‘‘(c) PRELIMINARY EVALUATION BY PANELS.—(1) Under procedures prescribed by the Under Secretary, a person or activity within 

or outside the Department of Defense may submit challenge proposals to a Panel, through the unsolicited proposal process or in response to a broad agency announcement. 

‘‘(2) The Under Secretary shall establish procedures pursuant to 

which appropriate officials of the Department of Defense may identify proposals submitted through the unsolicited proposal process as 

challenge proposals. The procedures shall provide for the expeditious referral of such proposals to a Panel for preliminary evaluation under this subsection. 

‘‘(3) The Under Secretary shall issue on an annual basis not 

less than one such broad agency announcement inviting interested 

parties to submit challenge proposals. Such announcements may 

also identify particular technology areas and acquisition programs 

that will be given priority in the evaluation of challenge proposals. 

‘‘(4) Under procedures established by the Under Secretary, a 

Panel shall carry out a preliminary evaluation of each challenge 

proposal submitted in response to a broad agency announcement, or 

submitted through the unsolicited proposal process and identified as 

a challenge proposal in accordance with paragraph (2), to determine 

each of the following: 

‘‘(A) Whether the challenge proposal has merit. 

‘‘(B) Whether the challenge proposal is likely to result in 

improvements in performance, affordability, manufacturability, 

or operational capability at the component, subsystem, or system level of an acquisition program. 

‘‘(C) Whether the challenge proposal could be implemented 

in the acquisition program rapidly, at an acceptable cost, and 

without unacceptable disruption to the acquisition program. 

‘‘(5) The Under Secretary may establish procedures to ensure 

that the Challenge Program does not become an avenue for the repetitive submission of proposals that have been previously reviewed 

and found not to have merit. 

‘‘(6) If a Panel determines that a challenge proposal satisfies 

each of the criteria specified in paragraph (4), the person or activity 

submitting that challenge proposal shall be provided an opportunity 

to submit such challenge proposal for a full review and evaluation 

under subsection (d). 

41

‘‘(d) FULL REVIEW AND EVALUATION.—(1) Under procedures prescribed by the Under Secretary, for each challenge proposal submitted for a full review and evaluation as provided in subsection 

(c)(6), the office carrying out the acquisition program to which the 

proposal relates shall, in consultation with the prime system contractor carrying out such program, conduct a full review and evaluation of the proposal. ‘‘(2) The full review and evaluation shall, independent of the determination of a Panel under subsection (c)(4), determine each of the 

matters specified in subparagraphs (A), (B), and (C) of such subsection. The full review and evaluation shall also include— ‘‘(A) an assessment of the cost of adopting the challenge 

proposal and implementing it in the acquisition program; and ‘‘(B) consideration of any intellectual property issues associated with the challenge proposal. 

‘‘(e) ACTION UPON FAVORABLE FULL REVIEW AND EVALUA- TION.—(1) Under procedures prescribed by the Under Secretary, 

each challenge proposal determined under a full review and evaluation to satisfy each of the criteria specified in subsection (c)(4) with 

respect to an acquisition program shall be considered by the office 

carrying out the applicable acquisition program and the prime system contractor for incorporation into the acquisition program as a 

new technology insertion at the component, subsystem, or system 

level. ‘‘(2) The Under Secretary shall encourage the adoption of each 

challenge proposal referred to in paragraph (1) by providing suitable incentives to the office carrying out the acquisition program 

and the prime system contractor carrying out such program. ‘‘(f) ACCESS TO TECHNICAL RESOURCES.—(1) Under procedures 

established by the Under Secretary, the technical resources of the 

laboratories, research, development, and engineering centers, test 

and evaluation activities, and other elements of the Department may 

be called upon to support the activities of the Challenge Program. ‘‘(2) Funds available to carry out this program may be used to 

compensate such laboratories, centers, activities, and elements for 

technical assistance provided to a Panel pursuant to paragraph (1). 

‘‘(g) ELIMINATION OF CONFLICTS OF INTEREST.—In carrying out 

each preliminary evaluation under subsection (c) and full review 

under subsection (d), the Under Secretary shall ensure the elimination of conflicts of interest. ‘‘(h) LIMITATION ON USE OF FUNDS.—Funds made available for 

the Challenge Program may be used only for activities authorized 

by this section, and not for implementation of challenge proposals. 

‘‘(i) ANNUAL REPORT.—The Under Secretary shall submit an 

annual report on the Challenge Program to Congress. The report 

shall be submitted at the same time as the President submits the 

budget for a fiscal year to Congress under section 1105(a) of title 31, 

and shall cover the conduct of the Challenge Program for the preceding fiscal year. The report shall include the number and scope 

of challenge proposals submitted, preliminarily evaluated, subjected 

to full review and evaluation, and adopted. No report is required for 

a fiscal year in which the Challenge Program is not carried out. ‘‘(j) TERMINATION OF AUTHORITY.—The Secretary may not carry 

out the Challenge Program under this section after September 30, 

2007.’’.

42

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating 

to section 2359a (as added by section 242) the following new item:

‘‘2359b. Defense Acquisition Challenge Program.’’.

SEC. 244. ENCOURAGEMENT OF SMALL BUSINESSES AND NONTRADITIONAL DEFENSE CONTRACTORS TO SUBMIT PROPOSALS 

POTENTIALLY BENEFICIAL FOR COMBATING TERRORISM. 

(a) ESTABLISHMENT OF OUTREACH PROGRAM.—During fiscal 

years 2003, 2004, and 2005, the Secretary of Defense, acting 

through the Under Secretary of Defense for Acquisition, Technology, 

and Logistics, shall carry out a program of outreach to small businesses and nontraditional defense contractors for the purpose set 

forth in subsection (b). 

(b) PURPOSE.—The purpose of the outreach program is to provide a process for reviewing and evaluating research activities of, 

and new technologies being developed by, small businesses and nontraditional defense contractors that have the potential for meeting 

a defense requirement or technology development goal of the Department of Defense that relates to the mission of the Department of Defense to combat terrorism. 

(c) GOALS.—The goals of the outreach program are as follows: 

(1) To increase efforts within the Department of Defense to 

survey and identify research activities and new technologies described in subsection (b). 

(2) To provide the Under Secretary of Defense for Acquisition, Technology, and Logistics with a source of expert advice 

on new technologies for combating terrorism. 

(3) To increase efforts to educate nontraditional defense 

contractors on Department of Defense acquisition processes, including regulations, procedures, funding opportunities, military 

needs and requirements, and technology transfer so as to encourage such contractors to submit proposals regarding research activities and new technologies described in subsection 

(b). 

(4) To increase efforts to provide timely response by the Department of Defense to acquisition proposals (including unsolicited proposals) submitted to the Department by small businesses and by nontraditional defense contractors regarding research activities and new technologies described in subsection 

(b), including through the use of electronic transactions to facilitate the processing of such proposals. 

(d) REVIEW PANEL.—(1) The Secretary shall appoint, under the 

outreach program, a panel for the review and evaluation of acquisition proposals described in subsection (c)(4). 

(2) The panel shall be composed of qualified personnel from the 

military departments, relevant Defense Agencies, industry, academia, and other private sector organizations. 

(3) Under procedures prescribed by the Under Secretary of Defense for Acquisition, Technology, and Logistics, a small business or 

nontraditional defense contractor may submit acquisition proposals 

for consideration under the program through the unsolicited proposal process or in response to a broad agency announcement. The 

Under Secretary shall issue on an annual basis not less than one 

such broad agency announcement inviting parties to submit proposals. 

43

(4) Under procedures prescribed by the Under Secretary, the 

panel shall review and evaluate acquisition proposals selected by 

the panel. An acquisition proposal shall be selected for review and 

evaluation if the panel determines that the acquisition proposal may 

present a unique and valuable approach for meeting a defense requirement or technology development goal of the Department of Defense that relates to the mission of the Department of Defense to 

combat terrorism. In carrying out its duties under this paragraph, 

the panel may act through representatives designated by the panel. 

(5) The panel shall— (A) not later than 60 days after the date on which the panel 

receives an acquisition proposal described in subsection (c)(4), 

transmit to the small business or nontraditional defense contractor that submitted the proposal a notification regarding 

whether the acquisition proposal has been selected under paragraph (4) for review and evaluation; 

(B) to the maximum extent practicable, complete the review 

and evaluation of each selected acquisition proposal not later 

than 120 days after the date on which such proposal is selected 

under paragraph (4); and 

(C) after completing the review and evaluation of an acquisition proposal, transmit the results of that review and evaluation to the small business or nontraditional defense contractor 

that submitted the proposal. 

(6) The Secretary shall ensure that the panel, in reviewing and 

evaluating acquisition proposals under this subsection, has the authority to obtain assistance, to a reasonable extent, from the appropriate technical resources of the laboratories, research, development, 

and engineering centers, test and evaluation activities, and other 

elements of the Department of Defense. 

(7) If, after completing review and evaluation of an acquisition 

proposal, the panel determines that such proposal represents a 

unique and valuable approach for meeting a defense requirement or 

technology development goal of the Department of Defense that relates to the mission of the Department of Defense to combat terrorism, the panel shall submit that determination to the Under Secretary of Defense for Acquisition, Technology, and Logistics, together 

with any recommendations that the panel considers appropriate regarding such proposal. 

(8) The Under Secretary of Defense for Acquisition, Technology, 

and Logistics may provide funding for acquisition proposals with 

respect to which the panel has submitted a determination under 

paragraph (7) through appropriate accounts of the military departments, Defense Agencies, the Small Business Innovative Research 

program, or any other acquisition program. 

(9) The Secretary of Defense shall ensure that a member of the 

panel has no conflict of interest with respect to the review and evaluation of an acquisition proposal by the panel. 

(e) NONTRADITIONAL DEFENSE CONTRACTOR DEFINED.—In this 

section, the term ‘‘nontraditional defense contractor’’ means an entity that has not, for at least one year prior to the date of the enactment of this Act, entered into, or performed with respect to, any contract described in paragraph (1) or (2) of section 845(e) of the National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 

2371 note).

44

SEC. 245. VEHICLE FUEL CELL PROGRAM. 

(a) PROGRAM REQUIRED.—The Secretary of Defense shall carry 

out a program for the development of vehicle fuel cell technology. 

(b) GOALS AND OBJECTIVES.—The goals and objectives of the 

program shall be as follows: 

(1) To identify and support technological advances that are 

necessary for the development of fuel cell technology for use in 

vehicles of types to be used by the Department of Defense. 

(2) To ensure that critical technology advances are shared 

among the various fuel cell technology programs within the 

Federal Government. 

(3) To maximize the leverage of Federal funds that are used 

for the development of fuel cell technology. 

(c) CONTENT OF PROGRAM.—The program shall include—

(1) development of vehicle propulsion technologies and fuel 

cell auxiliary power units, together with pilot projects for the 

demonstration of such technologies, as appropriate; and 

(2) development of technologies necessary to address critical 

issues with respect to vehicle fuel cells, such as issues relating 

to hydrogen storage and hydrogen fuel infrastructure. 

(d) COOPERATION WITH INDUSTRY.—(1) The Secretary shall 

carry out the program in cooperation with companies selected by the 

Secretary. The Secretary shall select such companies from among—

(A) companies in the automobile and truck manufacturing 

industry; 

(B) companies in the business of supplying systems and 

components to that industry; and 

(C) companies in any other industries that the Secretary 

considers appropriate. 

(2) The Secretary may enter into a cooperative agreement with 

one or more companies selected under paragraph (1) to establish an 

entity for carrying out activities required by subsection (c). 

(3) The Secretary shall ensure that companies referred to in 

paragraph (1) collectively contribute, in cash or in kind, not less 

than one-half of the total cost of carrying out the program under 

this section. 

(e) COORDINATION WITH OTHER FEDERAL AGENCIES.—The Secretary shall carry out the program using a coordinating mechanism 

for sharing information and resources with the Department of Energy and other Federal agencies. 

(f) INITIAL FUNDING.—Of the funds authorized to be appro- priated by section 201(4), $10,000,000 shall be available for the program required by this section.

SEC. 246. DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM. 

(a) ESTABLISHMENT.—The Secretary of Defense shall carry out 

a defense nanotechnology research and development program. 

(b) PURPOSES.—The purposes of the program are as follows: 

(1) To ensure United States global superiority in 

nanotechnology necessary for meeting national security requirements. 

(2) To coordinate all nanoscale research and development 

within the Department of Defense, and to provide for interagency cooperation and collaboration on nanoscale research 

and development between the Department of Defense and other 

45

departments and agencies of the United States that are involved 

in nanoscale research and development. 

(3) To develop and manage a portfolio of fundamental and 

applied nanoscience and engineering research initiatives that is 

stable, consistent, and balanced across scientific disciplines.

(4) To accelerate the transition and deployment of technologies and concepts derived from nanoscale research and development into the Armed Forces, and to establish policies, procedures, and standards for measuring the success of such efforts. 

(5) To collect, synthesize, and disseminate critical information on nanoscale research and development. 

(c) ADMINISTRATION.—In carrying out the program, the Secretary shall act through the Director of Defense Research and Engineering, who shall supervise the planning, management, and coordination of the program. The Director, in consultation with the 

Secretaries of the military departments and the heads of participating Defense Agencies and other departments and agencies of the 

United States, shall— (1) prescribe a set of long-term challenges and a set of specific technical goals for the program; 

(2) develop a coordinated and integrated research and investment plan for meeting the long-term challenges and achieving the specific technical goals that builds upon the Department’s increased investment in nanotechnology research and development and the National Nanotechnology Initiative; and 

(3) develop memoranda of agreement, joint funding agreements, and other cooperative arrangements necessary for meeting the long-term challenges and achieving the specific technical goals. 

(d) ANNUAL REPORT.—Not later than March 1 of each of 2004, 

2005, 2006, and 2007, the Director of Defense Research and Engineering shall submit to the congressional defense committees a report on the program. The report shall contain the following matters: 

(1) A review of— (A) the long-term challenges and specific technical 

goals of the program; and 

(B) the progress made toward meeting those challenges 

and achieving those goals.

(2) An assessment of current and proposed funding levels, 

including the adequacy of such funding levels to support program activities. 

(3) A review of the coordination of activities within the Department of Defense, with other departments and agencies, and 

with the National Nanotechnology Initiative. 

(4) An assessment of the extent to which effective technology 

transition paths have been established as a result of activities 

under the program. 

(5) Recommendations for additional program activities to 

meet emerging national security requirements.

SEC. 247. ACTIVITIES OF THE DEFENSE EXPERIMENTAL PROGRAM TO 

STIMULATE COMPETITIVE RESEARCH. 

Subsection (c) of section 257 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C. 2358 

note) is amended—

46

(1) in paragraph (1), by striking ‘‘research grants’’ and inserting ‘‘grants for research and instrumentation to support 

such research’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(3) Any other activities that are determined necessary to 

further the achievement of the objectives of the program.’’.

SEC. 248. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD 

PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS 

AND ADDITIONAL AUTHORITY OF MILITARY DEPARTMENTS AND DEFENSE AGENCIES TO AWARD PRIZES FOR 

ACHIEVEMENTS IN PROMOTING EDUCATION. 

(a) EXTENSION.—Section 2374a(f) of title 10, United States 

Code, is amended by striking ‘‘September 30, 2003’’ and inserting 

‘‘September 30, 2007’’. 

(b) REPORT ON ADMINISTRATION OF PROGRAM.—(1) Not later 

than December 31, 2002, the Director of the Defense Advanced Research Projects Agency shall submit to the congressional defense 

committees a report on the proposal of the Director for the administration of the program to award prizes for advanced technology 

achievements under section 2374a of title 10, United States Code. 

(2) The report shall include the following: 

(A) The results of consultations by the Director with officials of the military departments regarding the technology areas 

for which competitive prizes would be established. 

(B) A description of the proposed goals of the competitions 

that would be established under the program, including the 

technology areas to be promoted by the competitions and the relationship of such areas to military missions of the Department 

of Defense. 

(C) The proposed rules for the competitions that would be 

established under the program and a description of the proposed management of the competitions. 

(D) A description of the manner in which the amounts of 

the cash prizes awarded and claimed under the program would 

be allocated among the accounts of the Defense Advanced Research Projects Agency for recording as obligations and expenditures. 

(E) For each competition that would be established under 

the program, a statement of the reasons why the competition is 

a preferable means of promoting basic, advanced, and applied 

research, advanced technology development, or prototype 

projects, rather than other means of promoting such activities, 

including contracts, grants, cooperative agreements, and other 

transactions. 

(c) ADDITIONAL AUTHORITY TO AWARD CASH PRIZES FOR PROMOTING EDUCATION IN SUPPORT OF DOD MISSIONS.—(1) Chapter 

139 of title 10, United States Code, is amended by adding at the 

end the following new section:

‘‘§ 2374b. Prizes for achievements in promoting science, mathematics, engineering, or technology education 

‘‘(a) AUTHORITY.—The Secretaries of the military departments 

and the heads of defense agencies may each carry out a program to 

award cash prizes in recognition of outstanding achievements that 

are designed to promote science, mathematics, engineering, or techVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00070 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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nology education in support of the missions of the Department of 

Defense. 

‘‘(b) COMPETITION REQUIREMENTS.—Each program under subsection (a) shall use a competitive process for the selection of recipients of cash prizes. 

‘‘(c) LIMITATION.—For any single program under subsection (a), 

the total amount made available for award of cash prizes in a fiscal 

year may not exceed $1,000,000. 

‘‘(d) RELATIONSHIP TO OTHER AUTHORITY.—The program under 

subsection (a) may be carried out in conjunction with or in addition 

to the exercise of any other authority to acquire, support, or stimulate basic and applied research, advanced technology development, 

or prototype development projects. 

‘‘(e) ANNUAL REPORT.—Promptly after the end of each fiscal 

year, each Secretary of a military department and each head of a 

defense agency carrying out a program under subsection (a) shall 

submit to the Committees on Armed Services of the Senate and the 

House of Representatives a report on the administration of that program for that fiscal year. 

‘‘(f) PERIOD OF AUTHORITY.—The authority to award prizes 

under subsection (a) shall terminate at the end of September 30, 

2006.’’.

(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘2374b. Prizes for achievements in promoting science, mathematics, engineering, or 

technology education.’’.

SEC. 249. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF 

MEASUREMENT AND SIGNATURES INTELLIGENCE CAPABILITIES OF THE UNITED STATES THROUGH INCORPORATION OF RESULTS OF BASIC RESEARCH ON SENSORS. 

(a) CONGRESSIONAL FINDING.—Congress finds that the national 

interest will be served by the rapid exploitation of basic research on 

sensors for purposes of enhancing the measurement and signatures 

intelligence (MASINT) capabilities of the United States. 

(b) PLAN FOR RESEARCH PROGRAM.—(1) Not later than March 

31, 2003, the Secretary of Defense shall submit to Congress a plan 

for a five-year program of research intended to provide for the incorporation of the results of basic research on sensors into the measurement and signatures intelligence systems of the United States, to the 

extent the results of such research is applicable to such systems. 

Such program shall include the review and assessment of basic research on sensors for purpose of such incorporation, including both 

basic research on sensors conducted by the Government and basic 

research on sensors conducted by non-governmental entities. 

(2) The plan submitted under paragraph (1) shall provide that 

the activities to be carried out under the program provided for in 

the plan shall be carried out by a consortium consisting of such governmental and non-governmental entities as the Secretary considers 

appropriate for purposes of incorporating the broadest practicable 

range of sensor capabilities into the systems referred to in paragraph (1). The consortium may include national laboratories, universities, and private sector entities. 

(3) The plan shall include a proposal for the funding of activities under the five-year program provided for in the plan, including 

48

cost-sharing by non-governmental participants in the consortium 

under paragraph (2).

TITLE III—OPERATION AND 

MAINTENANCE

Subtitle A—Authorization of Appropriations 

Sec. 301. Operation and maintenance funding. 

Sec. 302. Working capital funds. 

Sec. 303. Armed Forces Retirement Home. 

Sec. 304. Grant to National Guard Youth Foundation. 

Subtitle B—Environmental Provisions 

Sec. 311. Enhancement of authority on cooperative agreements for environmental 

purposes. 

Sec. 312. Single point of contact for policy and budgeting issues regarding 

unexploded ordnance, discarded military munitions, and munitions constituents. 

Sec. 313. Authority to carry out construction projects for environmental responses. 

Sec. 314. Procurement of environmentally preferable procurement items. 

Sec. 315. Incidental taking of migratory birds during military readiness activities. 

Subtitle C—Commissaries and Nonappropriated Fund Instrumentalities 

Sec. 321. Authority for each military department to provide base operating support 

to Fisher Houses. 

Sec. 322. Use of commissary stores and MWR retail facilities by members of National Guard serving in national emergency. 

Sec. 323. Uniform funding and management of morale, welfare, and recreation programs. 

Sec. 324. Rebate agreements under the special supplemental food program. 

Subtitle D—Workplace and Depot Issues 

Sec. 331. Notification requirements in connection with required studies for conversion of commercial or industrial type functions to contractor performance. 

Sec. 332. Temporary authority for contractor performance of security-guard functions to meet increased requirements since September 11, 2001. 

Sec. 333. Repeal of obsolete provision regarding depot-level maintenance and repair 

workloads that were performed at closed or realigned military installations. 

Sec. 334. Exclusion of certain expenditures from limitation on private sector performance of depot-level maintenance. 

Subtitle E—Defense Dependents Education 

Sec. 341. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees. 

Sec. 342. Housing benefits for unaccompanied teachers required to live at Guantanamo Bay Naval Station, Cuba. 

Sec. 343. Options for funding dependent summer school programs. 

Sec. 344. Impact aid eligibility for local educational agencies affected by privatization of military housing. 

Sec. 345. Comptroller General study of adequacy of compensation provided for 

teachers in the Department of Defense Overseas Dependents’ Schools. 

Subtitle F—Information Technology 

Sec. 351. Annual submission of information regarding information technology capital assets. 

Sec. 352. Policy regarding acquisition of information assurance and information assurance-enabled information technology products. 

Sec. 353. Installation and connection policy and procedures regarding Defense 

Switch Network. 

49

Subtitle G—Other Matters 

Sec. 361. Distribution of monthly reports on allocation of funds within operation 

and maintenance budget subactivities. 

Sec. 362. Continuation of arsenal support program initiative. 

Sec. 363. Extension of work safety demonstration program. 

Sec. 364. Condition on authority of Defense Security Service to impose fees on feefor-service basis. 

Sec. 365. Logistics support and services for weapon systems contractors. 

Sec. 366. Training range sustainment plan, Global Status of Resources and Training System, and training range inventory. 

Sec. 367. Engineering study and environmental analysis of road modifications in vicinity of Fort Belvoir, Virginia. 

Sec. 368. Reauthorization of warranty claims recovery pilot program. 

Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, historical artifacts, and condemned or obsolete combat materiel.

Subtitle A—Authorization of 

Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 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, $23,922,251,000. 

(2) For the Navy, $29,264,939,000. 

(3) For the Marine Corps, $3,559,636,000. 

(4) For the Air Force, $27,419,488,000. 

(5) For Defense-wide activities, $14,145,310,000. 

(6) For the Army Reserve, $1,985,110,000. 

(7) For the Naval Reserve, $1,233,759,000. 

(8) For the Marine Corps Reserve, $189,532,000. 

(9) For the Air Force Reserve, $2,160,604,000. 

(10) For the Army National Guard, $4,155,067,000. 

(11) For the Air National Guard, $4,104,810,000.

(12) For the Defense Inspector General, $155,165,000. 

(13) For the United States Court of Appeals for the Armed 

Forces, $9,614,000. 

(14) For Environmental Restoration, Army, $395,900,000. 

(15) For Environmental Restoration, Navy, $256,948,000. 

(16) For Environmental Restoration, Air Force, 

$389,773,000. 

(17) For Environmental Restoration, Defense-wide, 

$23,498,000. 

(18) For Environmental Restoration, Formerly Used Defense Sites, $252,102,000. 

(19) For Overseas Humanitarian, Disaster, and Civic Aid 

programs, $58,400,000. 

(20) For Drug Interdiction and Counter-drug Activities, Defense-wide, $859,907,000. 

(21) For the Kaho’olawe Island Conveyance, Remediation, 

and Environmental Restoration Trust Fund, $25,000,000. 

(22) For Defense Health Program, $14,123,038,000. 

(23) For Cooperative Threat Reduction programs, 

$416,700,000. 

50

(24) For Support for International Sporting Competitions, Defense, $19,000,000. 

(25) For overseas contingency operations transfer fund, $17,844,000. 

SEC. 302. WORKING CAPITAL FUNDS. 

Funds are hereby authorized to be appropriated for fiscal year 

2003 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working 

capital and revolving funds in amounts as follows: (1) For the Defense Working Capital Funds, $387,156,000.

(2) For the National Defense Sealift Fund, $934,129,000. 

(3) For the Defense Commissary Agency Working Capital Fund, $969,200,000. 

(4) For the Pentagon Reservation Maintenance Revolving Fund, $328,000,000.

SEC. 303. ARMED FORCES RETIREMENT HOME. 

There is hereby authorized to be appropriated for fiscal year 

2003 from the Armed Forces Retirement Home Trust Fund the sum 

of $69,921,000 for the operation of the Armed Forces Retirement 

Home. 

SEC. 304. GRANT TO NATIONAL GUARD YOUTH FOUNDATION. 

Of the amount authorized to be appropriated by section 301(5) 

for administrative and service-wide activities for civil-military programs, the Secretary of Defense may use up to $2,500,000 to make 

a grant to the National Guard Youth Foundation to support the efforts of the Foundation to mobilize individuals, groups, and organizations to build and strengthen the character and competence of 

youth in the United States.

Subtitle B—Environmental Provisions

SEC. 311. ENHANCEMENT OF AUTHORITY ON COOPERATIVE AGREEMENTS FOR ENVIRONMENTAL PURPOSES. 

Section 2701(d) of title 10, United States Code, is amended— (1) in paragraph (1), by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’; 

(2) by redesignating paragraphs (2) and (3) as paragraphs 

(3) and (4), respectively; and 

(3) by inserting after paragraph (1) the following new paragraph (2): ‘‘(2) CROSS-FISCAL YEAR AGREEMENTS.—An agreement with 

an agency under paragraph (1) may be for a period that begins 

in one fiscal year and ends in another fiscal year so long as the 

period of the agreement does not exceed two years.’’.

SEC. 312. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING 

ISSUES REGARDING UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS, AND MUNITIONS CONSTITUENTS. 

Section 2701 of title 10, United States Code, is amended by 

adding at the end the following new subsection: ‘‘(k) UXO PROGRAM MANAGER.—(1) The Secretary of Defense 

shall establish a program manager who shall serve as the single 

point of contact in the Department of Defense for policy and budgeting issues involving the characterization, remediation, and manVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00074 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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agement of explosive and related risks with respect to unexploded 

ordnance, discarded military munitions, and munitions constituents 

at defense sites (as such terms are defined in section 2710 of this 

title) that pose a threat to human health or safety. 

‘‘(2) The authority to establish the program manager may be 

delegated to the Secretary of a military department, who may delegate the authority to the Under Secretary of that military department. The authority may not be further delegated. 

‘‘(3) The program manager may establish an independent advisory and review panel that may include representatives of the National Academy of Sciences, nongovernmental organizations with expertise regarding unexploded ordnance, discarded military munitions, or munitions constituents, the Environmental Protection 

Agency, States (as defined in section 2710 of this title), and tribal 

governments. If established, the panel shall report annually to Congress on progress made by the Department of Defense to address 

unexploded ordnance, discarded military munitions, or munitions 

constituents at defense sites and make such recommendations as the 

panel considers appropriate.’’.

SEC. 313. AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS FOR 

ENVIRONMENTAL RESPONSES. 

(a) RESTATEMENT AND MODIFICATION OF AUTHORITY.—Chapter 

160 of title 10, United States Code, is amended—

(1) by redesignating section 2707 as section 2700 and transferring such section to appear immediately after the table of sections at the beginning of such chapter; and 

(2) by inserting after section 2706 the following new section 

2707: 

‘‘§ 2707. Environmental restoration projects for environmental responses 

‘‘(a) ENVIRONMENTAL RESTORATION PROJECTS AUTHORIZED.—

The Secretary of Defense or the Secretary of a military department 

may carry out an environmental restoration project if that Secretary 

determines that the project is necessary to carry out a response 

under this chapter or CERCLA. 

‘‘(b) TREATMENT OF PROJECT.—Any construction, development, 

conversion, or extension of a structure, and any installation of 

equipment, that is included in an environmental restoration project 

under this section may not be considered military construction (as 

that term is defined in section 2801(a) of this title). 

‘‘(c) SOURCE OF FUNDS.—Funds authorized for deposit in an account established by section 2703(a) of this title shall be the only 

source of funds to conduct an environmental restoration project 

under this section. 

‘‘(d) ENVIRONMENTAL RESTORATION PROJECT DEFINED.—In this 

section, the term ‘environmental restoration project’ includes any 

construction, development, conversion, or extension of a structure, or 

installation of equipment, in direct support of a response.’’. 

(b) REPEAL OF SUPERSEDED PROVISION.—Section 2810 of such 

title is repealed. 

(c) CONFORMING AMENDMENTS.—Chapter 160 of such title is 

further amended—

(1) in section 2700 (as redesignated by subsection (a))—

52

(A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and 

(B) by inserting after ‘‘In this chapter:’’ the following 

new paragraph: 

‘‘(1) The term ‘CERCLA’ means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 

(42 U.S.C. 9601 et seq.).’’; and 

(2) in section 2701(a)(2), by striking ‘‘the Comprehensive 

Environmental Response, Compensation, and Liability Act of 

1980 (hereinafter in this chapter referred to as ‘CERCLA’) (42 

U.S.C. 9601 et seq.)’’ and inserting ‘‘CERCLA’’. (d) CLERICAL AMENDMENTS.—(1) The table of sections at the beginning of chapter 160 of such title is amended— (A) by inserting before the item relating to section 2701 the 

following new item:

‘‘2700. Definitions.’’; and

(B) by striking the item relating to section 2707 and inserting the following new item:

‘‘2707. Environmental restoration projects for environmental responses.’’.

(2) The table of sections at the beginning of chapter 169 of such 

title is amended by striking the item relating to section 2810.

SEC. 314. PROCUREMENT OF ENVIRONMENTALLY PREFERABLE PROCUREMENT ITEMS. 

(a) TRACKING SYSTEM.—The Secretary of Defense shall develop 

and implement an effective and efficient tracking system to identify 

the extent to which the Defense Logistics Agency procures environmentally preferable procurement items or procurement items made 

with recovered material. The system shall provide for the separate 

tracking, to the maximum extent practicable, of the procurement of 

each category of procurement items that, as of the date of the enactment of this Act, has been determined to be environmentally preferable or made with recovered material. 

(b) ASSESSMENT OF TRAINING AND EDUCATION.—The Secretary 

of Defense shall assess the need to establish a program, or enhance 

existing programs, for training and educating Department of Defense procurement officials to ensure that they are aware of any Department requirements, preferences, or goals for the procurement of 

environmentally preferable procurement items or procurement items 

made with recovered material. 

(c) REPORTING REQUIREMENT.—Not later than March 1, 2004, 

and each March 1 thereafter through 2007, 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 detailing the results obtained from the tracking system developed under subsection (a). 

(d) RELATION TO OTHER LAWS.—Nothing in this section shall be 

construed to alter the requirements of the Solid Waste Disposal Act 

(40 U.S.C. 6901 et seq.). 

(e) DEFINITIONS.—In this section: 

(1) The term ‘‘environmentally preferable’’, in the case of a 

procurement item, means that the item has a lesser or reduced 

effect on human health and the environment when compared 

with competing products that serve the same purpose. The comparison may consider raw materials acquisition, production, 

53

manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product. 

(2) The terms ‘‘procurement item’’ and ‘‘recovered material’’ have the meanings given such terms in section 1004 of the Solid 

Waste Disposal Act (40 U.S.C. 6903).

SEC. 315. INCIDENTAL TAKING OF MIGRATORY BIRDS DURING MILITARY READINESS ACTIVITIES. 

(a) INTERIM AUTHORITY FOR INCIDENTAL TAKINGS.—During the 

period described in subsection (c), section 2 of the Migratory Bird 

Treaty Act (16 U.S.C. 703) shall not apply to the incidental taking 

of a migratory bird by a member of the Armed Forces during a military readiness activity authorized by the Secretary of Defense or the 

Secretary of the military department concerned. 

(b) IDENTIFICATION OF MEASURES TO MINIMIZE IMPACT OF AC- TIVITIES.—During the periods described in subsections (c) and (d), 

the Secretary of Defense shall, in consultation with the Secretary of 

the Interior, identify measures— (1) to minimize and mitigate, to the extent practicable, any 

adverse impacts of authorized military readiness activities on 

affected species of migratory birds; and 

(2) to monitor the impacts of such military readiness activities on affected species of migratory birds. 

(c) PERIOD OF APPLICATION FOR INTERIM AUTHORITY.—The period described in this subsection is the period beginning on the date 

of the enactment of this Act and ending on the date on which the 

Secretary of the Interior publishes in the Federal Register a notice 

that— (1) regulations authorizing the incidental taking of migratory birds by members of the Armed Forces have been prescribed in accordance with the requirements of subsection (d); 

(2) all legal challenges to the regulations and to the manner of their promulgation (if any) have been exhausted as provided in subsection (e); and 

(3) the regulations have taken effect. 

(d) INCIDENTAL TAKINGS AFTER INTERIM PERIOD.—(1) Not later 

than the expiration of the one-year period beginning on the date of 

the enactment of this Act, the Secretary of the Interior shall exercise 

the authority of that Secretary under section 3(a) of the Migratory 

Bird Treaty Act (16 U.S.C. 704(a)) to prescribe regulations to exempt the Armed Forces for the incidental taking of migratory birds 

during military readiness activities authorized by the Secretary of 

Defense or the Secretary of the military department concerned.

(2) The Secretary of the Interior shall exercise authority under 

paragraph (1) with the concurrence of the Secretary of Defense. 

(e) LIMITATION ON JUDICIAL REVIEW.—An action seeking judicial review of regulations prescribed pursuant to this section or of 

the manner of their promulgation must be filed in the appropriate 

Federal court by not later than the expiration of the 120-day period 

beginning on the date on which such regulations are published in 

the Federal Register. Upon the expiration of such period and the exhaustion of any legal challenges to the regulations pursuant to any 

action filed in such period, there shall be no further judicial review 

of such regulations or of the manner of their promulgation. 

(f) MILITARY READINESS ACTIVITY.—(1) In this section the term 

‘‘military readiness activity’’ includes—

54

(A) all training and operations of the Armed Forces that relate to combat; and 

(B) the adequate and realistic testing of military equipment, vehicles, weapons, and sensors for proper operation and 

suitability for combat use. 

(2) The term does not include—

(A) the routine operation of installation operating support 

functions, such as administrative offices, military exchanges, 

commissaries, water treatment facilities, storage facilities, 

schools, housing, motor pools, laundries, morale, welfare, and 

recreation activities, shops, and mess halls; 

(B) the operation of industrial activities; or 

(C) the construction or demolition of facilities used for a 

purpose described in subparagraph (A) or (B).

Subtitle C—Commissaries and 

Nonappropriated Fund Instrumentalities

SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT TO PROVIDE 

BASE OPERATING SUPPORT TO FISHER HOUSES. 

Section 2493(f) of title 10, United States Code, is amended to 

read as follows: 

‘‘(f) BASE OPERATING SUPPORT.—The Secretary of a military department may provide base operating support for Fisher Houses associated with health care facilities of that military department.’’.

SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL FACILITIES 

BY MEMBERS OF NATIONAL GUARD SERVING IN NATIONAL EMERGENCY. 

(a) ADDITIONAL BASIS FOR AUTHORIZED USE.—Section 1063a of 

title 10, United States Code, is amended—

(1) in subsection (a), by inserting ‘‘or national emergency’’

after ‘‘federally declared disaster’’; and 

(2) in subsection (c), by adding at the end the following new 

paragraph: 

‘‘(3) NATIONAL EMERGENCY.—The term ‘national emergency’

means a national emergency declared by the President or Congress.’’. 

(b) CLERICAL AMENDMENTS.—(1) The heading of such section is 

amended to read as follows: 

‘‘§ 1063a. Use of commissary stores and MWR retail facilities: 

members of National Guard serving in federally declared disaster or national emergency’’. 

(2) The table of sections at the beginning of chapter 54 of such 

title is amended by striking the item relating to section 1063a and 

inserting the following new item:

‘‘1063a. Use of commissary stores and MWR retail facilities: members of National 

Guard serving in federally declared disaster or national emergency.’’.

SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, AND RECREATION PROGRAMS. 

(a) IN GENERAL.—Chapter 147 of title 10, United States Code, 

is amended by adding at the end the following new section: 

55

‘‘§ 2494. Uniform funding and management of morale, welfare, and recreation programs 

‘‘(a) AUTHORITY FOR UNIFORM FUNDING AND MANAGEMENT.—

Under regulations prescribed by the Secretary of Defense, funds appropriated to the Department of Defense and available for morale, 

welfare, and recreation programs may be treated as nonappropriated funds and expended in accordance with laws applicable to the expenditures of nonappropriated funds. When made available for morale, welfare, and recreation programs under such regulations, appropriated funds shall be considered to be nonappropriated funds for all purposes and shall remain available 

until expended. 

‘‘(b) CONDITIONS ON AVAILABILITY.—Funds appropriated to the 

Department of Defense may be made available to support a morale, 

welfare, or recreation program only if the program is authorized to 

receive appropriated fund support and only in the amounts the program is authorized to receive. 

‘‘(c) CONVERSION OF EMPLOYMENT POSITIONS.—(1) The Secretary of Defense may identify positions of employees in morale, welfare, and recreation programs within the Department of Defense 

who are paid with appropriated funds whose status may be converted from the status of an employee paid with appropriated funds 

to the status of an employee of a nonappropriated fund instrumentality. 

‘‘(2) The status of an employee in a position identified by the 

Secretary under paragraph (1) may, with the consent of the employee, be converted to the status of an employee of a nonappropriated fund instrumentality. An employee who does not consent to the conversion may not be removed from the position because 

of the failure to provide such consent. 

‘‘(3) The conversion of an employee from the status of an employee paid by appropriated funds to the status of an employee of 

a nonappropriated fund instrumentality shall be without a break in 

service for the concerned employee. The conversion shall not entitle 

an employee to severance pay, back pay or separation pay under 

subchapter IX of chapter 55 of title 5, or be considered an involuntary separation or other adverse personnel action entitling an employee to any right or benefit under such title or any other provision 

of law or regulation.

‘‘(4) In this subsection, the term ‘an employee of a nonappropriated fund instrumentality’ means an employee described in 

section 2105(c) of title 5.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘2494. Uniform funding and management of morale, welfare, and recreation programs.’’.

SEC. 324. REBATE AGREEMENTS UNDER THE SPECIAL SUPPLEMENTAL 

FOOD PROGRAM. 

(a) APPLICABILITY TO NAVY EXCHANGE MARKETS.—Paragraph 

(1)(A) of section 1060a(e) of title 10, United States Code, is amended 

by inserting ‘‘or Navy Exchange Markets’’ after ‘‘commissary stores’’. (b) INCREASED MAXIMUM PERIOD OF AGREEMENT.—Paragraph 

(3) of such section is amended by striking ‘‘subsection may not exVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00079 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
56

ceed one year’’ in the first sentence and inserting ‘‘subsection, including any period of extension of the contract by modification of 

the contract, exercise of an option, or other cause, may not exceed 

three years’’.

Subtitle D—Workplace and Depot Issues

SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION WITH REQUIRED STUDIES FOR CONVERSION OF COMMERCIAL OR 

INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE. 

Subsection (c) of section 2461 of title 10, United States Code, is 

amended to read as follows: ‘‘(c) SUBMISSION OF ANALYSIS RESULTS.—(1) Upon the completion of an analysis of a commercial or industrial type function described in subsection (a) for possible change to performance by the 

private sector, the Secretary of Defense shall submit to Congress a 

report containing the results of the analysis, including the results 

of the examinations required by subsection (b)(3). ‘‘(2) The report shall also contain the following: ‘‘(A) The date when the analysis of the function was commenced. ‘‘(B) The Secretary’s certification that the Government calculation of the cost of performance of the function by Department of Defense civilian employees is based on an estimate of 

the most cost effective manner for performance of the function 

by Department of Defense civilian employees. ‘‘(C) The number of Department of Defense civilian employees who were performing the function when the analysis was 

commenced and the number of such employees whose employment was or will be terminated or otherwise affected by changing to performance of the function by the private sector or by 

implementation of the most efficient organization of the function. 

‘‘(D) The Secretary’s certification that the factors considered 

in the examinations performed under subsection (b)(3), and in 

the making of the decision regarding changing to performance 

of the function by the private sector or retaining performance in 

the most efficient organization of the function, did not include 

any predetermined personnel constraint or limitation in terms 

of man years, end strength, full-time equivalent positions, or 

maximum number of employees. 

‘‘(E) A statement of the potential economic effect of implementing the decision regarding changing to performance of the 

function by the private sector or retaining performance in the 

most efficient organization of the function on each affected local 

community, as determined in the examination under subsection 

(b)(3)(B)(ii). 

‘‘(F) A schedule for completing the change to performance 

of the function by the private sector or implementing the most 

efficient organization of the function. 

‘‘(G) In the case of a commercial or industrial type function 

performed at a Center of Industrial and Technical Excellence 

designated under section 2474(a) of this title or an Army ammunition plant, a description of the effect that the manner of 

57

performance of the function, and administration of the resulting 

contract if any, will have on the overhead costs of the center or 

ammunition plant, as the case may be. ‘‘(H) The Secretary’s certification that the entire analysis is 

available for examination. 

‘‘(3)(A) If a decision is made to change the commercial or industrial type function that was the subject of the analysis to performance by the private sector, the change of the function to contractor 

performance may not begin until after the submission of the report 

required by paragraph (1). ‘‘(B) Notwithstanding subparagraph (A), in the case of a commercial or industrial type function performed at a Center of Industrial and Technical Excellence designated under section 2474(a) of 

this title or an Army ammunition plant, the change of the function 

to contractor performance may not begin until at least 60 days after 

the submission of the report.’’.

SEC. 332. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE 

OF SECURITY-GUARD FUNCTIONS TO MEET INCREASED 

REQUIREMENTS SINCE SEPTEMBER 11, 2001. 

(a) CONTRACT AUTHORITY.—The Secretary of Defense or the 

Secretary of a military department may enter into a contract for any 

increased performance of security-guard functions at a military installation or facility under the jurisdiction of the Secretary undertaken in response to the terrorist attacks on the United States on 

September 11, 2001, and may waive the prohibition under section 

2465(a) of title 10, United States Code, with respect to such contract, if—

(1) without the contract, members of the Armed Forces are 

or would be used to perform the increased security-guard functions; and 

(2) the Secretary concerned determines that— (A) the recruiting and training standards for the personnel who are to perform the security-guard functions at 

the installation or facility under the contract are comparable to the recruiting and training standards for the 

personnel of the Department of Defense who perform security-guard functions at military installations and facilities 

under the jurisdiction of the Secretary; 

(B) the contractor personnel performing such functions 

under the contract will be effectively supervised, reviewed, 

and evaluated; and 

(C) the performance of such functions by the contractor 

personnel will not result in a reduction in the security of 

the installation or facility. 

(b) INCREASED PERFORMANCE DEFINED.—In this section, the 

term ‘‘increased performance’’, with respect to security-guard functions at a military installation or facility, means—

(1) in the case of an installation or facility where no security-guard functions were performed as of September 10, 2001, 

the entire scope or extent of the performance of security-guard 

functions at the installation or facility after such date; and 

(2) in the case of an installation or facility where securityguard functions were performed within a lesser scope of requirements or to a lesser extent as of September 10, 2001, than after 

such date, the increment of the performance of security-guard 

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functions at the installation or facility that exceeds such lesser 

scope of requirements or extent of performance. 

(c) EXPIRATION OF AUTHORITY.—The authority for contractor 

performance of security-guard functions under this section shall terminate at the end of the three-year period beginning on the date of 

the enactment of this Act. The term of any contract entered into 

using the authority provided by this section may not extend beyond 

the end of such period. 

(d) NEEDS ASSESSMENT AND PLAN.—Not later than 180 days 

after the date of the enactment of this Act, the Secretary of Defense 

shall—

(1) identify any requirements for the performance of security-guard functions at military installations and facilities 

under the jurisdiction of the Secretary or the Secretary of a 

military department that are expected to continue for more than 

three years after the date of the enactment of this Act and, in 

the absence of further action by the Secretary or Congress, 

would otherwise be performed by members of the Armed Forces; 

and 

(2) submit to the congressional defense committees a plan 

for meeting those requirements on a long-term basis.

SEC. 333. REPEAL OF OBSOLETE PROVISION REGARDING DEPOTLEVEL MAINTENANCE AND REPAIR WORKLOADS THAT 

WERE PERFORMED AT CLOSED OR REALIGNED MILITARY 

INSTALLATIONS. 

(a) REPEAL.—Section 2469a of title 10, United States Code, is 

repealed. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 146 of such title is amended by striking the item relating to section 2469a.

SEC. 334. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION 

ON PRIVATE SECTOR PERFORMANCE OF DEPOT-LEVEL 

MAINTENANCE. 

Section 2474(f) of title 10, United States Code, is amended—

(1) in paragraph (1), by striking ‘‘Amounts expended out of 

funds described in paragraph (2) for the performance of a 

depot-level maintenance and repair workload by non-Federal 

Government personnel at a Center of Industrial and Technical 

Excellence’’ and inserting ‘‘Amounts expended for the performance of a depot-level maintenance and repair workload by nonFederal Government personnel at a Center of Industrial and 

Technical Excellence under any contract entered into during fiscal years 2003 through 2006’’; 

(2) by striking paragraph (2); and 

(3) by redesignating paragraph (3) as paragraph (2).

Subtitle E—Defense Dependents Education

SEC. 341. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES 

AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES. 

(a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR

FISCAL YEAR 2003.—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 

59

purpose of providing educational agencies assistance to local educational agencies. 

(b) NOTIFICATION.—Not later than June 30, 2003, the Secretary 

of Defense shall notify each local educational agency that is eligible 

for educational agencies assistance for fiscal year 2003 of— (1) that agency’s eligibility for the assistance; and 

(2) the amount of the assistance for which that agency is 

eligible. 

(c) DISBURSEMENT OF FUNDS.—The Secretary of Defense shall 

disburse funds made available under subsection (a) not later than 

30 days after the date on which notification to the eligible local educational agencies is provided pursuant to subsection (b). 

(d) DEFINITIONS.—In this section: 

(1) The term ‘‘educational agencies assistance’’ means assistance authorized under section 386(b) of the National Defense 

Authorization Act for Fiscal Year 1993 (Public Law 102–484; 

20 U.S.C. 7703 note). 

(2) 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. 342. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS REQUIRED TO LIVE AT GUANTANAMO BAY NAVAL STATION, 

CUBA. 

Section 7 of the Defense Department Overseas Teachers Pay and 

Personnel Practices Act (20 U.S.C. 905) is amended by adding at 

the end the following new subsection: 

‘‘(f)(1) A teacher assigned to teach at Guantanamo Bay Naval 

Station, Cuba, who is not accompanied at such station by any dependent shall be offered for lease any available military family 

housing at such station that is suitable for occupancy by the teacher 

and is not needed to house members of the armed forces and dependents accompanying them or other civilian personnel and any 

dependents accompanying them. ‘‘(2) For any period for which military family housing is leased 

under paragraph (1) to a teacher described in such paragraph, the 

teacher shall receive a quarters allowance in the amount determined 

under subsection (b). The teacher is entitled to such quarters allowance without regard to whether other Government furnished quarters are available for occupancy by the teacher without charge to the 

teacher.’’.

SEC. 343. OPTIONS FOR FUNDING DEPENDENT SUMMER SCHOOL PROGRAMS. 

Section 1402(d)(2) of the Defense Dependents’ Education Act of 

1978 (20 U.S.C. 921(d)(2)) is amended to read as follows: 

‘‘(2) The Secretary shall provide any summer school program 

under this subsection on the same financial basis as programs offered during the regular school year, except that the Secretary may 

charge reasonable fees for all or portions of such summer school 

programs to the extent that the Secretary determines appropriate.’’.

SEC. 344. IMPACT AID ELIGIBILITY FOR LOCAL EDUCATIONAL AGENCIES AFFECTED BY PRIVATIZATION OF MILITARY HOUSING. 

Section 8003(b)(2) of the Elementary and Secondary Education 

Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at the end 

the following: 

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‘‘(H) ELIGIBILITY FOR HEAVILY IMPACTED LOCAL EDUCATIONAL AGENCIES AFFECTED BY PRIVATIZATION OF MILITARY HOUSING.—

‘‘(i) ELIGIBILITY.—For any fiscal year beginning 

with fiscal year 2003, a heavily impacted local educational agency that received a basic support payment 

under subparagraph (A) for the prior fiscal year, but is 

ineligible for such payment for the current fiscal year 

under subparagraph (B) or (C), as the case may be, by 

reason of the conversion of military housing units to 

private housing described in clause (iii), shall be 

deemed to meet the eligibility requirements under subparagraph (B) or (C), as the case may be, for the period 

during which the housing units are undergoing such 

conversion. 

‘‘(ii) AMOUNT OF PAYMENT.—The amount of a payment to a heavily impacted local educational agency 

for a fiscal year by reason of the application of clause 

(i), and calculated in accordance with subparagraph 

(D) or (E) (as the case may be), shall be based on the 

number of children in average daily attendance in the 

schools of such agency for the fiscal year. 

‘‘(iii) CONVERSION OF MILITARY HOUSING UNITS TO

PRIVATE HOUSING DESCRIBED.—For purposes of clause 

(i), ‘conversion of military housing units to private 

housing’ means the conversion of military housing 

units to private housing units pursuant to subchapter 

IV of chapter 169 of title 10, United States Code, or 

pursuant to any other related provision of law.’’.

SEC. 345. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS. 

(a) ADDITIONAL CONSIDERATION FOR STUDY.—Subsection (b) of 

section 354 of the National Defense Authorization Act for Fiscal 

Year 2002 (Public Law 107–107; 115 Stat. 1064) is amended by inserting after paragraph (2) the following new paragraph: 

‘‘(3) Whether the process for setting teacher compensation is 

efficient and cost effective.’’. 

(b) EXTENSION OF TIME FOR REPORTING.—Subsection (c) of 

such section is amended by striking ‘‘May 1, 2002’’ and inserting 

‘‘December 12, 2002’’.

Subtitle F—Information Technology

SEC. 351. ANNUAL SUBMISSION OF INFORMATION REGARDING INFORMATION TECHNOLOGY CAPITAL ASSETS. 

(a) REQUIREMENT TO SUBMIT INFORMATION.—Not later than 30 

days after the date on which the President submits the budget for 

a fiscal year to Congress pursuant to section 1105 of title 31, United 

States Code, the Secretary of Defense shall submit to Congress information on the following information technology capital assets, including information technology capital assets that are a national security system, of the Department of Defense: 

61

(1) Information technology capital assets not covered by 

paragraph (2) that have an estimated total cost for the fiscal 

year for which the budget is submitted in excess of $10,000,000. 

(2) Information technology capital assets that have an estimated total cost for the fiscal year for which the budget is submitted in excess of $30,000,000 and an estimated total life cycle 

cost (as computed in fiscal year 2003 constant dollars) in excess 

of $120,000,000. 

(b) REQUIRED INFORMATION FOR LOW-THRESHOLD ASSETS.—

With respect to each information technology capital asset described 

in subsection (a)(1), the Secretary of Defense shall include the following information: 

(1) The name of the information technology capital asset. 

(2) The function of the asset.

(3) The total cost of the asset for the fiscal year for which 

the budget is submitted, the current fiscal year, and the preceding fiscal year. 

(c) REQUIRED INFORMATION FOR HIGH-THRESHOLD ASSETS.—

With respect to each information technology capital asset described 

in subsection (a)(2), the Secretary of Defense shall include the following information: 

(1) The name and identifying acronym of the information 

technology capital asset. 

(2) The date of initiation of the asset. 

(3) A summary of performance measurements and metrics. 

(4) The total amount of funds, by appropriation account, 

appropriated and obligated for prior fiscal years, with a specific 

breakout of such information for the two preceding fiscal years. 

(5) The funds, by appropriation account, requested for the 

next fiscal year. 

(6) The name of each prime contractor and the work to be 

performed. 

(7) Program management and management oversight information. 

(8) The original baseline cost and most current baseline information. 

(9) Information regarding compliance with the provisions of 

law enacted or amended by the Government Performance Results Act of 1993 (Public Law 103–62; 107 Stat. 285) and the 

Clinger-Cohen Act of 1996 (divisions D and E of Public Law 

104–106; 110 Stat. 642). 

(d) TOTAL COST DETERMINATIONS.—In estimating the total cost 

for a fiscal year or total life cycle cost of an information technology 

capital asset, the Secretary of Defense shall consider research and 

development costs, procurement costs, and operation and maintenance costs related to the information technology capital asset. 

(e) DEFINITIONS.—In this section:

(1) The term ‘‘information technology’’ has the meaning 

given that term in section 11101 of title 40, United States Code. 

(2) The term ‘‘capital asset’’ has the meaning given that 

term in Office of Management and Budget Circular A–11. 

(3) The term ‘‘national security system’’ has the meaning 

given that term in section 11103 of title 40, United States Code.

62

SEC. 352. POLICY REGARDING ACQUISITION OF INFORMATION ASSURANCE AND INFORMATION ASSURANCE-ENABLED INFORMATION TECHNOLOGY PRODUCTS. 

(a) ESTABLISHMENT OF POLICY.—The Secretary of Defense shall 

establish a policy to limit the acquisition of information assurance 

and information assurance-enabled information technology products 

to those products that have been evaluated and validated in accordance with appropriate criteria, schemes, or programs. 

(b) WAIVER.—As part of the policy, the Secretary of Defense 

shall authorize specified officials of the Department of Defense to 

waive the limitations of the policy upon a determination in writing 

that application of the limitations to the acquisition of a particular 

information assurance or information assurance-enabled information technology product would not be in the national security interest of the United States. 

(c) IMPLEMENTATION.—The Secretary of Defense shall ensure 

that the policy is uniformly implemented throughout the Department of Defense.

SEC. 353. INSTALLATION AND CONNECTION POLICY AND PROCEDURES 

REGARDING DEFENSE SWITCH NETWORK. 

(a) ESTABLISHMENT OF POLICY AND PROCEDURES.—Not later 

than 180 days after the date of the enactment of this Act, the Secretary of Defense shall establish clear and uniform policy and procedures, applicable to the military departments and Defense Agencies, 

regarding the installation and connection of telecom switches to the 

Defense Switch Network. 

(b) ELEMENTS OF POLICY AND PROCEDURES.—The policy and 

procedures shall address at a minimum the following: 

(1) Clear interoperability and compatibility requirements 

for procuring, certifying, installing, and connecting telecom 

switches to the Defense Switch Network. 

(2) Current, complete, and enforceable testing, validation, 

and certification procedures needed to ensure the interoperability and compatibility requirements are satisfied. 

(c) EXCEPTIONS.—(1) The Secretary of Defense may specify certain circumstances in which—

(A) the requirements for testing, validation, and certification of telecom switches may be waived; or 

(B) interim authority for the installation and connection of 

telecom switches to the Defense Switch Network may be granted. 

(2) Only the Assistant Secretary of Defense for Command, Control, Communications, and Intelligence may approve a waiver or 

grant of interim authority under paragraph (1). The authority to 

approve such a waiver or grant of interim authority may not be delegated. 

(3) The Assistant Secretary of Defense for Command, Control, 

Communications, and Intelligence shall consult with the Chairman 

of the Joint Chiefs of Staff before approving a waiver or grant of 

interim authority under paragraph (1). 

(d) INVENTORY OF DEFENSE SWITCH NETWORK.—The Secretary 

of Defense shall prepare and maintain an inventory of all telecom 

switches that, as of the date on which the Secretary issues the policy 

and procedures—

63

(1) are installed or connected to the Defense Switch Network; but 

(2) have not been tested, validated, and certified by the Defense Information Systems Agency (Joint Interoperability Test 

Center). 

(e) INTEROPERABILITY RISKS.—On an ongoing basis, the Secretary of Defense shall— (1) identify and assess the interoperability risks that are associated with the installation or connection of uncertified 

switches to the Defense Switch Network and the maintenance of 

such switches on the Defense Switch Network; and 

(2) develop and implement a plan to eliminate or mitigate 

such risks as identified. 

(f) TELECOM SWITCH DEFINED.—In this section, the term ‘‘telecom switch’’ means hardware or software designed to send and 

receive voice, data, or video signals across a network that provides 

customer voice, data, or video equipment access to the Defense 

Switch Network or public switched telecommunications networks.

Subtitle G—Other Matters

SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION OF 

FUNDS WITHIN OPERATION AND MAINTENANCE BUDGET 

SUBACTIVITIES. 

(a) DESIGNATION OF RECIPIENTS.—Subsection (a) of section 228 

of title 10, United States Code, is amended by striking ‘‘to Congress’’ and inserting ‘‘to the congressional defense committees’’. (b) CONGRESSIONAL DEFENSE COMMITTEES DEFINED.—Subsection (e) of such section is amended— (1) by striking ‘‘(e) O&M BUDGET ACTIVITY DEFINED.—For 

purposes of this section, the’’ and inserting the following: ‘‘(e) DEFINITIONS.—In this section: ‘‘(1) The’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(2) The term ‘congressional defense committees’ means 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.’’.

SEC. 362. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE. 

(a) EXTENSION THROUGH FISCAL YEAR 2004.—Subsection (a) of 

section 343 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–65) is amended by striking ‘‘and 2002’’ and 

inserting ‘‘through 2004’’. (b) REPORTING REQUIREMENTS.—Subsection (g) of such section 

is amended— (1) in paragraph (1), by striking ‘‘2002’’ and inserting ‘‘2004’’; and 

(2) in paragraph (2), by striking the first sentence and inserting the following new sentence: ‘‘Not later than July 1, 2003, 

the Secretary of the Army shall submit to the congressional defense committees a report on the results of the demonstration 

program since its implementation, including the Secretary’s 

64

views regarding the benefits of the program for Army manufacturing arsenals and the Department of the Army and the success of the program in achieving the purposes specified in subsection (b).’’.

SEC. 363. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM. 

(a) EXTENSION.—Section 1112 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–313) is amended—

(1) in subsection (d), by striking ‘‘September 30, 2002’’ and 

inserting ‘‘September 30, 2003’’; and 

(2) in subsection (e)(2), by striking ‘‘December 1, 2002’’ and 

inserting ‘‘December 1, 2003’’. 

(b) REVISION OF REPORTING REQUIREMENTS.—Subsection (e)(2) 

of such section is further amended by striking ‘‘fiscal year 2002’’

both places it appears and inserting ‘‘fiscal years 2002 and 2003’’.

SEC. 364. CONDITION ON AUTHORITY OF DEFENSE SECURITY SERVICE 

TO IMPOSE FEES ON FEE-FOR-SERVICE BASIS. 

The Secretary of Defense may not authorize the Defense Security Service to impose fees on a fee-for-service basis for the investigative services provided by the Defense Security Service unless the Secretary certifies in advance to the Committee on Armed Services of 

the House of Representatives and the Committee on Armed Services 

of the Senate that the Defense Security Service has the financial systems in place to determine accurately the cost of such services.

SEC. 365. LOGISTICS SUPPORT AND SERVICES FOR WEAPON SYSTEMS 

CONTRACTORS. 

(a) AUTHORITY.—The Secretary of Defense may make available 

logistics support and logistics services to a contractor in support of 

the performance by the contractor of a contract for the construction, 

modification, or maintenance of a weapon system that is entered 

into by an official of the Department of Defense. 

(b) SUPPORT CONTRACTS.—Any logistics support and logistics 

services to be provided under this section to a contractor in support 

of the performance of a contract described in subsection (a) shall be 

provided under a separate contract that is entered into by the Director of the Defense Logistics Agency with that contractor. The requirements of section 2208(h) of title 10, United States Code, and 

the regulations prescribed pursuant to such section shall apply to 

the contract between the Director of the Defense Logistics Agency 

and the contractor. 

(c) SCOPE OF SUPPORT AND SERVICES.—The logistics support 

and logistics services that may be provided under this section in 

support of the performance of a contract described in subsection (a) 

are the distribution, disposal, and cataloging of materiel and repair 

parts necessary for the performance of that contract. 

(d) LIMITATIONS.—(1) The number of contracts described in subsection (a) for which the Secretary of Defense makes logistics support and logistics services available under the authority of this section may not exceed five contracts. The total amount of the estimated costs of all such contracts for which logistics support and logistics services are made available under this section may not exceed $100,000,000. 

(2) No contract entered into by the Director of the Defense Logistics Agency under subsection (b) may be for a period in excess of five 

65

years, including periods for which the contract is extended under 

options to extend the contract. 

(e) REGULATIONS.—Before exercising the authority under this 

section, the Secretary of Defense shall prescribe in regulations such 

requirements, conditions, and restrictions as the Secretary determines appropriate to ensure that logistics support and logistics services are provided under this section only when it is in the best interests of the United States to do so. The regulations shall include, at 

a minimum, the following: 

(1) A requirement for the authority under this section to be 

used only for providing logistics support and logistics services 

in support of the performance of a contract that is entered into 

using competitive procedures (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)). 

(2) A requirement for the solicitation of offers for a contract 

described in subsection (a), for which logistics support and logistics services are to be made available under this section, to 

include—

(A) a statement that the logistics support and logistics 

services are to be made available under the authority of 

this section to any contractor awarded the contract, but 

only on a basis that does not require acceptance of the support and services; and 

(B) a description of the range of the logistics support 

and logistics services that are to be made available to the 

contractor. 

(3) A requirement for the rates charged a contractor for logistics support and logistics services provided to a contractor 

under this section to reflect the full cost to the United States of 

the resources used in providing the support and services, including the costs of resources used, but not paid for, by the Department of Defense. 

(4) With respect to a contract described in subsection (a) 

that is being performed for a department or agency outside the 

Department of Defense, a prohibition, in accordance with applicable contracting procedures, on the imposition of any charge 

on that department or agency for any effort of Department of 

Defense personnel or the contractor to correct deficiencies in the 

performance of such contract. 

(5) A prohibition on the imposition of any charge on a contractor for any effort of the contractor to correct a deficiency in 

the performance of logistics support and logistics services provided to the contractor under this section. 

(f) RELATIONSHIP TO TREATY OBLIGATIONS.—The Secretary 

shall ensure that the exercise of authority under this section does 

not conflict with any obligation of the United States under any treaty or other international agreement. 

(g) TERMINATION OF AUTHORITY.—(1) The authority provided in 

this section shall expire on September 30, 2007. 

(2) The expiration of the authority under this section does not 

terminate—

(A) any contract that was entered into by the Director of the 

Defense Logistics Agency under subsection (b) before the date 

specified in paragraph (1) or any obligation to provide logistics 

support and logistics services under that contract; or 

66

(B) any authority to enter into a contract described in subsection (a) for which a solicitation of offers was issued in accordance with the regulations prescribed pursuant to subsection 

(e)(2) before the date specified in paragraph (1) or to provide logistics support and logistics services to the contractor with respect to that contract in accordance with this section.

SEC. 366. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL STATUS OF 

RESOURCES AND TRAINING SYSTEM, AND TRAINING 

RANGE INVENTORY. 

(a) PLAN REQUIRED.—(1) The Secretary of Defense shall develop 

a comprehensive plan for using existing authorities available to the 

Secretary of Defense and the Secretaries of the military departments 

to address training constraints caused by limitations on the use of 

military lands, marine areas, and airspace that are available in the 

United States and overseas for training of the Armed Forces. 

(2) As part of the preparation of the plan, the Secretary of Defense shall conduct the following: 

(A) An assessment of current and future training range requirements of the Armed Forces. 

(B) An evaluation of the adequacy of current Department of 

Defense resources (including virtual and constructive training 

assets as well as military lands, marine areas, and airspace 

available in the United States and overseas) to meet those current and future training range requirements. 

(3) The plan shall include the following: 

(A) Proposals to enhance training range capabilities and 

address any shortfalls in current Department of Defense resources identified pursuant to the assessment and evaluation 

conducted under paragraph (2). 

(B) Goals and milestones for tracking planned actions and 

measuring progress. 

(C) Projected funding requirements for implementing 

planned actions. 

(D) Designation of an office in the Office of the Secretary 

of Defense and in each of the military departments that will 

have lead responsibility for overseeing implementation of the 

plan. 

(4) At the same time as the President submits to Congress the 

budget for fiscal year 2004, the Secretary of Defense shall submit to 

Congress a report describing the progress made in implementing 

this subsection, including—

(A) the plan developed under paragraph (1); 

(B) the results of the assessment and evaluation conducted 

under paragraph (2); and 

(C) any recommendations that the Secretary may have for 

legislative or regulatory changes to address training constraints 

identified pursuant to this section. 

(5) At the same time as the President submits to Congress the 

budget for each of fiscal years 2005 through 2008, the Secretary 

shall submit to Congress a report describing the progress made in 

implementing the plan and any additional actions taken, or to be 

taken, to address training constraints caused by limitations on the 

use of military lands, marine areas, and airspace.

(b) READINESS REPORTING IMPROVEMENT.—Not later than June 

30, 2003, the Secretary of Defense, using existing measures within 

67

the authority of the Secretary, shall submit to Congress a report on 

the plans of the Department of Defense to improve the Global Status 

of Resources and Training System to reflect the readiness impact 

that training constraints caused by limitations on the use of military lands, marine areas, and airspace have on specific units of the 

Armed Forces. 

(c) TRAINING RANGE INVENTORY.—(1) The Secretary of Defense 

shall develop and maintain a training range inventory for each of 

the Armed Forces—

(A) to identify all available operational training ranges; 

(B) to identify all training capacities and capabilities available at each training range; and 

(C) to identify training constraints caused by limitations on 

the use of military lands, marine areas, and airspace at each 

training range. 

(2) The Secretary of Defense shall submit an initial inventory 

to Congress at the same time as the President submits the budget 

for fiscal year 2004 and shall submit an updated inventory to Congress at the same time as the President submits the budget for fiscal 

years 2005 through 2008.

(d) GAO EVALUATION.—The Secretary of Defense shall transmit 

copies of each report required by subsections (a) and (b) to the 

Comptroller General. Within 60 days after receiving a report, the 

Comptroller General shall submit to Congress an evaluation of the 

report. 

(e) ARMED FORCES DEFINED.—In this section, the term ‘‘Armed 

Forces’’ means the Army, Navy, Air Force, and Marine Corps.

SEC. 367. ENGINEERING STUDY AND ENVIRONMENTAL ANALYSIS OF 

ROAD MODIFICATIONS IN VICINITY OF FORT BELVOIR, 

VIRGINIA. 

(a) STUDY AND ANALYSIS.—(1) The Secretary of the Army shall 

conduct a preliminary engineering study and environmental analysis to evaluate the feasibility of establishing a connector road between Richmond Highway (United States Route 1) and Telegraph 

Road in order to provide an alternative to Beulah Road (State 

Route 613) and Woodlawn Road (State Route 618) at Fort Belvoir, 

Virginia, which were closed as a force protection measure. 

(2) It is the sense of Congress that the study and analysis 

should consider as one alternative the extension of Old Mill Road 

between Richmond Highway and Telegraph Road. 

(b) CONSULTATION.—The study required by subsection (a) shall 

be conducted in consultation with the Department of Transportation 

of the Commonwealth of Virginia and Fairfax County, Virginia. 

(c) REPORT.—The Secretary shall submit to Congress a summary report on the study and analysis required by subsection (a). 

The summary report shall be submitted together with the budget 

justification materials in support of the budget of the President for 

fiscal year 2006 that is submitted to Congress under section 1105(a) 

of title 31, United States Code. 

(d) FUNDING.—Of the amount authorized to be appropriated by 

section 301(a)(1) for the Army for operation and maintenance, 

$5,000,000 may be made available for the study and analysis required by subsection (a).

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SEC. 368. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT 

PROGRAM. 

Section 391 of the National Defense Authorization Act for Fiscal 

Year 1998 (Public Law 105–85; 10 U.S.C. 2304 note), as amended 

by section 364 of Public Law 107–107 (115 Stat. 1068), is further 

amended—

(1) in subsection (f), by striking ‘‘September 30, 2003’’ and 

inserting ‘‘September 30, 2004’’; and 

(2) by striking subsection (g).

SEC. 369. EXPANDED ELIGIBILITY FOR LOAN, GIFT, OR EXCHANGE OF 

DOCUMENTS, HISTORICAL ARTIFACTS, AND CONDEMNED 

OR OBSOLETE COMBAT MATERIEL. 

Section 2572(a)(3) of title 10, United States Code, is amended 

by inserting before the period the following: ‘‘or a nonprofit military 

aviation heritage foundation or association incorporated in a State’’.

TITLE IV—MILITARY PERSONNEL 

AUTHORIZATIONS

Subtitle A—Active Forces 

Sec. 401. End strengths for active forces. 

Sec. 402. Revision in permanent end strength minimum levels. 

Sec. 403. Expanded authority for administrative increases in statutory active-duty 

end strengths. 

Sec. 404. General and flag officer management. 

Sec. 405. Extension of certain authorities relating to management of numbers of general and flag officers in certain grades. 

Sec. 406. Increase in authorized strengths for Marine Corps officers on active duty 

in the grade of colonel. 

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 2003 limitation on non-dual status technicians. 

Subtitle C—Authorization of Appropriations 

Sec. 421. Authorization of appropriations for military personnel.

Subtitle A—Active Forces 

SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 

The Armed Forces are authorized strengths for active duty personnel as of September 30, 2003, as follows: 

(1) The Army, 480,000. 

(2) The Navy, 375,700. 

(3) The Marine Corps, 175,000. 

(4) The Air Force, 359,000. 

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

(a) REVISED END STRENGTH FLOORS.—Subsection (b) of section 

691 of title 10, United States Code, is amended—

(1) in paragraph (2), by striking ‘‘376,000’’ and inserting 

‘‘375,700’’; 

(2) in paragraph (3), by striking ‘‘172,600’’ and inserting 

‘‘175,000’’; and 

69

(3) in paragraph (4), by striking ‘‘358,800’’ and inserting 

‘‘359,000’’. 

(b) REPEAL OF SECRETARY OF DEFENSE FLEXIBILITY AUTHORITY.—Subsection (e) of such section is repealed. 

SEC. 403. [H403]. EXPANDED AUTHORITY FOR ADMINISTRATIVE INCREASES IN STATUTORY ACTIVE-DUTY END STRENGTHS. 

(a) SECRETARY OF DEFENSE AUTHORITY.—Subsection (c)(1) of 

section 115 of title 10, United States Code, is amended by striking 

‘‘2 percent’’ and inserting ‘‘3 percent’’. 

(b) SERVICE SECRETARY AUTHORITY.—Such section is further 

amended by inserting after subsection (e) the following new subsection: 

‘‘(f) Upon determination by the Secretary of a military department that such action would enhance manning and readiness in essential units or in critical specialties or ratings, the Secretary may 

increase the end strength authorized pursuant to subsection 

(a)(1)(A) for a fiscal year for the armed force under the jurisdiction 

of that Secretary or, in the case of the Secretary of the Navy, for any 

of the armed forces under the jurisdiction of that Secretary. Any 

such increase for a fiscal year—

‘‘(1) shall be by a number equal to not more than 2 percent 

of such authorized end strength; and 

‘‘(2) shall be counted as part of the increase for that armed 

force for that fiscal year authorized under subsection (c)(1).’’.

SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT. 

(a) EXCLUSION OF SENIOR MILITARY ASSISTANT TO THE SECRETARY OF DEFENSE FROM LIMITATION ON ACTIVE DUTY OFFICERS

IN GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.—Effective 

on the date specified in subsection (d), section 525(b) of title 10, 

United States Code, is amended by adding at the end the following 

new paragraph: 

‘‘(8) An officer while serving in a position designated by the Secretary of Defense as Senior Military Assistant to the Secretary of Defense, if serving in the grade of lieutenant general or vice admiral, 

is in addition to the number that otherwise would be permitted for 

that officer’s armed force for that grade under paragraph (1) or (2). 

Only one officer may be designated as Senior Military Assistant to 

the Secretary of Defense for purposes of this paragraph.’’. 

(b) INCREASE IN NUMBER OF LIEUTENANT GENERALS AUTHORIZED FOR THE MARINE CORPS.—Paragraph (2)(B) of such section is 

amended by striking ‘‘16.2 percent’’ and inserting ‘‘17.5 percent’’.

(c) REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG

OFFICER AUTHORIZATIONS.—(1) The Secretary of Defense shall submit to Congress a report containing any recommendations of the 

Secretary (together with the rationale of the Secretary for the recommendations) concerning the following: 

(A) Revision of the limitations on general and flag officer 

grade authorizations and distribution in grade prescribed by 

sections 525, 526, and 12004 of title 10, United States Code. 

(B) Statutory designation of the positions and grades of any 

additional general and flag officers in the commands specified 

in chapter 1006 of title 10, United States Code, and the reserve 

component offices specified in sections 3038, 5143, 5144, and 

8038 of such title. 

70

(2) The provisions of subsection (b) through (e) of section 1213 

of the National Defense Authorization Act for Fiscal Year 1997 

(Public Law 104–201; 110 Stat. 2694) shall apply to the report 

under paragraph (1) in the same manner as they applied to the report required by subsection (a) of that section. 

(d) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall take effect on the date of the receipt by Congress of the report 

required by subsection (c). 

SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING TO MANAGEMENT OF NUMBERS OF GENERAL AND FLAG OFFICERS 

IN CERTAIN GRADES. 

(a) SENIOR JOINT OFFICER POSITIONS.—Section 604(c) of title 

10, United States Code, is amended by striking ‘‘September 30, 

2003’’ and inserting ‘‘December 31, 2004’’.

(b) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN GENERAL

AND FLAG OFFICER GRADES.—Section 525(b)(5)(C) of such title is 

amended by striking ‘‘September 30, 2003’’ and inserting ‘‘December 

31, 2004’’. 

(c) AUTHORIZED STRENGTH FOR GENERAL AND FLAG OFFICERS

ON ACTIVE DUTY.—Section 526(b)(3) of such title is amended by 

striking ‘‘October 1, 2002’’ and inserting ‘‘December 31, 2004’’.

SEC. 406. INCREASE IN AUTHORIZED STRENGTHS FOR MARINE CORPS 

OFFICERS ON ACTIVE DUTY IN THE GRADE OF COLONEL. 

The table in section 523(a)(1) of title 10, United States Code, is 

amended by striking the figures under the heading ‘‘Colonel’’ in the 

portion of the table relating to the Marine Corps and inserting the 

following:

‘‘571 

632

653

673

694

715

735’’.

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, 2003, as follows: 

(1) The Army National Guard of the United States, 

350,000. 

(2) The Army Reserve, 205,000. 

(3) The Naval Reserve, 87,800. 

(4) The Marine Corps Reserve, 39,558. 

(5) The Air National Guard of the United States, 106,600. 

(6) The Air Force Reserve, 75,600. 

(7) The Coast Guard Reserve, 9,000. 

(b) ADJUSTMENTS.—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 

71

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.M

Whenever such units or such individual members 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 proportionately increased by the total authorized strengths 

of such units and by the total number of such individual members. 

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

Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 2003, 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, 24,562. 

(2) The Army Reserve, 14,070. 

(3) The Naval Reserve, 14,572. 

(4) The Marine Corps Reserve, 2,261. 

(5) The Air National Guard of the United States, 11,727. 

(6) The Air Force Reserve, 1,498. 

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 2003 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 National Guard of the United States, 

24,102. 

(2) For the Army Reserve, 6,599. 

(3) For the Air National Guard of the United States, 

22,495. 

(4) For the Air Force Reserve, 9,911.

SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STATUS TECHNICIANS. 

(a) ARMY.—The number of non-dual status technicians employed by the reserve components of the Army as of September 30, 

2003, may not exceed the following: 

(1) For the Army Reserve, 995. 

(2) For the Army National Guard of the United States, 

1,600, to be counted within the limitation specified in section 

10217(c)(2) of title 10, United States Code. 

(b) AIR FORCE.—The number of non-dual status technicians employed by the reserve components of the Army and the Air Force as 

of September 30, 2003, may not exceed the following: 

(1) For the Air Force Reserve, 90. 

(2) For the Air National Guard of the United States, 350, 

to be counted within the limitation specified in section 

10217(c)(2) of title 10, United States Code. 

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(c) 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. 

(d) TECHNICAL AMENDMENTS.—Section 10217(c)(2) of title 10, 

United States Code, is amended— (1) in the first sentence, by striking ‘‘Effective October 1, 

2002, the’’ and inserting ‘‘The’’; and 

(2) in the second sentence, by striking ‘‘after the preceding 

sentence takes effect’’.

Subtitle C—Authorization of 

Appropriations 

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL. 

There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2003 a total 

of $93,829,525,000. The authorization in the preceding sentence supersedes any other authorization of appropriations (definite or indefinite) for such purpose for fiscal year 2003.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy 

Sec. 501. Extension of good-of-the-service waiver authority for officers appointed to 

a Reserve Chief or Guard Director position. 

Sec. 502. Exclusion of certain officers from limitation on authority to grant a waiver 

of required completion or sequencing for joint professional military education. 

Sec. 503. Extension and codification of authority for recall of retired aviators to active duty. 

Sec. 504. Grades for certain positions. 

Sec. 505. Reinstatement of authority to reduce three-year time-in-grade requirement 

for retirement in grade for officers in grades above major and lieutenant 

commander. 

Sec. 506. Authority to require that an officer take leave pending review of a recommendation for removal by a board of inquiry. 

Subtitle B—Reserve Component Management 

Sec. 511. Reviews of National Guard strength accounting and management and 

other issues. 

Sec. 512. Courts-martial for the National Guard when not in Federal service. 

Sec. 513. Fiscal year 2003 funding for military personnel costs of reserve component 

Special Operations Forces personnel engaged in humanitarian assistance activities relating to clearing of landmines. 

Sec. 514. Use of Reserves to perform duties relating to defense against terrorism. 

Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR personnel for Air 

Force base security functions. 

Subtitle C—Reserve Component Officer Personnel Policy 

Sec. 521. Eligibility for consideration for promotion to grade of major general for 

certain reserve component brigadier generals who do not otherwise qualify for consideration for promotion under the one-year rule. 

Sec. 522. Authority for limited extension of medical deferment of mandatory retirement or separation of reserve component officers. 

Subtitle D—Enlistment, Education, and Training Programs 

Sec. 531. Enlistment incentives for pursuit of skills to facilitate national service. 

Sec. 532. Authority for phased increase to 4,400 in authorized strengths for the service academies. 

73

Sec. 533. Enhancement of reserve component delayed training program. 

Sec. 534. Review of Armed Forces programs for preparation for, participation in, 

and conduct of athletic competitions. 

Sec. 535. Repeal of bar to eligibility of Army College First program participants for 

benefits under student loan repayment program. 

Subtitle E—Decorations, Awards, and Commendations 

Sec. 541. Waiver of time limitations for award of Army Distinguished-Service Cross 

to certain persons. 

Sec. 542. Option to convert award of Armed Forces Expeditionary Medal awarded 

for Operation Frequent Wind to Vietnam Service Medal. 

Sec. 543. Korea Defense Service Medal. 

Sec. 544. Commendation of military chaplains. 

Subtitle F—Administrative Matters 

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing Personnel Office. 

Sec. 552. Three-year freeze on reductions of personnel of agencies responsible for review and correction of military records. 

Sec. 553. Authority for acceptance of voluntary services of individuals as proctors for 

administration of Armed Services Vocational Aptitude Battery test. 

Sec. 554. Extension of temporary early retirement authority. 

Subtitle G—Matters Relating to Minorities and Women in the Armed Forces 

Sec. 561. Surveys of racial and ethnic issues and of gender issues in the Armed 

Forces. 

Sec. 562. Annual report on status of female members of the Armed Forces. 

Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi Arabia. 

Subtitle H—Benefits 

Sec. 571. Department of Defense support for persons participating in military funeral honors details. 

Sec. 572. Emergency leave of absence program. 

Sec. 573. Enhanced flexibility in medical loan repayment program. 

Sec. 574. Destinations authorized for Government paid transportation of enlisted 

personnel for rest and recuperation absence upon extending duty at designated locations overseas. 

Sec. 575. Vehicle storage in lieu of transportation when member is ordered to a nonforeign duty station outside continental United States. 

Subtitle I—Reports 

Sec. 581. Quadrennial quality of life review. 

Sec. 582. Report on desirability and feasibility of consolidating separate courses of 

basic instruction for judge advocates. 

Sec. 583. Reports on efforts to resolve status of Captain Michael Scott Speicher, 

United States Navy. 

Sec. 584. Report on volunteer services of members of the reserve components in emergency response to the terrorist attacks of September 11, 2001.

Subtitle A—Officer Personnel Policy

SEC. 501. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER AUTHORITY 

FOR OFFICERS APPOINTED TO A RESERVE CHIEF OR 

GUARD DIRECTOR POSITION. 

(a) WAIVER OF REQUIREMENT FOR SIGNIFICANT JOINT DUTY EX- PERIENCE.—Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 8038(b)(4), 

and 10506(a)(3)(D) of title 10, United States Code, are each amended by striking ‘‘October 1, 2003’’ and inserting ‘‘December 31, 2004’’. 

(b) REPORT ON FUTURE IMPLEMENTATION OF REQUIREMENT.—

Not later than May 1, 2003, 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—

(1) setting forth the steps that have been taken by the Secretary, the Secretaries of the military departments, and the 

74

Chairman of the Joint Chiefs of Staff to ensure that Reserve 

and National Guard officers receive significant joint duty experience; and 

(2) specifying the date by which no further extension of the 

waiver authority under the sections amended by subsection (a) 

will be required.

SEC. 502. EXCLUSION OF CERTAIN OFFICERS FROM LIMITATION ON 

AUTHORITY TO GRANT A WAIVER OF REQUIRED COMPLETION OR SEQUENCING FOR JOINT PROFESSIONAL MILITARY EDUCATION. 

(a) EXCLUSION FROM LIMITATION.—There shall be excluded 

from counting for purposes of the 10-percent limitation set forth in 

the last sentence of section 661(c)(3)(D) of title 10, United States 

Code (limiting the authority to grant waivers related to sequencing 

or completion of program of joint professional military education), 

any officer selected for the joint specialty who—

(1) on December 28, 2001, met the requirements of section 

661(c) of such title for nomination for the joint specialty, but 

who had not been nominated for that specialty before that date 

by the Secretary of the military department concerned; and 

(2) before the date of the enactment of this Act was automatically nominated for the joint specialty as a result of section 

661(b)(2) of such title. 

(b) TERMINATION.—The provisions of subsection (a) shall terminate on October 1, 2006. 

(c) CROSS-REFERENCE CORRECTION.—Section 661(c)(3)(E) of 

title 10, United States Code, is amended by striking ‘‘subparagraph’’

and inserting ‘‘paragraph’’.

SEC. 503. EXTENSION AND CODIFICATION OF AUTHORITY FOR RECALL 

OF RETIRED AVIATORS TO ACTIVE DUTY. 

(a) IN GENERAL.—(1) Chapter 39 of title 10, United States Code, 

is amended by inserting after section 688 the following new section:

‘‘§ 688a. Retired aviators: temporary authority to order to active duty 

‘‘(a) AUTHORITY.—The Secretary of a military department may 

order to active duty a retired officer having expertise as an aviator 

to fill staff positions normally filled by aviators on active duty. Any 

such order may be made only with the consent of the officer ordered 

to active duty and in accordance with an agreement between the 

Secretary and the officer. 

‘‘(b) DURATION.—The period of active duty of an officer under 

an order to active duty under subsection (a) shall be specified in the 

agreement entered into under that subsection. 

‘‘(c) LIMITATION.—No more than a total of 500 officers may be 

on active duty at any time under subsection (a). 

‘‘(d) RELATIONSHIP TO OTHER AUTHORITY.—The authority to 

order a retired officer to active duty under this section is in addition 

to the authority under section 688 of this title or any other provision 

of law authorizing the Secretary concerned to order a retired member to active duty. 

‘‘(e) INAPPLICABILITY OF CERTAIN PROVISIONS.—Officers ordered 

to active duty under subsection (a) shall not be counted for purposes 

of section 688 or 690 of this title. 

75

‘‘(f) EXPIRATION OF AUTHORITY.—An officer may not be ordered 

to active duty under this section after September 30, 2008.’’.

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 688 the following new item:

‘‘688a. Retired aviators: temporary authority to order to active duty.’’.

(b) GRADE IN WHICH ORDERED TO ACTIVE DUTY AND UPON RELEASE FROM ACTIVE DUTY.—(1) Section 689 of such title is amended 

by inserting ‘‘or 688a’’ after ‘‘section 688’’ each place it appears. 

(2) The provisions of section 689(d) of title 10, United States 

Code, shall apply with respect to an officer ordered to active duty 

under section 501 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 589) before the date 

of the enactment of this Act in the same manner as such provisions 

apply to an officer ordered to active duty under section 688 of such 

title. 

(c) TRANSITION PROVISION.—Any officer ordered to active duty 

under section 501 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 589) who continues on 

active duty under such order to active duty after the date of the enactment of this Act shall be counted for purposes of the limitation 

under subsection (c) of section 688a of title 10, United States Code, 

as added by subsection (a).

SEC. 504. GRADES FOR CERTAIN POSITIONS. 

(a) HEADS OF NURSE CORPS.—(1) Section 3069(b) of title 10, 

United States Code, is amended by striking ‘‘brigadier general’’ in 

the second sentence and inserting ‘‘major general’’. 

(2) The first sentence of section 5150(c) of such title is amended—

(A) by inserting ‘‘rear admiral, in the case of an officer in 

the Nurse Corps, or’’ after ‘‘for promotion to the grade of’’; and 

(B) by inserting ‘‘, in the case of an officer in the Medical 

Service Corps’’ after ‘‘rear admiral (lower half)’’. 

(3) Section 8069(b) of such title is amended by striking 

‘‘brigadier general’’ in the second sentence and inserting ‘‘major general’’. 

(b) CHIEF OF VETERINARY CORPS OF THE ARMY.—(1) Chapter 

307 of such title is amended by adding at the end the following new 

section: 

‘‘§ 3084. Chief of Veterinary Corps; grade 

‘‘The Chief of the Veterinary Corps of the Army serves in the 

grade of brigadier general. An officer appointed to that position who 

holds a lower grade shall be appointed in the grade of brigadier 

general.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘3084. Chief of Veterinary Corps: grade.’’.

(c) CHIEF OF LEGISLATIVE LIAISON OF THE ARMY.—(1)(A) Chapter 303 of such title is amended by adding at the end the following 

new section: 

76

‘‘§ 3023. Chief of Legislative Liaison 

‘‘(a) There is a Chief of Legislative Liaison in the Department 

of the Army. An officer assigned to that position shall be an officer 

in the grade of major general. 

‘‘(b) The Chief of Legislative Liaison shall perform legislative 

affairs functions as specified for the Office of the Secretary of the 

Army by section 3014(c)(1)(F) of this title.’’.

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘3023. Chief of Legislative Liaison.’’.

(2) Section 3014(b) of such title is amended—

(A) by redesignating paragraphs (6) and (7) as paragraphs 

(7) and (8), respectively; and 

(B) by inserting after paragraph (5) the following new paragraph (6): 

‘‘(6) The Chief of Legislative Liaison.’’. 

(d) LEGISLATIVE AFFAIRS POSITIONS OF THE NAVY AND MARINE

CORPS.—(1)(A) Chapter 503 of such title is amended by adding at 

the end the following new section: 

‘‘§ 5027. Chief of Legislative Affairs 

‘‘(a) There is a Chief of Legislative Affairs in the Department of 

the Navy. An officer assigned to that position shall be an officer in 

the grade of rear admiral. 

‘‘(b) The Chief of Legislative Affairs shall perform legislative affairs functions as specified for the Office of the Secretary of the 

Navy by section 5014(c)(1)(F) of this title.’’. 

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘5027. Chief of Legislative Affairs.’’.

(2) Section 5014(b) of such title is amended—

(A) by redesignating paragraphs (6) and (7) as paragraphs 

(7) and (8), respectively; and 

(B) by inserting after paragraph (5) the following new paragraph (6): 

‘‘(6) The Chief of Legislative Affairs.’’.

(3)(A) Chapter 506 of such title is amended by adding at the 

end the following new section: 

‘‘§ 5047. Legislative Assistant to the Commandant 

‘‘There is in the Marine Corps a Legislative Assistant to the 

Commandant. An officer assigned to that position shall be in a 

grade above colonel.’’. 

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘5047. Legislative Assistant to the Commandant.’’.

(e) CHIEF OF LEGISLATIVE LIAISON OF THE AIR FORCE.—(1)(A) 

Chapter 803 of such title is amended by adding at the end the following new section: 

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‘‘§ 8023. Chief of Legislative Liaison 

‘‘(a) There is a Chief of Legislative Liaison in the Department 

of the Air Force. An officer assigned to that position shall be an officer in the grade of major general. 

‘‘(b) The Chief of Legislative Liaison shall perform legislative 

affairs functions as specified for the Office of the Secretary of the 

Air Force by section 8014(c)(1)(F) of this title.’’. 

(B) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘8023. Chief of Legislative Liaison.’’.

(2) Section 8014(b) of such title is amended—

(A) by redesignating paragraphs (5) and (6) as paragraphs 

(6) and (7), respectively; and 

(B) by inserting after paragraph (4) the following new paragraph (5):

‘‘(5) The Chief of Legislative Liaison.’’. 

(f) TECHNICAL AMENDMENT TO PROVIDE CORRECT STATUTORY

TITLE OF GRADE.—Section 5022(a)(2) of such title is amended by 

striking ‘‘(upper half)’’.

SEC. 505. REINSTATEMENT OF AUTHORITY TO REDUCE THREE-YEAR 

TIME-IN-GRADE REQUIREMENT FOR RETIREMENT IN 

GRADE FOR OFFICERS IN GRADES ABOVE MAJOR AND 

LIEUTENANT COMMANDER. 

(a) OFFICERS ON ACTIVE DUTY.—Subsection (a)(2) of section 

1370 of title 10, United States Code, is amended—

(1) in subparagraph (A), by striking ‘‘during the period beginning on October 1, 1990, and ending on December 31, 2001’’

and inserting ‘‘during the period beginning on October 1, 2002, 

and ending on December 31, 2003’’; 

(2) by redesignating subparagraphs (B) and (C) as subparagraphs (D) and (E), respectively; and 

(3) by inserting after subparagraph (A) the following new 

subparagraphs (B) and (C): 

‘‘(B) In the case of an officer to be retired in a general or flag 

officer grade, authority provided by the Secretary of Defense to the 

Secretary of a military department under subparagraph (A) may be 

exercised with respect to that officer only if approved by the Secretary of Defense or another civilian official in the Office of the Secretary of Defense appointed by the President, by and with the advice 

and consent of the Senate. 

‘‘(C) Authority provided by the Secretary of Defense to the Secretary of a military department under subparagraph (A) may be 

delegated within that military department only to a civilian official 

of that military department appointed by the President, by and with 

the advice and consent of the Senate.’’. 

(b) RESERVE OFFICERS.—Subsection (d) of such section is 

amended—

(1) by designating the second sentence of paragraph (5) as 

paragraph (6) and in that paragraph by striking ‘‘this paragraph’’ and inserting ‘‘paragraph (5)’’; and 

(2) in paragraph (5)—

(A) by inserting ‘‘(A)’’ after ‘‘(5)’’; 

(B) by striking ‘‘in the case of retirements effective during the period beginning on October 17, 1998, and ending 

78

on December 31, 2001’’ and inserting ‘‘in the case of transfers to the Retired Reserve and discharges of retirementqualified officers effective during the period beginning on 

October 1, 2002, and ending on December 31, 2003’’; and 

(C) by adding at the end (before paragraph (6) as designated by paragraph (1) of this subsection) the following 

new subparagraphs: 

‘‘(B) In the case of a person who, upon transfer to the Retired 

Reserve or discharge, is to be credited with satisfactory service in a 

general or flag officer grade under paragraph (1), authority provided by the Secretary of Defense to the Secretary of a military department under subparagraph (A) may be exercised with respect to 

that person only if approved by the Secretary of Defense or another 

civilian official in the Office of the Secretary of Defense appointed 

by the President, by and with the advice and consent of the Senate. 

‘‘(C) Authority provided by the Secretary of Defense to the Secretary of a military department under subparagraph (A) may be 

delegated within that military department only to a civilian official 

of that military department appointed by the President, by and with 

the advice and consent of the Senate.’’. 

(c) ADVANCE NOTICE TO CONGRESS.—Such section is further 

amended by adding at the end the following new subsection: 

‘‘(e) ADVANCE NOTICE TO CONGRESSIONAL COMMITTEES.—(1) In 

the case of an officer to be retired in a grade that is a general or 

flag officer grade who is eligible to retire in that grade only by reason of an exercise of authority under paragraph (2) of subsection (a) 

to reduce the three-year service-in-grade requirement otherwise applicable under that paragraph, the Secretary of Defense, before the 

officer is retired in that grade, shall notify the Committee on Armed 

Services of the Senate and the Committee on Armed Services of the 

House of Representatives of the exercise of authority under that 

paragraph with respect to that officer. 

‘‘(2) In the case of a person to be credited under subsection (d) 

with satisfactory service in a grade that is a general or flag officer 

grade who is eligible to be credited with such service in that grade 

only by reason of an exercise of authority under paragraph (5) of 

that subsection to reduce the three-year service-in-grade requirement 

otherwise applicable under paragraph (3)(A) of that subsection, the 

Secretary of Defense, before the person is credited with such satisfactory service in that grade, shall notify the Committee on Armed 

Services of the Senate and the Committee on Armed Services of the 

House of Representatives of the exercise of authority under paragraph (5) of that subsection with respect to that officer. 

‘‘(3) In the case of an officer to whom subsection (c) applies, the 

requirement for notification under paragraph (1) is satisfied if the 

notification is included in the certification submitted with respect to 

that officer under paragraph (1) of such subsection.’’.

SEC. 506. AUTHORITY TO REQUIRE THAT AN OFFICER TAKE LEAVE 

PENDING REVIEW OF A RECOMMENDATION FOR REMOVAL 

BY A BOARD OF INQUIRY. 

(a) REQUIREMENT.—Section 1182(c) of title 10, United States 

Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

(2) by adding at the end the following new paragraph: 

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‘‘(2) Under regulations prescribed by the Secretary concerned, 

an officer as to whom a board of inquiry makes a recommendation 

under paragraph (1) that the officer not be retained on active duty 

may be required to take leave pending the completion of the officer’s 

case under this chapter. The officer may be required to begin such 

leave at any time following the officer’s receipt of the report of the 

board of inquiry, including the board’s recommendation for removal 

from active duty, and the expiration of any period allowed for submission by the officer of a rebuttal to that report. The leave may be 

continued until the date on which action by the Secretary concerned 

on the officer’s case is completed or may be terminated at any earlier time.’’. (b) PAYMENT FOR MANDATORY EXCESS LEAVE UPON DIS- APPROVAL OF CERTAIN INVOLUNTARY SEPARATION RECOMMENDA- TIONS.—Chapter 40 of such title is amended by inserting after section 707 the following new section: 

‘‘§ 707a. Payment upon disapproval of certain board of inquiry recommendations for excess leave required to 

be taken 

‘‘(a) An officer— ‘‘(1) who is required to take leave under section 1182(c)(2) 

of this title, any period of which is charged as excess leave 

under section 706(a) of this title, and ‘‘(2) whose recommendation for removal from active duty in 

a report of a board of inquiry is not approved by the Secretary 

concerned under section 1184 of this title, 

shall be paid, as provided in subsection (b), for the period of leave 

charged as excess leave. ‘‘(b)(1) An officer entitled to be paid under this section shall be 

deemed, for purposes of this section, to have accrued pay and allowances for each day of leave required to be taken under section 

1182(c)(2) of this title that is charged as excess leave (except any day 

of accrued leave for which the officer has been paid under section 

706(b)(1) of this title and which has been charged as excess leave). ‘‘(2) The officer shall be paid the amount of pay and allowances 

that is deemed to have accrued to the officer under paragraph (1), 

reduced by the total amount of his income from wages, salaries, 

tips, other personal service income, unemployment compensation, 

and public assistance benefits from any Government agency during 

the period the officer is deemed to have accrued pay and allowances. 

Except as provided in paragraph (3), such payment shall be made 

within 60 days after the date on which the Secretary concerned decides not to remove the officer from active duty. ‘‘(3) If an officer is entitled to be paid under this section, but 

fails to provide sufficient information in a timely manner regarding 

the officer’s income when such information is requested under regulations prescribed under subsection (c), the period of time prescribed 

in paragraph (2) shall be extended until 30 days after the date on 

which the member provides the information requested. ‘‘(c) This section shall be administered under uniform regulations prescribed by the Secretaries concerned. The regulations may 

provide for the method of determining an officer’s income during 

any period the officer is deemed to have accrued pay and allowances, including a requirement that the officer provide income tax 

80

returns and other documentation to verify the amount of the officer’s 

income.’’. 

(c) CONFORMING AMENDMENTS.—(1) Section 706 of such title is 

amended—

(A) by inserting ‘‘or 1182(c)(2)’’ after ‘‘section 876a’’ in subsections (a), (b)(1), (b)(2), and (c); and 

(B) by striking ‘‘section 707’’ in subsection (b)(2) and inserting ‘‘sections 707 and 707a’’. 

(2) The heading for such section is amended to read as follows: 

‘‘§ 706. Administration of leave required to be taken’’. 

(d) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 40 of such title is amended—

(1) by striking the item relating to section 706 and inserting 

the following:

‘‘706. Administration of leave required to be taken.’’;

(2) by inserting after the item relating to section 707 the following new item:

‘‘707a. Payment upon disapproval of certain board of inquiry recommendations for 

excess leave required to be taken.’’.

Subtitle B—Reserve Component 

Management

SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH ACCOUNTING 

AND MANAGEMENT AND OTHER ISSUES. 

(a) COMPTROLLER GENERAL ASSESSMENTS.—Not later than one 

year after the date of the enactment of this Act, the Comptroller 

General shall submit to Congress a report on management of the 

National Guard. The report shall include the following: 

(1) The Comptroller General’s assessment of the effectiveness of the implementation of Department of Defense plans for 

improving management and accounting for personnel strengths 

in the National Guard, including an assessment of the process 

that the Department of Defense, the National Guard Bureau, 

the Army National Guard and State-level National Guard leadership, and leadership in the other reserve components have for 

identifying and addressing in a timely manner specific units in 

which nonparticipation rates are significantly in excess of the 

established norms. 

(2) The Comptroller General’s assessment of the effectiveness of the process for Federal recognition of senior National 

Guard officers and recommendations for improvement to that 

process. 

(3) The Comptroller General’s assessment of the process for, 

and the nature and extent of, the administrative or judicial corrective action taken by the Secretary of Defense, the Secretary 

of the Army, and the Secretary of the Air Force as a result of 

Inspector General investigations or other investigations in 

which allegations against senior National Guard officers are 

substantiated in whole or in part. 

(4) The Comptroller General’s determination of the effectiveness of the Federal protections provided for members or employVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00104 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
81

ees of the National Guard who report allegations of waste, 

fraud, abuse, or mismanagement and the nature and extent to 

which corrective action is taken against those in the National 

Guard who retaliate against such members or employees. 

(b) SECRETARY OF DEFENSE REPORT ON DIFFERENT ARMY AND

AIR FORCE PROCEDURES.—Not later than six months after the date 

of the enactment of this Act, the Secretary of Defense shall submit 

to Congress a report on the differing Army and Air Force policies 

for taking adverse administrative actions against National Guard 

officers in a State status. The report shall include the Secretary’s determination as to whether changes should be made in those policies.

SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN 

FEDERAL SERVICE. 

(a) MANNER OF PRESCRIBING PUNISHMENTS.—Section 326 of 

title 32, United States Code, is amended by adding at the end the 

following new sentence: ‘‘Punishments shall be as provided by the 

laws of the respective States and Territories, Puerto Rico, and the 

District of Columbia.’’.

(b) CONVENING AUTHORITY.—Section 327 of such title is amended to read as follows: 

‘‘§ 327. Courts-martial of National Guard not in Federal service: convening authority 

‘‘(a) In the National Guard not in Federal service, general, special, and summary courts-martial may be convened as provided by 

the laws of the respective States and Territories, Puerto Rico, and 

the District of Columbia. 

‘‘(b) In the National Guard not in Federal service—

‘‘(1) general courts-martial may be convened by the President; 

‘‘(2) special courts-martial may be convened—

‘‘(A) by the commanding officer of a garrison, fort, post, 

camp, air base, auxiliary air base, or other place where 

members of the National Guard are on duty; or 

‘‘(B) by the commanding officer of a division, brigade, 

regiment, wing, group, detached battalion, separate squadron, or other detached command; and 

‘‘(3) summary courts-martial may be convened—

‘‘(A) by the commanding officer of a garrison, fort, post, 

camp, air base, auxiliary air base, or other place where 

members of the National Guard are on duty; or 

‘‘(B) by the commanding officer of a division, brigade, 

regiment, wing, group, detached battalion, detached squadron, detached company, or other detachment. 

‘‘(c) The convening authorities provided under subsection (b) are 

in addition to the convening authorities provided under subsection 

(a).’’.

(c) REPEAL OF SUPERSEDED AND OBSOLETE PROVISIONS.—(1) 

Sections 328, 329, 330, 331, 332, and 333 of title 32, United States 

Code, are repealed. 

(2) The provisions of law repealed by paragraph (1) shall continue to apply with respect to courts-martial convened in the National Guard not in Federal service before the date of the enactment 

of this Act. 

82

(d) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 3 of such title is amended by striking the items relating to sections 327, 328, 329, 330, 331, 332, and 333 and inserting the following:

‘‘327. Courts-martial of National Guard not in Federal service: convening authority.’’.

(e) MODELS FOR STATE CODE OF MILITARY JUSTICE AND STATE

MANUAL FOR COURTS-MARTIAL.—(1) The Secretary of Defense shall 

prepare a model State code of military justice and a model State 

manual for courts-martial to recommend to the States for use with 

respect to the National Guard not in Federal service. Both such 

models shall be consistent with the recommendations contained in 

the report that was issued in 1998 by the Department of Defense 

Panel to Study Military Justice in the National Guard not in Federal Service. 

(2) The Secretary shall ensure that adequate support for the 

preparation of the model State code of military justice and the 

model State manual for courts-martial (including the detailing of 

attorneys and other personnel) is provided by the General Counsel 

of the Department of Defense, the Secretary of the Army, the Secretary of the Air Force, and the Chief of the National Guard Bureau. 

(3) If the funds available to the Chief of the National Guard 

Bureau are insufficient for paying the cost of the National Guard 

Bureau support required under paragraph (2) (including increased 

costs of pay of members of the National Guard for additional active 

duty necessitated by such requirement and increased cost of detailed 

attorneys and other staff, allowances, and travel expenses related to 

such support), the Secretary shall, upon request made by the Chief 

of the Bureau, provide such additional funding as the Secretary determines necessary to satisfy the requirement for such support. 

(4) Not later than one year after the date of the enactment of 

this Act, the Secretary shall submit a report on the actions taken to 

carry out this subsection to the Committee on Armed Services of the 

Senate and the Committee on Armed Services of the House of Representatives. The report shall include proposals in final form of both 

the model State code of military justice and the model State manual 

for courts-martial required by paragraph (1), together with a discussion of the efforts being made to present those proposals to the 

States for their consideration for enactment or adoption, respectively. 

(5) In this subsection, the term ‘‘State’’ includes the District of 

Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 

and Guam.

SEC. 513. FISCAL YEAR 2003 FUNDING FOR MILITARY PERSONNEL 

COSTS OF RESERVE COMPONENT SPECIAL OPERATIONS 

FORCES PERSONNEL ENGAGED IN HUMANITARIAN ASSISTANCE ACTIVITIES RELATING TO CLEARING OF LANDMINES. 

(a) USE OF RESERVE COMPONENT MILITARY PERSONNEL

FUNDS.—Fiscal year 2003 reserve component military personnel 

funds may be used for military personnel expenses of reserve component Special Operations forces that are incurred during fiscal year 

2003 in connection with landmine clearance assistance, notwithstanding section 401(c)(1) of title 10, United States Code. 

83

(b) REIMBURSEMENT REQUIREMENT.—Fiscal year 2003 reserve 

component military personnel funds shall be reimbursed from fiscal 

year 2003 landmine clearance assistance funds for all military personnel expenses of reserve component Special Operations forces that 

are incurred during fiscal year 2003 in connection with landmine 

clearance assistance. Such reimbursement shall be made in each instance to the reserve component military personnel account that incurred the expense. 

(c) LIMITATION.—The amount of reserve component military personnel expenses incurred during fiscal year 2003 for landmine 

clearance assistance may not exceed 10 percent of the amount of fiscal year 2003 landmine clearance assistance funds. 

(d) DEFINITIONS.—For purposes of this section: 

(1) LANDMINE CLEARANCE ASSISTANCE.—The term ‘‘landmine clearance assistance’’ means humanitarian and civic 

assistance provided under section 401 of title 10, United States 

Code, that is described in subsection (e)(5) of that section. 

(2) FISCAL YEAR 2003 LANDMINE CLEARANCE ASSISTANCE

FUNDS.—The term ‘‘fiscal year 2003 landmine clearance assistance funds’’ means the total amount appropriated for fiscal year 

2003 in operations and maintenance accounts of the Department of Defense that is provided for landmine clearance assistance. 

(3) FISCAL YEAR 2003 RESERVE COMPONENT MILITARY PER- SONNEL FUNDS.—The term ‘‘fiscal year 2003 reserve component 

military personnel funds’’ means amounts appropriated for fiscal year 2003 for military personnel expenses of a reserve component of the Department of Defense. 

(4) MILITARY PERSONNEL EXPENSES.—The term ‘‘military 

personnel expenses’’ means expenses properly chargeable to a 

military personnel account of the Department of Defense.

(e) LEGISLATIVE PROPOSAL.—The Secretary of Defense shall 

submit to Congress, as part of the budget request of the Department 

of Defense for fiscal year 2004, a legislative proposal that would ensure that military personnel expenses for both active and reserve 

component military personnel providing landmine clearance assistance are specified in detail and are budgeted to be authorized and 

appropriated from the appropriate military personnel accounts.

SEC. 514. USE OF RESERVES TO PERFORM DUTIES RELATING TO DEFENSE AGAINST TERRORISM. 

(a) USE OF RESERVES TO PERFORM DUTIES RELATING TO DEFENSE AGAINST TERRORISM.—Section 12304(b) of title 10, United 

States Code, is amended by striking ‘‘involving’’ and all that follows 

and inserting ‘‘involving—

‘‘(1) a use or threatened use of a weapon of mass destruction; or 

‘‘(2) a terrorist attack or threatened terrorist attack in the 

United States that results, or could result, in catastrophic loss 

of life or property.’’. 

(b) CONFORMING AMENDMENT RELATING TO FULL-TIME SUPPORT OF GUARD AND RESERVE PERSONNEL.—Section 12310(c)(1) of 

such title is amended by striking ‘‘involving’’ and all that follows 

and inserting ‘‘involving—

‘‘(A) the use of a weapon of mass destruction (as defined in 

section 12304(i)(2) of this title); or 

84

‘‘(B) a terrorist attack or threatened terrorist attack in the 

United States that results, or could result, in catastrophic loss 

of life or property.’’.

SEC. 515. REPEAL OF PROHIBITION ON USE OF AIR FORCE RESERVE 

AGR PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS. 

(a) REPEAL.—Section 12551 of title 10, United States Code, is 

repealed. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 1215 of such title is amended by striking the item 

relating to section 12551.

Subtitle C—Reserve Component Officer 

Personnel Policy

SEC. 521. ELIGIBILITY FOR CONSIDERATION FOR PROMOTION TO 

GRADE OF MAJOR GENERAL FOR CERTAIN RESERVE COMPONENT BRIGADIER GENERALS WHO DO NOT OTHERWISE 

QUALIFY FOR CONSIDERATION FOR PROMOTION UNDER 

THE ONE-YEAR RULE. 

Section 14301(g) of title 10, United States Code, is amended to 

read as follows: ‘‘(g) BRIGADIER GENERALS.—(1) An officer who is a reserve component brigadier general of the Army or the Air Force who is not 

eligible for consideration for promotion under subsection (a) because 

the officer is not on the reserve active status list (as required by 

paragraph (1) of that subsection for such eligibility) is nevertheless 

eligible for consideration for promotion to the grade of major general by a promotion board convened under section 14101(a) of this 

title if— ‘‘(A) as of the date of the convening of the promotion board, 

the officer has been in an inactive status for less than one year; 

and ‘‘(B) immediately before the date of the officer’s most recent 

transfer to an inactive status, the officer had continuously 

served on the reserve active status list or the active-duty list (or 

a combination of the reserve active status list and the activeduty list) for at least one year. 

‘‘(2) An officer who is a reserve component brigadier general of 

the Army or the Air Force who is on the reserve active status list 

but who is not eligible for consideration for promotion under subsection (a) because the officer’s service does not meet the one-yearof-continuous-service requirement under paragraph (2) of that subsection is nevertheless eligible for consideration for promotion to the 

grade of major general by a promotion board convened under section 14101(a) of this title if— ‘‘(A) the officer was transferred from an inactive status to 

the reserve active status list during the one-year period preceding the date of the convening of the promotion board; ‘‘(B) immediately before the date of the officer’s most recent 

transfer to an active status, the officer had been in an inactive 

status for less than one year; and ‘‘(C) immediately before the date of the officer’s most recent 

transfer to an inactive status, the officer had continuously 

served for at least one year on the reserve active status list or 

85

the active-duty list (or a combination of the reserve active status 

list and the active-duty list).’’.

SEC. 522. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL 

DEFERMENT OF MANDATORY RETIREMENT OR SEPARATION OF RESERVE COMPONENT OFFICERS. 

(a) AUTHORITY.—Chapter 1407 of title 10, United States Code, 

is amended by adding at the end the following new section: 

‘‘§ 14519. Deferment of retirement or separation for medical 

reasons 

‘‘(a) AUTHORITY.—If, in the case of an officer required to be retired or separated under this chapter or chapter 1409 of this title, 

the Secretary concerned determines that the evaluation of the physical condition of the officer and determination of the officer’s entitlement to retirement or separation for physical disability require hospitalization or medical observation and that such hospitalization or 

medical observation cannot be completed with confidence in a manner consistent with the officer’s well being before the date on which 

the officer would otherwise be required to retire or be separated, the 

Secretary may defer the retirement or separation of the officer. 

‘‘(b) PERIOD OF DEFERMENT.—A deferral of retirement or separation under subsection (a) may not extend for more than 30 days 

after the completion of the evaluation requiring hospitalization or 

medical observation.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘14519. Deferment of retirement or separation for medical reasons.’’.

Subtitle D—Enlistment, Education, and 

Training Programs

SEC. 531. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO FACILITATE NATIONAL SERVICE. 

(a) AUTHORITY.—(1) Chapter 31 of title 10, United States Code, 

is amended by inserting after section 509 the following new section: 

‘‘§ 510. Enlistment incentives for pursuit of skills to facilitate 

national service 

‘‘(a) ENLISTMENT INCENTIVE PROGRAM.—The Secretary of Defense shall carry out an enlistment incentive program in accordance 

with this section under which a person who is a National Call to 

Service participant shall be entitled to one of the incentives specified 

in subsection (e). The program shall be carried out during the period ending on December 31, 2007, and may be carried out after 

that date. 

‘‘(b) NATIONAL CALL TO SERVICE PARTICIPANT.—In this section, 

the term ‘National Call to Service participant’ means a person who 

has not previously served in the armed forces who enters into an 

original enlistment pursuant to a written agreement with the Secretary of a military department (in such form and manner as may 

be prescribed by that Secretary) under which the person agrees to 

perform a period of national service as specified in subsection (c). 

86

‘‘(c) NATIONAL SERVICE.—The total period of national service to 

which a National Call to Service participant is obligated under the 

agreement under this section shall be specified in the agreement. 

Under the agreement, the participant shall—

‘‘(1) upon completion of initial entry training (as prescribed 

by the Secretary of Defense), serve on active duty in a military 

occupational specialty designated by the Secretary of Defense 

under subsection (d) for a period of 15 months; 

‘‘(2) upon completion of the period of active duty specified 

in paragraph (1) and without a break in service, serve either (A) 

an additional period of active duty as determined by the Secretary of Defense, or (B) a period of 24 months in an active status in the Selected Reserve; and 

‘‘(3) upon completion of the period of service specified in 

paragraph (2), and without a break in service, serve the remaining period of obligated service specified in the agreement—

‘‘(A) on active duty in the armed forces; 

‘‘(B) in the Selected Reserve; 

‘‘(C) in the Individual Ready Reserve; 

‘‘(D) in the Peace Corps, Americorps, or another national service program jointly designated by the Secretary 

of Defense and the head of such program for purposes of 

this section; or 

‘‘(E) in any combination of service referred to in subparagraphs (A) through (D) that is approved by the Secretary of the military department concerned pursuant to 

regulations prescribed by the Secretary of Defense and specified in the agreement. 

‘‘(d) DESIGNATED MILITARY OCCUPATIONAL SPECIALTIES.—The 

Secretary of Defense shall designate military occupational specialties for purposes of subsection (c)(1). Such military occupational specialties shall be military occupational specialties that, as determined by the Secretary, will facilitate pursuit of national service by 

National Call to Service participants. 

‘‘(e) INCENTIVES.—The incentives specified in this subsection are 

as follows: 

‘‘(1) Payment of a bonus in the amount of $5,000. 

‘‘(2) Payment in an amount not to exceed $18,000 of outstanding principal and interest on qualifying student loans of 

the National Call to Service participant. 

‘‘(3) Entitlement to an allowance for educational assistance 

at the monthly rate equal to the monthly rate payable for basic 

educational assistance allowances under section 3015(a)(1) of 

title 38 for a total of 12 months. 

‘‘(4) Entitlement to an allowance for educational assistance 

at the monthly rate equal to 50 percent of the monthly rate payable for basic educational assistance allowances under section 

3015(b)(1) of title 38 for a total of 36 months. 

‘‘(f) ELECTION OF INCENTIVE.—A National Call to Service participant shall elect in the agreement under subsection (b) which incentive under subsection (e) to receive. An election under this subsection is irrevocable. 

‘‘(g) PAYMENT OF BONUS AMOUNTS.—(1) Payment to a National 

Call to Service participant of the bonus elected by the National Call 

87

to Service participant under subsection (e)(1) shall be made in such 

time and manner as the Secretary of Defense shall prescribe. 

‘‘(2)(A) Payment of outstanding principal and interest on the 

qualifying student loans of a National Call to Service participant, 

as elected under subsection (e)(2), shall be made in such time and 

manner as the Secretary of Defense shall prescribe. 

‘‘(B) Payment under this paragraph of the outstanding principal and interest on the qualifying student loans of a National Call 

to Service participant shall be made to the holder of such student 

loans, as identified by the National Call to Service participant to 

the Secretary of the military department concerned for purposes of 

such payment. 

‘‘(3) Payment of a bonus or incentive in accordance with this 

subsection shall be made by the Secretary of the military department concerned. 

‘‘(h) COORDINATION WITH MONTGOMERY GI BILL BENEFITS.—

(1)(A) Subject to subparagraph (B), a National Call to Service participant who elects an incentive under paragraph (3) or (4) of subsection (e) is not entitled to additional educational assistance under 

chapter 1606 of this title or to basic educational assistance under 

subchapter II of chapter 30 of title 38.

‘‘(B) If a National Call to Service participant meets all eligibility requirements specified in chapter 1606 of this title or chapter 

30 of title 38 for entitlement to allowances for educational assistance under either such chapter, the participant may become eligible 

for allowances for educational assistance benefits under either such 

chapter up to the maximum allowance provided less the total 

amount of allowance paid under paragraph (3) or (4) of subsection 

(e). 

‘‘(2)(A) The Secretary of Defense shall, to the maximum extent 

practicable, administer the receipt by National Call to Service participants of incentives under paragraph (3) or (4) of subsection (e) 

as if such National Call to Service participants were, in receiving 

such incentives, receiving educational assistance for members of the 

Selected Reserve under chapter 1606 of this title. 

‘‘(B) The Secretary of Defense shall, in consultation with the 

Secretary of Veterans Affairs, prescribe regulations for purposes of 

subparagraph (A). Such regulations shall, to the maximum extent 

practicable, take into account the administrative provisions of chapters 30 and 36 of title 38 that are specified in section 16136 of this 

title. 

‘‘(3)(A) Except as provided in paragraph (1), nothing in this section shall prohibit a National Call to Service participant who satisfies through service under subsection (c) the eligibility requirements 

for educational assistance under chapter 1606 of this title or basic 

educational assistance under chapter 30 of title 38 from an entitlement to such educational assistance under chapter 1606 of this title 

or basic educational assistance under chapter 30 of title 38, as the 

case may be. 

‘‘(B)(i) A participant who made an election not to receive educational assistance under either such chapter at the applicable time 

specified under law or who was denied the opportunity to make an 

election may revoke that election or make an initial election, as the 

case may be, at such time and in such manner as the Secretary conVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00111 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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cerned may specify. A revocation or initial election under the preceding sentence is irrevocable. ‘‘(ii) The participant making a revocation or initial election 

under clause (i) shall be eligible for educational assistance under either such chapter at such time as the participant satisfies through 

service the applicable eligibility requirements under either such 

chapter. ‘‘(i) REPAYMENT.—(1) If a National Call to Service participant 

who has entered into an agreement under subsection (b) and received or benefited from an incentive under subsection (e)(1) or (e)(2) 

fails to complete the total period of service specified in such agreement, the National Call to Service participant shall refund to the 

United States the amount that bears the same ratio to the amount 

of the incentive as the uncompleted part of such service bears to the 

total period of such service. ‘‘(2) Subject to paragraph (3), an obligation to reimburse the 

United States imposed under paragraph (1) is for all purposes a 

debt owed to the United States. ‘‘(3) The Secretary concerned may waive, in whole or in part, a 

reimbursement required under paragraph (1) if the Secretary concerned determines that recovery would be against equity and good 

conscience or would be contrary to the best interests of the United 

States. 

‘‘(4) A discharge in bankruptcy under title 11 that is entered 

into less than five years after the termination of an agreement entered into under subsection (b) does not discharge the person signing 

the agreement from a debt arising under the agreement or under 

paragraph (1). 

‘‘(j) FUNDING.—Amounts for payment of incentives under subsection (e), including payment of allowances for educational assistance under that subsection, shall be derived from amounts available 

to the Secretary of the military department concerned for payment 

of pay, allowances, and other expenses of the members of the armed 

force concerned. ‘‘(k) REGULATIONS.—The Secretary of Defense and the Secretaries of the military departments shall prescribe regulations for 

purposes of the program under this section. ‘‘(l) DEFINITIONS.—In this section: ‘‘(1) The term ‘Americorps’ means the Americorps program 

carried out under subtitle C of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.). ‘‘(2) The term ‘qualifying student loan’ means a loan, the 

proceeds of which were used to pay any part or all of the cost 

of attendance (as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll) at an institution of higher 

education (as defined in section 101 of the Higher Education 

Act of 1965 (20 U.S.C. 1001). ‘‘(3) The term ‘Secretary of a military department’ includes, 

with respect to matters concerning the Coast Guard when it is 

not operating as a service in the Navy, the Secretary of the Department in which the Coast Guard is operating.’’. 

(2) The table of sections at the beginning of that chapter is 

amended by inserting after the item relating to section 509 the following new item:

‘‘510. Enlistment incentives for pursuit of skills to facilitate national service.’’.

89

(b) COMMENCEMENT OF PROGRAM.—The Secretary of Defense 

shall prescribe the date on which the program provided for section 

510 of title 10, United States Code, as added by subsection (a), shall 

commence. Such date shall be not later than October 1, 2003. 

(c) CONFORMING REPEAL.—Section 3264 of title 10, United 

States Code, is repealed. The table of sections at the beginning of 

chapter 333 of such title is amended by striking the item relating 

to section 3264. 

(d) IMPLEMENTATION REPORT.—Not later than March 31, 2003, 

the Secretary of Defense shall submit to the Committees on Armed 

Services of the Senate and the House of Representatives a report on 

the Secretary’s plans for implementation of section 510 of title 10, 

United States Code, as added by subsection (a). 

(e) EFFECTIVENESS REPORTS.—Not later than March 31, 2005, 

and March 31, 2007, the Secretary of Defense shall submit to the 

committees specified in subsection (d) reports on the effectiveness of 

the program under section 510 of title 10, United States Code, as 

added by subsection (a), in attracting new recruits to national service.

SEC. 532. AUTHORITY FOR PHASED INCREASE TO 4,400 IN AUTHORIZED STRENGTHS FOR THE SERVICE ACADEMIES. 

(a) MILITARY ACADEMY.—Section 4342 of title 10, United States 

Code, is amended—

(1) in subsection (a), by inserting before the period at the 

end of the first sentence the following: ‘‘or such higher number 

as may be prescribed by the Secretary of the Army under subsection (j)’’; and 

(2) by adding at the end the following new subsection: 

‘‘(j)(1) Beginning with the 2003–2004 academic year, the Secretary of the Army may prescribe annual increases in the cadet 

strength limit in effect under subsection (a). For any academic year, 

any such increase shall be by no more than 100 cadets or such lesser number as applies under paragraph (3) for that year. Such annual increases may be prescribed until the cadet strength limit is 

4,400. However, no increase may be prescribed for any academic 

year after the 2007–2008 academic year. 

‘‘(2) Any increase in the cadet strength limit under paragraph 

(1) with respect to an academic year shall be prescribed not later 

than the date on which the budget of the President is submitted to 

Congress under section 1105 of title 31 for the fiscal year beginning 

in the same year as the year in which that academic year begins. 

Whenever the Secretary prescribes such an increase, the Secretary 

shall submit to Congress a notice in writing of the increase. The notice shall state the amount of the increase in the cadet strength limit 

and the new cadet strength limit, as so increased, and the amount 

of the increase in Senior Army Reserve Officers’ Training Corps enrollment under each of sections 2104 and 2107 of this title.

‘‘(3) The amount of an increase under paragraph (1) in the 

cadet strength limit for an academic year may not exceed the increase (if any) for the preceding academic year in the total number 

of cadets enrolled in the Army Senior Reserve Officers’ Training 

Corps program under chapter 103 of this title who have entered into 

an agreement under section 2104 or 2107 of this title. 

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‘‘(4) In this subsection, the term ‘cadet strength limit’ means the 

authorized maximum strength of the Corps of Cadets of the Academy.’’. 

(b) NAVAL ACADEMY.—Section 6954 of title 10, United States 

Code, is amended— (1) in subsection (a), by inserting before the period at the 

end of the first sentence the following: ‘‘or such higher number 

as may be prescribed by the Secretary of the Navy under subsection (h)’’; and 

(2) by adding at the end the following new subsection: ‘‘(h)(1) Beginning with the 2003–2004 academic year, the Secretary of the Navy may prescribe annual increases in the midshipmen strength limit in effect under subsection (a). For any academic year, any such increase shall be by no more than 100 midshipmen or such lesser number as applies under paragraph (3) for 

that year. Such annual increases may be prescribed until the 

midshipmen strength limit is 4,400. However, no increase may be 

prescribed for any academic year after the 2007–2008 academic 

year. ‘‘(2) Any increase in the midshipmen strength limit under paragraph (1) with respect to an academic year shall be prescribed not 

later than the date on which the budget of the President is submitted to Congress under section 1105 of title 31 for the fiscal year 

beginning in the same year as the year in which that academic year 

begins. Whenever the Secretary prescribes such an increase, the Secretary shall submit to Congress a notice in writing of the increase. 

The notice shall state the amount of the increase in the midshipmen 

strength limit and the new midshipmen strength limit, as so increased, and the amount of the increase in Senior Navy Reserve Officers’ Training Corps enrollment under each of sections 2104 and 

2107 of this title. ‘‘(3) The amount of an increase under paragraph (1) in the midshipmen strength limit for an academic year may not exceed the increase (if any) for the preceding academic year in the total number 

of midshipmen enrolled in the Navy Senior Reserve Officers’ Training Corps program under chapter 103 of this title who have entered 

into an agreement under section 2104 or 2107 of this title. 

‘‘(4) In this subsection, the term ‘midshipmen strength limit’

means the authorized maximum strength of the Brigade of Midshipmen.’’. 

(c) AIR FORCE ACADEMY.—Section 9342 of title 10, United 

States Code, is amended—

(1) in subsection (a), by inserting before the period at the 

end of the first sentence the following: ‘‘or such higher number 

as may be prescribed by the Secretary of the Air Force under 

subsection (j)’’; and 

(2) by adding at the end the following new subsection: 

‘‘(j)(1) Beginning with the 2003–2004 academic year, the Secretary of the Air Force may prescribe annual increases in the cadet 

strength limit in effect under subsection (a). For any academic year, 

any such increase shall be by no more than 100 cadets or such lesser number as applies under paragraph (3) for that year. Such annual increases may be prescribed until the cadet strength limit is 

4,400. However, no increase may be prescribed for any academic 

year after the 2007–2008 academic year. 

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‘‘(2) Any increase in the cadet strength limit under paragraph 

(1) with respect to an academic year shall be prescribed not later 

than the date on which the budget of the President is submitted to 

Congress under sections 1105 of title 31 for the fiscal year beginning 

in the same year as the year in which that academic year begins. 

Whenever the Secretary prescribes such an increase, the Secretary 

shall submit to Congress a notice in writing of the increase. The notice shall state the amount of the increase in the cadet strength limit 

and the new cadet strength limit, as so increased, and the amount 

of the increase in Senior Air Force Reserve Officers’ Training Corps 

enrollment under each of sections 2104 and 2107 of this title. ‘‘(3) The amount of an increase under paragraph (1) in the 

cadet strength limit for an academic year may not exceed the increase (if any) for the preceding academic year in the total number 

of cadets enrolled in the Air Force Senior Reserve Officers’ Training 

Corps program under chapter 103 of this title who have entered into 

an agreement under section 2104 or 2107 of this title. ‘‘(4) In this subsection, the term ‘cadet strength limit’ means the 

authorized maximum strength of Air Force Cadets of the Academy.’’. (d) TARGET FOR INCREASES IN NUMBER OF ROTC SCHOLARSHIP

PARTICIPANTS.—Section 2107 of such title is amended by adding at 

the end the following new subsection: 

‘‘(i) The Secretary of each military department shall seek to 

achieve an increase in the number of agreements entered into under 

this section so as to achieve an increase, by the 2006–2007 academic 

year, of not less than 400 in the number of cadets or midshipmen, 

as the case may be, enrolled under this section, compared to such 

number enrolled for the 2002–2003 academic year. In the case of the 

Secretary of the Navy, the Secretary shall seek to ensure that not 

less than one-third of such increase in agreements under this section 

are with students enrolled (or seeking to enroll) in programs of 

study leading to a baccalaureate degree in nuclear engineering or 

another appropriate technical, scientific, or engineering field of 

study.’’. (e) REPEAL OF LIMIT ON NUMBER OF ROTC SCHOLARSHIPS.— Section 2107 of such title is further amended by striking the first 

sentence of subsection (h)(1). 

(f) REPEAL OF OBSOLETE LANGUAGE.—Section 4342(i) of such 

title is amended by striking ‘‘(beginning with the 2001–2002 academic year)’’.

SEC. 533. ENHANCEMENT OF RESERVE COMPONENT DELAYED TRAINING PROGRAM. 

(a) INCREASE IN TIME FOLLOWING ENLISTMENT FOR COMMENCEMENT OF INITIAL PERIOD OF ACTIVE DUTY FOR TRAINING.—

Section 12103(d) of title 10, United States Code, is amended by 

striking ‘‘270 days’’ in the last sentence and inserting ‘‘one year’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to enlistments under section 12103(d) of 

title 10, United States Code, after the end of the 90-day period beginning on the date of the enactment of this Act. 

(c) TRANSITION.—In the case of a person who enlisted under section 12103(d) of title 10, United States Code, before the date of the 

enactment of this Act and who as of such date has not commenced 

the required initial period of active duty for training under that section, the amendment made by subsection (a) may be applied to that 

92

person, but only with the agreement of that person and the Secretary concerned.

SEC. 534. REVIEW OF ARMED FORCES PROGRAMS FOR PREPARATION 

FOR, PARTICIPATION IN, AND CONDUCT OF ATHLETIC 

COMPETITIONS. 

(a) REQUIREMENT FOR REVIEW.—The Secretary of Defense shall 

conduct a comprehensive review of the programs of the active and 

reserve components of the Armed Forces for preparation for, participation in, and conduct of athletic competitions. 

(b) CONSIDERATION OF FUNDING.—The matters reviewed under 

subsection (a) shall include the funding sources that are currently 

available for the programs referred to in such subsection and any 

relevant limitations on the use of such funding sources. 

(c) REPORT.—Not later than March 3, 2003, the Secretary shall 

submit to the Committees on Armed Services of the Senate and the 

House of Representatives a report on the Secretary’s findings and 

conclusions resulting from the review. The report shall include the 

following matters: 

(1) The Secretary’s views on the adequacy of the existing 

funding sources for the programs referred to in subsection (a). 

(2) Any recommendations that the Secretary may have regarding limitations on the use of such funding sources or any 

inadequacies in the funding for such programs. 

(3) An assessment of the issues related to, and recommendations of the Secretary for, achieving consistent funding 

and policy treatment with regard to participation by active and 

reserve component personnel in athletic competitions. 

(4) Any recommended legislation that the Secretary considers appropriate regarding such programs.

SEC. 535. REPEAL OF BAR TO ELIGIBILITY OF ARMY COLLEGE FIRST 

PROGRAM PARTICIPANTS FOR BENEFITS UNDER STUDENT LOAN REPAYMENT PROGRAM. 

Subsection (e) of section 573 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106–65; 10 U.S.C. 513 

note) is repealed.

Subtitle E—Decorations and Awards

SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF ARMY DISTINGUISHED-SERVICE CROSS TO CERTAIN PERSONS. 

(a) WAIVER.—Any limitation established by law or policy for the 

time within which a recommendation for the award of a military 

decoration or award must be submitted shall not apply to awards 

of decorations described in subsection (b), the award of each such 

decoration having been determined by the Secretary of the Army to 

be warranted in accordance with section 1130 of title 10, United 

States Code. 

(b) DISTINGUISHED-SERVICE CROSS OF THE ARMY.—Subsection 

(a) applies to the award of the Distinguished-Service Cross of the 

Army as follows: 

(1) To Henry Johnson of Albany, New York, for extraordinary heroism in France during the period of May 13 to 15, 

1918, while serving as a member of the Army. 

(2) To Hilliard Carter of Jackson, Mississippi, for extraordinary heroism in actions near Troung Loung, Republic of VietVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00116 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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nam, on September 28, 1966, while serving as a member of the 

Army.

(3) To Albert C. Welch of Florrisant, Colorado, for extraordinary heroism in actions in Ong Thanh, Binh Long Province, 

Republic of Vietnam, on October 17, 1967, while serving as a 

member of the Army.

SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES EXPEDITIONARY MEDAL AWARDED FOR OPERATION FREQUENT 

WIND TO VIETNAM SERVICE MEDAL. 

(a) IN GENERAL.—The Secretary of the military department concerned shall, upon the application of an individual who is an eligible Vietnam evacuation veteran, award that individual the Vietnam 

Service Medal, notwithstanding any otherwise applicable requirements for the award of that medal. Any such award shall be made 

in lieu of the Armed Forces Expeditionary Medal awarded the individual for participation in Operation Frequent Wind. 

(b) ELIGIBLE VIETNAM EVACUATION VETERAN.—For purposes of 

this section, the term ‘‘eligible Vietnam evacuation veteran’’ means 

a member or former member of the Armed Forces who was awarded 

the Armed Forces Expeditionary Medal for participation in military 

operations designated as Operation Frequent Wind arising from the 

evacuation of Vietnam on April 29 and 30, 1975. 

SEC. 543. KOREA DEFENSE SERVICE MEDAL. 

(a) FINDINGS.—Congress makes the following findings: 

(1) More than 40,000 members of the United States Armed 

Forces have served in the Republic of Korea or the waters adjacent thereto each year since the signing of the cease-fire agreement in July 1953 ending the Korean War. 

(2) An estimated 1,200 members of the United States 

Armed Forces have died as a direct result of their service in 

Korea since the cease-fire agreement in July 1953. 

(b) ARMY.—(1) Chapter 357 of title 10, United States Code, is 

amended by adding at the end the following new section:

‘‘§ 3755. Korea Defense Service Medal

‘‘(a) The Secretary of the Army shall issue a campaign medal, 

to be known as the Korea Defense Service Medal, to each person who 

while a member of the Army served in the Republic of Korea or the 

waters adjacent thereto during the KDSM eligibility period and met 

the service requirements for the award of that medal prescribed 

under subsection (c). ‘‘(b) In this section, the term ‘KDSM eligibility period’ means 

the period beginning on July 28, 1954, and ending on such date 

after the date of the enactment of this section as may be determined 

by the Secretary of Defense to be appropriate for terminating eligibility for the Korea Defense Service Medal. ‘‘(c) The Secretary of the Army shall prescribe service requirements for eligibility for the Korea Defense Service Medal. Those requirements shall not be more stringent than the service requirements for award of the Armed Forces Expeditionary Medal for instances in which the award of that medal is authorized.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘3755. Korea Defense Service Medal.’’.

94

(c) NAVY AND MARINE CORPS.—(1) Chapter 567 of title 10, 

United States Code, is amended by adding at the end the following 

new section: 

‘‘§ 6257. Korea Defense Service Medal 

‘‘(a) The Secretary of the Navy shall issue a campaign medal, 

to be known as the Korea Defense Service Medal, to each person who 

while a member of the Navy or Marine Corps served in the Republic 

of Korea or the waters adjacent thereto during the KDSM eligibility 

period and met the service requirements for the award of that medal 

prescribed under subsection (c). ‘‘(b) In this section, the term ‘KDSM eligibility period’ means 

the period beginning on July 28, 1954, and ending on such date 

after the date of the enactment of this section as may be determined 

by the Secretary of Defense to be appropriate for terminating eligibility for the Korea Defense Service Medal. ‘‘(c) The Secretary of the Navy shall prescribe service requirements for eligibility for the Korea Defense Service Medal. Those requirements shall not be more stringent than the service requirements for award of the Armed Forces Expeditionary Medal for instances in which the award of that medal is authorized.’’. (2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘6257. Korea Defense Service Medal.’’.

(d) AIR FORCE.—(1) Chapter 857 of title 10, United States Code, 

is amended by adding at the end the following new section: 

‘‘§ 8755. Korea Defense Service Medal 

‘‘(a) The Secretary of the Air Force shall issue a campaign 

medal, to be known as the Korea Defense Service Medal, to each 

person who while a member of the Air Force served in the Republic 

of Korea or the waters adjacent thereto during the KDSM eligibility 

period and met the service requirements for the award of that medal 

prescribed under subsection (c). 

‘‘(b) In this section, the term ‘KDSM eligibility period’ means 

the period beginning on July 28, 1954, and ending on such date 

after the date of the enactment of this section as may be determined 

by the Secretary of Defense to be appropriate for terminating eligibility for the Korea Defense Service Medal. 

‘‘(c) The Secretary of the Air Force shall prescribe service requirements for eligibility for the Korea Defense Service Medal. 

Those requirements shall not be more stringent than the service requirements for award of the Armed Forces Expeditionary Medal for 

instances in which the award of that medal is authorized.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘8755. Korea Defense Service Medal.’’.

(e) AWARD FOR SERVICE BEFORE DATE OF ENACTMENT.—The 

Secretary of the military department concerned shall take appropriate steps to provide in a timely manner for the issuance of the 

Korea Defense Service Medal, upon application therefor, to persons 

whose eligibility for that medal is by reason of service in the Republic of Korea or the waters adjacent thereto before the date of the enactment of this Act.

95

SEC. 544. COMMENDATION OF MILITARY CHAPLAINS. 

(a) FINDINGS.—Congress finds the following: 

(1) Military chaplains have served with those who fought 

for the cause of freedom since the founding of the Nation. 

(2) Military chaplains and religious support personnel of 

the Armed Forces have served with distinction as uniformed 

members of the Armed Forces in support of the Nation’s defense 

missions during every conflict in the history of the United 

States. 

(3) 400 United States military chaplains have died in combat, some as a result of direct fire while ministering to fallen 

Americans, while others made the ultimate sacrifice as a prisoner of war. 

(4) Military chaplains currently serve in humanitarian operations, rotational deployments, and in the war on terrorism. 

(5) Religious organizations make up the very fabric of religious diversity and represent unparalleled levels of freedom of 

conscience, speech, and worship that set the United States apart 

from any other nation on Earth. 

(6) Religious organizations have richly blessed the uniformed services by sending clergy to comfort and encourage all 

persons of faith in the Armed Forces. 

(7) During the sinking of the USS Dorchester in February 

1943 during World War II, four chaplains (Reverend Fox, Reverend Poling, Father Washington, and Rabbi Goode) gave their 

lives so that others might live. 

(8) All military chaplains aid and assist members of the 

Armed Forces and their family members with the challenging 

issues of today’s world. 

(9) The current war against terrorism has brought to the 

shores of the United States new threats and concerns that strike 

at the beliefs and emotions of Americans. 

(10) Military chaplains must, as never before, deal with the 

spiritual well-being of the members of the Armed Forces and 

their families. 

(b) COMMENDATION.—Congress, on behalf of the Nation, expresses its appreciation for the outstanding contribution that all 

military chaplains make to the members of the Armed Forces and 

their families. 

(c) PRESIDENTIAL PROCLAMATION.—The President is authorized 

and requested to issue a proclamation calling on the people of the 

United States to recognize the distinguished service of the Nation’s 

military chaplains.

Subtitle F—Administrative Matters

SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/

MISSING PERSONNEL OFFICE. 

(a) REQUIREMENT FOR STAFFING AND FUNDING AT LEVELS REQUIRED FOR PERFORMANCE OF FULL RANGE OF MISSIONS.—Subsection (a) of section 1501 of title 10, United States Code, is amended by adding at the end the following new paragraph: 

‘‘(5)(A) The Secretary of Defense shall ensure that the office is 

provided sufficient military and civilian personnel, and sufficient 

funding, to enable the office to fully perform the complete range of 

96

missions of the office. The Secretary shall ensure that Department 

of Defense programming, planning, and budgeting procedures are 

structured so as to ensure compliance with the preceding sentence 

for each fiscal year. ‘‘(B) For any fiscal year, the number of military and civilian 

personnel assigned or detailed to the office may not be less than the 

number requested in the President’s budget for fiscal year 2003, unless a level below such number is expressly required by law. ‘‘(C) For any fiscal year, the level of funding allocated to the office within the Department of Defense may not be below the level requested for such purposes in the President’s budget for fiscal year 

2003, unless such a level of funding is expressly required by law.’’. (b) NAME OF OFFICE.—Such subsection is further amended by 

inserting after the first sentence of paragraph (1) the following new 

sentence: ‘‘Such office shall be known as the Defense Prisoner of 

War/Missing Personnel Office.’’.

SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PERSONNEL OF 

AGENCIES RESPONSIBLE FOR REVIEW AND CORRECTION 

OF MILITARY RECORDS. 

(a) IN GENERAL.—Chapter 79 of title 10, United States Code, is 

amended by adding at the end the following new section:

‘‘§ 1559. Personnel limitation 

‘‘(a) LIMITATION.—During fiscal years 2003, 2004, and 2005, the 

Secretary of a military department may not carry out any reduction 

in the number of military and civilian personnel assigned to duty 

with the service review agency for that military department below 

the baseline number for that agency until— ‘‘(1) the Secretary submits to Congress a report that— ‘‘(A) describes the reduction proposed to be made; 

‘‘(B) provides the Secretary’s rationale for that reduction; and ‘‘(C) specifies the number of such personnel that would 

be assigned to duty with that agency after the reduction; 

and 

‘‘(2) a period of 90 days has elapsed after the date on which 

the report is submitted. 

‘‘(b) BASELINE NUMBER.—The baseline number for a service review agency under this section is— ‘‘(1) for purposes of the first report with respect to a service 

review agency under this section, the number of military and civilian personnel assigned to duty with that agency as of January 1, 2002; and ‘‘(2) for purposes of any subsequent report with respect to 

a service review agency under this section, the number of such 

personnel specified in the most recent report with respect to that 

agency under this section. 

‘‘(c) SERVICE REVIEW AGENCY DEFINED.—In this section, the 

term ‘service review agency’ means—

‘‘(1) with respect to the Department of the Army, the Army 

Review Boards Agency; 

‘‘(2) with respect to the Department of the Navy, the Board 

for Correction of Naval Records; and 

‘‘(3) with respect to the Department of the Air Force, the Air 

Force Review Boards Agency.’’.

97

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘1559. Personnel limitation.’’.

SEC. 553. AUTHORITY FOR ACCEPTANCE OF VOLUNTARY SERVICES OF 

INDIVIDUALS AS PROCTORS FOR ADMINISTRATION OF 

ARMED SERVICES VOCATIONAL APTITUDE BATTERY TEST. 

Section 1588(a) of title 10, United States Code, is amended by 

adding at the end the following new paragraph: 

‘‘(6) Voluntary services as a proctor for administration to 

secondary school students of the test known as the ‘Armed Services Vocational Aptitude Battery’.’’.

SEC. 554. EXTENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY. 

Effective January 1, 2002, section 4403(i) of the National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 note) 

is amended by striking ‘‘December 31, 2001’’ and inserting 

‘‘September 1, 2002’’.

Subtitle G—Matters Relating to Minorities 

and Women in the Armed Forces

SEC. 561. SURVEYS OF RACIAL AND ETHNIC ISSUES AND OF GENDER 

ISSUES IN THE ARMED FORCES. 

(a) DIVISION OF ANNUAL SURVEY INTO FOUR QUADRENNIAL

SURVEYS.—(1) Section 481 of title 10, United States Code, is amended to read as follows: 

‘‘§ 481. Racial and ethnic issues; gender issues: surveys 

‘‘(a) IN GENERAL.—(1) The Secretary of Defense shall carry out 

four quadrennial surveys (each in a separate year) in accordance 

with this section to identify and assess racial and ethnic issues and 

discrimination, and to identify and assess gender issues and discrimination, among members of the armed forces. Each such survey 

shall be conducted so as to identify and assess the extent (if any) 

of activity among such members that may be seen as so-called ‘hate 

group’ activity. 

‘‘(2) The four surveys shall be as follows: 

‘‘(A) To identify and assess racial and ethnic issues and 

discrimination among members of the armed forces serving on 

active duty. 

‘‘(B) To identify and assess racial and ethnic issues and 

discrimination among members of the armed forces in the reserve components. 

‘‘(C) To identify and assess gender issues and discrimination among members of the armed forces serving on active duty. 

‘‘(D) To identify and assess gender issues and discrimination members of the armed forces in the reserve components. 

‘‘(3) The surveys under this section relating to racial and ethnic 

issues and discrimination shall be known as the ‘Armed Forces 

Workplace and Equal Opportunity Surveys’. The surveys under this 

section relating to gender issues and discrimination shall be known 

as the ‘Armed Forces Workplace and Gender Relations Surveys’. 

98

‘‘(4) Each survey under this section shall be conducted separately from any other survey conducted by the Department of Defense. 

‘‘(b) ARMED FORCES WORKPLACE AND EQUAL OPPORTUNITY SURVEYS.—The Armed Forces Workplace and Equal Opportunity Surveys shall be conducted so as to solicit information on racial and 

ethnic issues, including issues relating to harassment and discrimination, and the climate in the armed forces for forming professional 

relationships among members of the armed forces of various racial 

and ethnic groups. Both such surveys shall be conducted so as to 

solicit information on the following: 

‘‘(1) Indicators of positive and negative trends for professional and personal relationships among members of all racial 

and ethnic groups. 

‘‘(2) The effectiveness of Department of Defense policies designed to improve relationships among all racial and ethnic 

groups. 

‘‘(3) The effectiveness of current processes for complaints on 

and investigations into racial and ethnic discrimination. 

‘‘(c) ARMED FORCES WORKPLACE AND GENDER RELATIONS SURVEYS.—The Armed Forces Workplace and Gender Relations Surveys 

shall be conducted so as to solicit information on gender issues, including issues relating to gender-based harassment and discrimination, and the climate in the armed forces for forming professional 

relationships between male and female members of the armed 

forces. Both such surveys shall be conducted so as to solicit information on the following: 

‘‘(1) Indicators of positive and negative trends for professional and personal relationships between male and female 

members of the armed forces. 

‘‘(2) The effectiveness of Department of Defense policies designed to improve professional relationships between male and 

female members of the armed forces. 

‘‘(3) The effectiveness of current processes for complaints on 

and investigations into gender-based discrimination. 

‘‘(d) SURVEYS TO BE CONDUCTED IN DIFFERENT YEARS.—Each 

of the four quadrennial surveys conducted under this section shall 

be conducted in a different year from any other survey conducted 

under this section, so that one such survey is conducted during each 

year. 

‘‘(e) REPORTS TO CONGRESS.—Upon the completion of a survey 

under this section, the Secretary shall submit to Congress a report 

containing the results of the survey. 

‘‘(f) INAPPLICABILITY TO COAST GUARD.—This section does not 

apply to the Coast Guard.’’. 

(2) The item relating to such section in the table of sections at 

the beginning of chapter 23 of such title is amended to read as follows:

‘‘481. Racial and ethnic issues; gender issues: surveys.’’.

(b) EFFECTIVE DATE.—The first survey under section 481 of title 

10, United States Code, as amended by subsection (a)(1), shall be 

carried out during 2003.

99

SEC. 562. ANNUAL REPORT ON STATUS OF FEMALE MEMBERS OF THE 

ARMED FORCES. 

(a) REQUIREMENT FOR REPORT.—The Secretary of Defense shall 

submit to Congress, for each of fiscal years 2002 through 2006, a 

report on the status of female members of the Armed Forces. Information in the annual report shall be shown for the Department of 

Defense as a whole and separately for each of the Army, Navy, Air 

Force, and Marine Corps. 

(b) MATTERS TO BE INCLUDED.—The report for a fiscal year 

under subsection (a) shall include the following information: 

(1) The positions, weapon systems, and fields of skills for 

which, by policy, female members are not eligible for assignment, as follows: 

(A) In the report for fiscal year 2002—

(i) an identification of each position, weapon system, and field of skills for which, by policy, female 

members are not eligible; and 

(ii) the rationale for the applicability of the policy 

to each such position, weapon system, and field. 

(B) In the report for each fiscal year after fiscal year 

2002, the positions, weapon systems, and fields for which 

policy on the eligibility of female members for assignment 

has changed during that fiscal year, including a discussion 

of how the policy has changed and the rationale for the 

change. 

(2) Information on joint spouse assignments, as follows: 

(A) The number of cases in which members of the 

Armed Forces married to each other are in assignments to 

which they were jointly assigned during that fiscal year, as 

defined in the applicable Department of Defense and military department personnel assignment policies. 

(B) The number of cases in which members of the 

Armed Forces married to each other are in assignments to 

which they were assigned during that fiscal year, but were 

not jointly assigned (as so defined). 

(3) Promotion selection rates for female members, for male 

members, and for all personnel in the reports submitted by promotion selection boards in that fiscal year for promotion to 

grades E–7, E–8, and E–9, and, in the case of commissioned officers, promotion to grades O–4, O–5, and O–6. 

(4) Retention rates for female members in each grade and 

for male members in each grade during that fiscal year. 

(5) Selection rates for female members and for male members for assignment to grade O–6 and grade O–5 command positions in reports of command selection boards that were submitted during that fiscal year.

(6) Selection rates for female members and for male members for attendance at intermediate service schools (ISS) and, 

separately, for attendance at senior service schools (SSS) in reports of selection boards that were submitted during that fiscal 

year. 

(7) The extent of assignments of female members during 

that fiscal year in each field in which at least 80 percent of the 

Armed Forces personnel assigned in the field are men. 

100

(8) The incidence of sexual harassment complaints made 

during that fiscal year, stated as the number of cases in which 

complaints of sexual harassment were filed under procedures of 

military departments that are applicable to the submission of 

sexual harassment complaints, together with the number and 

percent of the complaints that were substantiated. 

(9) Satisfaction (based on surveys) of female active-duty 

members, female dependents of active-duty members, and female dependents of nonactive duty members entitled to health 

care provided by the Department of Defense with access to, and 

quality of, women’s health care benefits provided by the Department of Defense. 

(c) TIME FOR REPORT.—The report for a fiscal year under this 

section shall be submitted not later than 120 days after the end of 

that fiscal year.

SEC. 563. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED 

FORCES IN SAUDI ARABIA. 

(a) PROHIBITION RELATING TO WEAR OF ABAYAS.—No member 

of the Armed Forces having authority over a member of the Armed 

Forces and no officer or employee of the United States having authority over a member of the Armed Forces may require or encourage that member to wear the abaya garment or any part of the 

abaya garment while the member is in the Kingdom of Saudi Arabia pursuant to a permanent change of station or orders for temporary duty. 

(b) INSTRUCTION.—(1) The Secretary of Defense shall provide 

each female member of the Armed Forces ordered to a permanent 

change of station or temporary duty in the Kingdom of Saudi Arabia with instruction regarding the prohibition in subsection (a). 

Such instruction shall be provided immediately upon or not more 

than 48 hours prior to the arrival of the member at a United States 

military installation within the Kingdom of Saudi Arabia. The instruction shall be presented orally and in writing. The written instruction shall include the full text of this section. 

(2) In carrying out paragraph (1), the Secretary shall act 

through the Commander in Chief, United States Central Command 

and Joint Task Force Southwest Asia, and the commanders of the 

Army, Navy, Air Force, and Marine Corps components of the United 

States Central Command and Joint Task Force Southwest Asia. 

(c) PROHIBITION ON USE OF FUNDS FOR PROCUREMENT OF

ABAYAS.—Funds appropriated or otherwise made available to the 

Department of Defense may not be used to procure abayas for regular or routine issuance to members of the Armed Forces serving in 

the Kingdom of Saudi Arabia or for any personnel of contractors accompanying the Armed Forces in the Kingdom of Saudi Arabia in 

the performance of contracts entered into by the United States with 

such contractors.

Subtitle H—Benefits

SEC. 571. DEPARTMENT OF DEFENSE SUPPORT FOR PERSONS PARTICIPATING IN MILITARY FUNERAL HONORS DETAILS. 

Section 1491(d) of title 10, United States Code, is amended—

101

(1) by striking ‘‘To provide a’’ after ‘‘SUPPORT.—’’ and inserting ‘‘(1) To support a’’; 

(2) by redesignating paragraph (1) as subparagraph (A) 

and amending such subparagraph, as so redesignated, to read 

as follows: ‘‘(A) For a person who participates in a funeral honors detail (other than a person who is a member of the armed forces 

not in a retired status or an employee of the United States), either transportation (or reimbursement for transportation) and 

expenses or the daily stipend prescribed under paragraph (2).’’; 

(3) by redesignating paragraph (2) as subparagraph (B) 

and in that subparagraph— (A) by striking ‘‘Materiel, equipment, and training for’’ and inserting ‘‘For’’; and 

(B) by inserting before the period at the end ‘‘and for 

members of the armed forces in a retired status, materiel, 

equipment, and training’’; 

(4) by redesignating paragraph (3) as subparagraph (C) 

and in that subparagraph— (A) by striking ‘‘Articles of clothing for’’ and inserting ‘‘For’’; and 

(B) by inserting ‘‘, articles of clothing’’ after ‘‘subsection 

(b)(2)’’; and 

(5) by adding at the end the following new paragraphs: ‘‘(2) The Secretary of Defense shall prescribe annually a flat 

rate daily stipend for purposes of paragraph (1)(A). Such stipend 

shall be set at a rate so as to encompass typical costs for transportation and other miscellaneous expenses for persons participating in 

funeral honors details who are members of the armed forces in a retired status and other persons who are not members of the armed 

forces or employees of the United States. ‘‘(3) A stipend paid under this subsection to a member of the 

armed forces in a retired status is in addition to any compensation 

to which the member is entitled under section 435(a)(2) of title 37 

and any other compensation to which the member may be entitled.’’.

SEC. 572. EMERGENCY LEAVE OF ABSENCE PROGRAM. 

(a) IN GENERAL.—Chapter 40 of title 10, United States Code, is 

amended by adding at the end the following new section:

‘‘§ 709. Emergency leave of absence 

‘‘(a) EMERGENCY LEAVE OF ABSENCE.—The Secretary concerned 

may grant a member of the armed forces emergency leave of absence 

for a qualifying emergency. 

‘‘(b) LIMITATIONS.—An emergency leave of absence under this 

section—

‘‘(1) may be granted only once for any member; 

‘‘(2) may be granted only to prevent the member from entering unearned leave status or excess leave status; and 

‘‘(3) may not extend for a period of more than 14 days. 

‘‘(c) QUALIFYING EMERGENCY.—In this section, the term 

‘qualifying emergency’, with respect to a member of the armed 

forces, means a circumstance that—

‘‘(1) is due to—

‘‘(A) a medical condition of a member of the immediate 

family of the member; or 

102

‘‘(B) any other hardship that the Secretary concerned 

determines appropriate for purposes of this section; and 

‘‘(2) is verified to the Secretary’s satisfaction based upon information or opinion from a source in addition to the member 

that the Secretary considers to be objective and reliable. 

‘‘(d) MILITARY DEPARTMENT REGULATIONS.—Regulations prescribed under this section by the Secretaries of the military department shall be as uniform as practicable and shall be subject to approval by the Secretary of Defense. ‘‘(e) DEFINITIONS.—In this section: ‘‘(1) The term ‘unearned leave status’ means leave approved 

to be used by a member of the armed forces that exceeds the 

amount of leave credit that has been accrued as a result of the 

member’s active service and that has not been previously used 

by the member. ‘‘(2) The term ‘excess leave status’ means leave approved to 

be used by a member of the armed forces that is unearned leave 

for which a member is unable to accrue leave credit during the 

member’s current term of service before the member’s separation.’’. (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘709. Emergency leave of absence.’’.

SEC. 573. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT 

PROGRAM. 

(a) ELIGIBLE PERSONS.—Subsection (d) of section 2173 of title 

10, United States Code, is amended by striking ‘‘Participants’’ and 

all that follows through ‘‘and students’’ and inserting ‘‘Students’’. 

(b) LOAN REPAYMENT AMOUNTS.—Subsection (e)(2) of such section is amended by striking the last sentence.

SEC. 574. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID 

TRANSPORTATION OF ENLISTED PERSONNEL FOR REST 

AND RECUPERATION ABSENCE UPON EXTENDING DUTY 

AT DESIGNATED LOCATIONS OVERSEAS. 

(a) EXPANSION OF BENEFITS.—Subsection (b)(2) of section 705 

of title 10, United States Code, is amended by inserting before the 

period at the end the following: ‘‘, or to an alternative destination 

and return at a cost not to exceed the cost of round-trip transportation from the location of the extended tour of duty to such nearest 

port’’. 

(b) CHANGE IN TERMINOLOGY.—(1) Subsection (b) of such section is further amended by striking ‘‘recuperative’’ in paragraphs (1) 

and (2) and inserting ‘‘recuperation’’. 

(2)(A) The heading of such section is amended to read as follows: 

‘‘§ 705. Rest and recuperation absence: qualified enlisted 

members extending duty at designated locations 

overseas’’. 

(B) The item relating to such section in the table of sections at 

the beginning of chapter 40 of such title is amended to read as follows:

‘‘705. Rest and recuperation absence: qualified enlisted members extending duty at 

designated locations overseas.’’.

103

SEC. 575. VEHICLE STORAGE IN LIEU OF TRANSPORTATION WHEN 

MEMBER IS ORDERED TO A NONFOREIGN DUTY STATION 

OUTSIDE CONTINENTAL UNITED STATES. 

(a) STORAGE COSTS AUTHORIZED.—Subsection (b) of section 

2634 of title 10, United States Code, is amended by striking paragraphs (1) and (2) and inserting the following: 

‘‘(b)(1) When a member receives a vehicle storage qualifying 

order, the member may elect to have a motor vehicle described in 

subsection (a) stored at the expense of the United States at a location approved by the Secretary concerned. In the case of a vehicle 

storage qualifying order that is to make a change of permanent station, such storage is in lieu of transportation authorized by subsection (a). 

‘‘(2) In this subsection, the term ‘vehicle storage qualifying 

order’ means any of the following: 

‘‘(A) An order to make a change of permanent station to a 

foreign country in a case in which the laws, regulations, or 

other restrictions imposed by the foreign country or by the 

United States either—

‘‘(i) preclude entry of a motor vehicle described in subsection (a) into that country; or 

‘‘(ii) would require extensive modification of the vehicle 

as a condition to entry. 

‘‘(B) An order to make a change of permanent station to a 

nonforeign area outside the continental United States in a case 

in which the laws, regulations, or other restrictions imposed by 

that area or by the United States either—

‘‘(i) preclude entry of a motor vehicle described in subsection (a) into that area; or 

‘‘(ii) would require extensive modification of the vehicle 

as a condition to entry. 

‘‘(C) An order under which a member is transferred or assigned in connection with a contingency operation to duty at a 

location other than the permanent station of the member for a 

period of more than 30 consecutive days but which is not considered a change of permanent station.’’. 

(b) NONFOREIGN AREA OUTSIDE THE CONTINENTAL UNITED

STATES DEFINED.—Subsection (h) of such section is amended by 

adding at the end the following new paragraph: 

‘‘(3) The term ‘nonforeign area outside the continental 

United States’ means any of the following: the States of Alaska 

and Hawaii, the Commonwealths of Puerto Rico and the Northern Mariana Islands, and any possession of the United States.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

apply to orders to make a change of permanent station to a nonforeign area outside the continental United States (as such term is defined in subsection (h)(3) of section 2634 of title 10, United States 

Code, as added by subsection (b)) that are issued on or after the 

date of the enactment of this Act.

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Subtitle I—Reports

SEC. 581. QUADRENNIAL QUALITY OF LIFE REVIEW. 

(a) REQUIREMENT FOR REVIEW.—(1) Chapter 2 of title 10, 

United States Code, is amended by inserting after section 118 the 

following new section: 

‘‘§ 118a. Quadrennial quality of life review 

‘‘(a) REVIEW REQUIRED.—(1) The Secretary of Defense shall 

every four years conduct a comprehensive examination of the quality 

of life of the members of the armed forces (to be known as the 

‘quadrennial quality of life review’). The review shall include examination of the programs, projects, and activities of the Department 

of Defense, including the morale, welfare, and recreation activities. 

‘‘(2) The quadrennial quality of life review shall be designed to 

result in determinations, and to foster policies and actions, that reflect the priority given the quality of life of members of the armed 

forces as a primary concern of the Department of Defense leadership. 

‘‘(b) CONDUCT OF REVIEW.—Each quadrennial quality of life review shall be conducted so as—

‘‘(1) to assess quality of life priorities and issues consistent 

with the most recent National Security Strategy prescribed by 

the President pursuant to section 108 of the National Security 

Act of 1947 (50 U.S.C. 404a); 

‘‘(2) to identify actions that are needed in order to provide 

members of the armed forces with the quality of life reasonably 

necessary to encourage the successful execution of the full range 

of missions that the members are called on to perform under the 

national security strategy; and 

‘‘(3) to identify other actions that have the potential for improving the quality of life of the members of the armed forces. 

‘‘(c) CONSIDERATIONS.—The Secretary shall consider addressing 

the following matters as part of the quadrennial quality of life review: 

‘‘(1) Infrastructure. 

‘‘(2) Military construction. 

‘‘(3) Physical conditions at military installations and other 

Department of Defense facilities. 

‘‘(4) Budget plans. 

‘‘(5) Adequacy of medical care for members of the armed 

forces and their dependents. 

‘‘(6) Adequacy of housing and the basic allowance for housing and basic allowance for subsistence. 

‘‘(7) Housing-related utility costs. 

‘‘(8) Educational opportunities and costs. 

‘‘(9) Length of deployments. 

‘‘(10) Rates of pay and pay differentials between the pay of 

members and the pay of civilians. 

‘‘(11) Retention and recruiting efforts. 

‘‘(12) Workplace safety. 

‘‘(13) Support services for spouses and children. 

105

‘‘(14) Other elements of Department of Defense programs 

and Government policies and programs that affect the quality 

of life of members. 

‘‘(d) SUBMISSION TO CONGRESSIONAL COMMITTEES.—(1) The 

Secretary shall submit a report on each quadrennial quality of life 

review to the Committee on Armed Services of the Senate and the 

Committee on Armed Services of the House of Representatives. The 

report shall include the following: 

‘‘(A) The assumptions used in the review. 

‘‘(B) The results of the review, including a comprehensive 

discussion of how the quality of life of members of the armed 

forces affects the national security strategy of the United States. 

‘‘(2) 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.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 118 the following new item:

‘‘118a. Quadrennial quality of life review.’’.

(b) FIRST QUADRENNIAL QUALITY OF LIFE REVIEW.—The first 

quadrennial quality of life review under section 118a of title 10, 

United States Code, as added by subsection (a), shall be conducted 

during 2003, and the report on that review required to be submitted 

to Congress under subsection (d) of such section shall be submitted 

not later than the date on which the President submits the budget 

for fiscal year 2005 to Congress.

SEC. 582. REPORT ON DESIRABILITY AND FEASIBILITY OF CONSOLIDATING SEPARATE COURSES OF BASIC INSTRUCTION FOR 

JUDGE ADVOCATES. 

Not later than February 1, 2003, 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 desirability and feasibility of consolidating the separate 

Army, Navy, and Air Force courses of basic instruction for judge advocates into a single course to be conducted at a single location. The 

report shall include—

(1) an assessment of the advantages and disadvantages of 

such a consolidation;

(2) a recommendation as to whether such a consolidation is 

desirable and feasible; and 

(3) any proposal for legislative action that the Secretary 

considers appropriate for carrying out such a consolidation. 

SEC. 583. REPORTS ON EFFORTS TO RESOLVE STATUS OF CAPTAIN MICHAEL SCOTT SPEICHER, UNITED STATES NAVY. 

(a) REPORTS.— Not later than 90 days after the date of the enactment of this Act, and every 120 days thereafter, the Secretary of 

Defense shall submit to Congress a report on the efforts of the 

United States Government to determine the status of Captain Michael Scott Speicher, United States Navy, whose aircraft was shot 

down over Iraq on the night of January 17, 1991. Each such report 

shall be prepared in consultation with the Secretary of State and 

the Director of Central Intelligence. 

106

(b) PERIOD COVERED BY REPORTS.—The first report under subsection (a) shall cover efforts described in that subsection from the 

time that Michael Scott Speicher’s aircraft was shot down over Iraq 

until the date of the report, and each subsequent report shall cover 

efforts described in that subsection since the last such report. 

(c) REPORT ELEMENTS.—Each report under subsection (a) shall 

describe, for the period covered by such report, the following: 

(1) All direct and indirect contacts by the United States 

Government with the Government of Iraq regarding the status 

of Michael Scott Speicher. 

(2) Any request made by the United States Government to 

the government of another country, including the intelligence 

service of such country, for assistance in resolving the status of 

Michael Scott Speicher, including the response to such request. 

(3) Each current lead on the status of Michael Scott 

Speicher, including an assessment of the utility of such lead in 

resolving the status of Michael Scott Speicher. 

(4) Any cooperation with nongovernmental organizations or 

international organizations in resolving the status of Michael 

Scott Speicher, including the results of such cooperation. 

(d) FORM OF REPORTS.—Each report under subsection (a) shall 

be submitted in classified or unclassified form. To the extent submitted in classified form, such report shall include an unclassified 

summary. 

(e) DURATION.—The requirement to submit reports under this 

section shall cease to be effective upon a final determination regarding the status of Michael Scott Speicher by the Secretary of Defense.

SEC. 584. REPORT ON VOLUNTEER SERVICES OF MEMBERS OF THE RESERVE COMPONENTS IN EMERGENCY RESPONSE TO THE 

TERRORIST ATTACKS OF SEPTEMBER 11, 2001. 

(a) REQUIREMENT FOR REPORT.—Not later than 180 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 

House of Representatives a report on volunteer services described in 

subsection (b) that were provided by members of the reserve components of the Armed Forces, while not in a duty status pursuant to 

orders, during the period of September 11 through September 14, 

2001. The report shall include a discussion of any recognition that 

the Secretary considers appropriate for those members regarding the 

provision of such services. 

(b) COVERED VOLUNTEER SERVICES.—The volunteer services referred to in subsection (a) are volunteer services of a military-unique 

nature that were provided—

(1) in the vicinity of the site of the World Trade Center, 

New York, New York, in support of emergency response to the 

terrorist attack on the World Trade Center on September 11, 

2001; 

(2) in the vicinity of the Pentagon, Arlington, Virginia, in 

support of emergency response to the terrorist attack on the Pentagon on September 11, 2001; or 

(3) in the vicinity of Shanksville, Pennsylvania, in support 

of emergency response to the terrorist-caused crash of United 

Airlines Flight 93 in Shanksville, Pennsylvania, on September 

11, 2001.

107

TITLE VI—COMPENSATION AND OTHER 

PERSONNEL BENEFITS

Subtitle A—Pay and Allowances 

Sec. 601. Increase in basic pay for fiscal year 2003. 

Sec. 602. Basic allowance for housing in cases of low-cost or no-cost moves. 

Sec. 603. Rate of basic allowance for subsistence for enlisted personnel occupying 

single Government quarters without adequate availability of meals. 

Subtitle B—Bonuses and Special and Incentive Pays 

Sec. 611. One-year extension of certain bonus and special pay authorities for reserve 

forces. 

Sec. 612. One-year extension of certain bonus and special pay authorities for certain 

health care professionals. 

Sec. 613. One-year extension of special pay and bonus authorities for nuclear officers. 

Sec. 614. One-year extension of other bonus and special pay authorities. 

Sec. 615. Increase in maximum rates for certain special pays, bonuses, and financial 

assistance for health care professionals. 

Sec. 616. Assignment incentive pay. 

Sec. 617. Increase in maximum rates for prior service enlistment bonus. 

Sec. 618. Retention incentives for health care professionals qualified in a critical 

military skill. 

Subtitle C—Travel and Transportation Allowances 

Sec. 621. Extension of leave travel deferral period for members performing consecutive overseas tours of duty. 

Sec. 622. Transportation of motor vehicles for members reported missing. 

Subtitle D—Retired Pay and Survivor Benefits 

Sec. 631. Permanent reduction from eight to six in number of years of reserve service 

required for eligibility for retired pay for non-regular service. 

Sec. 632. Increased retired pay for enlisted Reserves credited with extraordinary heroism. 

Sec. 633. Elimination of possible inversion in retired pay cost-of-living adjustment 

for initial COLA computation. 

Sec. 634. Technical revisions to so-called ‘‘forgotten widows’’ annuity program. 

Sec. 635. Expansion of authority of Secretary of Defense to waive time limitations 

on claims against the Government for military personnel benefits. 

Sec. 636. Special compensation for certain combat-related disabled uniformed services retirees. 

Subtitle E—Montgomery GI Bill 

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by members of 

the Selected Reserve. 

Sec. 642. Repayment requirements under Reserve Component Montgomery GI Bill 

arising from failure to participate satisfactorily in military service to be 

considered debts owed to the United States. 

Sec. 643. Technical adjustments to authority for certain members to transfer 

educational assistance under Montgomery GI Bill to dependents.

Subtitle F—Other Matters 

Sec. 651. Payment of interest on student loans. 

Sec. 652. Additional authority to provide assistance for families of members of the 

Armed Forces. 

Sec. 653. Repeal of authority for acceptance of honoraria by personnel at certain Department of Defense schools. 

Sec. 654. Addition of definition of continental United States in title 37.

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Subtitle A—Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003. 

(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The adjustment to 

become effective during fiscal year 2003 required by section 1009 of 

title 37, United States Code, in the rates of monthly basic pay authorized members of the uniformed services shall not be made. 

(b) INCREASE IN BASIC PAY.—Effective on January 1, 2003, the 

rates of monthly basic pay for members of the uniformed services 

within each pay grade are as follows:

109

COMMISSIONED OFFICERS 1

Years of service computed under section 205 of title 37, United States Code 

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–10 2 ............................................................ $0.00 $0.00 $0.00 $0.00 $0.00

O–9 ................................................................ 0.00 0.00 0.00 0.00 0.00 

O–8 ................................................................ 7,474.50 7,719.30 7,881.60 7,927.20 8,129.40

O–7 ................................................................ 6,210.90 6,499.20 6,633.00 6,739.20 6,930.90

O–6 ................................................................ 4,603.20 5,057.10 5,388.90 5,388.90 5,409.60

O–5 ................................................................ 3,837.60 4,323.00 4,622.40 4,678.50 4,864.80

O–4 ................................................................ 3,311.10 3,832.80 4,088.70 4,145.70 4,383.00

O–3 3 .............................................................. 2,911.20 3,300.30 3,562.20 3,883.50 4,069.50

O–2 3 .............................................................. 2,515.20 2,864.70 3,299.40 3,410.70 3,481.20

O–1 3 .............................................................. 2,183.70 2,272.50 2,746.80 2,746.80 2,746.80

Over 8 Over 10 Over 12 Over 14 Over 16

O–10 2 ............................................................ $0.00 $0.00 $0.00 $0.00 $0.00 

O–9 ................................................................ 0.00 0.00 0.00 0.00 0.00 

O–8 ................................................................ 8,468.70 8,547.30 8,868.90 8,961.30 9,238.20

O–7 ................................................................ 7,120.80 7,340.40 7,559.40 7,779.00 8,468.70

O–6 ................................................................ 5,641.20 5,672.10 5,672.10 5,994.60 6,564.30

O–5 ................................................................ 4,977.00 5,222.70 5,403.00 5,635.50 5,991.90

O–4 ................................................................ 4,637.70 4,954.50 5,201.40 5,372.70 5,471.10

O–3 3 .............................................................. 4,273.50 4,405.80 4,623.30 4,736.10 4,736.10

O–2 3 .............................................................. 3,481.20 3,481.20 3,481.20 3,481.20 3,481.20

O–1 3 .............................................................. 2,746.80 2,746.80 2,746.80 2,746.80 2,746.80

Over 18 Over 20 Over 22 Over 24 Over 26

O–10 2 ............................................................ $0.00 $12,077.70 $12,137.10 $12,389.40 $12,829.20

O–9 ................................................................ 0.00 10,563.60 10,715.70 10,935.60 11,319.60

O–8 ................................................................ 9,639.00 10,008.90 10,255.80 10,255.80 10,255.80

O–7 ................................................................ 9,051.30 9,051.30 9,051.30 9,051.30 9,096.90

O–6 ................................................................ 6,898.80 7,233.30 7,423.50 7,616.10 7,989.90

O–5 ................................................................ 6,161.70 6,329.10 6,519.60 6,519.60 6,519.60

O–4 ................................................................ 5,528.40 5,528.40 5,528.40 5,528.40 5,528.40

O–3 3 .............................................................. 4,736.10 4,736.10 4,736.10 4,736.10 4,736.10

O–2 3 .............................................................. 3,481.20 3,481.20 3,481.20 3,481.20 3,481.20

O–1 3 .............................................................. 2,746.80 2,746.80 2,746.80 2,746.80 2,746.80

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned officers in 

pay grades 0–7 through O–10 may not exceed the rate of pay for level III of the Executive Schedule and the actual rate of 

basic pay for all other officers may not exceed the rate of pay for level V of the Executive Schedule. 2 Subject to the preceding footnote, the rate of basic pay for an officer in this grade while serving as Chairman or Vice 

Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, 

Commandant of the Marine Corps, or Commandant of the Coast Guard is $14,155.50, regardless of cumulative years of 

service computed under section 205 of title 37, United States Code. 3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have been credited with over 4 

years of active duty service as an enlisted member or warrant officer. 

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER 

Years of service computed under section 205 of title 37, United States Code 

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–3E .................................................................... $0.00 $0.00 $0.00 $3,883.50 $4,069.50

O–2E .................................................................... 0.00 0.00 0.00 3,410.70 3,481.20

O–1E .................................................................... 0.00 0.00 0.00 2,746.80 2,933.70

Over 8 Over 10 Over 12 Over 14 Over 16

O–3E .................................................................... $4,273.50 $4,405.80 $4,623.30 $4,806.30 $4,911.00

O–2E .................................................................... 3,591.90 3,778.80 3,923.40 4,031.10 4,031.10

O–1E .................................................................... 3,042.00 3,152.70 3,261.60 3,410.70 3,410.70

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E .................................................................... $5,054.40 $5,054.40 $5,054.40 $5,054.40 $5,054.40

O–2E .................................................................... 4,031.10 4,031.10 4,031.10 4,031.10 4,031.10

110

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER 

Years of service computed under section 205 of title 37, United States Code 

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–1E .................................................................... 3,410.70 3,410.70 3,410.70 3,410.70 3,410.70

WARRANT OFFICERS 1

Years of service computed under section 205 of title 37, United States Code 

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–5 ........................................................................ $0.00 $0.00 $0.00 $0.00 $0.00 

W–4 ........................................................................ 3,008.10 3,236.10 3,329.10 3,420.60 3,578.10

W–3 ........................................................................ 2,747.10 2,862.00 2,979.30 3,017.70 3,141.00

W–2 ........................................................................ 2,416.50 2,554.50 2,675.10 2,763.00 2,838.30

W–1 ........................................................................ 2,133.90 2,308.50 2,425.50 2,501.10 2,662.50

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 ........................................................................ $0.00 $0.00 $0.00 $0.00 $0.00

W–4 ........................................................................ 3,733.50 3,891.00 4,044.60 4,203.60 4,356.00

W–3 ........................................................................ 3,281.70 3,467.40 3,580.50 3,771.90 3,915.60

W–2 ........................................................................ 2,993.10 3,148.50 3,264.00 3,376.50 3,453.90

W–1 ........................................................................ 2,782.20 2,888.40 3,006.90 3,085.20 3,203.40

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 ........................................................................ $0.00 $5,169.30 $5,346.60 $5,524.50 $5,703.30

W–4 ........................................................................ 4,512.00 4,664.40 4,822.50 4,978.20 5,137.50

W–3 ........................................................................ 4,058.40 4,201.50 4,266.30 4,407.00 4,548.00 

W–2 ........................................................................ 3,579.90 3,705.90 3,831.00 3,957.30 3,957.30

W–1 ........................................................................ 3,320.70 3,409.50 3,409.50 3,409.50 3,409.50

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers may not 

exceed the rate of pay for level V of the Executive Schedule. 

ENLISTED MEMBERS 1

Years of service computed under section 205 of title 37, United States Code 

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–9 2 .................................................................... $0.00 $0.00 $0.00 $0.00 $0.00 

E–8 ...................................................................... 0.00 0.00 0.00 0.00 0.00 

E–7 ...................................................................... 2,068.50 2,257.80 2,343.90 2,428.20 2,516.40

E–6 ...................................................................... 1,770.60 1,947.60 2,033.70 2,117.10 2,204.10

E–5 ...................................................................... 1,625.40 1,733.70 1,817.40 1,903.50 2,037.00

E–4 ...................................................................... 1,502.70 1,579.80 1,665.30 1,749.30 1,824.00

E–3 ...................................................................... 1,356.90 1,442.10 1,528.80 1,528.80 1,528.80

E–2 ...................................................................... 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00

E–1 ...................................................................... 3 1,150.80 1,150.80 1,150.80 1,150.80 1,150.80

Over 8 Over 10 Over 12 Over 14 Over 16

E–9 2 .................................................................... $0.00 $3,564.30 $3,645.00 $3,747.00 $3,867.00

E–8 ...................................................................... 2,975.40 3,061.20 3,141.30 3,237.60 3,342.00

E–7 ...................................................................... 2,667.90 2,753.40 2,838.30 2,990.40 3,066.30

E–6 ...................................................................... 2,400.90 2,477.40 2,562.30 2,636.70 2,663.10

E–5 ...................................................................... 2,151.90 2,236.80 2,283.30 2,283.30 2,283.30

E–4 ...................................................................... 1,824.00 1,824.00 1,824.00 1,824.00 1,824.00

E–3 ...................................................................... 1,528.80 1,528.80 1,528.80 1,528.80 1,528.80

E–2 ...................................................................... 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00

E–1 ...................................................................... 1,150.80 1,150.80 1,150.80 1,150.80 1,150.80

Over 18 Over 20 Over 22 Over 24 Over 26

E–9 2 .................................................................... $3,987.30 $4,180.80 $4,344.30 $4,506.30 $4,757.40

E–8 ...................................................................... 3,530.10 3,625.50 3,787.50 3,877.50 4,099.20

E–7 ...................................................................... 3,138.60 3,182.70 3,331.50 3,427.80 3,671.40

E–6 ...................................................................... 2,709.60 2,709.60 2,709.60 2,709.60 2,709.60

E–5 ...................................................................... 2,283.30 2,283.30 2,283.30 2,283.30 2,283.30

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ENLISTED MEMBERS 1—Continued

Years of service computed under section 205 of title 37, United States Code 

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–4 ...................................................................... 1,824.00 1,824.00 1,824.00 1,824.00 1,824.00

E–3 ...................................................................... 1,528.80 1,528.80 1,528.80 1,528.80 1,528.80

E–2 ...................................................................... 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00

E–1 ...................................................................... 1,150.80 1,150.80 1,150.80 1,150.80 1,150.80

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted members may not 

exceed the rate of pay for level V of the Executive Schedule. 2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as Sergeant 

Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer of the Coast Guard, basic pay is $5,732.70, regardless of cumulative years of service computed under section 205 of title 37, United States Code. 3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, the rate of basic pay is 

$1,064.70. 

SEC. 602. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST OR 

NO-COST MOVES. 

Section 403 of title 37, United States Code, is amended—

(1) by transferring paragraph (7) of subsection (b) to the 

end of the section; and 

(2) in such paragraph—

(A) by striking ‘‘(7)’’ and all that follows through 

‘‘circumstances of which make it necessary that the member 

be’’ and inserting ‘‘(o) TREATMENT OF LOW-COST AND NOCOST MOVES AS NOT BEING REASSIGNMENTS.—In the case 

of a member who is assigned to duty at a location or under 

circumstances that make it necessary for the member to be’’; 

and 

(B) by inserting ‘‘for the purposes of this section’’ after 

‘‘may be treated’’.

SEC. 603. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR ENLISTED PERSONNEL OCCUPYING SINGLE GOVERNMENT 

QUARTERS WITHOUT ADEQUATE AVAILABILITY OF MEALS. 

Section 402(d) of title 37, United States Code, is amended to 

read as follows: 

‘‘(d) SPECIAL RATE FOR ENLISTED MEMBERS OCCUPYING SINGLE

QUARTERS WITHOUT ADEQUATE AVAILABILITY OF MEALS.—The Secretary of Defense, and the Secretary of the department in which the 

Coast Guard is operating, may pay an enlisted member the basic allowance for subsistence under this section at a monthly rate that is 

twice the amount in effect under subsection (b)(2) while—

‘‘(1) the member is assigned to single Government quarters 

which have no adequate food storage or preparation facility in 

the quarters; and 

‘‘(2) there is no Government messing facility serving those 

quarters that is capable of making meals available to the occupants of the quarters.’’.

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Subtitle B—Bonuses and Special and 

Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL 

PAY AUTHORITIES FOR RESERVE FORCES. 

(a) SELECTED RESERVE REENLISTMENT BONUS.—Section 

308b(f ) of title 37, United States Code, is amended by striking 

‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. 

(b) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e) of 

such title is amended by striking ‘‘December 31, 2002’’ and inserting 

‘‘December 31, 2003’’. 

(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of such title is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 

2003’’. 

(d) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e) of 

such title is amended by striking ‘‘December 31, 2002’’ and inserting 

‘‘December 31, 2003’’. 

(e) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.—

Section 308h(g) of such title is amended by striking ‘‘December 31, 

2002’’ and inserting ‘‘December 31, 2003’’. 

(f) PRIOR SERVICE ENLISTMENT BONUS.—Section 308i(f ) of such 

title is amended by striking ‘‘December 31, 2002’’ and inserting 

‘‘December 31, 2003’’. 

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL 

PAY AUTHORITIES FOR CERTAIN 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, 2002’’ and inserting ‘‘December 31, 2003’’. 

(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, 2003’’ and 

inserting ‘‘January 1, 2004’’. 

(c) ACCESSION BONUS FOR REGISTERED NURSES.—Section 

302d(a)(1) of title 37, United States Code, is amended by striking 

‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. 

(d) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section 302e(a)(1) of such title is amended by striking ‘‘December 31, 

2002’’ and inserting ‘‘December 31, 2003’’. 

(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES.—Section 

302g(f ) of such title is amended by striking ‘‘December 31, 2002’’

and inserting ‘‘December 31, 2003’’. 

(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Section 

302h(a)(1) of such title is amended by striking ‘‘December 31, 2002’’

and inserting ‘‘December 31, 2003’’.

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

(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e) of title 37, United 

States Code, is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. 

113

(b) NUCLEAR CAREER ACCESSION BONUS.—Section 312b(c) of 

such title is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. (c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—Section 

312c(d) of such title is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. 

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 

AUTHORITIES. 

(a) AVIATION OFFICER RETENTION BONUS.—Section 301b(a) of 

title 37, United States Code, is amended by striking ‘‘December 31, 

2002’’ and inserting ‘‘December 31, 2003’’. (b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section 

308(g) of such title is amended by striking ‘‘December 31, 2002’’ and 

inserting ‘‘December 31, 2003’’. (c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section 309(e) 

of such title is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. (d) RETENTION BONUS FOR MEMBERS WITH CRITICAL MILITARY

SKILLS.—Section 323(i) of such title is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’. (e) ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL

SKILLS.—Section 324(g) of such title is amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.

SEC. 615. INCREASE IN MAXIMUM RATES FOR CERTAIN SPECIAL PAYS, 

BONUSES, AND FINANCIAL ASSISTANCE FOR HEALTH 

CARE PROFESSIONALS. 

(a) RETENTION BONUS FOR MEDICAL OFFICERS.—Section 

301d(a)(2) of title 37, United States Code, is amended by striking 

‘‘$14,000’’ and inserting ‘‘$50,000’’. (b) RETENTION BONUS FOR DENTAL OFFICERS.—Section 

301e(a)(2) of such title is amended by striking ‘‘$14,000’’ and inserting ‘‘$50,000’’. (c) INCENTIVE SPECIAL PAY FOR MEDICAL OFFICERS.—Section 

302(b)(1) of such title is amended by striking the second sentence 

and inserting the following new sentence: ‘‘The amount of incentive 

special pay paid to an officer under this subsection may not exceed 

$50,000 for any 12-month period.’’. 

(d) RETENTION SPECIAL PAY OPTOMETRISTS.—Section 

302a(b)(1) of such title is amended by striking ‘‘$6,000’’ and inserting ‘‘$15,000’’. (e) ACCESSION BONUS FOR REGISTERED NURSES.—Section 

302d(a)(2) of such title is amended by striking ‘‘$5,000’’ and inserting ‘‘$30,000’’. 

(f) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section 

302e(a)(1) of such title is amended by striking ‘‘$15,000’’ and inserting ‘‘$50,000’’. 

(g) RETENTION SPECIAL PAY FOR PHARMACY OFFICERS.—Section 

302i of such title is amended—

(1) in subsections (a) and (b), by striking ‘‘special pay at the 

rates specified in subsection (d)’’ both places it appears and inserting ‘‘retention special pay under this section’’; 

(2) in subsection (c), by striking ‘‘LIMITATION.—’’ and inserting ‘‘LIMITATION ON ELIGIBILITY FOR SPECIAL PAY.—’’; and 

(3) by striking subsection (d) and inserting the following 

new subsection: 

114

‘‘(d) LIMITATION ON AMOUNT OF SPECIAL PAY.—The amount of 

retention special pay paid to an officer under this section may not 

exceed $15,000 for any 12-month period.’’. (h) FINANCIAL ASSISTANCE FOR NURSE OFFICER CANDIDATES.— Section 2130a(a) of title 10, United States Code, is amended— (1) in paragraph (1), by striking ‘‘$5,000’’ in the first sentence and inserting ‘‘$10,000’’ and by striking ‘‘$2,500’’ in the 

second sentence and inserting ‘‘$5,000’’; and 

(2) in paragraph (2), by striking ‘‘$500’’ and inserting ‘‘$1,000’’. (i) APPLICATION OF INCREASE.—In the case of an amendment 

made by this section to increase the maximum amount of a special 

pay or bonus that may be paid during any 12-month period, the 

amended limitation shall apply to 12-month periods beginning after 

September 30, 2002.

SEC. 616. ASSIGNMENT INCENTIVE PAY. 

(a) AUTHORITY.—(1) Chapter 5 of title 37, United States Code, 

is amended by inserting after section 307 the following new section: 

‘‘§ 307a. Special pay: assignment incentive pay 

‘‘(a) AUTHORITY.—The Secretary concerned may pay monthly incentive pay under this section to a member of a uniformed service 

who performs service, while entitled to basic pay, in an assignment 

designated by the Secretary concerned. 

‘‘(b) WRITTEN AGREEMENT.—The period for which incentive pay 

will be provided under this section and the monthly rate of the incentive pay for a member shall be specified in a written agreement 

between the Secretary concerned and the member. Agreements entered into by the Secretary of a military department shall require 

the concurrence of the Secretary of Defense. 

‘‘(c) MAXIMUM RATE.—The maximum monthly rate of incentive 

pay payable to a member under this section is $1,500. 

‘‘(d) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.—Incentive 

pay paid to a member under this section is in addition to any other 

pay and allowances to which the member is entitled. 

‘‘(e) STATUS NOT AFFECTED BY TEMPORARY DUTY OR LEAVE.—

The service of a member in an assignment referred to in subsection 

(a) shall not be considered discontinued during any period that the 

member is not performing service in the assignment by reason of 

temporary duty performed by the member pursuant to orders or absence of the member for authorized leave. 

‘‘(f) TERMINATION OF AUTHORITY.—No agreement under this 

section may be entered into after December 31, 2005.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 307 the following new item:

‘‘307a. Special pay: assignment incentive pay.’’.

(b) ANNUAL REPORT.—Not later than February 28, 2004, and 

February 28, 2005, 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 use 

of the authority provided under section 307a of title 37, United 

States Code, as added by subsection (a), including an assessment of 

the utility of that authority.

115

SEC. 617. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE ENLISTMENT BONUS. 

Section 308i(b)(1) of title 37, United States Code, is amended—

(1) in subparagraph (A), by striking ‘‘$5,000’’ and inserting 

‘‘$8,000’’; 

(2) in subparagraph (B), by striking ‘‘$2,500’’ and inserting 

‘‘$4,000’’; and 

(3) in subparagraph (C), by striking ‘‘$2,000’’ and inserting 

‘‘$3,500’’.

SEC. 618. RETENTION INCENTIVES FOR HEALTH CARE PROFESSIONALS QUALIFIED IN A CRITICAL MILITARY SKILL. 

(a) EXCEPTION TO LIMITATION ON MAXIMUM BONUS AMOUNT.—

Subsection (d) of section 323 of title 37, United States Code, is 

amended—

(1) by inserting ‘‘(1)’’ before ‘‘A member’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(2) The limitation in paragraph (1) on the total bonus payments that a member may receive under this section does not apply 

with respect to an officer who is assigned duties as a health care 

professional.’’. 

(b) EXCEPTION TO YEARS OF SERVICE LIMITATION.—Subsection 

(e) of such section is amended—

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; 

(2) by inserting ‘‘(1)’’ before ‘‘A retention’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(2) The limitations in paragraph (1) do not apply with respect 

to an officer who is assigned duties as a health care professional 

during the period of active duty for which the bonus is being offered.’’.

Subtitle C—Travel and Transportation 

Allowances

SEC. 621. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR MEMBERS PERFORMING CONSECUTIVE OVERSEAS TOURS OF 

DUTY. 

(a) AUTHORIZED DEFERRAL PERIOD.—Section 411b of title 37, 

United States Code is amended by inserting after subsection (a) the 

following new subsection: 

‘‘(b) AUTHORITY TO DEFER TRAVEL; LIMITATIONS.—(1) Under 

the regulations referred to in subsection (a), a member may defer the 

travel for which the member is paid travel and transportation allowances under this section until any time before the completion of 

the consecutive tour at the same duty station or the completion of 

the tour of duty at the new duty station under the order involved, 

as the case may be. 

‘‘(2) If a member is unable to undertake the travel before expiration of the deferral period under paragraph (1) because of duty in 

connection with a contingency operation, the member may defer the 

travel until not more than one year after the date on which the 

member’s duty in connection with the contingency operation ends.’’. 

(b) CONFORMING AND CLERICAL AMENDMENTS.—Such section is 

further amended—

116

(1) in subsection (a)— (A) by striking ‘‘(a)(1)’’ and inserting ‘‘(a) ALLOWANCES

AUTHORIZED.—’’; and 

(B) by striking paragraph (2); and 

(2) by striking ‘‘(b) The allowances’’ and inserting ‘‘(c) 

LIMITATION ON ALLOWANCE RATE.—The allowances’’. (c) APPLICATION OF AMENDMENT.—Subsection (b) of section 

411b of title 37, United States Code, as added by subsection (a), 

shall apply with respect to members of the uniformed services in a 

deferred leave travel status under such section as of the date of the 

enactment of this Act or becomes entitled to travel and transportation allowances under such section on or after that date.

SEC. 622. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS REPORTED MISSING. 

(a) AUTHORITY TO SHIP TWO MOTOR VEHICLES.—Subsection (a) 

of section 554 of title 37, United States Code, is amended by striking ‘‘one privately owned motor vehicle’’ both places it appears and 

inserting ‘‘two privately owned motor vehicles’’. 

(b) PAYMENTS FOR LATE DELIVERY.—Subsection (i) of such section is amended by adding at the end the following new sentence: 

‘‘In a case in which two motor vehicles of a member (or the dependent or dependents of a member) are transported at the expense of the 

United States, no reimbursement is payable under this subsection 

unless both motor vehicles do not arrive at the authorized destination of the vehicles by the designated delivery date.’’. 

(c) APPLICABILITY.—The amendments made by subsection (a) 

shall apply with respect to members whose eligibility for benefits 

under section 554 of title 37, United States Code, commences on or 

after the date of the enactment of this Act.

Subtitle D—Retired Pay and Survivor 

Benefits

SEC. 631. PERMANENT REDUCTION FROM EIGHT TO SIX IN NUMBER 

OF YEARS OF RESERVE SERVICE REQUIRED FOR ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR SERVICE. 

(a) REDUCTION IN REQUIREMENT FOR YEARS OF RESERVE COM- PONENT SERVICE BEFORE RETIRED PAY ELIGIBILITY.—Subsection 

(a)(3) of section 12731 of title 10, United States Code, is amended— (1) by striking ‘‘eight years’’ and inserting ‘‘six years’’; and 

(2) by inserting before the semicolon ‘‘, except that in the 

case of a person who completed the service requirements of 

paragraph (2) before October 5, 1994, the number of years of 

such qualifying service under this paragraph shall be eight’’. (b) CONFORMING AMENDMENT.—Subsection (f) of such section is 

repealed. 

(c) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect on October 1, 2002. No benefit shall accrue to any 

person for any period before that date by reason of the enactment 

of those amendments. 

SEC. 632. INCREASED RETIRED PAY FOR ENLISTED RESERVES CREDITED WITH EXTRAORDINARY HEROISM. 

(a) AUTHORITY.—Section 12739 of title 10, United States Code, 

is amended—

117

(1) by redesignating subsections (b) and (c) as subsections 

(c) and (d), respectively; and 

(2) by inserting after subsection (a) the following new subsection (b): 

‘‘(b) If a person entitled to retired pay under this chapter has 

been credited by the Secretary concerned with extraordinary heroism 

in the line of duty and if the highest grade held satisfactorily by 

that person at any time in the armed forces is an enlisted grade, 

the person’s retired pay shall be increased by 10 percent of the 

amount determined under subsection (a). The Secretary’s determination as to extraordinary heroism is conclusive for all purposes.’’. (b) CONFORMING AMENDMENT.—Subsection (c) of such section, 

as redesignated by subsection (a)(1), is amended by striking 

‘‘amount computed under subsection (a)’’ and inserting ‘‘total 

amount of the monthly retired pay computed under subsections (a) 

and (b)’’. (c) EFFECTIVE DATE.—The amendments made by subsections (a) 

and (b) shall take effect on October 1, 2002, and shall apply with 

respect to retired pay for months beginning on or after that date.

SEC. 633. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY 

COST-OF-LIVING ADJUSTMENT FOR INITIAL COLA COMPUTATION. 

(a) ELIMINATION OF POSSIBLE COLA INVERSION.—Section 

1401a of title 10, United States Code, is amended—

(1) in subsections (c)(1), (d), and (e), by inserting ‘‘but subject to subsection (f)(2)’’ after ‘‘Notwithstanding subsection (b)’’; 

(2) in subsection (c)(2), by inserting ‘‘(subject to subsection 

(f)(2) as applied to other members whose retired pay is computed on the current rates of basic pay in the most recent adjustment under this section)’’ after ‘‘shall be increased’’; and 

(3) in subsection (f)—

(A) by designating the text after the subsection heading 

as paragraph (1), indenting that text two ems, and inserting ‘‘PREVENTION OF RETIRED PAY INVERSIONS.—’’ before 

‘‘Notwithstanding’’; and 

(B) by adding at the end the following new paragraph: 

‘‘(2) PREVENTION OF COLA INVERSIONS.—The percentage of 

the first adjustment under this section in the retired pay of any 

person, as determined under subsection (c)(1), (c)(2), (d), or (e), 

may not exceed the percentage increase in retired pay determined under subsection (b)(2) that is effective on the same date 

as the effective date of such first adjustment.’’. 

(b) TECHNICAL AMENDMENTS.—Such section is further amended— (1) in subsection (d), by inserting ‘‘or on or after August 1, 

1986, if the member or former member did not elect to receive 

a bonus under section 322 of title 37’’ after ‘‘August 1, 1986,’’; 

and

(2) in subsection (e), by inserting ‘‘and elected to receive a 

bonus under section 322 of title 37’’ after ‘‘August 1, 1986,’’.

SEC. 634. TECHNICAL REVISIONS TO SO-CALLED ‘‘FORGOTTEN WIDOWS’’ ANNUITY PROGRAM. 

(a) CLARIFICATION OF ELIGIBILITY.—Subsection (a)(1) of section 

644 of the National Defense Authorization Act for Fiscal Year 1998 

(Public Law 105–85; 10 U.S.C. 1448 note) is amended—

118

(1) in subparagraph (A), by inserting after ‘‘(A)’’ the following: ‘‘became entitled to retired or retainer pay before September 21, 1972,’’; and 

(2) in subparagraph (B), by striking ‘‘was a member of a 

reserve component of the Armed Forces’’ and inserting ‘‘died’’. (b) CLARIFICATION OF INTERACTION WITH OTHER BENEFITS.— (1) Subsection (a)(2) of such section is amended by striking ‘‘and 

who’’ and all that follows through ‘‘note)’’. (2) Subsection (b)(2) of such section is amended to read as follows: ‘‘(2) The amount of an annuity to which a surviving spouse is 

entitled under this section for any period shall be reduced (but not 

below zero) by any amount paid to that surviving spouse for the 

same period under any of the following provisions of law: ‘‘(A) Section 1311(a) of title 38, United States Code 

(relating to dependency and indemnity compensation payable by 

the Secretary of Veterans Affairs). ‘‘(B) Chapter 73 of title 10, United States Code. 

‘‘(C) Section 4 of Public Law 92–425 (10 U.S.C. 1448 

note).’’. (c) CLARIFICATION OF DEFINITION OF SURVIVING SPOUSE.—Subsection (d)(2) of such section is amended by striking ‘‘the terms’’ and 

all that follows through ‘‘and (8)’’ and inserting ‘‘such term in paragraph (9)’’. (d) SPECIFICATION IN LAW OF CURRENT BENEFIT AMOUNT.— Subsection (b) of such section is amended— (1) in paragraph (1), by striking ‘‘$165’’ and inserting ‘‘$185.58’’; and 

(2) in paragraph (3)— (A) by striking ‘‘the date of the enactment of this Act’’ and inserting ‘‘May 1, 2002,’’; and 

(B) by striking the last sentence. 

(e) SPECIFICATION OF ENACTMENT MONTH.—Subsection (e) of 

such section is amended—

(1) in paragraph (1), by striking ‘‘the month in which this 

Act is enacted’’ and inserting ‘‘November 1997’’; and 

(2) in paragraph (2), by striking ‘‘the first month that begins after the month in which this Act is enacted’’ and inserting 

‘‘December 1997’’.

SEC. 635. EXPANSION OF AUTHORITY OF SECRETARY OF DEFENSE TO 

WAIVE TIME LIMITATIONS ON CLAIMS AGAINST THE GOVERNMENT FOR MILITARY PERSONNEL BENEFITS. 

(a) AUTHORITY FOR WAIVER OF TIME LIMITATIONS.—Paragraph 

(1) of section 3702(e) of title 31, United States Code, is amended by 

striking ‘‘a claim’’ and all that follows through ‘‘title 10’’ and inserting ‘‘a claim referred to in subsection (a)(1)(A)’’. 

(b) TECHNICAL AMENDMENTS.—(1) Such paragraph is further 

amended—

(A) by striking ‘‘Upon the request’’ and all that follows 

through ‘‘the Secretary of Defense’’ and inserting ‘‘The Secretary 

of Defense’’; 

(B) by striking ‘‘and, subject to paragraph (2), settle the 

claim’’; and 

(C) by adding at the end the following new sentence: ‘‘In the 

case of a claim by or with respect to a member of the uniformed 

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services who is not under the jurisdiction of the Secretary of a 

military department, such a waiver may be made only upon the 

request of the Secretary concerned (as defined in section 101 of 

title 37).’’. (2) Paragraph (2) of such section is amended— (A) by striking ‘‘under paragraph (1)’’ and inserting ‘‘under 

subsection (a)(1)(A)’’; and 

(B) by inserting before the period at the end the following: ‘‘, except that in the case of a claim for retired pay or survivor 

benefits, if the obligation claimed would have been paid from 

a trust fund if timely paid, the payment of the claim shall be 

made from that trust fund’’. (c) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to claims against the United States presented to the Secretary of Defense under section 3702 of title 31, 

United States Code, on or after the date of the enactment of this Act.

SEC. 636. SPECIAL COMPENSATION FOR CERTAIN COMBAT-RELATED 

DISABLED UNIFORMED SERVICES RETIREES. 

(a) AUTHORITY.—(1) Chapter 71 of title 10, United States Code, 

is amended by inserting after section 1413 the following new section: 

‘‘§ 1413a. Special compensation for certain combat-related 

disabled uniformed services retirees 

‘‘(a) AUTHORITY.—The Secretary concerned shall pay to each eligible combat-related disabled uniformed services retiree who elects 

benefits under this section a monthly amount for the combat-related 

disability of the retiree determined under subsection (b). ‘‘(b) AMOUNT.—

‘‘(1) DETERMINATION OF MONTHLY AMOUNT.—Subject to 

paragraphs (2) and (3), the monthly amount to be paid an eligible combat-related disabled uniformed services retiree for a 

combat-related disability under subsection (a) is the monthly 

amount of compensation to which the retiree would be entitled 

solely for the combat-related disability consistent with chapter 

11 of title 38. 

‘‘(2) MAXIMUM AMOUNT.—The amount paid to an eligible 

combat-related disabled uniformed services retiree for any 

month under paragraph (1) may not exceed the amount of the 

reduction in retired pay that is applicable to the retiree for that 

month under sections 5304 and 5305 of title 38. 

‘‘(3) SPECIAL RULES FOR CHAPTER 61 DISABILITY RETIREES.—In the case of an eligible combat-related disabled uniformed services retiree who is retired under chapter 61 of this 

title, 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 of retired pay to which the member 

would have been entitled under any other provision of law 

based upon the member’s service in the uniformed services if the 

member had not been retired under chapter 61 of this title. 

‘‘(c) ELIGIBLE RETIREES.—For purposes of this section, an eligible combat-related disabled uniformed services retiree referred to in 

subsection (a) is a member of the uniformed services entitled to retired pay who—

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‘‘(1) has completed at least 20 years of service in the uniformed services that are creditable for purposes of computing 

the amount of retired pay to which the member is entitled; and 

‘‘(2) has a qualifying combat-related disability. 

‘‘(d) PROCEDURES.—The Secretary of Defense shall prescribe 

procedures and criteria under which a disabled uniformed services 

retiree may apply to the Secretary of a military department to be 

considered to be an eligible combat-related disabled uniformed services retiree. Such procedures shall apply uniformly throughout the 

Department of Defense. 

‘‘(e) QUALIFYING COMBAT-RELATED DISABILITY.—In this section, 

the term ‘qualifying combat-related disability’ means either of the 

following: 

‘‘(1) A disability that—

‘‘(A) is attributable to an injury for which the member 

was awarded the Purple Heart; and 

‘‘(B) is rated as not less than 10 percent disabling—

‘‘(i) by the Secretary concerned, as of the date on 

which the member is retired from the uniformed services, under criteria prescribed by the Secretary of Defense; or 

‘‘(ii) by the Secretary of Veterans Affairs. 

‘‘(2) A service-connected disability that—

‘‘(A) was incurred (as determined under criteria prescribed by the Secretary of Defense)—

‘‘(i) as a direct result of armed conflict; 

‘‘(ii) while engaged in hazardous service; 

‘‘(iii) in the performance of duty under conditions 

simulating war; or 

‘‘(iv) through an instrumentality of war; and 

‘‘(B) is rated as not less than 60 percent disabling—

‘‘(i) by the Secretary concerned, as of the date on 

which the member is retired from the uniformed services, under criteria prescribed by the Secretary of Defense; or 

‘‘(ii) by the Secretary of Veterans Affairs. 

‘‘(f) CONSTRUCTION WITH SPECIAL COMPENSATION FOR SEVERELY DISABLED UNIFORMED SERVICES RETIREES.—

‘‘(1) SINGLE SOURCE OF COMPENSATION.—An individual 

who is paid special compensation under this section may not receive special compensation under section 1413 of this title. 

‘‘(2) ELECTION OF SOURCE.—An individual who is eligible 

for special compensation under this section and special compensation under section 1413 of this title shall elect which special compensation to receive. 

‘‘(3) REGULATIONS.—The Secretary of Defense shall prescribe in regulations the manner and form of an election under 

this subsection. 

‘‘(g) STATUS OF PAYMENTS.—Payments under this section are 

not retired pay. 

‘‘(h) SOURCE OF PAYMENTS.—Payments under this section for 

any fiscal year shall be paid out of funds appropriated for pay and 

allowances payable by the Secretary concerned for that fiscal year. 

‘‘(i) OTHER DEFINITIONS.—In this section: 

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‘‘(1) The term ‘service-connected’ has the meaning given 

such term in section 101 of title 38. 

‘‘(2) The term ‘retired pay’ includes retainer pay, emergency 

officers’ retirement pay, and naval pension.’’. 

(2) Section 1413a of title 10, United States Code, as added by 

paragraph (1), shall take effect not later than 180 days after the 

date of the enactment of this Act. 

(3) The table of sections at the beginning of chapter 71 of such 

title is amended by inserting after the item relating to section 1413 

the following new item:

‘‘1413a. Special compensation for certain combat-related disabled uniformed services 

retirees.’’.

(b) SPECIAL COMPENSATION FOR CERTAIN SEVERELY DISABLED

UNIFORMED SERVICES RETIREES.—Section 1413 of title 10, United 

States Code, is amended—

(1) by redesignating subsections (e), (f) and (g) as subsections (f), (g), and (h), respectively; and 

(2) by inserting after subsection (d) the following new subsection (e): 

‘‘(e) CONSTRUCTION WITH SPECIAL COMPENSATION FOR COMBATDISABLED UNIFORMED SERVICES RETIREES.—(1) An individual who 

is paid special compensation under this section may not receive special compensation under section 1413a of this title. 

‘‘(2) An individual who is eligible for special compensation 

under this section and special compensation under section 1413a of 

this title shall elect which special compensation to receive. 

‘‘(3) The Secretary of Defense shall prescribe in regulations the 

manner and form of an election under this subsection.’’.

Subtitle E—Montgomery GI Bill

SEC. 641. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL ENTITLEMENT BY MEMBERS OF THE SELECTED RESERVE. 

(a) EXTENSION OF LIMITATION PERIOD.—Section 16133(a)(1) of 

title 10, United States Code, is amended by striking ‘‘10-year’’ and 

inserting ‘‘14-year’’. 

(b) EFFECTIVE DATE AND APPLICABILITY.—The amendment 

made by subsection (a) shall take effect on October 1, 2002, and 

shall apply with respect to periods of entitlement to educational assistance under chapter 1606 of title 10, United States Code, that 

begin on or after October 1, 1992.

SEC. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT 

MONTGOMERY GI BILL ARISING FROM FAILURE TO PARTICIPATE SATISFACTORILY IN MILITARY SERVICE TO BE 

CONSIDERED DEBTS OWED TO THE UNITED STATES. 

Section 16135 of title 10, United States Code, is amended by 

adding at the end the following new subsection: 

‘‘(c)(1) Subject to subsection (a)(2), an obligation to pay a refund 

to the United States under subsection (a)(1)(B) in an amount determined under subsection (b) is, for all purposes, a debt owed to the 

United States. 

‘‘(2) A discharge in bankruptcy under title 11 that is entered 

less than five years after the termination of an enlistment or other 

agreement under this section does not discharge the person signing 

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such enlistment or other agreement from a debt arising under the 

enlistment or agreement, respectively, under this subsection.’’.

SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN 

MEMBERS TO TRANSFER EDUCATIONAL ASSISTANCE 

UNDER MONTGOMERY GI BILL TO DEPENDENTS. 

(a) CLARIFICATION OF RATE OF EDUCATIONAL ASSISTANCE FOR

DEPENDENTS TO WHOM ENTITLEMENT IS TRANSFERRED.—Section 

3020(h) of title 38, United States Code, is amended—

(1) in paragraph (2)—

(A) by striking ‘‘paragraphs (4) and (5)’’ and inserting 

‘‘paragraphs (5) and (6)’’; and 

(B) by striking ‘‘and at the same rate’’; 

(2) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; and 

(3) by inserting after paragraph (2) the following new paragraph (3): 

‘‘(3)(A) Subject to subparagraph (B), the monthly rate of educational assistance payable to a dependent to whom entitlement is 

transferred under this section shall be the monthly amount payable 

under sections 3015 and 3022 of this title to the individual making 

the transfer. 

‘‘(B) The monthly rate of assistance payable to a dependent 

under subparagraph (A) shall be subject to the provisions of section 

3032 of this title, except that the provisions of subsection (a)(1) of 

that section shall not apply even if the individual making the transfer to the dependent under this section is on active duty during all 

or any part of enrollment period of the dependent in which such entitlement is used.’’. 

(b) SOURCE OF FUNDS FROM INCREASED USAGE.—Section 

3035(b) of such title is amended—

(1) in paragraph (1), by striking ‘‘paragraphs (2) and (3) of 

this subsection’’ and inserting ‘‘paragraphs (2), (3), and (4)’’; 

and 

(2) by adding at the end the following new paragraph: 

‘‘(4) Payments attributable to the increased usage of benefits as 

a result of transfers of entitlement to basic educational assistance 

under section 3020 of this title shall be made from the Department 

of Defense Education Benefits Fund established under section 2006 

of title 10 or from appropriations made to the Department of Transportation, as appropriate.’’. 

(c) EFFECTIVE DATE.—(1) The amendments made by subsection 

(a) shall take effect as if included in the enactment of section 3020 

of title 38, United States Code, by section 654(a)(1) of the National 

Defense Authorization Act for Fiscal Year 2002 (Public Law 107–

107; 115 Stat. 1153).

(2) The amendments made by subsection (b) shall take effect as 

if made by section 654 of the National Defense Authorization Act for 

Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1153).

Subtitle F—Other Matters

SEC. 651. PAYMENT OF INTEREST ON STUDENT LOANS. 

(a) AUTHORITY.—(1) Chapter 109 of title 10, United States 

Code, is amended by adding at the end the following new section: 

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‘‘§ 2174. Interest payment program: members on active duty 

‘‘(a) AUTHORITY.—(1) The Secretary concerned may pay in accordance with this section the interest and any special allowances 

that accrue on one or more student loans of an eligible member of 

the armed forces. 

‘‘(2) The Secretary of a military department may exercise the 

authority under paragraph (1) only if approved by the Secretary of 

Defense and subject to such requirements, conditions, and restrictions as the Secretary of Defense may prescribe. 

‘‘(b) ELIGIBLE MEMBERS.—A member of the armed forces is eligible for the benefit under subsection (a) while the member—

‘‘(1) is serving on active duty in fulfillment of the member’s 

first enlistment in the armed forces or, in the case of an officer, 

is serving on active duty and has not completed more than three 

years of service on active duty; 

‘‘(2) is the debtor on one or more unpaid loans described in 

subsection (c); and 

‘‘(3) is not in default on any such loan. 

‘‘(c) STUDENT LOANS.—The authority to make payments under 

subsection (a) may be exercised with respect to the following loans: 

‘‘(1) A loan made, insured, or guaranteed under part B of 

title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 

et seq.). 

‘‘(2) A loan made under part D of such title (20 U.S.C. 

1087a et seq.). 

‘‘(3) A loan made under part E of such title (20 U.S.C. 

1087aa et seq.). 

‘‘(d) MAXIMUM BENEFIT.—The months for which interest and 

any special allowance may be paid on behalf of a member of the 

armed forces under this section are any 36 consecutive months during which the member is eligible under subsection (b). 

‘‘(e) FUNDS FOR PAYMENTS.—Appropriations available for the 

pay and allowances of military personnel shall be available for payments under this section. 

‘‘(f) COORDINATION.—(1) The Secretary of Defense and, with respect to the Coast Guard when it is not operating as a service in 

the Navy, the Secretary of the Department in which the Coast 

Guard is operating shall consult with the Secretary of Education regarding the administration of the authority under this section. 

‘‘(2) The Secretary concerned shall transfer to the Secretary of 

Education the funds necessary—

‘‘(A) to pay interest and special allowances on student loans 

under this section (in accordance with sections 428(o), 455(l), 

and 464(j) of the Higher Education Act of 1965 (20 U.S.C. 

1078(o), 1087e(l), and 1087dd(j)); and 

‘‘(B) to reimburse the Secretary of Education for any reasonable administrative costs incurred by the Secretary in coordinating the program under this section with the administration of the student loan programs under parts B, D, and E of 

title IV of the Higher Education Act of 1965. 

‘‘(g) SPECIAL ALLOWANCE DEFINED.—In this section, the term 

‘special allowance’ means a special allowance that is payable under 

section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–

1).’’. 

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(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘2174. Interest payment program: members on active duty.’’.

(b) FEDERAL FAMILY EDUCATION LOANS AND DIRECT LOANS.—

(1) Subsection (c)(3) of section 428 of the Higher Education Act of 

1965 (20 U.S.C. 1078) is amended—

(A) in clause (i) of subparagraph (A)—

(i) by striking ‘‘or’’ at the end of subclause (II); 

(ii) by inserting ‘‘or’’ at the end of subclause (III); and 

(iii) by adding at the end the following new subclause: 

‘‘(IV) is eligible for interest payments to be 

made on such loan for service in the Armed Forces 

under section 2174 of title 10, United States Code, 

and, pursuant to that eligibility, the interest is 

being paid on such loan under subsection (o);’’; 

(B) in clause (ii)(II) of subparagraph (A), by inserting ‘‘or 

(IV)’’ after ‘‘clause (i)(II)’’; and 

(C) by striking subparagraph (C) and inserting the following: 

‘‘(C) shall contain provisions that specify that—

‘‘(i) the form of forbearance granted by the lender 

pursuant to this paragraph, other than subparagraph 

(A)(i)(IV), shall be temporary cessation of payments, 

unless the borrower selects forbearance in the form of 

an extension of time for making payments, or smaller 

payments than were previously scheduled; and 

‘‘(ii) the form of forbearance granted by the lender 

pursuant to subparagraph (A)(i)(IV) shall be the temporary cessation of all payments on the loan other than 

payments of interest on the loan that are made under 

subsection (o); and’’. 

(2) Section 428 of such Act is further amended by adding at the 

end the following new subsection: 

‘‘(o) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PROGRAM.—

‘‘(1) AUTHORITY.—Using funds received by transfer to the 

Secretary under section 2174 of title 10, United States Code, for 

the payment of interest and any special allowance on a loan to 

a member of the Armed Forces that is made, insured, or guaranteed under this part, the Secretary shall pay the interest and 

special allowance on such loan as due for a period not in excess 

of 36 consecutive months. The Secretary may not pay interest or 

any special allowance on such a loan out of any funds other 

than funds that have been so transferred. 

‘‘(2) FORBEARANCE.—During the period in which the Secretary is making payments on a loan under paragraph (1), the 

lender shall grant the borrower forbearance in accordance with 

the guaranty agreement under subsection (c)(3)(A)(i)(IV). 

‘‘(3) SPECIAL ALLOWANCE DEFINED.—For the purposes of 

this subsection, the term ‘special allowance’, means a special allowance that is payable with respect to a loan under section 

438.’’. 

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(c) FEDERAL DIRECT LOANS.—Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the 

end the following new subsection: 

‘‘(l) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PROGRAM.—

‘‘(1) AUTHORITY.—Using funds received by transfer to the 

Secretary under section 2174 of title 10, United States Code, for 

the payment of interest on a loan made under this part to a 

member of the Armed Forces, the Secretary shall pay the interest on the loan as due for a period not in excess of 36 consecutive months. The Secretary may not pay interest on such a loan 

out of any funds other than funds that have been so transferred. 

‘‘(2) FORBEARANCE.—During the period in which the Secretary is making payments on a loan under paragraph (1), the 

Secretary shall grant the borrower forbearance, in the form of 

a temporary cessation of all payments on the loan other than 

the payments of interest on the loan that are made under that 

paragraph.’’. 

(d) FEDERAL PERKINS LOANS.—Section 464 of the Higher Education Act of 1965 (20 U.S.C. 1087dd) is amended—

(1) in subsection (e)—

(A) by striking ‘‘or’’ at the end of paragraph (1); 

(B) by striking the period at the end of paragraph (2) 

and inserting ‘‘; or’’; and 

(C) by adding at the end the following new paragraph: 

‘‘(3) the borrower is eligible for interest payments to be 

made on such loan for service in the Armed Forces under section 2174 of title 10, United States Code, and, pursuant to that 

eligibility, the interest on such loan is being paid under subsection (j), except that the form of a forbearance under this 

paragraph shall be a temporary cessation of all payments on 

the loan other than payments of interest on the loan that are 

made under subsection (j).’’; and 

(2) by adding at the end the following new subsection: 

‘‘(j) ARMED FORCES STUDENT LOAN INTEREST PAYMENT PROGRAM.—

‘‘(1) AUTHORITY.—Using funds received by transfer to the 

Secretary under section 2174 of title 10, United States Code, for 

the payment of interest on a loan made under this part to a 

member of the Armed Forces, the Secretary shall pay the interest on the loan as due for a period not in excess of 36 consecutive months. The Secretary may not pay interest on such a loan 

out of any funds other than funds that have been so transferred. 

‘‘(2) FORBEARANCE.—During the period in which the Secretary is making payments on a loan under paragraph (1), the 

institution of higher education shall grant the borrower forbearance in accordance with subsection (e)(3).’’. 

(e) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to interest, and any special allowance 

under section 438 of the Higher Education Act of 1965, that accrue 

for months beginning on or after October 1, 2003, on student loans 

described in subsection (c) of section 2174 of title 10, United States 

Code (as added by subsection (a)), that were made before, on, or 

after such date to members of the Armed Forces who are on active 

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duty (as defined in section 101(d) of title 10, United States Code) 

on or after that date.

SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF MEMBERS OF THE ARMED FORCES. 

(a) AUTHORITY.—(1) Subchapter I of chapter 88 of title 10, 

United States Code, is amended by adding at the end the following 

new section: 

‘‘§ 1788. Additional family assistance 

‘‘(a) AUTHORITY.—The Secretary of Defense may provide for the 

families of members of the armed forces serving on active duty, in 

addition to any other assistance available for such families, any assistance that the Secretary considers appropriate to ensure that the 

children of such members obtain needed child care, education, and 

other youth services. 

‘‘(b) PRIMARY PURPOSE OF ASSISTANCE.—The assistance authorized by this section should be directed primarily toward providing 

needed family support, including child care, education, and other 

youth services, for children of members of the Armed Forces who are 

deployed, assigned to duty, or ordered to active duty in connection 

with a contingency operation.’’. 

(2) The table of sections at the beginning of such subchapter is 

amended by adding at the end the following new item:

‘‘1788. Additional family assistance.’’.

(b) EFFECTIVE DATE.—Section 1788 of title 10, United States 

Code, as added by subsection (a), shall take effect on October 1, 

2002.

SEC. 653. REPEAL OF AUTHORITY FOR ACCEPTANCE OF HONORARIA 

BY PERSONNEL AT CERTAIN DEPARTMENT OF DEFENSE 

SCHOOLS. 

(a) REPEAL OF EXEMPTION.—Section 542 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 

106 Stat. 2413; 10 U.S.C. prec. 2161 note) is repealed. 

(b) EFFECTIVE DATE.—The repeal made by subsection (a) shall 

apply with respect to appearances made, speeches presented, and articles published on or after October 1, 2002.

SEC. 654. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES 

IN TITLE 37. 

(a) DEFINITION.—Section 101(1) of title 37, United States Code, 

is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and 

(2) by adding at the end the following new subparagraph: 

‘‘(B) The term ‘continental United States’ means the 48 contiguous States and the District of Columbia.’’. 

(b) CONFORMING AMENDMENTS.—Title 37, United States Code, 

is amended as follows: 

(1) Section 314(a)(3) is amended by striking ‘‘the 48 contiguous States and the District of Columbia’’ and inserting ‘‘the 

continental United States’’. 

(2) Section 403b(i) is amended by striking paragraph (6). 

(3) Section 409 is amended by striking subsection (e). 

(4) Section 411b(a) is amended by striking ‘‘the 48 contiguous States and the District of Columbia’’ both places it appears and inserting ‘‘the continental United States’’. 

127

(5) Section 411d is amended by striking subsection (d). 

(6) Section 430 is amended by striking subsection (f) and 

inserting the following new subsection (f): 

‘‘(f) DEFINITIONS.—In this section: 

‘‘(1) The term ‘formal education’ means the following: 

‘‘(A) A secondary education. 

‘‘(B) An undergraduate college education. 

‘‘(C) A graduate education pursued on a full-time basis 

at an institution of higher education. 

‘‘(D) Vocational education pursued on a full-time basis 

at a postsecondary vocational institution. 

‘‘(2) The term ‘institution of higher education’ has the 

meaning given that term in section 101 of the Higher Education 

Act of 1965 (20 U.S.C. 1001). 

‘‘(3) The term ‘postsecondary vocational institution’ has the 

meaning given that term in section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 1002(c)).’’.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Health Care Program Improvements 

Sec. 701. Elimination of requirement for TRICARE preauthorization of inpatient 

mental health care for medicare-eligible beneficiaries. 

Sec. 702. Continued TRICARE eligibility of dependents residing at remote locations 

after departure of sponsors for unaccompanied assignments and eligibility of dependents of reserve component members ordered to active 

duty. 

Sec. 703. Eligibility of surviving dependents for TRICARE dental program benefits 

after discontinuance of former enrollment. 

Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care Fund. 

Sec. 705. Approval of medicare providers as TRICARE providers. 

Sec. 706. Technical corrections relating to transitional health care for members separated from active duty. 

Sec. 707. Extension of temporary authority to enter into personal services contracts 

for the performance of health care responsibilities at locations other 

than military medical treatment facilities. 

Sec. 708. Access to health care services for beneficiaries eligible for TRICARE and 

Department of Veterans Affairs health care. 

Sec. 709. Disclosure of information on Project 112 to Department of Veterans Affairs. 

Subtitle B—Reports 

Sec. 711. Claims information. 

Sec. 712. Comptroller General report on provision of care under the TRICARE program. 

Sec. 713. Repeal of report requirement. 

Subtitle C—Department of Defense-Department of Veterans Affairs Health 

Resources Sharing 

Sec. 721. Revised coordination and sharing guidelines. 

Sec. 722. Health care resources sharing and coordination project. 

Sec. 723. Report on improved coordination and sharing of health care and health 

care resources following domestic acts of terrorism or domestic use of 

weapons of mass destruction. 

Sec. 724. Interoperability of Department of Veterans Affairs and Department of Defense pharmacy data systems. 

Sec. 725. Joint pilot program for providing graduate medical education and training for physicians. 

Sec. 726. Repeal of certain limits on Department of Veterans Affairs resources.

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Subtitle A—Health Care Program 

Improvements 

SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE 

PREAUTHORIZATION OF INPATIENT MENTAL HEALTH 

CARE FOR MEDICARE-ELIGIBLE BENEFICIARIES. 

(a) ELIMINATION OF REQUIREMENT.—Section 1079(i)(3) of title 

10, United States Code, is amended— (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 

(2) by striking ‘‘Except in the case of an emergency,’’ and inserting ‘‘Except as provided in subparagraph (B),’’; and 

(3) by adding at the end the following new subparagraphs: ‘‘(B) Preadmission authorization for inpatient mental health 

services is not required under subparagraph (A) in the following 

cases: ‘‘(i) In the case of an emergency. 

‘‘(ii) In a case in which any benefits are payable for such 

services under part A of title XVIII of the Social Security Act 

(42 U.S.C. 1395c et seq.), subject to subparagraph (C). 

‘‘(C) In a case of inpatient mental health services to which subparagraph (B)(ii) applies, the Secretary shall require advance authorization for a continuation of the provision of such services after 

benefits cease to be payable for such services under such part A.’’. (b) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect October 1, 2003.

SEC. 702. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS RESIDING AT REMOTE LOCATIONS AFTER DEPARTURE OF SPONSORS FOR UNACCOMPANIED ASSIGNMENTS AND ELIGIBILITY OF DEPENDENTS OF RESERVE COMPONENT MEMBERS ORDERED TO ACTIVE DUTY. 

Section 1079(p) of title 10, United States Code, is amended— (1) in paragraph (1), by striking ‘‘dependents referred to in 

subsection (a) of a member of the uniformed services referred to 

in section 1074(c)(3) of this title who are residing with the member’’ and inserting ‘‘dependents described in paragraph (3)’’; 

(2) by redesignating paragraph (3) as paragraph (4); and 

(3) by inserting after paragraph (2) the following new paragraph (3): 

‘‘(3) This subsection applies with respect to a dependent referred 

to in subsection (a) who—

‘‘(A) is a dependent of a member of the uniformed services 

referred to in section 1074(c)(3) of this title and is residing with 

the member; 

‘‘(B) is a dependent of a member who, after having served 

in a duty assignment described in section 1074(c)(3) of this title, 

has relocated without the dependent pursuant to orders for a 

permanent change of duty station from a remote location described in subparagraph (B)(ii) of such section where the member and the dependent resided together while the member 

served in such assignment, if the orders do not authorize dependents to accompany the member to the new duty station at 

the expense of the United States and the dependent continues 

to reside at the same remote location, or 

‘‘(C) is a dependent of a reserve component member ordered 

to active duty for a period of more than 30 days and is residing 

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with the member, and the residence is located more than 50 

miles, or approximately one hour of driving time, from the nearest military medical treatment facility adequate to provide the 

needed care.’’.

SEC. 703. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE 

DENTAL PROGRAM BENEFITS AFTER DISCONTINUANCE 

OF FORMER ENROLLMENT. 

Section 1076a(k)(2) of title 10, United States Code, is amended 

by striking ‘‘if the dependent is enrolled on the date of the death of 

the member in a dental benefits plan established under subsection 

(a)’’ and inserting ‘‘if, on the date of the death of the member, the 

dependent is enrolled in a dental benefits plan established under 

subsection (a) or is not enrolled in such a plan by reason of a discontinuance of a former enrollment under subsection (f)’’.

SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE 

HEALTH CARE FUND. 

(a) SOURCE OF FUNDS FOR MONTHLY ACCRUAL PAYMENTS INTO

THE FUND.—Section 1116(c) of title 10, United States Code, is 

amended by striking ‘‘health care programs’’ and inserting ‘‘pay of 

members’’. (b) MANDATORY PARTICIPATION OF OTHER UNIFORMED SERV- ICES.—Section 1111(c) of such title is amended— (1) in the first sentence, by striking ‘‘may enter into an 

agreement with any other administering Secretary’’ and inserting ‘‘shall enter into an agreement with each other administering Secretary’’; and 

(2) in the second sentence, by striking ‘‘Any such’’ and inserting ‘‘The’’.

SEC. 705. APPROVAL OF MEDICARE PROVIDERS AS TRICARE PROVIDERS. 

(a) IN GENERAL.—Section 1079 of title 10, United States Code, 

is amended by adding at the end the following new subsection: ‘‘(q) Subject to subsection (a), a physician or other health care 

practitioner who is eligible to receive reimbursement for services 

provided under medicare (as defined in section 1086(d)(3)(C) of this 

title) shall be considered approved to provide medical care authorized under this section and section 1086 of this title unless the administering Secretaries have information indicating medicare, 

TRICARE, or other Federal health care program integrity violations 

by the physician or other health care practitioner.’’. (b) APPLICABILITY.—The amendment made by subsection (a) 

shall apply with respect to any contract under the TRICARE program entered into on or after the date of the enactment of this Act.

SEC. 706. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL 

HEALTH CARE FOR MEMBERS SEPARATED FROM ACTIVE 

DUTY. 

(a) CONTINUED APPLICABILITY TO DEPENDENTS.—Subsection 

(a)(1) of section 736 of the National Defense Authorization Act for 

Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1172) is amended 

to read as follows: 

‘‘(1) in paragraph (1), by striking ‘paragraph (2), a member’

and all that follows through ‘of the member),’ and inserting 

‘paragraph (3), a member of the armed forces who is separated 

from active duty as described in paragraph (2) (and the dependents of the member)’;’’. 

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(b) CLARIFICATION REGARDING THE COAST GUARD.—Subsection 

(b)(2) of such section is amended to read as follows: 

‘‘(2) in subsection (e)—

‘‘(A) by striking the first sentence; and 

‘‘(B) by striking ‘the Coast Guard’ in the second sentence and inserting ‘the members of the Coast Guard and 

their dependents’.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect as of December 28, 2001, and as if included in the 

National Defense Authorization Act for Fiscal Year 2002 as enacted.

SEC. 707. EXTENSION OF TEMPORARY AUTHORITY TO ENTER INTO 

PERSONAL SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE RESPONSIBILITIES AT LOCATIONS OTHER THAN MILITARY MEDICAL TREATMENT FACILITIES. 

Section 1091(a)(2) of title 10, United States Code, is amended 

by striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.

SEC. 708. ACCESS TO HEALTH CARE SERVICES FOR BENEFICIARIES ELIGIBLE FOR TRICARE AND DEPARTMENT OF VETERANS 

AFFAIRS HEALTH CARE. 

(a) REQUIREMENT TO ESTABLISH PROCESS.—(1) The Secretary 

of Defense shall prescribe in regulations a process for resolving 

issues relating to patient safety and continuity of care for covered 

beneficiaries who are concurrently entitled to health care under the 

TRICARE program and eligible for health care services provided by 

the Department of Veterans Affairs. The Secretary shall—

(A) ensure that the process provides for coordination of, and 

access to, health care from the two sources in a manner that 

prevents diminution of access to health care from either source; 

and 

(B) in consultation with the Secretary of Veterans Affairs, 

prescribe a clear definition of an ‘‘episode of care’’ for use in the 

resolution of patient safety and continuity of care issues under 

such process. 

(2) Not later than May 1, 2003, the Secretary shall submit to 

the Committees on Armed Services of the Senate and of the House 

of Representatives a report describing the process prescribed under 

paragraph (1). 

(3) While prescribing the process under paragraph (1) and upon 

completion of the report under paragraph (2), the Secretary shall 

provide to the Comptroller General information that would be relevant in carrying out the study required by subsection (b). 

(b) COMPTROLLER GENERAL STUDY AND REPORT.—(1) The 

Comptroller General shall conduct a study of the health care issues 

of covered beneficiaries described in subsection (a). The study shall 

include the following: 

(A) An analysis of whether covered beneficiaries who seek 

services through the Department of Veterans Affairs are receiving needed health care services in a timely manner from the Department of Veterans Affairs, as compared to the timeliness of 

the care available to covered beneficiaries under TRICARE 

Prime (as set forth in access to care standards under TRICARE 

program policy that are applicable to the care being sought). 

(B) An evaluation of the quality of care for covered beneficiaries who do not receive needed services from the DepartVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00154 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
131

ment of Veterans Affairs within a time period that is comparable to the time period provided for under such access to 

care standards and who then must seek alternative care under 

the TRICARE program. 

(C) Recommendations to improve access to, and timeliness 

and quality of, care for covered beneficiaries described in subsection (a). 

(D) An evaluation of the feasibility and advisability of making access to care standards applicable jointly under the 

TRICARE program and the Department of Veterans Affairs 

health care system. 

(E) A review of the process prescribed by the Secretary of 

Defense under subsection (a) to determine whether the process 

ensures the adequacy and quality of the health care services 

provided to covered beneficiaries under the TRICARE program 

and through the Department of Veterans Affairs, together with 

timeliness of access to such services and patient safety. 

(2) Not later than 60 days after the congressional committees 

specified in subsection (a)(2) receive the report required under that 

subsection, the Comptroller General shall submit to those committees a report on the study conducted under this subsection. 

(c) DEFINITIONS.—In this section: 

(1) The term ‘‘covered beneficiary’’ has the meaning provided by section 1072(5) of title 10, United States Code. 

(2) The term ‘‘TRICARE program’’ has the meaning provided by section 1072(7) of such title. 

(3) The term ‘‘TRICARE Prime’’ has the meaning provided 

by section 1097a(f) of such title.

SEC. 709. DISCLOSURE OF INFORMATION ON PROJECT 112 TO DEPARTMENT OF VETERANS AFFAIRS. 

(a) PLAN FOR DISCLOSURE OF INFORMATION.—Not later than 90 

days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress and the Secretary of Veterans Affairs 

a comprehensive plan for the review, declassification, and submittal 

to the Department of Veterans Affairs of all records and information 

of the Department of Defense on Project 112 that are relevant to the 

provision of benefits by the Secretary of Veterans Affairs to members 

of the Armed Forces who participated in that project. 

(b) PLAN REQUIREMENTS.—(1) The records and information covered by the plan under subsection (a) shall be the records and information necessary to permit the identification of members of the 

Armed Forces who were or may have been exposed to chemical or 

biological agents as a result of Project 112. 

(2) The plan shall provide for completion of all activities contemplated by the plan not later than one year after the date of the 

enactment of this Act. 

(c) IDENTIFICATION OF OTHER PROJECTS OR TESTS.—The Secretary of Defense also shall work with veterans and veterans service 

organizations to identify other projects or tests conducted by the Department of Defense that may have exposed members of the Armed 

Forces to chemical or biological agents. 

(d) GAO REPORTS ON PLAN AND IMPLEMENTATION.—(1) Not 

later than 30 days after submission of the plan under subsection (a), 

the Comptroller General shall submit to Congress a report reviewing 

the plan. The report shall include an examination of whether adeVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00155 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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quate resources have been committed, the timeliness of the information to be released to the Department of Veterans Affairs, and the 

adequacy of the procedures to notify affected veterans of potential 

exposure. 

(2) Not later than six months after implementation of the plan 

begins, the Comptroller General shall submit to Congress a report 

evaluating the progress in the implementation of the plan. 

(e) DOD REPORTS ON IMPLEMENTATION.—(1) Not later than six 

months after the date of the enactment of this Act, and upon completion of all activities contemplated by the plan under subsection 

(a), the Secretary of Defense shall submit to Congress and the Secretary of Veterans Affairs a report on progress in the implementation of the plan. 

(2) Each report under paragraph (1) shall include, for the period covered by such report—

(A) the number of records reviewed; 

(B) each test, if any, under Project 112 identified during 

such review; 

(C) for each test so identified—

(i) the test name; 

(ii) the test objective; 

(iii) the chemical or biological agent or agents involved; 

and 

(iv) the number of members of the Armed Forces, and 

civilian personnel, potentially effected by such test; and 

(D) the extent of submittal of records and information to 

the Secretary of Veterans Affairs under this section. 

(f) PROJECT 112.—For purposes of this section, Project 112 refers to the chemical and biological weapons vulnerability-testing 

program of the Department of Defense conducted by the Deseret Test 

Center from 1963 to 1969. The project included the Shipboard Hazard and Defense (SHAD) project of the Navy.

Subtitle B—Reports 

SEC. 711. CLAIMS INFORMATION. 

(a) CORRESPONDENCE TO MEDICARE CLAIMS INFORMATION REQUIREMENTS.—Section 1095c of title 10, United States Code, is 

amended by adding at the end the following new subsection:

‘‘(d) CORRESPONDENCE TO MEDICARE CLAIMS INFORMATION REQUIREMENTS.—The Secretary of Defense, in consultation with the 

other administering Secretaries, shall limit the information required 

in support of claims for payment for health care items and services 

provided under the TRICARE program to that information that is 

identical to the information that would be required for claims for 

reimbursement for those items and services under title XVIII of the 

Social Security Act (42 U.S.C. 1395 et seq.) except for that information, if any, that is uniquely required by the TRICARE program. 

The Secretary of Defense shall report to the Committee on Armed 

Services of the Senate and the Committee on Armed Services of the 

House of Representatives any information that is excepted under 

this provision, and the justification for that exception.’’. (b) APPLICABILITY.—The Secretary of Defense, in consultation 

with the other administering Secretaries referred to in section 

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1072(3) of title 10, United States Code, shall apply the limitations 

required under subsection (d) of section 1095c of such title (as 

added by subsection (a)) with respect to contracts entered into under 

the TRICARE program on or after October 1, 2002. 

(c) COMPTROLLER GENERAL REPORT ON TRICARE CLAIMS

PROCESSING.—Not later than March 31, 2003, the Comptroller General shall submit to Congress an evaluation of the continuing impediments to cost effective claims processing under the TRICARE 

program. The evaluation shall include a discussion of the following: 

(1) The extent of progress implementing improvements in 

claims processing, particularly regarding the application of best 

industry practices. 

(2) The extent of progress in simplifying claims processing 

procedures, including the elimination of, or reduction in, the 

complexity of the Health Care Service Record requirements. 

(3) The cost effectiveness of the data collection and fraud 

prevention capabilities of existing claims processing practices. 

(4) Recommendations for improving the claims processing 

system that will reduce processing and administration costs, 

create greater competition, and improve fraud-prevention activities.

SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF CARE 

UNDER THE TRICARE PROGRAM. 

Not later than March 31, 2003, the Comptroller General shall 

submit to Congress an evaluation of the nature of, reasons for, extent of, and trends regarding network provider instability under the 

TRICARE program, and the effectiveness of efforts by the Department of Defense and managed care support contractors to measure 

and mitigate such instability. The evaluation shall include a discussion of the following: 

(1) The adequacy of measurement tools of TRICARE network instability and their use by the Department of Defense 

and managed care support contractors to assess network adequacy and stability. 

(2) Recommendations for improvements needed in measurement tools or their application. 

(3) The relationship of reimbursement rates and administration requirements (including preauthorization requirements) 

to TRICARE network instability. 

(4) The extent of problems under the TRICARE program 

and likely future trends with and without intervention using existing authority. 

(5) Use of existing authority by the Department of Defense 

and TRICARE managed care support contractors to apply higher reimbursement rates in specific geographic areas. 

(6) Recommendations for specific fiscally prudent measures 

that could mitigate negative trends or improve provider and 

network stability.

SEC. 713. REPEAL OF REPORT REQUIREMENT. 

Notwithstanding subsection (f)(2) of section 712 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–179), the 

amendment made by subsection (e) of such section shall not take effect and the paragraph amended by such subsection is repealed.

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Subtitle C—Department of Defense-Department of Veterans Affairs Health Resources Sharing 

SEC. 721. REVISED COORDINATION AND SHARING GUIDELINES. 

(a) IN GENERAL.—(1) Section 8111 of title 38, United States 

Code, is amended to read as follows: 

‘‘§ 8111. Sharing of Department of Veterans Affairs and Department of Defense health care resources 

‘‘(a) REQUIRED COORDINATION AND SHARING OF HEALTH CARE

RESOURCES.—The Secretary of Veterans Affairs and the Secretary of 

Defense shall enter into agreements and contracts for the mutually 

beneficial coordination, use, or exchange of use of the health care resources of the Department of Veterans Affairs and the Department 

of Defense with the goal of improving the access to, and quality and 

cost effectiveness of, the health care provided by the Veterans Health 

Administration and the Military Health System to the beneficiaries 

of both Departments. 

‘‘(b) JOINT REQUIREMENTS FOR SECRETARIES OF VETERANS AFFAIRS AND DEFENSE.—To facilitate the mutually beneficial coordination, use, or exchange of use of the health care resources of the 

two Departments, the two Secretaries shall carry out the following 

functions: 

‘‘(1) Develop and publish a joint strategic vision statement 

and a joint strategic plan to shape, focus, and prioritize the coordination and sharing efforts among appropriate elements of 

the two Departments and incorporate the goals and requirements of the joint sharing plan into the strategic and performance plan of each Department under the Government Performance and Results Act. 

‘‘(2) Jointly fund the interagency committee provided for 

under subsection (c). 

‘‘(3) Continue to facilitate and improve sharing between individual Department of Veterans Affairs and Department of Defense health care facilities, but giving priority of effort to initiatives (A) that improve sharing and coordination of health resources at the intraregional and nationwide levels, and (B) that 

improve the ability of both Departments to provide coordinated 

health care. 

‘‘(4) Establish a joint incentive program under subsection 

(d). 

‘‘(c) DOD–VA HEALTH EXECUTIVE COMMITTEE.—(1) There is established an interagency committee to be known as the Department 

of Veterans Affairs-Department of Defense Health Executive Committee (hereinafter in this section referred to as the ‘Committee’). 

The Committee is composed of—

‘‘(A) the Deputy Secretary of Veterans Affairs and such 

other officers and employees of the Department of Veterans Affairs as the Secretary of Veterans Affairs may designate; and 

‘‘(B) the Under Secretary of Defense for Personnel and 

Readiness and such other officers and employees of the Department of Defense as the Secretary of Defense may designate. 

135

‘‘(2)(A) During odd-numbered fiscal years, the Deputy Secretary 

of Veterans Affairs shall chair the Committee. During even-numbered fiscal years, the Under Secretary of Defense shall chair the 

Committee. ‘‘(B) The Deputy Secretary and the Under Secretary shall determine the size and structure of the Committee, as well as the administrative and procedural guidelines for the operation of the Committee. The two Departments shall share equally the Committee’s 

cost of personnel and administrative support and services. Support 

for such purposes shall be provided at a level sufficient for the efficient operation of the Committee, including a permanent staff and, 

as required, other temporary working groups of appropriate departmental staff and outside experts. ‘‘(3) The Committee shall recommend to the Secretaries strategic 

direction for the joint coordination and sharing efforts between and 

within the two Departments under this section and shall oversee implementation of those efforts. ‘‘(4) The Committee shall submit to the two Secretaries and to 

Congress an annual report containing such recommendations as the 

Committee considers appropriate. ‘‘(5) In order to enable the Committee to make recommendations 

in its annual report under paragraph (4), the Committee shall do 

the following: ‘‘(A) Review existing policies, procedures, and practices relating to the coordination and sharing of health care resources 

between the two Departments. ‘‘(B) Identify changes in policies, procedures, and practices 

that, in the judgment of the Committee, would promote mutually beneficial coordination, use, or exchange of use of the 

health care resources of the two Departments, with the goal of 

improving the access to, and quality and cost effectiveness of, 

the health care provided by the Veterans Health Administration 

and the Military Health System to the beneficiaries of both Departments. 

‘‘(C) Identify and assess further opportunities for the coordination and sharing of health care resources between the Departments that, in the judgment of the Committee, would not adversely affect the range of services, the quality of care, or the established priorities for care provided by either Department. 

‘‘(D) Review the plans of both Departments for the acquisition of additional health care resources, especially new facilities 

and major equipment and technology, in order to assess the potential effect of such plans on further opportunities for the coordination and sharing of health care resources.

‘‘(E) Review the implementation of activities designed to 

promote the coordination and sharing of health care resources 

between the Departments. 

‘‘(6) The Committee chairman, under procedures jointly developed by the two Secretaries, may require the Inspector General of either or both Departments to assist in activities under paragraph 

(5)(E). 

‘‘(d) JOINT INCENTIVES PROGRAM.—(1) Pursuant to subsection 

(b)(4), the two Secretaries shall carry out a program to identify, provide incentives to, implement, fund, and evaluate creative coordination and sharing initiatives at the facility, intraregional, and naVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00159 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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tionwide levels. The program shall be administered by the Committee established in subsection (c), under procedures jointly prescribed by the two Secretaries. ‘‘(2) To facilitate the incentive program, effective October 1, 

2003, there is established in the Treasury a fund to be known as 

the ‘DOD–VA Health Care Sharing Incentive Fund’. Each Secretary shall annually contribute to the fund a minimum of $15,000,000 

from the funds appropriated to that Secretary’s Department. Such 

funds shall remain available until expended. ‘‘(3)(A) For each fiscal year during which the program under 

this subsection is in effect, the Comptroller General shall conduct a 

review of the implementation and effectiveness of the incentives program under this subsection. Upon completion of each such annual 

review, the Comptroller General shall submit to the Committees on 

Armed Services and Veterans’ Affairs of the Senate and House of 

Representatives a report on the results of that review. Each such report shall be submitted not later than February 28 of the year following the fiscal year covered by the report. In addition, the Comptroller General shall conduct such a review during the first five 

months of fiscal year 2004 and, not later than February 28, 2004, 

shall submit to those committees a report on the implementation 

and effectiveness of the incentives program under this subsection to 

that date. ‘‘(B) Each report under this paragraph shall describe activities 

carried out under the program under this subsection during the preceding fiscal year (or, in the case of the first such report, to the date 

of the submission of the report). Each report shall include at least 

the following: ‘‘(i) An analysis of the initiatives funded by the Committee, 

and the funds so expended by such initiatives, from the DOD– VA Health Care Sharing Incentive Fund, including the purposes and effects of those initiatives on improving access to care 

by beneficiaries, improvements in the quality of care received by 

those beneficiaries, and efficiencies gained in delivering services 

to those beneficiaries. 

‘‘(ii) Other matters of interest, including recommendations 

from the Comptroller General for legislative improvements to 

the program. 

‘‘(4) The program under this subsection shall terminate on September 30, 2007. 

‘‘(e) GUIDELINES AND POLICIES FOR IMPLEMENTATION OF COORDINATION AND SHARING RECOMMENDATIONS, CONTRACTS, AND

AGREEMENTS.—(1) To implement the recommendations made by the 

Committee under subsection (c)(2), as well as to carry out other 

health care contracts and agreements for coordination and sharing 

initiatives as they consider appropriate, the two Secretaries shall 

jointly issue guidelines and policy directives. Such guidelines and 

policies shall provide for coordination and sharing that—

‘‘(A) is consistent with the health care responsibilities of the 

Department of Veterans Affairs under this title and with the 

health care responsibilities of the Department of Defense under 

chapter 55 of title 10; ‘‘(B) will not adversely affect the range of services, the quality of care, or the established priorities for care provided by either Department; and 

137

‘‘(C) will not reduce capacities in certain specialized programs of the Department of Veterans Affairs that the Secretary 

is required to maintain in accordance with section 1706(b) of 

this title. 

‘‘(2) To facilitate the sharing and coordination of health care 

services between the two Departments, the two Secretaries shall 

jointly develop and implement guidelines for a standardized, uniform payment and reimbursement schedule for those services. Such 

schedule shall be implemented no later than October 1, 2003, and 

shall be revised periodically as necessary. The two Secretaries, following implementation of the schedule, may on a case-by-case basis 

waive elements of the schedule if they jointly agree that such a 

waiver is in the best interests of both Departments. ‘‘(3)(A) The guidelines established under paragraph (1) shall 

authorize the heads of individual Department of Defense and Department of Veterans Affairs medical facilities and service regions 

to enter into health care resources coordination and sharing agreements. ‘‘(B) Under any such agreement, an individual who is a primary beneficiary of one Department may be provided health care, 

as provided in the agreement, at a facility or in the service region 

of the other Department that is a party to the sharing agreement. ‘‘(C) Each such agreement shall identify the health care resources to be shared. ‘‘(D) Each such agreement shall provide, and shall specify procedures designed to ensure, that the availability of direct health 

care to individuals who are not primary beneficiaries of the providing Department is (i) on a referral basis from the facility or service region of the other Department, and (ii) does not (as determined 

by the head of the providing facility or region) adversely affect the 

range of services, the quality of care, or the established priorities for 

care provided to the primary beneficiaries of the providing Department. ‘‘(E) Each such agreement shall provide that a providing Department or service region shall be reimbursed for the cost of the 

health care resources provided under the agreement and that the 

rate of such reimbursement shall be as determined in accordance 

with paragraph (2). 

‘‘(F) Each proposal for an agreement under this paragraph 

shall be effective (i) on the 46th day after the receipt of such proposal by the Committee, unless earlier disapproved, or (ii) if earlier 

approved by the Committee, on the date of such approval. 

‘‘(G) Any funds received through such a uniform payment and 

reimbursement schedule shall be credited to funds that have been 

allotted to the facility of either Department that provided the care 

or services, or is due the funds from, any such agreement. 

‘‘(f) ANNUAL JOINT REPORT.—(1) At the time the President’s 

budget is transmitted to Congress in any year pursuant to section 

1105 of title 31, the two Secretaries shall submit to Congress a joint 

report on health care coordination and sharing activities under this 

section during the fiscal year that ended during the previous calendar year. ‘‘(2) Each report under this section shall include the following: ‘‘(A) The guidelines prescribed under subsection (e) (and 

any revision of such guidelines). 

138

‘‘(B) The assessment of further opportunities identified 

under subparagraph (C) of subsection (c)(5) for the sharing of 

health-care resources between the two Departments. ‘‘(C) Any recommendation made under subsection (c)(4) 

during such fiscal year. ‘‘(D) A review of the sharing agreements entered into under 

subsection (e) and a summary of activities under such agreements during such fiscal year and a description of the results 

of such agreements in improving access to, and the quality and 

cost effectiveness of, the health care provided by the Veterans 

Health Administration and the Military Health System to the 

beneficiaries of both Departments. ‘‘(E) A summary of other planning and activities involving 

either Department in connection with promoting the coordination and sharing of Federal health-care resources during the 

preceding fiscal year. ‘‘(F) Such recommendations for legislation as the two Secretaries consider appropriate to facilitate the sharing of healthcare resources between the two Departments. 

‘‘(3) In addition to the matters specified in paragraph (2), the 

two Secretaries shall include in the annual report under this subsection an overall status report of the progress of health resources 

sharing between the two Departments as a consequence of subtitle 

C of title VII of the Bob Stump National Defense Authorization Act 

for Fiscal Year 2003 and of other sharing initiatives taken during 

the period covered by the report. Such status report shall indicate 

the status of such sharing and shall include appropriate data as 

well as analyses of that data. The annual report shall include the 

following: ‘‘(A) Enumerations and explanations of major policy decisions reached by the two Secretaries during the period covered 

by the report period with respect to sharing between the two Departments. ‘‘(B) A description of progress made in new ventures or particular areas of sharing and coordination that would be of policy interest to Congress consistent with the intent of such subtitle. 

‘‘(C) A description of enhancements of access to care of 

beneficiaries of both Departments that came about as a result 

of new sharing approaches brought about by such subtitle. 

‘‘(D) A description of proposals for which funds are provided through the joint incentives program under subsection 

(d), together with a description of their results or status at the 

time of the report, including access improvements, savings, and 

quality-of-care enhancements they brought about, and a description of any additional use of funds made available under 

subsection (d). 

‘‘(4) In addition to the matters specified in paragraphs (2) and 

(3), the two Secretaries shall include in the annual report under this 

subsection for each year through 2008 the following:

‘‘(A) A description of the measures taken, or planned to be 

taken, to implement the health resources sharing project under 

section 722 of the Bob Stump National Defense Authorization 

Act for Fiscal Year 2003 and any cost savings anticipated, or 

cost sharing achieved, at facilities participating in the project, 

139

including information on improvements in access to care, quality, and timeliness, as well as impediments encountered and 

legislative recommendations to ameliorate such impediments. ‘‘(B) A description of the use of the waiver authority provided by section 722(d)(1) of the Bob Stump National Defense 

Authorization Act for Fiscal Year 2003, including— ‘‘(i) a statement of the numbers and types of requests 

for waivers under that section of administrative policies 

that have been made during the period covered by the report and, for each such request, an explanation of the content of each request, the intended purpose or result of the 

requested waiver, and the disposition of each request; and ‘‘(ii) descriptions of any new administrative policies 

that enhance the success of the project. ‘‘(5) In addition to the matters specified in paragraphs (2), (3), 

and (4), the two Secretaries shall include in the annual report 

under this subsection for each year through 2009 a report on the 

pilot program for graduate medical education under section 725 of 

the Bob Stump National Defense Authorization Act for Fiscal Year 

2003, including activities under the program during the preceding 

year and each Secretary’s assessment of the efficacy of providing 

education and training under that program. ‘‘(g) DEFINITIONS.—For the purposes of this section: ‘‘(1) The term ‘beneficiary’ means a person who is a primary 

beneficiary of the Department of Veterans Affairs or of the Department of Defense. ‘‘(2) The term ‘direct health care’ means health care provided to a beneficiary in a medical facility operated by the Department of Veterans Affairs or the Department of Defense. ‘‘(3) The term ‘head of a medical facility’ (A) with respect 

to a medical facility of the Department of Veterans Affairs, 

means the director of the facility, and (B) with respect to a medical facility of the Department of Defense, means the medical or 

dental officer in charge or the contract surgeon in charge. 

‘‘(4) The term ‘health-care resource’ includes hospital care, 

medical services, and rehabilitative services, as those terms are 

defined in paragraphs (5), (6), and (8), respectively, of section 

1701 of this title, services under sections 1782 and 1783 of this 

title, any other health-care service, and any health-care support 

or administrative resource. 

‘‘(5) The term ‘primary beneficiary’ (A) with respect to the 

Department means a person who is eligible under this title 

(other than under section 1782, 1783, or 1784 or subsection (d) 

of this section) or any other provision of law for care or services 

in Department medical facilities, and (B) with respect to the Department of Defense, means a member or former member of the 

Armed Forces who is eligible for care under section 1074 of title 

10. 

‘‘(6) The term ‘providing Department’ means the Department of Veterans Affairs, in the case of care or services furnished by a facility of the Department of Veterans Affairs, and 

the Department of Defense, in the case of care or services furnished by a facility of the Department of Defense. 

‘‘(7) The term ‘service region’ means a geographic service 

area of the Veterans Health Administration, in the case of the 

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Department of Veterans Affairs, and a service region, in the 

case of the Department of Defense.’’. 

(2) The item relating to that section in the table of sections at 

the beginning of chapter 81 of title 38, United States Code, is 

amended to read as follows:

‘‘8111. Sharing of Department of Veterans Affairs and Department of Defense health 

care resources.’’.

(b) CONFORMING AMENDMENT.—Section 1104(a) of title 10, 

United States Code, is amended by striking ‘‘may’’ and inserting 

‘‘shall’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on October 1, 2003.

SEC. 722. HEALTH CARE RESOURCES SHARING AND COORDINATION 

PROJECT. 

(a) ESTABLISHMENT.—(1) The Secretary of Veterans Affairs and 

the Secretary of Defense shall conduct a health care resources sharing project to serve as a test for evaluating the feasibility, and the 

advantages and disadvantages, of measures and programs designed 

to improve the sharing and coordination of health care and health 

care resources between the Department of Veterans Affairs and the 

Department of Defense. The project shall be carried out, as a minimum, at the sites identified under subsection (b). 

(2) Reimbursement between the two Departments with respect to 

the project under this section shall be made in accordance with the 

provisions of section 8111(e)(2) of title 38, United States Code, as 

amended by section 721(a). 

(b) SITE IDENTIFICATION.—(1) Not later than 90 days after the 

date of the enactment of this Act, the Secretaries shall jointly identify not less than three sites for the conduct of the project under this 

section. 

(2) For purposes of this section, a site at which the resource 

sharing project shall be carried out is an area in the United States 

in which—

(A) one or more military treatment facilities and one or 

more VA health care facilities are situated in relative proximity 

to each other, including facilities engaged in joint ventures as 

of the date of the enactment of this Act; and 

(B) for which an agreement to coordinate care and programs for patients at those facilities could be implemented not 

later than October 1, 2004. 

(c) CONDUCT OF PROJECT.—(1) At sites at which the project is 

conducted, the Secretaries shall provide a test of a coordinated management system for the military treatment facilities and VA health 

care facilities participating in the project. Such a coordinated management system for a site shall include at least one of the elements 

specified in paragraph (2), and each of the elements specified in that 

paragraph must be included in the coordinated management system 

for at least one of the participating sites. 

(2) Elements of a coordinated management system referred to in 

paragraph (1) are the following: 

(A) A budget and financial management system for those 

facilities that—

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(i) provides managers with information about the costs 

of providing health care by both Departments at the site; 

and 

(ii) allows managers to assess the advantages and disadvantages (in terms of relative costs, benefits, and opportunities) of using resources of either Department to provide 

or enhance health care to beneficiaries of either Department. 

(B) A coordinated staffing and assignment system for the 

personnel (including contract personnel) employed at or assigned to those facilities, including clinical practitioners of either Department. 

(C) Medical information and information technology systems for those facilities that—

(i) are compatible with the purposes of the project; 

(ii) communicate with medical information and information technology systems of corresponding elements of 

those facilities; and 

(iii) incorporate minimum standards of information 

quality that are at least equivalent to those adopted for the 

Departments at large in their separate health care systems. 

(d) AUTHORITY TO WAIVE CERTAIN ADMINISTRATIVE POLICIES.—

(1)(A) In order to carry out subsection (c), the Secretary of Defense 

may, in the Secretary’s discretion, waive any administrative policy 

of the Department of Defense otherwise applicable to that subsection 

that specifically conflicts with the purposes of the project, in instances in which the Secretary determines that the waiver is necessary for the purposes of the project. 

(B) In order to carry out subsection (c), the Secretary of Veterans Affairs may, in the Secretary’s discretion, waive any administrative policy of the Department of Veterans Affairs otherwise applicable to that subsection that specifically conflicts with the purposes 

of the project, in instances in which the Secretary determines that 

the waiver is necessary for the purposes of the project. 

(C) The two Secretaries shall establish procedures for resolving 

disputes that may arise from the effects of policy changes that are 

not covered by other agreements or existing procedures. 

(2) No waiver under paragraph (1) may alter any labor-management agreement in effect as of the date of the enactment of this 

Act or adopted by either Department during the period of the 

project. 

(e) USE BY DOD OF CERTAIN TITLE 38 PERSONNEL AUTHORITIES.—(1) In order to carry out subsection (c), the Secretary of Defense may apply to civilian personnel of the Department of Defense 

assigned to or employed at a military treatment facility participating in the project any of the provisions of subchapters I, III, and 

IV of chapter 74 of title 38, United States Code, determined appropriate by the Secretary. 

(2) For purposes of paragraph (1), any reference in chapter 74 

of title 38, United States Code—

(A) to the ‘‘Secretary’’ or the ‘‘Under Secretary for Health’’

shall be treated as referring to the Secretary of Defense; and 

(B) to the ‘‘Veterans Health Administration’’ shall be treated as referring to the Department of Defense. 

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(f) FUNDING.—From amounts available for health care for a fiscal year, each Secretary shall make available to carry out the project 

not less than—

(1) $3,000,000 for fiscal year 2003; 

(2) $6,000,000 for fiscal year 2004; and

(3) $9,000,000 for each succeeding year during which the 

project is in effect. 

(g) DEFINITIONS.—For purposes of this section: 

(1) The term ‘‘military treatment facility’’ means a medical 

facility under the jurisdiction of the Secretary of a military department. 

(2) The term ‘‘VA health care facility’’ means a facility 

under the jurisdiction of the Veterans Health Administration of 

the Department of Veterans Affairs. 

(h) PERFORMANCE REVIEW.—(1) The Comptroller General shall 

provide for an annual on-site review at each of the project locations 

selected by the Secretaries under this section. 

(2) Not later than 90 days after completion of the annual review 

under paragraph (1), the Comptroller General shall submit a report 

on such review to the Committees on Armed Services and Veterans’

Affairs of the Senate and House of Representatives. 

(3) Each such report shall include the following: 

(A) The strategic mission coordination between shared activities. 

(B) The accuracy and validity of performance data used to 

evaluate sharing performance and changes in standards of care 

or services at the shared facilities. 

(C) A statement that all appropriated funds designated for 

sharing activities are being used for direct support of sharing 

initiatives. 

(D) Recommendations concerning continuance of the project 

at each site for the succeeding 12-month period. 

(4) Whenever there is a recommendation under paragraph 

(3)(D) to discontinue a resource sharing project under this section, 

the two Secretaries shall act upon that recommendation as soon as 

practicable. 

(5) In the initial report under this subsection, the Comptroller 

General shall validate the baseline information used for comparative analysis. 

(i) TERMINATION.—(1) The project, and the authority provided 

by this section, shall terminate on September 30, 2007. 

(2) The two Secretaries jointly may terminate the performance 

of the project at any site when the performance of the project at that 

site fails to meet performance expectations of the Secretaries, based 

on recommendations from the Comptroller General under subsection 

(h) or on other information available to the Secretaries to warrant 

such action. 

SEC. 723. REPORT ON IMPROVED COORDINATION AND SHARING OF 

HEALTH CARE AND HEALTH CARE RESOURCES FOLLOWING DOMESTIC ACTS OF TERRORISM OR DOMESTIC 

USE OF WEAPONS OF MASS DESTRUCTION. 

(a) JOINT REVIEW.—The Secretary of Defense and the Secretary 

of Veterans Affairs shall jointly review the adequacy of current processes and existing statutory authorities and policy governing the capability of the Department of Defense and the Department of VetVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00166 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
143

erans Affairs to provide health care to members of the Armed Forces 

following domestic acts of terrorism or domestic use of weapons of 

mass destruction, both before and after any declaration of national 

emergency. Such review shall include a determination of the adequacy of current authorities in providing for the coordination and 

sharing of health care resources between the two Departments in 

such cases, particularly before the declaration of a national emergency. 

(b) REPORT TO CONGRESS.—The two Secretaries shall include a 

joint report on the review under subsection (a), including any recommended legislative changes, shall be submitted to Congress as 

part of the fiscal year 2004 budget submission to Congress. 

SEC. 724. INTEROPERABILITY OF DEPARTMENT OF VETERANS AFFAIRS 

AND DEPARTMENT OF DEFENSE PHARMACY DATA SYSTEMS. 

(a) INTEROPERABILITY.—The Secretary of Veterans Affairs and 

the Secretary of Defense shall seek to ensure that on or before October 1, 2004, the Department of Veterans Affairs pharmacy data system and the Department of Defense pharmacy data system (known 

as the ‘‘Pharmacy Data Transaction System’’) are interoperable for 

both Department of Defense beneficiaries and Department of Veterans Affairs beneficiaries by achieving real-time interface, data exchange, and checking of prescription drug data of outpatients, and 

using national standards for the exchange of outpatient medication 

information. 

(b) ALTERNATIVE REQUIREMENT.—If the interoperability specified in subsection (a) is not achieved by October 1, 2004, as determined jointly by the Secretary of Defense and the Secretary of Veterans Affairs, the Secretary of Veterans Affairs shall adopt the Department of Defense Pharmacy Data Transaction System for use by 

the Department of Veterans Affairs health care system. Such system 

shall be fully operational not later than October 1, 2005. 

(c) IMPLEMENTATION FUNDING FOR ALTERNATIVE REQUIRE- MENT.—The Secretary of Defense shall transfer to the Secretary of 

Veterans Affairs, or shall otherwise bear the cost of, an amount sufficient to cover three-fourths of the cost to the Department of Veterans Affairs for computer programming activities and relevant 

staff training expenses related to implementation of subsection (b). 

Such amount shall be determined in such manner as agreed to by 

the two Secretaries. 

SEC. 725. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL EDUCATION AND TRAINING FOR PHYSICIANS. 

(a) IN GENERAL.—The Secretary of Defense and the Secretary of 

Veterans Affairs shall jointly carry out a pilot program under which 

graduate medical education and training is provided to military 

physicians and physician employees of the Department of Defense 

and the Department of Veterans Affairs through one or more programs carried out in military medical treatment facilities of the Department of Defense and medical centers of the Department of Veterans Affairs. The pilot program shall begin not later than January 

1, 2003. 

(b) COST-SHARING AGREEMENT.—The Secretaries shall enter 

into an agreement for carrying out the pilot program. The agreement shall establish means for each Secretary to assist in paying 

the costs, with respect to individuals under the jurisdiction of that 

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Secretary, incurred by the other Secretary in providing medical education and training under the pilot program. 

(c) USE OF EXISTING AUTHORITIES.—To carry out the pilot program, the Secretary of Defense and the Secretary of Veterans Affairs 

may use authorities provided to them under this subtitle, section 

8111 of title 38, United States Code (as amended by section 721(a)), 

and other laws relating to the furnishing or support of medical education and the cooperative use of facilities. 

(d) TERMINATION OF PROGRAM.—The pilot program under this 

section shall terminate on July 31, 2008. 

(e) REPEAL OF SUPERSEDED PROVISION.—Section 738 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 

107–107; 10 U.S.C. 1094 note; 115 Stat.1173) is repealed. 

SEC. 726. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS 

AFFAIRS RESOURCES. 

(a) REPEAL OF VA BED LIMITS.—Section 8110(a)(1) of title 38, 

United States Code, is amended— (1) in the first sentence, by striking ‘‘at not more than 

125,000 and not less than 100,000’’; 

(2) in the third sentence, by striking ‘‘shall operate and 

maintain a total of not less than 90,000 hospital beds and nursing home beds and’’; and 

(3) in the fourth sentence, by striking ‘‘to enable the Department to operate and maintain a total of not less than 90,000 

hospital and nursing home beds in accordance with this paragraph and’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect on October 1, 2003.

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

Subtitle A—Acquisition Policy and Management 

Sec. 801. Buy-to-budget acquisition of end items. 

Sec. 802. Report to Congress on evolutionary acquisition of major defense acquisition programs. 

Sec. 803. Spiral development under major defense acquisition programs. 

Sec. 804. Improvement of software acquisition processes. 

Sec. 805. Performance goals for procuring services pursuant to multiple award contracts. 

Sec. 806. Rapid acquisition and deployment procedures. 

Sec. 807. Quick-reaction special projects acquisition team. 

Subtitle B—Amendments to General Contracting Authorities, Procedures, 

and Limitations 

Sec. 811. Limitation period for task and delivery order contracts. 

Sec. 812. One-year extension of program applying simplified procedures to certain 

commercial items; report. 

Sec. 813. Extension and improvement of personnel demonstration policies and procedures applicable to the civilian acquisition workforce. 

Sec. 814. Past performance given significant weight in renewal of procurement technical assistance cooperative agreements. 

Sec. 815. Increased maximum amount of assistance for tribal organizations or economic enterprises carrying out procurement technical assistance programs in two or more service areas. 

Sec. 816. Extension of contract goal for small disadvantaged businesses and certain 

institutions of higher education. 

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Sec. 817. Grants of exceptions to cost or pricing data certification requirements and 

waivers of cost accounting standards. 

Sec. 818. Timing of certification in connection with waiver of survivability and 

lethality testing requirements. 

Sec. 819. Contracting with Federal Prison Industries. 

Sec. 820. Revisions to multiyear contracting authority. 

Subtitle C—Acquisition-Related Reports and Other Matters 

Sec. 821. Evaluation of training, knowledge, and resources regarding negotiation of 

intellectual property arrangements. 

Sec. 822. Independent technology readiness assessments. 

Sec. 823. Extension and amendment of requirement for annual report on defense 

commercial pricing management improvement. 

Sec. 824. Assessment of purchases of products and services through contracts with 

other Federal departments and agencies. 

Sec. 825. Repeal of certain requirements and Comptroller General reviews of the requirements. 

Sec. 826. Multiyear procurement authority for purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products. 

Sec. 827. Multiyear procurement authority for environmental services for military 

installations. 

Sec. 828. Report on effects of Army Contracting Agency. 

Sec. 829. Authorization to take actions to correct the industrial resource shortfall for 

radiation-hardened electronics.

Subtitle A—Acquisition Policy and 

Management 

SEC. 801. BUY-TO-BUDGET ACQUISITION OF END ITEMS. 

(a) AUTHORITY.—(1) Chapter 137 of title 10, United States 

Code, is amended by inserting after section 2307 the following new 

section: 

‘‘§ 2308. Buy-to-budget acquisition: end items 

‘‘(a) AUTHORITY TO ACQUIRE ADDITIONAL END ITEMS.—Using 

funds available to the Department of Defense for the acquisition of 

an end item, the head of an agency making the acquisition may acquire a higher quantity of the end item than the quantity specified 

for the end item in a law providing for the funding of that acquisition if that head of an agency makes each of the following findings: 

‘‘(1) The agency has an established requirement for the end 

item that is expected to remain substantially unchanged 

throughout the period of the acquisition. 

‘‘(2) It is possible to acquire the higher quantity of the end 

item without additional funding because of production efficiencies or other cost reductions. 

‘‘(3) The amount of the funds used for the acquisition of the 

higher quantity of the end item will not exceed the amount provided under that law for the acquisition of the end item. 

‘‘(4) The amount so provided is sufficient to ensure that 

each unit of the end item acquired within the higher quantity 

is fully funded as a complete end item. 

‘‘(b) REGULATIONS.—The Secretary of Defense shall prescribe 

regulations for the administration of this section. The regulations 

shall include, at a minimum, the following: 

‘‘(1) The level of approval within the Department of Defense 

that is required for a decision to acquire a higher quantity of 

an end item under subsection (a). 

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‘‘(2) Authority (subject to subsection (a)) to acquire up to 10 

percent more than the quantity of an end item approved in a 

justification and approval of the use of procedures other than 

competitive procedures for the acquisition of the end item under 

section 2304 of this title. 

‘‘(c) NOTIFICATION OF CONGRESS.—The head of an agency is not 

required to notify Congress in advance regarding a decision under 

the authority of this section to acquire a higher quantity of an end 

item than is specified in a law described in subsection (a), but shall 

notify the congressional defense committees of the decision not later 

than 30 days after the date of the decision. 

‘‘(d) WAIVER BY OTHER LAW.—A provision of law may not be 

construed as prohibiting the acquisition of a higher quantity of an 

end item under this section unless that provision of law—

‘‘(1) specifically refers to this section; and 

‘‘(2) specifically states that the acquisition of the higher 

quantity of the end item is prohibited notwithstanding the authority provided in this section. 

‘‘(e) DEFINITIONS.—(1) For the purposes of this section, a quantity of an end item shall be considered specified in a law if the 

quantity is specified either in a provision of that law or in any related representation that is set forth separately in a table, chart, or 

explanatory text included in a joint explanatory statement or governing committee report accompanying the law. 

‘‘(2) In this section: ‘‘(A) The term ‘congressional defense committees’

means—

‘‘(i) the Committee on Armed Services and the 

Committee on Appropriations of the Senate; and 

‘‘(ii) the Committee on Armed Services and the 

Committee on Appropriations of the House of Representatives. 

‘‘(B) The term ‘end item’ means a production product 

assembled, completed, and ready for issue or deployment. 

‘‘(C) The term ‘head of an agency’ means the Secretary 

of Defense, the Secretary of the Army, the Secretary of the 

Navy, and the Secretary of the Air Force.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 2307 the following new item:

‘‘2308. Buy-to-budget acquisition: end items.’’.

(b) TIME FOR ISSUANCE OF FINAL REGULATIONS.—The Secretary 

of Defense shall issue the final regulations under section 2308(b) of 

title 10, United States Code (as added by subsection (a)), not later 

than 120 days after the date of the enactment of this Act.

SEC. 802. REPORT TO CONGRESS ON EVOLUTIONARY ACQUISITION OF 

MAJOR DEFENSE ACQUISITION PROGRAMS. 

(a) REPORT REQUIRED.—(1) Not later than 120 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 approach that the Secretary plans to take to apply the requirements 

listed in paragraph (2) to major defense acquisition programs that 

follow the evolutionary acquisition process. 

(2) The requirements referred to in paragraph (1) are—

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(A) the requirements of chapter 144 of title 10, United 

States Code; 

(B) sections 139, 181, 2366, 2399, and 2400 of such title; 

(C) Department of Defense Directive 5000.1; 

(D) Department of Defense Instruction 5000.2; 

(E) Chairman of the Joint Chiefs of Staff Instruction 

3170.01B; and 

(F) other provisions of law and regulations (including successor documents) that are applicable to such programs. 

(b) CONTENT OF REPORT.—The report shall, at a minimum, address the following matters: 

(1) The manner in which the Secretary plans to establish 

and approve, for each increment of an evolutionary acquisition 

process—

(A) operational requirements; and 

(B) cost and schedule goals. 

(2) The manner in which the Secretary plans, for each increment of an evolutionary acquisition process—

(A) to meet requirements for operational testing and 

live fire testing; 

(B) to monitor cost and schedule performance; and 

(C) to comply with laws requiring reports to Congress 

on results testing and on cost and schedule performance. 

(3) The manner in which the Secretary plans to ensure that 

each increment of an evolutionary acquisition process is designed—

(A) to achieve interoperability within and among 

United States forces and United States coalition partners; 

and 

(B) to optimize total system performance and minimize 

total ownership costs by giving appropriate consideration 

to—

(i) logistics planning; 

(ii) manpower, personnel, and training; 

(iii) human, environmental, safety, occupational 

health, accessibility, survivability, operational continuity, and security factors; 

(iv) protection of critical program information; and 

(v) spectrum management. 

(c) DEFINITIONS.—In this section: 

(1) The term ‘‘evolutionary acquisition process’’ means a 

process by which an acquisition program is conducted through 

discrete phases or blocks, with each phase or block consisting 

of the planned definition, development, production or acquisition, and fielding of hardware or software that provides operationally useful capability.

(2) The term ‘‘increment’’, with respect to an evolutionary 

acquisition program, means one of the discrete phases or blocks 

of such program. 

(3) The term ‘‘major defense acquisition program’’ has the 

meaning given such term in section 139(a)(2)(B) of title 10, 

United States Code.

148

SEC. 803. SPIRAL DEVELOPMENT UNDER MAJOR DEFENSE ACQUISITION PROGRAMS. 

(a) AUTHORITY.—The Secretary of Defense is authorized to conduct major defense acquisition programs as spiral development programs. 

(b) LIMITATION ON SPIRAL DEVELOPMENT PROGRAMS.—A research and development program for a major defense acquisition 

program of a military department or Defense Agency may not be 

conducted as a spiral development program unless the Secretary of 

Defense approves the spiral development plan for that research and 

development program in accordance with subsection (c). The Secretary of Defense may delegate authority to approve the plan to the 

Under Secretary of Defense for Acquisition, Technology, and Logistics, or to the senior acquisition executive of the military department 

or Defense Agency concerned, but such authority may not be further 

delegated. 

(c) SPIRAL DEVELOPMENT PLANS.—A spiral development plan 

for a research and development program for a major defense acquisition program shall, at a minimum, include the following matters: 

(1) A rationale for dividing the research and development 

program into separate spirals, together with a preliminary 

identification of the spirals to be included. 

(2) A program strategy, including overall cost, schedule, 

and performance goals for the total research and development 

program. 

(3) Specific cost, schedule, and performance parameters, including measurable exit criteria, for the first spiral to be conducted. 

(4) A testing plan to ensure that performance goals, parameters, and exit criteria are met. 

(5) An appropriate limitation on the number of prototype 

units that may be produced under the research and development program. 

(6) Specific performance parameters, including measurable 

exit criteria, that must be met before the major defense acquisition program proceeds into production of units in excess of the 

limitation on the number of prototype units. 

(d) GUIDANCE.—Not later than 120 days after the date of the 

enactment of this Act, the Secretary of Defense shall issue guidance 

for the implementation of spiral development programs authorized 

by this section. The guidance shall include appropriate processes for 

ensuring the independent validation of exit criteria being met, the 

operational assessment of fieldable prototypes, and the management 

of spiral development programs. 

(e) REPORTING REQUIREMENT.—The Secretary shall submit to 

Congress by September 30 of each of 2003 through 2008 a status report on each research and development program that is a spiral development program. The report shall contain information on unit 

costs that is similar to the information on unit costs under major 

defense acquisition programs that is required to be provided to Congress under chapter 144 of title 10, United States Code, except that 

the information on unit costs shall address projected prototype costs 

instead of production costs. 

(f) APPLICABILITY OF EXISTING LAW.—Nothing in this section 

shall be construed to exempt any program of the Department of DeVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00172 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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fense from the application of any provision of chapter 144 of title 

10, United States Code, section 139, 181, 2366, 2399, or 2400 of 

such title, or any requirement under Department of Defense Directive 5000.1, Department of Defense Instruction 5000.2, or Chairman 

of the Joint Chiefs of Staff Instruction 3170.01B in accordance with 

the terms of such provision or requirement. 

(g) DEFINITIONS.—In this section: 

(1) The term ‘‘spiral development program’’, with respect to 

a research and development program, means a program that—

(A) is conducted in discrete phases or blocks, each of 

which will result in the development of fieldable prototypes; 

and 

(B) will not proceed into acquisition until specific performance parameters, including measurable exit criteria, 

have been met. 

(2) The term ‘‘spiral’’ means one of the discrete phases or 

blocks of a spiral development program. 

(3) The term ‘‘major defense acquisition program’’ has the 

meaning given such term in section 139(a)(2)(B) of title 10, 

United States Code.

SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISITION PROCESSES. 

(a) ESTABLISHMENT OF PROGRAMS.—(1) The Secretary of each 

military department shall establish a program to improve the software acquisition processes of that military department. 

(2) The head of each Defense Agency that manages a major defense acquisition program with a substantial software component 

shall establish a program to improve the software acquisition processes of that Defense Agency. 

(3) The programs required by this subsection shall be established not later than 120 days after the date of the enactment of this 

Act. 

(b) PROGRAM REQUIREMENTS.—A program to improve software 

acquisition processes under this section shall, at a minimum, include the following: 

(1) A documented process for software acquisition planning, 

requirements development and management, project management and oversight, and risk management. 

(2) Efforts to develop appropriate metrics for performance 

measurement and continual process improvement. 

(3) A process to ensure that key program personnel have an 

appropriate level of experience or training in software acquisition. 

(4) A process to ensure that each military department and 

Defense Agency implements and adheres to established processes and requirements relating to the acquisition of software. 

(c) DEPARTMENT OF DEFENSE GUIDANCE.—The Assistant Secretary of Defense for Command, Control, Communications, and Intelligence, in consultation with the Under Secretary of Defense for 

Acquisition, Technology, and Logistics, shall—

(1) prescribe uniformly applicable guidance for the administration of all of the programs established under subsection (a) 

and take such actions as are necessary to ensure that the military departments and Defense Agencies comply with the guidance; and 

150

(2) assist the Secretaries of the military departments and 

the heads of the Defense Agencies to carry out such programs 

effectively by— (A) ensuring that the criteria applicable to the selection 

of sources provides added emphasis on past performance of 

potential sources, as well as on the maturity of the software 

products offered by the potential sources; and 

(B) identifying, and serving as a clearinghouse for information regarding, best practices in software development 

and acquisition in both the public and private sectors. 

(d) DEFINITIONS.—In this section: 

(1) The term ‘‘Defense Agency’’ has the meaning given the 

term in section 101(a)(11) of title 10, United States Code. 

(2) The term ‘‘major defense acquisition program’’ has the 

meaning given such term in section 139(a)(2)(B) of title 10, 

United States Code.

SEC. 805. PERFORMANCE GOALS FOR PROCURING SERVICES PURSUANT TO MULTIPLE AWARD CONTRACTS. 

(a) PERFORMANCE GOALS.—Subsection (a) of section 802 of the 

National Defense Authorization Act for Fiscal Year 2002 (Public 

Law 107–107; 115 Stat. 1178; 10 U.S.C. 2330 note) is amended to 

read as follows: ‘‘(a) GOALS.—(1) It shall be an objective of the Department of 

Defense to achieve efficiencies in procurements of services pursuant 

to multiple award contracts through the use of— ‘‘(A) performance-based services contracting; 

‘‘(B) appropriate competition for task orders under services 

contracts; ‘‘(C) program review, spending analyses, and improved 

management of services contracts. 

‘‘(2) In furtherance of such objective, the Department of Defense 

shall have the following goals: ‘‘(A) To increase, as a percentage of all of the individual 

purchases of services made by or for the Department of Defense 

under multiple award contracts for a fiscal year (calculated on 

the basis of dollar value), the volume of the individual purchases of services that are made on a competitive basis and involve receipt of more than one offer from qualified contractors 

to a percentage as follows: 

‘‘(i) For fiscal year 2003, a percentage not less than 40 

percent. 

‘‘(ii) For fiscal year 2004, a percentage not less than 50 

percent. 

‘‘(iii) For fiscal year 2011, a percentage not less than 75 

percent. 

‘‘(B) To increase, as a percentage of all of the individual 

purchases of services made by or for the Department of Defense 

under multiple award contracts for a fiscal year (calculated on 

the basis of dollar value), the use of performance-based purchasing specifying firm fixed prices for the specific tasks to be 

performed to a percentage as follows: 

‘‘(i) For fiscal year 2003, a percentage not less than 25 

percent. 

‘‘(ii) For fiscal year 2004, a percentage not less than 35 

percent. 

151

‘‘(iii) For fiscal year 2005, a percentage not less than 50 

percent. ‘‘(iv) For fiscal year 2011, a percentage not less than 70 

percent. ‘‘(3) The Secretary of Defense may adjust any percentage goal 

established in paragraph (2) if the Secretary determines in writing 

that such a goal is too high and cannot reasonably be achieved. In 

the event that the Secretary chooses to adjust such a goal, the Secretary shall— ‘‘(A) establish a percentage goal that the Secretary determines would create an appropriate incentive for Department of 

Defense components to use competitive procedures or performance-based services contracting, as the case may be; and ‘‘(B) submit to the congressional defense committees a report containing an explanation of the reasons for the Secretary’s 

determination and a statement of the new goal that the Secretary has established.’’. (b) EXTENSION AND REVISION OF REPORTING REQUIREMENT.— Subsection (b) of such section is amended— (1) by striking ‘‘March 1, 2006’’ and inserting ‘‘March 1, 

2011’’; and 

(2) by amending paragraph (5) to read as follows: 

‘‘(5) Regarding the individual purchases of services that 

were made by or for the Department of Defense under multiple 

award contracts in the fiscal year preceding the fiscal year in 

which the report is required to be submitted, information 

(determined using the data collection system established under 

section 2330a of title 10, United States Code) as follows: ‘‘(A) The percentage (calculated on the basis of dollar 

value) of such purchases that are purchases that were made 

on a competitive basis and involved receipt of more than 

one offer from qualified contractors. ‘‘(B) The percentage (calculated on the basis of dollar 

value) of such purchases that are performance-based purchases specifying firm fixed prices for the specific tasks to 

be performed.’’. (c) DEFINITIONS.—Such section is further amended by adding 

at the end the following new subsection: ‘‘(c) DEFINITIONS.—(1) In this section, the terms ‘individual purchase’ and ‘multiple award contract’ have the meanings given such 

terms in section 803(c) of this Act. 

‘‘(2) For the purposes of this section, an individual purchase of 

services is made on a competitive basis only if it is made pursuant 

to procedures described in paragraphs (2), (3), and (4) of section 

803(b) of this Act.’’. 

(d) CONFORMING AMENDMENT.—The heading for such section is 

amended by striking ‘‘SAVINGS GOALS’’ and inserting 

‘‘PERFORMANCE GOALS’’.

SEC. 806. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES. 

(a) REQUIREMENT TO ESTABLISH PROCEDURES.—Not later than 

180 days after the date of the enactment of this Act, the Secretary 

of Defense shall prescribe procedures for the rapid acquisition and 

deployment of items that are—

(1) currently under development by the Department of Defense or available from the commercial sector; and 

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(2) urgently needed to react to an enemy threat or to respond to significant and urgent safety situations. 

(b) ISSUES TO BE ADDRESSED.—The procedures prescribed 

under subsection (a) shall include the following: 

(1) A process for streamlined communications between the 

Chairman of the Joint Chiefs of Staff, the acquisition community, and the research and development community, including—

(A) a process for the commanders of the combatant 

commands and the Joint Chiefs of Staff to communicate 

their needs to the acquisition community and the research 

and development community; and 

(B) a process for the acquisition community and the research and development community to propose items that 

meet the needs communicated by the combatant commands 

and the Joint Chiefs of Staff. 

(2) Procedures for demonstrating, rapidly acquiring, and 

deploying items proposed pursuant to paragraph (1)(B), including—

(A) a process for demonstrating performance and evaluating for current operational purposes the existing capability of an item; 

(B) a process for developing an acquisition and funding 

strategy for the deployment of an item; and 

(C) a process for making deployment determinations 

based on information obtained pursuant to subparagraphs 

(A) and (B). 

(c) TESTING REQUIREMENT.—(1) The process for demonstrating 

performance and evaluating for current operational purposes the existing capability of an item prescribed under subsection (b)(2)(A) 

shall include—

(A) an operational assessment in accordance with procedures prescribed by the Director of Operational Test and Evaluation; and 

(B) a requirement to provide information about any deficiency of the item in meeting the original requirements for the 

item (as stated in an operational requirements document or 

similar document) to the deployment decisionmaking authority. 

(2) The process may not include a requirement for any deficiency of an item to be the determining factor in deciding whether 

to deploy the item. 

(d) LIMITATION.—The quantity of items of a system procured 

using the procedures prescribed pursuant to this section may not exceed the number established for low-rate initial production for the 

system. Any such items shall be counted for purposes of the number 

of items of the system that may be procured through low-rate initial 

production. 

SEC. 807. QUICK-REACTION SPECIAL PROJECTS ACQUISITION TEAM. 

(a) ESTABLISHMENT.—The Under Secretary of Defense for Acquisition, Technology, and Logistics shall establish a team of highly 

qualified acquisition professionals who shall be available to advise 

the Under Secretary on actions that can be taken to expedite the acquisition of urgently needed systems. 

(b) DUTIES.—The issues on which the team may provide advice 

shall include the following: 

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(1) Industrial base issues, including the limited availability 

of suppliers. 

(2) Technology development and technology transition 

issues. 

(3) Issues of acquisition policy, including the length of the 

acquisition cycle. 

(4) Issues of testing policy and ensuring that weapon systems perform properly in combat situations. 

(5) Issues of procurement policy, including the impact of 

socio-economic requirements. 

(6) Issues relating to compliance with environmental requirements. 

Subtitle B—Amendments to General Contracting Authorities, Procedures, and 

Limitations 

SEC. 811. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS. 

(a) LIMITATION PERIOD.—Section 2306c of title 10, United 

States Code, is amended by adding at the end the following new 

subsection: ‘‘(g) LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CON- TRACTS.—(1) The authority and restrictions of this section, including the authority to enter into contracts for periods of not more than 

five years, shall apply with respect to task order and delivery order 

contracts entered into under the authority of section 2304a, 2304b, 

or 2304c of this title. ‘‘(2) The regulations implementing this subsection shall establish a preference that, to the maximum extent practicable, multiyear requirements for task order and delivery order contracts be met 

with separate awards to two or more sources under the authority of 

section 2304a(d)(1)(B) of this title.’’. (b) EFFECTIVE DATE.—Subsection (g) of section 2306c of title 10, 

United States Code, as added by subsection (a), shall apply to all 

task order and delivery order contracts entered into on or after the 

date of the enactment of this Act. 

(c) COMPTROLLER GENERAL REPORT.—Not later than March 15, 

2003, the Comptroller General 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 contract periods 

(including any options or extensions) for all single and multiple contract awards entered into under section 2304a(d) of title 10, United 

States Code, before the effective date in subsection (b). 

SEC. 812. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED 

PROCEDURES TO CERTAIN COMMERCIAL ITEMS; REPORT. 

(a) EXTENSION OF PILOT PROGRAM.—Section 4202 of the 

Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104– 106; 10 U.S.C. 2304 note) is amended in subsection (e) by striking 

‘‘January 1, 2003’’ and inserting ‘‘January 1, 2004’’. (b) REPORT REQUIRED.—(1) Not later than March 15, 2003, the 

Comptroller General shall submit to Congress a report on the authority to issue solicitations for purchases of commercial items in excess of the simplified acquisition threshold pursuant to the special 

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simplified procedures authorized by section 2304(g)(1) of title 10, 

United States Code, and section 31(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(a)). 

(2) The report required by paragraph (1) shall address, at a 

minimum—

(A) the extent to which such authority has been used by the 

Secretary of Defense; 

(B) the benefits realized by the Department of Defense 

through the use of such authority; 

(C) the impact of the use of such authority on competition 

for contracts with the Department of Defense; and 

(D) any recommendations of the Comptroller General for 

the continuation or modification of such authority. 

SEC. 813. EXTENSION AND IMPROVEMENT OF PERSONNEL DEMONSTRATION POLICIES AND PROCEDURES APPLICABLE 

TO THE CIVILIAN ACQUISITION WORKFORCE. 

(a) PLAN REQUIRED.—(1) The Secretary of Defense shall develop 

a plan for improving the personnel management policies and procedures applicable to the Department of Defense civilian acquisition 

workforce based on the results of the demonstration project described in section 4308 of the Clinger–Cohen Act of 1996 (divisions 

D and E of Public Law 104–106; 10 U.S.C. 1701 note). 

(2) Not later than February 15, 2003, the Secretary shall submit to Congress the plan required under paragraph (1) and a report 

on the plan, including any recommendations for legislative action 

necessary to implement the plan. 

(b) EXTENSION OF DEMONSTRATION PROJECT AUTHORITY.—Section 4308 of the Clinger–Cohen Act of 1996 (divisions D and E of 

Public Law 104–106; 10 U.S.C. 1701 note) is amended—

(1) in subsection (b)(2)(C), by striking ‘‘subsection (d)(1)(A)’’

and inserting ‘‘subsection (d)(1)’’; 

(2) by amending subparagraph (B) of subsection (b)(3) to 

read as follows: 

‘‘(B) commences before October 1, 2007.’’; and 

(3) by adding at the end the following new subsection: 

‘‘(e) TERMINATION OF AUTHORITY.—The authority to conduct a 

demonstration program under this section shall terminate on September 30, 2012.’’. 

SEC. 814. PAST PERFORMANCE GIVEN SIGNIFICANT WEIGHT IN RENEWAL OF PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENTS. 

Section 2413 of title 10, United States Code, is amended by 

adding at the end the following new subsection: ‘‘(d) In conducting a competition for the award of a cooperative 

agreement under subsection (a), and in determining the level of 

funding to provide under an agreement under subsection (b), the 

Secretary shall give significant weight to successful past performance of eligible entities under a cooperative agreement under this 

section.’’. 

SEC. 815. INCREASED MAXIMUM AMOUNT OF ASSISTANCE FOR TRIBAL 

ORGANIZATIONS OR ECONOMIC ENTERPRISES CARRYING 

OUT PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS 

IN TWO OR MORE SERVICE AREAS. 

Section 2414(a)(4) of title 10, United States Code, is amended 

by striking ‘‘$300,000’’ and inserting ‘‘$600,000’’. 

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SEC. 816. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES AND CERTAIN INSTITUTIONS OF 

HIGHER EDUCATION. 

Section 2323(k) of title 10, United States Code, is amended by 

striking ‘‘2003’’ both places it appears and inserting ‘‘2006’’. 

SEC. 817. GRANTS OF EXCEPTIONS TO COST OR PRICING DATA CERTIFICATION REQUIREMENTS AND WAIVERS OF COST ACCOUNTING STANDARDS. 

(a) GUIDANCE FOR EXCEPTIONS IN EXCEPTIONAL CIRCUMSTANCES.—Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance on 

the circumstances under which it is appropriate to grant an exceptional case exception or waiver with respect to certified cost and 

pricing data and cost accounting standards. 

(b) DETERMINATION REQUIRED FOR EXCEPTIONAL CASE EXCEPTION OR WAIVER.—The guidance shall, at a minimum, include a 

limitation that a grant of an exceptional case exception or waiver is 

appropriate with respect to a contract, subcontract, or (in the case 

of submission of certified cost and pricing data) modification only 

upon a determination that—

(1) the property or services cannot reasonably be obtained 

under the contract, subcontract, or modification, as the case 

may be, without the grant of the exception or waiver; 

(2) the price can be determined to be fair and reasonable 

without the submission of certified cost and pricing data or the 

application of cost accounting standards, as the case may be; 

and 

(3) there are demonstrated benefits to granting the exception or waiver. 

(c) APPLICABILITY OF NEW GUIDANCE.—The guidance issued 

under subsection (a) shall apply to each exceptional case exception 

or waiver that is granted on or after the date on which the guidance 

is issued. 

(d) ANNUAL REPORT ON BOTH COMMERCIAL ITEM AND EXCEPTIONAL CASE EXCEPTIONS AND WAIVERS WITH PRICE OR VALUE

GREATER THAN $15,000,000.—(1) The Secretary of Defense shall 

transmit to the congressional defense committees promptly after the 

end of each fiscal year a report on commercial item exceptions, and 

exceptional case exceptions and waivers, described in paragraph (2) 

that were granted during that fiscal year. 

(2) The report for a fiscal year shall include—

(A) with respect to any commercial item exception granted 

in the case of a contract, subcontract, or contract or subcontract 

modification that is expected to have a price of $15,000,000 or 

more, an explanation of the basis for the determination that the 

products or services to be purchased are commercial items, including an identification of the specific steps taken to ensure 

price reasonableness; and 

(B) with respect to any exceptional case exception or waiver 

granted in the case of a contract or subcontract that is expected 

to have a value of $15,000,000 or more, an explanation of the 

basis for the determination described in subsection (b), including an identification of the specific steps taken to ensure that 

the price was fair and reasonable. 

(e) DEFINITIONS.—In this section: 

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(1) The term ‘‘exceptional case exception or waiver’’ means 

either of the following: 

(A) An exception pursuant to section 2306a(b)(1)(C) of 

title 10, United States Code, relating to submission of certified cost and pricing data. 

(B) A waiver pursuant to section 26(f)(5)(B) of the Office of Federal Procurement Policy Act (41 U.S.C. 

422(f)(5)(B)), relating to the applicability of cost accounting 

standards to contracts and subcontracts. 

(2) The term ‘‘commercial item exception’’ means an exception pursuant to section 2306a(b)(1)(B) of title 10, United States 

Code, relating to submission of certified cost and pricing data.

SEC. 818. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER 

OF SURVIVABILITY AND LETHALITY TESTING REQUIREMENTS. 

(a) CERTIFICATION FOR EXPEDITED PROGRAMS.—Paragraph (1) 

of subsection (c) of section 2366 of title 10, United States Code, is 

amended to read as follows: 

‘‘(1) The Secretary of Defense may waive the application of the 

survivability and lethality tests of this section to a covered system, 

munitions program, missile program, or covered product improvement program if the Secretary determines that live-fire testing of 

such system or program would be unreasonably expensive and impractical and submits a certification of that determination to Congress—

‘‘(A) before Milestone B approval for the system or program; 

or 

‘‘(B) in the case of a system or program initiated at—

‘‘(i) Milestone B, as soon as is practicable after the 

Milestone B approval; or 

‘‘(ii) Milestone C, as soon as is practicable after the 

Milestone C approval.’’. 

(b) DEFINITIONS.—Subsection (e) of such section is amended by 

adding at the end the following new paragraphs: 

‘‘(8) The term ‘Milestone B approval’ means a decision to 

enter into system development and demonstration pursuant to 

guidance prescribed by the Secretary of Defense for the management of Department of Defense acquisition programs. 

‘‘(9) The term ‘Milestone C approval’ means a decision to 

enter into production and deployment pursuant to guidance prescribed by the Secretary of Defense for the management of Department of Defense acquisition programs.’’. 

SEC. 819. CONTRACTING WITH FEDERAL PRISON INDUSTRIES. 

(a) ASSURANCE OF BEST VALUE FOR NATIONAL DEFENSE.—(1) 

Section 2410n of title 10, United States Code, is amended—

(A) in subsection (a)—

(i) by amending the heading to read as follows: 

‘‘MARKET RESEARCH.—’’; and 

(ii) by striking ‘‘comparable in price, quality, and time 

of delivery to products available from the private sector’’

and inserting ‘‘comparable to products available from the 

private sector that best meet the Department’s needs in 

terms of price, quality, and time of delivery’’; 

(B) by striking subsection (b) and inserting the following: 

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‘‘(b) COMPETITION REQUIREMENT.—If the Secretary determines 

that a Federal Prison Industries product is not comparable in price, 

quality, or time of delivery to products available from the private 

sector that best meet the Department’s needs 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 conducting 

such a compeititon or making such a purchase, the Secretary shall 

consider a timely offer from Federal Prison Industries.’’; and 

(C) by adding at the end the following new subsections: 

‘‘(c) IMPLEMENTATION BY SECRETARY OF DEFENSE.—The Secretary of Defense shall ensure that—

‘‘(1) the Department of Defense does not purchase a Federal 

Prison Industries product or service unless a contracting officer 

of the Department determines that the product or service is 

comparable to products or services available from the private 

sector that best meet the Department’s needs in terms of price, 

quality, and time of delivery; and 

‘‘(2) Federal Prison Industries performs its contractual obligations to the same extent as any other contractor for the Department of Defense. 

‘‘(d) MARKET RESEARCH DETERMINATION NOT SUBJECT TO REVIEW.—A determination by a contracting officer regarding whether 

a product or service offered by Federal Prison Industries is comparable to products or services available from the private sector that 

best meet the Department’s needs in terms of price, quality, and 

time of delivery shall not be subject to review pursuant to section 

4124(b) of title 18. 

‘‘(e) PERFORMANCE AS A SUBCONTRACTOR.—(1) A contractor or 

potential contractor of the Department of Defense may not be required to use Federal Prison Industries as a subcontractor or supplier of products or provider of services for the performance of a Department of Defense contract by any means, including means such 

as—

‘‘(A) a contract solicitation provision requiring a contractor 

to offer to make use of products or services of Federal Prison Industries in the performance of the contract; 

‘‘(B) a contract specification requiring the contractor to use 

specific products or services (or classes of products or services) 

offered by Federal Prison Industries in the performance of the 

contract; or 

‘‘(C) any contract modification directing the use of products 

or services of Federal Prison Industries in the performance of 

the contract. 

‘‘(2) In this subsection, the term ‘contractor’, with respect to a 

contract, includes a subcontractor at any tier under the contract. 

‘‘(f) PROTECTION OF CLASSIFIED AND SENSITIVE INFORMATION.—

The Secretary of Defense may not enter into any contract with Federal Prison Industries under which an inmate worker would have 

access to—

‘‘(1) any data that is classified; 

‘‘(2) any geographic data regarding the location of—

‘‘(A) surface and subsurface infrastructure providing 

communications or water or electrical power distribution; 

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‘‘(B) pipelines for the distribution of natural gas, bulk 

petroleum products, or other commodities; or 

‘‘(C) other utilities; or 

‘‘(3) any personal or financial information about any individual private citizen, including information relating to such 

person’s real property however described, without the prior consent of the individual. 

‘‘(g) DEFINITIONS.—In this section: 

‘‘(1) The term ‘competitive procedures’ has the meaning 

given such term in section 2302(2) of this title. 

‘‘(2) The term ‘market research’ means obtaining specific information about the price, quality, and time of delivery of products available in the private sector through a variety of means, 

which may include—

‘‘(A) contacting knowledgeable individuals in government and industry; 

‘‘(B) interactive communication among industry, acquisition personnel, and customers; and 

‘‘(C) interchange meetings or pre-solicitation conferences with potential offerors.’’. 

(2) Paragraph (1) and the amendments made by such paragraph shall take effect as of October 1, 2001. 

(b) REGULATORY IMPLEMENTATION.—(1) Proposed revisions to 

the Department of Defense Supplement to the Federal Acquisition 

Regulation to implement this section shall be published not later 

than 90 days after the date of the enactment of this Act, and not 

less than 60 days shall be provided for public comment on the proposed revisions. 

(2) Final regulations shall be published not later than 180 days 

after the date of the enactment of this Act and shall be effective on 

the date that is 30 days after the date of the publication.

SEC. 820. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY. 

(a) USE OF PROCUREMENT AND ADVANCE PROCUREMENT

FUNDS.—Section 2306b(i) of title 10, United States Code, is amended by adding at the end the following new paragraph: 

‘‘(4)(A) The Secretary of Defense may obligate funds for procurement of an end item under a multiyear contract for the purchase of 

property only for procurement of a complete and usable end item. 

‘‘(B) The Secretary of Defense may obligate funds appropriated 

for any fiscal year for advance procurement under a contract for the 

purchase of property only for the procurement of those long-lead 

items necessary in order to meet a planned delivery schedule for 

complete major end items that are programmed under the contract 

to be acquired with funds appropriated for a subsequent fiscal year 

(including an economic order quantity of such long-lead items when 

authorized by law).’’. 

(b) EFFECTIVE DATE.—(1) Paragraph (4) of section 2306b(i) of 

title 10, United States Code, as added by subsection (a), shall not 

apply with respect to any contract awarded before the date of the 

enactment of this Act. 

(2) Nothing in this section shall be construed to authorize the 

expenditure of funds under any contract awarded before the date of 

the enactment of this Act for any purpose other than the purpose for 

which such funds have been authorized and appropriated.

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Subtitle C—Acquisition-Related Reports 

and Other Matters

SEC. 821. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES 

REGARDING NEGOTIATION OF INTELLECTUAL PROPERTY 

ARRANGEMENTS. 

(a) AVAILABILITY OF TRAINING, KNOWLEDGE, AND RESOURCES.—

The Secretary of Defense shall evaluate the training, knowledge, 

and resources needed by the Department of Defense in order to effectively negotiate intellectual property rights using the principles of 

the Defense Federal Acquisition Regulation Supplement and determine whether the Department of Defense currently has in place the 

training, knowledge, and resources available to meet those Departmental needs. 

(b) REPORT.—Not later than February 1, 2003, the Secretary of 

Defense shall submit to Congress a report describing—

(1) the results of the evaluation performed under subsection 

(a); 

(2) to the extent the Department does not have adequate 

training, knowledge, and resources available, actions to be 

taken to improve training and knowledge and to make resources 

available to meet the Department’s needs; and 

(3) the number of Department of Defense legal personnel 

trained in negotiating intellectual property arrangements.

SEC. 822. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS. 

Section 804(b) of the National Defense Authorization Act for 

Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1180) is amended—

(1) by striking ‘‘and’’ at the end of paragraph (1); 

(2) by striking the period at the end of paragraph (2) and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(3) identify each case in which an authoritative decision 

has been made within the Department of Defense not to conduct 

an independent technology readiness assessment for a critical 

technology on a major defense acquisition program and explain 

the reasons for the decision.’’.

SEC. 823. EXTENSION AND AMENDMENT OF REQUIREMENT FOR ANNUAL REPORT ON DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT. 

Section 803(c)(4) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 

2082; 10 U.S.C. 2306a note) is amended—

(1) by striking ‘‘2000, 2001, and 2002,’’ and inserting ‘‘2000 

through 2006,’’; 

(2) by inserting after ‘‘were conducted’’ the following: ‘‘by 

the Secretary of each military department and the Director of 

the Defense Logistics Agency’’; and 

(3) by inserting after ‘‘actions taken’’ the following: ‘‘by each 

Secretary and the Director’’.

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SEC. 824. ASSESSMENT OF PURCHASES OF PRODUCTS AND SERVICES 

THROUGH CONTRACTS WITH OTHER FEDERAL DEPARTMENTS AND AGENCIES. 

(a) REQUIREMENT FOR ASSESSMENT.—The Secretary of Defense 

shall carry out an assessment of purchases by the Department of Defense of products and services through contracts entered into with 

other Federal departments and agencies. 

(b) PERIOD COVERED BY ASSESSMENT.—The assessment required by subsection (a) shall cover purchases made during fiscal 

years 2000 through 2002. 

(c) REPORT.—Not later than February 1, 2003, the Secretary of 

Defense shall submit to the Committees on Armed Services of the 

Senate and the House of Representatives a report on the results of 

the assessment conducted under subsection (a). The report shall include the following: 

(1) The total amount paid by the Department of Defense as 

fees for the acquisition of such products and services. 

(2) A determination of whether such total amount paid is 

excessive and should be reduced. 

(3) A description of the benefits received by the Department 

as a result of purchasing such products and services through 

such contracts.

SEC. 825. REPEAL OF CERTAIN REQUIREMENTS AND COMPTROLLER 

GENERAL REVIEWS OF THE REQUIREMENTS. 

(a) TERMINATION OF AUTHORITY TO TRANSFER FUNDS INTO DEFENSE MODERNIZATION ACCOUNT.—(1) Paragraph (1) of section 

912(c) of the National Defense Authorization Act for Fiscal Year 

1996 (Public Law 104–106; 110 Stat. 410; 10 U.S.C. 2216 note) is 

amended by striking ‘‘September 30, 2003’’ and inserting 

‘‘September 30, 2002’’. 

(2) Section 912(d) of such Act (110 Stat. 410; 10 U.S.C. 2216 

note), relating to Comptroller General reviews of the administration 

of the Defense Modernization Account, is repealed. 

(b) REPEAL OF SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.—(1) Section 11522 of title 40, United States Code, is repealed. 

(2)(A) Section 11501 of title 40, United States Code, is amended—

(i) in the section heading, by striking ‘‘PROGRAMS’’ and 

inserting ‘‘PROGRAM’’; 

(ii) in subsection (a)(1), by striking ‘‘conduct pilot programs’’ and inserting ‘‘conduct a pilot program pursuant to the 

requirements of section 11521 of this title’’; 

(iii) in subsection (a)(2), by striking ‘‘each pilot program’’

and inserting ‘‘the pilot program’’; 

(iv) in subsection (b)—

(I) by striking ‘‘LIMITATIONS.—’’ and all that follows 

through ‘‘pilot programs conducted’’ and inserting the following: ‘‘LIMITATION ON AMOUNT.—The total amount obligated for contracts entered into under the pilot program 

conducted’’; and 

(II) by striking ‘‘paragraph.’’ and inserting 

‘‘subsection.’’; and 

(v) in subsection (c)(1), by striking ‘‘a pilot’’ and inserting 

‘‘the pilot’’. 

161

(B) The following provisions of chapter 115 of such title are 

each amended by striking ‘‘a pilot’’ each place it appears and inserting ‘‘the pilot’’: 

(i) Section 11502(a). 

(ii) Section 11502(b). 

(iii) Section 11503(a). 

(iv) Section 11504. 

(C) Section 11505 of such chapter is amended by striking ‘‘programs’’ and inserting ‘‘program’’. (3)(A) The chapter heading for chapter 115 of such title is 

amended by striking ‘‘PROGRAMS’’ and inserting ‘‘PROGRAM’’. (B) The subchapter heading for subchapter I and for subchapter 

II of such chapter are each amended by striking ‘‘PROGRAMS’’ and 

inserting ‘‘PROGRAM’’. (C) The item relating to subchapter I in the table of sections at 

the beginning of such chapter is amended to read as follows:

‘‘SUBCHAPTER I—CONDUCT OF PILOT PROGRAM’’.

(D) The item relating to subchapter II in the table of sections 

at the beginning of such chapter is amended to read as follows:

‘‘SUBCHAPTER II—SPECIFIC PILOT PROGRAM’’.

(E) The item relating to section 11501 in the table of sections 

at the beginning of such is amended by striking ‘‘programs’’ and inserting ‘‘program’’. (F) The table of sections at the beginning of such chapter is 

amended by striking the item relating to section 11522. 

(G) The item relating to chapter 115 in the table of chapters for 

subtitle III of title 40, United States Code, is amended to read as 

follows:

‘‘115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM ...11501’’.

(c) REPEAL OF ON-LINE MULTIPLE AWARD SCHEDULE CON- TRACTING REQUIREMENTS.—(1) Section 11701 of title 40, United 

States Code, is repealed. 

(2) Sections 11702, 11703, and 11704 of such title are redesignated as sections 11701, 11702, and 11703, respectively. 

(3) The table of sections for chapter 117 of such title is amended— (A) by striking the item relating to section 11701; and 

(B) by redesignating the items relating to sections 11702, 

11703, and 11704 as sections 11701, 11702, and 11703, respectively.

SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR PURCHASE OF 

DINITROGEN TETROXIDE, HYDRAZINE, AND HYDRAZINERELATED PRODUCTS. 

(a) IN GENERAL.—Chapter 141 of title 10, United States Code, 

is amended by inserting after section 2410n the following new section: 

‘‘§ 2410o. Multiyear procurement authority: purchase of 

dinitrogen tetroxide, hydrazine, and hydrazine-related products 

‘‘(a) TEN-YEAR CONTRACT PERIOD.—The Secretary of Defense 

may enter into a contract for a period of up to 10 years for the purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related 

162

products for the support of a United States national security program or a United States space program. 

‘‘(b) EXTENSIONS.—A contract entered into for more than one 

year under the authority of subsection (a) may be extended for a 

total of not more than 10 years pursuant to any option or options 

set forth in the contract.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

item:

‘‘2410o. Multiyear procurement authority: purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products.’’.

SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR ENVIRONMENTAL SERVICES FOR MILITARY INSTALLATIONS. 

(a) AUTHORITY.—Subsection (b) of section 2306c of title 10, 

United States Code, is amended by adding at the end the following 

new paragraph:

‘‘(5) Environmental remediation services for—

‘‘(A) an active military installation; 

‘‘(B) a military installation being closed or realigned 

under a base closure law; or 

‘‘(C) a site formerly used by the Department of Defense.’’. 

(b) DEFINITIONS.—Such section, as amended by section 811, is 

further amended by adding at the end the following new subsection: 

‘‘(h) ADDITIONAL DEFINITIONS.—In this section: 

‘‘(1) The term ‘base closure law’ has the meaning given such 

term in section 2667(h)(2) of this title. 

‘‘(2) The term ‘military installation’ has the meaning given 

such term in section 2801(c)(2) of this title.’’.

SEC. 828. REPORT ON EFFECTS OF ARMY CONTRACTING AGENCY. 

(a) IN GENERAL.—The Secretary of the Army shall submit a report on the effects of the establishment of an Army Contracting 

Agency on small business participation in Army procurements during the first year of operation of such an agency to—

(1) the Committee on Armed Services of the House of Representatives; 

(2) the Committee on Armed Services of the Senate; 

(3) the Committee on Small Business of the House of Representatives; and 

(4) the Committee on Small Business and Entrepreneurship 

of the Senate. 

(b) CONTENT.—The report required under subsection (a) shall 

include, in detail—

(1) the justification for the establishment of an Army Contracting Agency; 

(2) the impact of the creation of an Army Contracting Agency on—

(A) Army compliance with—

(i) Department of Defense Directive 4205.1; 

(ii) section 15(g) of the Small Business Act (15 

U.S.C. 644(g)); and 

(iii) section 15(k) of the Small Business Act (15 

U.S.C. 644(k)); and 

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(B) small business participation in Army procurement 

of products and services for affected Army installations, including—

(i) the impact on small businesses located near 

Army installations, including—

(I) the increase or decrease in the total value 

of Army prime contracting with local small businesses; and 

(II) the opportunities for small business owners to meet and interact with Army procurement 

personnel; and 

(ii) any change or projected change in the use of 

consolidated contracts and bundled contracts; and 

(3) a description of the Army’s plan to address any negative 

impact on small business participation in Army procurement, to 

the extent such impact is identified in the report. 

(c) TIME FOR SUBMISSION.—The report under this section shall 

be submitted 15 months after the date of the establishment of the 

Army Contracting Agency.

SEC. 829. AUTHORIZATION TO TAKE ACTIONS TO CORRECT THE INDUSTRIAL RESOURCE SHORTFALL FOR RADIATION-HARDENED ELECTRONICS. 

Notwithstanding the limitation in section 303(a)(6)(C) of the 

Defense Production Act of 1950 (50 U.S.C. App. 2093(a)(6)(C)), action or actions may be taken under section 303 of that Act to correct 

the industrial resource shortfall for radiation-hardened electronics, 

if such actions do not cause the aggregate outstanding amount of 

all such actions to exceed $106,000,000.

TITLE IX—DEPARTMENT OF DEFENSE 

ORGANIZATION AND MANAGEMENT

Subtitle A—Duties and Functions of Department of Defense Officers 

Sec. 901. Under Secretary of Defense for Intelligence. 

Sec. 902. Reorganization of Office of Secretary of Defense for administration of duties relating to homeland defense and combating terrorism. 

Subtitle B—Space Activities 

Sec. 911. Oversight of acquisition for defense space programs. 

Sec. 912. Report regarding assured access to space for the United States. 

Subtitle C—Reports 

Sec. 921. Report on establishment of United States Northern Command. 

Sec. 922. Time for submittal of report on Quadrennial Defense Review. 

Sec. 923. National defense mission of Coast Guard to be included in future Quadrennial Defense Reviews. 

Sec. 924. Report on establishment of a Joint National Training Complex and joint 

opposing forces. 

Subtitle D—Other Matters 

Sec. 931. Authority to accept gifts for National Defense University. 

Sec. 932. Western Hemisphere Institute for Security Cooperation. 

Sec. 933. Conforming amendment to reflect disestablishment of Department of Defense Consequence Management Program Integration Office. 

Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

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Subtitle A—Duties and Functions of 

Department of Defense Officers

SEC. 901. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE. 

(a) ESTABLISHMENT OF POSITION.—Chapter 4 of title 10, United 

States Code, is amended—

(1) by transferring section 137 within such chapter to appear after section 139 and redesignating that section as section 

139a; and

(2) by inserting after section 136a the following new section 

137: 

‘‘§ 137. Under Secretary of Defense for Intelligence 

‘‘(a) There is an Under Secretary of Defense for Intelligence, appointed from civilian life by the President, by and with the advice 

and consent of the Senate. 

‘‘(b) Subject to the authority, direction, and control of the Secretary of Defense, the Under Secretary of Defense for Intelligence 

shall perform such duties and exercise such powers as the Secretary 

of Defense may prescribe in the area of intelligence. 

‘‘(c) The Under Secretary of Defense for Intelligence takes precedence in the Department of Defense after the Under Secretary of Defense for Personnel and Readiness.’’. 

(b) CONFORMING AMENDMENTS.—(1) Section 131(b) of such title 

is amended—

(A) by striking paragraphs (2) through (5) and inserting the 

following: 

‘‘(2) The Under Secretaries of Defense, as follows: 

‘‘(A) The Under Secretary of Defense for Acquisition, 

Technology, and Logistics. 

‘‘(B) The Under Secretary of Defense for Policy. 

‘‘(C) The Under Secretary of Defense (Comptroller). 

‘‘(D) The Under Secretary of Defense for Personnel and 

Readiness. 

‘‘(E) The Under Secretary of Defense for Intelligence.’’; 

and 

(B) by redesignating paragraphs (6), (7), (8), (9), (10), and 

(11) as paragraphs (3), (4), (5), (6), (7), and (8), respectively. 

(2) The table of sections at the beginning of chapter 4 of such 

title is amended—

(A) by striking the item relating to section 137 and inserting the following:

‘‘137. Under Secretary of Defense for Intelligence.’’;

and 

(B) by inserting after the item relating to section 139 the 

following new item:

‘‘139a. Director of Defense Research and Engineering.’’.

(c) EXECUTIVE LEVEL III.—Section 5314 of title 5, United States 

Code, is amended by inserting after ‘‘Under Secretary of Defense for 

Personnel and Readiness.’’ the following: 

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‘‘Under Secretary of Defense for Intelligence.’’. 

(d) RELATIONSHIP TO AUTHORITIES UNDER NATIONAL SECURITY

ACT OF 1947.—Nothing in section 137 of title 10, United States 

Code, as added by subsection (a), shall supersede or modify the authorities of the Secretary of Defense and the Director of Central Intelligence as established by the National Security Act of 1947 (50 

U.S.C. 401 et seq.). 

(e) 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 the establishment of the position of Under Secretary of 

Defense for Intelligence. The report shall set forth the following: 

(1) The mission prescribed for that Under Secretary. 

(2) The organizational structure established for the office of 

that Under Secretary. 

(3) The relationship of that Under Secretary with the 

Under Secretary of Defense for Acquisition, Technology, and Logistics and the Under Secretary of Defense for Policy. 

(4) The relationship of that Under Secretary with each of 

the following intelligence components of the Department of Defense: the National Security Agency, the Defense Intelligence 

Agency, the National Imagery and Mapping Agency, and the 

National Reconnaissance Office. 

(5) The mission of the position designated, as of the date 

of the enactment of this Act, as Assistant Secretary of Defense 

for Command, Control, Communications, and Intelligence and 

the relationship of that position to the Under Secretary of Defense for Intelligence.

SEC. 902. REORGANIZATION OF OFFICE OF SECRETARY OF DEFENSE 

FOR ADMINISTRATION OF DUTIES RELATING TO HOMELAND DEFENSE AND COMBATING TERRORISM. 

(a) ASSISTANT SECRETARY OF DEFENSE FOR HOMELAND DEFENSE.—Section 138(b) of title 10, United States Code, is amended 

by inserting after paragraph (2) the following new paragraph: 

‘‘(3) One of the Assistant Secretaries shall be the Assistant Secretary of Defense for Homeland Defense. He shall have as his principal duty the overall supervision of the homeland defense activities 

of the Department of Defense.’’. 

(b) TRANSFER TO UNDER SECRETARY OF DEFENSE FOR POLICY

OF RESPONSIBILITY FOR COMBATING TERRORISM.—Section 134(b) of 

such title is amended by adding at the end the following new paragraph: 

‘‘(4) Subject to the authority, direction, and control of the Secretary of Defense, the Under Secretary of Defense for Policy shall 

have overall direction and supervision for policy, program planning 

and execution, and allocation and use of resources for the activities 

of the Department of Defense for combating terrorism.’’. 

(c) CONFORMING AMENDMENT.—Section 138(b) of such title is 

amended by striking paragraph (6). 

(d) REPEAL OF PREVIOUS CONTINGENT REDUCTION IN NUMBER

OF ASSISTANT SECRETARIES OF DEFENSE.—Subsections (c) and (d) 

of section 901 of the National Defense Authorization Act for Fiscal 

Year 2002 (Public Law 107–107; 115 Stat. 1194) are repealed.

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Subtitle B—Space Activities

SEC. 911. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE PROGRAMS. 

(a) IN GENERAL.—The Secretary of Defense shall provide for 

oversight of acquisition for defense space programs through appropriate organizations of the Office of the Secretary of Defense. 

(b) REPORT ON OVERSIGHT.—(1) Not later than March 15, 2003, 

the Secretary of Defense shall submit to the congressional defense 

committees a detailed plan on how the Office of the Secretary of Defense shall provide oversight of acquisition for defense space programs. 

(2) The plan shall set forth the following: 

(A) The organizations in the Office of the Secretary of Defense, and the Joint Staff organizations, to be involved in oversight of acquisition for defense space programs. 

(B) The process for the review of acquisition for defense 

space programs by the organizations specified under subparagraph (A). 

(C) The process for the provision by such organizations of 

technical, programmatic, scheduling, and budgetary oversight 

of acquisition for defense space programs. 

(D) The process for the development of independent cost estimates for acquisition for defense space programs, including 

the organization responsible for developing such cost estimates 

and when such cost estimates shall be required. 

(E) The process by which the military departments, Defense 

Agencies, and organizations in the Office of the Secretary of Defense develop and coordinate the budgets for acquisition for defense space programs. 

(F) The process for the resolution of conflicts among the Department of Defense elements referred to in subparagraphs (A) 

and (E) regarding acquisition for defense space programs. 

(c) DEFENSE SPACE PROGRAM DEFINED.—In this section, the 

term ‘‘defense space program’’ means a program of the Department 

of Defense that—

(1) is included in the ‘‘virtual major force program’’ for 

space activities that was established by the Secretary of Defense 

and was to have been submitted with the 2003 fiscal year budget for the Department of Defense; or 

(2) after the date of the enactment of this Act, is included 

in a virtual major force program for space categories or in a 

major force program for space activities established after such 

date.

SEC. 912. REPORT REGARDING ASSURED ACCESS TO SPACE FOR THE 

UNITED STATES. 

(a) PLAN.—The Secretary of Defense shall—

(1) evaluate all options for sustaining the space launch industrial base of the United States; and 

(2) develop an integrated, long-range, and adequately funded plan for assuring access to space by the United States. 

(b) REPORT.—Not later than March 1, 2003, the Secretary of 

Defense shall submit to Congress a report on the plan developed 

under subsection (a)(2).

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Subtitle C—Reports

SEC. 921. REPORT ON ESTABLISHMENT OF UNITED STATES NORTHERN COMMAND. 

Not later than March 1, 2003, the Secretary of Defense shall 

submit to the Committees on Armed Services of the Senate and the 

House of Representatives a report providing an implementation plan 

for the establishment of the United States Northern Command, 

which is established effective October 1, 2002. The report shall address the following: 

(1) The required budget for standing-up and maintaining 

that command over the period of the future-years defense program. 

(2) The rationale for the selection of Peterson Air Force 

Base, Colorado, as the headquarters of that command, the criteria used in the selection of Peterson Air Force Base, and the 

alternative locations considered for that headquarters. 

(3) The required military and civilian personnel levels for 

the headquarters of that command and a specification of the 

combatant commands and other Department of Defense sources 

from which such headquarters personnel will be transferred, 

shown by the number of military and civilian personnel from 

each such command or other Department of Defense source. 

(4) The organization of the command, a justification of any 

components of the command, and a review of organizations and 

units permanently assigned or tasked to the command. 

(5) The relationship of that command (A) to the Office of 

Homeland Security, the Department of Homeland Security, the 

Homeland Security Council, and any other Federal coordinating entity, (B) to other Federal departments and agencies, 

and (C) to State and local law enforcement agencies. 

(6) The relationship of that command with the National 

Guard Bureau, individual State National Guard Headquarters, 

and State and local officials the command may be called upon 

to provide support. 

(7) The legal implications of members of the Armed Forces, 

including the National Guard in both Federal and State status, 

operating on United States territory pursuant to missions, operations, or activities of that command. 

(8) The status of Department of Defense consultations—

(A) with Canada regarding Canada’s role in, or relationship with, and any expansion of mission for, the North 

American Air Defense Command; and 

(B) with Mexico regarding Mexico’s role in, or relationship with, the United States Northern Command. 

(9) The status of United States consultations with the 

North Atlantic Treaty Organization relating to the position of 

Supreme Allied Commander, Atlantic, and the new chain of 

command for that position. 

(10) The effect of the creation of the United States Northern 

Command on the mission, budget, and resource levels of other 

combatant commands, particularly the United States Joint 

Forces Command.

168

SEC. 922. TIME FOR SUBMITTAL OF REPORT ON QUADRENNIAL DEFENSE REVIEW. 

Section 118(d) of title 10, United States Code, is amended by 

striking ‘‘not later than September 30 of the year in which the review is conducted’’ in the second sentence and inserting ‘‘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’’.

SEC. 923. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE INCLUDED IN FUTURE QUADRENNIAL DEFENSE REVIEWS. 

Section 118(d) of title 10, United States Code, is amended—

(1) by redesignating paragraph (14) as paragraph (15); and 

(2) by inserting after paragraph (13) the following new 

paragraph: 

‘‘(14) The national defense mission of the Coast Guard.’’.

SEC. 924. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL TRAINING COMPLEX AND JOINT OPPOSING FORCES. 

(a) REPORT REQUIRED.—The commander of the United States 

Joint Forces Command shall submit to the Secretary of Defense a 

report that outlines a plan that would provide for the development 

and implementation of a joint national training concept together 

with the establishment of a joint training complex for supporting 

the implementation of that concept. Such a concept and complex— (1) may include various training sites, mobile training 

ranges, public and private modeling and simulation centers, 

and appropriate joint opposing forces; and 

(2) shall be capable of supporting field exercises and experimentation at the operational level of war across a broad spectrum of adversary capabilities. 

(b) SUBMISSION OF REPORT.—Not later than six months after 

the date of the enactment of this Act, the Secretary shall submit the 

report under subsection (a), together with any comments that the 

Secretary considers appropriate and any comments that the Chairman of the Joint Chiefs of Staff considers appropriate, to the Committee on Armed Services of the Senate and the Committee on 

Armed Services of the House of Representatives. The report may be 

included in the next annual report submitted under section 485 of 

title 10, United States Code, after the date of the enactment of this 

Act or it may be submitted separately. 

(c) MATTERS TO BE INCLUDED.—The report under subsection (a) 

shall include the following: 

(1) An identification and description of the types of joint 

training and experimentation that would be conducted at such 

a joint national training complex, together with a description of 

how such training and experimentation would enhance accomplishment of the six critical operational goals for the Department of Defense specified at page 30 of the Quadrennial Defense 

Review Report of the Secretary of Defense issued on September 

30, 2001. 

(2) A discussion of how establishment of such a complex 

(including joint opposing forces) would promote innovation and 

transformation throughout the Department of Defense. 

(3) A discussion of how results from training and experiments conducted at such a complex would be taken into consideration in the Department of Defense plans, programs, and 

169

budgeting process and by appropriate decision making bodies 

within the Department of Defense. 

(4) A methodology, framework, and options for selecting 

sites for such a complex, including consideration of current 

training facilities that would accommodate requirements among 

all the Armed Forces. 

(5) Options for development as part of such a complex of a 

joint urban warfare training center that could also be used for 

homeland defense and consequence management training for 

Federal, State, and local training. 

(6) Cost estimates and resource requirements to establish 

and maintain such a complex, including estimates of costs and 

resource requirements for the use of contract personnel for the 

performance of management, operational, and logistics activities for such a complex . 

(7) An explanation of the relationship between and among 

such a complex and the Department of Defense Office of Transformation, the Joint Staff, the United States Joint Forces Command, the United States Northern Command, and each element 

of the major commands within the separate Armed Forces with 

responsibility for experimentation and training. 

(8) A discussion of how implementation of a joint opposing 

force would be established, including the feasibility of using 

qualified contractors for the function of establishing and maintaining joint opposing forces and the role of foreign forces. 

(9) A timeline for the establishment of such a complex and 

for such a complex to achieve (A) initial operational capability, 

and (B) full operational capability.

Subtitle D—Other Matters

SEC. 931. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE UNIVERSITY. 

(a) IN GENERAL.—Chapter 155 of title 10, United States Code, 

is amended by adding at the end the following new section: 

‘‘§ 2612. National Defense University: acceptance of gifts 

‘‘(a) The Secretary of Defense may accept, hold, administer, and 

spend any gift, including a gift from an international organization 

and a foreign gift or donation (as defined in section 2611(f) of this 

title), that is made on the condition that it be used in connection 

with the operation or administration of the National Defense University. The Secretary may pay all necessary expenses in connection 

with the acceptance of a gift under this subsection. 

‘‘(b) There is established in the Treasury a fund to be known as 

the ‘National Defense University Gift Fund’. Gifts of money, and the 

proceeds of the sale of property, received under subsection (a) shall 

be deposited in the fund. The Secretary may disburse funds deposited under this subsection for the benefit or use of the National Defense University. 

‘‘(c) Subsection (c) of section 2601 of this title applies to property 

that is accepted under subsection (a) in the same manner that such 

subsection applies to property that is accepted under subsection (a) 

of that section. 

170

‘‘(d)(1) Upon request of the Secretary of Defense, the Secretary 

of the Treasury may— ‘‘(A) retain money, securities, and the proceeds of the sale 

of securities, in the National Defense University Gift Fund; and ‘‘(B) invest money and reinvest the proceeds of the sale of 

securities in that fund in securities of the United States or in 

securities guaranteed as to principal and interest by the United 

States. 

‘‘(2) The interest and profits accruing from those securities shall 

be deposited to the credit of the fund and may be disbursed as provided in subsection (b). ‘‘(e) In this section: ‘‘(1) the term ‘gift’ includes a devise of real property or a bequest of personal property and any gift of an interest in real 

property. ‘‘(2) The term ‘National Defense University’ includes any 

school or other component of the National Defense University 

specified under section 2165(b) of this title. 

‘‘(f) The Secretary of Defense shall prescribe regulations to carry 

out this section.’’. (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘2612. National Defense University: acceptance of gifts.’’.

SEC. 932. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION. 

(a) AUTHORITY TO ACCEPT FOREIGN GIFTS AND DONATIONS.— Section 2166 of title 10, United States Code, is amended— (1) by redesignating subsections (f), (g), and (h), as subsections (g), (h), and (i), respectively; and 

(2) by inserting after subsection (e) the following new subsection (f): 

‘‘(f) AUTHORITY TO ACCEPT FOREIGN GIFTS AND DONATIONS.— (1) The Secretary of Defense may, on behalf of the Institute, accept 

foreign gifts or donations in order to defray the costs of, or enhance 

the operation of, the Institute. ‘‘(2) Funds received by the Secretary under paragraph (1) shall 

be credited to appropriations available for the Department of Defense for the Institute. Funds so credited shall be merged with the 

appropriations to which credited and shall be available for the Institute for the same purposes and same period as the appropriations 

with which merged. ‘‘(3) The Secretary of Defense shall notify Congress if the total amount of money accepted under paragraph (1) exceeds $1,000,000 

in any fiscal year. Any such notice shall list each of the contributors 

of such money and the amount of each contribution in such fiscal 

year. ‘‘(4) For the purposes of this subsection, a foreign gift or donation is a gift or donation of funds, materials (including research 

materials), property, or services (including lecture services and faculty services) from a foreign government, a foundation or other 

charitable organization in a foreign country, or an individual in a 

foreign country.’’. (b) CONTENT OF ANNUAL REPORT TO CONGRESS.—Subsection (i) 

of such section, as redesignated by subsection (a)(1), is amended by 

171

inserting after the first sentence the following: ‘‘The report shall include a copy of the latest report of the Board of Visitors received by 

the Secretary under subsection (e)(5), together with any comments of 

the Secretary on the Board’s report.’’.

SEC. 933. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF DEPARTMENT OF DEFENSE CONSEQUENCE MANAGEMENT PROGRAM INTEGRATION OFFICE. 

Section 12310(c)(3) of title 10, United States Code, is amended 

by striking ‘‘only—’’ and all that follows through ‘‘(B) while assigned’’ and inserting ‘‘only while assigned’’.

SEC. 934. INCREASE IN NUMBER OF DEPUTY

COMMANDANTS OF THE MARINE CORPS. 

Section 5045 of title 10, United States Code, is amended by 

striking ‘‘five’’ and inserting ‘‘six’’.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters 

Sec. 1001. Transfer authority. 

Sec. 1002. Authorization of supplemental appropriations for fiscal year 2002. 

Sec. 1003. United States contribution to NATO common-funded budgets in fiscal 

year 2003. 

Sec. 1004. Development and implementation of financial management enterprise architecture. 

Sec. 1005. Accountable officials in the Department of Defense. 

Sec. 1006. Uniform standards throughout Department of Defense for exposure of 

personnel to pecuniary liability for loss of Government property. 

Sec. 1007. Improvements in purchase card management. 

Sec. 1008. Improvements in travel card management. 

Sec. 1009. Clearance of certain transactions recorded in Treasury suspense accounts 

and resolution of certain check issuance discrepancies. 

Sec. 1010. Authorization of funds for ballistic missile defense programs or combating terrorism programs of the Department of Defense. 

Sec. 1011. Reduction in overall authorization due to inflation savings. 

Subtitle B—Naval Vessels and Shipyards 

Sec. 1021. Number of Navy combatant surface vessels in active and reserve service. 

Sec. 1022. Annual long-range plan for the construction of naval vessels. 

Sec. 1023. Assessment of the feasibility of the expedited equipping of a Navy ship 

with a version of the 155-millimeter Advanced Gun System. 

Sec. 1024. Report on initiatives to increase operational days of Navy ships. 

Sec. 1025. Ship combat system industrial base. 

Sec. 1026. Sense of Congress concerning aircraft carrier force structure. 

Sec. 1027. Conveyance, Navy drydock, Portland, Oregon. 

Subtitle C—Strategic Matters 

Sec. 1031. Strategic force structure plan for nuclear weapons and delivery systems. 

Sec. 1032. Annual report on weapons to defeat hardened and deeply buried targets. 

Sec. 1033. Report on effects of nuclear earth-penetrator weapon and other weapons. 

Subtitle D—Reports 

Sec. 1041. Repeal and modification of various reporting requirements applicable to 

the Department of Defense. 

Sec. 1042. Requirement that Department of Defense reports to Congress be accompanied by electronic version. 

Sec. 1043. Annual report on the conduct of military operations conducted as part of 

Operation Enduring Freedom. 

Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs at military installations. 

Sec. 1045. Report on designation of certain Louisiana highway as Defense Access 

Road. 

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Subtitle E—Extension of Expiring Authorities 

Sec. 1051. Extension of authority for Secretary of Defense to sell aircraft and aircraft parts for use in responding to oil spills. 

Sec. 1052. Six-month extension of expiring Governmentwide information security requirements; continued applicability of expiring Governmentwide information security requirements to the Department of Defense. 

Sec. 1053. Two-year extension of authority of the Secretary of Defense to engage in 

commercial activities as security for intelligence collection activities 

abroad. 

Subtitle F—Other Matters 

Sec. 1061. Time for transmittal of annual defense authorization legislative proposal. 

Sec. 1062. Technical and clerical amendments. 

Sec. 1063. Use for law enforcement purposes of DNA samples maintained by Department of Defense for identification of human remains. 

Sec. 1064. Enhanced authority to obtain foreign language services during periods of 

emergency. 

Sec. 1065. Rewards for assistance in combating terrorism. 

Sec. 1066. Provision of space and services to military welfare societies. 

Sec. 1067. Prevention and mitigation of corrosion of military equipment and infrastructure. 

Sec. 1068. Transfer of historic DF–9E Panther aircraft to Women Airforce Service 

Pilots Museum. 

Sec. 1069. Increase in amount authorized to be expended for Department of Defense 

program to commemorate 50th anniversary of the Korean War.

Subtitle A—Financial Matters 

SEC. 1001. TRANSFER AUTHORITY. 

(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) 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 2003 between any such authorizations for that 

fiscal year (or any subdivisions thereof). Amounts of authorizations 

so transferred shall be merged with and be available for the same 

purposes as the authorization to which transferred. 

(2) The total amount of authorizations that the Secretary may 

transfer under the authority of paragraph (1) may not exceed 

$2,000,000,000. 

(b) LIMITATIONS.—The authority provided by subsection (a) 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 subsection (a) 

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). 

(e) INCREASE IN AMOUNT OF TRANSFER AUTHORITY AUTHORIZED

FOR FY02.—Section 1001 of the National Defense Authorization Act 

for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1201) is 

amended by striking ‘‘$2,000,000,000’’ and inserting 

‘‘$2,500,000,000’’.

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SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR 

FISCAL YEAR 2002. 

(a) DOD AUTHORIZATIONS.—Amounts authorized to be appropriated to the Department of Defense for fiscal year 2002 in the National Defense Authorization Act for Fiscal Year 2002 (Public Law 

107–107) 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 

decreased (by a rescission), or both, or are increased by a transfer 

of funds, pursuant to chapter 3 or chapter 10 of title I of Public Law 

107–206 (116 Stat. 835, 878). 

(b) NNSA AUTHORIZATIONS.—Amounts authorized to be appropriated to the Department of Energy for fiscal year 2002 in the National Defense Authorization Act for Fiscal Year 2002 (Public Law 

107–107) 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 

decreased (by a rescission), or both, or are increased by a transfer 

of funds, pursuant to chapter 5 of title I of Public Law 107–206 (116 

Stat. 848). 

(c) REPORT ON FISCAL YEAR 2002 TRANSFERS.—Not later than 

January 15, 2003, the Secretary of Defense shall submit to the congressional defense committees a report stating, for each transfer 

during fiscal year 2002 of an amount provided for the Department 

of Defense for that fiscal year through a so-called ‘‘transfer account’’, 

including the Defense Emergency Response Fund or any other similar account, the amount of the transfer, the appropriation account 

to which the transfer was made, and the specific purpose for which 

the transferred funds were used.

SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN FISCAL YEAR 2003. 

(a) FISCAL YEAR 2003 LIMITATION.—The total amount contributed by the Secretary of Defense in fiscal year 2003 for the commonfunded 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 2002, of funds appropriated for fiscal years before 

fiscal year 2003 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), $750,000 for 

the Civil Budget. 

(2) Of the amount provided in section 301(1), $205,623,000 

for the Military Budget. 

(d) DEFINITIONS.—For purposes of this section: 

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(1) COMMON-FUNDED BUDGETS OF NATO.—The term 

‘‘common-funded budgets of NATO’’ means the Military Budget, 

the Security Investment Program, and the Civil Budget of the 

North Atlantic Treaty Organization (and any successor or additional account or program of NATO). 

(2) FISCAL YEAR 1998 BASELINE LIMITATION.—The term 

‘‘fiscal year 1998 baseline limitation’’ means the maximum annual amount of Department of Defense contributions for common-funded budgets of NATO that is set forth as the annual 

limitation in section 3(2)(C)(ii) of the resolution of the Senate 

giving the advice and consent of the Senate to the ratification 

of the Protocols to the North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, and the Czech Republic (as defined 

in section 4(7) of that resolution), approved by the Senate on 

April 30, 1998.

SEC. 1004. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL MANAGEMENT ENTERPRISE ARCHITECTURE. 

(a) REQUIREMENT FOR ENTERPRISE ARCHITECTURE AND FOR

TRANSITION PLAN.—Not later than May 1, 2003, the Secretary of 

Defense shall develop—

(1) a financial management enterprise architecture for all 

budgetary, accounting, finance, enterprise resource planning, 

and mixed information systems of the Department of Defense; 

and 

(2) a transition plan for implementing that financial management enterprise architecture. 

(b) COMPOSITION OF ENTERPRISE ARCHITECTURE.—(1) The financial management enterprise architecture developed under subsection (a)(1) shall describe an information infrastructure that, at a 

minimum, would enable the Department of Defense to—

(A) comply with all Federal accounting, financial management, and reporting requirements; 

(B) routinely produce timely, accurate, and reliable financial information for management purposes; 

(C) integrate budget, accounting, and program information 

and systems; and 

(D) provide for the systematic measurement of performance, 

including the ability to produce timely, relevant, and reliable 

cost information. 

(2) That enterprise architecture shall also include policies, procedures, data standards, and system interface requirements that are 

to apply uniformly throughout the Department of Defense. 

(c) COMPOSITION OF TRANSITION PLAN.—The transition plan 

developed under subsection (a)(2) shall include the following: 

(1) The acquisition strategy for the enterprise architecture, 

including specific time-phased milestones, performance metrics, 

and financial and nonfinancial resource needs. 

(2) A listing of the mission critical or mission essential 

operational and developmental financial and nonfinancial 

management systems of the Department of Defense, as defined 

by the Under Secretary of Defense (Comptroller), consistent with 

budget justification documentation, together with—

(A) the costs to operate and maintain each of those systems during fiscal year 2002; and 

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(B) the estimated cost to operate and maintain each of 

those systems during fiscal year 2003. 

(3) A listing of the operational and developmental financial 

management systems of the Department of Defense as of the 

date of the enactment of this Act (known as ‘‘legacy systems’’) 

that will not be part of the objective financial and nonfinancial 

management system, together with the schedule for terminating 

those legacy systems that provides for reducing the use of those 

legacy systems in phases. 

(d) CONDITIONS FOR OBLIGATION OF SIGNIFICANT AMOUNTS FOR

FINANCIAL SYSTEM IMPROVEMENTS.—An amount in excess of $1,000,000 may be obligated for a defense financial system improvement only if the Under Secretary of Defense (Comptroller) makes a 

determination regarding that improvement as follows: 

(1) Before the date of an approval specified in paragraph 

(2), a determination that the defense financial system improvement is necessary for either of the following reasons: 

(A) To achieve a critical national security capability or 

address a critical requirement in an area such as safety or 

security. 

(B) To prevent a significant adverse effect (in terms of 

a technical matter, cost, or schedule) on a project that is 

needed to achieve an essential capability, taking into consideration in the determination the alternative solutions for 

preventing the adverse effect. 

(2) On and after the date of any approval by the Secretary 

of Defense of a financial management enterprise architecture 

and a transition plan that satisfy the requirements of this section, a determination that the defense financial system improvement is consistent with both the enterprise architecture and the 

transition plan. 

(e) CONGRESSIONAL REPORTS.—Not later than March 15 of each 

year from 2004 through 2007, the Secretary of Defense shall submit 

to the congressional defense committees a report on the progress of 

the Department of Defense in implementing the enterprise architecture and transition plan required by this section. Each report shall 

include, at a minimum— (1) a description of the actions taken during the preceding 

fiscal year to implement the enterprise architecture and transition plan (together with the estimated costs of such actions); 

(2) an explanation of any action planned in the enterprise 

architecture and transition plan to be taken during the preceding fiscal year that was not taken during that fiscal year; 

(3) a description of the actions taken and planned to be 

taken during the current fiscal year to implement the enterprise 

architecture and transition plan (together with the estimated 

costs of such actions); and 

(4) a description of the actions taken and planned to be 

taken during the next fiscal year to implement the enterprise architecture and transition plan (together with the estimated costs 

of such actions). 

(f) COMPTROLLER GENERAL REVIEW.—Not later than 60 days 

after the approval of an enterprise architecture and transition plan 

in accordance with the requirements of subsection (a), and not later 

than 60 days after the submission of an annual report required by 

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subsection (e), the Comptroller General shall submit to the congressional defense committees an assessment of the extent to which the 

actions taken by the Department comply with the requirements of 

this section. 

(g) DEFINITIONS.—In this section: 

(1) The term ‘‘defense financial system improvement’’ means 

the acquisition of a new budgetary, accounting, finance, enterprise resource planning, or mixed information system for the 

Department of Defense or a modification of an existing budgetary, accounting, finance, enterprise resource planning, or 

mixed information system of the Department of Defense. Such 

term does not include routine maintenance and operation of any 

such system. 

(2) The term ‘‘mixed information system’’ means an information system that supports financial and non-financial functions of the Federal Government as defined in Office of Management and Budget Circular A–127 (Financial management Systems). 

(h) REPEAL.—(1) Section 2222 of title 10, United States Code, 

is repealed. The table of sections at the beginning of chapter 131 of 

such title is amended by striking the item relating to such section. 

(2) Section 185(d) of such title is amended by striking ‘‘has the 

meaning given that term in section 2222(c)(2) of this title’’ and inserting ‘‘means an automated or manual system from which information is derived for a financial management system or an accounting system’’.

SEC. 1005. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF DEFENSE. 

(a) ACCOUNTABLE OFFICIALS WITHIN THE DEPARTMENT OF DEFENSE.—Chapter 165 of title 10, United States Code, is amended by 

inserting after section 2773 the following new section: 

‘‘§ 2773a. Departmental accountable officials 

‘‘(a) DESIGNATION BY SECRETARY OF DEFENSE.—The Secretary 

of Defense may designate any civilian employee of the Department 

of Defense or member of the armed forces under the Secretary’s jurisdiction who is described in subsection (b) as an employee or member who, in addition to any other potential accountability, may be 

held accountable through personal monetary liability for an illegal, 

improper, or incorrect payment made the Department of Defense described in subsection (c). Any such designation shall be in writing. 

Any employee or member who is so designated may be referred to 

as a ‘departmental accountable official’. 

‘‘(b) COVERED EMPLOYEES AND MEMBERS.—An employee or 

member of the armed forces described in this subsection is an employee or member who—

‘‘(1) is responsible in the performance of the employee’s or 

member’s duties for providing to a certifying official of the Department of Defense information, data, or services that are directly relied upon by the certifying official in the certification of 

vouchers for payment; and 

‘‘(2) is not otherwise accountable under subtitle III of title 

31 or any other provision of law for payments made on the 

basis of such vouchers. 

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‘‘(c) PECUNIARY LIABILITY.—(1) The Secretary of Defense may 

subject a departmental accountable official to pecuniary liability for 

an illegal, improper, or incorrect payment made by the Department 

of Defense if the Secretary determines that such payment— ‘‘(A) resulted from information, data, or services that that 

official provided to a certifying official and upon which that 

certifying official directly relies in certifying the voucher supporting that payment; and ‘‘(B) was the result of fault or negligence on the part of that 

departmental accountable official. 

‘‘(2) Pecuniary liability under this subsection shall apply in the 

same manner and to the same extent as applies to an official accountable under subtitle III of title 31. ‘‘(3) Any pecuniary liability of a departmental accountable official under this subsection for a loss to the United States resulting 

from an illegal, improper, or incorrect payment is joint and several 

with that of any other officer or employee of the United States or 

member of the uniformed services who is pecuniarily liable for such 

loss. ‘‘(d) CERTIFYING OFFICIAL DEFINED.—In this section, the term ‘certifying official’ means an employee who has the responsibilities 

specified in section 3528(a) of title 31.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating 

to section 2773 the following new item:

‘‘2773a. Departmental accountable officials.’’.

SEC. 1006. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE FOR EXPOSURE OF PERSONNEL TO PECUNIARY LIABILITY FOR LOSS OF GOVERNMENT PROPERTY. 

(a) EXTENSION OF ARMY AND AIR FORCE REPORT-OF-SURVEY

PROCEDURES TO NAVY AND MARINE CORPS AND ALL DOD CIVILIAN

EMPLOYEES.—(1) Chapter 165 of title 10, United States Code, is 

amended by adding at the end the following new section: 

‘‘§ 2787. Reports of survey 

‘‘(a) ACTION ON REPORTS OF SURVEY.—Under regulations prescribed pursuant to subsection (c), any officer of the Army, Navy, 

Air Force, or Marine Corps or any civilian employee of the Department of Defense designated in accordance with those regulations 

may act upon reports of surveys and vouchers pertaining to the loss, 

spoilage, unserviceability, unsuitability, or destruction of, or damage to, property of the United States under the control of the Department of Defense. 

‘‘(b) FINALITY OF ACTION.—(1) Action taken under subsection (a) 

is final except as provided in paragraph (2). 

‘‘(2) An action holding a person pecuniarily liable for loss, spoilage, destruction, or damage is not final until approved by a person 

designated to do so by the Secretary of a military department, commander of a combatant command, or Director of a Defense Agency, 

as the case may be, who has jurisdiction of the person held pecuniarily liable. The person designated to provide final approval shall 

be an officer of an armed force, or a civilian employee, under the 

jurisdiction of the official making the designation. 

‘‘(c) REGULATIONS.—The Secretary of Defense shall prescribe 

regulations to carry out this section.’’. 

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(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘2787. Reports of survey.’’.

(b) EXTENSION TO MEMBERS OF NAVY AND MARINE CORPS OF

PAY DEDUCTION AUTHORITY PERTAINING TO DAMAGE OR REPAIR OF

ARMS AND EQUIPMENT.—Section 1007(e) of title 37, United States 

Code, is amended by striking ‘‘Army or the Air Force’’ and inserting 

‘‘Army, Navy, Air Force, or Marine Corps’’. 

(c) REPEAL OF SUPERSEDED PROVISIONS.—(1) Sections 4835 

and 9835 of title 10, United States Code, are repealed. 

(2) The tables of sections at the beginning of chapters 453 and 

953 of such title are amended by striking the items relating to sections 4835 and 9835, respectively. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to the loss, spoilage, unserviceability, 

unsuitability, or destruction of, or damage to, property of the United 

States under the control of the Department of Defense occurring on 

or after the effective date of regulations prescribed pursuant to section 2787 of title 10, United States Code, as added by subsection (a).

SEC. 1007. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT. 

(a) PURCHASE CARD MANAGEMENT IMPROVEMENTS.—Section 

2784 of title 10, United States Code, is amended— (1) in subsection (a), by striking ‘‘, acting through the 

Under Secretary of Defense (Comptroller),’’; and 

(2) by adding at the end of subsection (b) the following: 

‘‘(7) That periodic reviews are performed to determine 

whether each purchase card holder has a need for the purchase 

card. ‘‘(8) That the Inspector General of the Department of Defense, the Inspector General of the Army, the Naval Inspector 

General, and the Inspector General of the Air Force perform 

periodic audits to identify— ‘‘(A) potentially fraudulent, improper, and abusive uses 

of purchase cards; 

‘‘(B) any patterns of improper card holder transactions, 

such as purchases of prohibited items; and 

‘‘(C) categories of purchases that should be made by 

means other than purchase cards in order to better aggregate purchases and obtain lower prices. 

‘‘(9) That appropriate training is provided to each purchase 

card holder and each official with responsibility for overseeing 

the use of purchase cards issued by the Department of Defense. 

‘‘(10) That the Department of Defense has specific policies 

regarding the number of purchase cards issued by various organizations and categories of organizations, the credit limits authorized for various categories of card holders, and categories 

of employees eligible to be issued purchase cards, and that those 

policies are designed to minimize the financial risk to the Federal Government of the issuance of the purchase cards and to 

ensure the integrity of purchase card holders. 

‘‘(c) PENALTIES FOR VIOLATIONS.—The regulations prescribed 

under subsection (a) shall—

‘‘(1) provide for appropriate adverse personnel actions or 

other punishment to be imposed in cases in which employees of 

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the Department of Defense violate such regulations or are negligent or engage in misuse, abuse, or fraud with respect to a 

purchase card, including removal in appropriate cases; and 

‘‘(2) provide that a violation of such regulations by a person 

subject to chapter 47 of this title (the Uniform Code of Military 

Justice) is punishable as a violation of section 892 of this title 

(article 92 of the Uniform Code of Military Justice).’’. 

(b) CONFORMING AND CLERICAL AMENDMENTS.—(1) Section 

2784 of such title is further amended—

(A) in the section heading, by striking ‘‘credit’’ and inserting ‘‘purchase’’; 

(B) in the heading of subsection (a), by striking ‘‘CREDIT’’

and inserting ‘‘PURCHASE’’; and 

(C) in subsection (a) and paragraphs (1) through (6) of subsection (b), by striking ‘‘credit’’ and inserting ‘‘purchase’’ each 

place it appears. 

(2) The table of sections at the beginning of chapter 165 of such 

title is amended by striking the item relating to section 2784 and 

inserting the following:

‘‘2784. Management of purchase cards.’’.

SEC. 1008. IMPROVEMENTS IN TRAVEL CARD MANAGEMENT. 

(a) TRAVEL CARD MANAGEMENT IMPROVEMENTS.—Chapter 165 

of title 10, United States Code, is amended by inserting after section 

2784 the following new section: 

‘‘§ 2784a. Management of travel cards 

‘‘(a) DISBURSEMENT OF TRAVEL ALLOWANCES DIRECTLY TO

CREDITORS.—(1) The Secretary of Defense may require that any part 

of a travel or transportation allowance of an employee of the Department of Defense or a member of the armed forces be disbursed directly to the issuer of a Defense travel card if the amount is disbursed to the issuer in payment of amounts of expenses of official 

travel that are charged by the employee or member on the Defense 

travel card. 

‘‘(2) For the purposes of this subsection, the travel and transportation allowances referred to in paragraph (1) are amounts to which 

an employee of the Department of Defense is entitled under section 

5702 of title 5 or a member of the armed forces is entitled under 

section 404 of title 37. 

‘‘(b) OFFSETS FOR DELINQUENT TRAVEL CARD CHARGES.—(1) 

The Secretary of Defense may require that there be deducted and 

withheld from any basic pay payable to an employee of the Department of Defense or a member of the armed forces any amount that 

is owed by the employee or member to a creditor by reason of one 

or more charges of expenses of official travel of the employee or 

member on a Defense travel card issued by the creditor if the employee or member—

‘‘(A) is delinquent in the payment of such amount under the 

terms of the contract under which the card is issued; and 

‘‘(B) does not dispute the amount of the delinquency. 

‘‘(2) The amount deducted and withheld from pay under paragraph (1) with respect to a debt owed a creditor as described in that 

paragraph shall be disbursed to the creditor to reduce the amount 

of the debt. 

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‘‘(3) The amount of pay deducted and withheld from the pay 

owed to an employee or member with respect to a pay period under 

paragraph (1) may not exceed 15 percent of the disposable pay of 

the employee or member for that pay period, except that a higher 

amount may be deducted and withheld with the written consent of 

the employee or member. 

‘‘(4) The Secretary of Defense shall prescribe procedures for deducting and withholding amounts from pay under this subsection. 

The procedures shall be substantially equivalent to the procedures 

under section 3716 of title 31. 

‘‘(c) OFFSETS OF RETIRED PAY.—In the case of a former employee of the Department of Defense or a retired member of the 

armed forces who is receiving retired pay and who owes an amount 

to a creditor by reason of one or more charges on a Defense travel 

card that were made before the retirement of the employee or member, the Secretary may require amounts to be deducted and withheld from any retired pay of the former employee or retired member 

in the same manner and subject to the same conditions as the Secretary deducts and withholds amounts from basic pay payable to an 

employee or member under subsection (b). 

‘‘(d) DEFINITIONS.—In this section: 

‘‘(1) The term ‘Defense travel card’ means a charge or credit 

card that—

‘‘(A) is issued to an employee of the Department of Defense or a member of the armed forces under a contract entered into by the Department of Defense with the issuer of 

the card; and 

‘‘(B) is to be used for charging expenses incurred by the 

employee or member in connection with official travel. 

‘‘(2) The term ‘disposable pay’, with respect to a pay period, 

means the amount equal to the excess of the amount of basic 

pay or retired pay, as the case may be, payable for the pay period over the total of the amounts deducted and withheld from 

such pay. 

‘‘(3) The term ‘retired pay’ means—

‘‘(A) in the case of a former employee of the Department 

of Defense, any retirement benefit payable to that individual, out of the Civil Service Retirement and Disability 

Fund, based (in whole or in part) on service performed by 

such individual as a civilian employee of the Department 

of Defense; and 

‘‘(B) in the case of a retired member of the armed forces 

or member of the Fleet Reserve or Fleet Marine Corps Reserve, retired or retainer pay to which the member is entitled. 

‘‘(e) EXCLUSION OF COAST GUARD.—This section does not apply 

to the Coast Guard.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 165 of such title is amended by inserting after the 

item relating to section 2784 the following new item:

‘‘2784a. Management of travel cards.’’.

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SEC. 1009. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN 

TREASURY SUSPENSE ACCOUNTS AND RESOLUTION OF 

CERTAIN CHECK ISSUANCE DISCREPANCIES. 

(a) CLEARANCE OF CERTAIN SUSPENSE ACCOUNTS.—(1) In the 

case of any transaction that was entered into by or on behalf of the 

Department of Defense before March 1, 2001, that is recorded in the 

Department of Treasury Budget Clearing Account (Suspense) designated as account F3875, the Unavailable Check Cancellations and 

Overpayments Account (Suspense) designated as account F3880, or 

an Undistributed Intergovernmental Payments account designated 

as account F3885, and for which no appropriation for the Department of Defense has been identified— (A) any undistributed collection credited to such account in 

such case shall be deposited to the miscellaneous receipts of the 

Treasury; and 

(B) subject to paragraph (2), any undistributed disbursement recorded in such account in such case shall be canceled. 

(2) An undistributed disbursement may not be canceled under 

paragraph (1)(B) until the Secretary of Defense has made a written 

determination that the appropriate official or officials of the Department of Defense have attempted without success to locate the documentation necessary to identify which appropriation should be 

charged with such disbursement and that further efforts to do so are 

not in the best interests of the United States. 

(b) RESOLUTION OF CHECK ISSUANCE DISCREPANCIES.—(1) In 

the case of any check drawn on the Treasury that was issued by or 

on behalf of the Department of Defense before October 31, 1998, for 

which the Secretary of the Treasury has reported to the Department 

of Defense a discrepancy between the amount paid and the amount 

of the check as transmitted to the Department of Treasury, and for 

which no specific appropriation for the Department of Defense can 

be identified as being associated with the check, the discrepancy 

shall be canceled, subject to paragraph (2). 

(2) A discrepancy may not be canceled under paragraph (1) 

until the Secretary of Defense has made a written determination 

that the appropriate official or officials of the Department of Defense 

have attempted without success to locate the documentation necessary to identify which appropriation should be charged with the 

amount of the check and that further efforts to do so are not in the 

best interests of the United States. 

(c) CONSULTATION.—The Secretary of Defense shall consult the 

Secretary of the Treasury in the exercise of the authority granted by 

subsections (a) and (b). 

(d) DURATION OF CANCELLATION AUTHORITY FOLLOWING DE- TERMINATION.—(1) A particular undistributed disbursement may 

not be canceled under paragraph (1)(B) of subsection (a) more than 

30 days after the date of the written determination made by the Secretary of Defense under paragraph (2) of such subsection regarding 

that undistributed disbursement. 

(2) A particular discrepancy may not be canceled under paragraph (1) of subsection (b) more than 30 days after the date of the 

written determination made by the Secretary of Defense under paragraph (2) of such subsection regarding that discrepancy. 

(e) PROGRAM TERMINATION.—No authority may be exercised 

under this section after the date that is two years after the date of 

the enactment of this Act.

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SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE DEPARTMENT OF DEFENSE. 

(a) AUTHORIZATION.—There is hereby authorized to be appropriated for fiscal year 2003 for the military functions of the Department of Defense, in addition to amounts authorized to be appropriated in titles I, II, and III, the amount of $814,300,000, to be 

available, in accordance with subsection (b), for the following purposes: 

(1) Research, development, test, and evaluation for ballistic 

missile defense programs of the Missile Defense Agency of the 

Department of Defense. 

(2) Activities of the Department of Defense for combating 

terrorism at home and abroad. 

(b) ALLOCATION BY PRESIDENT.—(1) The amount authorized to 

be appropriated by subsection (a) shall be allocated between the purposes stated in paragraphs (1) and (2) of that subsection in such 

manner as may be determined by the President based upon the national security interests of the United States. The amount authorized in subsection (a) shall not be available for any other purpose. 

(2) Upon an allocation of such amount by the President, the 

amount so allocated shall be transferred to the appropriate regular 

authorization account under this division in the same manner as 

provided in section 1001. Transfers under this paragraph shall not 

be counted for the purposes of section 1001(a)(2). 

(3) Not later than 15 days after an allocation is made under 

this subsection, the Secretary of Defense shall submit to the congressional defense committees a report describing the President’s allocation, the basis for the President’s determination in making such allocation, and the Secretary’s plan for the use by the Department of 

Defense of the funds made available pursuant to such allocation.

SEC. 1011. REDUCTION IN OVERALL AUTHORIZATION DUE TO INFLATION SAVINGS. 

(a) REDUCTION.—The total amount authorized to be appropriated by titles I, II, and III is the amount equal to the sum of the 

individual authorizations in those titles reduced by $1,000,000,000. 

(b) SOURCE OF SAVINGS.—Reductions required in order to comply with subsection (a) shall be derived from savings resulting from 

lower-than-expected inflation as a result of the midsession review of 

the budget conducted by the Office of Management and Budget. 

(c) ALLOCATION OF REDUCTION.—The Secretary of Defense shall 

allocate the reduction required by subsection (a) among the accounts 

in titles I, II, and III to reflect the extent to which net inflation savings are available in those accounts.

Subtitle B—Naval Vessels and Shipyards

SEC. 1021. NUMBER OF NAVY COMBATANT SURFACE VESSELS IN ACTIVE AND RESERVE SERVICE. 

(a) CONTINGENT REQUIREMENT FOR REPORT.—(1) If, on the 

date of the enactment of this Act, the number of combatant surface 

vessels of the Navy is less than 116, the Secretary of the Navy shall, 

not later than 90 days after such date, submit to the Committees on 

Armed Services of the Senate and the House of Representatives a report on the size of the force of combatant surface vessels of the Navy. 

183

The report shall include a risk assessment for a force of combatant 

surface vessels in the number as of the date of the enactment of this 

Act that is based on the same assumptions as were applied in the 

QDR 2001 combatant surface force risk assessment. 

(2) The definitions in subsection (c) of section 7296 of title 10, 

United States Code, as added by subsection (b), apply to this subsection. 

(b) NUMBER OF COMBATANT SURFACE VESSELS.—(1) Chapter 

633 of title 10, United States Code, is amended by inserting after 

section 7295 the following new section:

‘‘§ 7296. Combatant surface vessels: notice before reduction in 

number; preservation of surge capability 

‘‘(a) NOTICE-AND-WAIT BEFORE REDUCTIONS.—(1) A reduction 

described in paragraph (2) in the number of combatant surface vessels may only be carried out after— ‘‘(A) the Secretary of the Navy submits to the Committee on 

Armed Services of the Senate and the Committee on Armed 

Services of the House of Representatives a written notification 

of the proposed reduction; and ‘‘(B) a period of 90 days has expired after the date on which 

such notification is received. 

‘‘(2) A reduction described in this paragraph in the number of 

combatant surface vessels is a reduction— ‘‘(A) from 116, or a number greater than 116, to a number 

less than 116; or ‘‘(B) from a number less than 116 to a lesser number. ‘‘(3) Any notification under paragraph (1)(A) shall include the 

following: ‘‘(A) The schedule for the proposed reduction. 

‘‘(B) The number of vessels that are to comprise the force of 

combatant surface vessels after the reduction. ‘‘(C) A risk assessment for a force of combatant surface vessels of the number specified under subparagraph (B) that is 

based on the same assumptions as were applied in the QDR 

2001 combatant surface force risk assessment. 

‘‘(b) PRESERVATION OF SURGE CAPABILITY.—Whenever the number of combatant surface vessels is less than 116, the Secretary of 

the Navy shall maintain on the Naval Vessel Register a sufficient 

number of combatant surface vessels to enable the Navy to regain 

a force of combatant surface vessels numbering not less than 116 

within 120 days after the date of any decision by the President to 

increase the number of combatant surface vessels. ‘‘(c) DEFINITIONS.—In this section: 

‘‘(1) The term ‘combatant surface vessels’ means cruisers, 

destroyers, and frigates that are in active service in the Navy 

or in active reserve service in the Navy. 

‘‘(2) The term ‘QDR 2001 combatant surface force risk assessment’ means the risk assessment associated with a force of 

combatant surface vessels numbering 116 that is set forth in the 

report on the quadrennial defense review submitted to Congress 

on September 30, 2001, under section 118 of this title.’’. (2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 7295 the following new item:

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‘‘7296. Combatant surface vessels: notice before reduction in number; preservation of 

surge capability.’’.

(c) EFFECTIVE DATE FOR 90–DAY WAITING PERIOD.—The provisions of subparagraph (B) of subsection (a)(1) of section 7296 of title 

10, United States Code, as added by subsection (b)(1) of this section, 

shall apply only with respect to notifications submitted under subparagraph (A) of that subsection on or after January 15, 2003.

SEC. 1022. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF 

NAVAL VESSELS. 

(a) ANNUAL NAVAL VESSEL CONSTRUCTION PLAN.—(1) Chapter 

9 of title 10, United States Code, is amended by adding at the end 

the following new section: 

‘‘§ 231. Budgeting for construction of naval vessels: annual 

plan and certification 

‘‘(a) ANNUAL NAVAL VESSEL CONSTRUCTION PLAN AND CERTIFI- CATION.—The Secretary of Defense shall include with the defense 

budget materials for a fiscal year— ‘‘(1) a plan for the construction of combatant and support 

vessels for the Navy developed in accordance with this section; 

and ‘‘(2) a certification by the Secretary that both the budget for 

that fiscal year and the future-years defense program submitted 

to Congress in relation to such budget under section 221 of this 

title provide for funding of the construction of naval vessels at 

a level that is sufficient for the procurement of the vessels provided for in the plan under paragraph (1) on the schedule provided in that plan. 

‘‘(b) ANNUAL NAVAL VESSEL CONSTRUCTION PLAN.—(1) The annual naval vessel construction plan developed for a fiscal year for 

purposes of subsection (a)(1) should be designed so that the naval 

vessel force provided for under that plan is capable of supporting 

the national security strategy of the United States as set forth in the 

most recent national security strategy report of the President under 

section 108 of the National Security Act of 1947 (50 U.S.C. 404a), 

except that, if at the time such plan is submitted with the defense 

budget materials for that fiscal year, a national security strategy report required under such section 108 has not been submitted to Congress as required by paragraph (2) or paragraph (3), if applicable, 

of subsection (a) of such section, then such annual plan should be 

designed so that the naval vessel force provided for under that plan 

is capable of supporting the ship force structure recommended in the 

report of the most recent Quadrennial Defense Review. 

‘‘(2) Each such naval vessel construction plan shall include the 

following: 

‘‘(A) A detailed program for the construction of combatant 

and support vessels for the Navy over the next 30 fiscal years. 

‘‘(B) A description of the necessary naval vessel force structure to meet the requirements of the national security strategy 

of the United States or the most recent Quadrennial Defense Review, whichever is applicable under paragraph (1). 

‘‘(C) The estimated levels of annual funding necessary to 

carry out the program, together with a discussion of the procurement strategies on which such estimated levels of annual 

funding are based. 

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‘‘(c) ASSESSMENT WHEN VESSEL CONSTRUCTION BUDGET IS IN- SUFFICIENT TO MEET APPLICABLE REQUIREMENTS.—If the budget 

for a fiscal year provides for funding of the construction of naval 

vessels at a level that is not sufficient to sustain the naval vessel 

force structure specified in the naval vessel construction plan for 

that fiscal year under subsection (a), the Secretary shall include 

with the defense budget materials for that fiscal year an assessment 

that describes and discusses the risks associated with the reduced 

force structure of naval vessels that will result from funding naval 

vessel construction at such level. Such assessment shall be coordinated in advance with the commanders of the combatant commands. ‘‘(d) DEFINITIONS.—In this section: ‘‘(1) 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. ‘‘(2) 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. ‘‘(3) The term ‘Quadrennial Defense Review’ means the review of the defense programs and policies of the United States 

that is carried out every four years under section 118 of this 

title.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘231. Budgeting for construction of naval vessels: annual plan and certification.’’.

SEC. 1023. ASSESSMENT OF THE FEASIBILITY OF THE EXPEDITED 

EQUIPPING OF A NAVY SHIP WITH A VERSION OF THE 155-

MILLIMETER ADVANCED GUN SYSTEM. 

(a) FEASIBILITY ASSESSMENT REQUIRED.—(1) The Secretary of 

the Navy shall conduct an assessment of the feasibility of the expedited equipping of a Navy ship in active or inactive service with a 

version of the 155-millimeter Advanced Gun System that is being 

developed for the DD(X) next generation, multi-mission, land attack 

surface combatant vessel. 

(2) The assessment shall include an analysis of—

(A) the actions required to achieve such equipping and the 

technical and programmatic risks associated with those actions; 

(B) the plan, schedule, and funding required to achieve 

such equipping; and 

(C) the effect (if any) that such equipping might have on the 

development program and schedule for the DD(X) vessel. 

(b) EQUIPPING ON EXPEDITED SCHEDULE.—The schedule to be 

considered in the assessment under subsection (a) shall provide for 

equipping of a ship with a version of the 155-millimeter Advanced 

Gun System on an expedited schedule that is consistent with the 

achievement of safety of operation, but not later than October 1, 

2006. 

(c) REPORT REQUIRED.—The Secretary shall submit to the congressional defense committees a report on the results of the assessment under subsection (a). The report shall be submitted at the 

same time that the President submits the budget for fiscal year 2004 

to Congress under section 1105(a) of title 31, United States Code.

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SEC. 1024. REPORT ON INITIATIVES TO INCREASE OPERATIONAL DAYS 

OF NAVY SHIPS. 

(a) REQUIREMENT FOR REPORT ON INITIATIVES.—(1) The Under 

Secretary of Defense for Acquisition, Technology, and Logistics 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 Department of Defense initiatives to increase the number of 

operational days of Navy ships as described in subsection (b). 

(2) The report shall cover the ongoing Department of Defense 

initiatives as well as any potential initiatives that are under consideration within the Department of Defense. 

(b) INITIATIVES WITHIN LIMITS OF EXISTING FLEET AND DEPLOYMENT POLICY.—In the report, the Under Secretary shall assess 

the feasibility and identify the projected effects of conducting initiatives that have the potential to increase the number of operational 

days of Navy ships available to the commanders-in-chief of the regional unified combatant commands without increasing the number 

of Navy ships and without increasing the routine lengths of deployments of Navy ships above six months. 

(c) REQUIRED FOCUS AREAS.—The report shall address, at a 

minimum, the following focus areas: 

(1) Assignment of additional ships, including submarines, 

to home ports closer to the areas of operation for the ships 

(known as ‘‘forward homeporting’’).

(2) Assignment of ships to remain in a forward area of operations, together with rotation of crews for each ship so assigned. 

(3) Retention of ships for use until the end of the full service life, together with investment of the funds necessary to support retention to that extent. 

(4) Prepositioning of additional ships with, under normal 

circumstances, small crews in a forward area of operations. 

(d) SHIP MAINTENANCE.—The report shall include an assessment of how routine programmed ship maintenance would be accomplished for Navy ships that would remain in a forward area of 

operations. 

(e) TIME FOR SUBMITTAL.—The report shall be submitted at the 

same time that the President submits the budget for fiscal year 2004 

to Congress under section 1105(a) of title 31, United States Code.

SEC. 1025. SHIP COMBAT SYSTEM INDUSTRIAL BASE. 

(a) REVIEW.—The Secretary of Defense shall conduct a review of 

the effect of the contract award announced on April 29, 2002, for 

the lead design agent for the DD(X) ship program on the industrial 

base for ship combat system development, including the industrial 

base for each of the following: ship systems integration, radar, electronic warfare, and launch systems. 

(b) REPORT REQUIRED.—Not later than March 31, 2003, the 

Secretary shall submit to the congressional defense committees a report based on the review under subsection (a). The report shall include the following: 

(1) The Secretary’s assessment of the effect of the contract 

award referred to in that subsection on ship combat system development and on the associated industrial base. 

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(2) A description of any actions that the Secretary proposes 

to ensure future competition in the ship combat system development and industrial base.

SEC. 1026. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER 

FORCE STRUCTURE. 

(a) FINDINGS.—Congress makes the following findings: 

(1) The aircraft carrier has been an integral component in 

Operation Enduring Freedom and in the homeland defense mission of Operation Noble Eagle beginning on September 11, 

2001. The aircraft carriers that have participated in Operation 

Enduring Freedom, as of May 1, 2002, are the USS Enterprise 

(CVN–65), the USS Carl Vinson (CVN–70), the USS Kitty 

Hawk (CV–63), the USS Theodore Roosevelt (CVN–71), the USS 

John C. Stennis (CVN–74), and the USS John F. Kennedy (CV–

67). The aircraft carriers that have participated in Operation 

Noble Eagle, as of May 1, 2002, are the USS George Washington (CVN–73), the USS John F. Kennedy (CV–67), and the 

USS John C. Stennis (CVN–74). 

(2) Since 1945, the United States has built 172 bases overseas, of which only 24 are currently in use. 

(3) The aircraft carrier provides an independent base of operations should no land base be available for aircraft, with carrier air wings providing the United States sea-based forwarddeployed offensive strike capability. 

(4) The aircraft carrier is an essential component of the 

Navy. 

(5) The naval tactical aircraft modernization programs are 

proceeding on schedule. 

(6) As established by the Navy, the United States requires 

the service of 15 aircraft carriers to completely fulfill all the 

naval commitments assigned to the Navy without gapping carrier presence. 

(b) SENSE OF CONGRESS.—It is the sense of Congress that the 

number of aircraft carriers of the Navy in active service should not 

be less than 12. 

(c) OPERATION ENDURING FREEDOM AND OPERATION NOBLE

EAGLE COMMENDATION.—Congress hereby commends the military 

and civilian personnel who have participated in Operation Enduring Freedom and Operation Noble Eagle.

SEC. 1027. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may 

sell Navy Drydock No. YFD–69, located in Portland, Oregon, to 

Portland Shipyard, LLC, which is the current user of the drydock. 

(b) CONDITION OF CONVEYANCE.—The conveyance under subsection (a) shall be subject to the condition that the purchaser agree 

to retain the drydock on Swan Island in Portland, Oregon, until at 

least September 30, 2007. 

(c) CONSIDERATION.—As consideration for the conveyance of the 

drydock under subsection (a), the purchaser shall pay to the Secretary an amount equal to the fair market value of the drydock at 

the time of the conveyance, as determined by the Secretary. 

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

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conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States. 

Subtitle C—Strategic Matters

SEC. 1031. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS AND DELIVERY SYSTEMS. 

(a) PLAN REQUIRED.—The Secretary of Defense and the Secretary of Energy shall jointly prepare a plan for the United States 

strategic force structure for nuclear weapons and nuclear weapons 

delivery systems for the period of fiscal years from 2003 through 

2012. The plan shall—

(1) define the range of missions assigned to strategic nuclear forces in the national defense strategy consistent with—

(A) the Quadrennial Defense Review dated September 

30, 2001, under section 118 of title 10, United States Code; 

(B) the Nuclear Posture Review dated December 2001 

under section 1041 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–262); and 

(C) other relevant planning documents; 

(2) delineate a baseline strategic force structure for such 

weapons and systems over such period consistent with such Nuclear Posture Review; 

(3) define sufficient force structure, force modernization and 

life extension plans, infrastructure, and other elements of the 

defense program of the United States associated with such 

weapons and systems that would be required to execute successfully the full range of missions defined under paragraph (1); 

(4) identify the budget plan that would be required to provide sufficient resources to execute successfully the full range of 

missions using such force structure called for in that national 

defense strategy; and 

(5)(A) evaluate options for achieving, prior to fiscal year 

2012, a posture under which the United States maintains a 

number of operationally deployed nuclear warheads at a level 

of from 1,700 to 2,200 such warheads, as outlined in the Nuclear Posture Review referred to in paragraph (1)(B); and 

(B) contain an assessment of the advantages and disadvantages of options for achieving such posture as early as 2007, including effects on cost, the dismantlement workforce, and any 

other affected matter. 

(b) REPORT.—Not later than March 1, 2003, the Secretary of 

Defense and the Secretary of Energy shall submit a report on the 

plan to the congressional defense committees.

SEC. 1032. ANNUAL REPORT ON WEAPONS TO DEFEAT HARDENED AND 

DEEPLY BURIED TARGETS. 

(a) ANNUAL REPORT.—Not later than April 1 of each year, the 

Secretary of Defense, the Secretary of Energy, and the Director of 

Central Intelligence shall jointly submit to the congressional defense 

committees, the Select Committee on Intelligence of the Senate, and 

the Permanent Select Committee on Intelligence of the House of Representatives a report on the research and development, procurement, 

and other activities undertaken during the preceding fiscal year by 

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the Department of Defense, the Department of Energy, and the intelligence community to develop weapons to defeat hardened and deeply buried targets. 

(b) REPORT ELEMENTS.—The report for a fiscal year under subsection (a) shall—

(1) include a discussion of the integration and interoperability of the activities referred to in that subsection that were 

undertaken during that fiscal year, including a discussion of 

the relevance of such activities to applicable recommendations 

by the Chairman of the Joint Chiefs of Staff, assisted under section 181(b) of title 10, United States Code, by the Joint Requirements Oversight Council; and 

(2) set forth separately a description of the activities referred to in that subsection, if any, that were undertaken during 

such fiscal year by each element of—

(A) the Department of Defense; 

(B) the Department of Energy; and 

(C) the intelligence community. 

(c) DEFINITION.—In this section, 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)). 

(d) TERMINATION.—No report is required under this section 

after the submission of the report that is due on April 1, 2007.

SEC. 1033. REPORT ON EFFECTS OF NUCLEAR EARTH-PENETRATOR 

WEAPON AND OTHER WEAPONS. 

(a) NATIONAL ACADEMY OF SCIENCES STUDY.—The Secretary of 

Defense shall request the National Academy of Sciences to conduct 

a study and prepare a report on the following: 

(1) The anticipated short-term effects and long-term effects 

of the use by the United States of a nuclear earth-penetrator 

weapon on the target area, including the effects on civilian populations in proximity to the target area at the time of or after 

such use and the effects on United States military personnel 

who after such use carry out operations or battle damage assessments in the target area. 

(2) The anticipated short-term and long-term effects on civilian population in proximity to a target area—

(A) if a non-penetrating nuclear weapon is used to attack a hard or deeply-buried target; and 

(B) if a conventional high-explosive weapon is used to 

attack an adversary’s facilities for storage or production of 

weapons of mass destruction and, as a result of such attack, radioactive, nuclear, biological, or chemical weapons 

materials, agents, or other contaminants are released or 

spread into populated areas. 

(b) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to Congress the report under subsection (a), together with any comments the Secretary 

may consider appropriate on the report. The report shall be submitted in unclassified form to the maximum extent possible, with a 

classified annex if needed. 

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Subtitle D—Reports

SEC. 1041. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF DEFENSE. 

(a) PROVISIONS OF TITLE 10, UNITED STATES CODE.—Title 10, 

United States Code, is amended as follows: 

(1)(A) Section 183 is repealed. 

(B) The table of sections at the beginning of chapter 7 is 

amended by striking the item relating to section 183. 

(2)(A) Section 230 is repealed. 

(B) The table of sections at the beginning of chapter 9 is 

amended by striking the items relating to section 230. 

(3) Section 526 is amended by striking subsection (c). 

(4) Section 721(d) is amended— (A) by striking paragraph (2); and 

(B) by striking ‘‘(1)’’ before ‘‘If an officer’’. (5) Section 1095(g) is amended— (A) by striking paragraph (2); and 

(B) by striking ‘‘(1)’’ after ‘‘(g)’’. (6) Section 1798 is amended by striking subsection (d). 

(7) Section 1799 is amended by striking subsection (d). 

(8) Section 2220 is amended— (A) by striking subsections (b) and (c); 

(B) by striking ‘‘(1)’’ after ‘‘ESTABLISHMENT OF

GOALS.—’’; and 

(C) by striking ‘‘(2) The’’ and inserting ‘‘(b) EVALUATION

OF COST GOALS.—The’’. (9) Section 2350a(g) is amended by striking paragraph (4). 

(10) Section 2350f is amended by striking subsection (c). 

(11) Section 2350k is amended by striking subsection (d). 

(12) Section 2367(d) is amended by striking ‘‘EFFORT.—(1) 

In the’’ and all that follows through ‘‘(2) After the close of’’ and 

inserting ‘‘EFFORT.—After the close of’’. 

(13) Section 2391 is amended by striking subsection (c). 

(14) Section 2486(b)(12) is amended by striking ‘‘, except 

that’’ and all that follows and inserting the following: ‘‘, except 

that the Secretary shall notify Congress of any addition of, or 

change in, a merchandise category under this paragraph.’’. 

(15) Section 2492 is amended by striking subsection (c) and 

inserting the following: 

‘‘(c) NOTIFICATION OF CONDITIONS NECESSITATING RESTRICTIONS.—The Secretary of Defense shall notify Congress of any 

change proposed or made to any of the host nation laws or any of 

the treaty obligations of the United States, and any changed conditions within host nations, if the change would necessitate the use of 

quantity or other restrictions on purchases in commissary and exchange stores located outside the United States.’’. 

(16) Section 2537(a) is amended by striking ‘‘$100,000’’ and 

inserting ‘‘$10,000,000’’. 

(17) Section 2611 is amended by striking subsection (e). 

(18) Section 2667(d) is amended by striking paragraph (3). 

(19) Section 4416 is amended by striking subsection (f). 

(20) Section 5721(f) is amended—

(A) by striking paragraph (2); and 

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(B) by striking ‘‘(1)’’ after the subsection heading. 

(b) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

1995.—Section 553(b) of the National Defense Authorization Act for 

Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2772; 10 U.S.C. 

4331 note) is amended by striking the last sentence. 

(c) BALLISTIC MISSILE DEFENSE ACT OF 1995.—Section 234 of 

the Ballistic Missile Defense Act of 1995 (subtitle C of title II of 

Public Law 104–106; 10 U.S.C. 2431 note) is amended by striking 

subsection (f).

SEC. 1042. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS 

TO CONGRESS BE ACCOMPANIED BY ELECTRONIC 

VERSION. 

Section 480(a) of title 10, United States Code, is amended by 

striking ‘‘shall, upon request’’ and all that follows through ‘‘(or 

each’’ and inserting ‘‘shall provide to Congress (or’’.

SEC. 1043. ANNUAL REPORT ON THE CONDUCT OF MILITARY OPERATIONS CONDUCTED AS PART OF OPERATION ENDURING 

FREEDOM. 

(a) REPORTS REQUIRED.—(1) The Secretary of Defense shall 

submit to the congressional committees specified in subsection (d) 

an annual report on the conduct of military operations conducted as 

part of Operation Enduring Freedom. The first report, which shall 

include a definition of the military operations carried out as part 

of Operation Enduring Freedom, shall be submitted not later than 

June 15, 2003. Subsequent reports shall be submitted not later than 

June 15 each year, and the final report shall be submitted not later 

than 180 days after the date (as determined by the Secretary of Defense) of the cessation of hostilities undertaken as part of Operation 

Enduring Freedom. 

(2) Each report under this section shall be prepared in consultation with the Chairman of the Joint Chiefs of Staff, the commander 

of the United States Central Command, the Director of Central Intelligence, and such other officials as the Secretary considers appropriate. 

(3) Each such report shall be submitted in both a classified 

form and an unclassified form, as necessary. 

(b) SPECIAL MATTERS TO BE INCLUDED.—Each report under 

this section shall include the following: 

(1) A discussion of the command, control, coordination, and 

support relationship between United States special operations 

forces and Central Intelligence Agency elements participating in 

Operation Enduring Freedom and any lessons learned from the 

joint conduct of operations by those forces and elements. 

(2) Recommendations to improve operational readiness and 

effectiveness of these forces and elements. 

(c) OTHER MATTERS TO BE INCLUDED.—Each report under this 

section shall include a discussion, with a particular emphasis on 

accomplishments and shortcomings, of the following matters with 

respect to Operation Enduring Freedom: 

(1) The political and military objectives of the United 

States. 

(2) The military strategy of the United States to achieve 

those political and military objectives. 

(3) The concept of operations, including any new operational concepts, for the operation. 

192

(4) The benefits and disadvantages of operating with local 

opposition forces. 

(5) The benefits and disadvantages of operating in a coalition with the military forces of allied and friendly nations.

(6) The cooperation of nations in the region for overflight, 

basing, command and control, and logistic and other support. 

(7) The conduct of relief operations both during and after 

the period of hostilities. 

(8) The conduct of close air support (CAS), particularly 

with respect to the timeliness, efficiency, and effectiveness of 

such support. 

(9) The use of unmanned aerial vehicles for intelligence, 

surveillance, reconnaissance, and combat support to operational 

forces. 

(10) The use and performance of United States and coalition military equipment, weapon systems, and munitions. 

(11) The effectiveness of reserve component forces, including 

their use and performance in the theater of operations. 

(12) The importance and effectiveness of the International 

Security Assistance Force. 

(13) The importance and effectiveness of United States civil 

affairs forces. 

(14) The anticipated duration of the United States military 

presence in Afghanistan. 

(15) The most critical lessons learned that could lead to 

long-term doctrinal, organizational, and technological changes. 

(d) CONGRESSIONAL COMMITTEES.—The committees referred to 

in subsection (a)(1) are the following: 

(1) The Committee on Armed Services and the Select Committee on Intelligence of the Senate. 

(2) The Committee on Armed Services and the Permanent 

Select Committee on Intelligence of the House of Representatives.

SEC. 1044. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE 

FIGHTING STAFFS AT MILITARY INSTALLATIONS. 

Not later than May 31, 2003, the Secretary of Defense shall submit to Congress a report on the actions being undertaken to ensure 

that the fire fighting staffs at military installations are adequate 

under applicable Department of Defense regulations.

SEC. 1045. REPORT ON DESIGNATION OF CERTAIN LOUISIANA HIGHWAY AS DEFENSE ACCESS ROAD. 

Not later than March 1, 2003, the Secretary of the Army shall 

submit to the congressional defense committees a report containing 

the results of a study on the advisability of designating Louisiana 

Highway 28 between Alexandria, Louisiana, and Leesville, Louisiana, a road providing access to the Joint Readiness Training 

Center, Louisiana, and to Fort Polk, Louisiana, as a defense access 

road for purposes of section 210 of title 23, United States Code. 

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Subtitle E—Extension of Expiring 

Authorities

SEC. 1051. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE 

TO SELL AIRCRAFT AND AIRCRAFT PARTS FOR USE IN RESPONDING TO OIL SPILLS. 

(a) FOUR-YEAR EXTENSION.—Section 740 of the Wendell H. 

Ford Aviation Investment and Reform Act for the 21st Century 

(Public Law 106–181; 114 Stat. 173; 10 U.S.C. 2576 note) is amended—

(1) in subsection (a)(1), by striking ‘‘, during the period beginning on the date of the enactment of this Act and ending 

September 30, 2002,’’; and 

(2) by adding at the end the following new subsection: 

‘‘(i) EXPIRATION OF AUTHORITY.—The authority to sell aircraft 

and aircraft parts under this section expires on September 30, 

2006.’’. 

(b) ADDITIONAL REPORT.—Subsection (f) of such section is 

amended by striking ‘‘March 31, 2002’’ and inserting ‘‘March 31, 

2006’’.

SEC. 1052. SIX-MONTH EXTENSION OF EXPIRING GOVERNMENTWIDE 

INFORMATION SECURITY REQUIREMENTS; CONTINUED 

APPLICABILITY OF EXPIRING GOVERNMENTWIDE INFORMATION SECURITY REQUIREMENTS TO THE DEPARTMENT 

OF DEFENSE. 

(a) SIX-MONTH EXTENSION OF EXPIRING GOVERNMENTWIDE REQUIREMENTS.—Section 3536 of title 44, United States Code, is 

amended to read as follows: 

‘‘§ 3536. Expiration 

‘‘This subchapter shall not be in effect after May 31, 2003.’’. 

(b) CONTINUED APPLICABILITY OF EXPIRING GOVERNMENTWIDE

REQUIREMENTS TO DEPARTMENT OF DEFENSE.—(1) Chapter 131 of 

title 10, United States Code, is amended by inserting after section 

2224 the following new section: 

‘‘§ 2224a. Information security: continued applicability of expiring Governmentwide requirements to the Department of Defense 

‘‘(a) IN GENERAL.—The provisions of subchapter II of chapter 35 

of title 44 shall continue to apply through September 30, 2004, with 

respect to the Department of Defense, notwithstanding the expiration 

of authority under section 3536 of such title. 

‘‘(b) RESPONSIBILITIES.—In administering the provisions of subchapter II of chapter 35 of title 44 with respect to the Department 

of Defense after the expiration of authority under section 3536 of 

such title, the Secretary of Defense shall perform the duties set forth 

in that subchapter for the Director of the Office of Management and 

Budget.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 2224 the following new item:

‘‘2224a. Information security: continued applicability of expiring Governmentwide requirements to the Department of Defense.’’.

194

SEC. 1053. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY 

OF DEFENSE TO ENGAGE IN COMMERCIAL ACTIVITIES AS 

SECURITY FOR INTELLIGENCE COLLECTION ACTIVITIES 

ABROAD. 

Section 431(a) of title 10, United States Code, is amended by 

striking ‘‘December 31, 2002’’ and inserting ‘‘December 31, 2004’’. 

Subtitle F—Other Matters

SEC. 1061. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE AUTHORIZATION LEGISLATIVE PROPOSAL. 

(a) IN GENERAL.—Chapter 2 of title 10, United States Code, is 

amended by inserting after section 113 the following new section:

‘‘§ 113a. Transmission of annual defense authorization request 

‘‘(a) TIME FOR TRANSMITTAL.—The Secretary of Defense shall 

transmit to Congress the annual defense authorization request for 

a fiscal year during the first 30 days after the date on which the 

President transmits to Congress the budget for that fiscal year pursuant to section 1105 of title 31. ‘‘(b) DEFENSE AUTHORIZATION REQUEST DEFINED.—In this section, the term ‘defense authorization request’, with respect to a fiscal 

year, means a legislative proposal submitted to Congress for the enactment of the following: ‘‘(1) Authorizations of appropriations for that fiscal year, as 

required by section 114 of this title. ‘‘(2) Personnel strengths for that fiscal year, as required by 

section 115 of this title. ‘‘(3) Any other matter that is proposed by the Secretary of 

Defense to be enacted as part of the annual defense authorization bill for that fiscal year.’’. (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating 

to section 113 the following new item:

‘‘113a. Transmission of annual defense authorization request.’’.

SEC. 1062. TECHNICAL AND CLERICAL AMENDMENTS. 

(a) TITLE 10, UNITED STATES CODE.—Title 10, United States 

Code, is amended as follows: 

(1) Section 153 is amended— (A) by inserting ‘‘(a) PLANNING; ADVICE; POLICY FOR- MULATION.—’’ at the beginning of the text; and 

(B) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. 

(2) Section 624(d)(1) is amended by striking ‘‘subsection 

(d)(2)’’ in the second sentence and inserting ‘‘paragraph (2)’’. 

(3) Section 661(b)(2) is amended by striking ‘‘the date of the 

enactment of the National Defense Authorization Act for Fiscal 

Year 2002’’ and inserting ‘‘December 28, 2001,’’. 

(4) Section 662(a)(2) is amended—

(A) in subparagraph (A), by striking ‘‘during the threeyear period beginning on the date of the enactment of the 

National Defense Authorization Act for Fiscal Year 2002,’’

and inserting ‘‘during the period beginning on December 

28, 2001, and ending on December 27, 2004,’’; and 

195

(B) in subparagraph (B), by striking ‘‘after the end of 

the period specified in subparagraph (A)’’ and inserting 

‘‘after December 27, 2004’’. 

(5) Section 663(e)(2) is amended by striking ‘‘Armed Forces 

Staff College’’ and inserting ‘‘Joint Forces Staff College’’. 

(6) Section 1451(c)(3) is amended by striking ‘‘section’’ before ‘‘clause’’. 

(7) Section 2162(b)(2) is amended by striking ‘‘the date of 

the enactment of this paragraph’’ and inserting ‘‘December 28, 

2001,’’. 

(8) Section 2330(c) is amended by inserting a comma after 

‘‘a task order’’. 

(9) Section 2399(a)(2) is amended—

(A) in the matter preceding subparagraph (A), by striking ‘‘means—’’ and inserting ‘‘means a conventional weapons system that—’’; and 

(B) in subparagraph (A), by striking ‘‘a conventional 

weapons system that’’. 

(10)(A) Section 2410h is transferred to the end of subchapter IV of chapter 87 and redesignated as section 1747. 

(B) The item relating to that section in the table of sections 

at the beginning of chapter 141 is transferred to the end of the 

table of sections at the beginning of subchapter IV of chapter 87 

and amended to reflect the redesignation made by subparagraph (A). 

(11) Section 2676(a) is amended by inserting an open parenthesis before ‘‘41 U.S.C.’’. 

(12) Section 2677 is amended by striking subsection (c). 

(13) Section 2680(e) is amended by striking ‘‘the’’ after ‘‘the 

Committee on’’ the first place it appears. 

(14) Section 2815(b) is amended by striking ‘‘for fiscal year 

2003 and each fiscal year thereafter’’ and inserting ‘‘for any fiscal year’’. 

(15) Section 2828(b)(2) is amended by inserting ‘‘time’’ after 

‘‘from time to’’. 

(16) Sections 3755, 6257, and 8755, as added by section 

8143(c) of Public Law 107–248 (116 Stat. 1570), are amended 

by striking ‘‘the date of the enactment of this section’’ and inserting ‘‘October 23, 2002’’. 

(b) TITLE 14, UNITED STATES CODE.—Title 14, United States 

Code, is amended as follows: 

(1) Section 505, as added by section 8143(c)(4) of Public 

Law 107–248 (116 Stat. 1571), is amended by striking ‘‘the date 

of the enactment of this section’’ and inserting ‘‘October 23, 

2002’’. 

(2) Section 516(c) is amended by striking ‘‘his section’’ and 

inserting ‘‘this section’’.

(c) TITLE 37, UNITED STATES CODE.—Title 37, United States 

Code, is amended as follows: 

(1) Section 302j(a) is amended by striking ‘‘subsection (c)’’

and inserting ‘‘subsection (d)’’. 

(2) Section 324(b) is amended by striking ‘‘(1)’’ before ‘‘The 

Secretary’’. 

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(d) PUBLIC LAW 107–248.—Section 8118(a) of Public Law 107– 248 (116 Stat. 1565) is amended by striking ‘‘subsection (i)’’ and inserting ‘‘subsection (j)’’. (e) PUBLIC LAW 107–217.—Effective as if included therein as 

originally enacted, section 3(b) of Public Law 107–217 is amended— (1) in paragraph (8) (116 Stat. 1295), by inserting ‘‘the second place it appears’’ before the semicolon; and 

(2) in paragraph (34) (116 Stat. 1298), by striking ‘‘section 

7545(a)’’ and inserting ‘‘section 7545(c)’’. (f) PUBLIC LAW 107–107.—Effective as of December 28, 2001, 

and as if included therein as enacted, the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107) is amended 

as follows: 

(1) Section 602(a)(2) (115 Stat. 1132) is amended by striking ‘‘an’’ in the first quoted matter. 

(2) Section 1212(a)(5) (115 Stat. 1249) is amended by inserting ‘‘in’’ after the paragraph designation. 

(3) Section 1410(a)(3)(C) (115 Stat. 1266) by inserting ‘‘both 

places it appears’’ before ‘‘and inserting’’. (4) Section 3007(d)(1)(C) (115 Stat. 1352) is amended by 

striking ‘‘2905(b)(7)(B)(iv)’’ and inserting ‘‘2905(b)(7)(C)(iv)’’. (g) PUBLIC LAW 106–398.—Effective as of October 30, 2000, and 

as if included therein as enacted, the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law 

by Public Law 106–398) is amended as follows: 

(1) Section 577(b)(2) (114 Stat. 1654A–140) is amended by 

striking ‘‘Federal’’ in the quoted matter and inserting ‘‘Department of Defense’’. (2) Section 612(c)(4)(B) (114 Stat. 1654A–150) is amended 

by striking the comma at the end of the first quoted matter. 

(h) PUBLIC LAW 106–246.—Section 136 of Public Law 106–246 

(114 Stat. 520) is amended— (1) in subsection (d)(7), by striking subparagraphs (B) and 

(C) and inserting the following new subparagraphs: 

‘‘(B) Section 1302 of title 40, United States Code. 

‘‘(C) Subtitle I of title 40, United States Code.’’; and 

(2) in subsection (e)(3), by striking subparagraph (B) and 

inserting the following new subparagraph: 

‘‘(B) Subtitle I of title 40, United States Code.’’. 

(i) PUBLIC LAW 106–181.—Section 740(a)(1) of the Wendell H. 

Ford Aviation Investment and Reform Act for the 21st Century (10 

U.S.C. 2576 note) is amended by striking ‘‘section 202 of the Federal 

Property and Administrative Services Act of 1949 (40 U.S.C. 483)’’

and inserting ‘‘subchapter II of chapter 5 of title 40, United States 

Code,’’. 

(j) PUBLIC LAW 106–65.—The National Defense Authorization 

Act for Fiscal Year 2000 (Public Law 106–65) is amended as follows: 

(1) Section 573(b) (10 U.S.C. 513 note) is amended by inserting a period at the end of paragraph (2). 

(2) Section 1305(6) (22 U.S.C. 5952 note) is amended by 

striking the first period after ‘‘facility’’. (k) PUBLIC LAW 104–307.—Section 2(a)(1) of the Wildfire Suppression Aircraft Transfer Act of 1996 (10 U.S.C. 2576 note) is 

amended by striking ‘‘section 202 of the Federal Property and AdVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00220 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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ministrative Services Act of 1949 (40 U.S.C. 483)’’ and inserting ‘‘subchapter II of chapter 5 of title 40, United States Code,’’. (l) PUBLIC LAW 103–337.—Section 2814 of the National Defense 

Authorization Act for Fiscal Year 1995 (Public Law 103–337) is 

amended by striking ‘‘the Public Buildings Act of 1959 (40 U.S.C. 

601 et seq.) and the Federal Property and Administrative Services 

Act of 1949 (40 U.S.C. 471 et seq.)’’ and inserting ‘‘chapter 5 or 33 

of title 40, United States Code’’. (m) PUBLIC LAW 101–510.—The National Defense Authorization 

Act for Fiscal Year 1991 (Public Law 101–510) is amended as follows: 

(1) Section 2905(b)(1) (10 U.S.C. 2687 note) is amended— (A) in subparagraph (A), by striking ‘‘section 202 of the 

Federal Property and Administrative Services Act of 1949 

(40 U.S.C. 483)’’ and inserting ‘‘subchapter II of chapter 5 

of title 40, United States Code’’; and 

(B) in subparagraph (B), by striking ‘‘section 203 of 

that Act (40 U.S.C. 484)’’ and inserting ‘‘subchapter III of 

chapter 5 of title 40, United States Code’’. (2) Section 2905(b)(4)(F) is amended by striking ‘‘sections 

202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484)’’ and inserting ‘‘subchapters II and III of chapter 5 of title 40, United States 

Code,’’. 

(3) Section 2905(b)(7) is amended by striking ‘‘section 

203(k) of the Federal Property and Administrative Services Act 

of 1949 (40 U.S.C. 484(k))’’ in subparagraphs (K)(v), (L)(iv)(V), 

and (P) and inserting ‘‘section 550 of title 40, United States 

Code,’’. 

(4) Section 2926(d)(2) is amended by striking ‘‘title IX of the 

Federal Property and Administrative Services Act (Public Law 

92–582; 40 U.S.C. 541 et seq., as amended)’’ and inserting ‘‘chapter 11 of title 40, United States Code’’. (n) PUBLIC LAW 100–526.—The Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100–

526) is amended as follows: 

(1) Section 204(b)(1) (10 U.S.C. 2687 note) is amended—

(A) in subparagraph (A), by striking ‘‘section 202 of the 

Federal Property and Administrative Services Act of 1949 

(40 U.S.C. 483)’’ and inserting ‘‘subchapter II of chapter 5 

of title 40, United States Code’’; and 

(B) in subparagraph (B), by striking ‘‘section 203 of 

that Act (40 U.S.C. 484)’’ and inserting ‘‘subchapter III of 

chapter 5 of title 40, United States Code’’. 

(2) Section 204(b)(4)(F) is amended by striking ‘‘sections 

202 and 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 483, 484)’’ and inserting 

‘‘subchapters II and III of chapter 5 of title 40, United States 

Code,’’. 

(o) OTHER LAWS.—(1) Section 502(a) of the National Emergencies Act (50 U.S.C. 1651(a)) is amended by striking paragraph 

(2) and redesignating paragraphs (3) through (7) as paragraphs (1) 

through (5), respectively. 

(2) Section 10(b)(8) of the Military Selective Service Act (50 

U.S.C. App. 460(b)(8)) is amended by striking ‘‘Public Law 26’’ and 

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all that follows through the period at the end of the paragraph and 

inserting ‘‘the Act of March 31, 1947 (50 U.S.C. App. 321 et seq.).’’. 

(3) The Defense Production Act of 1950 is amended in both section 305(i) and section 306(j) (50 U.S.C. App. 2095(i), 2096(j))—

(A) in the first sentence, by striking ‘‘the Act entitled’’ and 

all that follows through the period at the end of the sentence 

and inserting ‘‘subchapter IV of chapter 31 of title 40, United 

States Code.’’; and 

(B) in the last sentence, by striking ‘‘and section 276(c) of 

title 40’’.

SEC. 1063. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES 

MAINTAINED BY DEPARTMENT OF DEFENSE FOR IDENTIFICATION OF HUMAN REMAINS. 

(a) IN GENERAL.—Chapter 80 of title 10, United States Code, is 

amended by inserting after section 1565 the following new section:

‘‘§ 1565a. DNA samples maintained for identification of 

human remains: use for law enforcement purposes 

‘‘(a) COMPLIANCE WITH COURT ORDER.—(1) Subject to paragraph (2), if a valid order of a Federal court (or military judge) so 

requires, an element of the Department of Defense that maintains a 

repository of DNA samples for the purpose of identification of 

human remains shall make available, for the purpose specified in 

subsection (b), such DNA samples on such terms and conditions as 

such court (or military judge) directs. 

‘‘(2) A DNA sample with respect to an individual shall be provided under paragraph (1) in a manner that does not compromise 

the ability of the Department of Defense to maintain a sample with 

respect to that individual for the purpose of identification of human 

remains. 

‘‘(b) COVERED PURPOSE.—The purpose referred to in subsection 

(a) is the purpose of an investigation or prosecution of a felony, or 

any sexual offense, for which no other source of DNA information 

is reasonably available. 

‘‘(c) DEFINITION.—In this section, the term ‘DNA sample’ has 

the meaning given such term in section 1565(c) of this title.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating 

to section 1565 the following new item:

‘‘1565a. DNA samples maintained for identification of human remains: use for law 

enforcement purposes.’’.

SEC. 1064. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE 

SERVICES DURING PERIODS OF EMERGENCY. 

(a) NATIONAL FOREIGN LANGUAGE SKILLS REGISTRY.—(1) 

Chapter 81 of title 10, United States Code, is amended by inserting 

after section 1596a the following new section: 

‘‘§ 1596b. Foreign language proficiency: National Foreign 

Language Skills Registry 

‘‘(a) ESTABLISHMENT.—(1) The Secretary of Defense may establish and maintain a registry of persons who—

‘‘(A) have proficiency in one or more critical foreign languages; 

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‘‘(B) are willing to provide linguistic services to the United 

States in the interests of national security during war or a national emergency; and 

‘‘(C) meet the eligibility requirements of subsection (b). 

‘‘(2) The registry shall be known as the ‘National Foreign Language Skills Registry’ (in this section referred to as the ‘Registry’). 

‘‘(b) ELIGIBLE PERSONS.—To be eligible for listing on the Registry, a person—

‘‘(1) must be—

‘‘(A) a national of the United States (as defined in section 101(a)(22) of the Immigration and Nationality Act (8 

U.S.C. 1101(a)(22))); or 

‘‘(B) an alien lawfully admitted for permanent residence (as defined in section 101(a)(20) of the Immigration 

and Nationality Act (8 U.S.C. 1101(a)(20))); 

‘‘(2) shall express willingness, in a form and manner prescribed by the Secretary—

‘‘(A) to provide linguistic services for a foreign language as described in subsection (a); and 

‘‘(B) to be listed on the Registry; and 

‘‘(3) shall meet such language proficiency and other selection criteria as may be prescribed by the Secretary. 

‘‘(c) REGISTERED INFORMATION.—The Registry shall consist of 

the following: 

‘‘(1) The names of eligible persons selected by the Secretary 

for listing on the Registry. 

‘‘(2) Such other information on such persons as the Secretary determines pertinent to the use of such persons to provide 

linguistic services as described in subsection (a). 

‘‘(d) PROTECTION OF PRIVACY.—The Secretary may withhold 

from public disclosure the information maintained in the Registry 

in accordance with section 552a of title 5. 

‘‘(e) DESIGNATION OF CRITICAL FOREIGN LANGUAGES.—The Secretary shall designate those languages that are critical foreign languages for the purposes of this section. The Secretary shall make 

such a designation for any foreign language for which there is a 

shortage of experts in translation or interpretation available to meet 

requirements of the Secretary or of the head of any other department 

or agency of the United States for translation or interpretation in 

the national security interests of the United States. 

‘‘(f) LINGUISTIC SERVICES DEFINED.—In this section, the term 

‘linguistic services’ means translation or interpretation of communication in a foreign language.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after section 1596a the following new item:

‘‘1596b. Foreign language proficiency: National Foreign Language Skills Registry.’’.

(b) AUTHORITY TO ACCEPT VOLUNTARY TRANSLATION AND INTERPRETATION SERVICES.—Section 1588(a) of title 10, United States 

Code, is amended by adding after paragraph (6), as added by section 553, the following new paragraph: ‘‘(7) Voluntary translation or interpretation services offered 

with respect to a foreign language by a person (A) who is registered for such foreign language on the National Foreign Language Skills Registry under section 1596b of this title, or (B) 

200

who otherwise is approved to provide voluntary translation or 

interpretation services for national security purposes, as determined by the Secretary of Defense.’’.

SEC. 1065. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM. 

(a) AUTHORITY.—Chapter 3 of title 10, United States Code, is 

amended by inserting after section 127a the following new section: 

‘‘§ 127b. Assistance in combating terrorism: rewards 

‘‘(a) AUTHORITY.—The Secretary of Defense may pay a monetary 

amount, or provide a payment-in-kind, to a person as a reward for 

providing United States Government personnel with information or 

nonlethal assistance that is beneficial to—

‘‘(1) an operation or activity of the armed forces conducted 

outside the United States against international terrorism; or 

‘‘(2) force protection of the armed forces. 

‘‘(b) LIMITATION.—The amount or value of a reward provided 

under this section may not exceed $200,000. 

‘‘(c) DELEGATION OF AUTHORITY.—(1) The authority of the Secretary of Defense under subsection (a) may be delegated only—

‘‘(A) to the Deputy Secretary of Defense and an Under Secretary of Defense, without further redelegation; and 

‘‘(B) to the commander of a combatant command, but only 

for a reward in an amount or with a value not in excess of 

$50,000. 

‘‘(2) A commander of a combatant command to whom authority 

to provide rewards under this section is delegated under paragraph 

(1) may further delegate that authority, but only for a reward in an 

amount or with a value not in excess of $2,500, except that such a 

delegation may be made to the commander’s deputy commander 

without vegard to such limitation. 

‘‘(d) COORDINATION.—(1) The Secretary of Defense shall prescribe policies and procedures for the offering and making of rewards under this section and otherwise for administering the authority under this section. Such polices and procedures shall be prescribed in consultation with the Secretary of State and the Attorney 

General and shall ensure that the making of a reward under this 

section does not duplicate or interfere with the payment of a reward 

authorized by the Secretary of State or the Attorney General. 

‘‘(2) The Secretary of Defense shall consult with the Secretary 

of State regarding the making of any reward under this section in 

an amount or with a value in excess of $100,000. 

‘‘(e) PERSONS NOT ELIGIBLE.—The following persons are not eligible to receive a reward under this section: 

‘‘(1) A citizen of the United States. 

‘‘(2) An officer or employee of the United States. 

‘‘(3) An employee of a contractor of the United States. 

‘‘(f) ANNUAL REPORT.—(1) Not later than December 1 of each 

year, the Secretary of Defense shall submit to the Committees on 

Armed Services of the Senate and the House of Representatives a report on the administration of the rewards program under this section during the preceding fiscal year. 

‘‘(2) Each report for a fiscal year under this subsection shall include the following: 

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‘‘(A) Information on the total amount expended during that 

fiscal year to carry out the rewards program under this section 

during that fiscal year. 

‘‘(B) Specification of the amount, if any, expended during 

that fiscal year to publicize the availability of rewards under 

this section. 

‘‘(C) With respect to each reward provided during that fiscal year—

‘‘(i) the amount or value of the reward and whether the 

reward was provided as a monetary payment or in some 

other form; 

‘‘(ii) the recipient of the reward; and 

‘‘(iii) a description of the information or assistance for 

which the reward was paid, together with an assessment of 

the significance and benefit of the information or assistance.

‘‘(3) The Secretary may submit the report in classified form if 

the Secretary determines that it is necessary to do so. 

‘‘(g) DETERMINATIONS BY THE SECRETARY.—A determination by 

the Secretary under this section is final and conclusive and is not 

subject to judicial review.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating 

to section 127a the following new item:

‘‘127b. Assistance in combating terrorism: rewards.’’.

SEC. 1066. PROVISION OF SPACE AND SERVICES TO MILITARY WELFARE SOCIETIES. 

(a) AUTHORITY TO PROVIDE SPACE AND SERVICES.—Chapter 

152 of title 10, United States Code, is amended by adding at the 

end the following new section: 

‘‘§ 2566. Space and services: provision to military welfare societies 

‘‘(a) AUTHORITY TO PROVIDE SPACE AND SERVICES.—The Secretary of a military department may provide, without charge, space 

and services under the jurisdiction of that Secretary to a military 

welfare society. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) The term ‘military welfare society’ means the following: 

‘‘(A) The Army Emergency Relief Society. 

‘‘(B) The Navy-Marine Corps Relief Society. 

‘‘(C) The Air Force Aid Society, Inc. 

‘‘(2) The term ‘services’ includes lighting, heating, cooling, 

electricity, office furniture, office machines and equipment, telephone and other information technology services (including installation of lines and equipment, connectivity, and other associated services), and security systems (including installation 

and other associated expenses).’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following 

new item:

‘‘2566. Space and services: provision to military welfare societies.’’.

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SEC. 1067. PREVENTION AND MITIGATION OF CORROSION OF MILITARY EQUIPMENT AND INFRASTRUCTURE. 

(a) IN GENERAL.—(1) Chapter 131 of title 10, United States 

Code, is amended by adding at the end the following new section:

‘‘§ 2228. Military equipment and infrastructure: prevention 

and mitigation of corrosion 

‘‘(a) DESIGNATION OF RESPONSIBLE OFFICIAL OR ORGANIZATION.—The Secretary of Defense shall designate an officer or employee of the Department of Defense, or a standing board or committee of the Department of Defense, as the senior official or organization responsible in the Department 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. 

‘‘(b) DUTIES.—(1) The official or organization designated under 

subsection (a) shall oversee and coordinate efforts throughout the 

Department of Defense to prevent and mitigate corrosion of the military equipment and infrastructure of the Department. The duties 

under this paragraph shall include the duties specified in paragraphs (2) through (5). 

‘‘(2) The designated official or organization shall develop and 

recommend any policy guidance on the prevention and mitigation of 

corrosion to be issued by the Secretary of Defense. 

‘‘(3) The designated official or organization shall review the programs and funding levels proposed by the Secretary of each military 

department during the annual internal Department of Defense 

budget review process as those programs and funding proposals relate to programs and funding for the prevention and mitigation of 

corrosion and shall submit to the Secretary of Defense recommendations regarding those programs and proposed funding levels. 

‘‘(4) The designated official or organization shall provide oversight and coordination of the efforts within the Department of Defense to prevent or mitigate corrosion during—

‘‘(A) the design, acquisition, and maintenance of military 

equipment; and 

‘‘(B) the design, construction, and maintenance of infrastructure. 

‘‘(5) The designated official or organization shall monitor acquisition practices within the Department of Defense—

‘‘(A) to ensure that the use of corrosion prevention technologies and the application of corrosion prevention treatments 

are fully considered during research and development in the acquisition process; and 

‘‘(B) to ensure that, to the extent determined appropriate for 

each acquisition program, such technologies and treatments are 

incorporated into that program, particularly during the engineering and design phases of the acquisition process. 

‘‘(c) LONG-TERM STRATEGY.—(1) The Secretary of Defense shall 

develop and implement a long-term strategy to reduce corrosion and 

the effects of corrosion on the military equipment and infrastructure 

of the Department of Defense. 

‘‘(2) The strategy under paragraph (1) shall include the following: 

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‘‘(A) Expansion of the emphasis on corrosion prevention and 

mitigation within the Department of Defense to include coverage of infrastructure. 

‘‘(B) Application uniformly throughout the Department of 

Defense of requirements and criteria for the testing and certification of new corrosion-prevention technologies for equipment 

and infrastructure with similar characteristics, similar missions, or similar operating environments. 

‘‘(C) Implementation of programs, including supporting 

databases, to ensure that a focused and coordinated approach 

is taken throughout the Department of Defense to collect, review, validate, and distribute information on proven methods 

and products that are relevant to the prevention of corrosion of 

military equipment and infrastructure. 

‘‘(D) Establishment of a coordinated research and development program for the prevention and mitigation of corrosion for 

new and existing military equipment and infrastructure that includes a plan to transition new corrosion prevention technologies into operational systems. 

‘‘(3) The strategy shall include, for the matters specified in 

paragraph (2), the following: 

‘‘(A) Policy guidance. 

‘‘(B) Performance measures and milestones. 

‘‘(C) An assessment of the necessary personnel and funding 

necessary to accomplish the long-term strategy. 

‘‘(d) DEFINITIONS.—In this section: 

‘‘(1) The term ‘corrosion’ means the deterioration of a material or its properties due to a reaction of that material with its 

chemical environment. 

‘‘(2) The term ‘military equipment’ includes all weapon systems, weapon platforms, vehicles, and munitions of the Department of Defense, and the components of such items. 

‘‘(3) The term ‘infrastructure’ includes all buildings, structures, airfields, port facilities, surface and subterranean utility 

systems, heating and cooling systems, fuel tanks, pavements, 

and bridges.’’.

(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘2228. Military equipment and infrastructure: prevention and mitigation of corrosion.’’.

(b) DEADLINE FOR DESIGNATION OF RESPONSIBLE OFFICIAL OR

ORGANIZATION.—The Secretary of Defense shall designate an officer, 

employee, or standing board or committee of the Department of Defense under subsection (a) of section 2228 of title 10, United States 

Code, as added by subsection (a), not later than 90 days after the 

date of the enactment of this Act. 

(c) INTERIM REPORT.—When the President submits the budget 

for fiscal year 2004 to Congress pursuant to section 1105(a) of title 

31, United States Code, the Secretary of Defense shall submit to 

Congress a report regarding the actions taken to that date under 

section 2228 of title 10, United States Code, as added by subsection 

(a). That report shall include the following: 

(1) A description of the organizational structure for the personnel carrying out the responsibilities of the official or organiVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00227 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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zation designated under subsection (a) of that section with respect to the prevention and mitigation of corrosion. 

(2) An outline for the long-term strategy for prevention and 

mitigation of corrosion required by subsection (c) of that section 

and milestones for development of that strategy. 

(d) DEADLINE FOR LONG-TERM STRATEGY.—The Secretary of 

Defense shall submit to Congress a report setting forth the long-term 

strategy required under subsection (c) of section 2228 of title 10, 

United States Code, as added by subsection (a), not later than one 

year after the date of the enactment of this Act. 

(e) GAO REVIEW.—The Comptroller General shall monitor the 

implementation of the long-term strategy required under subsection 

(c) of section 2228 of title 10, United States Code, as added by subsection (a), and, not later than 18 months after the date of the enactment of this Act, shall submit to Congress an assessment of the 

extent to which that strategy has been implemented.

SEC. 1068. TRANSFER OF HISTORIC DF–9E PANTHER AIRCRAFT TO 

WOMEN AIRFORCE SERVICE PILOTS MUSEUM. 

(a) AUTHORITY TO CONVEY.—The Secretary of the Navy may 

convey, without consideration, to the Women Airforce Service Pilots 

Museum in Quartzsite, Arizona (in this section referred to as the 

‘‘W.A.S.P. Museum’’), all right, title, and interest of the United 

States in and to a DF–9E Panther aircraft (Bureau Number 

125316). The conveyance shall be made by means of a conditional 

deed of gift. 

(b) CONDITION OF AIRCRAFT.—The aircraft shall be conveyed 

under subsection (a) in its current unflyable, ‘‘as is’’ condition. The 

Secretary is not required to repair or alter the condition of the aircraft before conveying ownership of the aircraft. 

(c) REVERTER UPON BREACH OF CONDITIONS.—The Secretary 

shall include in the instrument of conveyance of the aircraft under 

subsection (a) the following conditions: 

(1) The W.A.S.P. Museum may not convey any ownership 

interest in, or transfer possession of, the aircraft to any other 

party without the prior approval of the Secretary. 

(2) If the Secretary determines at any time that the 

W.A.S.P. Museum has conveyed an ownership interest in, or 

transferred possession of, the aircraft to any other party without 

the prior approval of the Secretary, all right, title, and interest 

in and to the aircraft, including any repair or alteration of the 

aircraft, shall revert to the United States, and the United States 

shall have the right of immediate possession of the aircraft. 

(d) CONVEYANCE AT NO COST TO THE UNITED STATES.—The 

conveyance of the aircraft under subsection (a) shall be made at no 

cost to the United States. Any costs associated with the conveyance, 

costs of determining compliance with subsection (b), and costs of operation and maintenance of the aircraft conveyed shall be borne by 

the W.A.S.P. Museum. 

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with a 

conveyance under this section as the Secretary considers appropriate 

to protect the interests of the United States.

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SEC. 1069. INCREASE IN AMOUNT AUTHORIZED TO BE EXPENDED FOR 

DEPARTMENT OF DEFENSE PROGRAM TO COMMEMORATE 

50TH ANNIVERSARY OF THE KOREAN WAR. 

Section 1083(f)(2) of the National Defense Authorization Act for 

Fiscal Year 1998 (10 U.S.C. 113 note) is amended by striking 

‘‘$7,000,000’’ and inserting ‘‘$10,000,000’’.

TITLE XI—DEPARTMENT OF DEFENSE 

CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund employees for 

long-term care insurance. 

Sec. 1102. Extension of Department of Defense authority to make lump-sum severance payments. 

Sec. 1103. Continuation of Federal Employee Health Benefits Program eligibility. 

Sec. 1104. Certification for Department of Defense professional accounting positions.

SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE NONAPPROPRIATED FUND EMPLOYEES FOR LONG-TERM CARE 

INSURANCE. 

(a) IN GENERAL.—Section 9001(1) of title 5, United States Code, 

is amended—

(1) in subparagraph (B), by striking ‘‘and’’; 

(2) in subparagraph (C), by striking the comma at the end 

and inserting ‘‘; and’’; and 

(3) by inserting after subparagraph (C) the following new 

subparagraph: 

‘‘(D) an employee of a nonappropriated fund instrumentality of the Department of Defense described in section 

2105(c),’’. 

(b) DISCRETIONARY AUTHORITY.—Section 9002 of such title is 

amended—

(1) by redesignating subsections (b), (c), (d), and (e) as subsections (c), (d), (e), and (f), respectively; and 

(2) by inserting after subsection (a) the following new subsection (b): 

‘‘(b) DISCRETIONARY AUTHORITY REGARDING NONAPPROPRIATED

FUND INSTRUMENTALITIES.—The Secretary of Defense may determine that a nonappropriated fund instrumentality of the Department of Defense is covered under this chapter or is covered under 

an alternative long-term care insurance program.’’.

SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO 

MAKE LUMP-SUM SEVERANCE PAYMENTS. 

(a) IN GENERAL.—Section 5595(i)(4) of title 5, United States 

Code, is amended by striking ‘‘2003’’ and inserting ‘‘2006’’. 

(b) REPORT.—Not later than one year after the date of the enactment of this Act, the President shall submit to the Committees on 

Armed Services and on Governmental Affairs of the Senate and the 

Committees on Armed Services and on Government Reform of the 

House of Representatives a report, including recommendations, on 

whether the authority under section 5595(i) of title 5, United States 

Code, should be made permanent or expanded to be made Governmentwide.

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SEC. 1103. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS 

PROGRAM ELIGIBILITY. 

Paragraph (4)(B) of section 8905a(d) of title 5, United States 

Code, is amended— (1) in clause (i), by striking ‘‘2003’’ and inserting ‘‘2006’’; 

and 

(2) in clause (ii)— (A) by striking ‘‘2004’’ and inserting ‘‘2007’’; and 

(B) by striking ‘‘2003’’ and inserting ‘‘2006’’.

SEC. 1104. CERTIFICATION FOR DEPARTMENT OF DEFENSE PROFESSIONAL ACCOUNTING POSITIONS. 

(a) IN GENERAL.—(1) Chapter 81 of title 10, United States Code, 

is amended by adding at the end the following new section: 

‘‘§ 1599d. Professional accounting positions: authority to prescribe certification and credential standards 

‘‘(a) AUTHORITY TO PRESCRIBE PROFESSIONAL CERTIFICATION

STANDARDS.—The Secretary of Defense may prescribe professional 

certification and credential standards for professional accounting 

positions within the Department of Defense. Any such standard 

shall be prescribed as a Department of Defense regulation.

‘‘(b) WAIVER AUTHORITY.—The Secretary may waive any standard prescribed under subsection (a) whenever the Secretary determines such a waiver to be appropriate. 

‘‘(c) APPLICABILITY.—A standard prescribed under subsection (a) 

shall not apply to any person employed by the Department of Defense before the standard is prescribed. 

‘‘(d) REPORT.—The Secretary of Defense shall submit to Congress a report on the Secretary’s plans to provide training to appropriate Department of Defense personnel to meet any new professional and credential standards prescribed under subsection (a). 

Such report shall be prepared in conjunction with the Director of 

the Office of Personnel Management. Such a report shall be submitted not later than one year after the effective date of any regulations, or any revision to regulations, prescribed pursuant to subsection (a). ‘‘(e) DEFINITION.—In this section, the term ‘professional accounting position’ means a position or group of positions in the GS–510, 

GS–511, and GS–505 series that involves professional accounting 

work.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by adding at the end the following new item:

‘‘1599d. Professional accounting positions: authority to prescribe certification and credential standards.’’.

(b) EFFECTIVE DATE.—Standards established pursuant to section 1599d of title 10, United States Code, as added by subsection 

(a), may take effect no sooner than 120 days after the date of the 

enactment of this Act.

TITLE XII—MATTERS RELATING TO 

OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for coalition liaison officers. 

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Sec. 1202. Authority to pay for certain travel of defense personnel of countries participating in NATO Partnership for Peace program. 

Sec. 1203. Limitation on funding for Joint Data Exchange Center in Moscow. 

Sec. 1204. Support of United Nations-sponsored efforts to inspect and monitor Iraqi 

weapons activities. 

Sec. 1205. Comprehensive annual report to Congress on coordination and integration of all United States nonproliferation activities. 

Sec. 1206. Report requirement regarding Russian proliferation to Iran and other 

countries of proliferation concern. 

Sec. 1207. Monitoring of implementation of 1979 agreement between the United 

States and China on cooperation in science and technology. 

Sec. 1208. Extension of certain counterproliferation activities and programs. 

Sec. 1209. Semiannual report by Director of Central Intelligence on contributions by 

foreign persons to efforts by countries of proliferation concern to obtain 

weapons of mass destruction and their delivery systems. 

Sec. 1210. Report on feasibility and advisability of senior officer exchanges between 

the Armed Forces of the United States and the military forces of Taiwan. Sec. 1211. Report on United States force structure in the Pacific.

SEC. 1201. AUTHORITY TO PROVIDE ADMINISTRATIVE SERVICES AND 

SUPPORT FOR COALITION LIAISON OFFICERS. 

(a) AUTHORITY.—(1) Chapter 53 of title 10, United States Code, 

is amended by inserting after section 1051 the following new section: 

‘‘§ 1051a. Coalition liaison officers: administrative services 

and support; travel, subsistence, and other personal 

expenses 

‘‘(a) AUTHORITY.—The Secretary of Defense may provide administrative services and support for the performance of duties by a liaison officer of another nation involved in a coalition with the United 

States while the liaison officer is assigned temporarily to the headquarters of a combatant command, component command, or subordinate operational command of the United States in connection with 

the planning for, or conduct of, a coalition operation. ‘‘(b) TRAVEL AND SUBSISTENCE EXPENSES.—(1) The Secretary 

may pay the expenses specified in paragraph (2) of a liaison officer 

of a developing country in connection with the assignment of that 

officer to the headquarters of a combatant command as described in 

subsection (a), if the assignment is requested by the commander of 

the combatant command. ‘‘(2) Expenses of a liaison officer that may be paid under paragraph (1) in connection with an assignment described in that paragraph are the following: ‘‘(A) Travel and subsistence expenses. 

‘‘(B) Personal expenses directly necessary to carry out the 

duties of that officer in connection with that assignment. 

‘‘(c) REIMBURSEMENT.—To the extent that the Secretary determines appropriate, the Secretary may provide the services and support authorized by subsection (a) and the expenses authorized by 

subsection (b) with or without reimbursement from (or on behalf of) 

the recipients. 

‘‘(d) DEFINITIONS.—In this section: 

‘‘(1) The term ‘administrative services and support’ includes 

base or installation support services, office space, utilities, copying services, fire and police protection, and computer support. 

‘‘(2) The term ‘coalition’ means an ad hoc arrangement between or among the United States and one or more other nations for common action. 

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‘‘(e) EXPIRATION OF AUTHORITY.—The authority under this section shall expire on September 30, 2005.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 1051 the following new item:

‘‘1051a. Coalition liaison officers: administrative services and support; travel, subsistence, and other personal expenses.’’.

(b) GAO REPORT.—Not later than March 1, 2005, the Comptroller General shall submit to the Committees on Armed Services 

of the Senate and House of Representatives a report providing an 

assessment of the implementation of section 1051a of title 10, 

United States Code, as added by subsection (a). The assessment 

shall include the following: 

(1) A description of the benefits to coalition operations of 

the authority provided by that section. 

(2) A statement of the cost to the Department of Defense of 

the use of the authority provided by that section. 

(3) A summary of activities carried out under the authority 

provided by that section, including (A) the number of liaison officers for whom administrative services and support or expenses 

were provided under that authority and their countries of origin, and (B) the type of services, support, and expenses provided.

SEC. 1202. AUTHORITY TO PAY FOR CERTAIN TRAVEL OF DEFENSE 

PERSONNEL OF COUNTRIES PARTICIPATING IN NATO 

PARTNERSHIP FOR PEACE PROGRAM. 

(a) AUTHORITY FOR USE OF FUNDS.—Section 1051(b) of title 10, 

United States Code, is amended—

(1) in paragraph (1), by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; 

(2) by redesignating paragraph (3) as paragraph (4); and 

(3) by inserting after paragraph (2) the following new paragraph (3): 

‘‘(3) In the case of defense personnel of a developing country 

that is not a member of the North Atlantic Treaty Organization and 

that is participating in the Partnership for Peace program of the 

North Atlantic Treaty Organization (NATO), expenses authorized to 

be paid under subsection (a) may be paid in connection with travel 

of personnel to the territory of any of the countries participating in 

the Partnership for Peace program or the territory of any NATO 

member country.’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall apply only with respect to travel performed on or after the date 

of the enactment of this Act.

SEC. 1203. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN MOSCOW. 

(a) LIMITATION.—Not more than 50 percent of the funds made 

available to the Department of Defense for fiscal year 2003 for activities associated with the Joint Data Exchange Center in Moscow, 

Russia, may be obligated or expended for any such activity until—

(1) the United States and the Russian Federation enter into 

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tion Act for Fiscal Year 2001 (as enacted into law by Public 

Law 106–398; 114 Stat. 1654A–329); 

(2) the United States and the Russian Federation enter into 

an agreement or agreements exempting the United States and 

any United States person from Russian taxes, and from liability 

under Russian laws, with respect to activities associated with 

the Joint Data Exchange Center; 

(3) the Secretary of Defense submits to the Committee on 

Armed Services of the Senate and the Committee on Armed 

Services of the House of Representatives a copy of each agreement referred to in paragraphs (1) and (2); and 

(4) a period of 30 days has expired after the date of the 

final submission under paragraph (3). 

(b) JOINT DATA EXCHANGE CENTER.—For purposes of this section, the term ‘‘Joint Data Exchange Center’’ means the United 

States-Russian Federation joint center for the exchange of data to 

provide early warning of launches of ballistic missiles and for notification of such launches that is provided for in a joint United 

States-Russian Federation memorandum of agreement signed in 

Moscow in June 2000.

SEC. 1204. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO 

INSPECT AND MONITOR IRAQI WEAPONS ACTIVITIES. 

(a) LIMITATION ON AMOUNT OF ASSISTANCE IN FISCAL YEAR

2003.—The total amount of the assistance for fiscal year 2003 that 

is provided by the Secretary of Defense under section 1505 of the 

Weapons of Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) 

as activities of the Department of Defense in support of activities 

under that Act may not exceed $15,000,000. 

(b) EXTENSION OF AUTHORITY TO PROVIDE ASSISTANCE.—Subsection (f) of section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended by striking ‘‘2002’’

and inserting ‘‘2003’’.

SEC. 1205. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON COORDINATION AND INTEGRATION OF ALL UNITED STATES 

NONPROLIFERATION ACTIVITIES. 

Section 1205 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1247) is amended by 

adding at the end the following new subsection: 

‘‘(d) ANNUAL REPORT ON IMPLEMENTATION OF PLAN.—(1) Not 

later than January 31, 2003, and each year thereafter, the President 

shall submit to Congress a report on the implementation of the plan 

required by subsection (a) during the preceding year. 

‘‘(2) Each report under paragraph (1) shall include—

‘‘(A) a discussion of progress made during the year covered 

by such report in the matters of the plan required by subsection 

(a); 

‘‘(B) a discussion of consultations with foreign nations, and 

in particular the Russian Federation, during such year on joint 

programs to implement the plan; 

‘‘(C) a discussion of cooperation, coordination, and integration during such year in the implementation of the plan among 

the various departments and agencies of the United States Government, as well as private entities that share objectives similar 

to the objectives of the plan; and 

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‘‘(D) any recommendations that the President considers appropriate regarding modifications to law or regulations, or to 

the administration or organization of any Federal department 

or agency, in order to improve the effectiveness of any programs 

carried out during such year in the implementation of the 

plan.’’.

SEC. 1206. REPORT REQUIREMENT REGARDING RUSSIAN PROLIFERATION TO IRAN AND OTHER COUNTRIES OF PROLIFERATION CONCERN. 

(a) REPORT REQUIREMENT.—Not later than March 15 of 2003 

through 2009, the President shall submit to Congress a report (in 

unclassified and classified form as necessary) describing in detail 

Russian proliferation of weapons of mass destruction and ballistic 

missile goods, technology, expertise, and information, and of dualuse items that may contribute to the development of weapons of 

mass destruction and ballistic missiles, to Iran and to other countries of proliferation concern during the year preceding the year in 

which the report is submitted. The report shall include a detailed 

description of the following, for the year covered by the report: 

(1) The number, type, and quality of direct and dual-use 

weapons of mass destruction and ballistic missile goods, technology, expertise, and information transferred. 

(2) The form, location, and manner in which such transfers 

took place. 

(3) The contribution that such transfers could make to the 

recipient countries’ weapons of mass destruction and ballistic 

missile programs, and an estimate of how soon such countries 

will test, possess, and deploy weapons of mass destruction and 

ballistic missiles. 

(4) The impact and consequences that such transfers have, 

and could have over the next 10 years—

(A) on United States national security; 

(B) on United States military forces deployed in the region to which such transfers are being made; 

(C) on United States allies, friends, and interests in 

that region; and 

(D) on the military capabilities of the country receiving 

such transfers from Russia. 

(5) The policy and strategy that the President intends to 

employ to halt Russian proliferation, the policy tools that the 

President intends to use to carry out that policy and strategy, 

the rationale for employing such tools, and the timeline by 

which the President expects to see material progress in ending 

Russian proliferation of direct and dual-use weapons of mass 

destruction and missile goods, technology, expertise, and information. 

(b) DEFINITION.—In this section, the term ‘‘country of proliferation concern’’ means any country identified by the Director of Central Intelligence as having engaged in the acquisition of dual-use 

and other technology useful for the development or production of 

weapons of mass destruction (including nuclear weapons, chemical 

weapons, and biological weapons) or advanced conventional munitions—

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(1) in the most recent report under section 721 of the Combatting Proliferation of Weapons of Mass Destruction Act of 

1996 (title VII of Public Law 104–293; 50 U.S.C. 2366); or 

(2) in any successor report on the acquisition by foreign 

countries of dual-use and other technology useful for the development or production of weapons of mass destruction.

SEC. 1207. MONITORING OF IMPLEMENTATION OF 1979 AGREEMENT 

BETWEEN THE UNITED STATES AND CHINA ON COOPERATION IN SCIENCE AND TECHNOLOGY. 

(a) IN GENERAL.—The Secretary of State shall— (1) monitor the implementation of the Agreement specified 

in subsection (c); 

(2) keep a systematic account of the protocols to the Agreement; 

(3) coordinate the activities of all agencies of the United 

States Government that carry out cooperative activities under 

the Agreement; and 

(4) ensure that all activities conducted under the Agreement 

comply with applicable laws and regulations concerning the 

transfer of militarily sensitive technologies and dual-use technologies. 

(b) RESPONSIBILITIES OF THE OFFICE OF SCIENCE AND TECH- NOLOGY COOPERATION.—Except as otherwise provided by the Secretary of State, the functions of the Secretary under this section 

shall be carried out through the Director of the Office of Science and 

Technology Cooperation of the Department of State. 

(c) AGREEMENT DEFINED.—For purposes of this section, the 

term ‘‘Agreement’’ means the agreement between the United States 

and the People’s Republic of China known as the ‘‘Agreement between the Government of the United States of America and the Government of the People’s Republic of China on Cooperation in Science 

and Technology’’, signed in Washington on January 31, 1979, and 

its protocols. 

(d) BIENNIAL REPORT TO CONGRESS.—(1) Not later than April 

1 of each even-numbered year, the Secretary of State shall submit 

to Congress a report on the implementation of the Agreement and 

on activities under the Agreement. Each such report shall be submitted in both classified and unclassified form, as necessary. 

(2) Each report under this subsection shall provide an evaluation of the benefits of the Agreement to the economy, to the military, 

and to the industrial base of the People’s Republic of China and 

shall include the following: 

(A) An accounting of all activities conducted under the 

Agreement since the previous report (or, in the case of the first 

report, since the Agreement was entered into) and a projection 

of activities to be undertaken under the Agreement during the 

next two years. 

(B) An estimate of the costs to the United States to administer the Agreement during the period covered by the report. 

(C) An assessment of how the Agreement has influenced the 

foreign and domestic policies of the People’s Republic of China 

and the policy of the People’s Republic of China toward scientific and technological cooperation with the United States.

(D) An analysis by the Director of Central Intelligence of 

the involvement of military specialists, weapons specialists, and 

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intelligence specialists of the People’s Republic of China in the 

activities of the Joint Commission established under the Agreement and in other activities conducted under the Agreement. 

(E) A determination by the Secretary of Defense, developed 

with the assistance of the Director of Central Intelligence, of the 

extent to which the activities conducted under the Agreement 

have enhanced the military and defense industrial base of the 

People’s Republic of China, and an assessment of the effect that 

projected activities under the Agreement for the next two years, 

including the transfer of technology and know-how, could have 

on the economic and military capabilities of the People’s Republic of China. 

(F) An assessment by the Inspector General of the Department of Commerce of— (i) the extent to which programs or activities carried 

out under the Agreement provide access to technology, information, or know-how that could enhance military capabilities of the People’s Republic of China; and 

(ii) the extent to which those programs or activities are 

carried out in compliance with export control laws and regulations of the United States, especially those laws and regulations governing so-called ‘‘deemed exports’’. 

(G) Any recommendations of the Secretary of State, Secretary of Defense, or Director of Central Intelligence for improving the monitoring of the activities of the Joint Commission established under the Agreement. 

(3) The Secretary of State shall prepare each report under this 

subsection in consultation with the Secretary of Defense, the Secretary of Energy, the Director of Central Intelligence, the Director of 

the Federal Bureau of Investigation, and the Director of the National Science Foundation.

(e) INTERAGENCY WORKING GROUP.—The President shall establish an interagency working group to oversee the implementation of 

the Agreement by departments and agencies of the United States. 

The working group shall consist of representatives of such departments, agencies, and offices of the executive branch as the President 

considers appropriate. The working group shall perform the following functions: 

(1) Assisting the Secretary of State and other appropriate 

officials in setting standards under the Agreement for science 

and technology transfers between the United States and the 

People’s Republic of China. 

(2) Monitoring ongoing programs and activities under the 

Agreement and recommending future programs and activities 

under the Agreement. 

(3) Developing a comprehensive database of all governmentto-government programs and United States Government-funded 

programs under the Agreement. 

(4) Coordinating activities under the Agreement between 

United States Government agencies, including elements of the 

intelligence community, as appropriate.

SEC. 1208. EXTENSION OF CERTAIN COUNTERPROLIFERATION ACTIVITIES AND PROGRAMS. 

(a) EXTENSION OF INTERAGENCY COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.—Section 1605(f) of the National Defense 

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Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is 

amended by striking ‘‘September 30, 2004’’ and inserting 

‘‘September 30, 2008’’. 

(b) LATER DEADLINE FOR SUBMISSION OF ANNUAL REPORT.—

Subsection (a) of section 1503 of the National Defense Authorization 

Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended by striking ‘‘February 1 of each year’’ and inserting ‘‘May 1 each year’’. 

(c) ADDITIONAL MATTERS TO BE INCLUDED IN ANNUAL REPORT.—Subsection (b) of such section is amended by adding at the 

end the following new paragraph: 

‘‘(8) A discussion of the limitations and impediments to the 

biological weapons counterproliferation efforts of the Department of Defense (including legal, policy, and resource constraints) and recommendations for the removal or mitigation of 

such impediments and for ways to make such efforts more effective.’’. 

(d) TECHNICAL AMENDMENT TO REFLECT CHANGE IN POSITION

TITLE.—Section 1605(a)(4) of the National Defense Authorization 

Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by striking ‘‘Under Secretary of Defense for Acquisition and Technology’’ in 

the first sentence and inserting ‘‘Under Secretary of Defense for Acquisition, Technology, and Logisitics’’.

SEC. 1209. SEMIANNUAL REPORT BY DIRECTOR OF CENTRAL INTELLIGENCE ON CONTRIBUTIONS BY FOREIGN PERSONS TO 

EFFORTS BY COUNTRIES OF PROLIFERATION CONCERN 

TO OBTAIN WEAPONS OF MASS DESTRUCTION AND THEIR 

DELIVERY SYSTEMS. 

(a) CONTENT OF SEMIANNUAL REPORT.—The Combatting Proliferation of Weapons of Mass Destruction Act of 1996 (title VII of 

Public Law 104–293) is amended by inserting after section 721 (50 

U.S.C. 2366) the following new section: 

‘‘SEC. 722. SEMIANNUAL REPORT ON CONTRIBUTIONS OF FOREIGN 

PERSONS TO WEAPONS OF MASS DESTRUCTION AND DELIVERY SYSTEMS EFFORTS OF COUNTRIES OF PROLIFERATION CONCERN. 

‘‘(a) REPORTS.—The Director of Central Intelligence shall submit to Congress a semiannual report identifying each foreign person 

that, during the period covered by the report, made a material contribution to the research, development, production, or acquisition by 

a country of proliferation concern of—

‘‘(1) weapons of mass destruction (including nuclear weapons, chemical weapons, or biological weapons); or 

‘‘(2) ballistic or cruise missile systems. 

‘‘(b) PERIOD OF SEMIANNUAL REPORTS.—Semiannual reports 

under subsection (a) shall be submitted as follows: 

‘‘(1) One semiannual report shall cover the first six months 

of the calendar year and shall be submitted not later than January 1 of the following year. 

‘‘(2) The other semiannual report shall cover the second six 

months of the calendar year and shall be submitted not later 

than July 1 of the following year. 

‘‘(c) FORM OF REPORTS.—(1) A report under subsection (a) may 

be submitted in classified form, in whole or in part, if the Director 

of Central Intelligence determines that submittal in that form is advisable. 

214

‘‘(2) Any portion of a report under subsection (a) that is submitted in classified form shall be accompanied by an unclassified 

summary of such portion. ‘‘(d) DEFINITIONS.—In this section: ‘‘(1) The term ‘foreign person’ means any of the following: ‘‘(A) A natural person who is not a citizen of the United 

States. ‘‘(B) A corporation, business association, partnership, 

society, trust, or other nongovernmental entity, organization, or group that is organized under the laws of a foreign 

country or has its principal place of business in a foreign 

country. ‘‘(C) Any foreign government or foreign governmental 

entity operating as a business enterprise or in any other capacity. ‘‘(D) Any successor, subunit, or subsidiary of any entity 

described in subparagraph (B) or (C). 

‘‘(2) The term ‘country of proliferation concern’ means any 

country identified by the Director of Central Intelligence as having engaged in the acquisition of dual-use and other technology 

useful for the development or production of weapons of mass destruction (including nuclear weapons, chemical weapons, and 

biological weapons) or advanced conventional munitions—

‘‘(A) in the most recent report under section 721; or

‘‘(B) in any successor report on the acquisition by foreign countries of dual-use and other technology useful for 

the development or production of weapons of mass destruction.’’. 

(b) EFFECTIVE DATE.—Section 722 of the Combatting Proliferation of Weapons of Mass Destruction Act of 1996, as added by subsection (a), shall take effect with the report with respect to the first 

six months of 2003 required to be submitted under that section not 

later than January 1, 2004.

SEC. 1210. REPORT ON FEASIBILITY AND ADVISABILITY OF SENIOR OFFICER EXCHANGES BETWEEN THE ARMED FORCES OF THE 

UNITED STATES AND THE MILITARY FORCES OF TAIWAN. 

(a) PRESIDENTIAL REPORT.—Not later than 180 days after the 

date of the enactment of this Act, the President shall submit to Congress a report on— (1) the feasibility and advisability of conducting combined 

operational training with, and exchanges of general and flag officers between, the Armed Forces of the United States and the 

military forces of Taiwan; and 

(2) the progress being made in meeting United States commitments to the security of Taiwan. 

(b) CLASSIFICATION OF REPORT.—The report required by this 

section shall be submitted in unclassified form and, as necessary, 

in classified form.

SEC. 1211. REPORT ON UNITED STATES FORCE STRUCTURE IN THE PACIFIC. 

(a) SECRETARY OF DEFENSE REPORT.—Not later than 180 days 

after the date of the enactment of this Act, the Secretary of Defense 

shall submit to Congress a report on the plans of the Department 

of Defense to maintain adequate United States force structure in the 

Pacific, including any efforts (1) to augment current basing arrangeVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00238 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
215

ments, and (2) to implement the recommendations from the most recent Quadrennial Defense Review to improve United States military 

capabilities in the Pacific. 

(b) CLASSIFICATION OF REPORT.—The report required by this 

section shall be submitted in unclassified form and, as necessary, 

in classified form.

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. Prohibition against use of funds until submission of reports. 

Sec. 1304. Report on use of revenue generated by activities carried out under Cooperative Threat Reduction programs. 

Sec. 1305. Prohibition against use of funds for second wing of fissile material storage facility. 

Sec. 1306. Limited waiver of restrictions on use of funds for threat reduction in 

states of the former Soviet Union.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 

PROGRAMS AND FUNDS. 

(a) SPECIFICATION OF CTR PROGRAMS.—For purposes of section 

301 and other provisions of this Act, Cooperative Threat Reduction 

programs are the programs specified in section 1501(b) of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 

104–201; 110 Stat. 2731; 50 U.S.C. 2362 note). 

(b) FISCAL YEAR 2003 COOPERATIVE THREAT REDUCTION FUNDS

DEFINED.—As used in this title, the term ‘‘fiscal year 2003 Cooperative Threat Reduction funds’’ means the funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs. 

(c) AVAILABILITY OF FUNDS.—Funds appropriated pursuant to 

the authorization of appropriations in section 301 for Cooperative 

Threat Reduction programs shall be available for obligation for 

three fiscal years. 

SEC. 1302. FUNDING ALLOCATIONS. 

(a) FUNDING FOR SPECIFIC PURPOSES.—Of the $416,700,000 authorized to be appropriated to the Department of Defense for fiscal 

year 2003 in section 301(23) for Cooperative Threat Reduction programs, the following amounts may be obligated for the purposes 

specified: 

(1) For strategic offensive arms elimination in Russia, $70,500,000. 

(2) For strategic nuclear arms elimination in Ukraine, $6,500,000. 

(3) For nuclear weapons transportation security in Russia, $19,700,000. 

(4) For nuclear weapons storage security in Russia, $40,000,000. 

(5) For activities designated as Other Assessments/Administrative Support, $14,700,000. 

(6) For defense and military contacts, $18,900,000. 

(7) For weapons of mass destruction infrastructure elimi- nation activities in Kazakhstan, $9,000,000. 

216

(8) For weapons of mass destruction infrastructure elimi- nation activities in Ukraine, $8,800,000. 

(9) For chemical weapons destruction in Russia, $50,000,000. 

(10) For biological weapons proliferation prevention in the former Soviet Union, $55,000,000. 

(11) For weapons of mass destruction proliferation preven- tion in the States of the former Soviet Union, $40,000,000. 

(b) ADDITIONAL FUNDS AUTHORIZED FOR CERTAIN PURPOSES.— Of the funds authorized to be appropriated to the Department of Defense for fiscal year 2003 in section 301(23) for Cooperative Threat 

Reduction programs, $83,600,000 may be obligated for any of the 

purposes specified in paragraphs (1) through (4) and (9) of subsection (a) in addition to the amounts specifically authorized in 

such paragraphs. 

(c) REPORT ON OBLIGATION OR EXPENDITURE OF FUNDS FOR

OTHER PURPOSES.—No fiscal year 2003 Cooperative Threat Reduction funds may be obligated or expended for a purpose other than 

a purpose listed in paragraphs (1) through (11) of subsection (a) 

until 30 days after the date that the Secretary of Defense submits 

to Congress a report on the purpose for which the funds will be obligated or expended and the amount of funds to be obligated or expended. Nothing in the preceding sentence shall be construed as authorizing the obligation or expenditure of fiscal year 2003 Cooperative Threat Reduction funds for a purpose for which the obligation 

or expenditure of such funds is specifically prohibited under this 

title or any other provision of law. 

(d) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS.—(1) 

Subject to paragraphs (2) and (3), in any case in which the Secretary of Defense determines that it is necessary to do so in the national interest, the Secretary may obligate amounts appropriated for 

fiscal year 2003 for a purpose listed in any of the paragraphs in 

subsection (a) in excess of the specific amount authorized for that 

purpose. 

(2) An obligation of funds for a purpose stated in any of the 

paragraphs in subsection (a) in excess of the specific amount authorized for such purpose may be made using the authority provided in 

paragraph (1) only after—

(A) the Secretary submits to Congress notification of the intent to do so together with a complete discussion of the justification for doing so; and 

(B) 15 days have elapsed following the date of the notification. 

(3) The Secretary may not, under the authority provided in 

paragraph (1), obligate amounts for a purpose stated in any of 

paragraphs (5) through (10) of subsection (a) in excess of 125 percent of the specific amount authorized for such purpose. 

(4) In this section, the term ‘‘specific amount authorized’’ means, 

with respect to a purpose listed in any paragraph in subsection 

(a)—

(A) the amount specifically authorized for that purpose in 

subsection (a), plus 

(B) in the case of a purpose listed in paragraph (1), (2), (3), 

(4), or (9) of subsection (a), any amount obligated under subsection (b) for that purpose. 

217

SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION 

OF REPORTS. 

Not more than 50 percent of fiscal year 2003 Cooperative 

Threat Reduction funds may be obligated or expended until 30 days 

after the date of the submission of—

(1) the report required to be submitted in fiscal year 2002 

under section 1308(a) 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–341); and 

(2) the update for the multiyear plan required to be submitted for fiscal year 2001 under section 1205 of the National 

Defense Authorization Act for Fiscal Year 1995 (Public Law 

103–337; 22 U.S.C. 5952 note). 

SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES 

CARRIED OUT UNDER COOPERATIVE THREAT REDUCTION 

PROGRAMS. 

(a) ADDITIONAL REPORT REQUIREMENTS.—Section 1308(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–

341) is amended by inserting at the end the following new paragraphs: 

‘‘(6) To the maximum extent practicable, a description of 

how revenue generated by activities carried out under Cooperative Threat Reduction programs in recipient States is being utilized, monitored, and accounted for. 

‘‘(7) A description of the defense and military activities carried out under Cooperative Threat Reduction programs during 

the fiscal year ending in the year preceding the year of the report, including—

‘‘(A) the amounts obligated or expended for such activities; 

‘‘(B) the purposes, goals, and objectives for which such 

amounts were obligated and expended; 

‘‘(C) a description of the activities carried out, including the forms of assistance provided, and the justification 

for each form of assistance provided; 

‘‘(D) the success of each activity, including the goals 

and objectives achieved for each; 

‘‘(E) a description of participation by private sector entities in the United States in carrying out such activities, 

and the participation of any other Federal department or 

agency in such activities; and 

‘‘(F) any other information that the Secretary considers 

relevant to provide a complete description of the operation 

and success of activities carried out under Cooperative 

Threat Reduction programs.’’. 

(b) EFFECTIVE DATE.—Paragraphs (6) and (7) of section 1308(c) 

of such Act, as added by subsection (a), shall apply beginning with 

the report submitted under that section in 2004. 

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING 

OF FISSILE MATERIAL STORAGE FACILITY. 

No funds authorized to be appropriated for Cooperative Threat 

Reduction programs for any fiscal year may be used for the design, 

planning, or construction of a second wing for a storage facility for 

Russian fissile material. 

218

SEC. 1306. LIMITED WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR 

THREAT REDUCTION IN STATES OF THE FORMER SOVIET 

UNION. 

(a) AUTHORITY TO WAIVE RESTRICTIONS AND ELIGIBILITY REQUIREMENTS.—If the President submits the certification and report 

described in subsection (b) with respect to an independent state of 

the former Soviet Union for a fiscal year—

(1) the restrictions in subsection (d) of section 1203 of the 

Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) 

shall cease to apply, and funds may be obligated and expended 

under that section for assistance, to that state during that fiscal 

year; and 

(2) funds may be obligated and expended during that fiscal 

year under section 502 of the FREEDOM Support Act (22 

U.S.C. 5852) for assistance or other programs and activities for 

that state even if that state has not met one or more of the requirements for eligibility under paragraphs (1) through (4) of 

that section. 

(b) CERTIFICATION AND REPORT.—(1) The certification and report referred to in subsection (a) are a written certification submitted by the President to Congress that the waiver of the restrictions and requirements described in paragraphs (1) and (2) of that 

subsection during such fiscal year is important to the national security interests of the United States, together with a report containing 

the following: 

(A) A description of the activity or activities that prevent 

the President from certifying that the state is committed to the 

matters set forth in the provisions of law specified in paragraphs (1) and (2) of subsection (a) in such fiscal year. 

(B) An explanation of why the waiver is important to the 

national security interests of the United States. 

(C) A description of the strategy, plan, or policy of the 

President for promoting the commitment of the state to, and 

compliance by the state with, such matters, notwithstanding the 

waiver. 

(2) The matter included in the report under paragraph (1) shall 

be submitted in unclassified form, but may include a classified 

annex. 

(c) FISCAL YEARS COVERED.—The authority under subsection 

(a) shall apply only with respect to fiscal years 2003, 2004, and 

2005. 

(d) EXPIRATION OF AUTHORITY.—The authority under subsection (a) shall expire on September 30, 2005. 

(e) ADMINISTRATION OF RESTRICTIONS ON ASSISTANCE.—Subsection (d) of section 1203 of the Cooperative Threat Reduction Act 

of 1993 (title XII of Public Law 103–160; 107 Stat. 1778; 22 U.S.C. 

5952) is amended—

(1) by striking ‘‘any year’’ and inserting ‘‘any fiscal year’’; 

and 

(2) by striking ‘‘that year’’ and inserting ‘‘such fiscal year’’.

TITLE XIV—HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of homeland security. 

219

Sec. 1402. Comprehensive plan for improving the preparedness of military installations for terrorist incidents. 

Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams. 

Sec. 1404. Report on the role of the Department of Defense in supporting homeland 

security. 

Sec. 1405. Sense of Congress on Department of Defense assistance to local first responders.

SEC. 1401. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT IN 

SUPPORT OF HOMELAND SECURITY. 

(a) RESPONSIBLE SENIOR OFFICIAL.—The Secretary of Defense 

shall designate a senior official of the Department of Defense to coordinate all Department of Defense efforts to identify, evaluate, deploy, and transfer to Federal, State, and local first responders technology items and equipment in support of homeland security. 

(b) DUTIES.—The official designated pursuant to subsection (a) 

shall—

(1) identify technology items and equipment developed or 

being developed by Department of Defense components that 

have the potential to enhance public safety and improve homeland security; 

(2) cooperate with appropriate Federal Government officials 

outside the Department of Defense to evaluate whether such 

technology items and equipment would be useful to first responders; 

(3) facilitate the timely transfer, through identification of 

appropriate private sector manufacturers, of appropriate technology items and equipment to Federal, State, and local first responders, in coordination with appropriate Federal Government 

officials outside the Department of Defense; 

(4) identify and eliminate redundant and unnecessary research efforts within the Department of Defense with respect to 

technologies to be deployed to first responders;

(5) expedite the advancement of high priority Department of 

Defense projects from research through implementation of initial manufacturing; and 

(6) participate in outreach programs established by appropriate Federal Government officials outside the Department of 

Defense to communicate with first responders and to facilitate 

awareness of available technology items and equipment to support responses to crises. 

(c) SUPPORT AGREEMENT.—The official designated pursuant to 

subsection (a) shall enter into an appropriate agreement with a nongovernment entity for such entity to assist the official designated 

under subsection (a) in carrying out that official’s duties under this 

section. Any such agreement shall be entered into using competitive 

procedures in compliance with applicable requirements of law and 

regulation. 

(d) 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 actions taken to carry 

out this section. The report shall include the following: 

(1) Identification of the senior official designated pursuant 

to subsection (a). 

(2) A summary of the actions taken or planned to be taken 

to implement subsection (b), including a schedule for planned 

actions. 

220

(3) An initial list of technology items and equipment identified pursuant to subsection (b)(1), together with a summary of 

any program schedule for the development, deployment, or 

transfer of such items and equipment. 

(4) A description of any agreement entered into pursuant to 

subsection (c).

SEC. 1402. COMPREHENSIVE PLAN FOR IMPROVING THE PREPAREDNESS OF MILITARY INSTALLATIONS FOR TERRORIST INCIDENTS. 

(a) COMPREHENSIVE PLAN.—The Secretary of Defense shall develop a comprehensive plan for improving the preparedness of military installations for preventing and responding to terrorist attacks, 

including attacks involving the use or threat of use of weapons of 

mass destruction. 

(b) PREPAREDNESS STRATEGY.—The plan under subsection (a) 

shall include a preparedness strategy that includes each of the following: 

(1) Identification of long-term goals and objectives for improving the preparedness of military installations for preventing and responding to terrorist attacks. 

(2) Identification of budget and other resource requirements 

necessary to achieve those goals and objectives. 

(3) Identification of factors beyond the control of the Secretary that could impede the achievement of those goals and objectives. 

(4) A discussion of the extent to which local, regional, or 

national military response capabilities are to be developed, integrated, and used. 

(5) A discussion of how the Secretary will coordinate the capabilities referred to in paragraph (4) with local, regional, or 

national civilian and other military capabilities. 

(c) PERFORMANCE PLAN.—The plan under subsection (a) shall 

include a performance plan that includes each of the following: 

(1) A reasonable schedule, with milestones, for achieving 

the goals and objectives of the strategy under subsection (b). 

(2) Performance criteria for measuring progress in achieving those goals and objectives. 

(3) A description of the process, together with a discussion 

of the resources, necessary to achieve those goals and objectives. 

(4) A description of the process for evaluating results in 

achieving those goals and objectives. 

(d) SUBMITTAL TO CONGRESS.—The Secretary shall submit the 

comprehensive plan developed under subsection (a) to the Committee 

on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives not later than 180 days after 

the date of the enactment of this Act. 

(e) COMPTROLLER GENERAL REVIEW AND REPORT.—Not later 

than 60 days after the date on which the Secretary submits the comprehensive plan under subsection (a), the Comptroller General shall 

review the plan and submit to the committees referred to in subsection (d) the Comptroller General’s assessment of the plan. 

(f) ANNUAL REPORT.—(1) In each of 2004, 2005, and 2006, the 

Secretary of Defense shall include a report on the comprehensive 

plan developed under subsection (a) with the materials that the Secretary submits to Congress in support of the budget submitted by 

221

the President that year pursuant to section 1105(a) of title 31, 

United States Code. 

(2) Each such report shall include— (A) a discussion of any revision that the Secretary has 

made in the comprehensive plan developed under subsection (a) 

since the last report under this subsection or, in the case of the 

first such report, since the plan was submitted under subsection 

(d); and 

(B) an assessment of the progress made in achieving the 

goals and objectives of the strategy set forth in the plan. 

(3) If the Secretary includes in the report for 2004 or 2005 

under this subsection a declaration that the goals and objectives of 

the preparedness strategy set forth in the comprehensive plan have 

been achieved, no further report is required under this subsection.

SEC. 1403. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS. 

(a) ESTABLISHMENT OF ADDITIONAL TEAMS.—The Secretary of 

Defense shall— (1) establish 23 additional teams designated as Weapons of 

Mass Destruction Civil Support Teams, for a total of 55 such 

teams; and 

(2) ensure that of such 55 teams, there is at least one team 

established in each State and territory. 

(b) PLAN.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to Congress a plan, in 

furtherance of subsection (a), for establishing at least one Weapons 

of Mass Destruction Civil Support Team in each State and territory 

that does not have such a team as of the date of the enactment of 

this Act. The plan shall include the following: 

(1) A schedule and budget for manning, training, and 

equipping the new teams as rapidly as is possible without jeopardizing the attainment of full effectiveness by the new teams. 

(2) A discussion of whether the mission of the Weapons of 

Mass Destruction Civil Support Teams should be expanded 

and, if so, how. 

(c) DEFINITIONS.—For purposes of this section: 

(1) The term ‘‘Weapons of Mass Destruction Civil Support 

Team’’ means a team of members of the reserve components of 

the Armed Forces that is established under section 12310(c) of 

title 10, United States Code, in support of emergency preparedness programs to prepare for or to respond to any emergency involving the use of a weapon of mass destruction. 

(2) The term ‘‘State and territory’’ means each of the several 

States, the District of Columbia, Puerto Rico, Guam, and the 

Virgin Islands.

SEC. 1404. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE 

IN SUPPORTING HOMELAND SECURITY. 

(a) REPORT REQUIRED.—Not later than March 1, 2003, the Secretary of Defense shall submit to the congressional defense committees a report on Department of Defense responsibilities, mission, and 

plans for military support of homeland security. 

(b) CONTENTS OF REPORT.—The report shall include, at a minimum, a discussion of the following: 

(1) The Department of Defense definition of its homeland 

security mission, particularly with respect to how it relates to 

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providing military support to civil authorities, managing the 

consequences of terrorist attacks, and homeland defense, and 

the actions the Department is taking to implement the homeland security mission as so defined. 

(2) Changes in the roles, missions, responsibilities, organization, and capabilities of the following organizations in order 

to conduct their homeland security support mission, and the 

reasons for such changes: 

(A) The Office of the Secretary of Defense. 

(B) The Army, Navy, Air Force, and Marine Corps. 

(C) The Army National Guard and the Air National 

Guard. 

(D) The combatant commands of the Department of Defense. 

(3) The relationship between the Department of Defense, including its combatant commands, and the following with regard to homeland security: 

(A) Other departments and agencies of the Federal 

Government. 

(B) State and local governments. 

(C) The National Guard and Reserve components. 

(4) The current capability of the Department of Defense to 

respond to terrorist attacks employing chemical, biological, radiological, nuclear, high explosive or cyberterrorism weapons 

against personnel and critical infrastructure of the Department, 

including identification of the goals of the Department for being 

fully capable of responding to such attacks, current deficiencies 

in that capability, the resources required to achieve that capability, and a long-term plan to reach that capability. 

(5) The roles, missions, and responsibilities of the intelligence components of the Department of Defense in support of 

its homeland security mission, including the policies and plans 

for— (A) collecting and analyzing information related to 

homeland security; 

(B) sharing that information with other agencies of the 

Federal Government; and

(C) preparing threat and risk assessments and issuing 

warnings. 

(6) A discussion of plans of the Department of Defense for 

training, exercising, and preparing to perform its homeland security mission, including—

(A) individual and collective training for civilian and 

military personnel of the Department involved in homeland 

security; 

(B) integrated training with other agencies of the Federal Government, and with State and local governments, as 

appropriate; 

(C) interagency exercises and simulations; and 

(D) the development of a permanent ‘‘terrorist opposing 

force’’ capable of challenging the Department’s plans, policies, and capabilities during training events and exercises. 

(7) A discussion of how the Department of Defense biological defense research program supports its homeland security 

mission. 

223

(8) A discussion of the efforts by the Department of Defense 

to develop, either within the Department or through contracts 

with private entities, anticyberterrorism technology, including 

an assessment of whether and how such efforts should be increased. 

(9) An assessment of the need for and feasibility of developing and fielding Department of Defense regional chemical-biological incident response teams across the United States, including options for providing the resources and personnel necessary for developing and fielding any such teams. 

(10) A discussion of the Department of Defense plans and 

efforts to place new emphasis on the unique operational demands associated with homeland security while ensuring that 

defense of the United States remains the primary mission of the 

Department of Defense. 

(11) The resource constraints and legal impediments to implementing any of the activities discussed under paragraphs (1) 

through (10).

SEC. 1405. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE ASSISTANCE TO LOCAL FIRST RESPONDERS. 

It is the sense of Congress that the Secretary of Defense should, 

to the extent the Secretary considers appropriate and feasible, provide assistance, in accordance with otherwise applicable provisions 

of law, to entities that are local first responders for domestic terrorist incidents in order to assist those entities in improving their 

capabilities to respond to such incidents.

TITLE XV—AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for the war on 

terrorism. 

Sec. 1502. Mobilization and personnel. 

Sec. 1503. Operations. 

Sec. 1504. Equipment replacement and enhancement. 

Sec. 1505. Classified activities. 

Sec. 1506. Procurement of munitions. 

Sec. 1507. Discretionary restoration of authorizations of appropriations reduced for 

management efficiencies. 

Sec. 1508. General provisions applicable to transfers.

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED OPERATIONS FOR THE WAR ON TERRORISM. 

In addition to any other amounts authorized to be appropriated 

by this Act, there is hereby authorized to be appropriated for the Department of Defense for fiscal year 2003, subject to subsection (b), 

$10,000,000,000 only for the conduct of Operation Noble Eagle and 

Operation Enduring Freedom in continuation of the war on terrorism in accordance with the purposes stated in section 2(a) of the 

Authorization for Use of Military Force (Public Law 107–40; 50 

U.S.C. 1541 note). 

SEC. 1502. MOBILIZATION AND PERSONNEL. 

Of the amount authorized to be appropriated in section 1501, 

$2,550,000,000 shall be available only for transfer (subject to sections 1507 and 1508) to fiscal year 2003 military personnel accounts 

224

of the Department of Defense for the purpose of providing for the 

personnel and personnel support costs of the members of the Armed 

Forces who are participating in Operation Noble Eagle or Operation 

Enduring Freedom in continuation of the war on terrorism in accordance with the purposes referred to in section 1501(a). 

SEC. 1503. OPERATIONS. 

Of the amount authorized to be appropriated in section 1501, 

$4,270,000,000 shall be available only for transfer (subject to sections 1507 and 1508) to fiscal year 2003 operation and maintenance 

accounts and working-capital funds of the Department of Defense 

for operating costs of the conduct of Operation Noble Eagle and Operation Enduring Freedom in continuation of the war on terrorism 

in accordance with the purposes referred to in section 1501(a). 

SEC. 1504. EQUIPMENT REPLACEMENT AND ENHANCEMENT. 

Of the amount authorized to be appropriated in section 1501, 

$1,000,000,000 shall be available only for transfer (subject to sections 1507 and 1508) to fiscal year 2003 procurement and research, 

development, test, and evaluation accounts of the Department of Defense for—

(1) emergency replacement of equipment and munitions lost 

or expended in operations conducted as part of Operation Noble 

Eagle or Operation Enduring Freedom in continuation of the 

war on terrorism in accordance with the purposes referred to in 

section 1501(a); or 

(2) enhancement of critical military capabilities necessary 

to carry out operations as part of those Operations in continuation of the war on terrorism in accordance with those purposes. 

SEC. 1505. CLASSIFIED ACTIVITIES. 

Of the amount authorized to be appropriated in section 1501, 

$1,980,000,000 shall be available only for unspecified intelligence 

and classified activities carried out in support of Operation Noble 

Eagle or Operation Enduring Freedom in continuation of the war 

on terrorism in accordance with the purposes referred to in section 

1501(a), and only by transfer (subject to sections 1507 and 1508) to 

fiscal year 2003 accounts of the Department of Defense in amounts 

as follows: 

(1) To procurement accounts, $1,618,200,000. 

(2) To operation and maintenance accounts, $301,600,000. 

(3) To research, development, test, and evaluation accounts, 

$60,200,000. 

SEC. 1506. PROCUREMENT OF MUNITIONS. 

Of the amount authorized to be appropriated in section 1501, 

$200,000,000 shall be available only for the procurement of munitions for the support of Operation Noble Eagle or Operation Enduring Freedom in continuation of the war on terrorism in accordance 

with the purposes referred to in section 1501(a), and only by transfer (subject to sections 1507 and 1508) to fiscal year 2003 procurement accounts of the Department of Defense in amounts as follows: 

(1) To accounts of the Army for the procurement of ammu- nition $94,000,000. 

(2) To accounts of the Navy for the procurement of weap- ons, $35,000,000. 

225

(3) To accounts of the Navy and Marine Corps for the procurement of ammunition, $25,000,000. 

(4) To accounts of the Air Force for the procurement of ammunition, $40,000,000. 

(5) To Defense-wide procurement accounts for special operations forces, $6,000,000. 

SEC. 1507. DISCRETIONARY RESTORATION OF AUTHORIZATIONS OF 

APPROPRIATIONS REDUCED FOR MANAGEMENT EFFICIENCIES. 

(a) TRANSFER AUTHORITY.—(1) The Secretary of Defense may, 

subject to section 1508, transfer up to a total of $1,000,000,000 of 

the amount authorized to be appropriated by section 1501 to Department of Defense accounts under titles I, II, and III that are reduced 

for savings described in paragraph (2) if and to the extent that the 

Secretary determines that such savings are not achievable. 

(2) The savings referred to in paragraph (1) are savings that 

are to be achieved from—

(A) improved management of Department of Defense contracts for the procurement of services; and 

(B) the deferral of expenditures on financial management 

systems. 

(b) RELATIONSHIP TO OTHER TITLE XV TRANSFER AUTHORITIES.—The total amount transferred under sections 1502 through 

1506 and under section 1507 may not exceed the total amount authorized to be appropriated by section 1501.

SEC. 1508. GENERAL PROVISIONS APPLICABLE TO TRANSFERS. 

(a) MERGER OF TRANSFERRED AMOUNTS.—Amounts transferred 

pursuant to this title shall be merged with, and shall be available 

for the same purposes and the same period as, the account to which 

transferred. 

(b) CONGRESSIONAL NOTICE-AND-WAIT REQUIREMENT.—A transfer may not be made under section 1502, 1503, 1504, 1505, 1506, 

or 1507 until the Secretary of Defense has submitted a notice in 

writing to the congressional defense committees of the proposed 

transfer and a period of 15 days has elapsed after the date such notice is received. Any such notice shall include specification of the 

amount of the proposed transfer, the account to which the transfer 

is to be made, and the purpose of the transfer. 

(c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY.—The transfer authorities provided in this title are in addition to any other 

transfer authority available to the Secretary of Defense under any 

provision of any other title of this Act or under any other provision 

of law.

DIVISION B—MILITARY CONSTRUCTION 

AUTHORIZATIONS 

SEC. 2001. SHORT TITLE. 

This division may be cited as the ‘‘Military Construction Authorization Act for Fiscal Year 2003’’.

226

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. Modification of authority to carry out certain fiscal year 2002 projects. 

Sec. 2106. Modification of authority to carry out certain fiscal year 2001 project.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS. 

(a) INSIDE THE UNITED STATES.—Using amounts appropriated 

pursuant to the authorization of appropriations in section 

2104(a)(1), the Secretary of the Army may acquire real property and 

carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in 

the following table:

Army: Inside the United States

State Installation or location Amount 

Alabama ................................ Anniston Army Depot ..................... $1,900,000 

Fort Rucker ..................................... $15,808,000 

Redstone Arsenal ............................ $1,950,000 

Alaska .................................... Fort Greely ...................................... $2,700,000

Fort Richardson .............................. $20,011,000

Fort Wainwright ............................. $139,906,000

Arizona .................................. Fort Huachuca ................................ $10,400,000

Yuma Proving Ground ................... $4,500,000

California .............................. Fort Irwin ....................................... $2,522,000

Colorado ................................ Fort Carson ..................................... $9,698,000 

District of Columbia ............. Walter Reed Army Medical Center $13,794,000 

Georgia .................................. Fort Benning ................................... $86,250,000 

Fort Stewart/Hunter Army Air 

Field ............................................. $26,000,000 

Hawaii ................................... Schofield Barracks ......................... $191,000,000 

Kansas ................................... Fort Leavenworth ........................... $7,979,000

Fort Riley ........................................ $81,095,000 

Kentucky ................................ Blue Grass Army Depot ................. $5,500,000 

Fort Campbell ................................. $106,300,000 

Fort Knox ........................................ $5,873,000 

Louisiana ............................... Fort Polk ......................................... $37,620,000 

Maryland ............................... Fort Detrick ..................................... $22,500,000

Massachusetts ....................... Natick Research, Development, 

and Engineering Center ............. $4,100,000

Missouri ................................. Fort Leonard Wood ......................... $24,993,000 

New Jersey ............................ Picatinny Arsenal ........................... $7,500,000 

New York ............................... Fort Drum ....................................... $18,300,000 

United States Military Academy, 

West Point .................................... $4,991,000 

North Carolina ...................... Fort Bragg ....................................... $99,632,000 

Oklahoma .............................. Fort Sill ........................................... $39,652,000 

Pennsylvania ......................... Letterkenny Army Depot ................ $1,550,000 

South Carolina ...................... Fort Jackson ................................... $3,051,000 

Texas ...................................... Fort Bliss ......................................... $5,200,000

Fort Hood ........................................ $83,061,000 

Virginia ................................. Fort Eustis ...................................... $4,133,000

Fort Lee ........................................... $7,103,000

Washington ............................ Fort Lewis ....................................... $56,195,000 

Yakima Training Center ................ $3,000,000

Total ............................................. $1,155,767,000 

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(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2104(a)(2), the Secretary of the Army may acquire real property and 

carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in 

the following table:

Army: Outside the United States

Country Installation or location Amount 

Belgium .................................. Supreme Headquarters, Allied Powers Europe ....................................... $13,600,000 

Germany ................................. Area Support Group, Bamberg ......... $17,200,000 

Campbell Barracks ............................ $8,300,000 

Coleman Barracks ............................. $1,350,000

Darmstadt .......................................... $3,500,000 

Grafenwoehr ....................................... $69,866,000 

Landstuhl ........................................... $2,400,000 

Mannheim .......................................... $42,000,000 

Schweinfurt ........................................ $2,000,000 

Italy ........................................ Vicenza ............................................... $34,700,000 

Korea ...................................... Camp Carroll ..................................... $20,000,000 

Camp Castle ....................................... $6,800,000 

Camp Hovey ....................................... $25,000,000 

Camp Humphreys .............................. $36,000,000 

Camp Henry ....................................... $10,200,000 

Camp Tango ....................................... $12,600,000

K16 Airfield ........................................ $40,000,000 

Qatar ...................................... Qatar .................................................. $8,600,000

Total ................................................... $354,116,000 

(c) UNSPECIFIED WORLDWIDE.—Using amounts appropriated 

pursuant to the authorization of appropriations in section 

2104(a)(3), the Secretary of the Army may acquire real property and 

carry out military construction projects for the installation and location, and in the amount, set forth in the following table:

Army: Unspecified Worldwide

Location Installation Amount 

Unspecified Worldwide .......... Unspecified Worldwide ...................... $4,000,000

SEC. 2102. FAMILY HOUSING. 

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2104(a)(6)(A), the Secretary of the Army may construct or acquire 

family housing units (including land acquisition and supporting facilities) at the installations, for the purposes, and in the amounts 

set forth in the following table:

Army: Family Housing

State or Country Installation or location Purpose Amount 

Alaska ................................. Fort Wainwright ....................... 38 Units .......... $17,752,000

Arizona ................................ Yuma Proving Ground ............. 33 Units .......... $6,100,000

Korea ................................... Yongsan ..................................... 10 Units .......... $3,100,000

Total: ...................................... $26,952,000

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(b) PLANNING AND DESIGN.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2104(a)(6)(A), the Secretary of the Army may carry out architectural 

and engineering services and construction design activities with respect to the construction or improvement of family housing units in 

an amount not to exceed $15,653,000. 

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 

Subject to section 2825 of title 10, United States Code, and 

using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(6)(A), the Secretary of the Army may 

improve existing military family housing units in an amount not to 

exceed $239,751,000. 

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY. 

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2002, for military construction, land acquisition, and military family housing 

functions of the Department of the Army in the total amount of 

$3,104,176,000, as follows: 

(1) For military construction projects inside the United 

States authorized by section 2101(a), $949,567,000. 

(2) For military construction projects outside the United 

States authorized by section 2101(b), $354,116,000. 

(3) For military construction projects at unspecified worldwide locations authorized by section 2101(c), $4,000,000. 

(4) For unspecified minor construction projects authorized 

by section 2805 of title 10, United States Code, $21,550,000. 

(5) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, 

$160,313,000. 

(6) For military family housing functions: 

(A) For construction and acquisition, planning and design, and improvement of military family housing and facilities, $282,356,000. 

(B) For support of military family housing (including 

the functions described in section 2833 of title 10, United 

States Code), $1,117,274,000. 

(7) For the construction of phase 2 of Saddle Access Road, 

Pohakoula Training Facility, Hawaii, authorized by section 

2101(a) of the Military Construction Authorization Act for Fiscal Year 2001 (division B 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–389), 

$13,000,000. 

(8) For the construction of phase 3 of a barracks complex, 

Butner Road, at Fort Bragg, North Carolina, authorized by section 2101(a) of the Military Construction Authorization Act for 

Fiscal Year 2001 (division B 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–389), 

$50,000,000. 

(9) For the construction of phase 2 of a barracks complex, 

D Street, at Fort Richardson, Alaska, authorized by section 

2101(a) of the Military Construction Authorization Act for FisVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00252 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
229

cal Year 2002 (division B of Public Law 107–107; 115 Stat. 

1280), $21,000,000. 

(10) For the construction of phase 2 of a barracks complex, 

Nelson Boulevard, at Fort Carson, Colorado, authorized by section 2101(a) of the Military Construction Authorization Act for 

Fiscal Year 2002 (division B of Public Law 107–107; 115 Stat. 

1280), as amended by section 2105 of this Act, $42,000,000. 

(11) For the construction of phase 2 of a basic combat 

trainee complex at Fort Jackson, South Carolina, authorized by 

section 2101(a) of the Military Construction Authorization Act 

for Fiscal Year 2002 (division B of Public Law 107–107; 115 

Stat. 1280), as amended by section 2105 of this Act, 

$39,000,000. 

(12) For the construction of phase 2 of a barracks complex, 

17th and B Streets, at Fort Lewis, Washington, authorized by 

section 2101(a) of the Military Construction Authorization Act 

for Fiscal Year 2002 (division B of Public Law 107–107; 115 

Stat. 1280), $50,000,000. 

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853 of 

title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 

2101 of this Act may not exceed—

(1) the total amount authorized to be appropriated under 

paragraphs (1), (2), and (3) of subsection (a); 

(2) $18,000,000 (the balance of the amount authorized 

under section 2101(a) for construction of a barracks complex, 

Main Post, at Fort Benning, Georgia); 

(3) $100,000,000 (the balance of the amount authorized 

under section 2101(a) for construction of a barracks complex, 

Capron Avenue, at Schofield Barracks, Hawaii); 

(4) $13,200,000 (the balance of the amount authorized 

under section 2101(a) for construction of a combined arms collective training facility at Fort Riley, Kansas); 

(5) $50,000,000 (the balance of the amount authorized 

under section 2101(a) for construction of a barracks complex, 

Range Road, at Fort Campbell, Kentucky); and 

(6) $25,000,000 (the balance of the amount authorized 

under section 2101(a) for construction of a consolidated maintenance complex at Fort Sill, Oklahoma). 

(c) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (12) of subsection (a) is 

the sum of the amounts authorized to be appropriated in such paragraphs, reduced by the following: 

(1) $18,596,000, which represents savings resulting from 

adjustments to foreign currency exchange rates for military construction, military family housing construction, and military 

family housing support outside the United States. 

(2) $29,350,000, which represents savings resulting from 

adjustments in the accounting of civilian personnel benefits. 

(3) $16,740,000, which represents savings resulting from reductions in supervision, inspection, and overhead costs. 

(4) $18,000,000, which represents savings resulting from 

lower-than-expected inflation.

230

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 2002 PROJECTS. 

(a) MODIFICATION.—The table in section 2101(a) of the Military 

Construction Authorization Act for Fiscal Year 2002 (division B of 

Public Law 107-107; 115 Stat. 1281) is amended— (1) in the item relating to Fort Carson, Colorado, by striking ‘‘$66,000,000’’ in the amount column and inserting ‘‘$67,000,000’’; and 

(2) in the item relating to Fort Jackson, South Carolina, by 

striking ‘‘$65,650,000’’ in the amount column and inserting ‘‘$68,650,000’’. (b) CONFORMING AMENDMENTS.—Section 2104(b) of that Act 

(115 Stat. 1284) is amended— (1) in paragraph (3), by striking ‘‘$41,000,000’’ and inserting ‘‘$42,000,000’’; and 

(2) in paragraph (4), by striking ‘‘$36,000,000’’ and inserting ‘‘$39,000,000’’.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 2001 PROJECT. 

The table in section 2101(b) of the Military Construction Authorization Act for Fiscal Year 2001 (division B 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–390) is 

amended by striking ‘‘Camp Page’’ in the installation or location 

column and inserting ‘‘Camp Stanley’’.

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. Modification of authority to carry out certain fiscal year 2002 projects.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS. 

(a) INSIDE THE UNITED STATES.—Using amounts appropriated 

pursuant to the authorization of appropriations in section 

2204(a)(1), the Secretary of the Navy may acquire real property and 

carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in 

the following table:

Navy: Inside the United States

State Installation or location Amount 

Arizona ............................ Marine Corps Air Station, 

Yuma.

$3,000,000

California ........................ Auxiliary Landing Field, San 

Diego (San Clemente Island) $6,150,000

Marine Corps Air-Ground 

Combat Center, Twentynine 

Palms ..................................... $39,470,000

Marine Corps Air Station, 

Camp Pendleton .................... $11,930,000

Marine Corps Air Station, 

Miramar ................................ $12,210,000

Marine Corps Base, Camp Pendleton ..................................... $84,040,000

231

Navy: Inside the United States—Continued

State Installation or location Amount 

Marine Corps Logistics Base, 

Barstow .................................. $4,450,000

Naval Air Station, Lemoore ..... $35,855,000

Naval Air Warfare Center, 

Point Mugu, San Nicholas 

Island ..................................... $6,760,000

Naval Air Warfare Center, 

China Lake ............................ $10,100,000

Naval Construction Training 

Center, Port Hueneme ........... $10,170,000

Naval Post Graduate School, 

Monterey ................................ $9,020,000

Naval Station, San Diego ........ $12,210,000

Connecticut ...................... Naval Submarine Base, New 

London ................................... $7,880,000

District of Columbia ....... Marine Corps Barracks ............ $3,700,000

Naval District, Washington ..... $2,690,000

Florida ............................. Naval Air Station, Jacksonville.$13,342,000

Naval Air Station, Pensacola .. $990,000

Naval School Explosive Ordnance Detachment, Eglin ..... $6,350,000

Naval Station, Mayport ........... $1,900,000

Naval Surface Warfare Center 

Coastal Systems Station, 

Panama City ......................... $10,700,000

Georgia ............................ Naval Submarine Base, Kings 

Bay.

$1,580,000

Hawaii ............................. Marine Corps Base ................... $9,500,000

Naval Shipyard, Pearl Harbor $18,500,000

Naval Station, Pearl Harbor ... $34,090,000 

Illinois .............................. Naval Training Center, Great 

Lakes.

$83,190,000

Indiana ............................ Naval Surface Warfare Center, 

Crane ..................................... $11,610,000

Maine ............................... Naval Air Station, Brunswick $9,830,000

Naval Shipyard, Kittery-Portsmouth.$15,200,000

Maryland ......................... Naval Air Facility, Andrews 

Air Force Base ....................... $9,680,000

Naval Surface Warfare Center, 

Carderock Division ............... $12,900,000

United States Naval Academy $1,800,000 

Mississippi ....................... Naval Air Station, Meridian ... $2,850,000

Naval Construction Battalion 

Center, Gulfport .................... $5,460,000

Naval Station, Pascagoula ...... $25,305,000

New Jersey ...................... Naval Air Warfare Center, 

Lakehurst.

$5,200,000

Naval Weapons Station, Earle $5,600,000

North Carolina ................ Marine Corps Air Station, 

Cherry Point.

$6,040,000

Marine Corps Air Station, New 

River.

$6,920,000

Marine Corps Base, Camp 

Lejeune.

$9,570,000

Rhode Island ................... Naval Station, Newport ........... $15,900,000

South Carolina ................ Marine Corps Air Station, 

Beaufort ................................. $13,700,000

Marine Corps Recruit Depot, 

Parris Island ......................... $10,490,000

Naval Weapons Station, 

Charleston ............................. $5,740,000

Texas ................................ Naval Air Station, Corpus 

Christi.

$7,150,000

232

Navy: Inside the United States—Continued

State Installation or location Amount 

Naval Station, Ingleside .......... $5,000,000

Naval Air Station, Kingsville .. $6,210,000

Virginia ........................... Marine Corps Combat Development Command, Quantico ... $24,864,000

Naval Air Station Oceana ....... $16,490,000

Naval Amphibious Base, Little 

Creek.

$9,770,000

Naval Shipyard, Norfolk, 

Portsmouth.

$36,470,000

Naval Station, Norfolk ............. $168,965,000

Naval Support Activity, Norfolk.$2,260,000

Naval Surface Warfare Center, 

Dahlgren ................................ $15,830,000

Naval Weapons Station, Yorktown.$15,020,000

Washington ...................... Naval Air Station, Whidbey Island.$17,580,000

Naval Magazine, Indian Island.$4,030,000

Naval Station, Bremerton ........ $45,870,000

Naval Submarine Base, Bangor.$22,310,000

Naval Undersea Warfare Center, Keyport ............................ $7,500,000

Puget Sound Naval Shipyard, 

Bremerton .............................. $57,132,000

Strategic Weapons Facility, 

Bangor.

$7,340,000

Various Locations ........... Host Nation Infrastructure ...... $1,000,000

Total ....................................... $1,084,363,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2204(a)(2), the Secretary of the Navy may acquire real property and 

carry out military construction projects for the locations outside the 

United States, and in the amounts, set forth in the following table:

Navy: Outside the United States

Country Installation or location Amount 

Bahrain .................................. Naval Support Activity, Bahrain ..... $25,970,000

Cuba ....................................... Naval Station, Guantanamo Bay ..... $4,280,000

Diego Garcia .......................... Diego Garcia, Naval Support Facility .................................................... $11,090,000

Greece ..................................... Naval Support Activity, Joint Headquarters Command, Larissa .......... $6,800,000

Guam ...................................... Commander, United States Naval 

Forces, Guam .................................. $13,400,000

Iceland .................................... Naval Air Station, Keflavik .............. $14,920,000

Italy ........................................ Naval Air Station, Sigonella ............ $55,660,000

Spain ...................................... Naval Station, Rota ........................... $18,700,000

Total ................................................ $150,820,000

SEC. 2202. FAMILY HOUSING. 

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2204(a)(5)(A), the Secretary of the Navy may construct or acquire 

family housing units (including land acquisition and supporting faVerDate 0ct 31 2002 03:54 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00256 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
233

cilities) at the installations, for the purposes, and in the amounts 

set forth in the following table:

Navy: Family Housing

State or Country Installation or location Purpose Amount 

California .......................... Naval Air Station, Lemoore .. 178 Units ........ $40,981,000

Twentynine Palms .................. 76 Units .......... $19,425,000

Connecticut ........................ Naval Submarine Base, New 

London ................................. 100 Units ........ $24,415,000

Florida ............................... Naval Station, Mayport ......... 1 Unit ............. $329,000

Hawaii ............................... Marine Corps Base, Kaneohe 

Bay ....................................... 65 Units .......... $24,797,000

Maine ................................. Naval Air Station, Brunswick 22 Units .......... $5,000,000

Mississippi ......................... Naval Air Station, Meridian 56 Units .......... $9,755,000

North Carolina .................. Marine Corps Base, Camp 

Lejeune ................................ 317 Units ........ $43,650,000

Virginia ............................. Marine Corps Base, Quantico 290 Units ........ $41,843,000

United Kingdom .............. Joint Maritime Facility, St. 

Mawgan ............................... 62 Units .......... $18,524,000

Total ............ $228,719,000

(b) PLANNING AND DESIGN.—Using amounts appropriated pursuant to the authorization of appropriation in section 2204(a)(5)(A), 

the Secretary of the Navy may carry out architectural and engineering services and construction design activities with respect to the 

construction or improvement of military family housing units in an 

amount not to exceed $11,281,000. 

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 

Subject to section 2825 of title 10, United States Code, and 

using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may improve existing military family housing units in an amount not to exceed $139,468,000. 

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY. 

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2002, for military construction, land acquisition, and military family housing 

functions of the Department of the Navy in the total amount of 

$2,576,381,000, as follows: 

(1) For military construction projects inside the United 

States authorized by section 2201(a), $1,025,598,000. 

(2) For military construction projects outside the United 

States authorized by section 2201(b), $148,250,000.

(3) For unspecified minor construction projects authorized 

by section 2805 of title 10, United States Code, $26,187,000. 

(4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, 

$95,570,000. 

(5) For military family housing functions: 

(A) For construction and acquisition, planning and design, and improvement of military family housing and facilities, $379,468,000. 

(B) For support of military family housing (including 

functions described in section 2833 of title 10, United 

States Code), $867,788,000. 

234

(6) For replacement of a pier at Naval Station, Norfolk, 

Virginia, authorized by section 2201(a) of the Military Construction Authorization Act for Fiscal Year 2002 (division B of 

Public Law 107–107; 115 Stat. 1287), as amended by section 

2205 of this Act, $33,520,000. 

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853 of 

title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 

2201 of this Act may not exceed—

(1) the total amount authorized to be appropriated under 

paragraphs (1) and (2) of subsection (a); 

(2) $10,645,000 (the balance of the amount authorized 

under section 2201(a) for a bachelors enlisted quarters shipboard ashore, Naval Station, Pascagoula, Mississippi); 

(3) $48,120,000 (the balance of the amount authorized 

under section 2201(a) for a bachelors enlisted quarters shipboard ashore, Naval Station, Norfolk, Virginia); and 

(4) $2,570,000 (the balance of the amount authorized under 

section 2201(b) for a quality of life support facility, Naval Air 

Station Sigonella, Italy). 

(c) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (6) of subsection (a) is 

the sum of the amounts authorized to be appropriated in such paragraphs, reduced by the following: 

(1) $3,992,000, which represents savings resulting from adjustments to foreign currency exchange rates for military construction, military family housing construction, and military 

family housing support outside the United States. 

(2) $10,470,000, which represents savings resulting from 

adjustments in the accounting of civilian personnel benefits. 

(3) $15,017,000, which represents savings resulting from reductions in supervision, inspection, and overhead costs. 

(4) $14,000,000, which represents savings resulting from 

lower-than-expected inflation.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 2002 PROJECTS. 

(a) MILITARY CONSTRUCTION PROJECT AT NAVAL STATION, NORFOLK, VIRGINIA.—The table in section 2201(a) of the Military Construction Authorization Act for Fiscal Year 2002 (division B of Public Law 107–107; 115 Stat. 1286) is amended—

(1) in the item relating to Naval Station, Norfolk, Virginia, 

by striking ‘‘$139,270,000’’ in the amount column and inserting 

‘‘$139,550,000’’; and 

(2) by striking the amount identified as the total in the 

amount column and inserting ‘‘$1,059,030,000’’. 

(b) MILITARY FAMILY HOUSING AT QUANTICO, VIRGINIA.—The 

table in section 2202(a) of that Act (115 Stat. 1288) is amended in 

the item relating to Marine Corps Combat Development Command, 

Quantico, Virginia, by striking ‘‘60 Units’’ in the purpose column 

and inserting ‘‘39 Units’’. 

(c) CONFORMING AMENDMENT.—Section 2204(b)(2) of that Act 

(115 Stat. 1289) is amended by striking ‘‘$33,240,000’’ and inserting 

‘‘$33,520,000’’.

235

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. Authority for use of military construction funds for construction of public 

road near Aviano Air Base, Italy, to replace road closed for force protection purposes.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION PROJECTS. 

(a) INSIDE THE UNITED STATES.—Using amounts appropriated 

pursuant to the authorization of appropriations in section 

2304(a)(1), the Secretary of the Air Force may acquire real property 

and carry out military construction projects for the installations 

and locations inside the United States, and in the amounts, set 

forth in the following table:

Air Force: Inside the United States

State Installation or location Amount 

Alaska ..................................... Clear Air Station ............................... $14,400,000 

Eielson Air Force Base ...................... $41,100,000 

Arizona ................................... Davis-Monthan Air Force Base ......... $19,270,000 

Luke Air Force Base .......................... $13,000,000 

Arkansas ................................ Little Rock Air Force Base ................ $25,600,000 

California ............................... Beale Air Force Base ......................... $11,740,000 

Travis Air Force Base ........................ $33,469,000 

Vandenberg Air Force Base ............... $10,500,000 

Colorado ................................. Buckley Air National Guard Base .... $17,700,000 

Peterson Air Force Base .................... $5,500,000 

Schriever Air Force Base ................... $5,700,000 

United States Air Force Academy ..... $4,200,000 

District of Columbia .............. Bolling Air Force Base ...................... $5,000,000 

Florida .................................... Avon Park Air Force Range .............. $2,000,000 

Elgin Air Force Base ......................... $4,250,000 

Hurlburt Field ................................... $15,000,000 

MacDill Air Force Base ..................... $20,000,000 

Georgia ................................... Robins Air Force Base ....................... $29,400,000 

Hawaii .................................... Hickam Air Force Base ..................... $1,350,000 

Kansas .................................... McConnell Air Force Base ................. $7,500,000 

Louisiana ............................... Barksdale Air Force Base .................. $22,900,000 

Maryland ................................ Andrews Air Force Base .................... $9,600,000 

Massachusetts ........................ Hanscom Air Force Base ................... $7,700,000 

Mississippi ............................. Keesler Air Force Base ....................... $22,000,000 

Nebraska ................................ Offutt Air Force Base ......................... $11,000,000 

Nevada ................................... Nellis Air Force Base ......................... $56,850,000 

New Jersey ............................. McGuire Air Force Base .................... $29,831,000 

New Mexico ............................ Cannon Air Force Base ..................... $4,650,000 

Holloman Air Force Base .................. $4,650,000 

Kirtland Air Force Base .................... $21,900,000 

North Carolina ...................... Pope Air Force Base ........................... $9,700,000 

North Dakota ......................... Minot Air Force Base ......................... $5,000,000 

Ohio ........................................ Wright-Patterson Air Force Base ...... $25,000,000 

Oklahoma ............................... Altus Air Force Base .......................... $14,800,000 

Vance Air Force Base ........................ $4,800,000 

South Carolina ...................... Shaw Air Force Base ......................... $6,800,000 

South Dakota ......................... Ellsworth Air Force Base .................. $13,200,000 

Texas ....................................... Goodfellow Air Force Base ................ $10,600,000

Lackland Air Force Base ................... $37,300,000 

Lackland Air Force Base (Camp 

Bullis) ............................................. $10,000,000

Laughlin Air Force Base ................... $8,000,000 

Sheppard Air Force Base .................. $16,000,000 

Utah ........................................ Hill Air Force Base ............................ $14,500,000 

236

Air Force: Inside the United States—Continued

State Installation or location Amount 

Virginia .................................. Langley Air Force Base ..................... $70,940,000

Total ................................................... $724,400,000 

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2304(a)(2), the Secretary of the Air Force may acquire real property 

and carry out military construction projects for the installations 

and locations outside the United States, and in the amounts, set 

forth in the following table:

Air Force: Outside the United States

Country Installation or location Amount 

Diego Garcia .......................... Diego Garcia ...................................... $17,100,000 

Germany ................................. Ramstein Air Force Base ................... $71,783,000 

Guam ...................................... Andersen Air Force Base ................... $31,000,000 

Italy ........................................ Aviano Air Force Base ....................... $6,600,000 

Japan ...................................... Kadena Air Force Base ...................... $6,000,000 

Korea ...................................... Osan Air Base .................................... $15,100,000 

Spain ...................................... Naval Station, Rota ........................... $31,818,000 

Turkey .................................... Incirlik Air Force Base ...................... $1,550,000 

United Kingdom .................... Royal Air Force, Fairford .................. $19,000,000 

Royal Air Force, Lakenheath ............ $13,400,000 

Wake Island ........................... Wake Island ....................................... $24,900,000

Total ................................................ $238,251,000 

(c) UNSPECIFIED WORLDWIDE.—Using amounts appropriated 

pursuant to the authorization of appropriations in section 

2304(a)(3), the Secretary of the Air Force may acquire real property 

and carry out military construction projects for the installation and 

location, and in the amount, set forth in the following table:

Air Force: Unspecified Worldwide

Location Installation Amount 

Unspecified Worldwide .......... Classified Location ............................ $24,993,000

Total ................................................ $24,993,000

SEC. 2302. FAMILY HOUSING. 

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2304(a)(6)(A), the Secretary of the Air Force may construct or acquire family housing units (including land acquisition and supporting facilities) at the installations, for the purposes, and in the 

amounts set forth in the following table:

Air Force: Family Housing

State or Country Installation or location Purpose Amount 

Arizona .............................. Luke Air Force Base ............... 140 Units ........ $18,954,000 

California .......................... Travis Air Force Base ............ 110 Units ........ $24,320,000 

Colorado ............................ Peterson Air Force Base ......... 2 Units ............ $959,000 

United States Air Force Academy ....................................... 71 Units .......... $12,424,000 

Delaware ............................ Dover Air Force Base ............. 112 Units ........ $19,615,000 

237

Air Force: Family Housing—Continued

State or Country Installation or location Purpose Amount 

Florida ............................... Eglin Air Force Base .............. Housing Office $597,000 

Eglin Air Force Base .............. 134 Units ........ $15,906,000 

MacDill Air Force Base .......... 96 Units .......... $18,086,000 

Hawaii ............................... Hickam Air Force Base .......... 96 Units .......... $29,050,000 

Idaho .................................. Mountain Home Air Force 

Base ..................................... 95 Units .......... $24,392,000 

Kansas ............................... McConnell Air Force Base ..... Housing Maintenance Facility ............ $1,514,000 

Maryland ........................... Andrews Air Force Base ........ 53 Units .......... $9,838,000 

Andrews Air Force Base ........ 52 Units .......... $8,807,000 

Mississippi ......................... Columbus Air Force Base ...... Housing Office $412,000 

Keesler Air Force Base ........... 117 Units ........ $16,505,000 

Missouri ............................. Whiteman Air Force Base ...... 97 Units .......... $17,107,000 

Montana ............................ Malmstrom Air Force Base .... 18 Units .......... $4,717,000 

New Mexico ....................... Holloman Air Force Base ....... 101 Units ........ $20,161,000 

North Carolina .................. Pope Air Force Base ............... Housing Maintenance Facility ............ $991,000 

Seymour Johnson Air Force 

Base ..................................... 126 Units ........ $18,615,000 

North Dakota .................... Grand Forks Air Force Base .. 150 Units ........ $30,140,000 

Minot Air Force Base ............. 112 Units ........ $21,428,000 

Minot Air Force Base ............. 102 Units ........ $20,315,000 

Oklahoma .......................... Vance Air Force Base ............. 59 Units .......... $11,423,000 

South Dakota .................... Ellsworth Air Force Base ....... Housing Maintenance Facility ............ $447,000 

Ellsworth Air Force Base ....... 22 Units .......... $4,794,000 

Texas .................................. Dyess Air Force Base .............. 85 Units .......... $14,824,000 

Randolph Air Force Base ....... Housing Maintenance Facility ............ $447,000 

Randolph Air Force Base ....... 112 Units ........ $14,311,000 

Virginia ............................. Langley Air Force Base .......... Housing Office $1,193,000 

Germany ............................ Ramstein Air Force Base ....... 19 Units .......... $8,534,000 

Korea .................................. Osan Air Base ........................ 113 Units ........ $35,705,000 

Osan Air Base ........................ Housing Supply Warehouse ........... $834,000 

United Kingdom ............... Royal Air Force, Lakenheath Housing Office 

and Maintenance Facility ................ $2,203,000

Total ........................................ $429,568,000 

(b) PLANNING AND DESIGN.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2304(a)(6)(A), the Secretary of the Air Force may carry out architectural and engineering services and construction design activities 

with respect to the construction or improvement of military family 

housing units in an amount not to exceed $34,188,000. 

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 

Subject to section 2825 of title 10, United States Code, and 

using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(6)(A), the Secretary of the Air Force may 

improve existing military family housing units in an amount not to 

exceed $226,068,000. 

238

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE. 

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2002, for military construction, land acquisition, and military family housing 

functions of the Department of the Air Force in the total amount of 

$2,633,738,000, as follows: 

(1) For military construction projects inside the United 

States authorized by section 2301(a), $717,300,000. 

(2) For military construction projects outside the United 

States authorized by section 2301(b), $238,251,000. 

(3) For military construction projects at unspecified worldwide locations authorized by section 2301(c), $24,993,000. 

(4) For unspecified minor construction projects authorized 

by section 2805 of title 10, United States Code, $11,500,000. 

(5) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, 

$82,820,000. 

(6) For military housing functions: 

(A) For construction and acquisition, planning and design, and improvement of military family housing and facilities, $689,824,000. 

(B) For support of military family housing (including 

functions described in section 2833 of title 10, United 

States Code), $869,050,000. 

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853 of 

title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 

2301 of this Act may not exceed—

(1) the total amount authorized to be appropriated under 

paragraphs (1), (2) and (3) of subsection (a); and 

(2) $7,100,000 (the balance of the amount authorized under 

section 2301(a) for construction of a consolidated base engineer 

complex at Altus Air Force Base, Oklahoma). 

(c) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (6) of subsection (a) is 

the sum of the amounts authorized to be appropriated in such paragraphs, reduced by the following: 

(1) $19,063,000, which represents savings resulting from 

adjustments to foreign currency exchange rates for military construction, military family housing construction, and military 

family housing support outside the United States. 

(2) $15,306,000, which represents savings resulting from reductions in supervision, inspection, and overhead costs. 

(3) $16,000,000, which represents savings resulting from 

lower-than-expected inflation.

SEC. 2305. AUTHORITY FOR USE OF MILITARY CONSTRUCTION FUNDS 

FOR CONSTRUCTION OF PUBLIC ROAD NEAR AVIANO AIR 

BASE, ITALY, TO REPLACE ROAD CLOSED FOR FORCE PROTECTION PURPOSES. 

(a) AUTHORITY TO USE FUNDS.—Using amounts authorized to 

be appropriated by section 2304(a)(2), the Secretary of the Air Force 

may carry out a project to provide a public road, and associated improvements, to replace a public road adjacent to Aviano Air Base, 

Italy, that has been closed for force protection purposes. 

239

(b) SCOPE OF AUTHORITY.—(1) The authority of the Secretary to 

carry out the project referred to in subsection (a) shall include authority as follows: 

(A) To acquire property for the project for transfer to a host 

nation authority. 

(B) To provide funds to a host nation authority to acquire 

property for the project. 

(C) To make a contribution to a host nation authority for 

purposes of carrying out the project. 

(D) To provide vehicle and pedestrian access to landowners 

affected by the project. 

(2) The acquisition of property using the authority in subparagraph (A) or (B) of paragraph (1) may be made regardless of whether or not ownership of such property will vest in the United States. 

(c) INAPPLICABILITY OF CERTAIN REAL PROPERTY MANAGEMENT

REQUIREMENT.—Section 2672(a)(1)(B) of title 10, United States 

Code, shall not apply with respect to any acquisition of interests in 

land for purposes of the project authorized by subsection (a).

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects. 

Sec. 2402. Improvements to military family housing units. 

Sec. 2403. Energy conservation projects. 

Sec. 2404. Authorization of appropriations, Defense Agencies. 

Sec. 2405. Modification of authority to carry out certain fiscal year 2000 project. 

Sec. 2406. Modification of authority to carry out certain fiscal year 1999 project. 

Sec. 2407. Modification of authority to carry out certain fiscal year 1997 project.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND 

LAND ACQUISITION PROJECTS. 

(a) INSIDE THE UNITED STATES.—Using amounts appropriated 

pursuant to the authorization of appropriations in section 

2404(a)(1), the Secretary of Defense may acquire real property and 

carry out military construction projects for the installations and locations inside the United States, and in the amounts, set forth in 

the following table:

Defense Agencies: Inside the United States

Agency Installation or location Amount 

Chemical Demilitarization .... Pine Bluff, Arkansas ......................... $18,937,000

Defense Intelligence Agency .. Bolling Air Force Base, District of 

Columbia ........................................ $111,958,000

Defense Logistics Agency ....... Defense Supply Center, Richmond, 

Virginia ........................................... $5,500,000

Naval Air Station, New Orleans, 

Louisiana ........................................ $9,500,000

Travis Air Force Base, California .... $16,000,000

Defense Threat Reduction 

Agency ................................. Fort Belvoir, Virginia ........................ $76,388,000

Department of Defense Dependents Schools ................ Fort Bragg, North Carolina .............. $2,036,000

Fort Jackson, South Carolina ........... $2,506,000

Marine Corps Base, Camp Lejeune, 

North Carolina ............................... $12,138,000

Marine Corps Base, Quantico, Virginia ................................................ $1,418,000

United States Military Academy, 

West Point, New York .................... $4,347,000

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Defense Agencies: Inside the United States—Continued

Agency Installation or location Amount 

Joint Chiefs of Staff .............. Peterson Air Force Base, Colorado ... $25,000,000

Missile Defense Agency .......... Kauai, Hawaii .................................... $23,400,000

National Security Agency ...... Fort Meade, Maryland ...................... $4,484,000

Special Operations Command ................................... Dam Neck, Virginia ........................... $3,900,000

Fort Bragg, North Carolina .............. $30,800,000

Hurlburt Field, Florida ..................... $11,100,000

Naval Amphibious Base, Little 

Creek, Virginia ............................... $14,300,000

Stennis Space Center, Mississippi .... $5,000,000

TRICARE Management Activity .................................... Elmendorf Air Force Base, Alaska ... $10,400,000

Hickam Air Force Base, Hawaii ....... $2,700,000

Washington Headquarters 

Services ............................... District of Columbia .......................... $2,500,000

Total ................................................ $394,312,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated pursuant to the authorization of appropriations in section 

2404(a)(2), the Secretary of Defense may acquire real property and 

carry out military construction projects for the installations and locations outside the United States, and in the amounts, set forth in 

the following table:

Defense Agencies: Outside the United States

Agency Installation or location Amount 

Defense Logistics Agency ....... Andersen Air Force Base, Guam ...... $17,586,000

Naval Forces Marianas Islands, 

Guam .............................................. $6,000,000

Naval Station, Rota, Spain ............... $23,400,000

Royal Air Force, Fairford, United 

Kingdom ......................................... $17,000,000

Yokota Air Base, Japan .................... $23,000,000

Department of Defense Dependents Schools ................ Kaiserslautern, Germany .................. $957,000

Lajes Field, Azores, Portugal ............ $1,192,000

Seoul, Korea ....................................... $31,683,000 

Supreme Headquarters, Allied Powers Europe, Belgium ....................... $1,573,000

Spangdahlem Air Base, Germany .... $997,000

Vicenza, Italy ..................................... $2,117,000

TRICARE Management Activity .................................... Naval Support Activity, Naples, 

Italy ................................................. $41,449,000

Spangdahlem Air Base, Germany .... $39,629,000

Total ................................................ $206,583,000

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS. 

Subject to section 2825 of title 10, United States Code, and 

using amounts appropriated pursuant to the authorization of appropriations in section 2404(a)(8)(A), the Secretary of Defense may improve existing military family housing units in an amount not to exceed $5,480,000. 

SEC. 2403. ENERGY CONSERVATION PROJECTS. 

Using amounts appropriated pursuant to the authorization of 

appropriations in section 2404(a)(6), the Secretary of Defense may 

241

carry out energy conservation projects under section 2865 of title 10, 

United States Code, in the amount of $34,531,000. 

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES. 

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2002, for military construction, land acquisition, and military family housing 

functions of the Department of Defense (other than the military departments) in the total amount of $1,434,795,000, as follows: 

(1) For military construction projects inside the United States authorized by section 2401(a), $357,712,000. 

(2) For military construction projects outside the United States authorized by section 2401(b), $206,583,000. 

(3) For unspecified minor construction projects under sec- tion 2805 of title 10, United States Code, $16,293,000. 

(4) For contingency construction projects of the Secretary of 

Defense under section 2804 of title 10, United States Code, 

$10,000,000. 

(5) For architectural and engineering services and construction design under section 2807 of title 10, United States Code, 

$45,532,000. 

(6) For energy conservation projects authorized by section 

2403, $34,531,000. 

(7) For base closure and realignment activities as authorized by the Defense Base Closure and Realignment Act of 1990 

(part A of title XXIX of Public Law 101–510; 10 U.S.C. 2687 

note), $565,138,000. 

(8) For military family housing functions: 

(A) For improvement of military family housing and 

facilities, $5,480,000. 

(B) For support of military family housing (including 

functions described in section 2833 of title 10, United 

States Code), $42,432,000. 

(C) For credit to the Department of Defense Family 

Housing Improvement Fund established by section 

2883(a)(1) of title 10, United States Code, $2,000,000. 

(9) For payment of a claim against the Hospital Replace- ment project at Elmendorf Air Force Base, Alaska, $10,400,000. 

(10) For the construction of phase 4 of an ammunition demilitarization facility at Pueblo Chemical Activity, Colorado, 

authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 

104–201; 110 Stat. 2775), as amended by section 2406 of the 

Military Construction Authorization Act for Fiscal Year 2000 

(division B of Public Law 106–65; 113 Stat. 839) and section 

2407 of this Act, $38,000,000. 

(11) For the construction of phase 5 of an ammunition demilitarization facility at Newport Army Depot, Indiana, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1999 (division B of Public Law 105–

261; 112 Stat. 2193), as amended by section 2406 of this Act, 

$61,494,000. 

(12) For the construction of phase 5 of an ammunition demilitarization facility at Aberdeen Proving Ground, Maryland, 

authorized by section 2401(a) of the Military Construction AuVerDate 0ct 31 2002 03:54 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00265 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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thorization Act for Fiscal Year 1999 (division B of Public Law 

105–261; 112 Stat. 2193), as amended by section 2406 of the 

Military Construction Authorization Act for Fiscal Year 2002 

(division B of Public Law 107–107; 115 Stat. 1299), 

$20,600,000. 

(13) For the construction of phase 3 of an ammunition demilitarization facility at Blue Grass Army Depot, Kentucky, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 2000 (division B of Public Law 106–

65; 113 Stat. 835), as amended by section 2405 of the Military 

Construction Authorization Act for Fiscal Year 2002 (division B 

of Public Law 107–107; 115 Stat. 1298) and section 2405 of this 

Act, $10,300,000. 

(14) For the construction of phase 3 of an ammunition demilitarization support facility at Blue Grass Army Depot, Kentucky, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 2000 (division B of Public Law 106–65; 113 Stat. 835), $8,300,000. 

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853 of 

title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section 

2401 of this Act may not exceed—

(1) the total amount authorized to be appropriated under 

paragraphs (1) and (2) of subsection (a); and 

(2) $26,200,000 (the balance of the amount authorized 

under section 2401(a) for the construction of the Defense Threat 

Reduction Center, Fort Belvoir, Virginia). 

(c) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (14) of subsection (a) is 

the sum of the amounts authorized to be appropriated in such paragraphs, reduced by the following: 

(1) $2,976,000, which represents savings resulting from adjustments to foreign currency exchange rates for military construction, military family housing construction, and military 

family housing support outside the United States.

(2) $37,000, which represents savings resulting from adjustments in the accounting of civilian personnel benefits. 

(3) $7,414,000, which represents savings resulting from reductions in supervision, inspection, and overhead costs. 

(4) $7,000,000, which represents savings resulting from 

lower-than-expected inflation.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 2000 PROJECT. 

(a) MODIFICATION.—The table in section 2401(a) of the Military 

Construction Authorization Act for Fiscal Year 2000 (division B of 

Public Law 106–65; 113 Stat. 835), as amended by section 2405 of 

the Military Construction Authorization Act for Fiscal Year 2002 

(division B of Public Law 107–107; 115 Stat. 1298), is further 

amended—

(1) under the agency heading relating to Chemical Demilitarization, in the item relating to Blue Grass Army Depot, Kentucky, by striking ‘‘$254,030,000’’ in the amount column and inserting ‘‘$290,325,000’’; and 

243

(2) by striking the amount identified as the total in the 

amount column and inserting ‘‘$748,245,000’’. 

(b) CONFORMING AMENDMENT.—Section 2405(b)(3) of the Military Construction Authorization Act for Fiscal Year 2000 (113 Stat. 

839), as so amended, is further amended by striking ‘‘$231,230,000’’

and inserting ‘‘$267,525,000’’.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 1999 PROJECT. 

(a) MODIFICATION.—The table in section 2401(a) of the Military 

Construction Authorization Act for Fiscal Year 1999 (division B of 

Public Law 105–261; 112 Stat. 2193), as amended by section 2406 

of the Military Construction Authorization Act for Fiscal Year 2002 

(division B of Public Law 107–107; 115 Stat. 1299), is further 

amended—

(1) under the agency heading relating to Chemical Demilitarization, in the item relating to Newport Army Depot, Indiana, by striking ‘‘$191,550,000’’ in the amount column and inserting ‘‘$293,853,000’’; and 

(2) by striking the amount identified as the total in the 

amount column and inserting ‘‘$829,919,000’’. 

(b) CONFORMING AMENDMENT.—Section 2404(b)(2) of the Military Construction Authorization Act for Fiscal Year 1999 (112 Stat. 

2196) is amended by striking ‘‘$162,050,000’’ and inserting 

‘‘$264,353,000’’.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 1997 PROJECT. 

(a) MODIFICATION.—The table in section 2401(a) of the Military 

Construction Authorization Act for Fiscal Year 1997 (division B of 

Public Law 104–201; 110 Stat. 2775), as amended by section 2406 

of the Military Construction Authorization Act for Fiscal Year 2000 

(division B of Public Law 106–65; 113 Stat. 839), is further amended—

(1) under the agency heading relating to Chemical Demilitarization Program, in the item relating to Pueblo Chemical Activity, Colorado, by striking ‘‘$203,500,000’’ in the amount column and inserting ‘‘$261,000,000’’; and 

(2) by striking the amount identified as the total in the 

amount column and inserting ‘‘$607,454,000’’. 

(b) CONFORMING AMENDMENT.—Section 2406(b)(2) of the Military Construction Authorization Act for Fiscal Year 1997 (110 Stat. 

2779), as so amended, is further amended by striking 

‘‘$203,500,000’’ and inserting ‘‘$261,000,000’’.

TITLE XXV—NORTH ATLANTIC TREATY 

ORGANIZATION SECURITY INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects. 

Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS. 

The Secretary of Defense may make contributions for the North 

Atlantic Treaty Organization Security Investment program as proVerDate 0ct 31 2002 03:54 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00267 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
244

vided in section 2806 of title 10, United States Code, in an amount 

not to exceed the sum of the amount authorized to be appropriated 

for this purpose in section 2502 and the amount collected from the 

North Atlantic Treaty Organization as a result of construction previously financed by the United States. 

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO. 

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2002, for contributions by the Secretary of Defense under section 2806 of title 10, 

United States Code, for the share of the United States of the cost 

of projects for the North Atlantic Treaty Organization Security Investment program authorized by section 2501, in the amount of 

$168,200,000. 

(b) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to subsection (a) is the amount specified in such 

subsection, reduced by $1,000,000, which represents savings resulting from lower-than-expected inflation.

TITLE XXVI—GUARD AND RESERVE 

FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land acquisition 

projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND 

LAND ACQUISITION PROJECTS. 

(a) IN GENERAL.—There are authorized to be appropriated for 

fiscal years beginning after September 30, 2002, for the costs of acquisition, architectural and engineering services, and construction 

of facilities for the Guard and Reserve Forces, and for contributions 

therefor, under chapter 1803 of title 10, United States Code 

(including the cost of acquisition of land for those facilities), the following amounts: 

(1) For the Department of the Army—

(A) for the Army National Guard of the United States, 

$237,236,000; and 

(B) for the Army Reserve, $99,399,000. 

(2) For the Department of the Navy, for the Naval and Marine Corps Reserve, $75,801,000. 

(3) For the Department of the Air Force—

(A) for the Air National Guard of the United States, 

$204,215,000; and 

(B) for the Air Force Reserve, $85,649,000. 

(b) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to subsection (a)(1)(A) is the amount specified in 

such subsection, reduced by $1,000,000, which represents savings 

resulting from lower-than-expected inflation.

TITLE XXVII—EXPIRATION AND 

EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be specified by law. 

Sec. 2702. Extension of authorizations of certain fiscal year 2000 projects. 

Sec. 2703. Extension of authorizations of certain fiscal year 1999 projects.

245

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE SPECIFIED BY LAW. 

(a) EXPIRATION OF AUTHORIZATIONS AFTER THREE YEARS.—Except as provided in subsection (b), all authorizations contained in 

titles XXI through XXVI for military construction projects, land acquisition, family housing projects and facilities, and contributions 

to the North Atlantic Treaty Organization Security Investment program (and authorizations of appropriations therefor) shall expire on 

the later of—(1) October 1, 2005; or 

(2) the date of the enactment of an Act authorizing funds 

for military construction for fiscal year 2006. 

(b) EXCEPTION.—Subsection (a) shall not apply to authorizations for military construction projects, land acquisition, family 

housing projects, and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program (and authorizations of appropriations therefor) for which appropriated 

funds have been obligated before the later of— (1) October 1, 2005; or 

(2) the date of the enactment of an Act authorizing funds 

for fiscal year 2006 for military construction projects, land acquisition, family housing projects and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program. 

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 

2000 PROJECTS. 

(a) EXTENSION OF CERTAIN PROJECTS.—Notwithstanding section 2701 of the Military Construction Authorization Act for Fiscal 

Year 2000 (division B of Public Law 106–65; 113 Stat. 841), authorizations set forth in the tables in subsection (b), as provided in section 2302 or 2601 of that Act, shall remain in effect until October 

1, 2003, or the date of the enactment of an Act authorizing funds 

for military construction for fiscal year 2004, whichever is later. 

(b) TABLES.—The tables referred to in subsection (a) are as follows:

Air Force: Extension of 2000 Project Authorizations

State Installation or location Project Amount 

Oklahoma ........................ Tinker Air Force Base .......... Replace Family 

Housing (41 

Units) ............... $6,000,000 

Texas ................................ Lackland Air Force Base ...... Dormitory ............ $5,300,000

Army National Guard: Extension of 2000 Project Authorization

State Installation or location Project Amount 

Virginia ............................ Fort Pickett ........................... Multi-Purpose 

Range Complex–Heavy ....... $13,500,000

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 

1999 PROJECTS. 

(a) EXTENSION.—Notwithstanding section 2701 of the Military 

Construction Authorization Act for Fiscal Year 1999 (division B of 

Public Law 105–261; 112 Stat. 2199), authorizations set forth in the 

246

table in subsection (b), as provided in section 2302 of that Act and 

extended by section 2702 of the Military Construction Authorization 

Act for Fiscal Year 2002 (division B of Public Law 107–107; 115 

Stat. 1301), shall remain in effect until October 1, 2003, or the date 

of the enactment of an Act authorizing funds for military construction for fiscal year 2004, whichever is later. 

(b) TABLE.—The table referred to in subsection (a) is as follows:

Air Force: Extension of 1999 Project Authorizations

State Installation or location Project Amount 

Delaware .......................... Dover Air Force Base ............ Replace Family 

Housing (55 

Units) ............... $8,988,000 

Florida ............................. Patrick Air Force Base ......... Replace Family 

Housing (46 

Units) ............... $9,692,000 

New Mexico ...................... Kirtland Air Force Base ....... Replace Family 

Housing (37 

Units) ............... $6,400,000 

Ohio .................................. Wright-Patterson Air Force 

Base .................................... Replace Family 

Housing (40 

Units) ............... $5,600,000 

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military Family Housing 

Changes 

Sec. 2801. Lease of military family housing in Korea. 

Sec. 2802. Modification of alternative authority for acquisition and improvement of 

military housing. 

Sec. 2803. Pilot housing privatization authority for acquisition or construction of 

military unaccompanied housing. 

Sec. 2804. Repeal of source requirements for family housing construction overseas. 

Sec. 2805. Availability of energy cost savings realized at military installations. 

Subtitle B—Real Property and Facilities Administration 

Sec. 2811. Agreements to limit encroachments and other constraints on military 

training, testing, and operations. 

Sec. 2812. Conveyance of surplus real property for natural resource conservation 

purposes. 

Sec. 2813. Modification of demonstration program on reduction in long-term facility 

maintenance costs. 

Sec. 2814. Expanded authority to transfer property at military installations to be 

closed to persons who construct or provide military family housing. 

Subtitle C—Land Conveyances 

PART I—ARMY CONVEYANCES

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to establish Mountain 

Longleaf National Wildlife Refuge. 

Sec. 2822. Land conveyances, lands in Alaska no longer required for National 

Guard purposes. 

Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas. 

Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky. 

Sec. 2825. Land conveyance, Fort Campbell, Kentucky. 

Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, Minnesota. 

Sec. 2827. Land conveyance, Fort Monmouth, New Jersey. 

Sec. 2828. Land conveyance, Fort Bliss, Texas. 

Sec. 2829. Land conveyance, Fort Hood, Texas. 

Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, Virginia. 

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PART II—NAVY CONVEYANCES

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San Diego, California. 

Sec. 2832. Modification of authority for land transfer and conveyance, Naval Security Group Activity, Winter Harbor, Maine. 

Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts. 

Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island. 

Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 

Quantico, and Prince William Forest Park, Virginia.

PART III—AIR FORCE CONVEYANCES

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, California. 

Sec. 2842. Land exchange, Buckley Air Force Base, Colorado. 

Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, Nevada. 

Subtitle D—Other Matters 

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia. 

Sec. 2852. Sale of excess treated water and wastewater treatment capacity, Marine 

Corps Base, Camp Lejeune, North Carolina. 

Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and related 

land conveyances. 

Sec. 2854. Special requirement for adding military installation to closure list.

Subtitle A—Military Construction Program 

and Military Family Housing Changes

SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA. 

(a) INCREASE IN NUMBER OF UNITS AUTHORIZED FOR LEASE AT

CURRENT MAXIMUM AMOUNT.—Paragraph (3) of section 2828(e) of 

title 10, United States Code, is amended by striking ‘‘800 units’’ and 

inserting ‘‘1,175 units’’. 

(b) AUTHORITY TO LEASE ADDITIONAL NUMBER OF UNITS AT INCREASED MAXIMUM AMOUNT.—That section is further amended—

(1) by redesignating paragraphs (4) and (5) as paragraphs 

(5) and (6), respectively; 

(2) by inserting after paragraph (3) the following new paragraph (4): 

‘‘(4) In addition to the units of family housing referred to in 

paragraph (1) for which the maximum lease amount is $25,000 per 

unit per year, the Secretary of the Army may lease not more than 

2,400 units of family housing in Korea subject to a maximum lease 

amount of $35,000 per unit per year.’’; 

(3) in paragraph (5), as so redesignated, by striking ‘‘and 

(3)’’ and inserting ‘‘(3), and (4)’’; and 

(4) in paragraph (6), as so redesignated, by striking 

‘‘53,000’’ and inserting ‘‘55,775’’.

SEC. 2802. MODIFICATION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING. 

(a) AUTHORIZED UTILITIES AND SERVICES.—Section 2872a(b) of 

title 10, United States Code, is amended by adding at the end the 

following new paragraphs: 

‘‘(11) Firefighting and fire protection services. 

‘‘(12) Police protection services.’’. 

(b) LEASING OF HOUSING.—(1) Section 2874 of such title is 

amended—

(A) by redesignating subsection (b) as subsection (c); and 

248

(B) by striking subsection (a) and inserting the following 

new subsections: 

‘‘(a) LEASE AUTHORIZED.—The Secretary concerned may enter 

into contracts for the lease of housing units that the Secretary determines are suitable for use as military family housing or military 

unaccompanied housing. 

‘‘(b) USE OF LEASED UNITS.—The Secretary concerned shall utilize housing units leased under this section as military family housing or military unaccompanied housing, as appropriate.’’. 

(2) The heading for such section is amended to read as follows: 

‘‘§ 2874. Leasing of housing’’. 

(3) The table of sections at the beginning of subchapter IV of 

chapter 169 of such title is amended by striking the item relating 

to section 2874 and inserting the following new item:

‘‘2874. Leasing of housing.’’.

(c) REPEAL OF INTERIM LEASE AUTHORITY.—(1) Section 2879 of 

such title is repealed. 

(2) The table of sections at the beginning of subchapter IV of 

chapter 169 of such title is amended by striking the item relating 

to section 2879.

SEC. 2803. PILOT HOUSING PRIVATIZATION AUTHORITY FOR ACQUISITION OR CONSTRUCTION OF MILITARY UNACCOMPANIED 

HOUSING. 

(a) IN GENERAL.—(1) Subchapter IV of chapter 169 of title 10, 

United States Code, is amended by inserting after section 2881 the 

following new section:

‘‘§ 2881a. Pilot projects for acquisition or construction of 

military unaccompanied housing 

‘‘(a) PILOT PROJECTS AUTHORIZED.—The Secretary of the Navy 

may carry out not more than three pilot projects under the authority 

of this section or another provision of this subchapter to use the private sector for the acquisition or construction of military unaccompanied housing in the United States, including any territory or possession of the United States. 

‘‘(b) TREATMENT OF HOUSING; ASSIGNMENT OF MEMBERS.—The 

Secretary of the Navy may assign members of the armed forces 

without dependents to housing units acquired or constructed under 

the pilot projects, and such housing units shall be considered as 

quarters of the United States or a housing facility under the jurisdiction of the Secretary for purposes of section 403 of title 37. 

‘‘(c) BASIC ALLOWANCE FOR HOUSING.—(1) The Secretary of Defense may prescribe and, under section 403(n) of title 37, pay for 

members of the armed forces without dependents in privatized housing acquired or constructed under the pilot projects higher rates of 

partial basic allowance for housing than the rates authorized under 

paragraph (2) of such section. ‘‘(2) The partial basic allowance for housing paid for a member 

at a higher rate under this subsection may be paid directly to the 

private sector source of the housing to whom the member is obligated to pay rent or other charge for residing in such housing if the 

private sector source credits the amount so paid against the amount 

owed by the member for the rent or other charge. 

249

‘‘(d) FUNDING.—(1) The Secretary of the Navy shall use the Department of Defense Military Unaccompanied Housing Improvement 

Fund to carry out activities under the pilot projects. 

‘‘(2) Subject to 90 days prior notification to the appropriate committees of Congress, such additional amounts as the Secretary of 

Defense considers necessary may be transferred to the Department 

of Defense Military Unaccompanied Housing Improvement Fund 

from amounts appropriated for construction of military unaccompanied housing in military construction accounts. The amounts so 

transferred shall be merged with and be available for the same purposes and for the same period of time as amounts appropriated directly to the Fund. 

‘‘(e) REPORTS.—(1) The Secretary of the Navy shall transmit to 

the appropriate committees of Congress a report describing—

‘‘(A) each contract for the acquisition of military unaccompanied housing that the Secretary proposes to solicit under the 

pilot projects; 

‘‘(B) each conveyance or lease proposed under section 2878 

of this title in furtherance of the pilot projects; and 

‘‘(C) the proposed partial basic allowance for housing rates 

for each contract as they vary by grade of the member and how 

they compare to basic allowance for housing rates for other contracts written under the authority of the pilot programs. 

‘‘(2) The report shall describe the proposed contract, conveyance, 

or lease and the intended method of participation of the United 

States in the contract, conveyance, or lease and provide a justification of such method of participation. The report shall be submitted 

not later than 90 days before the date on which the Secretary issues 

the contract solicitation or offers the conveyance or lease. 

‘‘(f) EXPIRATION.—Notwithstanding section 2885 of this title, the 

authority of the Secretary of the Navy to enter into a contract under 

the pilot programs shall expire September 30, 2007.’’.

(2) The table of sections at the beginning of such subchapter is 

amended by inserting after the item relating to section 2881 the following new item:

‘‘2881a. Pilot projects for acquisition or construction of military unaccompanied housing.’’.

(b) CONFORMING AMENDMENT.—Section 2871(7) of title 10, 

United States Code, is amended by inserting before the period at the 

end the following: ‘‘and transient housing intended to be occupied 

by members of the armed forces on temporary duty’’.

SEC. 2804. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING 

CONSTRUCTION OVERSEAS. 

Section 803 of the Military Construction Authorization Act, 

1984 (Public Law 98–115; 10 U.S.C. 2821 note) is repealed.

SEC. 2805. AVAILABILITY OF ENERGY COST SAVINGS REALIZED AT 

MILITARY INSTALLATIONS. 

Section 2865(b) of title 10, United States Code, is amended by 

striking ‘‘through the end of the fiscal year following the fiscal year 

for which the funds were appropriated’’ and inserting ‘‘until expended’’.

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Subtitle B—Real Property and Facilities 

Administration

SEC. 2811. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON MILITARY TRAINING, TESTING, AND OPERATIONS. 

(a) IN GENERAL.—Chapter 159 of title 10, United States Code, 

is amended by inserting after section 2684 the following new section: 

‘‘§ 2684a. Agreements to limit encroachments and other constraints on military training, testing, and operations 

‘‘(a) AGREEMENTS AUTHORIZED.—The Secretary of Defense or 

the Secretary of a military department may enter into an agreement 

with an eligible entity described in subsection (b) to address the use 

or development of real property in the vicinity of a military installation for purposes of—

‘‘(1) limiting any development or use of the property that 

would be incompatible with the mission of the installation; or 

‘‘(2) preserving habitat on the property in a manner that—

‘‘(A) is compatible with environmental requirements; 

and 

‘‘(B) may eliminate or relieve current or anticipated environmental restrictions that would or might otherwise restrict, impede, or otherwise interfere, whether directly or indirectly, with current or anticipated military training, testing, or operations on the installation. 

‘‘(b) ELIGIBLE ENTITIES.—An agreement under this section may 

be entered into with any of the following: 

‘‘(1) A State or political subdivision of a State. 

‘‘(2) A private entity that has as its stated principal organizational purpose or goal the conservation, restoration, or preservation of land and natural resources, or a similar purpose or 

goal, as determined by the Secretary concerned. 

‘‘(c) INAPPLICABILITY OF CERTAIN CONTRACT REQUIREMENTS.—

Chapter 63 of title 31 shall not apply to any agreement entered into 

under this section. 

‘‘(d) ACQUISITION AND ACCEPTANCE OF PROPERTY AND INTER- ESTS.—(1) An agreement with an eligible entity under this section 

may provide for— ‘‘(A) the acquisition by the entity of all right, title, and interest in and to any real property, or any lesser interest in the 

property, as may be appropriate for purposes of this section; 

and 

‘‘(B) the sharing by the United States and the entity of the 

acquisition costs. 

‘‘(2) Property or interests may not be acquired pursuant to the 

agreement unless the owner of the property or interests consents to 

the acquisition.

‘‘(3) The agreement shall require the entity to transfer to the 

United States, upon the request of the Secretary concerned, all or a 

portion of the property or interest acquired under the agreement or 

a lesser interest therein. The Secretary shall limit such transfer reVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00274 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
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quest to the minimum property or interests necessary to ensure that 

the property concerned is developed and used in a manner appropriate for purposes of this section. 

‘‘(4) The Secretary concerned may accept on behalf of the United 

States any property or interest to be transferred to the United States 

under the agreement. 

‘‘(5) For purposes of the acceptance of property or interests 

under the agreement, the Secretary concerned may accept an appraisal or title documents prepared or adopted by a non-Federal entity as satisfying the applicable requirements of section 301 of the 

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4651) or section 3111 of title 40, if the 

Secretary concerned finds that the appraisal or title documents substantially comply with the requirements. 

‘‘(e) ACQUISITION OF WATER RIGHTS.—The authority of the Secretary concerned to enter into an agreement under this section for 

the acquisition of real property (or an interest therein) includes the 

authority to support the purchase of water rights from any available 

source when necessary to support or protect the mission of a military installation. 

‘‘(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary concerned may require such additional terms and conditions in an 

agreement under this section as the Secretary considers appropriate 

to protect the interests of the United States. 

‘‘(g) FUNDING.—(1) Except as provided in paragraph (2), funds 

authorized to be appropriated for operation and maintenance of the 

Army, Navy, Marine Corps, Air Force, or Defense-wide activities 

may be used to enter into agreements under this section. 

‘‘(2) In the case of a military installation operated primarily 

with funds authorized to be appropriated for research, development, 

test, and evaluation, funds authorized to be appropriated for the 

Army, Navy, Marine Corps, Air Force, or Defense-wide activities for 

research, development, test, and evaluation may be used to enter 

into agreements under this section with respect to the installation. 

‘‘(h) DEFINITIONS.—In this section: 

‘‘(1) The term ‘Secretary concerned’ means the Secretary of 

Defense or the Secretary of a military department. 

‘‘(2) The term ‘State’ includes the District of Columbia, the 

Commonwealth of Puerto Rico, the Commonwealth of the 

Northern Marianas, and the territories and possessions of the 

United States.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating 

to section 2684 the following new item:

‘‘2684a. Agreements to limit encroachments and other constraints on military training, testing, and operations.’’.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL 

RESOURCE CONSERVATION PURPOSES. 

(a) CONVEYANCE AUTHORITY.—(1) Chapter 159 of title 10, 

United States Code, is amended by inserting after section 2694 the 

following new section: 

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‘‘§ 2694a. Conveyance of surplus real property for natural resource conservation 

‘‘(a) AUTHORITY TO CONVEY.—The Secretary of a military department may convey to an eligible entity described in subsection (b) 

any surplus real property that—

‘‘(1) is under the administrative control of the Secretary; 

‘‘(2) is suitable and desirable for conservation purposes; 

‘‘(3) has been made available for public benefit transfer for 

a sufficient period of time to potential claimants; and 

‘‘(4) is not subject to a pending request for transfer to another Federal agency or for conveyance to any other qualified 

recipient for public benefit transfer under the real property disposal processes and authorities under subtitle I of title 40. 

‘‘(b) ELIGIBLE ENTITIES.—The conveyance of surplus real property under this section may be made to any of the following: 

‘‘(1) A State or political subdivision of a State. 

‘‘(2) A nonprofit organization that exists for the primary 

purpose of conservation of natural resources on real property. 

‘‘(c) REVISIONARY INTEREST AND OTHER DEED REQUIREMENTS.—(1) The deed of conveyance of any surplus real property 

conveyed under this section shall require the property to be used 

and maintained for the conservation of natural resources in perpetuity. If the Secretary concerned determines at any time that the 

property is not being used or maintained for such purpose, then, at 

the option of the Secretary, all or any portion of the property shall 

revert to the United States. 

‘‘(2) The deed of conveyance may permit the recipient of the 

property—

‘‘(A) to convey the property to another eligible entity, subject 

to the approval of the Secretary concerned and subject to the 

same covenants and terms and conditions as provided in the 

deed from the United States; and 

‘‘(B) to conduct incidental revenue-producing activities on 

the property that are compatible with the use of the property for 

conservation purposes. 

‘‘(3) The deed of conveyance may contain such additional terms, 

reservations, restrictions, and conditions as the Secretary concerned 

considers appropriate to protect the interests of the United States. 

‘‘(d) RELEASE OF COVENANTS.—With the concurrence of the Secretary of Interior, the Secretary concerned may grant a release from 

a covenant included in the deed of conveyance of real property conveyed under this section, subject to the condition that the recipient 

of the property pay the fair market value, as determined by the Secretary concerned, of the property at the time of the release of the covenant. The Secretary concerned may reduce the amount required to 

be paid under this subsection to account for the value of the natural 

resource conservation benefit that has accrued to the United States 

during the period the covenant was in effect, if the benefit was not 

taken into account in determining the original consideration for the 

conveyance. 

‘‘(e) CONGRESSIONAL NOTIFICATION.—The Secretary concerned 

may not approve of the reconveyance of real property under subsection (c) or grant the release of a covenant under subsection (d) 

until the Secretary notifies the appropriate committees of Congress 

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of the proposed reconveyance or release and a period of 21 days 

elapses from the date the notification is received by the committees. 

‘‘(f) LIMITATIONS.—The conveyance of real property under this 

section shall not be used as a condition of allowing any defense activity under any Federal, State, or local permitting or review process. The Secretary concerned may make the conveyance, with the restrictions specified in subsection (c), to establish a mitigation bank, 

but only if the establishment of the mitigation bank does not occur 

in order to satisfy any condition for permitting military activity 

under a Federal, State, or local permitting or review process. 

‘‘(g) CONSIDERATION.—In fixing the consideration for the conveyance of real property under this section, or in determining the 

amount of any reduction of the amount to be paid for the release 

of a covenant under subsection (d), the Secretary concerned shall 

take into consideration any benefit that has accrued or may accrue 

to the United States from the use of such property for the conservation of natural resources. 

‘‘(h) RELATION TO OTHER CONVEYANCE AUTHORITIES.—(1) The 

Secretary concerned may not make a conveyance under this section 

of any real property to be disposed of under a base closure law in 

a manner that is inconsistent with the requirements and conditions 

of the base closure law. 

‘‘(2) In the case of real property on Guam, the Secretary concerned may not make a conveyance under this section unless the 

Government of Guam has been first afforded the opportunity to acquire the real property as authorized by section 1 of Public Law 

106–504 (114 Stat. 2309). 

‘‘(i) DEFINITIONS.—In this section: 

‘‘(1) The term ‘appropriate committees of Congress’ has the 

meaning given such term in section 2801 of this title. 

‘‘(2) The term ‘base closure law’ means the following: 

‘‘(A) Section 2687 of this title. 

‘‘(B) Title II of the Defense Authorization Amendments 

and Base Closure and Realignment Act of 1988 (10 U.S.C. 

2687 note). 

‘‘(C) The Defense Base Closure and Realignment Act of 

1990 (part A of title XXIX of Public Law 101–510; 10 

U.S.C. 2687 note). 

‘‘(D) Any other similar authority for the closure or realignment of military installations that is enacted after the 

date of the enactment of the Bob Stump National Defense 

Authorization Act for Fiscal Year 2003. 

‘‘(3) The term ‘Secretary concerned’ means the Secretary of 

a military department. 

‘‘(4) The term ‘State’ includes the District of Columbia, the 

Commonwealth of Puerto Rico, the Commonwealth of the 

Northern Marianas, and the territories and possessions of the 

United States.’’. 

(2) The table of sections at the beginning of such chapter is 

amended by inserting after the item relating to section 2694 the following new item:

‘‘2694a. Conveyance of surplus real property for natural resource conservation.’’.

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(b) ACCEPTANCE OF FUNDS TO COVER ADMINISTRATIVE EXPENSES.—Section 2695(b) of such title is amended by adding at the 

end the following new paragraph: 

‘‘(5) The conveyance of real property under section 2694a of 

this title.’’.

(c) AGREEMENTS WITH NONPROFIT NATURAL RESOURCE CONSERVATION ORGANIZATIONS.—Section 2701(d) of such title is amended—

(1) in the subsection heading, by striking ‘‘AGENCIES’’ and 

inserting ‘‘ENTITIES’’; 

(2) in paragraph (1)—

(A) by striking ‘‘with any State or local government 

agency, or with any Indian tribe,’’ and inserting ‘‘any State 

or local government agency, any Indian tribe, or any nonprofit conservation organization’’; and 

(B) by striking ‘‘the agency’’ and inserting ‘‘the agency, 

Indian tribe, or organization’’; and 

(3) by striking paragraph (4), as redesignated by section 

311(2) of this Act, and inserting the following new paragraph: 

‘‘(4) DEFINITIONS.—In this subsection: 

‘‘(A) The term ‘Indian tribe’ has the meaning given 

such term in section 101(36) of CERCLA (42 U.S.C. 

9601(36)). 

‘‘(B) The term ‘nonprofit conservation organization’

means any non-governmental nonprofit organization whose 

primary purpose is conservation of open space or natural 

resources.’’.

SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY MAINTENANCE COSTS. 

(a) ADMINISTRATOR OF PROGRAM.—Subsection (a) of section 

2814 of the Military Construction Authorization Act for Fiscal Year 

2002 (division B of Public Law 107–107; 115 Stat. 1310; 10 U.S.C. 

2809 note) is amended by striking ‘‘Secretary of the Army’’ and inserting ‘‘Secretary of Defense or the Secretary of a military department’’. 

(b) CONTRACTS.—Subsection (b) of such section is amended to 

read as follows: 

‘‘(b) CONTRACTS.—(1) Not more than 12 contracts per military 

department may contain requirements referred to in subsection (a) 

for the purpose of the demonstration program.

‘‘(2) The demonstration program may only cover contracts entered into on or after the date of the enactment of the Bob Stump 

National Defense Authorization Act for Fiscal Year 2003, except 

that the Secretary of the Army shall treat any contract containing 

requirements referred to in subsection (a) that was entered into 

under the authority in such subsection between that date and December 28, 2001, as a contract for the purpose of the demonstration 

program.’’. 

(c) REPORTING REQUIREMENTS.—Subsection (d) of such section 

is amended by striking ‘‘Secretary of the Army’’ and inserting 

‘‘Secretary of Defense’’. 

(d) FUNDING.—(1) Subsection (f) of such section is amended by 

striking ‘‘the Army’’ and inserting ‘‘the military departments or defense-wide’’. 

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(2) The amendment made by paragraph (1) shall not affect the 

availability for the purpose of the demonstration program under 

section 2814 of the Military Construction Authorization Act for Fiscal Year 2002, as amended by this section, of any amounts authorized to be appropriated before the date of the enactment of this Act 

for the Army for military construction that have been obligated for 

the demonstration program, but not expended, as of that date.

SEC. 2814. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY INSTALLATIONS TO BE CLOSED TO PERSONS WHO 

CONSTRUCT OR PROVIDE MILITARY FAMILY HOUSING. 

(a) 1988 LAW.—Section 204(e)(1) of the Defense Authorization 

Amendments and Base Closure and Realignment Act (Public Law 

100–526; 10 U.S.C. 2687 note) is amended by striking the last sentence. 

(b) 1990 LAW.—Section 2905(f)(1) of the Defense Base Closure 

and Realignment Act of 1990 (part A of title XXIX of Public Law 

101–510; 10 U.S.C. 2687 note) is amended by striking the last sentence. 

Subtitle C—Land Conveyances 

PART I—ARMY CONVEYANCES

SEC. 2821. TRANSFER OF JURISDICTION, FORT MCCLELLAN, ALABAMA, 

TO ESTABLISH MOUNTAIN LONGLEAF NATIONAL WILDLIFE REFUGE. 

(a) TRANSFER REQUIRED.—Not later than 180 days after the 

date of the enactment of this Act, the Secretary of the Army shall 

transfer, without reimbursement, to the administrative jurisdiction 

of the Secretary of the Interior a parcel of real property at Fort 

McClellan, Alabama, consisting of approximately 7,600 acres, which 

is described as the ‘‘acquisition area’’ in a memorandum of agreement between the Secretaries numbered 1448–40181–00–K–014. 

(b) ESTABLISHMENT AND MANAGEMENT OF REFUGE.—(1) The 

Secretary of the Interior shall establish on the real property transferred under subsection (a) the Mountain Longleaf National Wildlife 

Refuge to enhance, manage, and protect the unique mountain 

longleaf pine ecosystem on the property. 

(2) The Secretary of Interior shall manage the Mountain 

Longleaf National Wildlife Refuge in a manner that—

(A) conserves and enhances populations of fish, wildlife, 

and plants in the Refuge, including migratory birds and species 

that are threatened or endangered, with particular emphasis on 

the protection of the mountain longleaf pine plant ecosystem; 

(B) protects and enhances the quality of aquatic habitat in 

the Refuge; 

(C) provides, in coordination with the Alabama Department 

of Conservation and Natural Resources, the public with recreational opportunities, including hunting, fishing, wildlife observation, and photography; 

(D) provides opportunities for scientific research and education on land use and environmental law; and 

(E) is consistent with environmental restoration efforts conducted by the Secretary of the Army on the Refuge or on lands 

adjacent to the Refuge. 

256

(c) ENVIRONMENTAL RESTORATION.—(1) The Secretary of the 

Army shall continue to be responsible for unexploded ordnance, discarded military munitions, and munitions constituents on the real 

property transferred under subsection (a) and shall continue to follow a remediation process in accordance with the Comprehensive 

Environmental Response, Compensation, and Liability Act of 1980 

(42 U.S.C. 9601 et seq.). 

(2) The Secretary of the Army shall appropriately factor the 

management directives for the Mountain Longleaf National Wildlife 

Refuge, as described in subsection (b), into the remedy selection 

process for the property transferred under subsection (a). 

(d) RELATION TO OTHER ENVIRONMENTAL LAWS.—Nothing in 

this section shall relieve, and no action taken under this section 

may relieve, the Secretary of the Army or the Secretary of the Interior, or any other person from any liability or other obligation under 

the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, the Resource Conservation and Recovery Act of 

1976 (42 U.S.C. 6901 et seq.), or any other Federal or State law. 

(e) ASSISTANCE.—The Secretary of the Army may provide up to 

$500,000 from the funds in the Base Realignment and Closure Account 1990 to the Secretary of Interior to facilitate the establishment 

of the Mountain Longleaf National Wildlife Refuge and to support 

environmental research at the Refuge during the first two years of 

the operation of the Refuge.

SEC. 2822. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER REQUIRED FOR NATIONAL GUARD PURPOSES. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey to an eligible entity described in subsection (b) all right, title, 

and interest of the United States in and to any parcel of real property, including any improvements thereon, in the State of Alaska described in subsection (c) if the Secretary determines the conveyance 

would be in the public interest.

(b) ELIGIBLE RECIPIENTS.—The following entities shall be eligible to receive real property under subsection (a): 

(1) The State of Alaska. 

(2) A governmental entity in the State of Alaska. 

(3) A Native Corporation (as defined in section 3 of the 

Alaska Native Claims Settlement Act (43 U.S.C. 1602)). 

(4) The Metlakatla Indian Community. 

(c) COVERED PROPERTY.—Subsection (a) applies to real property 

located in the State of Alaska that—

(1) is under the jurisdiction of the Department of the Army 

and, before December 2, 1980, was under such jurisdiction for 

the use of the Alaska National Guard; 

(2) is located in a unit of the National Wildlife Refuge System designated in the Alaska National Interest Lands Conservation Act (Public Law 96–487; 16 U.S.C. 668dd note); 

(3) is excess to the needs of the Alaska National Guard and 

the Department of Defense; and 

(4) the Secretary determines that—

(A) the anticipated cost to the United States of retaining the property exceeds the value of such property; or 

(B) the condition of the property makes it unsuitable 

for retention by the United States. 

257

(d) CONSIDERATION.—The conveyance of real property under 

this section shall, at the election of the Secretary, be for no consideration or for consideration in an amount determined by the Secretary 

to be appropriate under the circumstances. 

(e) USE OF CONSIDERATION.—If consideration is received for the 

conveyance of real property under subsection (a), the Secretary may 

use the amounts received, in such amounts as are provided in appropriations Acts, to pay for— (1) the cost of a survey described in subsection (f) with respect to the property; 

(2) the cost of carrying out any environmental assessment, 

study, or analysis, and any remediation, that may be required 

under Federal law, or is considered appropriate by the Secretary, in connection with the property or the conveyance of the 

property; and 

(3) any other costs incurred by the Secretary in conveying 

the property. 

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal description of any real property to be conveyed under subsection (a) 

shall be determined by a survey satisfactory to the Secretary. 

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with a 

conveyance of real property under this section as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2823. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION 

PLANT, KANSAS. 

(a) CONVEYANCE AUTHORIZED.—The Administrator of General 

Services may convey to the Johnson County Park and Recreation 

District, Kansas (in this section referred to as the ‘‘District’’), all 

right, title, and interest of the United States in and to a parcel of 

real property, including any improvements thereon, at the Sunflower Army Ammunition Plant in the State of Kansas consisting of 

approximately 2,000 acres. 

(b) BASIS OF CONVEYANCE.—The conveyance under this section 

shall be made in a manner consistent with section 550(e) of title 40, 

United States Code, for the purpose of permitting the District to use 

the conveyed property for public recreational purposes. 

(c) DESCRIPTION OF PROPERTY.—The exact acreage, location, 

and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Administrator. The cost of such legal description, survey, or both shall 

be borne by the District. 

(d) ADDITIONAL TERMS AND CONDITIONS.—The Administrator 

may require such additional terms and conditions in connection 

with the conveyance under subsection (a) as the Administrator considers appropriate to protect the interests of the United States. 

(e) APPLICATION OF SECTION.—If the Administrator and the 

District reach an agreement regarding the conveyance of the property described in subsection (a) before January 31, 2003, the authority provided by this section shall not take effect.

SEC. 2824. LAND CONVEYANCES, BLUEGRASS ARMY DEPOT, RICHMOND, KENTUCKY. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey, without consideration, to Madison County, Kentucky (in this 

section referred to as the ‘‘County’’), all right, title, and interest of 

258

the United States in and to the following parcels of real property, 

including any improvements thereon, at the Bluegrass Army Depot, 

Richmond, Kentucky: 

(1) A parcel consisting of approximately 10 acres. 

(2) A parcel consisting of approximately 3 acres, including 

the building known as Quarters 29. 

(b) CONDITIONS OF CONVEYANCE.—(1) The Secretary may not 

convey the parcel of real property referred to in subsection (a)(1) unless the County agrees to use the property to facilitate the construction of a veterans’ center on the property by the State of Kentucky 

and the Secretary determines that the State has appropriated adequate funds for the construction of the veterans’ center. 

(2) The Secretary may not convey the parcel of real property referred to in subsection (a)(2) unless the County agrees to utilize the 

property for historical preservation and education purposes. 

(c) REVERSIONARY INTEREST.—(1) At the end of the seven-year 

period beginning on the date on which the Secretary makes the conveyance of the parcel of real property referred to in subsection (a)(1), 

if the Secretary determines that a veterans’ center is not in operation 

on the conveyed real property, then, at the option of the Secretary, 

all right, title, and interest in and to the property, including any 

improvements thereon, shall revert to the United States, and the 

United States shall have the right of immediate entry onto the property. 

(2) If the Secretary determines at any time that the parcel of 

real property referred to in subsection (a)(2) has ceased to be utilized 

for the purposes specified in subsection (b)(2), then, at the option of 

the Secretary, all right, title, and interest in and to the property 

shall revert to the United States, and the United States shall have 

the right of immediate entry onto the property. 

(3) Any determination of the Secretary under this subsection 

shall be made on the record after an opportunity for a hearing. 

(d) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the County to reimburse the Secretary for the 

costs incurred by the Secretary to carry out the conveyances under 

subsection (a), including survey costs, costs related to environmental 

documentation (other than the environmental baseline survey), and 

other administrative costs related to the conveyance. 

(2) The Secretary shall require the County to reimburse the Secretary for any excess costs incurred by the Secretary for any environmental assessment, study, or analysis, or for any other excess costs 

incurred by the Secretary, in connection with the conveyances, if the 

excess costs were incurred as a result of a request by the County. 

In this paragraph, the term ‘‘excess costs’’ means costs in excess of 

those costs considered reasonable and necessary by the Secretary to 

comply with existing law to make the conveyances. 

(3) Any reimbursement received under this subsection shall be 

credited to the fund or account that was used to cover the costs incurred by the Secretary in carrying out the conveyances. Amounts 

so credited shall be merged with amounts in such fund or account, 

and shall be available for the same purposes, and subject to the 

same conditions and limitations, as amounts in such fund or account. 

(e) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the real property to be conveyed under subsection (a) 

259

shall be determined by a survey satisfactory to the Secretary. The 

cost of the survey shall be borne by the County. 

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyances under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2825. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey, without consideration, to the City of Hopkinsville, Kentucky 

(in this section referred to as the ‘‘City’’), all right, title, and interest 

of the United States in and to a parcel of real property at Fort 

Campbell, Kentucky, consisting of approximately 50 acres and containing an abandoned railroad spur for the purpose of permitting 

the City to use the property for storm water management, recreation, 

transportation, and other public purposes. 

(b) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the City to reimburse the Secretary for the costs 

incurred by the Secretary to carry out the conveyance under subsection (a), including survey costs, costs related to environmental 

documentation (other than the environmental baseline survey), and 

other administrative costs related to the conveyance. 

(2) The Secretary shall require the City to reimburse the Secretary for any excess costs incurred by the Secretary for any environmental assessment, study, or analysis, or for any other excess costs 

incurred by the Secretary, in connection with the conveyance, if the 

excess costs were incurred as a result of a request by the City. In 

this paragraph, the term ‘‘excess costs’’ means costs in excess of those 

costs considered reasonable and necessary by the Secretary to comply with existing law to make the conveyance. 

(3) Any reimbursement received under this subsection shall be 

credited to the fund or account that was used to cover the costs incurred by the Secretary in carrying out the conveyance. Amounts so 

credited shall be merged with amounts in such fund or account, 

and shall be available for the same purposes, and subject to the 

same conditions and limitations, as amounts in such fund or account. 

(c) DESCRIPTION OF PROPERTY.—The acreage of the real property to be conveyed under subsection (a) has been determined by the 

Secretary through a legal description outlining such acreage. No 

further survey of the property is required before the conveyance is 

made. 

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2826. LAND CONVEYANCE, ARMY RESERVE TRAINING CENTER, 

BUFFALO, MINNESOTA. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey, without consideration, to the Buffalo Independent School 

District 877 of Buffalo, Minnesota (in this section referred to as the 

‘‘School District’’), all right, title, and interest of the United States 

in and to a parcel of real property, including improvements thereon, 

that is located at 800 8th Street, N.E., in Buffalo, Minnesota, and 

contains a former Army Reserve Training Center, which is being 

260

used by the School District as the site of the Phoenix Learning Center. 

(b) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the School District to reimburse the Secretary for 

the costs incurred by the Secretary to carry out the conveyance 

under subsection (a), including survey costs, costs related to environmental documentation (other than the environmental baseline 

survey), and other administrative costs related to the conveyance. 

(2) The Secretary shall require the School District to reimburse 

the Secretary for any excess costs incurred by the Secretary for any 

environmental assessment, study, or analysis, or for any other excess costs incurred by the Secretary, in connection with the conveyance, if the excess costs were incurred as a result of a request by the 

School District. In this paragraph, the term ‘‘excess costs’’ means 

costs in excess of those costs considered reasonable and necessary by 

the Secretary to comply with existing law to make the conveyance. 

(3) Any reimbursement received under this subsection shall be 

credited to the fund or account that was used to cover the costs incurred by the Secretary in carrying out the conveyance. Amounts so 

credited shall be merged with amounts in such fund or account, 

and shall be available for the same purposes, and subject to the 

same conditions and limitations, as amounts in such fund or account. 

(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the real property to be conveyed under subsection (a) 

shall be determined by a survey satisfactory to the Secretary. The 

cost of the survey shall be borne by the School District. 

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2827. LAND CONVEYANCE, FORT MONMOUTH, NEW JERSEY. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey by sale all right, title, and interest of the United States in 

and to a parcel of real property, consisting of approximately 63.95 

acres of military family housing known as Howard Commons, that 

comprises a portion of Fort Monmouth, New Jersey. 

(b) COMPETITIVE BID REQUIREMENT.—The Secretary shall use 

competitive procedures for the sale authorized by subsection (a). 

(c) CONSIDERATION.—(1) As consideration for the conveyance 

authorized by subsection (a), the recipient shall provide the United 

States, whether by cash payment, in-kind contribution, or a combination thereof, an amount that is not less than the fair market 

value, as determined by the Secretary, of the property conveyed 

under such subsection. 

(2) In-kind consideration under paragraph (1) may include the 

construction of replacement military family housing or the rehabilitation of existing military family housing at Fort Monmouth, New 

Jersey, as agreed upon by the Secretary. 

(3) If the value of in-kind consideration to be provided under 

this subsection exceeds $1,500,000, the Secretary may not accept 

such consideration until after the end of the 21-day period beginning on the date the Secretary notifies the congressional defense 

committees of the decision of the Secretary to accept in-kind consideration in excess of that amount. 

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(4) Any proceeds received by the Secretary under this subsection 

and not used to construct or rehabilitate such military family housing shall be deposited in the special account in the Treasury established pursuant to section 572(b) of title 40, United States Code. 

(d) EFFECT OF TRANSFER OF ADMINISTRATIVE JURISDICTION.— If the real property authorized to be conveyed by this section is 

transferred to the administrative jurisdiction of the Administrator 

of General Services, the Administrator, rather than the Secretary, 

shall have the authority to convey such property under this section. 

(e) DESCRIPTION OF PARCEL.—The exact acreage and legal description of the parcel to be conveyed under subsection (a) shall be 

determined by a survey that is satisfactory to the Secretary. The cost 

of the survey shall be borne by the recipient of the parcel. 

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2828. LAND CONVEYANCE, FORT BLISS, TEXAS. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey, without consideration, to the County of El Paso, Texas (in 

this section referred to as the ‘‘County’’), all right, title, and interest 

of the United States in and to a parcel of real property, including 

improvements thereon, consisting of approximately 44 acres at Fort 

Bliss, Texas, for the purpose of facilitating the construction by the 

State of Texas of a nursing home for veterans of the Armed Forces. 

(b) REVERSIONARY INTEREST.—(1) At the end of the seven-year 

period beginning on the date on which the Secretary makes the conveyance under subsection (a), if the Secretary determines that a 

nursing home for veterans is not in operation on the conveyed real 

property, then, at the option of the Secretary— (A) all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United 

States; and 

(B) the United States shall have the right of immediate 

entry onto the property. 

(2) Any determination of the Secretary under this subsection 

shall be made on the record after an opportunity for a hearing. 

(c) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the County to reimburse the Secretary for the 

costs incurred by the Secretary to carry out the conveyance under 

subsection (a), including survey costs, costs related to environmental 

documentation (other than the environmental baseline survey), and 

other administrative costs related to the conveyance. 

(2) The Secretary shall require the County to reimburse the Secretary for any excess costs incurred by the Secretary for any environmental assessment, study, or analysis, or for any other excess costs 

incurred by the Secretary, in connection with the conveyance, if the 

excess costs were incurred as a result of a request by the County. 

In this paragraph, the term ‘‘excess costs’’ means costs in excess of 

those costs considered reasonable and necessary by the Secretary to 

comply with existing law to make the conveyance. 

(3) Any reimbursement received under this subsection shall be 

credited to the fund or account that was used to cover the costs incurred by the Secretary in carrying out the conveyance. Amounts so 

credited shall be merged with amounts in such fund or account, 

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and shall be available for the same purposes, and subject to the 

same conditions and limitations, as amounts in such fund or account. 

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the real property to be conveyed under subsection (a) 

shall be determined by a survey satisfactory to the Secretary. The 

cost of the survey shall be borne by the County. 

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may 

convey, without consideration, to the Veterans Land Board of the 

State of Texas (in this section referred to as the ‘‘Board’’) all right, 

title, and interest of the United States in and to a parcel of real 

property, including any improvements thereon, consisting of approximately 174 acres at Fort Hood, Texas, for the purpose of permitting the Board to establish a State-run cemetery for veterans of 

the Armed Forces. 

(b) REVERSIONARY INTEREST.—(1) At the end of the seven-year 

period beginning on the date on which the Secretary makes the conveyance under subsection (a), if the Secretary determines that a cemetery for veterans is not in operation on the conveyed real property, 

then, at the option of the Secretary— (A) all right, title, and interest in and to the property, including any improvements thereon, shall revert to the United 

States; and 

(B) the United States shall have the right of immediate 

entry onto the property. 

(2) Any determination of the Secretary under this subsection 

shall be made on the record after an opportunity for a hearing. 

(c) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the Board to reimburse the Secretary for the 

costs incurred by the Secretary to carry out the conveyance under 

subsection (a), including survey costs, costs related to environmental 

documentation (other than the environmental baseline survey), and 

other administrative costs related to the conveyance. 

(2) The Secretary shall require the Board to reimburse the Secretary for any excess costs incurred by the Secretary for any environmental assessment, study, or analysis, or for any other excess costs 

incurred by the Secretary, in connection with the conveyance, if the 

excess costs were incurred as a result of a request by the Board. In 

this paragraph, the term ‘‘excess costs’’ means costs in excess of those 

costs considered reasonable and necessary by the Secretary to comply with existing law to make the conveyance. 

(3) Any reimbursement received under this subsection shall be 

credited to the fund or account that was used to cover the costs incurred by the Secretary in carrying out the conveyance. Amounts so 

credited shall be merged with amounts in such fund or account, 

and shall be available for the same purposes, and subject to the 

same conditions and limitations, as amounts in such fund or account. 

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the real property to be conveyed under subsection (a) 

263

shall be determined by a survey satisfactory to the Secretary. The 

cost of the survey shall be borne by the Board. 

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT 

BELVOIR, VIRGINIA. 

(a) CONVEYANCE TO FAIRFAX COUNTY, VIRGINIA, AUTHORIZED.— (1) The Secretary of the Army may convey, without consideration, to 

Fairfax County, Virginia, all right, title, and interest of the United 

States in and to a parcel of real property, including any improvements thereon, consisting of approximately 135 acres, located in the 

northwest portion of the Engineer Proving Ground at Fort Belvoir, 

Virginia, in order to permit the County to use such property for park 

and recreational purposes. 

(2) The parcel of real property authorized to be conveyed by 

paragraph (1) is generally described as that portion of the Engineer 

Proving Ground located west of Accotink Creek, east of the Fairfax 

County Parkway, and north of Cissna Road to the northern boundary, but excludes a parcel of land consisting of approximately 15 

acres located in the southeast corner of such portion of the Engineer 

Proving Ground. 

(3) The land excluded under paragraph (2) from the parcel of 

real property authorized to be conveyed by paragraph (1) shall be 

reserved for an access road to be constructed in the future. 

(b) CONVEYANCE OF BALANCE OF PROPERTY AUTHORIZED.—The 

Secretary may convey to any competitively selected grantee all right, 

title, and interest of the United States in and to the real property, 

including any improvements thereon, at the Engineering Proving 

Ground not conveyed under the authority in subsection (a). 

(c) CONSIDERATION.—(1) As consideration for the conveyance 

authorized by subsection (b), the grantee shall provide the United 

States, whether by cash payment, in-kind contribution, or a combination thereof, an amount that is not less than the fair market 

value, as determined by the Secretary, of the property conveyed 

under such subsection. 

(2) In-kind consideration under paragraph (1) may include the 

maintenance, improvement, alteration, repair, remodeling, restoration (including environmental restoration), or construction of facilities for the Department of the Army at Fort Belvoir or at any other 

site or sites designated by the Secretary. 

(3) If in-kind consideration under paragraph (1) includes the 

construction of facilities, the grantee shall also convey to the United 

States—

(A) title to such facilities, free of all liens and other encumbrances; and 

(B) if the United States does not have fee simple title to the 

land underlying such facilities, convey to the United States all 

right, title, and interest in and to such lands not held by the 

United States. 

(4) If the value of in-kind consideration to be provided under 

paragraph (1) exceeds $1,500,000, the Secretary may not accept such 

consideration until after the end of the 21-day period beginning on 

the date the Secretary notifies the congressional defense committees 

264

of the decision of the Secretary to accept in-kind consideration in excess of that amount. 

(5) The Secretary shall deposit any cash received as consideration under this subsection in the special account established pursuant to section 572(b) of title 40, United States Code. 

(d) EFFECT OF TRANSFER OF ADMINISTRATIVE JURISDICTION.— If all or a portion of the real property authorized to be conveyed by 

this section is transferred to the administrative jurisdiction of the 

Administrator of General Services, the Administrator, rather than 

the Secretary of the Army, shall have the authority to convey such 

property under this section. 

(e) REPEAL OF SUPERSEDED AUTHORITY.—Section 2821 of the 

Military Construction Authorization Act for Fiscal Years 1990 and 

1991 (division B of Public Law 101–189; 103 Stat. 1658), as amended by section 2854 of the Military Construction Authorization Act 

for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 

568), is repealed. 

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal description of the real property to be conveyed under subsections (a) 

and (b) shall be determined by surveys satisfactory to the Secretary. 

The cost of each such survey shall be borne by the grantee. 

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyances under subsections (a) and (b) as the Secretary considers 

appropriate to protect the interests of the United States. 

PART II—NAVY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, MARINE CORPS AIR STATION, 

MIRAMAR, SAN DIEGO, CALIFORNIA. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may 

convey to the ENPEX Corporation, Incorporated (in this section referred to as the ‘‘Corporation’’), all right, title, and interest of the 

United States in and to a parcel of real property, including any improvements thereon, at Marine Corps Air Station, Miramar, San 

Diego, California, consisting of approximately 60 acres and appurtenant easements and any other necessary interests in real property 

for the purpose of permitting the Corporation to use the property for 

the production of electric power and related ancillary activities. 

(b) CONSIDERATION.—(1) As consideration for the conveyance 

under subsection (a), the Corporation shall—

(A) convey to the United States all right, title, and interest 

of the Corporation in and to a parcel of real property in the San 

Diego area that is suitable for military family housing, as determined by the Secretary; and 

(B) if the parcel conveyed under subparagraph (A) does not 

contain housing units suitable for use as military family housing, design and construct such military family housing units 

and supporting facilities as the Secretary considers appropriate. 

(2) The total combined value of the real property and military 

family housing conveyed by the Corporation under this subsection 

shall be at least equal to the fair market value of the real property 

conveyed to the Secretary under subsection (a), including any severance costs arising from any diminution of the value or utility of 

other property at Marine Corps Air Station, Miramar, attributable 

265

to the prospective future use of the property conveyed under subsection (a). 

(3) The Secretary shall determine the fair market value of the 

real property to be conveyed under subsection (a) and the fair market value of the consideration to be provided under this subsection. 

Such determinations shall be final.

(c) REVERSIONARY INTEREST.—(1) Subject to paragraph (2), if 

the Secretary determines at any time that the property conveyed 

under subsection (a) is not being used in accordance with the purpose of the conveyance specified in such subsection, all right, title, 

and interest in and to the property, including any improvements 

thereon, shall revert, at the option of the Secretary, to the United 

States, and the United States shall have the right of immediate 

entry onto the property. Any determination of the Secretary under 

this subsection shall be made on the record after an opportunity for 

a hearing. 

(2) If Marine Corps Air Station, Miramar, is no longer used as 

a Federal aviation facility, paragraph (1) shall no longer apply, and 

the Secretary shall release, without consideration, the reversionary 

interest retained by the United States under such paragraph. 

(d) ADMINISTRATIVE EXPENSES.—(1) The Corporation shall 

make funds available to the Secretary to cover costs to be incurred 

by the Secretary, or reimburse the Secretary for costs incurred, to 

carry out the conveyance under subsection (a), including survey 

costs, costs related to environmental documentation, and other administrative costs related to the conveyance. This paragraph does 

not apply to costs associated with the removal of explosive ordnance 

from the parcel and environmental remediation of the parcel. 

(2) Section 2695(c) of title 10 United States Code, shall apply 

to any amount received under paragraph (1). If the amounts received in advance under such paragraph exceed the costs actually 

incurred by the Secretary, the Secretary shall refund the excess 

amount to the Corporation. 

(e) DESCRIPTIONS OF PROPERTY.—The exact acreage and legal 

descriptions of the real property to be conveyed by the Secretary 

under subsection (a) and the property to be conveyed by the Corporation under subsection (b) shall be determined by a survey satisfactory to the Secretary. 

(f) EXEMPTIONS.—Section 2696 of title 10, United States Code, 

does not apply to the conveyance authorized by subsection (a), and 

the authority to make the conveyance shall not be considered to 

render the property excess or underutilized. 

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyances authorized by this section as the Secretary considers 

appropriate to protect the interests of the United States.

SEC. 2832. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND 

CONVEYANCE, NAVAL SECURITY GROUP ACTIVITY, WINTER HARBOR, MAINE. 

(a) MODIFICATION OF CONVEYANCE AUTHORITY FOR COREA AND

WINTER HARBOR PROPERTIES.—Subsection (b) of section 2845 of the 

Military Construction Authorization Act for Fiscal Year 2002 

(division B of Public Law 107–107; 115 Stat. 1319) is amended to 

read as follows: 

266

‘‘(b) CONVEYANCE AND TRANSFER OF COREA AND WINTER HAR- BOR PROPERTIES AUTHORIZED.—(1) The Secretary of the Navy may 

convey, without consideration, to the State of Maine, any political 

subdivision of the State of Maine, or any tax-supported agency in 

the State of Maine, all right, title, and interest of the United States 

in and to parcels of real property, including any improvements 

thereon and appurtenances thereto, comprising the former facilities 

of the Naval Security Group Activity, Winter Harbor, Maine, as follows: ‘‘(A) The parcel consisting of approximately 50 acres known 

as the Corea Operations Site. ‘‘(B) Three parcels consisting of approximately 23 acres and 

comprising family housing facilities. 

‘‘(2) The Secretary of the Navy may transfer to the administrative jurisdiction of the Secretary of the Interior a parcel of real property consisting of approximately 404 acres at the former Naval Security Group Activity, which is the balance of the real property comprising the Corea Operations Site. The Secretary of the Interior 

shall administer the property transferred under this paragraph as 

part of the National Wildlife Refuge System.’’. (b) EXEMPTION OF MODIFIED CONVEYANCES FROM FEDERAL

SCREENING REQUIREMENT.—Such section is further amended—

(1) by redesignating subsections (g) and (h) as subsections 

(h) and (i), respectively; and 

(2) by inserting after subsection (f) the following new subsection (g): 

‘‘(g) EXEMPTION FROM FEDERAL SCREENING.—Any conveyance 

authorized by subsection (b)(1) is exempt from the requirement to 

screen the property concerned for further Federal use pursuant to 

section 2696 of title 10, United States Code.’’. 

(c) CONFORMING AMENDMENTS.—Subsections (c), (d), (e), (f), (h) 

(as redesignated), and (i) (as redesignated) of such section are 

amended by striking ‘‘subsection (b)’’ each place it appears and inserting ‘‘subsection (b)(1)’’.

SEC. 2833. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, MASSACHUSETTS. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may 

convey, without consideration, to the City of Chicopee, Massachusetts (in this section referred to as the ‘‘City’’), all right, title, and 

interest of the United States in and to a parcel of real property, including 133 housing units and other improvements thereon, consisting of approximately 30.38 acres located at Westover Air Reserve 

Base in Chicopee, Massachusetts, for the purpose of permitting the 

City to use the property for economic development and other public 

purposes. 

(b) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the City to reimburse the Secretary for the costs 

incurred by the Secretary to carry out the conveyance under subsection (a), including survey costs, costs related to environmental 

documentation (other than the environmental baseline survey), and 

other administrative costs related to the conveyance. 

(2) The Secretary shall require the City to reimburse the Secretary for any excess costs incurred by the Secretary for any environmental assessment, study, or analysis, or for any other excess costs 

incurred by the Secretary, in connection with the conveyance, if the 

267

excess costs were incurred as a result of a request by the City. In 

this paragraph, the term ‘‘excess costs’’ means costs in excess of those 

costs considered reasonable and necessary by the Secretary to comply with existing law to make the conveyance. 

(3) Any reimbursement received under this subsection shall be 

credited to the fund or account that was used to cover the costs incurred by the Secretary in carrying out the conveyance. Amounts so 

credited shall be merged with amounts in such fund or account, 

and shall be available for the same purposes, and subject to the 

same conditions and limitations, as amounts in such fund or account. 

(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the real property to be conveyed under subsection (a) 

shall be determined by a survey satisfactory to the Secretary. 

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2834. LAND CONVEYANCE, NAVAL STATION, NEWPORT, RHODE ISLAND. 

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may 

convey to the State of Rhode Island, or any political subdivision 

thereof, any or all right, title, and interest of the United States in 

and to a parcel of real property, together with improvements thereon, consisting of approximately 34 acres located in Melville, Rhode 

Island, and known as the Melville Marina site. 

(b) CONSIDERATION.—(1) As consideration for the conveyance of 

real property under subsection (a), the conveyee shall pay the United 

States an amount equal to the fair market value of the real property, as determined by the Secretary based on an appraisal of the 

real property acceptable to the Secretary.

(2) The consideration received under paragraph (1) shall be deposited in the account established pursuant to section 572(b) of title 

40, United States Code, and shall be available as provided for in 

that section. 

(c) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The Secretary may require the conveyee of the real property under subsection (a) to reimburse the Secretary for any costs incurred by the 

Secretary in carrying out the conveyance. 

(2) Any reimbursement for costs that is received under paragraph (1) shall be credited to the fund or account providing funds 

for such costs. Amounts so credited shall be merged with amounts 

in such fund or account, and shall be available for the same purposes, and subject to the same conditions and limitations, as 

amounts in such fund or account. 

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the real property to be conveyed under subsection (a) 

shall be determined by a survey satisfactory to the Secretary. 

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

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SEC. 2835. LAND EXCHANGE AND BOUNDARY ADJUSTMENTS, MARINE 

CORPS BASE, QUANTICO, AND PRINCE WILLIAM FOREST 

PARK, VIRGINIA. 

(a) LAND EXCHANGE.—Administrative jurisdiction over certain 

lands at Prince William Forest Park, Virginia, and at the Marine 

Corps Base, Quantico, Virginia, shall be adjusted through the following actions: 

(1) The Secretary of the Navy shall transfer, without reimbursement, to the administrative jurisdiction of the Secretary of 

the Interior approximately 352 acres of land, depicted as 

‘‘Lands Transferred from Department of the Navy to Department of the Interior’’ on the map entitled ‘‘Boundary Adjustments Between Prince William Forest Park and Marine Corps 

Base, Quantico’’, numbered 860/80283, and dated May 1, 2002. 

(2) The Secretary of the Interior shall transfer, without reimbursement, to the administrative jurisdiction of the Secretary 

of the Navy approximately 3,398 acres of land, depicted as 

‘‘Lands Transferred from Department of the Interior to Department of the Navy’’ on the map described in paragraph (1). 

(b) RETENTION OF CERTAIN LAND.—The Secretary of the Interior shall continue to administer approximately 1,346 acres of land, 

depicted as ‘‘Lands Retained by Department of the Interior’’ on the 

map described in subsection (a)(1). Effective on the date of the enactment of this Act, the special use permit dated March 16, 1972, 

which provides for the use of part of this land by the Marine Corps, 

shall no longer be in effect. 

(c) SUBSEQUENT DISPOSAL OF LAND.—(1) If any of the land described in subsection (a)(1) or (b) is determined to be excess to the 

needs of the Department of the Interior, the Secretary of the Interior 

shall offer to transfer, without reimbursement, administrative jurisdiction over the land to the Secretary of the Navy. 

(2) If any of the land described in subsection (a)(2) is determined to be excess to the needs of the Department of the Navy, the 

Secretary of the Navy shall offer to transfer, without reimbursement, 

administrative jurisdiction over the land to the Secretary of the Interior. 

(3) If an offer made under this subsection is not accepted within 

90 days, the land covered by the offer may be disposed of in accordance with the laws and regulations governing the disposal of excess 

property. 

(d) BOUNDARY MODIFICATION AND ADMINISTRATION.—(1) The 

boundaries of Prince William Forest Park and the Marine Corps 

Base, Quantico, shall be modified to reflect the land exchanges or 

disposals made under this section. 

(2) Land transferred to the Secretary of the Interior under subsection (a)(1) or retained under subsection (b) shall be administered 

as part of Prince William Forest Park in accordance with applicable 

laws and regulations. 

(e) AVAILABILITY OF MAP.—The map described in subsection 

(a)(1) shall be on file and available for public inspection in the appropriate offices of the National Park Service, Department of the Interior. 

(f) CONFORMING AMENDMENTS.—The Act of June 22, 1948 

(Chapter 596; 62 Stat. 571), is amended—

(1) by striking the first section and inserting the following 

new section: 

269

‘‘SECTION 1. PRINCE WILLIAM FOREST PARK, VIRGINIA. 

‘‘Chopawamsic Park, which was established in 1933 as 

Chopawamsic Recreational Demonstration Area, shall be known as 

‘Prince William Forest Park’.’’; 

(2) in section 2—

(A) by striking ‘‘That all’’ and inserting ‘‘All’’; and 

(B) by striking ‘‘the Chopawamsic Park’’ and inserting 

‘‘Prince William Forest Park’’; and 

(3) in section 3—

(A) by striking ‘‘That the Secretary of the Interior and 

the Secretary of the Navy be, and they are hereby’’ and inserting ‘‘The Secretary of the Interior is’’; and 

(B) by striking ‘‘the Chopawamsic Park’’ both places it 

appears and inserting ‘‘Prince William Forest Park’’. 

PART III—AIR FORCE CONVEYANCES

SEC. 2841. MODIFICATION OF LAND CONVEYANCE, LOS ANGELES AIR 

FORCE BASE, CALIFORNIA. 

Section 2861(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–433) is amended in the first sentence 

by striking ‘‘10 years’’ and inserting ‘‘30 years’’.

SEC. 2842. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO. 

(a) EXCHANGE AUTHORIZED.—For the purpose of facilitating the 

acquisition of real property suitable for the construction of military 

family housing for Buckley Air Force Base, Colorado, the Secretary 

of the Air Force may convey to the State of Colorado (in this section 

referred to as the ‘‘State’’) all right, title, and interest of the United 

States in and to a parcel of real property, including improvements 

thereon, consisting of all or part of the Watkins Communications 

Site in Arapahoe County, Colorado. 

(b) CONSIDERATION.—(1) As consideration for the conveyance 

authorized by subsection (a) the State shall convey to the United 

States all right, title, and interest of the State in and to a parcel 

of real property, including improvements thereon, consisting of approximately 41 acres that is owned by the State and is contiguous 

to Buckley Air Force Base, Colorado. 

(2) The Secretary shall have jurisdiction over the real property 

conveyed under paragraph (1). 

(3) Upon conveyance to the United States under paragraph (1), 

the real property conveyed under that paragraph is withdrawn from 

all forms of appropriation under the general land laws, including 

the mining laws and mineral and geothermal leasing laws. 

(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the parcels of real property to be conveyed under this 

section shall be determined by surveys satisfactory to the Secretary. 

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyances under this section as the Secretary considers appropriate to protect the interests of the United States.

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SEC. 2843. LAND CONVEYANCES, WENDOVER AIR FORCE BASE AUXILIARY FIELD, NEVADA. 

(a) CONVEYANCES AUTHORIZED TO WEST WENDOVER, NEVADA.—(1) The Secretary of the Interior may convey, without consideration, to the City of West Wendover, Nevada, all right, title, and 

interest of the United States in and to the following:

(A) The lands at Wendover Air Force Base Auxiliary Field, 

Nevada, identified in Easement No. AFMC–HL–2–00–334 that 

are determined by the Secretary of the Air Force to be no longer 

required. 

(B) The lands at Wendover Air Force Base Auxiliary Field 

identified for disposition on the map entitled ‘‘West Wendover, 

Nevada–Excess’’, dated January 5, 2001, that are determined by 

the Secretary of the Air Force to be no longer required. 

(2) The purposes of the conveyances under this subsection are—

(A) to permit the establishment and maintenance of runway 

protection zones; and 

(B) to provide for the development of an industrial park 

and related infrastructure. 

(3) The map referred to in paragraph (1)(B) shall be on file and 

available for public inspection in the offices of the Director of the 

Bureau of Land Management and the Elko District Office of the Bureau of Land Management. 

(b) CONVEYANCE AUTHORIZED TO TOOELE COUNTY, UTAH.—(1) 

The Secretary of the Interior may convey, without consideration, to 

Tooele County, Utah, all right, title, and interest of the United 

States in and to the lands at Wendover Air Force Base Auxiliary 

Field identified in Easement No. AFMC–HL–2–00–318 that are determined by the Secretary of the Air Force to be no longer required. 

(2) The purpose of the conveyance under this subsection is to 

permit the establishment and maintenance of runway protection 

zones and an aircraft accident potential protection zone as necessitated by continued military aircraft operations at the Utah Test 

and Training Range. 

(c) PHASED CONVEYANCES.—The land conveyances authorized 

by subsections (a) and (b) may be conducted in phases. To the extent 

practicable, the first phase of the conveyances should involve at 

least 3,000 acres. 

(d) MANAGEMENT OF CONVEYED LANDS.—The lands conveyed 

under subsections (a) and (b) shall be managed by the City of West 

Wendover, Nevada, City of Wendover, Utah, Tooele County, Utah, 

and Elko County, Nevada—

(1) in accordance with the provisions of an Interlocal 

Memorandum of Agreement entered into between the Cities of 

West Wendover, Nevada, and Wendover, Utah, Tooele County, 

Utah, and Elko County, Nevada, providing for the coordinated 

management and development of the lands for the economic 

benefit of both communities; and 

(2) in a manner that is consistent with such provisions of 

the easements referred to subsections (a) and (b) that, as jointly 

determined by the Secretary of the Air Force and Secretary of 

the Interior, remain applicable and relevant to the operation 

and management of the lands following conveyance and are 

consistent with the provisions of this section. 

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(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the 

Air Force and the Secretary of the Interior may jointly require such 

additional terms and conditions in connection with the conveyances 

authorized by subsections (a) and (b) as the Secretaries consider appropriate to protect the interests of the United States. 

Subtitle D—Other Matters

SEC. 2851. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, VIRGINIA. 

(a) MODIFICATION OF AUTHORITY FOR TRANSFER FROM NAVY

ANNEX.—Section 2881 of the Military Construction Authorization 

Act for Fiscal Year 2000 (113 Stat. 879) is amended— (1) in subsection (b)(2), as amended by section 2863(f) of the 

Military Construction Authorization Act for Fiscal Year 2002 

(division B of Public Law 107–107; 115 Stat. 1332), by striking ‘‘as a site for—’’ and all that follows and inserting ‘‘as a site 

for such other memorials or museums that the Secretary considers compatible with Arlington National Cemetery and the 

Air Force Memorial.’’; and 

(2) in subsection (d)— (A) in paragraph (2), by striking ‘‘the recommendation 

(if any) of the Commission on the National Military Museum to use a portion of the Navy Annex property as the 

site for the National Military Museum’’ and inserting ‘‘the 

use of the acres reserved under subsection (b)(2) for a memorial or museum’’; and 

(B) in paragraph (4), by striking ‘‘the date on which the 

Commission on the National Military Museum submits to 

Congress its report under section 2903’’ and inserting ‘‘the 

date of the enactment of the Bob Stump National Defense 

Authorization Act for Fiscal Year 2003’’. (b) CONSTRUCTION OF AMENDMENTS.—The amendments made 

by subsection (a) may not be construed to delay the establishment 

of the United States Air Force Memorial authorized by section 2863 

of the Military Construction Authorization Act for Fiscal Year 2002 

(division B of Public Law 107–107; 115 Stat. 1330).

SEC. 2852. SALE OF EXCESS TREATED WATER AND WASTEWATER 

TREATMENT CAPACITY, MARINE CORPS BASE, CAMP 

LEJEUNE, NORTH CAROLINA. 

(a) SALE AUTHORIZED.—The Secretary of the Navy may provide 

to Onslow County, North Carolina, or any authority or political 

subdivision organized under the laws of North Carolina to provide 

public water or sewage services in Onslow County (in this section 

referred to as the ‘‘County’’), treated water and wastewater treatment services from facilities at Marine Corps Base, Camp Lejeune, 

North Carolina, if the Secretary determines that the provision of 

these utility services is in the public interest and will not interfere 

with current or future operations at Camp Lejeune. 

(b) INAPPLICABILITY OF CERTAIN REQUIREMENTS.—Section 2686 

of title 10, United States Code, shall not apply to the provision of 

public water or sewage services authorized by subsection (a). 

(c) CONSIDERATION.—As consideration for the receipt of public 

water or sewage services under subsection (a), the County shall pay 

to the Secretary an amount (in cash or in kind) equal to the fair 

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market value of the services. Amounts received in cash shall be credited to the base operation and maintenance accounts of Camp 

Lejeune. 

(d) EXPANSION.—The Secretary may make minor expansions 

and extensions and permit connections to the public water or sewage 

systems of the County in order to furnish the services authorized 

under subsection (a). The Secretary shall restrict the provision of 

services to the County to those areas in the County where residential 

development would be compatible with current and future operations at Camp Lejeune. 

(e) ADMINISTRATIVE EXPENSES.—(1) The Secretary may require 

the County to reimburse the Secretary for the costs incurred by the 

Secretary to provide public water or sewage services to the County 

under subsection (a). 

(2) Section 2695(c) of title 10 United States Code, shall apply 

to any amount received under this subsection. 

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

provision of public water or sewage services under this section as 

the Secretary considers appropriate to protect the interests of the 

United States.

SEC. 2853. CONVEYANCE OF REAL PROPERTY, ADAK NAVAL COMPLEX, 

ALASKA, AND RELATED LAND CONVEYANCES. 

Section 6 of the Act entitled ‘‘An Act to ratify an agreement between The Aleut Corporation and the United States of America to 

exchange land rights received under the Alaska Native Claims Settlement Act for certain land interests on Adak Island, and for other 

purposes.’’, approved October 11, 2002 (Public Law 107–239), is 

amended by adding at the end the following new subsection: 

‘‘(f) For purposes of section 21(c) of the Alaska Native Claims 

Settlement Act (43 U.S.C. 1620(c)), all property received by the Aleut 

Corporation under this Act shall be given a tax basis equal to fair 

value on the date of the transfer. Fair value shall be determined by 

replacement cost appraisal.’’.

SEC. 2854. SPECIAL REQUIREMENT FOR ADDING MILITARY INSTALLATION TO CLOSURE LIST. 

Section 2914(d) of the Defense Base Closure and Realignment 

Act of 1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C. 

2687 note), as added by section 3003 of the Military Construction 

Authorization Act for Fiscal Year 2002 (division B of Public Law 

107–107; 155 Stat, 1346), is amended—

(1) by redesignating paragraph (5) as paragraph (6); and 

(2) by inserting after paragraph (4) the following new paragraph (5): 

‘‘(5) SITE VISIT.—In the report required under section 

2903(d)(2)(A) that is to be transmitted under paragraph (1), the 

Commission may not recommend the closure of a military installation not recommended for closure by the Secretary under 

subsection (a) unless at least two members of the Commission 

visit the installation before the date of the transmittal of the report.’’.

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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 management. 

Sec. 3103. Other defense activities. 

Sec. 3104. Defense nuclear waste disposal. 

Subtitle B—Program Authorizations, Restrictions, and Limitations 

Sec. 3141. Annual assessments and reports to the President and Congress regarding 

the condition of the United States nuclear weapons stockpile. 

Sec. 3142. Plans for achieving enhanced readiness posture for resumption by the 

United States of underground nuclear weapons tests. 

Sec. 3143. Requirements for specific request for new or modified nuclear weapons. 

Sec. 3144. Database to track notification and resolution phases of Significant Finding Investigations. 

Sec. 3145. Defense environmental management cleanup reform program. 

Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth Penetrator 

program pending submission of report. 

Subtitle C—Proliferation Matters 

Sec. 3151. Transfer to National Nuclear Security Administration of Department of 

Defense’s Cooperative Threat Reduction program relating to elimination 

of weapons grade plutonium production in Russia. 

Sec. 3152. Repeal of requirement for reports on obligation of funds for programs on 

fissile materials in Russia. 

Sec. 3153. Expansion of annual reports on status of nuclear materials protection, 

control, and accounting programs. 

Sec. 3154. Testing of preparedness for emergencies involving nuclear, radiological, 

chemical, or biological weapons. 

Sec. 3155. Cooperative program on research, development, and demonstration of 

technology regarding nuclear or radiological terrorism. 

Sec. 3156. Matters relating to the International Materials Protection, Control, and 

Accounting program of the Department of Energy. 

Sec. 3157. Accelerated disposition of highly enriched uranium. 

Sec. 3158. Strengthened international security for nuclear materials and security of 

nuclear operations. 

Sec. 3159. Export control programs. 

Sec. 3160. Plan for accelerated return of weapons-usable nuclear materials. 

Sec. 3161. Sense of Congress on amendment of Convention on Physical Protection of 

Nuclear Materials. 

Sec. 3162. Sense of Congress on program to secure stockpiles of highly enriched uranium and plutonium. 

Subtitle D—Other Matters 

Sec. 3171. Indemnification of Department of Energy contractors. 

Sec. 3172. Support for public education in the vicinity of Los Alamos National Laboratory, New Mexico. 

Sec. 3173. Worker health and safety rules for Department of Energy nuclear facilities. 

Sec. 3174. Extension of authority to appoint certain scientific, engineering, and technical personnel. 

Sec. 3175. One-year extension of panel to assess the reliability, safety, and security 

of the United States nuclear stockpile. 

Sec. 3176. Report on status of environmental management initiatives to accelerate 

the reduction of environmental risks and challenges posed by the legacy 

of the Cold War. 

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Subtitle E—Disposition of Weapons-Usable Plutonium at Savannah River, 

South Carolina 

Sec. 3181. Findings. 

Sec. 3182. Disposition of weapons-usable plutonium at Savannah River Site. 

Sec. 3183. Study of facilities for storage of plutonium and plutonium materials at 

Savannah River Site.

Subtitle A—National Security Programs 

Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby authorized to be appropriated to the Department of Energy for fiscal 

year 2003 for the activities of the National Nuclear Security Administration in carrying out programs necessary for national security in 

the amount of $8,038,490,000, to be allocated as follows: 

(1) For weapons activities, $5,901,641,000. 

(2) For defense nuclear nonproliferation activities, 

$1,104,130,000.

(3) For naval reactors, $706,790,000. 

(4) For the Office of the Administrator for Nuclear Security, 

$325,929,000. 

(b) AUTHORIZATION OF NEW PLANT PROJECTS.—From funds referred to in subsection (a) that are available for carrying out plant 

projects, the Secretary of Energy may carry out new plant projects 

as follows: 

(1) For weapons activities, the following new plant projects: 

Project 03–D–101, Sandia underground reactor facility 

(SURF), Sandia National Laboratories, Albuquerque, New 

Mexico, $2,000,000. 

Project 03–D–103, project engineering and design, various locations, $17,039,000. 

Project 03–D–121, gas transfer capacity expansion, 

Kansas City Plant, Kansas City, Missouri, $4,000,000. 

Project 03–D–122, prototype purification facility, Y–12 

plant, Oak Ridge, Tennessee, $20,800,000. 

Project 03–D–123, special nuclear materials requalification, Pantex plant, Amarillo, Texas, $3,000,000. 

(2) For naval reactors, the following new plant project: 

Project 03–D–201, cleanroom technology facility, Bettis 

Atomic Power Laboratory, West Mifflin, Pennsylvania, 

$7,200,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby authorized to be appropriated to the Department of Energy for fiscal 

year 2003 for environmental management activities in carrying out 

programs necessary for national security in the amount of 

$6,759,846,000, to be allocated as follows: 

(1) For defense environmental restoration and waste management, $4,510,133,000. 

(2) For defense environmental management cleanup reform 

in carrying out environmental restoration and waste management activities necessary for national security programs, 

$982,000,000. 

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(3) For defense facilities closure projects, $1,109,314,000. 

(4) For defense environmental management privatization, $158,399,000. 

(b) AUTHORIZATION OF NEW PLANT PROJECTS.—From funds referred to in subsection (a) that are available for carrying out plant 

projects, the Secretary of Energy may carry out new plant projects 

as follows: 

(1) For environmental restoration and waste management 

activities, the following new plant project: 

Project 03–D–403, immobilized high-level waste in- terim storage facility, Richland, Washington, $6,363,000. 

(2) For defense environmental management cleanup reform, 

the following new plant project: 

Project 03–D–414, project engineering and design, var- ious locations, $8,800,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES. 

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2003 for other defense activities in 

carrying out programs necessary for national security in the amount 

of $462,664,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL. 

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2003 for defense nuclear waste disposal for payment to the Nuclear Waste Fund established in section 

302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) 

in the amount of $315,000,000.

Subtitle B—Program Authorizations, 

Restrictions, and Limitations

SEC. 3141. ANNUAL ASSESSMENTS AND REPORTS TO THE PRESIDENT 

AND CONGRESS REGARDING THE CONDITION OF THE 

UNITED STATES NUCLEAR WEAPONS STOCKPILE. 

(a) ANNUAL ASSESSMENTS REQUIRED.—For each nuclear weapon type in the stockpile of the United States, each official specified 

in subsection (b) on an annual basis shall, to the extent such official 

is directly responsible for the safety, reliability, performance, or 

military effectiveness of that nuclear weapon type, complete an assessment of the safety, reliability, performance, or military effectiveness (as the case may be) of that nuclear weapon type. 

(b) COVERED OFFICIALS.—The officials referred to in subsection 

(a) are the following: 

(1) The head of each national security laboratory. 

(2) The commander of the United States Strategic Command. 

(c) USE OF TEAMS OF EXPERTS FOR ASSESSMENTS.—The head 

of each national security laboratory shall establish and use one or 

more teams of experts, known as ‘‘red teams’’, to assist in the assessments required by subsection (a). Each such team shall include experts from both of the other national security laboratories. Each 

such team for a national security laboratory shall— (1) review the matters covered by the assessments under 

subsection (a) performed by the head of that laboratory; 

(2) subject such matters to challenge; and 

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(3) submit the results of such review and challenge, together with the findings and recommendations of such team 

with respect to such review and challenge, to the head of that 

laboratory. 

(d) REPORT ON ASSESSMENTS.—Not later than December 1 of 

each year, each official specified in subsection (b) shall submit to the 

Secretary concerned, and to the Nuclear Weapons Council, a report 

on the assessments that such official was required by subsection (a) 

to complete. The report shall include the following: 

(1) The results of each such assessment. 

(2)(A) Such official’s determination as to whether or not one 

or more underground nuclear tests are necessary to resolve any 

issues identified in the assessments and, if so— (i) an identification of the specific underground nuclear 

tests that are necessary to resolve such issues; and 

(ii) a discussion of why options other than an underground nuclear test are not available or would not resolve 

such issues. 

(B) An identification of the specific underground nuclear 

tests which, while not necessary, might have value in resolving 

any such issues and a discussion of the anticipated value of 

conducting such tests. 

(C) Such official’s determination as to the readiness of the 

United States to conduct the underground nuclear tests identified under subparagraphs (A)(i) and (B), if directed by the 

President to do so. 

(3) In the case of a report submitted by the head of a national security laboratory— (A) a concise statement regarding the adequacy of the 

science-based tools and methods being used to determine 

the matters covered by the assessments; 

(B) a concise statement regarding the adequacy of the 

tools and methods employed by the manufacturing infrastructure required by section 3137 of the National Defense 

Authorization Act for Fiscal Year 1996 (42 U.S.C. 2121 

note) to identify and fix any inadequacy with respect to the 

matters covered by the assessments; and 

(C) a concise summary of the findings and recommendations of any teams under subsection (c) that relate 

to the assessments, together with a discussion of those findings and recommendations. 

(4) In the case of a report submitted by the Commander of 

the United States Strategic Command, a discussion of the relative merits of other nuclear weapon types (if any), or compensatory measures (if any) that could be taken, that could enable 

accomplishment of the missions of the nuclear weapon types to 

which the assessments relate, should such assessments identify 

any deficiency with respect to such nuclear weapon types. 

(5) An identification and discussion of any matter having 

an adverse effect on the capability of the official submitting the 

report to accurately determine the matters covered by the assessments. 

(e) SUBMITTALS TO THE PRESIDENT AND CONGRESS.—(1) Not 

later than March 1 of each year, the Secretary of Defense and the 

Secretary of Energy shall submit to the President—

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(A) each report, without change, submitted to either Secretary under subsection (d) during the preceding year; 

(B) any comments that the Secretaries individually or jointly consider appropriate with respect to each such report; 

(C) the conclusions that the Secretaries individually or 

jointly reach as to the safety, reliability, performance, and military effectiveness of the nuclear weapons stockpile of the United 

States; and 

(D) any other information that the Secretaries individually 

or jointly consider appropriate. 

(2) Not later than March 15 of each year, the President shall 

forward to Congress the matters received by the President under 

paragraph (1) for that year, together with any comments the President considers appropriate. 

(f) CLASSIFIED FORM.—Each submittal under subsection (e) 

shall be in classified form only, with the classification level required 

for each portion of such submittal marked appropriately.

(g) DEFINITIONS.—In this section: 

(1) The term ‘‘national security laboratory’’ has the meaning given such term in section 3281 of the National Nuclear Security Administration Act (50 U.S.C. 2471). 

(2) The term ‘‘Secretary concerned’’ means— (A) the Secretary of Energy, with respect to matters 

concerning the Department of Energy; and 

(B) the Secretary of Defense, with respect to matters 

concerning the Department of Defense. 

(h) FIRST SUBMISSIONS.—(1) The first submissions made under 

subsection (d) shall be the submissions required to be made in 2003. 

(2) The first submissions made under subsection (e) shall be the 

submissions required to be made in 2004.

SEC. 3142. PLANS FOR ACHIEVING ENHANCED READINESS POSTURE 

FOR RESUMPTION BY THE UNITED STATES OF UNDERGROUND NUCLEAR WEAPONS TESTS. 

(a) PLANS REQUIRED.—The Secretary of Energy, in consultation 

with the Administrator for Nuclear Security, shall prepare plans for 

achieving, not later than one year after the date on which the plans 

are submitted under subsection (c), readiness postures of six 

months, 12 months, 18 months, and 24 months for resumption by 

the United States of underground nuclear weapons tests. 

(b) READINESS POSTURE.—For purposes of this section, a readiness posture of a specified number of months for resumption by the 

United States of underground nuclear weapons tests is achieved 

when the Department of Energy has the capability to resume such 

tests, if directed by the President to resume such tests, not later than 

the specified number of months after the date on which the President so directs. 

(c) REPORT.—The Secretary shall include with the budget justification materials submitted to Congress in support of the Department of Energy budget for fiscal year 2004 (as submitted with the 

budget of the President under section 1105(a) of title 31, United 

States Code) a report on the plans required by subsection (a). The 

report shall include— (1) an assessment of the current readiness posture for resumption by the United States of underground nuclear weapons 

tests; 

278

(2) the plans required by subsection (a) and, for each such 

plan, the estimated cost for implementing such plan and an estimate of the annual cost of maintaining the readiness posture 

to which the plan relates; and 

(3) the recommendation of the Secretary, developed in consultation with the Secretary of Defense, as to the optimal readiness posture for resumption by the United States of underground nuclear weapons tests, including the basis for that recommendation.

SEC. 3143. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR 

MODIFIED NUCLEAR WEAPONS. 

(a) REQUIREMENT FOR REQUEST FOR FUNDS FOR DEVELOPMENT.—(1) In any fiscal year after fiscal year 2002 in which the 

Secretary of Energy plans to carry out activities described in paragraph (2) relating to the development of a new nuclear weapon or 

modified nuclear weapon, the Secretary shall specifically request 

funds for such activities in the budget of the President for that fiscal 

year under section 1105(a) of title 31, United States Code. 

(2) The activities described in this paragraph are as follows: 

(A) The conduct, or provision for conduct, of research and 

development which could lead to the production of a new nuclear weapon by the United States. 

(B) The conduct, or provision for conduct, of engineering or 

manufacturing to carry out the production of a new nuclear 

weapon by the United States. 

(C) The conduct, or provision for conduct, of research and 

development which could lead to the production of a modified 

nuclear weapon by the United States.

(D) The conduct, or provision for conduct, of engineering or 

manufacturing to carry out the production of a modified nuclear weapon by the United States. 

(b) BUDGET REQUEST FORMAT.—The Secretary shall include in 

a request for funds under subsection (a) the following: 

(1) In the case of funds for activities described in subparagraph (A) or (C) of subsection (a)(2), a single dedicated line 

item for all such activities for new nuclear weapons or modified 

nuclear weapons that are in phase 1, 2, or 2A or phase 6.1, 6.2, 

or 6.2A (as the case may be), or any concept work prior to phase 

1 or 6.1 (as the case may be), of the nuclear weapons acquisition 

process. 

(2) In the case of funds for activities described in subparagraph (B) or (D) of subsection (a)(2), a dedicated line item for 

each such activity for a new nuclear weapon or modified nuclear weapon that is in phase 3 or higher or phase 6.3 or higher 

(as the case may be) of the nuclear weapons acquisition process. 

(c) EXCEPTION.—Subsection (a) shall not apply to funds for purposes of conducting, or providing for the conduct of, research and 

development, or manufacturing and engineering, determined by the 

Secretary to be necessary—

(1) for the nuclear weapons life extension program; 

(2) to modify an existing nuclear weapon solely to address 

safety or reliability concerns; or 

(3) to address proliferation concerns. 

(d) DEFINITIONS.—In this section: 

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(1) The term ‘‘life extension program’’ means the program 

to repair or replace non-nuclear components, or to modify the 

pit or canned subassembly, of nuclear weapons that are in the 

nuclear weapons stockpile on the date of the enactment of this 

Act in order to assure that such nuclear weapons retain the 

ability to meet the military requirements applicable to such nuclear weapons when first placed in the nuclear weapons stockpile. 

(2) The term ‘‘modified nuclear weapon’’ means a nuclear 

weapon that contains a pit or canned subassembly, either of 

which— (A) is in the nuclear weapons stockpile as of the date 

of the enactment of this Act; and 

(B) is being modified in order to meet a military requirement that is other than the military requirements applicable to such nuclear weapon when first placed in the 

nuclear weapons stockpile. 

(3) The term ‘‘new nuclear weapon’’ means a nuclear weapon that contains a pit or canned subassembly, either of which 

is neither—

(A) in the nuclear weapons stockpile on the date of the 

enactment of this Act; nor 

(B) in production as of that date.

SEC. 3144. DATABASE TO TRACK NOTIFICATION AND RESOLUTION 

PHASES OF SIGNIFICANT FINDING INVESTIGATIONS. 

(a) AVAILABILITY OF FUNDS FOR DATABASE.—Amounts authorized to be appropriated by section 3101(a)(1) for the National Nuclear Security Administration for weapons activities shall be available to the Deputy Administrator for Nuclear Security for Defense 

Programs for the development and implementation of a database for 

all national security laboratories to track the notification and resolution phases of Significant Finding Investigations (SFIs). The purpose of the database is to facilitate the monitoring of the progress 

and accountability of the national security laboratories in Significant Finding Investigations. 

(b) IMPLEMENTATION DEADLINE.—The database required by 

subsection (a) shall be implemented not later than September 30, 

2003. 

(c) NATIONAL SECURITY LABORATORY DEFINED.—In this section, 

the term ‘‘national security laboratory’’ has the meaning given that 

term in section 3281(1) of the National Nuclear Security Administration Act (title XXXII of Public Law 106–65; 113 Stat. 968; 50 

U.S.C. 2471(1)).

SEC. 3145. DEFENSE ENVIRONMENTAL MANAGEMENT CLEANUP REFORM PROGRAM. 

(a) PROGRAM REQUIRED.—From funds made available pursuant 

to section 3102(a)(2) for defense environmental management cleanup 

reform, the Secretary of Energy shall carry out a program to reform 

DOE environmental management activities. In carrying out the program, the Secretary shall allocate, to each site for which the Secretary has submitted to the congressional defense committees a site 

performance management plan, the amount of those funds that such 

plan requires. 

(b) TRANSFER AND MERGER OF FUNDS.—(1) Funds so allocated 

shall, notwithstanding section 3624, be transferred to the account 

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for DOE environmental management activities and, subject to paragraph (2) and subsection (c), shall be merged with and be available 

for the same purposes and for the same period as the funds available in such account. The authority provided by section 3629 shall 

apply to funds so transferred. 

(2) No funds so allocated may be obligated or expended until 

30 days after the Secretary submits to the congressional defense 

committees a description of the activities to be carried out at each 

site to which funds are so allocated. 

(c) LIMITATION ON USE OF ALL MERGED FUNDS.—Upon a transfer and merger of funds under subsection (b), all funds in the 

merged account that are available with respect to the site may be 

used only to carry out the site performance management plan for the 

site. 

(d) SITE PERFORMANCE MANAGEMENT PLAN DEFINED.—For 

purposes of this section, a site performance management plan for a 

site is a plan, agreed to by the applicable Federal and State agencies with regulatory jurisdiction with respect to the site, for the performance of activities to accelerate the reduction of environmental 

risk in connection with, and to accelerate the environmental cleanup 

of, the site. 

(e) DOE ENVIRONMENTAL MANAGEMENT ACTIVITIES DEFINED.—

For purposes of this section, the term ‘‘DOE environmental management activities’’ means environmental restoration and waste management activities of the Department of Energy in carrying out programs necessary for national security.

SEC. 3146. LIMITATION ON OBLIGATION OF FUNDS FOR ROBUST NUCLEAR EARTH PENETRATOR PROGRAM PENDING SUBMISSION OF REPORT. 

(a) REPORT-AND-WAIT REQUIREMENT.—None of the funds made 

available to the Secretary of Energy for fiscal year 2003 for the Robust Nuclear Earth Penetrator program may be obligated until—

(1) the Secretary of Defense submits to the Committees on 

Armed Services of the Senate and House of Representatives a 

report described in subsection (b); and 

(2) a period of 30 days has passed after such report is received by those committees. 

(b) REPORT.—A report under subsection (a)(1) is a report on the 

Robust Nuclear Earth Penetrator program, prepared by the Secretary of Defense in consultation with the Secretary of Energy, that 

sets forth the following: 

(1) The military requirements for the Robust Nuclear Earth 

Penetrator. 

(2) The nuclear weapons employment policy regarding the 

Robust Nuclear Earth Penetrator. 

(3) A detailed description of the categories or types of targets that the Robust Nuclear Earth Penetrator is designed to 

hold at risk. 

(4) An assessment of the ability of conventional weapons to 

defeat the same categories and types of targets as are described 

pursuant to paragraph (3). 

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Subtitle C—Proliferation Matters

SEC. 3151. TRANSFER TO NATIONAL NUCLEAR SECURITY ADMINISTRATION OF DEPARTMENT OF DEFENSE’S COOPERATIVE 

THREAT REDUCTION PROGRAM RELATING TO ELIMINATION OF WEAPONS GRADE PLUTONIUM PRODUCTION 

IN RUSSIA. 

(a) TRANSFER OF PROGRAM.—There are hereby transferred to 

the Administrator for Nuclear Security the following:

(1) The program, within the Cooperative Threat Reduction 

program of the Department of Defense, relating to the elimination of weapons grade plutonium production in Russia. 

(2) All functions, powers, duties, and activities of that program performed before the date of the enactment of this Act by 

the Department of Defense. 

(b) TRANSFER OF ASSETS.—(1) Notwithstanding any restriction 

or limitation in law on the availability of Cooperative Threat Reduction funds specified in paragraph (2), so much of the property, 

records, and unexpended balances of appropriations, allocations, 

and other funds employed, used, held, available, or to be made 

available in connection with the program transferred by subsection 

(a) are transferred to the Administrator for use in connection with 

the program transferred. 

(2) The Cooperative Threat Reduction funds specified in this 

paragraph are the following: 

(A) Fiscal year 2002 Cooperative Threat Reduction funds, 

as specified in section 1301(b) of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 

1254; 22 U.S.C. 5952 note). 

(B) Fiscal year 2001 Cooperative Threat Reduction funds, 

as specified in section 1301(b) 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–339; 22 U.S.C. 

5959 note). 

(C) Fiscal year 2000 Cooperative Threat Reduction funds, 

as specified in section 1301(b) of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 

792; 22 U.S.C. 5952 note). 

(c) AVAILABILITY OF TRANSFERRED FUNDS.—(1) Notwithstanding any restriction or limitation in law on the availability of 

Cooperative Threat Reduction funds specified in subsection (b)(2), 

the Cooperative Threat Reduction funds transferred under subsection (b) for the program referred to in subsection (a) shall be 

available for activities as follows: 

(A) To design and construct, refurbish, or both, fossil fuel 

energy plants in Russia that provide alternative sources of energy to the energy plants in Russia that produce weapons grade 

plutonium. 

(B) To carry out limited safety upgrades of not more than 

three energy plants in Russia that produce weapons grade plutonium, provided that such upgrades do not extend the life of 

those plants. 

(2) Amounts available under paragraph (1) for activities referred to in that paragraph shall remain available for obligation for 

three fiscal years. 

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(d) LIMITATION.—(1) Of the amounts authorized to be appropriated by this title or any other Act for the program referred to in 

subsection (a), the Administrator for Nuclear Security may not obligate any funds for construction, or obligate or expend more than 

$100,000,000 for that program, until 30 days after the later of—

(A) the date on which the Administrator submits to the congressional defense committees, the Committee on International 

Relations of the House of Representatives, and the Committee 

on Foreign Relations of the Senate, a copy of an agreement or 

agreements entered into between the United States Government 

and the Government of the Russian Federation to shut down 

the three plutonium-producing reactors in Russia as specified 

under paragraph (2); and 

(B) the date on which the Administrator submits to the 

committees specified in subparagraph (A) a report on a plan to 

achieve international participation in the program referred to in 

subsection (a), including cost sharing. 

(2) The agreement (or agreements) under paragraph (1)(A) shall 

contain—

(A) a commitment to shut down the three plutonium-producing reactors; 

(B) the date on which each such reactor will be shut down;

(C) a schedule and milestones for each such reactor to complete the shutdown of such reactor by the date specified under 

subparagraph (B); 

(D) a schedule and milestones for refurbishment or construction of fossil fuel energy plants to be undertaken by the 

Government of the Russian Federation in support of the program; 

(E) an arrangement for access to sites and facilities necessary to meet such schedules and milestones; 

(F) an arrangement for audit and examination procedures 

in order to evaluate progress in meeting such schedules and 

milestones; and 

(G) any cost sharing arrangements between the United 

States Government and the Government of the Russian Federation in undertaking activities under such agreement (or agreements).

SEC. 3152. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION 

OF FUNDS FOR PROGRAMS ON FISSILE MATERIALS IN 

RUSSIA. 

Section 3131 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 617; 22 U.S.C. 5952 

note) is amended—

(1) in subsection (a), by striking ‘‘(a) AUTHORITY.—’’; and 

(2) by striking subsection (b).

SEC. 3153. EXPANSION OF ANNUAL REPORTS ON STATUS OF NUCLEAR 

MATERIALS PROTECTION, CONTROL, AND ACCOUNTING 

PROGRAMS. 

(a) COVERED PROGRAMS.—Subsection (a) of section 3171 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–

475; 22 U.S.C. 5952 note) is amended by striking ‘‘Russia that’’ and 

inserting ‘‘countries where such materials’’. 

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(b) REPORT CONTENTS.—Subsection (b) of that section is 

amended—

(1) in paragraph (1) by inserting ‘‘in each country covered 

by subsection (a)’’ after ‘‘locations,’’; 

(2) in paragraph (2), by striking ‘‘in Russia’’ and inserting 

‘‘in each such country’’; 

(3) in paragraph (3), by inserting ‘‘in each such country’’

after ‘‘subsection (a)’’; and 

(4) in paragraph (5), by striking ‘‘by total amount and by 

amount per fiscal year’’ and inserting ‘‘by total amount per 

country and by amount per fiscal year per country’’.

SEC. 3154. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, RADIOLOGICAL, CHEMICAL, OR BIOLOGICAL WEAPONS. 

(a) EXTENSION OF TESTING.—Section 1415 of the Defense 

Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104–201; 110 Stat. 2720; 50 U.S.C. 2315) is amended—

(1) in subsection (a)(2), by striking ‘‘of five successive fiscal 

years beginning with fiscal year 1997’’ and inserting ‘‘of fiscal 

years 1997 through 2013’’; and 

(2) in subsection (b)(2), by striking ‘‘of five successive fiscal 

years beginning with fiscal year 1997’’ and inserting ‘‘of fiscal 

years 1997 through 2013’’. 

(b) CONSTRUCTION OF EXTENSION WITH DESIGNATION OF ATTORNEY GENERAL AS LEAD OFFICIAL.—The amendments made by 

subsection (a) may not be construed as modifying the designation of 

the President titled ‘‘Designation of the Attorney General as the 

Lead Official for the Emergency Response Assistance Program 

Under Sections 1412 and 1415 of the National Defense Authorization Act for Fiscal Year 1997’’, dated April 6, 2000, designating the 

Attorney General to assume programmatic and funding responsibilities for the Emergency Response Assistance Program under sections 

1412 and 1415 of the Defense Against Weapons of Mass Destruction 

Act of 1996 (title XIV of the National Defense Authorization Act for 

Fiscal Year 1997).

SEC. 3155. COOPERATIVE PROGRAM ON RESEARCH, DEVELOPMENT, 

AND DEMONSTRATION OF TECHNOLOGY REGARDING NUCLEAR OR RADIOLOGICAL TERRORISM. 

(a) PROGRAM REQUIRED.—The Administrator for Nuclear Security shall carry out with the Russian Federation a cooperative program on the research, development, and demonstration of technologies for protection from and response to nuclear or radiological 

terrorism. 

(b) PROGRAM ELEMENTS.—In carrying out the program required 

by subsection (a), the Administrator shall—

(1) conduct research and development of technology for protection from nuclear or radiological terrorism, including technology for the detection, identification, assessment, control, and 

disposition of radiological materials that could be used for nuclear terrorism; and 

(2) provide, where feasible, for the demonstration to other 

countries of technologies or methodologies on matters relating to 

nuclear or radiological terrorism, including—

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(A) the demonstration of technologies developed under 

the program to respond to nuclear or radiological terrorism; 

(B) the demonstration of technologies developed under 

the program for the disposal of radioactive materials; 

(C) the demonstration of methodologies developed 

under the program for use in evaluating the radiological 

threat of radiological sources identified as not under current accounting programs in the audit report of the Inspector General of the Department of Energy titled ‘‘Accounting 

for Sealed Sources of Nuclear Material Provided to Foreign 

Countries’’ (DOE/IG–0546); 

(D) in coordination with the Nuclear Regulatory Commission, the demonstration of methodologies developed 

under the program to facilitate the development of a regulatory framework for licensing and controlling radioactive 

sources; and 

(E) in coordination with the Office of Environment, 

Safety, and Health of the Department of Energy, the demonstration of methodologies developed under the program to 

facilitate development of consistent criteria for screening 

international transfers of radiological materials. 

(c) CONSULTATION.—In carrying out activities in accordance 

with subsection (b)(2), the Administrator shall consult with— (1) the Secretary of Defense, Secretary of State, and Secretary of Commerce; and 

(2) the International Atomic Energy Agency. 

(d) AMOUNT FOR ACTIVITIES.—Of the amount authorized to be 

appropriated by section 3101(a)(2) for the Department of Energy for 

the National Nuclear Security Administration for defense nuclear 

nonproliferation, up to $15,000,000 may be available for carrying 

out this section.

SEC. 3156. MATTERS RELATING TO THE INTERNATIONAL MATERIALS 

PROTECTION, CONTROL, AND ACCOUNTING PROGRAM OF 

THE DEPARTMENT OF ENERGY. 

(a) RADIOLOGICAL DISPERSAL DEVICE MATERIALS PROTECTION, CONTROL, AND ACCOUNTING.—The Secretary of Energy may establish within the International Materials Protection, Control, and Accounting program of the Department of Energy a program on the 

protection, control, and accounting of materials usable in radiological dispersal devices. In establishing such program, the Secretary shall— (1) identify the sites and radiological materials to be covered by such program; 

(2) carry out a risk assessment of such radiological materials; and 

(3) identify and establish the costs of and schedules for 

such program. 

(b) REVISED FOCUS FOR MATERIALS PROTECTION, CONTROL, AND ACCOUNTING PROGRAM OF RUSSIAN FEDERATION.—(1) The Secretary of Energy shall work cooperatively with the Russian Federation to develop, as soon as practicable but not later than January 

1, 2013, a sustainable nuclear materials protection, control, and accounting system for the nuclear materials of the Russian Federation 

that is supported solely by the Russian Federation. 

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(2) The Secretary shall work with the Russian Federation to 

identify various alternatives to provide the United States adequate 

transparency in the nuclear materials protection, control, and accounting program of the Russian Federation to assure that such 

program is meeting applicable goals for nuclear materials protection, control, and accounting. 

(c) AMOUNT FOR ACTIVITIES.—Of the amount authorized to be 

appropriated by section 3101(a)(2) for the Department of Energy for 

the National Nuclear Security Administration for defense nuclear 

nonproliferation, up to $5,000,000 may be available for carrying out 

this section.

SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM. 

(a) PROGRAM ON ACCELERATED DISPOSITION OF HEU AUTHOR- IZED.—(1) The Secretary of Energy may carry out a program to pursue with the Russian Federation options for blending highly enriched uranium so that the concentration of U–235 in such uranium 

is below 20 percent. 

(2) The options pursued under paragraph (1) shall include expansion of the Material Consolidation and Conversion program of 

the Department of Energy to include— (A) additional facilities for the blending of highly enriched 

uranium; and 

(B) additional centralized secure storage facilities for highly enriched uranium designated for blending. 

(3) Any site selected for the storage of uranium or blended material under paragraph (2)(B) shall undergo complete materials protection, control, and accounting upgrades before the commencement 

of the storage of uranium or blended material at such site under the 

program. 

(b) CONSTRUCTION WITH HEU DISPOSITION AGREEMENT.— Nothing in this section may be construed as terminating, modifying, 

or otherwise affecting requirements for the disposition of highly enriched uranium under the Agreement Between the Government of 

the United States of America and the Government of the Russian 

Federation Concerning the Disposition of Highly Enriched Uranium 

Extracted from Nuclear Weapons, signed at Washington on February 18, 1993. 

(c) LIMITATION ON RELEASE FOR SALE OF BLENDED URANIUM.— Uranium blended under this section may not be released for sale 

until the earlier of— (1) January 1, 2014; or 

(2) the date on which the Secretary certifies that such uranium can be absorbed into the global market without undue 

disruption to the uranium mining, conversion, and enrichment 

industry in the United States. 

(d) AMOUNT FOR ACTIVITIES.—Of the amount to be appropriated by section 3101(a)(2) for the Department of Energy for the 

National Nuclear Security Administration for defense nuclear nonproliferation, up to $10,000,000 may be available for carrying out 

this section.

SEC. 3158. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR 

MATERIALS AND SECURITY OF NUCLEAR OPERATIONS. 

(a) REPORT ON OPTIONS FOR INTERNATIONAL PROGRAM TO

STRENGTHEN SECURITY.—(1) Not later than 270 days after the date 

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of the enactment of this Act, the Secretary of Energy shall submit 

to Congress a report on options for an international program to develop strengthened security for nuclear reactors and associated materials outside the United States. 

(2) In evaluating options for purposes of the report, the Secretary shall consult with the Nuclear Regulatory Commission and 

the International Atomic Energy Agency on the feasibility and advisability of actions to reduce the risks associated with terrorist attacks on nuclear reactors outside the United States. 

(b) JOINT PROGRAMS WITH RUSSIA ON PROLIFERATION-RESISTANT NUCLEAR ENERGY TECHNOLOGIES.—(1) The Secretary shall 

pursue with the Ministry of Atomic Energy of the Russian Federation joint programs between the United States and the Russian Federation on the development of proliferation-resistant nuclear energy 

technologies, including advanced fuel cycles. 

(2) Of the amount authorized to be appropriated by section 

3101(a)(2) for the Department of Energy for the National Nuclear 

Security Administration for defense nuclear nonproliferation, up to 

$10,000,000 may be available for carrying out the joint programs 

referred to in paragraph (1). 

(c) ASSISTANCE REGARDING HOSTILE INSIDERS.—The Secretary 

may, utilizing appropriate expertise of the Department of Energy 

and the Nuclear Regulatory Commission, provide technical assistance to nuclear reactor facilities outside the United States with respect to the interdiction of hostile insiders at such facilities in order 

to prevent incidents arising from the disablement of the vital systems of such facilities.

SEC. 3159. EXPORT CONTROL PROGRAMS. 

(a) AUTHORITY TO PURSUE OPTIONS FOR STRENGTHENING EXPORT CONTROL PROGRAMS.—The Secretary of Energy, in coordination with the Secretary of State, may pursue in the region of the 

former Soviet Union and other regions of concern options for accelerating programs that assist the countries in such regions in improving their domestic export control programs for materials, technologies, and expertise relevant to the construction or use of a nuclear or radiological dispersal device. 

(b) AMOUNT FOR ACTIVITIES.—Of the amount authorized to be 

appropriated by section 3101(a)(2) for the Department of Energy for 

the National Nuclear Security Administration for defense nuclear 

nonproliferation, up to $5,000,000 may be available for carrying out 

this section.

SEC. 3160. PLAN FOR ACCELERATED RETURN OF WEAPONS-USABLE 

NUCLEAR MATERIALS. 

(a) PLAN FOR ACCELERATED RETURN.—The Secretary of Energy 

shall work with the Russian Federation to develop a plan to accelerate the return to Russia of all weapons-usable nuclear materials 

located in research reactors and other facilities outside Russia that 

were supplied by the former Soviet Union. 

(b) FUNDING AND SCHEDULES.—As part of the plan under subsection (a), the Secretary shall identify the funding and schedules 

required to assist the research reactors and facilities referred to in 

that subsection in—

(1) transferring highly enriched uranium to Russia; and 

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(2) upgrading the materials protection, control, and accounting procedures at such research reactors and facilities 

until the weapons-usable nuclear materials in such reactors 

and facilities are returned in accordance with that subsection. 

(c) COORDINATION.—The provision of assistance under subsection (b) shall be closely coordinated with the International Atomic Energy Agency.

SEC. 3161. SENSE OF CONGRESS ON AMENDMENT OF CONVENTION ON 

PHYSICAL PROTECTION OF NUCLEAR MATERIALS. 

(a) SENSE OF CONGRESS.—It is the sense of Congress that the 

President should encourage amendment of the Convention on the 

Physical Protection of Nuclear Materials in order to provide that the 

Convention shall—

(1) apply to both the domestic and international use and 

transport of nuclear materials; 

(2) incorporate fundamental practices for the physical protection of such materials; and 

(3) address protection against sabotage involving nuclear 

materials. 

(b) CONVENTION ON THE PHYSICAL PROTECTION OF NUCLEAR

MATERIAL DEFINED.—In this section, the term ‘‘Convention on the 

Physical Protection of Nuclear Materials’’ means the Convention on 

the Physical Protection of Nuclear Materials, With Annex, done at 

Vienna on October 26, 1979.

SEC. 3162. SENSE OF CONGRESS ON PROGRAM TO SECURE STOCKPILES OF HIGHLY ENRICHED URANIUM AND PLUTONIUM. 

It is the sense of Congress that the Secretary of Energy should, 

in consultation with the Secretary of State and Secretary of Defense, 

develop a comprehensive program of activities to encourage all countries with nuclear materials to adhere to, or to adopt standards 

equivalent to, the International Atomic Energy Agency standard on 

The Physical Protection of Nuclear Material and Nuclear Facilities 

(INFCIRC/225/Rev.4), relating to the security of stockpiles of highly enriched uranium (HEU) and plutonium (Pu).

Subtitle D—Other Matters

SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS. 

Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 

U.S.C. 2210(d)(1)(A)) is amended by striking ‘‘until August 1, 2002,’’

and inserting ‘‘until December 31, 2004,’’.

SEC. 3172. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS 

ALAMOS NATIONAL LABORATORY, NEW MEXICO. 

(a) SUPPORT FOR FISCAL YEAR 2003.—From amounts authorized to be appropriated to the Secretary of Energy by this title, 

$6,900,000 shall be available for payment by the Secretary for fiscal 

year 2003 to the Los Alamos National Laboratory Foundation, a 

not-for-profit foundation chartered as described in section 3167(a) of 

the National Defense Authorization Act for Fiscal Year 1998 (Public 

Law 105–85; 111 Stat. 2052). 

(b) USE OF FUNDS.—The foundation referred to in subsection 

(a) shall—

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(1) utilize funds provided under this section as a contribution to the endowment fund for the foundation; and 

(2) use the income generated from investments in the endowment fund that are attributable to the payment made under 

this section to fund programs to support the educational needs 

of children in the public schools in the vicinity of Los Alamos 

National Laboratory, New Mexico.

(c) REPEAL OF SUPERSEDED AUTHORITY AND MODIFICATION OF

AUTHORITY TO EXTEND CONTRACT.—(1) Subsection (b) of section 

3136 of the National Defense Authorization Act for Fiscal Year 2002 

(Public Law 107–107; 115 Stat. 1368) is amended to read as follows: ‘‘(b) SUPPORT FOR FISCAL YEARS 2003 THROUGH 2005.—Subject 

to the availability of appropriations, the Secretary may provide for 

a contract extension through fiscal year 2005 similar to the contract 

extension referred to in subsection (a)(2).’’. (2) The amendment made by paragraph (1) shall take effect on 

October 1, 2002. 

(d) REPORT.—(1) The Secretary of Energy, in consultation with 

the Administrator for Nuclear Security, shall conduct a study of options for funding the contract extension authorized by subsection (b) 

of such section 3136 (as amended by subsection (c)) other than 

through annual appropriations. The study should also include options for providing cost of living adjustments to teachers in the public schools in the vicinity of Los Alamos National Laboratory, New 

Mexico, other than through such contract extension. 

(2) Not later than December 31, 2003, the Secretary shall submit to the congressional defense committees a report on the study 

conducted under paragraph (1). The report shall set forth the findings and conclusions of the study, together with any recommendations as a result of the study.

SEC. 3173. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF 

ENERGY NUCLEAR FACILITIES. 

(a) WORKER HEALTH AND SAFETY RULES.—The Atomic Energy 

Act of 1954 is amended by inserting after section 234B (42 U.S.C. 

2282b) the following new section: 

‘‘SEC. 234C. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT 

OF ENERGY NUCLEAR FACILITIES. 

‘‘a. REGULATIONS REQUIRED.— ‘‘(1) IN GENERAL.—The Secretary shall promulgate regulations for industrial and construction health and safety at Department of Energy facilities that are operated by contractors 

covered by agreements of indemnification under section 170 d. 

of the Atomic Energy Act of 1954, after public notice and opportunity for comment under section 553 of title 5, United States 

Code (commonly known as the ‘Administrative Procedure Act’). 

Such regulations shall, subject to paragraph (3), provide a level 

of protection for workers at such facilities that is substantially 

equivalent to the level of protection currently provided to such 

workers at such facilities. 

‘‘(2) APPLICABILITY.—The regulations promulgated under 

paragraph (1) shall not apply to any facility that is a component of, or any activity conducted under, the Naval Nuclear 

Propulsion Program provided for under Executive Order No. 

12344, dated February 1, 1982 (42 U.S.C. 7158 note) (as in 

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force pursuant to section 1634 of the Department of Defense Authorization Act, 1985 (Public Law 98–525; 42 U.S.C. 7158 

note)). 

‘‘(3) FLEXIBILITY.—In promulgating the regulations under 

paragraph (1), the Secretary shall include flexibility—

‘‘(A) to tailor implementation of such regulations to reflect activities and hazards associated with a particular 

work environment; 

‘‘(B) to take into account special circumstances at a facility that is, or is expected to be, permanently closed and 

that is expected to be demolished, or title to which is expected to be transferred to another entity for reuse; and 

‘‘(C) to achieve national security missions of the Department of Energy in an efficient and timely manner. 

‘‘(4) NO EFFECT ON HEALTH AND SAFETY ENFORCEMENT.—

This subsection does not diminish or otherwise affect the enforcement or the application of any other law, regulation, order, 

or contractual obligation relating to worker health and safety.

‘‘b. CIVIL PENALTIES.—

‘‘(1) IN GENERAL.—A person (or any subcontractor or supplier of the person) who has entered into an agreement of indemnification under section 170 d. (or any subcontractor or 

supplier of the person) that violates (or is the employer of a person that violates) any regulation promulgated under subsection 

a. shall be subject to a civil penalty of not more than $70,000 

for each such violation. 

‘‘(2) CONTINUING VIOLATIONS.—If any violation under this 

subsection is a continuing violation, each day of the violation 

shall constitute a separate violation for the purpose of computing the civil penalty under paragraph (1). 

‘‘c. CONTRACT PENALTIES.—

‘‘(1) IN GENERAL.—The Secretary shall include in each contract with a contractor of the Department who has entered into 

an agreement of indemnification under section 170 d. provisions that provide an appropriate reduction in the fees or 

amounts paid to the contractor under the contract in the event 

of a violation by the contractor or contractor employee of any 

regulation promulgated under subsection a. 

‘‘(2) CONTENTS.—The provisions shall specify various degrees of violations and the amount of the reduction attributable 

to each degree of violation. 

‘‘d. COORDINATION OF PENALTIES.—

‘‘(1) CHOICE OF PENALTIES.—For any violation by a person 

of a regulation promulgated under subsection a., the Secretary 

shall pursue either civil penalties under subsection b. or contract penalties under subsection c., but not both. 

‘‘(2) MAXIMUM AMOUNT.—In the case of an entity described 

in subsection d. of section 234A, the total amount of civil penalties under subsection b. and contract penalties under subsection c. in a fiscal year may not exceed the total amount of 

fees paid by the Department of Energy to that entity in that fiscal year. 

‘‘(3) COORDINATION WITH SECTION 234A.—The Secretary 

shall ensure that a contractor of the Department is not penalVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00313 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
290

ized both under this section and under section 234A for the 

same violation.’’. (b) PROMULGATION OF INITIAL REGULATIONS.— (1) DEADLINE FOR PROMULGATING REGULATIONS.—The Secretary of Energy shall promulgate the regulations required by 

subsection a. of section 234C of the Atomic Energy Act of 1954 

(as added by subsection (a)) not later than one year after the 

date of the enactment of this Act. 

(2) EFFECTIVE DATE.—The regulations promulgated under 

paragraph (1) shall take effect on the date that is one year after 

the promulgation date of the regulations. 

(c) PROHIBITION.—The Secretary of Energy shall not participate 

in or otherwise support any study or other project relating to a 

modification in the scope of the regulations enforceable by civil penalties under section 234A or 234C of the Atomic Energy Act of 1954, 

or the responsibility of the Secretary to implement and enforce such 

regulations, until after the date on which the regulations for such 

purposes under such section 234C take effect in accordance with 

subsection (b).

SEC. 3174. EXTENSION OF AUTHORITY TO APPOINT CERTAIN SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL. 

Section 3161(c)(1) of the National Defense Authorization Act for 

Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by striking 

‘‘September 30, 2002’’ and inserting ‘‘September 30, 2004’’.

SEC. 3175. ONE-YEAR EXTENSION OF PANEL TO ASSESS THE RELIABILITY, SAFETY, AND SECURITY OF THE UNITED STATES 

NUCLEAR STOCKPILE. 

Section 3159 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (42 U.S.C. 2121 note) is amended—

(1) in subsection (f), by striking ‘‘atomic energy defense activities’’ and inserting ‘‘the National Nuclear Security Administration’’; 

(2) in subsection (g), by striking ‘‘three years’’ and all that 

follows through the period at the end and inserting ‘‘April 1, 

2003.’’; and 

(3) by adding at the end the following new subsection: 

‘‘(i) FOLLOW-UP REPORT.—Not later than February 1, 2003, the 

panel shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a follow-up report assessing progress toward meeting the expectations set forth by the panel for the United States stockpile stewardship program, and making recommendations for corrective legislative action where progress has been unsatisfactory.’’.

SEC. 3176. REPORT ON STATUS OF ENVIRONMENTAL MANAGEMENT 

INITIATIVES TO ACCELERATE THE REDUCTION OF ENVIRONMENTAL RISKS AND CHALLENGES POSED BY THE 

LEGACY OF THE COLD WAR. 

(a) REPORT REQUIRED.—The Secretary of Energy shall prepare 

a report on the status of those environmental management initiatives specified in subsection (c) that are being undertaken to accelerate the reduction of the environmental risks and challenges that, 

as a result of the legacy of the Cold War, are faced by the Department of Energy, contractors of the Department, and applicable Federal and State agencies with regulatory jurisdiction. 

(b) CONTENTS.—The report shall include the following matters: 

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(1) A discussion of the progress made in reducing such 

risks and challenges in each of the following areas: 

(A) Acquisition strategy and contract management. 

(B) Regulatory agreements. 

(C) Interim storage and final disposal of high-level 

waste, spent nuclear fuel, transuranic waste, and low-level 

waste. 

(D) Closure and transfer of environmental remediation 

sites.

(E) Achievements in innovation by contractors of the 

Department with respect to accelerated risk reduction and 

cleanup. 

(F) Consolidation of special nuclear materials and improvements in safeguards and security. 

(2) An assessment of the progress made in streamlining 

risk reduction processes of the environmental management program of the Department. 

(3) An assessment of the progress made in improving the 

responsiveness and effectiveness of the environmental management program of the Department. 

(4) Any proposals for legislation that the Secretary considers necessary to carry out such initiatives, including the justification for each such proposal. 

(c) INITIATIVES COVERED.—The environmental management initiatives referred to in subsection (a) are the initiatives arising out 

of the report titled ‘‘Top-to-Bottom Review of the Environmental 

Management Program’’ and dated February 4, 2002, with respect to 

the environmental restoration and waste management activities of 

the Department of Energy in carrying out programs necessary for 

national security. 

(d) SUBMISSION OF REPORT.—On the date on which the budget 

justification materials in support of the Department of Energy budget for fiscal year 2004 (as submitted with the budget of the President 

under section 1105(a) of title 31, United States Code) are submitted 

to Congress, the Secretary shall submit to the congressional defense 

committees the report required by subsection (a).

Subtitle E—Disposition of Weapons-Usable 

Plutonium at Savannah River, South 

Carolina 

SEC. 3181. FINDINGS. 

Congress makes the following findings: 

(1) In September 2000, the United States and the Russian 

Federation signed a Plutonium Management and Disposition 

Agreement by which each agreed to dispose of 34 metric tons of 

weapons-grade plutonium. 

(2) The agreement with Russia is a significant step toward 

safeguarding nuclear materials and preventing their diversion 

to rogue states and terrorists. 

(3) The Department of Energy plans to dispose of 34 metric 

tons of weapons-grade plutonium in the United States before 

the end of 2019 by converting the plutonium to a mixed-oxide 

fuel to be used in commercial nuclear power reactors. 

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(4) The Department has formulated a plan for implementing the agreement with Russia through construction of a 

mixed-oxide fuel fabrication facility, the so-called MOX facility, 

and a pit disassembly and conversion facility at the Savannah 

River Site, Aiken, South Carolina. 

(5) The United States and the State of South Carolina have 

a compelling interest in the safe, proper, and efficient operation 

of the plutonium disposition facilities at the Savannah River 

Site. The MOX facility will also be economically beneficial to 

the State of South Carolina, and that economic benefit will not 

be fully realized unless the MOX facility is built. 

(6) The State of South Carolina desires to ensure that all 

plutonium transferred to the State of South Carolina is stored 

safely; that the full benefits of the MOX facility are realized as 

soon as possible; and, specifically, that all defense plutonium or 

defense plutonium materials transferred to the Savannah River 

Site either be processed or be removed expeditiously.

SEC. 3182. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT SAVANNAH RIVER SITE. 

(a) PLAN FOR CONSTRUCTION AND OPERATION OF MOX FACIL- ITY.—(1) Not later than February 1, 2003, the Secretary of Energy 

shall submit to Congress a plan for the construction and operation 

of the MOX facility at the Savannah River Site, Aiken, South Carolina. 

(2) The plan under paragraph (1) shall include— (A) a schedule for construction and operations so as to 

achieve, as of January 1, 2009, and thereafter, the MOX production objective, and to produce 1 metric ton of mixed-oxide 

fuel by December 31, 2009; and 

(B) a schedule of operations of the MOX facility designed 

so that 34 metric tons of defense plutonium and defense plutonium materials at the Savannah River Site will be processed 

into mixed-oxide fuel by January 1, 2019. 

(3)(A) Not later than February 15 each year, beginning in 2004 

and continuing for as long as the MOX facility is in use, the Secretary shall submit to Congress a report on the implementation of 

the plan required by paragraph (1). 

(B) Each report under subparagraph (A) for years before 2010 

shall include—

(i) an assessment of compliance with the schedules included 

with the plan under paragraph (2); and 

(ii) a certification by the Secretary whether or not the MOX 

production objective can be met by January 2009. 

(C) Each report under subparagraph (A) for years after 2009 

shall—

(i) address whether the MOX production objective has been 

met; and 

(ii) assess progress toward meeting the obligations of the 

United States under the Plutonium Management and Disposition Agreement. 

(D) Each report under subparagraph (A) for years after 2017 

shall also include an assessment of compliance with the MOX production objective and, if not in compliance, the plan of the Secretary 

for achieving one of the following: 

(i) Compliance with such objective. 

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(ii) Removal of all remaining defense plutonium and defense plutonium materials from the State of South Carolina. 

(b) CORRECTIVE ACTIONS.—(1) If a report under subsection 

(a)(3) indicates that construction or operation of the MOX facility is 

behind the applicable schedule under subsection (a)(2) by 12 months 

or more, the Secretary shall submit to Congress, not later than August 15 of the year in which such report is submitted, a plan for 

corrective actions to be implemented by the Secretary to ensure that 

the MOX facility project is capable of meeting the MOX production 

objective by January 1, 2009. 

(2) If a plan is submitted under paragraph (1) in any year after 

2008, the plan shall include corrective actions to be implemented by 

the Secretary to ensure that the MOX production objective is met. 

(3) Any plan for corrective actions under paragraph (1) or (2) 

shall include established milestones under such plan for achieving 

compliance with the MOX production objective. 

(4) If, before January 1, 2009, the Secretary determines that 

there is a substantial and material risk that the MOX production 

objective will not be achieved by 2009 because of a failure to achieve 

milestones set forth in the most recent corrective action plan under 

this subsection, the Secretary shall suspend further transfers of defense plutonium and defense plutonium materials to be processed by 

the MOX facility until such risk is addressed and the Secretary certifies that the MOX production objective can be met by 2009. 

(5) If, after January 1, 2009, the Secretary determines that the 

MOX production objective has not been achieved because of a failure 

to achieve milestones set forth in the most recent corrective action 

plan under this subsection, the Secretary shall suspend further 

transfers of defense plutonium and defense plutonium materials to 

be processed by the MOX facility until the Secretary certifies that 

the MOX production objective can be met. 

(6)(A) Upon making a determination under paragraph (4) or 

(5), the Secretary shall submit to Congress a report on the options 

for removing from the State of South Carolina an amount of defense 

plutonium or defense plutonium materials equal to the amount of 

defense plutonium or defense plutonium materials transferred to the 

State of South Carolina after April 15, 2002. 

(B) Each report under subparagraph (A) shall include an analysis of each option set forth in the report, including the cost and 

schedule for implementation of such option, and any requirements 

under the National Environmental Policy Act of 1969 (42 U.S.C. 

4321 et seq.) relating to consideration or selection of such option. 

(C) Upon submittal of a report under paragraph (A), the Secretary shall commence any analysis that may be required under the 

National Environmental Policy Act of 1969 in order to select among 

the options set forth in the report. 

(c) CONTINGENT REQUIREMENT FOR REMOVAL OF PLUTONIUM

AND MATERIALS FROM SAVANNAH RIVER SITE.—If the MOX production objective is not achieved as of January 1, 2009, the Secretary 

shall, consistent with the National Environmental Policy Act of 

1969 and other applicable laws, remove from the State of South 

Carolina, for storage or disposal elsewhere—

(1) not later than January 1, 2011, not less than 1 metric 

ton of defense plutonium or defense plutonium materials; and 

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(2) not later than January 1, 2017, an amount of defense 

plutonium or defense plutonium materials equal to the amount 

of defense plutonium or defense plutonium materials transferred to the Savannah River Site between April 15, 2002 and 

January 1, 2017, but not processed by the MOX facility. 

(d) ECONOMIC AND IMPACT ASSISTANCE.—(1) If the MOX production objective is not achieved as of January 1, 2011, the Secretary shall, from funds available to the Secretary, pay to the State 

of South Carolina each year beginning on or after that date through 

2016 for economic and impact assistance an amount equal to 

$1,000,000 per day, not to exceed $100,000,000 per year, until the 

later of—

(A) the date on which the MOX production objective is 

achieved in such year; or

(B) the date on which the Secretary has removed from the 

State of South Carolina in such year at least 1 metric ton of 

defense plutonium or defense plutonium materials. 

(2)(A) If, as of January 1, 2017, the MOX facility has not processed mixed-oxide fuel from defense plutonium and defense plutonium materials in the amount of not less than— (i) one metric ton, in each of any two consecutive calendar 

years; and 

(ii) three metric tons total, 

the Secretary shall, from funds available to the Secretary, pay to the 

State of South Carolina for economic and impact assistance an 

amount equal to $1,000,000 per day, not to exceed $100,000,000 per 

year, until the removal by the Secretary from the State of South 

Carolina of an amount of defense plutonium or defense plutonium 

materials equal to the amount of defense plutonium or defense plutonium materials transferred to the Savannah River Site between 

April 15, 2002, and January 1, 2017, but not processed by the MOX 

facility. 

(B) Nothing in this paragraph may be construed to terminate, 

supersede, or otherwise affect any other requirements of this section. 

(3) If the State of South Carolina obtains an injunction that 

prohibits the Department from taking any action necessary for the 

Department to meet any deadline specified by this subsection, that 

deadline shall be extended for a period of time equal to the period 

of time during which the injunction is in effect. 

(e) FAILURE TO COMPLETE PLANNED DISPOSITION PROGRAM.—

If on July 1 each year beginning in 2020 and continuing for as long 

as the MOX facility is in use, less than 34 metric tons of defense 

plutonium or defense plutonium materials have been processed by 

the MOX facility, the Secretary shall submit to Congress a plan 

for—

(1) completing the processing of 34 metric tons of defense 

plutonium and defense plutonium material by the MOX facility; 

or

(2) removing from the State of South Carolina an amount 

of defense plutonium or defense plutonium materials equal to 

the amount of defense plutonium or defense plutonium materials transferred to the Savannah River Site after April 15, 

2002, but not processed by the MOX facility. 

(f) REMOVAL OF MIXED-OXIDE FUEL UPON COMPLETION OF OPERATIONS OF MOX FACILITY.—If, one year after the date on which 

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operation of the MOX facility permanently ceases, any mixed-oxide 

fuel remains at the Savannah River Site, the Secretary shall submit 

to Congress— (1) a report on when such fuel will be transferred for use 

in commercial nuclear reactors; or 

(2) a plan for removing such fuel from the State of South 

Carolina. 

(g) DEFINITIONS.—In this section: 

(1) MOX PRODUCTION OBJECTIVE.—The term ‘‘MOX production objective’’ means production at the MOX facility of mixedoxide fuel from defense plutonium and defense plutonium materials at an average rate equivalent to not less than one metric 

ton of mixed-oxide fuel per year. The average rate shall be determined by measuring production at the MOX facility from the 

date the facility is declared operational to the Nuclear Regulatory Commission through the date of assessment. 

(2) MOX FACILITY.—The term ‘‘MOX facility’’ means the 

mixed-oxide fuel fabrication facility at the Savannah River Site, 

Aiken, South Carolina. 

(3) DEFENSE PLUTONIUM; DEFENSE PLUTONIUM MATE- RIALS.—The terms ‘‘defense plutonium’’ and ‘‘defense plutonium 

materials’’ mean weapons-usable plutonium.

SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND 

PLUTONIUM MATERIALS AT SAVANNAH RIVER SITE. 

(a) STUDY.—The Defense Nuclear Facilities Safety Board shall 

conduct a study of the adequacy of the K-Area Materials Storage facility (KAMS), and related support facilities such as Building 235– F, at the Savannah River Site, Aiken, South Carolina, for the storage of defense plutonium and defense plutonium materials in connection with the disposition program provided in section 3182 and 

in connection with the amended Record of Decision of the Department of Energy for fissile materials disposition. 

(b) REPORT.—Not later than one year after the date of the enactment of this Act, the Defense Nuclear Facilities Safety Board shall 

submit to Congress and the Secretary of Energy a report on the 

study conducted under subsection (a). 

(c) REPORT ELEMENTS.—The report under subsection (b) shall—

(1) address—

(A) the suitability of KAMS and related support facilities for monitoring and observing any defense plutonium or 

defense plutonium materials stored in KAMS; 

(B) the adequacy of the provisions made by the Department for remote monitoring of such defense plutonium and 

defense plutonium materials by way of sensors and for handling of retrieval of such defense plutonium and defense 

plutonium materials; and 

(C) the adequacy of KAMS should such defense plutonium and defense plutonium materials continue to be 

stored at KAMS after 2019; and 

(2) include such proposals as the Defense Nuclear Facilities 

Safety Board considers appropriate to enhance the safety, reliability, and functionality of KAMS. 

(d) REPORTS ON ACTIONS ON PROPOSALS.—Not later than 6 

months after the date on which the report under subsection (b) is 

submitted to Congress, and every year thereafter, the Secretary and 

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the Board shall each submit to Congress a report on the actions 

taken by the Secretary in response to the proposals, if any, included 

in the report.

TITLE XXXII—DEFENSE NUCLEAR 

FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION. 

There are authorized to be appropriated for fiscal year 2003, 

$19,000,000 for the operation of the Defense Nuclear Facilities Safety Board under chapter 21 of the Atomic Energy Act of 1954 (42 

U.S.C. 2286 et seq.).

TITLE XXXIII—NATIONAL DEFENSE 

STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 

FUNDS. 

(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 

2003, the National Defense Stockpile Manager may obligate up to 

$76,400,000 of the funds in the National Defense Stockpile Transaction Fund established under subsection (a) of section 9 of the 

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h) 

for the authorized uses of such funds under subsection (b)(2) of such 

section, including the disposal of hazardous materials that are environmentally sensitive. 

(b) ADDITIONAL OBLIGATIONS.—The National Defense Stockpile 

Manager may obligate amounts in excess of the amount specified in 

subsection (a) if the National Defense Stockpile Manager notifies 

Congress that extraordinary or emergency conditions necessitate the 

additional obligations. The National Defense Stockpile Manager 

may make the additional obligations described in the notification 

after the end of the 45-day period beginning on the date on which 

Congress receives the notification. 

(c) LIMITATIONS.—The authorities provided by this section shall 

be subject to such limitations as may be provided in appropriations 

Acts.

TITLE XXXIV—NAVAL PETROLEUM 

RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS. 

(a) AMOUNT.—There are hereby authorized to be appropriated 

to the Secretary of Energy $21,069,000 for fiscal year 2003 for the 

purpose of carrying out activities under chapter 641 of title 10, 

United States Code, relating to the naval petroleum reserves. 

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(b) PERIOD OF AVAILABILITY.—Funds appropriated pursuant to 

the authorization of appropriations in subsection (a) shall remain 

available until expended.

TITLE XXXV—MARITIME 

ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003. 

Sec. 3502. Authority to convey vessel USS SPHINX (ARL–24). 

Sec. 3503. Independent analysis of title XI insurance guarantee applications. 

Sec. 3504. Preparation as artificial reefs and scrapping of obsolete vessels.

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 

2003. 

Funds are hereby authorized to be appropriated for fiscal year 

2003, to be available without fiscal year limitation if so provided in 

appropriations Acts, for the use of the Department of Transportation 

for the Maritime Administration as follows: 

(1) For expenses necessary for operations and training activities, $93,132,000. 

(2) For expenses under the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936 (46 App. 

U.S.C. 1271 et seq.), $54,126,000, of which—

(A) $50,000,000 is for the cost (as defined in section 

502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 

661a(5))) of loan guarantees under the program; and 

(B) $4,126,000 is for administrative expenses related to 

loan guarantee commitments under the program.

(3) For expenses to dispose of obsolete vessels in the National Defense Reserve Fleet, including provision of assistance 

under section 7 of Public Law 92–402 (as amended by this 

title), $20,000,000. 

SEC. 3502. AUTHORITY TO CONVEY VESSEL USS SPHINX (ARL–24). 

(a) IN GENERAL.—Notwithstanding any other law, the Secretary 

of Transportation may convey the right, title, and interest of the 

United States Government in and to the vessel USS SPHINX (ARL–

24), to the Dunkirk Historical Lighthouse and Veterans Park Museum (a not-for-profit corporation, in this section referred to as the 

‘‘recipient’’) for use as a military museum, if—

(1) the recipient agrees to use the vessel as a nonprofit military museum; 

(2) the vessel is not used for commercial transportation purposes; 

(3) the recipient agrees to make the vessel available to the 

Government when the Secretary requires use of the vessel by the 

Government; 

(4) the recipient agrees that when the recipient no longer requires the vessel for use as a military museum—

(A) the recipient will, at the discretion of the Secretary, 

reconvey the vessel to the Government in good condition except for ordinary wear and tear; or 

(B) if the Board of Trustees of the recipient has decided 

to dissolve the recipient according to the laws of the State 

of New York, then—

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(i) the recipient shall distribute the vessel, as an 

asset of the recipient, to a person that has been determined exempt from taxation under the provisions of 

section 501(c)(3) of the Internal Revenue Code, or to the 

Federal Government or a State or local government for 

a public purpose; and 

(ii) the vessel shall be disposed of by a court of 

competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes 

as the court shall determine, or to such organizations 

as the court shall determine are organized exclusively 

for public purposes; 

(5) the recipient agrees to hold the Government harmless 

for any claims arising from exposure to asbestos, polychlorinated biphenyls, or lead paint after conveyance of the vessel, except for claims arising from use by the Government under 

paragraph (3) or (4); and 

(6) the recipient has available, for use to restore the vessel, 

in the form of cash, liquid assets, or a written loan commitment, financial resources of at least $100,000. 

(b) DELIVERY OF VESSEL.—If a conveyance is made under this 

section, the Secretary shall deliver the vessel at the place where the 

vessel is located on the date of enactment of this Act, in its present 

condition, and without cost to the Government. 

(c) OTHER UNNEEDED EQUIPMENT.—The Secretary may also 

convey any unneeded equipment from other vessels in the National 

Defense Reserve Fleet in order to restore the USS SPHINX (ARL–

24) to museum quality. 

(d) RETENTION OF VESSEL IN NDRF.—The Secretary shall retain in the National Defense Reserve Fleet the vessel authorized to 

be conveyed under subsection (a), until the earlier of—

(1) 2 years after the date of the enactment of this Act; or 

(2) the date of conveyance of the vessel under subsection (a).

SEC. 3503. INDEPENDENT ANALYSIS OF TITLE XI INSURANCE GUARANTEE APPLICATIONS. 

Section 1104A of the Merchant Marine Act, 1936 (46 App. 

U.S.C. 1274) is amended—

(1) by adding at the end of subsection (d) the following: 

‘‘(4) The Secretary may obtain independent analysis of an application for a guarantee or commitment to guarantee under this 

title.’’; and 

(2) in subsection (f) by inserting ‘‘(including for obtaining 

independent analysis under subsection (d)(4))’’ after 

‘‘applications for a guarantee’’.

SEC. 3504. PREPARATION AS ARTIFICIAL REEFS AND SCRAPPING OF 

OBSOLETE VESSELS. 

(a) FINANCIAL ASSISTANCE TO STATES FOR PREPARATION OF

TRANSFERRED OBSOLETE SHIPS FOR USE AS ARTIFICIAL REEFS.—(1) 

Public Law 92–402 (16 U.S.C. 1220 et seq.) is amended—

(A) by redesignating section 7 as section 8; and

(B) by inserting after section 6 the following new section 7: 

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‘‘SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE TRANSFERRED SHIP. 

‘‘(a) ASSISTANCE AUTHORIZED.—The Secretary, subject to the 

availability of appropriations, may provide, to any State to which 

an obsolete ship is transferred under this Act, financial assistance 

to prepare the ship for use as an artificial reef, including for—

‘‘(1) environmental remediation; 

‘‘(2) towing; and 

‘‘(3) sinking. 

‘‘(b) AMOUNT OF ASSISTANCE.—The Secretary shall determine 

the amount of assistance under this section with respect to an obsolete ship based on—

‘‘(1) the total amount available for providing assistance 

under this section; 

‘‘(2) the benefit achieved by providing assistance for that 

ship; and 

‘‘(3) the cost effectiveness of disposing of the ship by transfer 

under this Act and provision of assistance under this section, 

compared to other disposal options for that ship. 

‘‘(c) TERMS AND CONDITIONS.—The Secretary—

‘‘(1) shall require a State seeking assistance under this section to provide cost data and other information determined by 

the Secretary to be necessary to justify and document the assistance; and 

‘‘(2) may require a State receiving such assistance to comply 

with terms and conditions necessary to protect the environment 

and the interests of the United States.’’. 

(2) Section 4(4) of such Act (16 U.S.C. 1220a(4)) is amended by 

inserting ‘‘(except for any financial assistance provided under section 7)’’ after ‘‘at no cost to the Government’’. 

(b) ENVIRONMENTAL BEST MANAGEMENT PRACTICES FOR PREPARING VESSELS FOR USE AS ARTIFICIAL REEFS.—(1) Not later than 

September 30, 2003, the Secretary of Transportation, acting through 

the Maritime Administration, and the Administrator of the Environmental Protection Agency shall jointly develop environmental 

best management practices to be used in the preparation of vessels 

for use as artificial reefs. 

(2) The environmental best management practices under paragraph (1) shall be developed in consultation with the heads of other 

Federal agencies, and State agencies, having an interest in the use 

of vessels as artificial reefs. 

(3) The environmental best management practices under paragraph (1) shall—

(A) include practices for the preparation of vessels for use 

as artificial reefs to ensure that vessels so prepared will be environmentally sound in their use as artificial reefs; 

(B) ensure that such practices are consistent nationwide; 

(C) establish baselines for estimating the costs associated 

with the preparation of vessels for use as artificial reefs; and 

(D) include mechanisms to enhance the utility of the Artificial Reefing Program of the Maritime Administration as an option for the disposal of obsolete vessels. 

(4) The environmental best management practices developed 

under paragraph (1) shall serve as national guidelines to be used 

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by Federal agencies for the preparation of vessels for use as artificial reefs. 

(5) The Secretary of Transportation shall submit to Congress a 

report on the environmental best management practices developed 

under paragraph (1) through the existing ship disposal reporting requirements in section 3502 of Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public 

Law 106–398; 1654A–492). The report shall describe such practices, 

and may include such other matters as the Secretary considers appropriate. 

(c) PILOT PROGRAM ON EXPORT OF OBSOLETE VESSELS FOR DIS- MANTLEMENT AND RECYCLING.—(1)(A) The Secretary of Transportation, Secretary of State, and Administrator of the Environmental 

Protection Agency shall jointly carry out one or more pilot programs 

through the Maritime Administration to explore the feasibility and 

advisability of various alternatives for exporting obsolete vessels in 

the National Defense Reserve Fleet for purposes of the dismantlement and recycling of such vessels. 

(B) The pilot programs shall be carried out in accordance with 

applicable provisions of law and regulations. 

(2)(A) The pilot programs under paragraph (1) shall be carried 

out during fiscal year 2003. 

(B) The pilot programs shall include a total of not more than 

four vessels. 

(C) The authority provided by this subsection is in addition to 

any other authority available to Maritime Administration for exporting obsolete vessels in the National Defense Reserve Fleet. 

(3) Activities under the pilot programs under paragraph (1) 

shall include the following: 

(A) Exploration of the feasibility and advisability of a variety of alternatives (developed for purposes of the pilot programs) 

for exporting obsolete vessels in the National Defense Reserve 

Fleet for purposes of the dismantlement and recycling of such 

vessels. 

(B) Response by the Maritime Administration to proposals 

from the international ship recycling industry for innovative 

and cost-effective disposal solutions for obsolete vessels in the 

National Defense Reserve Fleet, including an evaluation of the 

feasibility and advisability of such proposals. 

(C) Demonstration of the extent to which the cost-effective 

dismantlement or recycling of obsolete vessels in the National 

Defense Reserve Fleet can be accomplished abroad in manner 

that appropriately addresses concerns regarding worker health 

and safety and the environment. 

(D) Opportunities to transfer abroad processes, methodologies, and technologies for ship dismantlement and recycling in 

order to support the pilot programs and to improve international practices and standards for ship dismantlement and 

recycling. 

(E) Exploration of cooperative efforts with foreign governments (under a global action program on ship recycling or other 

program) in order to foster economically and environmentally 

sound ship recycling abroad. 

(4) The Secretary of Transportation shall submit to Congress a 

report on the pilot programs under paragraph (1) through the existVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00324 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
301

ing ship disposal reporting requirements in section 3502 of Floyd D. 

Spence National Defense Authorization Act for Fiscal Year 2001. 

The report shall include a description of the activities under the 

pilot programs, and such recommendations for further legislative or 

administrative action as the Secretary considers appropriate. 

(d) CONSTRUCTION.—Nothing in this section shall be construed 

to establish a preference for the reefing or export of obsolete vessels 

in the National Defense Reserve Fleet over other alternatives available to the Secretary for the scrapping of such vessels under section 

3502(d)(3) of the Floyd D. Spence National Defense Authorization 

Act for Fiscal Year 2001.

TITLE XXXVI—ATOMIC ENERGY 

DEFENSE PROVISIONS

Sec. 3601. Short title. 

Subtitle A—[Reserved] 

Subtitle B—Department of Energy National Security Authorizations General 

Provisions 

Sec. 3620. Definitions. 

Sec. 3621. Reprogramming. 

Sec. 3622. Minor construction projects. 

Sec. 3623. Limits on construction projects. 

Sec. 3624. Fund transfer authority. 

Sec. 3625. Conceptual and construction design. 

Sec. 3626. Authority for emergency planning, design, and construction activities. 

Sec. 3627. Scope of authority to carry out plant projects. 

Sec. 3628. Availability of funds. 

Sec. 3629. Transfer of defense environmental management funds. 

Sec. 3630. Transfer of weapons activities funds. 

Sec. 3631. Funds available for all national security programs of the Department of 

Energy.

SEC. 3601. SHORT TITLE. 

This title may be cited as the ‘‘Atomic Energy Defense Act’’.

Subtitle A—[Reserved]

Subtitle B—Department of Energy National 

Security Authorizations General Provisions 

SEC. 3620. DEFINITIONS. 

In this subtitle: 

(1) The term ‘‘DOE national security authorization’’ means 

an authorization of appropriations for activities of the Department of Energy in carrying out programs necessary for national 

security. 

(2) The term ‘‘congressional defense committees’’ means— (A) the Committee on Armed Services and the Committee on Appropriations of the Senate; and 

(B) the Committee on Armed Services and the Committee on Appropriations of the House of Representatives.

(3) The term ‘‘minor construction threshold’’ means 

$5,000,000.

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SEC. 3621. REPROGRAMMING. 

(a) IN GENERAL.—Except as provided in subsection (b) and in 

sections 3629 and 3630, the Secretary of Energy may not use 

amounts appropriated pursuant to a DOE national security authorization for a program— (1) in amounts that exceed, in a fiscal year— (A) 115 percent of the amount authorized for that program by that authorization for that fiscal year; or (B) $5,000,000 more than the amount authorized for 

that program by that authorization for that fiscal year; or 

(2) which has not been presented to, or requested of, Congress. 

(b) EXCEPTION WHERE NOTICE-AND-WAIT GIVEN.—An action described in subsection (a) may be taken if— (1) the Secretary submits to the congressional defense committees a report referred to in subsection (c) with respect to such 

action; and 

(2) a period of 30 days has elapsed after the date on which 

such committees receive the report. 

(c) REPORT.—The report referred to in subsection (a) is a report 

containing a full and complete statement of the action proposed to 

be taken and the facts and circumstances relied upon in support of 

the proposed action. 

(d) COMPUTATION OF DAYS.—In the computation of the 30-day 

period under subsection (b), there shall be excluded any day on 

which either House of Congress is not in session because of an adjournment of more than three days to a day certain. 

(e) LIMITATIONS.— (1) TOTAL AMOUNT OBLIGATED.—In no event may the total 

amount of funds obligated pursuant to a DOE national security 

authorization for a fiscal year exceed the total amount authorized to be appropriated by that authorization for that fiscal 

year. 

(2) PROHIBITED ITEMS.—Funds appropriated pursuant to a 

DOE national security authorization may not be used for an 

item for which Congress has specifically denied funds.

SEC. 3622. MINOR CONSTRUCTION PROJECTS. 

(a) AUTHORITY.—Using operation and maintenance funds or facilities and infrastructure funds authorized by a DOE national security authorization, the Secretary of Energy may carry out minor 

construction projects. 

(b) ANNUAL REPORT.—The Secretary shall submit to the congressional defense committees on an annual basis a report on each 

exercise of the authority in subsection (a) during the preceding fiscal 

year. Each report shall provide a brief description of each minor 

construction project covered by the report. 

(c) COST VARIATION REPORTS TO CONGRESSIONAL COMMITTEES.—If, at any time during the construction of any minor construction project authorized by a DOE national security authorization, the estimated cost of the project is revised and the revised cost 

of the project exceeds the minor construction threshold, the Secretary 

shall immediately submit to the congressional defense committees a 

report explaining the reasons for the cost variation. 

(d) MINOR CONSTRUCTION PROJECT DEFINED.—In this section, 

the term ‘‘minor construction project’’ means any plant project not 

303

specifically authorized by law for which the approved total estimated cost does not exceed the minor construction threshold.

SEC. 3623. LIMITS ON CONSTRUCTION PROJECTS. 

(a) CONSTRUCTION COST CEILING.—Except as provided in subsection (b), construction on a construction project which is in support of national security programs of the Department of Energy and 

was authorized by a DOE national security authorization may not 

be started, and additional obligations in connection with the project 

above the total estimated cost may not be incurred, whenever the 

current estimated cost of the construction project exceeds by more 

than 25 percent the higher of—

(1) the amount authorized for the project; or 

(2) the amount of the total estimated cost for the project as 

shown in the most recent budget justification data submitted to 

Congress. 

(b) EXCEPTION WHERE NOTICE-AND-WAIT GIVEN.—An action described in subsection (a) may be taken if—

(1) the Secretary of Energy has submitted to the congressional defense committees a report on the actions and the circumstances making such action necessary; and 

(2) a period of 30 days has elapsed after the date on which 

the report is received by the committees. 

(c) COMPUTATION OF DAYS.—In the computation of the 30-day 

period under subsection (b), there shall be excluded any day on 

which either House of Congress is not in session because of an adjournment of more than three days to a day certain. 

(d) EXCEPTION FOR MINOR PROJECTS.—Subsection (a) does not 

apply to a construction project with a current estimated cost of less 

than the minor construction threshold.

SEC. 3624. FUND TRANSFER AUTHORITY. 

(a) TRANSFER TO OTHER FEDERAL AGENCIES.—The Secretary of 

Energy may transfer funds authorized to be appropriated to the Department of Energy pursuant to a DOE national security authorization to other Federal agencies for the performance of work for which 

the funds were authorized. Funds so transferred may be merged 

with and be available for the same purposes and for the same time 

period as the authorizations of the Federal agency to which the 

amounts are transferred. 

(b) TRANSFER WITHIN DEPARTMENT OF ENERGY.—

(1) TRANSFERS PERMITTED.—Subject to paragraph (2), the 

Secretary of Energy may transfer funds authorized to be appropriated to the Department of Energy pursuant to a DOE national security authorization to any other DOE national security 

authorization. Amounts of authorizations so transferred may be 

merged with and be available for the same purposes and for the 

same period as the authorization to which the amounts are 

transferred. 

(2) MAXIMUM AMOUNTS.—Not more than 5 percent of any 

such authorization may be transferred to another authorization 

under paragraph (1). No such authorization may be increased 

or decreased by more than 5 percent by a transfer under such 

paragraph. 

(c) LIMITATIONS.—The authority provided by this subsection to 

transfer authorizations—

304

(1) may be used only to provide funds for items relating to 

activities necessary for national security programs that have a 

higher priority than the items from which the funds are transferred; and 

(2) may not be used to provide funds for an item for which 

Congress has specifically denied funds. 

(d) NOTICE TO CONGRESS.—The Secretary of Energy shall 

promptly notify the congressional defense committees of any transfer 

of funds to or from any DOE national security authorization.

SEC. 3625. CONCEPTUAL AND CONSTRUCTION DESIGN. 

(a) CONCEPTUAL DESIGN.—

(1) REQUIREMENT.—Subject to paragraph (2) and except as 

provided in paragraph (3), before submitting to Congress a request for funds for a construction project that is in support of 

a national security program of the Department of Energy, the 

Secretary of Energy shall complete a conceptual design for that 

project. 

(2) REQUESTS FOR CONCEPTUAL DESIGN FUNDS.—If the estimated cost of completing a conceptual design for a construction 

project exceeds $3,000,000, the Secretary shall submit to Congress a request for funds for the conceptual design before submitting a request for funds for the construction project. 

(3) EXCEPTIONS.—The requirement in paragraph (1) does 

not apply to a request for funds—

(A) for a construction project the total estimated cost of 

which is less than the minor construction threshold; or 

(B) for emergency planning, design, and construction 

activities under section 3626. 

(b) CONSTRUCTION DESIGN.—

(1) AUTHORITY.—Within the amounts authorized by a DOE 

national security authorization, the Secretary may carry out 

construction design (including architectural and engineering 

services) in connection with any proposed construction project if 

the total estimated cost for such design does not exceed 

$600,000. 

(2) LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN

PROJECTS.—If the total estimated cost for construction design in 

connection with any construction project exceeds $600,000, 

funds for that design must be specifically authorized by law.

SEC. 3626. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 

CONSTRUCTION ACTIVITIES. 

(a) AUTHORITY.—The Secretary of Energy may use any funds 

available to the Department of Energy pursuant to a DOE national 

security authorization, including funds authorized to be appropriated for advance planning, engineering, and construction design, 

and for plant projects, to perform planning, design, and construction activities for any Department of Energy national security program construction project that, as determined by the Secretary, 

must proceed expeditiously in order to protect public health and 

safety, to meet the needs of national defense, or to protect property. 

(b) LIMITATION.—The Secretary may not exercise the authority 

under subsection (a) in the case of a construction project until the 

Secretary has submitted to the congressional defense committees a 

305

report on the activities that the Secretary intends to carry out under 

this section and the circumstances making those activities necessary. 

(c) SPECIFIC AUTHORITY.—The requirement of section 3625(b)(2) 

does not apply to emergency planning, design, and construction activities conducted under this section.

SEC. 3627. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS. 

In carrying out programs necessary for national security, the 

authority of the Secretary of Energy to carry out plant projects includes authority for maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of 

projects authorized in prior years, and land acquisition related 

thereto.

SEC. 3628. AVAILABILITY OF FUNDS. 

(a) IN GENERAL.—Except as provided in subsection (b), amounts 

appropriated pursuant to a DOE national security authorization for 

operation and maintenance or for plant projects may, when so specified in an appropriations Act, remain available until expended. 

(b) EXCEPTION FOR PROGRAM DIRECTION FUNDS.—Amounts appropriated for program direction pursuant to a DOE national security athorization for a fiscal year shall remain available to be obligated only until the end of that fiscal year.

SEC. 3629. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT 

FUNDS. 

(a) TRANSFER AUTHORITY FOR DEFENSE ENVIRONMENTAL MAN- AGEMENT FUNDS.—The Secretary of Energy shall provide the manager of each field office of the Department of Energy with the authority to transfer defense environmental management funds from a 

program or project under the jurisdiction of that office to another 

such program or project. 

(b) LIMITATIONS.— (1) NUMBER OF TRANSFERS.—Not more than one transfer 

may be made to or from any program or project under subsection (a) in a fiscal year. 

(2) AMOUNTS TRANSFERRED.—The amount transferred to or 

from a program or project in any one transfer under subsection 

(a) may not exceed $5,000,000. 

(3) DETERMINATION REQUIRED.—A transfer may not be carried out by a manager of a field office under subsection (a) unless the manager determines that the transfer is necessary—

(A) to address a risk to health, safety, or the environment; or 

(B) to assure the most efficient use of defense environmental management funds at the field office. 

(4) IMPERMISSIBLE USES.—Funds transferred pursuant to 

subsection (a) may not be used for an item for which Congress 

has specifically denied funds or for a new program or project 

that has not been authorized by Congress. 

(c) EXEMPTION FROM REPROGRAMMING REQUIREMENTS.—The 

requirements of section 3621 shall not apply to transfers of funds 

pursuant to subsection (a). 

(d) NOTIFICATION.—The Secretary, acting through the Assistant 

Secretary of Energy for Environmental Management, shall notify 

Congress of any transfer of funds pursuant to subsection (a) not 

later than 30 days after such transfer occurs. 

306

(e) DEFINITIONS.—In this section: 

(1) The term ‘‘program or project’’ means, with respect to a 

field office of the Department of Energy, a program or project 

that is for environmental restoration or waste management activities necessary for national security programs of the Department, that is being carried out by that office, and for which defense environmental management funds have been authorized 

and appropriated. 

(2) The term ‘‘defense environmental management funds’’ means funds appropriated to the Department of Energy pursuant to an authorization for carrying out environmental restoration and waste management activities necessary for national security programs.

SEC. 3630. TRANSFER OF WEAPONS ACTIVITIES FUNDS. 

(a) TRANSFER AUTHORITY FOR WEAPONS ACTIVITIES FUNDS.— The Secretary of Energy shall provide the manager of each field office of the Department of Energy with the authority to transfer 

weapons activities funds from a program or project under the jurisdiction of that office to another such program or project. 

(b) LIMITATIONS.— (1) NUMBER OF TRANSFERS.—Not more than one transfer 

may be made to or from any program or project under subsection (a) in a fiscal year. 

(2) AMOUNTS TRANSFERRED.—The amount transferred to or 

from a program or project in any one transfer under subsection 

(a) may not exceed $5,000,000. 

(3) DETERMINATION REQUIRED.—A transfer may not be carried out by a manager of a field office under subsection (a) unless the manager determines that the transfer— (A) is necessary to address a risk to health, safety, or 

the environment; or 

(B) will result in cost savings and efficiencies. 

(4) LIMITATION.—A transfer may not be carried out by a 

manager of a field office under subsection (a) to cover a cost 

overrun or scheduling delay for any program or project. 

(5) IMPERMISSIBLE USES.—Funds transferred pursuant to 

subsection (a) may not be used for an item for which Congress 

has specifically denied funds or for a new program or project 

that has not been authorized by Congress. 

(c) EXEMPTION FROM REPROGRAMMING REQUIREMENTS.—The 

requirements of section 3621 shall not apply to transfers of funds 

pursuant to subsection (a). 

(d) NOTIFICATION.—The Secretary, acting through the Administrator for Nuclear Security, shall notify Congress of any transfer of 

funds pursuant to subsection (a) not later than 30 days after such 

transfer occurs. 

(e) DEFINITIONS.—In this section: 

(1) The term ‘‘program or project’’ means, with respect to a 

field office of the Department of Energy, a program or project 

that is for weapons activities necessary for national security 

programs of the Department, that is being carried out by that 

office, and for which weapons activities funds have been authorized and appropriated. 

(2) The term ‘‘weapons activities funds’’ means funds appropriated to the Department of Energy pursuant to an authorizaVerDate 0ct 31 2002 23:04 Nov 16, 2002 Jkt 082705 PO 00000 Frm 00330 Fmt 6659 Sfmt 6603 E:\HR\OC\HR772.XXX HR772
307

tion for carrying out weapons activities necessary for national 

security programs.

SEC. 3631. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY. 

Subject to the provisions of appropriation Acts and section 

3621, amounts appropriated pursuant to a DOE national security 

authorization for management and support activities and for general plant projects are available for use, when necessary, in connection with all national security programs of the Department of Energy.

And the House agree to the same.

From the Committee on Armed Services, for consideration 

of the House amendment and the Senate amendment, and 

modifications committed to conference: 

BOB STUMP, 

DUNCAN HUNTER, 

JAMES V. HANSEN, 

CURT WELDON, 

JOEL HEFLEY, 

JIM SAXTON, 

JOHN M. MCHUGH, 

TERRY EVERETT, 

HOWARD P. ‘‘BUCK’’ MCKEON, 

J.C. WATTS, Jr., 

MAC THORNBERRY, 

JOHN N. HOSTETTLER, 

SAXBY CHAMBLISS, 

WALTER B. JONES, 

VAN HILLEARY, 

LINDSEY GRAHAM, 

IKE SKELTON, 

JOHN M. SPRATT, Jr., 

SOLOMON P. ORTIZ, 

LANE EVANS, 

MARTIN T. MEEHAN, 

ROBERT A. UNDERWOOD, 

THOMAS ALLEN, 

SILVESTRE REYES, 

JIM TURNER, 

ELLEN O. TAUSCHER, 

From the Permanent Select Committee on Intelligence, for 

consideration of matters within the jurisdiction of that 

committee under clause 11 of rule X: 

PORTER J. GOSS, 

DOUG BEREUTER,

From the Committee on Education and the Workforce, for 

consideration of secs. 341–343, and 366 of the House 

amendment, and secs. 331–333, 542, 656, 1064, and 1107 

of the Senate amendment, and modifications committed to 

conference: 

JOHNNY ISAKSON, 

JOE WILSON, 

GEORGE MILLER, 

308

From the Committee on Government Reform, for consideration of secs. 323, 804, 805, 1003, 1004, 1101–1106, 2811, 

and 2813 of the House amendment, and secs. 241, 654, 

817, 907, 1007–1009, 1061, 1101–1106, 2811, and 3173 of 

the Senate amendment, and modifications committed to 

conference: 

DAN BURTON, 

DAVE WELDON,

From the Committee on International Relations, for consideration of secs. 1201, 1202, 1204, title XIII, and sec. 

3142 of the House amendment, and subtitle A of title XII, 

secs. 1212–1216, 3136, 3151, and 3156–3161 of the Senate 

amendment, and modifications committed to conference: 

HENRY HYDE, 

BENJAMIN A. GILMAN, 

From the Committee on the Judiciary, for consideration of 

secs. 811 and 1033 of the House amendment, and secs. 

1067 and 1070 of the Senate amendment, and modifications committed to conference: 

LAMAR SMITH, 

From the Committee on Resources, for consideration of 

secs. 311, 312, 601, title XIV, secs 2821, 2832, 2841, and 

2863 of the House amendment, and secs. 601, 2821, 2823, 

2828, and 2841 of the Senate amendment, and modifications committed to conference: 

JOHN J. DUNCAN, Jr., 

From the Committee on Science, for consideration of secs. 

244, 246, 1216, 3155, 3163 of the Senate amendment, and 

modifications committed to conference: 

SHERWOOD L. BOEHLERT, 

NICK SMITH, 

RALPH M. HALL, 

From the Committee on Small Business for consideration 

of secs. 243, 824, and 829 of the Senate amendment, and 

modifications committed to conference: 

DONALD A. MANZULLO, 

SUE KELLY,

From the Committee on Transportation and Infrastructure, for consideration of sec. 601 of the House amendment, and secs. 601 and 1063 of the Senate amendment, 

and modifications committed to conference: 

DON YOUNG, 

FRANK A. LOBIONDO, 

CORRINE BROWN, 

From the Committee on Veterans’ Affairs, for consideration of secs. 641, 651, 721, 723, 724, 726, 727, and 728 

of the House amendment, and secs. 541 and 641 of the 

Senate amendment, and modifications committed to conference: 

CHRIS SMITH, 

Managers on the Part of the House.

CARL LEVIN, TED KENNEDY, ROBERT C. BYRD, 

309

JOSEPH I. LIEBERMAN, MAX CLELAND, MARY L. LANDRIEU, JACK REED, DANIEL K. AKAKA, BILL NELSON, BEN NELSON, JEAN CARNAHAN, MARK DAYTON, JEFF BINGAMAN, JOHN W. WARNER, STROM THURMOND, JOHN MCCAIN, JAMES M. INHOFE, PAT ROBERTS, JEFF SESSIONS, SUSAN COLLINS, JIM BUNNING, Managers on the Part of the Senate. 

(311)

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

CONFERENCE 

The managers on the part of the House and the Senate at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the House to the amendment of the Senate to the 

bill (H.R. 4546), to authorize appropriations for fiscal year 2003 for 

military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy to 

prescribe personnel strengths for such fiscal year for the Armed 

Forces, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of 

the action agreed upon by the managers and recommended in the 

accompanying conference report: 

The Senate amendment struck out all of the House bill after 

the enacting clause and inserted a substitute text. 

The House amendment struck out the matter proposed to be 

inserted by the Senate amendment and inserted a substitute text. 

The Senate recedes from its disagreement to the amendment 

of the House with an amendment which is a substitute for the 

House amendment and the Senate amendment. The differences between the Senate amendment, the House amendment, and the substitute agreed to in conference are noted below, except for clerical 

corrections, conforming changes made necessary by agreements 

reached by the conferees, and minor drafting and clarifying 

changes. 

SUMMARY STATEMENT OF CONFERENCE ACTIONS

The conferees recommend authorization of appropriations for 

fiscal year 2003 for the Department of Defense for procurement; research and development; test and evaluation; operation and maintenance; working capital funds; military construction and family 

housing; and for weapons and environmental restoration programs 

of the Department of Energy, that have a budget authority implication of $392.9 billion for the national defense function. 

This funding level represents a $3.5 billion reduction to the 

amounts requested by the President to reflect the proper accounting for civilian retirement and health benefits under current law. 

The administration’s budget included $3.5 billion in the national 

defense function as part of a governmentwide proposal for accrual 

funding that was not adopted by the committees of jurisdiction 

within Congress. This reduction of $3.5 billion is an accounting adjustment that does not reduce the amount of funding available for 

defense programs and would not result in any reduction in benefits 

for federal civilian employees of the Department of Defense or the 

Department of Energy. 

312

SUMMARY TABLE OF AUTHORIZATIONS

The defense authorization act provides authorizations for appropriations but does not generally provide budget authority. Budget authority is provided in appropriations acts. 

In order to relate the conference recommendations to the Budget Resolution, matters in addition to the dollar authorizations contained in this bill must be taken into account. A number of programs in the national defense function are authorized permanently 

or, in certain instances, authorized in other legislation. 

The following table summarizes authorizations included in the 

bill for fiscal year 2003 and, in addition, summarizes the implications of the conference action for the budget authority totals for national defense (budget function 050).

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CONGRESSIONAL DEFENSE COMMITTEES

The term ‘‘congressional defense committees’’ is often used in 

this statement of managers. It means the Defense Authorization 

and Appropriations Committees of the Senate and the House of 

Representatives. 

DIVISION A—DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I—PROCUREMENT

Procurement overview 

The budget request for fiscal year 2003 included an authorization of $68,917.9 million for Procurement for the Department of Defense. 

The House bill would authorize $75,298.6 million. 

The Senate amendment would authorize $73,101.0 million. 

The conferees recommend an authorization of $73,969.3 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice.

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Aircraft Procurement, Army—Overview 

The budget request for fiscal year 2003 included an authorization of $2,061.0 million for Aircraft Procurement, Army in the Department of Defense. 

The House bill would authorize $2,300.3 million. 

The Senate amendment would authorize $2,147.4 million. 

The conferees recommend an authorization of $2,186.3 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Missile Procurement, Army—Overview 

The budget request for fiscal year 2003 included an authorization of $1,642.3 million for Missile Procurement, Army in the Department of Defense. 

The House bill would authorize $1,758.9 million. 

The Senate amendment would authorize $1,653.2 million. 

The conferees recommend an authorization of $1,152.3 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Procurement of Weapons and Tracked Combat Vehicles, Army— Overview 

The budget request for fiscal year 2003 included an authorization of $2,248.6 million for Procurement of Weapons and Tracked 

Combat Vehicles, Army in the Department of Defense. 

The House bill would authorize $2,373.0 million. 

The Senate amendment would authorize $2,242.9 million. 

The conferees recommend an authorization of $2,276.8 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Procurement of Ammunition, Army—Overview 

The budget request for fiscal year 2003 included an authorization of $1,159.4 million for Procurement of Ammunition, Army in 

the Department of Defense. 

The House bill would authorize $1,320.0 million. 

The Senate amendment would authorize $1,205.5 million. 

The conferees recommend an authorization of $1,229.5 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Other Procurement, Army—Overview 

The budget request for fiscal year 2003 included an authorization of $5,168.5 million for Other Procurement, Army in the Department of Defense. 

The House bill would authorize $6,130.1 million. 

The Senate amendment would authorize $5,513.7 million. 

The conferees recommend an authorization of $5,857.8 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Chemical Agents and Munitions Destruction, Army—Overview 

The budget request for fiscal year 2003 included an authorization of $1,490.2 million for Chemical Agents & Munitions Destruction, Army in the Department of Defense. 

The House bill would authorize $1,490.2 million for Chemical 

Agents & Munitions Destruction, Defense. 

The Senate amendment would authorize $1,490.2 million for 

Chemical Agents & Munitions Destruction, Defense. 

The conferees recommend an authorization of $1,490.2 million 

for Chemical Agents & Munitions Destruction, Defense. Unless 

noted explicitly in the statement of managers, all changes are 

made without prejudice.

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Aircraft Procurement, Navy—Overview 

The budget request for fiscal year 2003 included an authoriza- tion of $8,204.0 million for Aircraft Procurement, Navy in the Department of Defense. The House bill would authorize $9,077.6 million. 

The Senate amendment would authorize $9,037.2 million. 

The conferees recommend an authorization of $8,979.3 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice. 

MV–22/CV–22 Osprey aircraft advance procurement 

The budget request included $60.3 million in advance procurement to support production of 13 MV–22 aircraft in fiscal year 2004 and $10.1 million in advance procurement to support production of 

two CV–22 aircraft in fiscal year 2004. 

The House bill would authorize the budget request. 

The Senate amendment would authorize a decrease of $9.2 

million in Aircraft Procurement, Navy and a decrease of $10.1 million in Aircraft Procurement, Air Force. These decreases reflect 

support for buying a total of 11 MV–22 aircraft and no CV–22 aircraft. 

Authorization of a maximum of 11 V–22 Osprey aircraft for fiscal year 2004 is consistent with section 123 of the National Defense 

Authorization Act for Fiscal Year 2002 (Public Law 107–107). That 

provision restricts production of the V–22 (MV–22 and CV–22) to 

the minimum sustaining production rate until the Secretary of Defense can make certain certifications to Congress. 

Given the V–22 schedule for testing, the Department of Defense has agreed that the maximum number of V–22 aircraft that 

it will be able to buy in fiscal year 2004 is 11. The Department of 

the Navy and the Department of the Air Force have asked, however, that Congress support buying nine MV–22 and two CV–22 

aircraft in fiscal year 2004. Therefore, the conferees agree to authorize a total of $41.0 million in Aircraft Procurement, Navy for advance procurement for 

nine MV–22 aircraft, a decrease of $19.3 million. The conferees 

agree to authorize the budget request for advance procurement 

supporting CV–22 aircraft. 

The conferees do not want support for buying CV–22 aircraft 

in fiscal year 2004 to be interpreted as any change in their views 

concerning the requirements in the National Defense Authorization 

Act for Fiscal Year 2002 (Public Law 107–107). Therefore, the conferees direct that no CV–22 Osprey aircraft be used for missions 

other than testing, training, or tactics development until that aircraft is in a configuration that has received the certifications required in the applicable parts of section 123 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107). 

T–45 training system 

The budget request included $221.8 million to purchase eight 

T–45C aircraft but included no funds for advance procurement to 

support T–45C aircraft procurement in fiscal year 2004. The projections in the Future Years Defense Program include no T–45 procurement beyond fiscal year 2003. 

364

The House bill would authorize an increase of $10.0 million for 

advance procurement to support fiscal year 2004 procurement. 

The Senate amendment would authorize the budget request. 

The conferees agree to authorize the budget request. 

The conferees understand that the Navy has stated a requirement for 234 T–45 aircraft. The Navy’s inventory, however, will 

total only 181 aircraft after delivery of the eight aircraft to be produced with fiscal year 2003 funds. 

The conferees understand that the Navy may be reconsidering 

the original decision to truncate production with the fiscal year 

2003 procurement. Absent a change in the requirement for additional T–45C aircraft to support training requirements of the Department of the Navy, the conferees believe that the Navy should 

continue to buy T–45 aircraft and its associated training systems. 

If the Navy decides to continue production, the conferees encourage the Department of the Navy to investigate options for acquiring additional systems in the manner most advantageous to 

the Government, to include adopting a multiyear procurement contracting strategy.

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Weapons Procurement, Navy—Overview 

The budget request for fiscal year 2003 included an authorization of $1,832.6 million for Weapons Procurement, Navy in the Department of Defense. 

The House bill would authorize $2,514.6 million. 

The Senate amendment would authorize $2,505.8 million. 

The conferees recommend an authorization of $2,375.3 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Procurement of Ammunition, Navy and Marine Corps—Overview 

The budget request for fiscal year 2003 included an authorization of $1,015.2 million for Procurement of Ammunition, Navy and 

Marine Corps in the Department of Defense. 

The House bill would authorize $1,200.1 million. 

The Senate amendment would authorize $1,173.2 million. 

The conferees recommend an authorization of $1,170.8 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Shipbuilding and Conversion, Navy—Overview 

The budget request for fiscal year 2003 included an authorization of $8,191.2 million for Shipbuilding and Conversion, Navy in 

the Department of Defense. 

The House bill would authorize $9,279.5 million. 

The Senate amendment would authorize $9,314.2 million. 

The conferees recommend an authorization of $9,111.0 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Other Procurement, Navy—Overview 

The budget request for fiscal year 2003 included an authorization of $4,347.0 million for Other Procurement, Navy in the Department of Defense. 

The House bill would authorize $4,527.8 million. 

The Senate amendment would authorize $4,514.5 million. 

The conferees recommend an authorization of $4,494.8 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Procurement, Marine Corps—Overview 

The budget request for fiscal year 2003 included an authorization of $1,288.4 million for Procurement, Marine Corps in the Department of Defense. 

The House bill would authorize $1,377.2 million. 

The Senate amendment would authorize $1,343.1 million. 

The conferees recommend an authorization of $1,355.5 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice. 

Batteries 

The budget request included no funding to replace batteries in 

the Marine Corps’ fleet of prepositioned equipment stored in Norway or aboard the Maritime Prepositioning Force ships. 

The House bill and the Senate amendment would support the 

budget request. 

The Marine Corps believes that the use of batteries with newer 

technology that would replace the current lead-acid batteries could 

help reduce total ownership costs for vehicles maintained in longterm storage. 

The conferees, therefore, agree to an increase of $3.0 million 

for batteries to be used for long-term storage applications.

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Aircraft Procurement, Air Force—Overview 

The budget request for fiscal year 2003 included an authorization of $12,067.4 million for Aircraft Procurement, Air Force in the 

Department of Defense. 

The House bill would authorize $12,737.3 million. 

The Senate amendment would authorize $12,611.7 million. 

The conferees recommend an authorization of $12,676.5 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice.

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Missile Procurement, Air Force—Overview 

The budget request for fiscal year 2003 included an authorization of $3,575.2 million for Missile Procurement, Air Force in the 

Department of Defense. 

The House bill would authorize $3,482.6 million. 

The Senate amendment would authorize $3,258.2 million. 

The conferees recommend an authorization of $3,504.1 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Procurement of Ammunition, Air Force—Overview 

The budget request for fiscal year 2003 included an authorization of $1,133.9 million for Procurement of Ammunition, Air Force 

in the Department of Defense. 

The House bill would authorize $1,294.8 million. 

The Senate amendment would authorize $1,275.9 million. 

The conferees recommend an authorization of $1,290.8 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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Other Procurement, Air Force—Overview 

The budget request for fiscal year 2003 included an authorization of $10,523.9 million for Other Procurement, Air Force in the 

Department of Defense. 

The House bill would authorize $10,918.5 million. 

The Senate amendment would authorize $10,478.8 million. 

The conferees recommend an authorization of $10,846.0 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice.

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Procurement, Defense-Wide—Overview 

The budget request for fiscal year 2003 included an authorization of $2,688.5 million for Procurement, Defense-Wide in the Department of Defense. 

The House bill would authorize $3,235.4 million. 

The Senate amendment would authorize $3,054.9 million. 

The conferees recommend an authorization of $3,691.6 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice. 

Advanced SEAL Delivery System 

The budget request included $21.8 million for the Advanced 

SEAL Delivery System (ASDS) procurement, $34.7 million for 

ASDS advance procurement, and $12.2 million in PE 1160404BB 

for ASDS research, development, test and evaluation (RDT&E). 

The House bill would authorize the budget request. 

The Senate amendment would authorize $27.3 million for 

ASDS procurement, no funds for ASDS advance procurement, and 

no funds in PE 1160404BB for ASDS RDT&E, but it would identify 

$13.7 million of unused fiscal year 2002 procurement funds to meet 

fiscal year 2003 RDT&E requirements. 

The conferees agree to authorize an increase of $2.0 million for 

ASDS procurement, no funds for ASDS advance procurement, and 

an increase of $9.6 million in PE 1160606BB for ASDS RDT&E. Of 

the $23.8 million authorized for ASDS procurement, the conferees 

agree that $12.0 million would cover the procurement of lithium 

ion batteries. The conferees have also included a provision (sec. 

214) that would transfer $13.7 million from the amount authorized 

and appropriated in fiscal year 2002 for ASDS advance procurement to the fiscal year 2003 ASDS RDT&E account. 

Subsequent to submission of the budget request and the passage of the House and Senate bills, the U.S. Special Operations 

Command (SOCOM) approved a restructuring of the ASDS program, and the conferees were informed of changed fiscal year 2003 

funding requirements through the submission of a Department of 

Defense Authorization appeal. The amounts authorized by the conferees support the SOCOM-approved, restructured program. 

The conferees believe that the ASDS program continues to require increased attention from the Commander in Chief, Special 

Operations Command; the Naval Sea Systems Command; and the 

Office of the Secretary of Defense. Accordingly, the conferees direct 

that no more than 50 percent of the fiscal year 2003 ASDS procurement funding (excluding the $12.0 million amount for the lithium 

ion batteries) be obligated until the Secretary of Defense conducts 

a complete review of the requirements, mission, management, and 

cost structure of the ASDS program and reports to the congressional defense committees on his findings.

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Chemical Agents and Munitions Destruction, Defense—Overview 

The budget request for fiscal year 2003 included an authorization of $1,490.2 million for Chemical Agents & Munitions Destruction, Army in the Department of Defense. 

The House bill would authorize $1,490.2 million for Chemical 

Agents & Munitions Destruction, Defense. 

The Senate amendment would authorize $1,490.2 million for 

Chemical Agents & Munitions Destruction, Defense. 

The conferees recommend an authorization of $1,490.2 million 

for Chemical Agents & Munitions Destruction, Defense. Unless 

noted explicitly in the statement of managers, all changes are 

made without prejudice.

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ITEMS OF SPECIAL INTEREST

Big Safari 

The conferees are aware that the Air Force’s Big Safari program office has contributed significantly to the Nation’s defense 

through flexible and dynamic management of programs, including 

the RC–135 Rivet Joint aircraft and the Predator unmanned aerial 

vehicle. 

The conferees, however, are concerned that the management 

realignments associated with Big Safari that have been implemented over the past 10 years may have resulted in a layering of 

review processes and extended acquisition cycles. The existence of 

several intervening headquarters and agencies, in some cases, 

could inhibit communication between senior Air Force leadership 

and those responsible for rapidly fielding innovative intelligence, 

surveillance and reconnaissance (ISR) systems. The conferees believe the Big Safari approach to streamlined acquisition of specialized ISR capabilities is important to the effective execution of the 

war on terrorism. The conferees, therefore, recommend that the 

Secretary of the Air Force consider reestablishing Big Safari as a 

special projects office reporting directly to the Assistant Secretary 

of the Air Force for Acquisition. 

Navy ship acquisition 

The conferees remain concerned about both the Department of 

Defense (DOD) and the Department of the Navy (DON) fiscal year 

2003 and previous budget requests for ship acquisition programs. 

This concern arises from many facts, among which are: 

(1) Numerous witnesses, both government and civilian, 

have testified on the requirement for increased Navy ship acquisition and the annual investment required to recapitalize 

the Navy’s fleet to meet the battle force ship force structure 

goals outlined in the most recent Quadrennial Defense Review; 

(2) Despite congressional documentation over a number of 

years that the Navy’s budget requests are insufficient to recapitalize the required fleet, the Department of Defense continues to submit long-range shipbuilding plans that are inadequate to carry out the missions assigned to the Navy in both 

the short and long-term; and 

(3) The Department of Defense has established a consistent pattern of putting a large number of ships in the latter 

years of the Future Years Defense Program (FYDP), instead of 

placing the annual number required in the budget year.

The conferees are also concerned about the manner in which 

DOD and the DON are interacting with Congress on these important issues. For example, DOD was very late in submitting two acquisition-related attack submarine reports. The late submission of 

these reports, which required a review of the long-term approach 

to the stated problem of the low number of attack submarines, 

made it difficult for Congress to evaluate the annual attack submarine acquisition request. The Department’s late or inadequate 

submission of congressionally mandated reports must be corrected. 

Absent more immediate investment, DOD will have to reduce 

the number or scope of missions assigned to Navy ships. Witnesses 

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have testified that, if neither course is incorporated in future Navy 

budget programs, the men and women of the Navy and the Marine 

Corps will bear the burden of these decisions through some combination of longer deployments and less time at home between deployments. The conferees believe that concrete evidence has been 

presented to demonstrate that these burdens will result in lower 

retention, less training, and eventually undermanned ships at sea. 

In many instances, the overall Department of Defense ship acquisition message is confused. The conferees believe that DOD has 

provided only lukewarm support for the acquisition of new ships to 

modernize the Navy. Despite a sizeable increase in the fiscal year 

2003 budget for national defense, the number of ships in the new 

construction shipbuilding account has declined from the level 

planned in the last FYDP. The conferees also believe that the DON 

shares blame for this confusion because it has been inconsistent in 

its description of force structure requirements. This situation 

makes it appear as if the Navy has not fully evaluated the longterm implications of its annual budget requests. Because it is difficult for Congress to dramatically adjust the course set in a budget 

request, the departments must consider the long-term implications 

of their annual budget requests. 

Other, more specific situations inform the conferees’ conclusions, as noted below. 

(1) DOD and DON witnesses have consistently testified 

over a number of years that the DON hopes to make reductions in operating and support costs and reallocate those funds 

for necessary shipbuilding investments. The conferees believe 

that sufficient evidence has accumulated over a number of 

years to conclude that the Navy’s hopes of harvesting operating 

and support funds sufficient to recapitalize the fleet are misplaced. 

(2) The size of the Navy has been steadily declining, with 

no apparent solution to halt the decline. Despite this fact, the 

DON has continued to retire mission-capable ships before the 

end of their useful service lives. While this action will achieve 

modest, short-term operating and support cost savings, the 

conferees believe that this situation reveals that the DON is focusing too narrowly on near-term exigencies. Retiring ships 

earlier than planned merely adds to the size of the acquisition 

‘‘bow wave’’ that may already be reaching insurmountable proportions. Accordingly, the conferees further believe that the nation can ill afford to make a 30-year investment in a ship acquisition and then receive less than 30 years from that investment. If the DON continues making these early retirements, 

the Navy may only achieve short-term savings at the expense 

of preserving the capability to maintain the level of forward 

presence and crisis response that is presumed in the most recent Quadrennial Defense Review. 

(3) The Navy has occasionally invoked an argument that 

a smaller number of more capable ships can do the same job 

as a greater number of ships with less capability. While the 

conferees recognize that the Navy buys new ships with increased capability as a response to the evolving threat, the conferees believe that the number of ships required to carry out 

450

the presence mission has not diminished from those stated in 

the two previous Quadrennial Defense Reviews. 

(4) Placing additional ship acquisition requirements on an 

underfunded ship acquisition program has exacerbated the 

budget pressure on the ship acquisition account. The number 

of ships required to execute the national military strategy 

should be fully funded and should take priority over new ship 

acquisition programs that have not been fully vetted. The 

Navy’s tendency to create new ship program requests during 

the congressional budget review period indicates a lack of planning, analysis, and foresight. This practice generates questions 

about the validity of the entire request and disrupts support 

for programs budgeted to meet validated requirements. 

(5) The conferees note that the DON submitted a report to 

Congress on the most efficient plan for buying the ships in the 

long-range shipbuilding plan, but despite its own analysis, the 

Navy subsequently submitted a budget request that did not include those efficiencies. Consequently, the conferees believe 

that the Navy’s acquisition strategy has resulted in higher unit 

prices, ultimately resulting in a smaller number of ships procured for the available funding. 

(6) DOD has conducted additional reviews, performed multiple analyses, and produced numerous reports on ship acquisition programs. These additional reviews, while arriving at the 

same conclusions as previous analyses, have been used as 

means to delay ship requirements validations and acquisition 

increases to meet those requirements. The conferees believe 

that these postponements put added pressure on the Navy’s 

new construction shipbuilding account and increase the slope 

of the acquisition ‘‘mountain’’ facing the Navy. 

(7) The conferees perceive that DOD lacks a commitment 

to buy the number and type of ships required to carry out the 

full range of Navy missions without redundancy. The DON has 

proposed to buy more ships than the stated requirement in 

some classes, while not requesting sufficient new hulls in other 

classes that fall short of the stated requirement. Additionally, 

the conferees believe that the cost of ships will not be reduced 

by continually changing the number of ships in acquisition programs or by frequently changing the configuration and capability of those ships, all frequent attributes of recent DON 

shipbuilding plans. The conferees intend to scrutinize closely 

proposals for ships that would only yield marginal improvements in any mission area already inherent in the fleet. 

(8) The conferees note that the Navy has testified that personnel and maintenance comprise the largest cost in the total 

acquisition and life-cycle costs, yet the DON is not taking deliberate steps to buy ships that would require smaller crews 

and would operate with lower maintenance costs. Some ships 

are being designed to achieve significant manpower life-cycle 

savings, but the DON has delayed their acquisition and reduced their numbers. Consequently, the conferees believe that 

these delays will result in a more expensive future force than 

need be. 

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(9) Although some programs, such as the DD(X) destroyer, 

aim to reach significant manpower reduction goals, the DON 

is not identifying reasonable goals for other major ship programs in the FYDP. Despite DON testimony that manpower 

reduction goals are very important, a General Accounting Office (GAO) review of existing and future ship programs informs 

that most of those programs do not include human systems integration (HSI) in the operational requirements documents. 

GAO further concluded that research shows HSI has great potential for minimizing the costs of manning, thereby reducing 

total ownership costs. Accordingly, the conferees believe that 

the DON must institutionalize the process by which they will 

reach their goal of an effective Navy in the future at reduced 

total life-cycle costs. 

The conferees strongly recommend that the Navy design ship 

acquisition programs to take advantage of the best acquisition 

strategies that have been identified in the Navy’s own reports as 

leading to the greatest cost savings. These include multiyear procurement, block buy of long lead materials and configuration stability for blocks of ships. The conferees further recommend that, 

once structured, the DON submit fully vetted and supported programs for acquisition and not change course in the middle of the 

process. Congress fully supports a strong Navy and Marine Corps 

team as indispensable to the national defense. DOD and the DON 

bear a significant responsibility for correcting the deficiencies noted 

above. 

Cryptographic equipment modernization 

The conferees believe that the National Security Agency is 

making substantial progress in developing modern cryptographic 

equipment and materials. The conferees, however, fail to see evidence that the services are programming sufficient resources for 

cryptographic modernization procurement. The conferees expect the 

services to make better progress in addressing this problem by providing adequate procurement funding in future budget submissions. 

Signals intelligence architecture 

The Assistant Secretary of Defense for Command, Control, 

Communications, and Intelligence (ASD (C3I)) has the responsibility to provide guidance and oversight with respect to policy for 

all aspects of information exchange networks and to all Department of Defense components. The ASD (C3I) is also responsible for 

providing guidance for data information and storage systems and 

their standardization to ensure service interoperability. The conferees recognize that the National Security Agency (NSA) has an 

important role in supporting this ASD (C3I) responsibility in the 

area of developing standards for signals intelligence (SIGINT) architecture for the Department of Defense. 

The conferees addressed airborne SIGINT architecture issues 

in the statement of managers (H. Rept. 107–333) accompanying the 

National Defense Authorization Act for Fiscal Year 2002 (Public 

Law 107–107). The conferees encouraged the ASD (C3I) to develop 

an architectural plan to provide standards-based policy direction to 

452

the services, whose platform program offices can develop systems, 

and, to the maximum extent possible, share developments. The 

statement of managers expressed the expectation that the plan 

should include: (1) a robust spiral development approach; and (2) 

adequate emphasis on fielding and modernizing the appropriate 

ground support infrastructure. 

The conferees have been unable to detect progress within the 

Department on such an effort. The ASD(C3I) and the Director of 

the NSA have not been able to develop and field a cohesive SIGINT 

architecture with the necessary technical standards. In addition, 

the conferees can find no evidence that the leadership in either organization has provided sufficient support for establishing an organizational framework for coordinating their own organizational activities or for providing the cross-service oversight of joint intelligence surveillance and reconnaissance (ISR) SIGINT activities, 

particularly when it comes to information-sharing, routing, and access. 

Therefore, the conferees direct the ASD (C3I) to provide a report to the congressional defense and intelligence committees by 

May 30, 2003, on progress he is making in developing standards 

for SIGINT architecture for the Department of Defense. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Authorization of Appropriations 

Authorization of appropriations (secs. 101–107) 

The House bill contained provisions (secs. 101–107) that would 

authorize the recommended fiscal year 2003 funding levels for procurement for the Army, Navy, Marine Corps, Air Force, DefenseWide activities, Defense Inspector General, Chemical Demilitarization Program, and Defense Health Program. 

The Senate amendment contained similar provisions (secs. 

101–107). 

The conference agreement includes these provisions. 

Chemical Agents and Munitions Destruction, Defense (sec. 106) 

The House bill contained a provision (sec. 106) that would authorize $1.5 billion, the amount included in the budget request, for 

the destruction of chemical agents, munitions, and materiel. 

The Senate amendment contained a similar provision (sec. 106) 

that would authorize the requested amount for chemical demilitarization in a Defense Department account, in accordance with 

section 1521(f) of title 50, United States Code. 

The House recedes. 

The conferees are disappointed that the Department of Defense 

requested funds for chemical demilitarization for fiscal year 2003 

in an Army budget account, contrary to the requirements of law. 

Section 1521(f) of title 50, United States Code requires that funds 

for this program shall not be included in the budget accounts for 

any military department. The conferees expect the Department to 

comply with the law in future budget requests and therefore have 

approved a separate provision, described elsewhere in this report, 

concerning the budget submission. 

453

Subtitle B—Army Programs 

Pilot program on sales of manufactured articles and services of certain Army industrial facilities without regard to availability 

from domestic sources (sec. 111) 

The Senate amendment contained a provision (sec. 111) that 

would extend the authorization for Army industrial facilities to sell 

articles and services to commercial contractors providing weapon 

systems to the Department of Defense through fiscal year 2004. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Report on impact of Army aviation modernization plan on the Army 

National Guard (sec. 112) 

The House bill contained a provision (sec. 145) that would require the Chief of the National Guard Bureau to submit to the congressional defense committees a report on the requirements for 

Army National Guard aviation, including an analysis of the impact 

of the Army Aviation Modernization Plan on the Army National 

Guard. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Chief of the National Guard Bureau to submit the report through 

the Army Chief of Staff for any comments and recommendations he 

considers appropriate before he forwards the report to the Committees on Armed Services of the Senate and House of Representatives. The conferees expect the report to include an analysis of the 

impact of the Army Aviation Modernization Plan on Army National 

Guard homeland security search and rescue, MEDEVAC, and state 

emergency missions. 

Family of Medium Tactical Vehicles (sec. 113) 

The conferees agree to include a provision that would provide 

the Army multiyear procurement (MYP) authority for the procurement of the Family of Medium Tactical Vehicles (FMTV). 

The budget request included $681.4 million to procure the 

FMTV to replace the Army’s aging fleet of medium tactical vehicles. The FMTV is a complete series of trucks and trailers based 

on a common chassis, varied by payload and mission. In the fiscal 

year 2003 budget request, the Army intends to buy 2,572 FMTV A1 

models through the option clause of the current sole-source 

multiyear contract and 1,002 FMTV A1 competitive rebuy (CR) 

models through the first year of a ‘‘competitive rebuy’’ multiyear 

contract scheduled for award in March 2003. 

The Army failed to request multiyear procurement authority 

for the FMTV A1 CR until after both houses of Congress had acted 

on their respective National Defense Authorization Bills for Fiscal 

Year 2003. 

The conferees note that the Army has had technical problems 

with previous versions of the FMTV. Therefore, the conferees agree 

that the Secretary of the Army may not enter into a multiyear contract until the Secretary certifies to the congressional defense committees that the FMTV A1 CR models meet all key performance 

parameters required in the initial operational test and evaluation. 

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The conferees also note that the Army estimates a $222.0 million cost savings (6.5 percent of the contract value) using a fiveyear multiyear procurement contract for the FMTV A1 CR over 

that of annual buys, for the same period of time. The conferees believe that the Army can achieve at least a 10 percent cost savings 

when both multiyear procurement authority and competition are 

factored into cost estimates. Therefore, the conferees agree that the 

Secretary of the Army may not enter into a MYP contract until he 

certifies that the total cost of the procurement of the FMTV A1 CR 

under the program over five fiscal years using MYP contracting authority is estimated to be at least 10 percent less than the estimated total cost of the procurement of FMTV A1 CR over the same 

five-year period through the use of successive one-year contracts. 

The Secretary of Defense may waive this limitation if he determines that the procurement of vehicles using a MYP contract is in 

the national security interests of the United States; certifies that 

the Army cannot achieve a 10 percent cost savings; and submits to 

the congressional defense committees, in writing, a notification of 

the waiver together with a report outlining the reasons why the 

use of a MYP contract is in the national security interests of the 

United States and reasons why the Army cannot achieve a 10 per 

cent savings of the total anticipated costs of carrying out the program through a MYP contract. 

Subtitle C—Navy Programs 

Extension of multiyear procurement authority for DDG–51 class destroyers (sec. 121) 

The Senate amendment contained a provision (sec. 122) that 

would authorize an extension, through fiscal year 2007, of the 

multiyear procurement authority for Arleigh Burke-class (DDG–51) 

destroyers. 

The House bill contained no similar provision. 

The House recedes. 

Sense of Congress on scope of conversion program for Ticonderogaclass cruisers (sec. 122) 

The Senate amendment contained a provision (sec. 123) that 

would state that the Secretary of the Navy should maintain the 

scope of the cruiser conversion program to cover all 27 Ticonderogaclass cruisers with an appropriate mix of modernization upgrades. 

The House bill contained no similar provision. 

The House recedes with an amendment making the scope of 

cruiser conversion a sense of Congress. 

Continuation of contract for operation of Champion-class T–5 fuel 

tanker vessels (sec. 123) 

The House bill contained a provision (sec. 112) that would prohibit the Navy’s requested acquisition of Champion-class T–5 fuel 

tanker ships. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would permit the 

Navy to acquire the vessels. The amended provision would require 

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sel until the end of the current contract, or until the Navy or Military Sealift Command is no longer using the vessel, whichever is 

earlier. 

Subtitle D—Air Force Programs 

Multiyear procurement authority for C–130J aircraft program (sec. 

131) 

The House bill contained a provision (sec. 121) that would authorize the Secretary of the Air Force to enter into a multiyear contract 30 days after the Secretary of Defense has submitted a certification that the C–130J program is making satisfactory progress toward a successful operational test and evaluation. 

The Senate amendment contained a similar provision (sec. 131) 

that would authorize the Secretary of the Air Force to enter into 

a multiyear contract that could extend for six program years, subject to the program’s having been cleared for worldwide over-water 

capability.

The conferees agree to a provision that would authorize the 

Secretary of the Air Force to enter into a multiyear contract that 

could extend for six program years, subject to the program’s having 

completed qualification for air assault operations and installation 

of certain software upgrades. 

Pathfinder programs (sec. 132) 

The Senate amendment contained a provision (sec. 132) that 

would require: (a) the Secretary of the Air Force to submit to Congress a list of Air Force programs designated as acquisition reform 

pathfinder programs by February 1, 2003; (b) approval or disapproval of the spiral development plans associated with these 

pathfinder programs by the Secretary of Defense; and (c) assessments by the Under Secretary of Defense (Comptroller), the Under 

Secretary of Defense for Acquisition, Technology, and Logistics, the 

Director of Operational Test and Evaluation, and the Joint Requirements Oversight Council of those pathfinder programs that 

were not chosen to be spiral development programs. Spiral development programs are covered by another Senate provision (sec. 803). 

The House bill contained no similar provision. 

The conferees agree that Congress needs a further understanding of the Department of Defense plans for pathfinder programs, as well as information on lessons learned from pathfinder 

programs that could be applied to other programs. The conferees 

also agree that appropriate oversight should be maintained over 

such programs. 

Therefore, the House recedes with an amendment that would 

require the Secretary of the Air Force to submit a list of Air Force 

programs designated as pathfinder programs by February 1, 2003, 

and would require the Secretary of Defense to ensure that the Undersecretary of Defense for Acquisition, Technology, and Logistics, 

the Director of Operational Test and Evaluation, and the Joint Requirements Oversight Council maintain oversight of each pathfinder program. The amendment would also require the Secretary 

of the Air Force to submit to Congress by March 15, 2003, a report 

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zations will be accomplished, as well as the management, acquisition, and test and evaluation plans for each pathfinder program. 

The report would also contain a description of any innovative business practices that could be applied to other programs. The amendment would not exempt Air Force pathfinder programs from the requirements for spiral development programs specified in section 

803. 

Leases for tanker aircraft under multiyear aircraft-lease pilot program (sec. 133)

The Senate amendment contained a provision (sec. 134) which 

would require that the Secretary of the Air Force not enter into 

any lease for tanker aircraft until: (1) he has submitted the report 

required by Section 8159 of the Department of Defense Appropriations Act for Fiscal Year 2002 (Public Law 107–117); and (2) he has 

obtained authorization and appropriation of funds necessary to 

enter a lease for such aircraft, in accordance with his publicly stated commitments to Congress. 

The House bill contained no similar provision. 

The House recedes with an amendment that would clarify that 

the Secretary may not enter into such a lease until the Secretary 

either: (1) obtains authorization and appropriation of needed funds; 

or (2) submits a new start reprogramming notification to the congressional defense committees. The Secretary of the Air Force informed the Committee on Armed Services of the Senate February 

12, 2002, that he would not take any action on tanker leasing proposals without first coming to both the authorization and the appropriations committees to have money authorized and appropriated or reprogrammed for these purposes. The conferees expect 

that the Secretary will live up to this commitment, regardless of 

whether the request for funds is submitted through the normal 

budget deliberation process or through established procedures observed in the reprogramming process. 

Subtitle E—Other Programs 

Destruction of existing stockpile of lethal chemical agents and munitions (sec. 141) 

The House bill contained a provision (sec. 143) that would require that the chemical demilitarization program be managed as a 

major defense acquisition program. It would also require that the 

Under Secretary of Defense (Comptroller) provide an annual certification that the budget request for the chemical agents and munitions destruction program has been submitted in compliance with 

applicable Federal laws. 

The Senate amendment contained no similar provision. 

The Senate recedes with a clarifying amendment that would 

specify that the Comptroller certify that the budget request has 

been submitted in accordance with section 1412 of the Department 

of Defense Authorization Act for 1986 (Public Law 99–145). 

Section 1521(f) of title 50, United States Code requires that 

funds for the chemical demilitarization program, including those 

for military construction, ‘‘shall be set forth in the budget of the 

Department of Defense for any fiscal year as a separate account. 

457

Such funds shall not be included in the budget accounts for any 

military department.’’ The Department of Defense submitted the 

fiscal year 2003 budget request for chemical demilitarization in an 

Army account, contrary to the law. The conferees expect the Department to comply with the law in future budget requests by submitting the budget request for chemical agents and munitions destruction in a Department of Defense account. This certification 

provision is intended to help ensure such compliance. 

Report on unmanned aerial vehicle systems (sec. 142) 

The House bill contained a provision (sec. 144) that would require the Secretary of Defense to submit a report to Congress on 

unmanned aerial vehicle (UAV) systems. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

report to describe the process by which the Department will ensure 

that any UAV program proceeding past the science and technology 

stage does so only as part of an integrated, overall Office of the 

Secretary of Defense strategy for UAV acquisition. 

The conferees support the Department’s plans to procure and 

field a substantial number of UAVs starting in fiscal year 2003. 

However, the conferees also want to ensure that UAV systems are 

appropriately integrated into an overall departmental strategy that 

will minimize redundancy and maximize commonality. 

Global Information Grid system (sec. 143) 

The House bill contained a provision (sec. 1527) that would 

prohibit the obligation of funds for the Global Information Grid 

(GIG) system until the Secretary of Defense certifies to the congressional defense committees that the system is secure and protected 

from unauthorized access. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that prohibits the obligation of funds for the GIG until the Secretary of Defense submits 

a plan to ensure that, as part of bandwidth expansion efforts, the 

information transmitted within the system is secure and protected. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Compass Call program 

The Senate amendment contained a provision (sec. 135) that 

would shift $12.7 million in Compass Call aircraft modifications 

from the Defense Airborne Reconnaissance Program line to the 

Classified Projects line.

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Integrated bridge system 

The Senate amendment contained a provision (sec. 121) that 

would authorize $5.0 million for the integrated bridge system. 

The House bill contained no similar provision. 

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The Senate recedes on the provision. By convention, outcomes 

of funding differences between the House bill and the Senate 

amendment are included in the tables elsewhere in this report. 

Marine Corps live fire range improvements 

The Senate amendment contained a provision (sec. 124) that 

would authorize $1.9 million for various improvements in live fire 

training ranges of the Marine Corps. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Mobile emergency broadband system 

The Senate amendment contained a provision (sec. 137) that 

would authorize $1.0 million to buy technical communications-electronics equipment for the emergency mobile broadband system. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Reallocation of certain funds for Air Force Reserve Command F–16 

aircraft procurement 

The House bill contained a provision (sec. 122) that would authorize $14.4 million for the 36 Litening II modernization upgrade 

kits for the F–16 block 25 and block 30 aircraft (rather than for 

Litening AT pods for such aircraft). 

The Senate amendment contained no similar provision. 

The House recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Shipbuilding initiative 

The House bill contained a provision (sec. 111) that would authorize an additional $810.0 million for shipbuilding programs. 

The section would provide that if the Virginia-class prime contractor were to reach an agreement with the Government as of the 

date of enactment of this bill to spend at least $385.0 million for 

the Virginia-class submarine program from its own funds, then the 

provision would authorize: (1) an additional $810.0 million for an 

additional Arleigh Burke-class (DDG–51) destroyer; and (2) 

multiyear procurement for Virginia-class submarines, commencing 

in fiscal year 2003. 

If such an agreement were not reached, the provision would 

authorize the following: 

(1) $415.0 million for Virginia-class submarine advance 

procurement; 

(2) $210.0 million for cruiser conversion advance procurement; and 

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(3) $185.0 million for a nuclear attack submarine refueling 

overhaul. 

The Senate amendment contained no similar provision. 

The House recedes.

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Research, Development, Test, and Evaluation overview 

The budget request for fiscal year 2003 included an authorization of $53,924.2 million for Research and Development for the Department of Defense. 

The House bill would authorize $56,816.6 million. 

The Senate amendment would authorize $55,751.4 million. 

The conferees recommend an authorization of $56,777.4 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice. 

Department of Defense science and technology funding 

The budget request contained $10,009.2 million for defense 

science and technology, including all defense-wide and military 

service funding for basic research, applied research, and advanced 

technology development. To address the conferees’ concerns with 

respect to critical shortcomings in the budget request, the conferees 

recommend an authorization of $10,384.7 million, an increase of 

$375.5 million for the defense science and technology (S&T) program. 

The conferees note that the budget request represents an increase of $1231.4 million, or 14.0 percent above the amount requested for the fiscal year 2002 budget, and 2.7 percent of the 

budget request. The conferees also note that the amount in the 

budget request for science and technology is an increase of $132.0 

million from the amount provided by Congress for fiscal year 2002. 

However, the Army and Navy science and technology accounts each 

decreased more than 21 percent (nearly $400 million each). 

The conferees view defense science and technology investments 

as critical to maintaining U.S. military technological superiority in 

the face of growing and changing threats to national security interests around the world, and believe that both the defense agencies 

and the military departments have vital roles in the Department’s 

science and technology investment strategy. Although pleased with 

the overall progress in the defense science and technology program, 

the conferees continue to be disturbed by the continuing trend of 

overall reduction in the military departments’ science and technology programs and the effect of that trend on the critical role 

that the military departments play in the transition of science and 

technology into acquisition programs. 

The conferees note the finding of the Defense Science Board 

Letter Report on the Department of Defense Science and Technology Program (August 2000) which noted that a significant 

change in defense science and technology over the past 10 years 

has been the erosion of military department’s science and technology budgets. The report notes, and the conferees are aware, that 

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size funding for current operations. The shift in funding away from 

science and technology raises issues of whether the services are investing sufficiently to properly address their long-term technology 

needs. 

The Department’s science and technology program has long 

played a crucial role in the development of technology and in the 

education and training of the scientific and engineering personnel 

required to support the continuing technical advances critical to 

maintain superior military capabilities. The ability of today’s U.S. 

military forces to deploy anywhere in the world, sustain forward 

presence, and win decisively on the battlefield results from past investments in research and technology. For more than 50 years, 

these investments have enabled the Department of Defense to advance the frontiers of knowledge and develop the technologies necessary to gain and maintain operational and technical superiority. 

The conferees commend the Department of Defense commitment to a goal of three percent of the budget request for the defense science and technology program and progress toward this 

goal. The conferees also note the finding in the Defense Science 

Board report that successful high technology industries invest 

about 3.5 percent of sales in research (equivalent to the DOD S&T 

program) and the recommendation that S&T funding should be increased to ensure the continued long-term technical superiority of 

U.S. military forces in the 21st Century. The conferees believe that 

the Department must continue to provide the necessary investments in research and technologies that ensure a strong, stable, 

and robust science and technology program for our Armed Forces.

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ARMY 

Research, Development, Test and Evaluation, Army—Overview 

The budget request for fiscal year 2003 included an authoriza- tion of $6,918.5 million for Research, Development, Test and Evaluation, Army in the Department of Defense. The House bill would authorize $6,933.3 million. 

The Senate amendment would authorize $7,301.4 million. 

The conferees recommend an authorization of $7,158.3 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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NAVY 

Research, Development, Test and Evaluation, Navy—Overview 

The budget request for fiscal year 2003 included an authorization of $12,501.6 million for Research, Development, Test and Evaluation, Navy in the Department of Defense. 

The House bill would authorize $13,274.5 million. 

The Senate amendment would authorize $12,913.1 million. 

The conferees recommend an authorization of $13,244.2 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice.

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Marine mammal research 

The budget request included $393.6 million in PE 61153N for 

basic research to support naval applications. The House bill would authorize an increase of $2.1 million to 

the budget request for marine mammal research. The Senate amendment would authorize an increase of $2.0 

million to the budget request. The conferees recommend an increase of $2.0 million for basic 

research on marine mammals. The conferees support research on 

marine mammal behavior that can help address heightened public 

concern about the effects of military and industrial activity on 

these animals, including additional behavioral and acoustics research and efforts to detect the presence of marine mammals and 

take mitigating action to protect animals as necessary. 

Littoral support craft—experimental 

The budget request contained $57.6 million in PE 63123N for 

force protection advanced technology development but included no 

funds to continue the development of the Littoral Support Craft— Experimental (LSC–X). The Office of Naval Research has proposed 

to conduct a phased program to develop and demonstrate an experimental littoral support craft demonstrator that would provide the 

basis for operational experiments on the contribution that such a 

craft could make to naval operations in the littorals, and $36.2 million for this purpose was provided in fiscal year 2002. The House bill would authorize an additional $13.7 million to 

continue development of the LSC–X. 

The Senate amendment included no similar recommendation. 

The statement of managers (H. Rept. 107–333) accompanying 

the National Defense Authorization Act for Fiscal Year 2002 

(Public Law 107–107) directed the Secretary of the Navy to identify 

the set of experimental objectives that the LSC–X program is intended to explore and the objective measures of effectiveness that 

will be used to determine whether those objectives have been 

achieved. The conferees also directed the Secretary to define the 

program plan, the schedule, and the funding requirements for development of LSC–X. 

The Secretary of the Navy submitted a report, dated August 6, 

2002, that provides the Navy’s plan for the development of the 

LSC–X. The report addresses the experimental concepts to be explored by naval forces in a phased plan that culminates in the use 

of the craft to test new technology and operational concepts which 

could be candidates for future support of expeditionary and littoral 

operations. The report stated that no additional funding would be 

required to build, outfit, and test the LSC–X prototype hull, beyond 

those funds already provided in fiscal year 2002. 

According to the Navy’s plan, the vessel should be ready for 

initial sea trials in the summer of 2004. The conferees also note the 

views expressed in the House report (H. Rept. 107–33) that a littoral support craft demonstrator such as the LSC–X design, which 

would include a modular payload capability that allows the use of 

different technology demonstrators and warfare mission modules, 

could be an effective experimental test bed for many of the technologies that might be chosen for use on a littoral combat ship 

506

(LCS). Elsewhere in this report, the conferees have directed the 

Secretary of the Navy to address the role that various demonstration platforms such as the LSC–X will play in the LCS acquisition 

strategy. 

The conferees direct the Secretary of the Navy to develop LSC– X as a complete system, including such combat, communications 

and weapons systems interfaces as may be required to demonstrate 

technologies and modular payloads, such as the affordable weapon 

system, that might be considered for the LCS program. To that 

end, the conferees direct the Navy to include in the phase one 

‘‘design and build’’ portion of the program the total system interface definitions that will be required to demonstrate systems and 

technologies planned for the phase three ‘‘technology and operational concept evaluation’’ segment of the LSC–X program. 

The conferees also believe that the Navy should accelerate 

phase three to ensure that information required for application to 

a littoral combat ship program will be available before the Navy requests funds to design such a ship. The conferees recognize that 

this may require a combination of science and technology and system development and demonstration funding. Therefore, the conferees agree to an increase of $13.0 million 

in PE 63123N to continue development of the LSC–X demonstrator. 

The conferees also direct the Secretary to update his report on the 

development plan and identify any funding required for the LSC– X program. The Secretary should submit that updated report with 

the budget request for fiscal year 2004.

AIR FORCE 

Research, Development, Test and Evaluation, Air Force—Overview 

The budget request for fiscal year 2003 included an authorization of $17,601.2 million for Research, Development, Test and Evaluation, Air Force in the Department of Defense. The House bill would authorize $18,803.2 million. 

The Senate amendment would authorize $18,611.2 million. 

The conferees recommend an authorization of $18,337.1 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice.

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Multi-sensor command and control constellation 

The budget request for the Defense Emergency Response Fund 

(DERF), Security, Communications, and Information Operations 

activity included $488.0 million for the multi-sensor command and 

control constellation (MC2C) program. This request included $150.0 

million for the purchase of a Boeing 767–400ER testbed aircraft for 

the multi-sensor command and control aircraft (MC2A) and $100.0 

million for integration engineering for that aircraft. The request 

also included $238.0 million to accelerate the initial sensor suite, 

known as the multi-platform radar technology insertion program 

(MP–RTIP), for the MC2A aircraft and for the Global Hawk unmanned aerial vehicle. The budget request also included $191.1 

million in PE 27449F for the MC2C program, reflecting a total request of $679.1 million. 

The House bill would authorize the budget request. 

The Senate amendment would authorize a total of $429.1 million for the program. This decrease of $250.0 million was based on 

the belief that the Air Force did not have to budget for the testbed 

aircraft and its initial integration engineering in fiscal year 2003, 

since the MP–RTIP system would not be available to install in the 

aircraft until fiscal year 2007. 

The conferees agree to authorize a decrease of $75.0 million for 

the aircraft purchase and a decrease of $35.0 million for the associated integration engineering activities. 

The Air Force has informed the conferees that they have extended the schedule for manufacturing, integration engineering, 

and airworthiness flight testing for the MC2A testbed aircraft. The 

new estimate of the schedule would reduce the amount of time 

available to modify the aircraft to a configuration that would support installation of the MP–RTIP sensor. The revised schedule calls 

for delivery of the testbed aircraft late in the third quarter of fiscal 

year 2004 rather than the originally planned delivery early in the 

first quarter of fiscal year 2004. 

The conferees agree that, under the revised schedule, the Air 

Force may begin the purchase of the aircraft in fiscal year 2003, 

but should split the cost of the aircraft and integration engineering 

between fiscal years 2003 and 2004. Since the schedule for the aircraft has been delayed, the conferees have determined that the Air 

Force does not require all of the funding originally requested for integration engineering tasks in fiscal year 2003. 

Therefore, the conferees agree to authorize a total of $569.1 

million for the program, a total decrease of $110.0 million.

DEFENSE-WIDE 

Research, Development, Test and Evaluation, Defense-Wide—Overview 

The budget request for fiscal year 2003 included an authorization of $16,613.6 million for Research, Development, Test and Evaluation, Defense-Wide in the Department of Defense. 

The House bill would authorize $17,516.3 million. 

The Senate amendment would authorize $16,496.9 million. 

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The conferees recommend an authorization of $17,659.1 million. Unless noted explicitly in the statement of managers, all 

changes are made without prejudice.

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Advanced aerospace systems 

The budget request included $246.0 million in PE 63285E for 

research to address high payoff opportunities associated with advanced aeronautical and space systems. 

The House bill would authorize a decrease of $50.0 million in 

PE 63285E. 

The Senate amendment would authorize the budget request. 

The conferees agree to a $10.5 million reduction to PE 63285E. 

The conferees direct that this reduction not be assessed against the 

Unmanned Combat Air Vehicle programs. 

Arrow 

The budget request included $65.7 million in PE 63881C for 

the joint U.S./Israeli Arrow missile defense program. 

The House bill would authorize an increase of $91.0 million in 

PE 63881C for the Arrow program. 

The Senate amendment would authorize an increase of $40.0 

million in PE 63881C for the Arrow program. 

The conferees strongly support the Arrow program and agree 

that, of the funding authorized for the Missile Defense Agency, up 

to an additional $55.0 million may be used for the Arrow program. 

TEST AND EVALUATION 

Operational Test and Evaluation, Defense—Overview 

The budget request for fiscal year 2003 included an authorization of $222.1 million for Operational Test and Evaluation, Defense. 

The House bill would authorize $222.1 million. 

The Senate amendment would authorize $361.6 million. 

The conferees recommend an authorization of $311.6 million. 

Unless noted explicitly in the statement of managers, all changes 

are made without prejudice.

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ITEMS OF SPECIAL INTEREST

Biometric identification technology 

The budget request included the following amounts for research and development activities related to information systems 

security programs: (1) $394.3 million in PE 33140G; (2) $14.8 million in PE 33140A; (3) $18.4 million in PE 33140N; and (4) $9.4 

million in PE 33140F. Within those amounts, the budget request 

included $4.3 million in projects related to biometric and anti-tamper evaluations in PE 33140G and $6.0 million in PE 33140A supporting the Department of the Army and Department of Defense 

Executive Agent activities for biometrics. 

The House bill and the Senate amendment would support the 

budget request. 

The House report (H. Rept. 107–592) on the Intelligence Authorization Act for Fiscal Year 2003 (H.R. 4628) would recommend 

$15.0 million within PE 33140G for a national biometric security 

project. 

The conferees understand that use of biometric identification 

techniques could dramatically improve national infrastructure security. For example, biometric technology can be used for protecting electronic information systems, ensuring the authenticity of 

communications, and deterring terrorist or other attacks against 

the national communications infrastructure. 

The conferees believe that the Defense Department’s biometrics research and development programs might benefit from 

participation in a national-level consortium. That consortium might 

coordinate biometric research, assess various biometric techniques, 

evaluate promising technologies, and educate information professionals. Such a consortium approach might be used to mobilize and 

coordinate biometric expertise and provide an informed basis for integrating biometric technologies into a comprehensive approach to 

infrastructure security. In so doing, a consortium could provide 

independent, private sector advice and support on how best to deploy biometrics and biometric technologies to help deter or respond 

to terrorist attacks against the national critical infrastructure. 

Therefore, the conferees encourage the Director of the National 

Security Agency to investigate the possibility of sponsoring a national biometric security project and provide the results of that investigation to the congressional defense and intelligence committees when he completes that review. The conferees also believe that 

it would be appropriate to use resources from within the information systems security program to conduct such a review. 

Delegation of research, development, test, and evaluation programs 

and activities 

The conferees support the efforts of the Department of Defense 

to streamline and transform itself in order to more effectively modernize and achieve its mission. The conferees are concerned, however, about recent efforts to devolve numerous research, development, test, and evaluation (RDT&E) programs within the Office of 

the Secretary of Defense (OSD) to the services and defense components. In particular, the conferees note that several programs with 

significant congressional interest are being transferred out of OSD, 

553

many of which are managed by OSD at congressional direction. It 

is the conferees’ understanding that these programs are being 

transferred to achieve staffing and budget goals within OSD, rather than to improve the execution or performance of the affected 

programs. The conferees believe that the level of support that these 

RDT&E programs will receive if managed by the services and defense components will be reduced without OSD oversight. In addition, many of these programs serve multiple military objectives, 

which may not be addressed if the programs are managed by the 

individual services or defense components. 

Therefore, the conferees direct the Secretary of Defense to halt 

any efforts to transition the following RDT&E programs to a particular service or defense component: (1) Strategic Environmental 

Research and Development Program; (2) Defense Experimental 

Program to Stimulate Competitive Research; (3) Environmental Security Technology Certification Program; (4) In-House Laboratory 

Independent Research; (5) High Performance Computer Modernization Program; (6) High Energy Laser Program; (7) Mentor Protege 

Program; (8) University Research Initiative; (9) Foreign Comparative Test Program; and (10) Joint Robotics Program. 

The conferees direct the Secretary of Defense to provide notification to Congress prior to the delegation of research, development, 

test, and evaluation activities and programs from the Office of the 

Secretary of Defense to a service or other defense component outside of OSD. The conferees direct the Secretary to provide justification for any proposed delegations in the form of a mandated report. 

A report on a delegation of authority should include each of the 

following: (1) an identification of the Secretary of a military department or head of a defense agency or other element of the Department of Defense to whom the delegation is made; (2) an evaluation 

of how the delegation is expected to improve the efficiency and performance of the program or activity in accomplishing the stated 

goals and purposes of the program or activity; (3) a description of 

plans for continued supervision of the program by the Office of the 

Secretary of Defense to ensure that the program or activity has sufficient resources to accomplish its stated goals and purposes; and 

(4) an identification of any changes in existing law necessary to 

support the delegation and a request that such changes be enacted. 

The conferees note that any delegation of RDT&E activities or 

programs by the Secretary of Defense shall be subject to careful 

congressional scrutiny. Some of the programs proposed for delegation were established at the OSD level by statute and will require 

changes to such statutes or enactment of specific authorization enabling the Secretary of Defense to delegate the program, while others may involve strong congressional interest. The conferees expect 

the Secretary of Defense to consider these legal requirements and 

congressional interests in rendering a decision on devolvement. 

Management of the chemical-biological defense program 

The conferees have been informed that on September 19, 2002, 

the Under Secretary of Defense for Acquisition, Technology, and 

Logistics (USD(AT&L)) approved an acquisition decision memorandum that would reorganize management of the chemical-biological defense program. The new streamlined management structure 

554

would place authority and accountability with specific individuals 

in an effort to improve the program’s efficiency and responsiveness 

to warfighter and national security needs. Under the revised management structure, a Joint Program Executive Office (JPEO) would 

be established that would have responsibility for chemical- biological defense acquisition programs and would report through the 

Army Acquisition Executive to the Defense Acquisition Executive. 

Responsibility for chemical-biological defense science and technology programs, except those programs separately funded and 

managed by the Defense Advanced Research Projects Agency 

(DARPA), would be assigned to the Defense Threat Reduction 

Agency (DTRA), which would also continue to perform funding 

management functions under the oversight of the Assistant to the 

Secretary of Defense (Nuclear and Chemical and Biological Defense 

Programs) (ATSD(NCB)). Responsibility for overall coordination 

and integration of all activities within the chemical-biological defense program, to include policy guidance, interagency and international coordination responsibility, and day-to-day oversight, 

would be exercised by the ATSD(NCB) in accordance with section 

1701 of the National Defense Authorization Act for Fiscal Year 

1994 (Public Law 103–160). The ATSD(NCB) would establish and 

chair a permanent overarching integrated product team, consisting 

of representatives from the military services, the Joint Staff, and 

the Office of the Secretary of Defense, to assist the ATSD(NCB) in 

this oversight role. 

The conferees understand that the Joint Requirements Oversight Council has already established a Joint Requirements Office 

for Nuclear, Biological and Chemical (NBC) Defense in the Joint 

Staff, which replaces the current requirements process under the 

Joint NBC Defense Board and will integrate and establish priorities for chemical-biological defense requirements. 

The conferees strongly support the Under Secretary’s objective 

of establishing a streamlined management structure for the chemical-biological defense program that will improve authority and accountability and will ensure that the program is better able to respond to warfighter and national needs. The conferees agree that 

the establishment of a JPEO responsible for acquisition programs 

will provide a single, dedicated executive, who will be able to integrate programs and funding across commodity areas and services 

and effectively link programmatic and acquisition authority. The 

conferees believe that the JPEO should be established as a joint activity with subordinate program managers drawn from all the military services. 

The conferees are concerned, however, about the assignment of 

responsibility for the science and technology program to DTRA. 

The conferees note that the predominant expertise in the 

chemical-biological defense science and technology program resides 

in the military departments and particularly in the chemical-biological, medical biological, and medical chemical defense science 

and technology programs of the Army, which is currently responsible for approximately 70 percent of the program. The conferees 

are concerned about how this existing technical expertise would 

continue to be leveraged under a science and technology program 

managed and executed by DTRA. 

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The conferees note that, to date, DTRA’s direct participation in 

the chemical-biological defense program has been limited, and a 

significant increase in DTRA’s management and chemical-biological 

science and technology capabilities would be required to take on 

the management and execution of the chemical- biological defense 

science and technology program. 

One key attribute of the military departments’ research and 

development laboratories and centers is their close contact with the 

services in the field that provides a constant awareness of the 

needs of deployed soldiers, sailors, airmen, and marines. The conferees are concerned about the ability of a separate science and 

technology program under DTRA to remain focused on acquisition 

program requirements and the need to meet the needs of the 

warfighter. 

The conferees believe that a close and habitual working relationship between the science and technology community and the acquisition community is necessary for the transition of maturing 

technologies into acquisition programs. The conferees note the difficulty in transitioning technologies developed under DARPA’s biological warfare defense program into acquisition programs. The 

conferees believe it is important to maintain the close link between 

the acquisition and science and technology communities under the 

new program management. 

The conferees note further that the congressional defense committees played a major role in establishing a defense-wide, integrated, and coordinated chemical and biological defense program 

that would meet the needs of U.S. Armed Forces and have closely 

monitored and maintained an intense interest in this critical program. A principal feature of the program was the establishment in 

the Office of the Secretary of Defense of a strong focal point for 

chemical-biological defense to provide overall policy and budget 

guidance and oversight for the program. 

The conferees do not want to prejudge the decision made by 

the USD(AT&L) and note that appropriate staff agencies have 

begun work on the detailed plans and procedures required to implement the acquisition decision memorandum. The conferees request that the concerns noted above be take into account in the development of those implementation plans. The conferees direct that 

the Under Secretary review the implementation plans and procedures with the congressional defense committees before those plans 

become effective. 

Wide bandgap semiconductor electronics 

The budget request contained $5.5 million in PE 61153N for 

basic research and $30.0 million in PE 62712E, $1.4 million in PE 

62705A, $3.5 million in PE 62271N, $1.75 million in PE 62204F for 

applied research in wide bandgap semiconductor electronics. 

The House would authorize an increase of $8.0 million in PE 

62271N for wide bandgap semiconductor materials technology and 

an increase of $5.5 million in PE 63175C for silicon carbide-based 

wide bandgap semiconductor technology. 

The Senate amendment would authorize an increase of $2.5 

million in PE 62271N for wide bandgap semiconductor materials 

and devices for application in advanced power electronics, commuVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00579 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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nications, and sensor systems, $2.5 million for silicon carbide materials and device research, and $1.5 million for advanced semiconductor materials research for high power amplifiers. The amendment would also authorize an increase of $10.0 million in PE 

63175C for wide bandgap semiconductor technology. 

The conferees agree to authorize $5.5 million in PE 61153N for 

basic research and $30.0 million in PE 62712E, $1.4 million in PE 

62705A, and $1.75 million in PE 62204F for applied research in 

wide bandgap semiconductor electronics as contained in the budget 

request. The conferees also agree to authorize increases in PE 

62271N of $2.5 million for wide bandgap semiconductor materials 

and devices, $2.5 million for silicon carbide materials and devices, 

and $1.5 million for advanced semiconductor materials, and increases in PE 63175C of $2.5 million for silicon carbide-based wide 

bandgap semiconductor technology and $2.5 million for gallium 

nitride technology. 

Section 212 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107) required the Secretary of Defense to carry out a cooperative program to develop and demonstrate advanced technologies and concepts for future naval radar 

systems and other applications with particular emphasis on development of advanced electronic materials to extend the range and 

sensitivity of radars. The conferees have reviewed the report by the 

Director of Defense Research and Engineering (DDRE), dated May 

28, 2002, that addresses the cooperative program. Collaborating 

agencies under the overall direction of the DDRE include the Defense Advanced Research Projects Agency (DARPA), the Navy, the 

Army, the Air Force, and the Missile Defense Agency. 

The conferees note that the program focuses on activities needed to accelerate the development, maturation, and transition of 

technologies for advanced electronic materials to extend the range 

and sensitivity of naval radars, including radio frequency/microwave and high power wide bandgap semiconductor materials and 

devices, and reduce the technical risk and expedite the insertion of 

the technology in military systems. While several insertion opportunities exist across the services, the next generation naval radar 

is the primary insertion target. To support that development, an 

objective of the overall wide bandgap program is to demonstrate 

the ability to produce wide bandgap high power amplifiers that can 

be expected to meet cost and performance criteria of the Navy’s advanced ship-based radar plan for sea-based missile defense. The 

goal of the program for these devices is to achieve a sufficient level 

of technology maturity to support the radar’s preliminary design 

review that is now anticipated to occur between fiscal year 2007 

and 2008. 

The conferees note that the DDRE’s report reflected an initial 

investment in the collaborative program of $54.9 million in fiscal 

year 2002. The fiscal year 2003 budget request for the program totals $40.7 million, including $30.0 million in DARPA, $3.7 million 

in the Navy, $1.8 million in the Air Force, $1.4 million in the 

Army, and $3.9 million for Defense Production Act Title III authority to facilitate the transition of technologies through the establishment of enhanced production capabilities. 

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The conferees note that this level of funding is not consistent 

with previous analyses, which have recommended an increased 

science and technology investment in wide bandgap technology that 

would total approximately $50 million per year over a five-year period, beginning in fiscal year 2002, in order to develop the technologies necessary to field advanced radar systems in time to meet 

the Navy and the Department of Defense (DOD) requirements in 

2015. The conference agreement increases the investment in the 

program to the recommended level. 

The conferees commend the participating DOD agencies for development of the collaborative program. The conferees place a high 

priority on the development of the technology for advanced wide 

bandgap semiconductor materials and devices for future naval 

radar and other applications and intend to monitor the program 

closely. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Authorization of Appropriations 

Authorization of appropriations (sec. 201) 

The Senate bill contained a provision (sec. 201) that would authorize the recommended fiscal year 2003 funding levels for all research, development, test, and evaluation accounts. 

The House amendment contained a similar provision. 

The conference agreement includes this provision. 

Amount for defense science and technology (sec. 202) 

The budget request for fiscal year 2003 included an authorization of $9,677.2 million for science and technology programs in the 

Department of Defense. The Defense Emergency Response Fund request included an authorization of $332.0 million for science and 

technology programs. 

The House bill would authorize $10,350.2 million. 

The Senate amendment would authorize $10,155.4 million. 

The conferees recommend an authorization of $10,384.7 million 

for Department of Defense science and technology programs. Unless noted explicitly in the statement of managers, all changes are 

made without prejudice. 

Defense health programs (sec. 203) 

The budget request for fiscal year 2003 included an authorization of $67.2 million for research, development, test, and evaluation 

activities for carrying out health care programs, projects, and activities of the Department of Defense. 

The House bill and Senate amendment would both authorize 

the amount of the budget request. 

The conferees recommend an authorization of $67.2 million for 

research, development, test and evaluation activities for carrying 

out health care programs, projects, and activities of the Department of Defense. 

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Subtitle B—Program Requirements, Restrictions, and Limitations 

RAH–66 Comanche aircraft program (sec. 211) 

The House bill contained a provision (sec. 211) that would 

place a cost cap of $6.0 billion as the total amount that could be 

spent on the engineering and manufacturing development (EMD) 

phase of the RAH–66 Comanche aircraft program. The provision 

would also require an annual Department of Defense Inspector 

General program review until the EMD phase is completed. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Secretary of the Army to provide the Committees on Armed Services of the Senate and House of Representatives with a quarterly 

report on the progress of the restructured RAH–66 Comanche aircraft program during fiscal year 2003. 

The conferees repeat both their strong support for and concern 

about the RAH–66 Comanche aircraft program as highlighted in 

the statement of managers accompanying the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107). The 

conferees believe this aircraft will be a transformational weapon 

system capable of an array of missions to include manned reconnaissance, light attack, and network-centric warfare. The conferees, 

however, have been disappointed with the Army’s lackluster support in prior years for this program. The Army has consistently 

failed to provide the appropriate funds required to ensure that the 

program could meet its earlier established fiscal year 2006 initial 

operational capability (IOC), resulting in program slips and numerous program restructures. 

In the aforementioned statement of managers, the conferees 

questioned the reliability of any new cost estimates and EMD program milestones and expected an accurate estimate of funds required to complete EMD and the new time line and plan for bringing the Comanche to IOC to be submitted with the fiscal year 2003 

budget request. (Section 211 of the House bill addressed this lack 

of response.)

The Army has finally reacted to this concern and is once again 

restructuring the program, the sixth such restructuring since fiscal 

year 1988, with an approximate $4.0 billion infusion of funds to 

complete the EMD phase of the program. The information the 

Army has belatedly provided the conferees gives some cause for 

hope that the program is now more realistically structured and 

funded to field this critical capability for the Objective Force beginning in fiscal year 2009. The conferees believe the commissioning 

of a Comanche Independent Review Panel, which contributed to 

this restructuring, and the Army’s due consideration of that panel’s 

recommendations are positive steps. The conferees will closely monitor the upcoming Defense Acquisition Board’s decision on the restructured program and subsequent actions related to this program 

as reflected in the quarterly reports required by this conference. 

The conferees reiterate their concern that the program remain on 

schedule during fiscal year 2003 and be adequately funded in the 

out years to meet the new fiscal year 2009 IOC. 

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Extension of requirements relating to management responsibility for 

naval mine countermeasures programs (sec. 212) 

The House bill contained a provision (sec. 212) that would extend, through fiscal year 2008, the requirement for the Under Secretary of Defense (Acquisition, Technology, and Logistics) 

(USD(AT&L)) to have primary responsibility for developing and 

testing naval mine countermeasures (MCM) systems. The provision 

would permit waiving that requirement annually, subject to certification by the Secretary of Defense that: (1) the Secretary of the 

Navy (SECNAV) has submitted an updated mine countermeasures 

master plan; (2) the budget for that fiscal year proposes sufficient 

resources for executing that plan; and (3) the Chairman of the 

Joint Chiefs of Staff (CJCS) concurs with the plan and resources. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Joint Requirements Oversight Council (JROC) to carry out title 10 

responsibilities regarding the Secretary of the Navy MCM plan. 

The amendment would also require the USD(AT&L) to submit a 

notification to the congressional defense committees if the Navy intends to change the plan and budget that have been certified and 

submitted to Congress. 

The USD(AT&L) letter to Congress, dated February 6, 2002, 

provided a review of the Navy’s fiscal year 2002 MCM plan. That 

letter stated, ‘‘the assessments continue to show that the programmed changes in equipment and force structure will significantly reduce the time required to counter a mine threat and 

hence, validate the Navy investment strategy.’’ The SECNAV reported in a letter to Congress on March 25, 2002, that ‘‘the Commander, Fleet Forces Command has conducted a fleet review of all 

Mine Countermeasures Plans and Programs (MCM) and Operational Requirements Documents (ORDs) and concurs with all programs and ORDs.’’ In a letter to Congress, dated April 18, 2002, 

the USD(AT&L) certified the Navy MCM program for fiscal year 

2003. 

Despite the USD(AT&L) and CJCS reviews and subsequent 

certification of both the fiscal year 2002 and 2003 SECNAV MCM 

plans and budget requests, the Navy has recently taken actions 

without congressional consultation or notification to change those 

plans and associated programs significantly. These actions occurred 

after a hearing cycle which included reviews of both MCM plans 

and programs and the processes for changing those plans and programs. 

Recent events have included the following: 

(1) Senior Navy officials testified before Congress that congressional consultation and concurrence would be sought prior 

to removing appropriated and authorized capabilities from 

Navy ships. 

(2) Shortly after the USD(AT&L) submitted the fiscal year 

2003 certification, a senior member of the staff of the Chief of 

Naval Operations, apparently without consultation with the 

Director of Expeditionary Warfare and without consulting or 

notifying Congress, issued an order for the DDG–51 program 

manager to delete certain organic mine countermeasures capability from ships that were nearing delivery and that were 

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under construction. This action had the effect of making a fundamental change to the programs upon which the USD(AT&L) 

made his certification. 

(3) In August, two senior military officers, without consultation or notification to Congress, issued an order to remove 

a key MCM system that was included in the approved, certified, appropriated and authorized MCM plan. 

The conferees believe that these circumstances are sufficient 

evidence for their concern regarding the oversight of MCM programs and for requiring that the Department provide closer supervision of the execution of the certified plans and budgets. 

Revised requirements for plan for Manufacturing Technology Program (sec. 213) 

The House bill contained a provision (sec. 214) that would revise the requirements for the annual plan for the Manufacturing 

Technology Program (ManTech). 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Advanced SEAL Delivery System (sec. 214)

The Senate bill contained a provision (sec. 212) that would authorize the Secretary of Defense to use any funds that were authorized and appropriated for fiscal year 2002 for Advanced SEAL Delivery System (ASDS) advance procurement, but are no longer 

needed for that purpose, for fiscal year 2003 ASDS research, development, test and evaluation. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

the Secretary of Defense to transfer $13.7 million, which was authorized and appropriated for fiscal year 2002 for ASDS advance 

procurement, to fiscal year 2003 ASDS research, development, test 

and evaluation. 

Army experimentation program regarding design of the objective 

force (sec. 215) 

The Senate amendment contained a provision (sec. 213) that 

would require the Secretary of the Army to submit a report to Congress on the details of an Objective Force experimentation program 

no later than March 30, 2003, and to fund that experimentation 

program as a separate program element in the fiscal year 2004 

budget request submission to Congress. 

The House bill contained no similar provision. 

The House recedes with an amendment that would extend the 

date for the report submission to March 31, 2003. 

Program to provide Army with self-propelled Future Combat Systems non-line-of-sight cannon indirect fire capability for the objective force (sec. 216) 

The budget request contained $475.6 million, composed of 

$246.5 million in PE 63854A and $229.1 million in PE 64854A for 

continued development of the Crusader self-propelled artillery system. 

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The Senate amendment contained a provision (sec. 214) that 

would move the $475.6 million requested in the fiscal year 2003 

budget for the Crusader artillery system to a different budget 

line—the Army’s Future Combat Systems (FCS)—to be used only 

to meet the Army’s organic indirect fire needs. Upon submission of 

the report to Congress required by the provision, the Secretary of 

Defense would be allowed to seek to reprogram the funds for Crusader termination costs, for continued research and development of 

the Crusader artillery system, or for other Army programs identified as the best available alternatives to the Crusader for providing 

improved indirect fire for the Army. The provision would require 

the Chief of Staff of the Army to complete a review of the full range 

of Army programs that could provide improved indirect fire for the 

Army over the next 20 years and submit his recommendations. The 

provision would further require an annual report to be submitted 

to the congressional defense committees on the investments proposed to be made on indirect fire programs for the Army. 

The report required by the provision was submitted to Congress by the Chief of Staff of the Army, through the Office of the 

Under Secretary of Defense for Acquisition, Logistics and Technology on July 26, 2002. 

The House bill contained no similar provision, but the report 

accompanying the bill directed the Secretary of Defense to continue 

Crusader development until completion of the Army’s Analysis of 

Alternatives in support of the Milestone B decision for Crusader 

scheduled for the third quarter of fiscal year 2003. 

The House recedes with an amendment that would direct the 

Secretary of Defense to carry out a program to provide the Army, 

no later than fiscal year 2008, with a self-propelled Future Combat 

Systems (FCS) Non-Line-of-Sight (NLOS) Cannon to equip the Objective Force. 

The conferees have carefully considered the Secretary of Defense’s decision to terminate the Crusader Artillery System and the 

budget amendment request the Administration submitted to the 

congressional defense committees to transfer the $475.6 million requested for Crusader in the fiscal year 2003 budget request to 

other programs. The Army Chief of Staff has reported that he 

‘‘fully supports OSD proposals to accelerate Army precision fire initiatives and further develop other programs to enhance fire support 

to ground forces. However, the acceleration of existing programs 

alone will not fully meet the operational requirement for organic, 

indirect fires by 2008.’’ He recommends funding the fielding of a 

Future Combat Systems Non-Line-of-Sight Cannon and establishing a networked fires capability by 2008, stating that ‘‘we cannot fully employ Objective Force operational concepts without this 

capability.’’

The conferees believe that, in order to deliver such a system 

by 2008, maximum advantage should be taken of technology developed through other programs, such as the composite armored vehicle, Crusader, and the joint United States-United Kingdom Future 

Scout and Cavalry System. 

To reduce risk in this effort, the conferees have authorized increases totaling $293.0 million to the $475.6 million requested for 

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Crusader in the fiscal year 2003 budget request as reflected in the 

following program elements:

[In millions of dollars] 

PE 62303A Missile Technology: Micro Electro-mechanical Systems (MEMS) 15.0 

PE 63005A Combat Vehicle and Automotive Advanced Technology: Future 

Scout and Cavalry Vehicle Demo ...................................................................... 10.0 

PE 63645A Future Combat Sys Dem/Val: F 48 NetFires ................................... 114.5

PE 63778A MLRS Product Imp. Program: 

HIMARS .......................................................................................................... 10.0 

Guided MLRS .................................................................................................. 45.0

PE 63802A Weapons and Munitions—ADV DEV: Precision Guided Mortar 

Munitions (PGMM) ............................................................................................ 10.8 

PE 64645A Armored System Modernization: Future Combat System .............. 105.0

PE 63854A Artillery Systems Dem/Val: F 47 FCS NLOS Cannon .................... 368.5 

PE 64814A Artillery Munitions—EMD: Excalibur ............................................. 48.3

PE 64854A Artillery Sys—EMD: Paladin ............................................................ 7.5 

PE 23726A Army Field Artillery Data Sys .......................................................... 4.0 

PE 23735A Combat Vehicle Improvement Program: Abrams Engine ............... 28.6 

PE 35204A Tactical Unmanned Aerial Vehicle ................................................... 11.4

Prohibition on transfer of Medical Free Electron Laser program 

(sec. 217) 

The Senate amendment contained a provision (sec. 217 ) that 

would prohibit the transfer of the Department of Defense Medical 

Free Electron Laser (MFEL) Program to any other department or 

agency of the Federal Government. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

The conferees note that the MFEL program continues to fund 

high quality, peer-reviewed research that is oriented towards military medical applications. The conferees believe that the program 

transfer was inappropriate and, therefore, support the retention 

and funding of the MFEL program within the Department of Defense. 

Littoral combat ship program (sec. 218)

The budget request for fiscal year 2003 included no funding for 

research and development for a littoral combat ship (LCS). The 

Senate amendment contained a provision (sec. 219J) that would authorize 4.0 million in PE 63563N to develop requirements for a littoral ship. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

$4.0 million in PE 63563N to develop requirements for a littoral 

combat ship and would require certain reporting requirements from 

the Secretary of the Navy. 

Subsequent to hearings and markup by the Committees on 

Armed Services of the Senate and the House of Representatives of 

the fiscal year 2003 authorization request, Navy officials requested 

additional funding authorization for research and development of 

an LCS. 

An LCS program may be necessary to provide capabilities to 

carry out the National Military Strategy. However, neither the Office of the Secretary of Defense, the Joint Chiefs of Staff, nor the 

Navy has provided any indication that they have completed sufficient work on any number of prerequisites that the Department of 

Defense (DOD) is required to meet before concluding that new deVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00586 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
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velopment is required to provide the capabilities inherent in an 

LCS. These include requirements in title 10, United States Code, 

and internal DOD directives, such as DOD 5000.2–R Mandatory 

Procedures for Major Defense Acquisition Programs and Chairman, 

Joint Chiefs of Staff (CJCS) Instruction 3170.01B. 

The LCS has not been vetted through the Joint Requirements 

Oversight Council (JROC) process, particularly regarding possible 

alternatives and the relative priority to meet valid requirements. 

This should be completed prior to initiation of any program which 

is intended to support joint combat operations. 

The conferees believe that the Navy needs to assess the adequacy of existing and planned platforms to test the littoral combat 

ship concept and how these platforms will be used in the development, test, and evaluation of the LCS and its mission modules. The 

conferees strongly believe that the Navy must capitalize on ongoing 

and planned experiments, demonstrations, and evaluations of existing, prototype, and experimental hull forms and platforms to better 

inform the Navy’s decisions on the LCS. Some of these have been 

completed, but others are planned and await modification or construction of the hull form and platform demonstrators. 

The conferees are also concerned that the Navy’s strategy for 

the LCS does not clearly identify the plan and funding for development and evaluation of the mission modules upon which the operational capability of the LCS will depend. The conferees believe 

that the strategy for LCS development must provide for the identification, transition, and integration of the component technologies 

and subsystems to be included in the several mission modules and 

for the evaluation of each mission module as a system before its deployment on the LCS. 

The conferees expect the JROC and the Navy to specifically 

deal with a number of concerns in fulfilling the requirements in the 

LCS provision. These include: 

(1) Assessing the extent to which unmanned systems could 

be capable of completing the missions instead of a manned 

LCS vessel. Briefings on the LCS indicate that an LCS would 

be used for operations determined to be ‘‘too risky’’ for larger 

surface combatants. This raises questions about the level of 

risk the Navy has determined to be acceptable for an LCS that 

is unacceptable for larger surface combatants. 

(2) Identifying the threat or threats that have negated the 

Navy’s previous investments in multi-mission ships and made the 

missions of anti-submarine warfare, anti-surface warfare, and antimine warfare ‘‘too risky’’ for these ships. The Navy has invested 

heavily in providing combatants of all types and displacements 

with onboard and offboard sensors, weapons, and information 

connectivity. This investment was directed to ensure that multimission ships could operate at any time and in any place. 

(3) Determining the level of support from other combatants 

and auxiliaries that LCS vessels will require, and whether this will 

lead to altered planning assumptions for sizing the force. An open 

question regarding a ‘‘focused mission’’ vessel such as an LCS is 

whether the vessel will be able to operate with impunity in the 

presence of threats outside its focused mission warfare area. If not, 

the Navy may have to adjust operating and support concepts in 

564

more significant ways than merely adding LCS vessels to the current battle group. 

(4) Identifying the appropriate level of helicopter support in 

the baseline LCS vessel. The naval helicopter has been a proven 

key capability for combatant surface ships when conducting the 

three primary warfare areas stated for LCS. Navy briefings indicate that the LCS will require a helicopter capability to carry out 

its missions and will operate forward of the battle group. Nevertheless, the Navy appears to have forgotten the lessons learned from 

the first flight of Arleigh Burke-class destroyers and has not included a naval helicopter hangar as a key requirement for the LCS. 

(5) Assessing the implications of using and supporting nonmarinized systems as component capabilities on LCS vessels. For 

example, the Navy has indicated the desire for using OH–58D helicopters on LCS. Although these Army helicopters have flown from 

Navy ships for short periods, they have limited capabilities for LCS 

mission areas. Naval helicopters, however, have the durability and 

system integration required to provide joint and battle group synergism for LCS missions. 

(6) Identifying whether there are changes in tactics and procedures which the Navy could apply to current platforms and concepts of operations that would accomplish the envisioned LCS missions without putting additional pressure on an already underfunded ship acquisition plan. 

(7) Assessing the assignment of LCS-unique missions to the 

U.S. Coast Guard, close allies, or coalition partners. If we are to 

continue assuming joint and coalition warfare, perhaps the U.S. 

Navy could count on the Coast Guard or smaller navies of allies to 

contribute more effectively by performing ‘‘small ship’’ mission. 

SUBTITLE C—BALLISTIC MISSILE DEFENSE

Report requirements relating to ballistic missile defense programs 

(sec. 221) 

The Senate amendment contained provisions (secs. 222 and 

223) that would require the Secretary of Defense to submit to the 

congressional defense committees reports containing programmatic 

information on the Ground-based Midcourse and Air-based Boost 

programs. The Senate amendment also contained a provision (sec. 

221) that would require the Department to submit to the congressional defense committees reports containing operational assessments of these programs by the Director of Operational Test and 

Evaluation (DOT&E) and an annual review of the cost, schedule, 

and performance criteria of all ballistic missile defense (BMD) programs by the Joint Requirements Oversight Council (JROC). 

The House bill contained no similar provision. 

The conferees agree that the Department must provide adequate programmatic information on BMD programs to the congressional defense committees and notes that the annual budget justification materials, together with the report on the cost, schedule, 

testing, and performance goals of BMD programs required by section 232 of the National Defense Authorization Act for Fiscal Year 

2002 (Public Law 107–107), are appropriate vehicles for transmitting such information. 

565

Therefore, the Senate recedes on sections 221, 222 and 223 

with an amendment that would require the Secretary of Defense to 

annually submit to Congress, with the budget justification materials, the performance goals and development baselines for each 

block of each BMD system that could be fielded and for BMD systems that have been designated by Congress as special interest 

items. The amendment would require submission of funding profiles (i.e., year-by-year funding estimates) for each block of each 

BMD system that could be fielded. 

Finally, the amendment would require the JROC to perform a 

one-time review of the cost, schedule, and performance criteria for 

BMD programs in order to assess the validity of those criteria in 

relation to military requirements and to include the results of the 

review with the annual statement of BMD cost, schedule, and performance goals required by the National Defense Authorization Act 

for Fiscal Year 2002 (Public Law 107–107). 

The conferees believe that a cooperative relationship between 

the Director of Operational Test and Evaluation and the Missile 

Defense Agency is and will remain important to successful execution of ballistic missile defense programs. The conferees are concerned that DOT&E reporting on BMD programs, included in the 

DOT&E annual report dated February 2002, may not have been 

based on information generated with a sufficient level of interaction between MDA and DOT&E. The conferees are encouraged by 

recent statements by DOT&E that DOT&E involvement in BMD 

programs is now acceptable and expect that the Missile Defense 

Agency will continue to work cooperatively with DOT&E. 

Responsibility of Missile Defense Agency for research, development, 

test, and evaluation related to system improvements of programs transferred to military departments (sec. 222) 

The House bill contained a provision (sec. 232) that would 

amend title 10, United States Code, to require the Director of the 

Missile Defense Agency to retain responsibility for research, development, test and evaluation related to improvements of missile defense systems and system components that have been transferred 

to the military departments for procurement and fielding. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Limitation on obligation of funds for Theater High Altitude Area 

Defense Program pending submission of required life-cycle cost 

information (sec. 223) 

The Senate amendment contained a provision (sec. 224) that 

would require the Secretary of Defense to submit to Congress by 

January 15, 2003, certain types of programmatic information for 

the Theater High Altitude Area Defense (THAAD) program, including the development schedule and planned procurement schedule. 

The provision would also require submission of a life cycle cost estimate specifically required by section 232 of the National Defense 

Authorization Act for Fiscal Year 2002 (Public Law 107–107) for 

programs such as THAAD in their Engineering and Manufacturing 

Development phase. The provision would specify that no more than 

50 percent of the amount authorized to be appropriated in fiscal 

566

year 2003 for THAAD may be expended until the congressional defense committees have received the information required by the 

provision. 

The House bill contained no similar provision. 

The House recedes with an amendment that would specify that 

no more than 85 percent of the amount authorized to be appropriated in fiscal year 2003 for THAAD may be obligated until Congress has received the life cycle cost estimate required by last 

year’s National Defense Authorization Act. Other reporting requirements related to THAAD are included in Section 221. 

The conferees note that a development schedule and planned 

procurement schedule need to be developed in order to provide such 

a life cycle cost estimate. The conferees also recognize that the Missile Defense Agency (MDA) plans to evolve missile defense system 

capabilities through spiral development and will acquire the ballistic missile defense systems in an evolutionary acquisition process. The conferees expect that MDA will provide the congressional 

defense committees the basis for understanding the THAAD life 

cycle cost estimate. 

The conferees also note that under the Defense Department’s 

plan for obligation of THAAD funding, the Department should have 

until February 2003 to submit the required life cycle cost estimate 

prior to any adverse funding impacts to the THAAD program. 

Therefore, the conferees expect the life cycle cost estimate to be 

provided on or before the date of submission of the fiscal year 2004 

budget justification materials in February 2003. 

Provision of information on flight testing of Ground-based Midcourse National Missile Defense system (sec. 224) 

The Senate amendment contained a provision (sec. 227) that 

would require the Director of the Missile Defense Agency (MDA) to 

submit to the congressional defense committees a thorough report 

on each flight test of the Ground-based Midcourse national missile 

defense system no later than 120 days after the test. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Director of the MDA to communicate to Congress the results of 

each flight test, including a thorough discussion of the content and 

objectives of the test, a statement regarding whether each objective 

was achieved, and a discussion of the reasons, if any, for not 

achieving the objectives. 

The conferees note that the amendment, which does not require a report by a fixed date months after the flight test, would 

provide the Director of the MDA the flexibility to provide Congress 

with more complete information in a more timely fashion. 

References to new name for Ballistic Missile Defense Organization 

(sec. 225) 

The House bill contained a provision (sec. 233) that would 

make appropriate conforming changes to reflect the change of the 

Ballistic Missile Defense Organization’s name to the Missile Defense Agency. 

The Senate amendment contained a similar provision (sec. 

225). 

567

The House recedes with a clarifying amendment. 

One-year limitation on use of funds for nuclear armed interceptors 

(sec. 226) 

The Senate amendment contained a provision (sec. 226) that 

would prevent any funds from being obligated for research, development, test, evaluation, procurement or deployment of nuclear 

armed interceptors for a missile defense system. 

The House bill contained no similar provision. 

The House recedes with an amendment that would prohibit obligation of any fiscal year 2003 funds. 

Subtitle D—Improved Management of Department of Defense Test 

and Evaluation Facilities 

Department of Defense Test Resource Management Center 

(sec. 231) 

The Senate amendment contained a provision (sec. 231) that 

would establish a Department of Defense (DOD) Test and Evaluation Resource Enterprise, which would report to the Director of 

Operational Test and Evaluation. 

The House bill contained no similar provision. 

The House recedes with an amendment that would establish a 

DOD Test Resource Management Center. The Test Resource Management Center would be a DOD Field Activity headed by a Director, who would be a three-star officer, and a Deputy Director, who 

would be a senior civilian with substantial experience in the field 

of test and evaluation. The Director would be subject to supervision 

by the Under Secretary of Defense for Acquisition, Technology, and 

Logistics. The Director would report directly to the Under Secretary without intervening authority. 

Under the conference amendment, the Test Resource Management Center would be responsible for developing a strategic plan 

for DOD test and evaluation resources; reviewing and certifying the 

adequacy of proposed DOD budgets for test and evaluation activities; and administering the Central Test and Evaluation Investment Program (CTEIP) and the DOD program for test and evaluation science and technology. 

The CTEIP and science and technology programs would not be 

transferred to the Center until the beginning of the first fiscal year 

after the Department submits a strategic plan for test and evaluation resources to the congressional defense committees. The conferees expect that CTEIP funds will continue to be used to fund the 

development of critically needed, high priority test and evaluation 

capabilities for joint and multi-service requirements. The CTEIP 

program is not intended to be a substitute for adequate funding of 

service-specific test and evaluation capabilities by the military 

services. 

Objective for institutional funding of test and evaluation facilities 

(sec. 232) 

The Senate amendment contained a provision (sec. 232) that 

would transfer testing funds from the research and development 

programs of the military departments and defense agencies to the 

568

major test and evaluation investment accounts of the Department 

of Defense. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary of Defense to establish the objective of ensuring that, by 

fiscal year 2006: (1) the institutional and overhead costs of the 

Major Range and Test Facility Base (MRTFB) are fully funded 

through the Department’s major test and evaluation investment accounts and other direct appropriations; and (2) no more than the 

direct costs for the use of the MRTFB facilities and resources are 

charged to users of the MRTFB. 

The conferees expect the Secretary of Defense to submit a 

budget for fiscal year 2004 that will begin to fund the military departments and defense agency MRTFB institutional programs at a 

level such as to achieve the above objective by fiscal year 2006. 

Uniform financial management system for Department of Defense 

test and evaluation facilities (sec. 233) 

The Senate amendment contained a provision (sec. 234) that 

would require the Secretary of Defense to implement a single financial management and accounting system for all test and evaluation facilities of the Department of Defense (DOD) within two years 

after the date of enactment of this Act. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary to implement a single financial management and accounting system for test and evaluation facilities as soon as possible, with the objective that such system be implemented no later 

than September 30, 2006. 

Test and evaluation workforce improvements (sec. 234) 

The Senate amendment contained a provision (sec. 235) that 

would require the Under Secretary of Defense for Acquisition, 

Technology and Logistics to develop a plan to ensure that the test 

and evaluation workforce of the Department of Defense (DOD) is 

of sufficient size and has the expertise needed to ensure that the 

testing of DOD systems identifies issues of military suitability and 

effectiveness in a timely and accurate manner. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Compliance with testing requirements (sec. 235) 

The Senate amendment contained a provision (sec. 236) that 

would require the Director of Operational Test and Evaluation to 

include an assessment of waivers of and deviations from testing requirements in his annual report to Congress. 

The House bill contained no similar provision. 

The House recedes. 

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Subtitle E—Other Matters 

Pilot programs for revitalizing Department of Defense laboratories 

(sec. 241) 

The House bill contained a provision (sec. 213) that would reauthorize pilot programs intended to revitalize Department of Defense laboratories. 

The Senate amendment contained a similar provision (sec. 241) 

that would reauthorize and expand the same pilot programs. 

The House recedes with an amendment that would eliminate 

the establishment of new excepted service positions under the pilot 

program. 

The conferees are concerned that the Department of Defense 

has made very limited use of authorities granted under this and 

other pilot and demonstration programs that could help address 

personnel and other issues at laboratories and test centers. Congress has provided the Department with considerable legislative 

authority for personnel reform, which remains unused. It is the intent of Congress that the authority granted to the Secretary under 

section 342 of the National Defense Authorization Act for Fiscal 

Year of 1995 (Public Law 103–337) and section 1114 of the National Defense Authorization Act for Fiscal Year 2001 (Public Law 

106–398) be broadly and expansively interpreted by the Secretary 

and that the Secretary exercises his discretion to the fullest extent 

of the law to address the unique personnel issues associated with 

government scientists and engineers. These pilot programs and 

other demonstration projects should be used to experiment with 

novel personnel systems, procedures, and new business practices to 

derive lessons learned and help shape a coordinated strategy to address personnel and laboratory reform issues in the future. 

Technology Transition Initiative (sec. 242) 

The House bill contained a provision (sec. 215) that would establish a program to accelerate the transition of technologies into 

fielded defense systems. 

The Senate amendment contained a provision (sec. 242) that 

would establish a similar program. 

The House recedes with an amendment that would modify the 

Technology Transition Initiative and its procedures. 

The Technology Transition Initiative establishes a joint funding mechanism for transition projects between the Office of the Secretary of Defense and a military service or defense agency. The Initiative also establishes a Department-wide Technology Transition 

Council consisting of representatives of the science and technology, 

acquisition, and operational communities that would advise the Initiative Manager on the Initiative as well as other technology transition issues. 

The conferees direct the Initiative Manager to work with the 

science and technology community and the acquisition community 

to develop memoranda of agreement, joint funding agreements, and 

other cooperative arrangements and to utilize innovative contracting arrangements and acquisition procedures to provide for 

carrying out projects under the Initiative in an efficient manner. 

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The conferees note that it is the intent of this provision to provide flexibility to the Department regarding the use and activities 

of the Technology Transition Council. Under this provision, the formal council would meet periodically to discuss technology transition issues, especially those relating to the Initiative and its 

projects. The organizations represented on the Council, however, 

are free to designate representatives to support the detailed technical reviews and funding decision-making processes that will be 

part of the Initiative. 

The conferees note that the Technology Transition Initiative 

does not replace, but complements, the responsibility of the senior 

acquisition executives of the Department of Defense, the military 

departments, and the heads of the Defense agencies with research 

and development responsibilities under section 5358, title 10, 

United States Code, to ensure that the science and technology programs under their authority are carried out in such manner that 

will foster the transition of science and technology to higher levels 

of research, development, test, and evaluation. 

The conferees direct the Comptroller General to review and 

evaluate the Technology Transition Initiative, the Defense Acquisition Challenge Program, and the Small Business Outreach program for combating terrorism. These reviews should occur two 

years after the enactment of the provisions, so as to provide the 

Department sufficient time to organize and establish the programs. 

The reviews should assess the implementation of the programs relative to congressional intent. The reviews should also recommend 

any necessary changes to improve the programs, including incentives for participation by services and agencies, organizational 

structure, and changes to the acquisition workforce. For example, 

the review should assess the cost savings generated by the programs and the use of those savings by participating organizations 

to support other missions. 

Defense Acquisition Challenge Program (sec. 243) 

The House bill contained a provision (sec. 216) that would require the Secretary of Defense to establish the Defense Acquisition 

Challenge Program, a pilot program to promote the insertion of 

unique and innovative technologies (‘‘challenge proposals’’) into existing Department of Defense (DOD) acquisition programs. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would provide 

that the Secretary act through the Under Secretary of Defense for 

Acquisition, Technology, and Logistics (USD(AT&L)), in carrying 

out the program. The amendment would provide that the Under 

Secretary prescribe procedures for the submission of challenge proposals through the unsolicited proposal process or in response to a 

broad agency announcement issued to solicit challenge proposals. 

The amendment would also provide that the Under Secretary establish panels to carry out preliminary evaluations of challenge 

proposals and prescribe criteria to be considered in those evaluations and would establish additional criteria to be considered by 

the program office and the prime system contractor in consideration of those challenge proposals referred for a full review and 

evaluation. 

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The conferees believe that the panels will be an important tool 

in the preliminary screening and identification of meritorious challenge proposals and that the amended provision would provide the 

USD(AT&L) the flexibility needed to prescribe proper panel makeup. The composition of the panels may change ranging from a technical level review by knowledgeable scientists and technologists to 

a very senior level blue ribbon panel, depending on the issue or 

technology being reviewed. The conferees expect that review panels 

would take a ‘‘best value’’ approach in evaluation of challenge proposals. 

The conferees believe that the use of the broad agency announcement and the unsolicited proposal process under procedures 

prescribed by the USD(AT&L) will provide the Department the 

ability to manage the submission of challenge proposals and to 

identify specific technology areas of interest and areas that could 

be transitioned rapidly into fielded programs under a broad agency 

announcement, while at the same time allowing prospective contractors the opportunity to propose innovations for a program at 

any time under the unsolicited proposal process. The conferees believe that the authority for appropriate DOD officials to identify 

and refer unsolicited challenge proposals to a panel would permit 

their expeditious review under appropriate circumstances. Upon 

completion of a preliminary review by a panel, those challenge proposals with merit would be requested to submit a more detailed 

proposal to be reviewed by the Government program office and the 

prime system contractor for the impacted program. The conferees 

note that the detailed analyses should include a cost estimate and 

examination of relevant industrial base issues. 

The conferees believe that the challenge program could provide 

an excellent avenue for accelerating the introduction of new and innovative technology into defense acquisition programs and that 

program offices and prime contractors should be encouraged to incorporate such approaches as new technology insertions by appropriate incentives, such as share-in savings approaches. 

The conferees also believe that the Under Secretary should establish procedures for adoption of those extraordinary challenge 

proposals that, based on their evaluation, promise such far-reaching improvements in performance, affordability, manufacturability, 

or operational capability that a termination of a contract for the 

convenience of the Government and an award of a contract for insertion of the technology would be justified. 

Encouragement of small businesses and nontraditional defense contractors to submit proposals potentially beneficial for combating 

terrorism (sec. 244)

The Senate amendment contained a provision (sec. 243) that 

would establish a program to assist the Department of Defense in 

utilizing small businesses and nontraditional defense contractors in 

developing technologies to combat terrorism. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment. 

The conferees direct the Department to use all available electronic commerce technology to carry out its activities, including 

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ommendations within the Department. This is consistent with the 

Department’s efforts to streamline its procedures and make more 

use of electronic transactions in conducting Department business. 

The use of these technologies should also address a systemic problem within the Department by making technical proposals and 

evaluator responses easier to track and document by both contractors and Department of Defense personnel alike. 

The conferees direct the Department to use the size standards 

appropriate for the Small Business Innovative Research program 

when determining eligibility for participation in the Small Business 

Outreach Program. 

The conferees are concerned with the communication between 

the various federal agencies responsible for developing technologies 

to combat terrorism. Therefore, the conferees recommend that the 

activities of the panel be coordinated with the activities of appropriate federal agencies and the Office of Science and Technology 

Policy, including the forwarding of proposals not specific to the 

needs of the Department of Defense to other appropriate federal 

agencies. 

Vehicle fuel cell program (sec. 245) 

The Senate amendment contained a provision (sec. 244) that 

would require the Secretary of Defense to carry out a cost-shared 

program to develop fuel cell technology for use in Department of 

Defense vehicles. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment that would require the Secretary to carry out the program in coordination with 

the Department of Energy and other appropriate federal agencies. 

Defense nanotechnology research and development program (sec. 

246) 

The Senate amendment contained a provision (sec. 245) that 

would establish a Department of Defense nanotechnology research 

and development program. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment that would 

encourage the Department of Defense to coordinate its 

nanotechnology research activities with the National 

Nanotechnology Initiative. 

The conferees note that there are many ongoing activities in 

the Defense Advanced Research Projects Agency and the military 

services that are attempting to exploit the promise of 

nanotechnology to develop new military capabilities, for example in 

biosensing, smart materials, computing, and nanoelectronics. The 

conferees urge the Department to leverage these activities in developing the coordinated research program. In particular, the conferees direct the Department to capitalize on the special technical 

area review on nanoelectronics by the Department’s Advisory 

Group on Electronic Devices as it works to develop a research portfolio, investment plan, and transition strategy in this important 

technical area. 

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Activities of the Defense Experimental Program to Stimulate Competitive Research (sec. 247) 

The Senate amendment contained a provision (sec. 246 ) that 

would modify the Defense Experimental Program to Stimulate 

Competitive Research (DEPSCoR) and to require a National Research Council assessment of the program. 

The House bill contained no similar provision. 

The House recedes with an amendment. 

The conferees direct the Secretary of Defense to continue to 

support the DEPSCoR effort to develop new defense research capabilities across the Nation. The conferees encourage the Secretary to 

continue to support activities that will develop world-class researchers in DEPSCoR states and to work closely with the individual states’ planning committees to ensure that the program supports the development of defense research infrastructure. 

Four-year extension of authority of DARPA to award prizes for advanced technology achievements and additional authority of 

military departments and Defense Agencies to award prizes for 

achievements in promoting education (sec. 248) 

The Senate amendment contained a provision (sec. 247) that 

would reauthorize the Defense Advanced Research Projects Agency 

(DARPA) to award competitive prizes for advanced technology 

achievements. 

The House bill contained no similar provision. 

The House recedes with an amendment that would modify the 

reporting requirements related to the authority. 

The conferees note that competitive prizes have been used successfully in the past to support the development of advanced technologies and have been endorsed by the National Academy of Engineering. The conferees support DARPA’s interest in utilizing this 

authority in the future. 

The conferees direct the Director of DARPA to address the 

whole area of competitive prizes seriously and to develop an overall 

program rather than a limited ‘‘one-shot’’ approach to the use of 

the authority. This includes fulfilling the reporting requirements 

included in the provision; conducting a market survey of those corporations and other entities who might want to participate in such 

an initiative; coordinating with the military services on the most 

relevant and promising technical areas in which to run competitions; and establishing a competitive prize program that supports 

the National Academy of Engineering’s finding that prize contests 

have the ability ‘‘to attract a broader spectrum of ideas and participants’’ to the pursuit of scientific and technological objectives ‘‘by 

reducing the costs and other bureaucratic barriers to participation 

by individuals or firms.’’

The conferees urge the services to make use of similar prize 

authority granted to the service secretaries by the provision. The 

conferees believe that service-sponsored programs to promote 

science, math, and engineering can provide a positive contribution 

to communities and would help increase national emphasis on the 

role of science, math, and technology education in meeting longterm national defense needs. 

574

The conferees note that the Army’s eCybermission program to 

establish a nationwide math, science, and technology competition 

for elementary and secondary schools is an excellent example of 

this type of effort. The conferees urge the Secretary of the Army 

to make use of these authorities to continue the eCybermission program. 

Plan for five-year program for enhancement of measurement and 

signatures intelligence capabilities of the United States through 

incorporation of results of basic research on sensors (sec. 249) 

The Senate amendment contained a provision (sec. 1038) that 

would require the Director of the Central Measurement and Signatures Intelligence Office to submit a plan for a five-year program 

for incorporating the results of basic research on sensors into the 

measurement and signatures intelligence systems fielded by the 

Federal Government. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary of Defense to submit the plan. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Aerospace Relay Mirror System demonstration 

The Senate amendment contained a provision (sec. 219I) that 

would authorize funding for an Aerospace Relay Mirror System 

demonstration. 

The House bill contained no similar provision. 

The Senate recedes. By convention, outcomes of funding differences between the House bill and the Senate amendment are included in the tables elsewhere in this report. 

Agroterrorist attacks 

The Senate amendment contained a provision (sec. 219E) that 

would authorize $1.0 million for research and analysis of efforts to 

counter potential agroterrorist attacks. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Analysis of emerging threats 

The Senate amendment contained a provision (sec. 216) that 

would authorize funding for analysis of emerging threats. 

The House bill contained no similar provision. 

The Senate recedes. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Army radar power technology 

The Senate amendment contained a provision (sec. 219A) that 

would authorize funding for a radar power technology for the 

Army. 

575

The House bill contained no similar provision. 

The Senate recedes. By convention, outcomes of funding differences between the House bill and the Senate amendment are included in the tables elsewhere in this report. 

Aviation-shipboard information technology initiative 

The Senate amendment contained a provision (sec. 219H) that 

would authorize, of the funds authorized to be appropriated within 

Research, Development, Test and Evaluation, Navy, up to $8.2 million for the aviation-shipboard information technology initiative. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Basic seismic research program for support of national requirements for monitoring nuclear explosions 

The Senate amendment contained a provision (sec. 211) that 

would require the Secretary of the Air Force to manage the Department of Defense program for basic seismic research in support of 

national requirements for monitoring nuclear explosions. The provision would also authorize $20.0 million for this seismic research 

program. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees note that the Department of Defense is planning 

to transfer management of the research program to support national requirements for monitoring nuclear explosions from the Defense Threat Reduction Agency to the Air Force and the Army. The 

conferees are concerned that, while the requirements for monitoring nuclear explosions have become significantly more challenging since the mid–1990s, management of and resources for the 

research program to support these national requirements have 

been neither stable nor sufficient since that time. Congress has repeatedly appropriated additional funds above the budget request 

levels for this research program. 

Therefore, the conferees direct the Secretary of Defense to submit a report to the congressional defense committees by February 

1, 2003, describing how the management of and resources for this 

research program will support the national requirements for monitoring nuclear explosions and ensure that the United States is able 

to meet these requirements. 

Critical infrastructure protection 

The Senate amendment contained a provision (sec. 219B) that 

would authorize funding for critical infrastructure protection. 

The House bill contained no similar provision. 

The Senate recedes. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

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DDG optimized manning initiative 

The Senate amendment contained a provision (sec. 219D) that 

would authorize an additional $2.5 million in PE 64307N for the 

DDG optimized manning initiative. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Demonstration of renewable energy use 

The Senate amendment contained a provision (sec. 218) that 

would authorize an additional $2.5 million in PE 64710N to continue a demonstration program of renewable energy use, rather 

than in PE 63508N. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Full-scale high-speed permanent magnet generator 

The Senate amendment contained a provision (sec. 219G) that 

would authorize an additional $1.0 million in PE 63123N to develop and demonstrate a full-scale, high-speed, permanent magnet 

generator. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Increased investment in test and evaluation facilities 

The Senate amendment contained a provision (sec. 233) that 

would increase the amount authorized to be appropriated for investment in Department of Defense test and evaluation facilities. 

The House bill contained no similar provision. 

The Senate recedes. 

The amounts authorized for investment in test and evaluation 

facilities are reflected in the appropriate accounts. 

Laser welding and cutting demonstration

The Senate amendment contained a provision (sec. 215) that 

would authorize an additional $6.0 million in PE 62123N for laser 

welding and cutting demonstration, rather than in PE 63508N. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

577

Limitation on obligation of funds for procurement of Patriot (PAC– 3) missiles pending submission of required certification 

The House bill contained a provision (sec. 231) that would prevent obligation of funds for procurement of PAC–3 missiles pending 

submission of criteria to the congressional defense committees for 

the transfer of missile defense programs from the Missile Defense 

Agency (MDA) to the military departments and certification by the 

Secretary of Defense that those criteria have been met for the 

PAC–3 program. The criteria and certification are required by sections 224(b)(2) and 224(c), respectively, of title 10, United States 

Code. 

The Senate amendment contained no similar provision. 

The House recedes. 

In its budget submission for fiscal year 2003, the Department 

of Defense proposed transferring the PAC–3 program from the 

MDA to the Army. The conferees understand that the Department 

has decided not to transfer the PAC–3 program, pending full agreement within the Department on the appropriate criteria to establish prior to the transfer. Furthermore, the conferees understand 

that such criteria, as well as the appropriate certification, will be 

submitted to Congress prior to proposing such a transfer in the future. Based on this, the conferees consider the House provision to 

be unnecessary at present. 

The conferees strongly support the PAC–3 program and expect 

that, prior to transferring this or any other program from MDA to 

the services, the Department will establish appropriate criteria to 

ensure that the programs are adequately funded, managed, upgraded, and supported over time. 

Report on implementation of Defense Science Board recommendations 

The Senate amendment contained a provision (sec. 237) that 

would require the Secretary of Defense to report to the congressional defense committees on the implementation of the recommendations of the December 2000 report of the Defense Science 

Board Task Force on Test and Evaluation Capabilities. 

The House bill contained no similar provision. 

The Senate recedes. 

Theater Aerospace Command and Control Simulation Facility upgrades 

The Senate amendment contained a provision (sec. 219C) that would authorize $2.5 million for Theater Aerospace Command and 

Control Simulation Facility (TACCSF) upgrades. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Very high speed support vessel for the Army 

The Senate amendment contained a provision (sec.219F) that 

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lion for the development of a prototype composite hull design to 

meet the theater support vessel requirement. The provision would 

offset this increase by a reduction of $5.5 million authorized to be 

appropriated for research, development, test, and evaluation for the 

Navy for the submarine tactical warfare program. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report.

TITLE III—OPERATION AND MAINTENANCE

Overview 

The President’s budget request for fiscal year 2003 included 

$129.8 billion for operation and maintenance programs and $3.3 

billion for working capital fund accounts. 

The budget request also included $20.1 billion in the operation 

and maintenance title for the Defense Emergency Response Fund 

(DERF). Of this amount, $10.1 billion was requested for specific 

programs and $10.0 billion was requested as unspecified contingency funding for continuing the war on terrorism into fiscal year 

2003. 

The House bill would authorize $130.4 billion for operation and maintenance accounts and $2.4 billion for working capital fund accounts. 

The Senate amendment would authorize $129.5 billion for operation and maintenance accounts and $2.6 billion for working capital fund accounts. 

The conferees recommend an authorization of $129.1 billion for 

the operation and maintenance accounts and $2.6 billion for the 

working capital fund accounts of the Department of Defense for fiscal year 2003. 

The amounts recommended in this title include two reductions 

discussed more fully in title X of this Act, one for improved management of services contracts and one for reductions in proposed 

information technology modernization prior to design of a comprehensive financial management structure. For operation and 

maintenance, the conferees agree to a reduction of $494.1 million 

for savings from services contracts and $51.6 million from financial 

management information technology systems. 

The conferees agree to a reduction of $654.4 million in working 

capital funds, including a $328.0 million increase (as requested in 

the DERF) for renovation and reconstruction of the Pentagon, a decrease of $839.1 million for changes in the accounting structure for 

health and retirement benefits that were not adopted (discussed 

more fully below), a decrease of $148.6 million from financial management information technology systems, and an increase of $5.3 

million as requested in the DERF. 

The House bill, the Senate amendment, and the conference 

agreement transfer the funding requested in the DERF to the appropriate accounts throughout the Department of Defense. The authorization of appropriations for the unspecified $10.0 billion for 

continuing the war on terrorism, which would fund the costs of onVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00602 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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going military operations as well as the additional pay and benefits 

of mobilized guard and reserve personnel, has been transferred to 

title XV of this Act. 

The conferees’ actions on the $10.1 billion in funding for the 

other portion of the DERF are reflected in the tables throughout 

this report which describe the accounts to which those funds were 

transferred. 

The budget request also proposed to change the accounting 

structure for various health and retirement benefits of federal civilian employees to an accrual basis. As discussed in the House and 

Senate reports, Congress did not agree with this proposed change. 

The operation and maintenance accounts in the House bill, the 

Senate amendment, and the conference agreement have been reduced by $2.3 billion to reflect the appropriate funding levels for 

defense programs under current accounting procedures. The authorizations for revolving and management funds in this title have 

been reduced by $839.1 million for this same reason. These reductions would not entail any change to the benefits of federal civilian 

employees funded by either direct appropriations or through the 

working capital funds.

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Department of Defense foreign language training 

The budget request included $135.4 million in Operation and 

Maintenance, Army for the Defense Language Institute/Foreign 

Language Center (DLI/FLC). 

The House bill and the Senate amendment would support the 

budget request. The House version of the Intelligence Authorization Act for Fiscal Year 2003 (H.R. 4628) would authorize an increase of $2.0 million for the satellite communications for learning 

(SCOLA) project at the DLI/FLC. The conferees agree to authorize $136.4 million, an increase of $1.0 million in Operation and Maintenance, Army for SCOLA. The 

conferees also direct the Secretary of the Army to designate an appropriate organization to manage the SCOLA program beginning in 

fiscal year 2003. 

The SCOLA project provides important support within the 

Government. Financing to date for the SCOLA project has been 

provided by reimbursements from defense agencies and other government activities seeking SCOLA program support. The conferees 

believe that the SCOLA program deserves more focused management that would benefit the program with: (1) a more reliable 

funding line item in the budget; and (2) better support in the programming and budgeting process from the Department. The conferees also believe that the DLI/FLC would be an appropriate organization to manage the SCOLA program effort. 

Ship depot maintenance 

The budget request for fiscal year 2003 included $3.5 billion for 

ship depot maintenance. The Senate amendment recommended a $90.0 million increase 

in ship depot maintenance to address war-related requirements 

and emergent repairs. 

The House bill contained no similar increase. 

The conferees agree to authorize the amount included in the 

budget request. 

The request for the fiscal year 2002 supplemental appropria- tions bill included $90.0 million to fund regularly scheduled maintenance that would have been deferred until fiscal year 2003 because funds were being diverted for war-related repairs. This funding for ship depot maintenance was approved by Congress. 

Because supplemental funding was provided that would allow 

regularly scheduled maintenance to proceed as planned, the conferees did not adopt the increase recommended in the Senate 

amendment. 

Secure communications for the reserve components 

The budget request for the Defense Emergency Response Fund 

included almost $200.0 million for the reserve components to increase reserve communications infrastructure. 

The House bill fully funded this request. 

The Senate amendment expressed support for the proposed improvements, but it also expressed concern over whether the entire 

amount requested could be executed in one fiscal year. Accordingly, 

the Senate amendment reduced the request by $40.0 million. The 

Senate report also required the Commander in Chief for Homeland 

621

Security to conduct a review of requirements to expand reserve 

component communications and to report the results of this review 

to the congressional defense committees no later than April 30, 

2003. 

The conferees agree to authorize a $40.0 million decrease and 

jointly endorse the need for the required review. 

Since the Senate completed action on its bill, Congress has received a report from the General Accounting Office (GAO) entitled 

‘‘National Guard: Effective Management Processes Needed for 

Wide-Area Network.’’ This report identifies a number of deficiencies 

in the management of the National Guard’s wide-area network, 

known as GuardNet. The conferees are concerned that the Department of Defense (DOD)’s plans to expand GuardNet and/or increase 

its use may be overly aggressive, given the apparent lack of defined 

requirements, uncertain configuration of the network, and potential 

security risks. The conferees believe that GuardNet can play a critical role both in enhancing the readiness of our Armed Forces by 

facilitating training and in bolstering capabilities to defend the 

homeland through rapid, secure communications with and between 

National Guard units. Therefore, the conferees strongly urge DOD 

to address these management concerns as quickly as possible and 

to include an update on any actions taken in its report to the congressional defense committees in April 2003. 

ITEMS OF SPECIAL INTEREST

Formerly Used Defense Site at Lowry Bombing and Gunnery Range 

The Army is the executive agent for the Formerly Used Defense Site (FUDS) Program, and the U.S. Army Corps of Engineers 

manages and executes actual remediation activities. The conferees 

urge the Secretary of the Army to expeditiously move forward with 

remediation efforts at all former military ranges. 

The conferees are aware of the environmental cleanup activities needed at the former Lowry Bombing and Gunnery Range in 

Arapahoe County, Colorado, and recognize the importance of completing needed cleanup and containment to protect the health and 

safety of the surrounding residences and to permit planned residential and school construction in the surrounding area to proceed. 

The conferees encourage the Army Corps of Engineers to complete 

cleanup in a timely manner by providing sufficient resources and 

selecting appropriate cleanup and containment methodologies for 

the former Lowry Bombing and Gunnery Range and for all other 

installations included in the FUDS Program. 

National Imagery and Mapping Agency commercial satellite imaging support 

The conferees recognize the importance of a viable, technically 

competent, commercial space imaging industry as an important 

complement to U.S. national technical means and note that the Director of Central Intelligence has directed the National Imagery 

and Mapping Agency (NIMA) to make fuller use of commercial imagery. The conferees believe that a long-term government commitment to the appropriate use of commercial imagery is necessary in 

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622

ment would cause commercial capital to become available to industry to support development of next generation commercial space 

imaging capabilities and infrastructure and would also result in 

greatly reduced cost-per-unit for commercial imagery. 

Section 2306b, title 10, United States Code, provides the head 

of an agency with the authority to enter into a multiyear contract 

for the purchase of property for more than one, but not more than 

five program years to the extent that funds are otherwise available 

for obligation. This authority is further qualified in that the agency 

head must find that the multiyear saves money, that the requirement is substantially stable, and that there is a reasonable expectation throughout the contract period that sufficient funds will be 

budgeted to avoid contract cancellation. For the Department of Defense, the agency head’s authority is also restricted to contracts 

less than $500.0 million, with an unfunded contingent liability of 

$20.0 million or less. For amounts greater than these, congressional notification or express congressional approval is required. 

The multiyear authority does not waive the requirement for 

annual appropriations from Congress for each contract year nor 

does it preclude the Government’s ability to terminate the contract 

for convenience. Nevertheless, because multiyear contracts can 

bring a significant measure of stability and economic order quantity activity to a program, it provides for considerably more efficient program execution and savings to the Government. 

The conferees believe that the termination liability in a 

multiyear contract for pixels or product from the commercial remote sensing industry need not exceed $20.0 million in any contract year. Thus the conferees understand that the Director of 

NIMA, under the foregoing statute, has the authority to award 

such a multiyear contract to a commercial remote sensing company 

for up to five years and $500.0 million ($100.0 million for each of 

five years) without requiring express congressional approval, as 

long as the unfunded contingent liability does not exceed $20.0 million. If the Director desired to purchase imagery from more than 

one industry source, he could award more than one multiyear contract on his own authority; however, congressional approval would 

be required if the aggregate amount were to exceed $500.0 million 

or $20.0 million in termination liability. 

The conferees expect NIMA to take advantage of existing 

multiyear contracting authority, including the authority contained 

in 10 USC 2306b, for commercial satellite imagery when such use 

is in the best interests of the Government. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Authorization of Appropriations 

Authorization of appropriations (secs. 301–302) 

The House bill contained provisions (secs. 301–302) that would 

authorize the recommended fiscal year 2003 funding levels for all 

operation and maintenance and working capital fund accounts. 

The Senate amendment contained similar provisions (secs. 

301–302). 

The conference agreement includes these provisions. 

623

Armed Forces Retirement Home (sec. 303) 

The House bill contained a provision (sec. 303) that would au- thorize $69.9 million from the Armed Forces Retirement Home 

Trust Fund for the operation of the Armed Forces Retirement 

Home, including the Armed Forces Retirement Home—Washington, 

and the Armed Forces Retirement Home—Gulfport. 

The Senate amendment contained a similar provision (sec. 

303). 

The Senate recedes. 

Grant to National Guard Youth Foundation (sec. 304)

The conference agreement includes a provision (sec. 304) that would authorize $2.5 million for a grant to the National Guard 

Youth Foundation for building and strengthening the character and 

competence of the Nation’s youth. 

Subtitle B—Environmental Provisions 

Enhancement of authority on cooperative agreements for environmental purposes (sec. 311) 

The Senate amendment contained a provision (sec. 311) that 

would authorize the Secretary of Defense to enter into and fund cooperative agreements with Federal, State and local agencies, as 

well as Indian tribes, that begin in one fiscal year and end in another fiscal year. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Single point of contact for policy and budgeting issues regarding 

unexploded ordnance, discarded military munitions, and munitions constituents (sec. 312) 

The House bill contained a provision (sec. 313) that would require the Secretary of Defense to establish a single point of contact 

for policy and budgeting issues regarding unexploded ordnance, discarded military munitions, and munitions constituents (UXO). 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment clarifying the authority that may be delegated under the provision. 

The conferees direct the Department of Defense to provide a 

consolidated budget exhibit on all proposed funding to address environmental impacts of UXO with its budget submission in each of 

the next four fiscal years as noted in the Senate report accompanying S. 2514 (S. Rept. 107–151). 

Authority to carry out construction projects for environmental responses (sec. 313) 

The House bill contained a provision (sec. 2802) that would 

clarify that the secretaries of the military departments are required 

to notify Congress of their intent to conduct military construction 

projects necessary to carry out an environmental response action 

when such projects are in excess of the minor construction threshold. 

The Senate amendment contained a provision (sec. 312) that 

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toration projects through the Environmental Restoration accounts 

of the Department of Defense and not as military construction 

projects. 

The House recedes. 

Procurement of environmentally preferable procurement items (sec. 

314) 

The Senate amendment contained a provision (sec. 313) that 

would require the Secretary of Defense to establish: (1) goals for 

the increased purchase of procurement items that are environmentally preferable or are made with recovered materials; and (2) 

a tracking system to enable the Department to monitor its progress 

in achieving these goals. 

The House bill contained no similar provision. 

The House recedes with an amendment that would eliminate 

the requirement to establish goals. The Secretary of Defense would 

be required to develop and implement an effective and efficient 

tracking system to identify the extent to which the Defense Logistics Agency procures items that have been determined to be environmentally preferable or made with recovered material. To the 

maximum extent practicable, the tracking system would be required to separately track the procurement of each category of such 

procurement items. In identifying categories of procurement items 

to be tracked, the conferees expect the Secretary to consider the 

Comprehensive Procurement Guidelines and Guidance on Acquisition of Environmentally Preferable Products and Services developed pursuant to Executive Order 13101 and products identified as 

environmentally preferable in the Federal Logistics Information 

System. The conferees also expect that the system will track the 

procurement of such items as a percentage of all purchases of procurement items that serve a similar purpose. 

Incidental taking of migratory birds during military readiness activities (sec. 315) 

The House bill contained a provision (sec. 311) that would 

amend the Migratory Bird Treaty Act (Public Law 93–300) to create a statutory exemption for the Department of Defense (DOD) for 

the incidental taking of migratory birds during authorized military 

readiness activities. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would create interim authority under which the Migratory Bird Treaty Act would 

not apply to the incidental taking of a migratory bird by DOD during authorized military readiness activities. The amendment would 

direct the Secretary of the Interior to prescribe regulations, no 

later than one year after the date of enactment of this Act, to exempt DOD for the incidental taking of migratory birds during authorized military readiness activities. The interim authority would 

not expire until the regulations have taken effect. The amendment 

would also require the Secretary of Defense, acting in consultation 

with the Secretary of the Interior, to identify measures to minimize 

the adverse impact of military training activities on affected species 

of migratory birds during both the period of interim authority and 

the period after the regulations have taken effect. 

625

The conferees believe this provision to be entirely consistent 

with the underlying terms of all treaty obligations of the United 

States. 

Subtitle C—Commissaries and Nonappropriated Fund 

Instrumentalities 

Authority for each military department to provide base operating 

support to Fisher Houses (sec. 321) 

The House bill contained a provision (sec. 321) that would authorize the service secretaries to provide appropriated fund support 

to Fisher Houses associated with the health care facilities of that 

military department. 

The Senate amendment contained a similar provision (sec. 

903). 

The Senate recedes. 

Use of commissary stores and MWR retail facilities by members of 

National Guard serving in national emergency (sec. 322) 

The House bill contained a provision (sec. 322) that would authorize members of the National Guard to use commissary and exchange stores when ordered to duty in other than a federal status 

in response to a federally declared national emergency. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Uniform funding and management of morale, welfare, and recreation programs (sec. 323) 

The House bill contained a provision (sec. 323) that would authorize the Secretary of Defense to permit installation commanders 

to manage funds appropriated for installation Morale, Welfare, and 

Recreation (MWR) programs under the procedures used for nonappropriated funds and would authorize conversion of certain employment positions, with the employees’ consent, from appropriated 

fund positions to nonappropriated fund positions. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Rebate agreements under the special supplemental food program 

(sec. 324) 

The Senate amendment contained a provision (sec. 344) that 

would authorize the Secretary of Defense to enter into contracts for 

rebates with producers of food products for the exclusive right to 

provide food in Navy Exchange Markets as supplemental food for 

the Women, Infants, and Children (WIC) Overseas Program, consistent with current authority for products sold in commissary 

stores. The recommended provision would also increase the maximum period of the exclusive rights contracts from one year to 

three years. 

The House bill contained no similar provision. 

The House recedes. 

626

Subtitle D—Workplace and Depot Issues 

Notification requirements in connection with required studies for 

conversion of commercial or industrial type functions to contractor performance (sec. 331) 

The House bill contained a provision (sec. 331) that would require the Secretary of Defense to notify Congress of the outcome 

of a required study for conversion of a function to contractor performance, regardless of whether the study results in conversion to 

contractor performance or maintaining performance in the public 

sector. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Temporary authority for contractor performance of security-guard 

functions to meet increased requirements since September 11, 

2001 (sec. 332) 

The House bill contained a provision (sec. 332) that would authorize the Secretary of Defense or the secretary of a military department to waive the prohibition in section 2465(a) of title 10, 

United States Code, on contracting out security guard functions in 

certain circumstances. The House provision would authorize the 

Department to contract for security guard functions if: (1) those 

functions are or will be performed by members of the Armed 

Forces; or (2) the security guard functions were not required before 

September 11, 2001. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would authorize 

the waiver of section 2465(a) to meet increased security guard functions undertaken in response to the terrorist attacks of September 

11, 2001, if: (1) the functions are or would be performed by members of the Armed Forces; and (2) the secretary concerned determines that the contractor personnel are appropriately trained and 

supervised and can be used without a reduction in security at the 

affected installation or facility. The authority to contract out security guard functions under this provision would expire three years 

after the date of enactment of this Act. The Secretary of Defense 

would be required to identify any longer-term requirements for security guard functions and submit a plan for meeting those requirements to the congressional defense committees no later than six 

months after the date of enactment. 

Repeal of obsolete provision regarding depot-level maintenance and 

repair workloads that were performed at closed or realigned 

military installations (sec. 333) 

The House bill contained a provision (sec. 334) that would repeal section 2469(a) of title 10, United States Code, which addresses depot-level maintenance and repair workloads that were performed at installations closed or realigned under the Defense Base 

Closure and Realignment Act of 1990 (Public Law 101–510). Because all installations have completed closure or realignment actions in accordance with that law, this provision is no longer necessary. 

The Senate amendment contained no similar provision. 

627

The Senate recedes. 

Exclusion of certain expenditures from limitation on private sector 

performance of depot-level maintenance (sec. 334) 

The House bill contained a provision (sec. 333) that would revise section 2474(f) of title 10, United States Code. Currently, that 

section excludes, until 2005, all work that is performed by private 

sector personnel at Department of Defense maintenance and repair 

depots from the percentage limitations (50/50) on private sector 

depot-level maintenance work. The provision would remove the 

date limitation. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would revise the 

date limitation. The amendment would extend the exclusion for the 

duration of all public-private partnership contracts for depot maintenance that are signed before the end of fiscal year 2006. 

Subtitle E—Defense Dependents Education 

Assistance to local educational agencies that benefit dependents of 

members of the Armed Forces and Department of Defense civilian employees (sec. 341) 

The Senate amendment contained a provision (sec. 331) that 

would authorize $30.0 million for continuation of the Department 

of Defense assistance program to local education agencies that benefit dependents of service members and Department of Defense civilian employees. 

The House bill contained a similar provision (sec. 341). 

The House recedes with a technical amendment. 

Housing benefits for unaccompanied teachers required to live at 

Guantanamo Bay Naval Station, Cuba (sec. 342) 

The Senate amendment contained a provision (sec. 1107) that 

would require the Navy to make excess military family housing at 

Guantanamo Bay Naval Station, Cuba, available for lease to Department of Defense Education Activity teachers assigned to teach 

at that station. 

The House bill contained a similar provision (sec. 342). 

The House recedes. 

Options for funding dependent summer school programs (sec. 343) 

The Senate amendment contained a provision (sec. 333) that 

would require the Secretary of Defense to provide dependent summer school programs on the same financial basis as programs offered during the regular school year. 

The House bill contained a similar provision (sec. 343). 

The House recedes. 

The conferees expect the Secretary to exercise the authority to 

charge fees for certain summer school programs only when necessary to offer a course. When a fee is charged, the Secretary 

should provide authority to waive the fee, on the basis of financial 

need, for students otherwise eligible for free education. 

628

Impact aid eligibility for local educational agencies affected by privatization of military housing (sec. 344)

The House bill contained a provision (sec. 366) that would authorize continued eligibility of certain local education agencies for 

impact aid during temporary reductions in the number of qualified 

students because of conversion of military housing units to private 

housing. The provision would also exclude basic allowance for housing payments to military personnel residing in privatized military 

housing from income for purposes of determining eligibility for free 

or reduced price school lunches. 

The Senate amendment contained a similar provision (sec. 

1064). 

The Senate recedes with an amendment deleting the provision 

for free or reduced price school lunches because this provision was 

enacted in separate legislation. 

Comptroller General study of adequacy of compensation provided 

for teachers in the Department of Defense Overseas Dependents’ Schools (sec. 345) 

The Senate amendment contained a provision (sec. 334) that 

would extend from May 1, 2002 to December 12, 2002 the date for 

the Comptroller General to report on a study on whether compensation for teachers in the Department of Defense dependents’

education system is adequate for recruiting and retaining high 

quality teachers. The provision would also require the Comptroller 

General to consider whether the process for setting teacher compensation is efficient and cost effective. 

The House bill amendment contained no similar provision. 

The House recedes. 

Subtitle F—Information Technology 

Annual submission of information regarding information technology 

capital assets (sec. 351) 

The House bill contained a provision (sec. 352) that would require the Secretary of Defense to include, along with the annual 

budget request, a description of and complete budget information 

on major information technology, national security system, and national security capital asset programs. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment to clarify certain 

terms and to minimize reporting requirements. 

Policy regarding acquisition of information assurance and information assurance-enabled information technology products (sec. 

352) 

The House bill contained a provision (sec. 353) that would require the Secretary of Defense to establish and implement a policy 

limiting the acquisition of all commercial off-the-shelf information 

assurance and information assurance-enabled information technology products to those products that have been evaluated and 

validated in accordance with appropriate criteria, schemes, or programs. 

The Senate amendment contained no similar provision. 

629

The Senate recedes with an amendment that would require the 

Secretary to: (1) apply the policy to all information assurance and 

information assurance-enabled information technology products 

(not just commercial off-the-shelf products); and (2) authorize the 

waiver of the policy in the national security interest of the United 

States. 

Installation and connection policy and procedures regarding Defense Switch Network (sec. 353) 

The House bill contained a provision (sec. 354) that would direct the Secretary of Defense to establish uniform policies and procedures throughout the Department for the installation and connection of telecom switches to the Defense Switch Network. 

The Senate amendment contained a similar provision (sec. 

348). 

The House recedes with a clarifying amendment. 

Subtitle G—Other Matters 

Distribution of monthly reports on allocation of funds within operation and maintenance budget subactivities (sec. 361) 

The House bill contained a provision (sec. 361) that would clarify that the monthly reports on operation and maintenance accounts that the Department of Defense is required to provide to 

Congress should be delivered to the congressional defense committees. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Continuation of arsenal support program initiative (sec. 362) 

The House bill contained a provision (sec. 364) that would extend the Arsenal Support Program Initiative through fiscal year 

2004. The provision also required a report from the Secretary of the 

Army evaluating the Initiative’s results. 

The Senate amendment contained an identical provision (sec. 

346). 

The conference agreement includes this provision. 

Extension of work safety demonstration program (sec. 363) 

The Senate amendment contained a provision (sec. 350) that 

would extend by one year the authority for the work safety demonstration program through September 30, 2003. 

The House bill contained no similar provision. 

The House recedes. 

Condition on authority of Defense Security Service to impose fees on 

fee-for-service basis (sec. 364) 

The House bill contained a provision (sec. 363) that would prohibit the Secretary of Defense from converting the Defense Security 

Service (DSS) to a working capital-funded entity until the Secretary certifies that DSS has the requisite financial systems to support such operations. 

The Senate amendment contained no similar provision. 

630

The Senate recedes with an amendment clarifying that DSS is 

currently a working capital-funded entity but cannot impose fees 

on a fee-for-service basis until proper certification is provided. 

Logistics support and services for weapon systems contractors (sec. 

365) 

The Senate amendment contained a provision (sec. 345) that 

would allow the Defense Logistics Agency (DLA) to provide services 

to weapon systems contractors on a reimbursable basis. The authority would be limited to no more than five contracts, with a total 

value of less than $100.0 million. 

The House bill contained no similar provision. 

The House recedes with an amendment specifying that, in accordance with section 2208(h), title 10, United States Code, all revenues from such contracts would be credited to DLA accounts. 

Training range sustainment plan, Global Status of Resources and 

Training System, and training range inventory (sec. 366) 

The House bill contained a provision (sec. 365) that would require the Secretary of Defense to develop a comprehensive plan for 

addressing training constraints caused by limitations on the use of 

military lands, marine areas, and airspace; a plan to modify the 

Global Status of Resources and Training System to better reflect 

the impact of such training constraints; and a training range inventory for each of the military services. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment clarifying the content 

and timing of the required plans and reports. 

Engineering study and environmental analysis of road modifications in vicinity of Fort Belvoir, Virginia (sec. 367) 

The Senate amendment contained a provision (sec. 349) that would provide $5.0 million to the Secretary of the Army to conduct 

a preliminary engineering and environmental study on the feasibility of providing an alternative to Beulah Road (State Route 613) 

and Woodlawn Road (State Route 618) at Fort Belvoir, Virginia, 

which were closed as a force protection measure. The Secretary 

would submit a summary report on the study and analysis to Congress with the budget justification materials for the fiscal year 

2006 budget request. 

The House bill contained no similar provision. 

The House recedes. 

The conferees are aware that other communities have been adversely impacted by the closure of public roads that traverse military installations and believe the communities that have lost access 

to thoroughfares constructed and maintained with local tax dollars 

should be appropriately compensated for this loss. The conferees 

understand that Fort Dix, New Jersey, and Fort Drum, New York, 

are among the communities affected by road closures. The conferees are also aware of a long-standing issue of road access on Andersen Air Force Base, Guam. 

Accordingly, the conferees direct the Secretary of Defense to 

identify all localities affected by the closures of public roads on 

military installations to enhance force protection, to work with 

631

local communities to find appropriate means, including compensation, to address these situations, and to include those measures in 

future budget requests as necessary. 

Reauthorization of warranty claims recovery pilot program (sec. 

368) 

The conference agreement includes a provision (sec. 368) that 

would extend the warranty claims pilot program through September 30, 2004. 

Expanded eligibility for loan, gift, or exchange of documents, historical artifacts, and condemned or obsolete combat materiel (sec. 

369)

The conference agreement includes a provision (sec. 369) that 

would include nonprofit military aviation heritage foundations and 

associations among the entities eligible to receive transfers of excess Department of Defense (DOD) materiel. 

The conferees authorize this expansion with the recognition 

that section 2572(d)(2) of title 10, United States Code, prescribes 

very limited circumstances under which DOD may bear the costs 

of demilitarizing equipment to make it safe for transfer. The conferees further note that, under existing statute, DOD is not responsible for the costs of operating, maintaining, or repairing equipment once it has been transferred. The conferees direct that any 

transfers made under this section be conducted in accordance with 

DOD regulations pertaining to the safe and secure operation of 

transferred equipment. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Calculation of five-year period of limitation for Navy-Marine Corps 

Intranet contract 

The House bill contained a provision (sec. 351) that would authorize the Secretary of the Navy to extend the current contract for 

Navy-Marine Corps Intranet (NMCI) services from the current five 

years to seven years. 

The Senate amendment contained a similar provision (sec. 

342). 

Because similar legislation has been enacted (Public Law 107–

254), the conference report does not include either provision. 

Clarification of required core logistics capabilities 

The House bill contained a provision (sec. 335) that would expand the definition of core logistics capabilities to include acquisition logistics, supply management, system engineering, maintenance, and modification management. 

The Senate amendment contained no similar provision. 

The House recedes. 

Cleanup of unexploded ordnance on Kaho’olawe Island, Hawaii 

The Senate amendment contained a provision (sec. 314) that 

would require the Secretary of the Navy to continue cleanup activities on Kaho’olawe Island, Hawaii, until the Navy has inspected 

and assessed 100 percent of the island, cleared 75 percent of the 

632

island in accordance with Tier One standards, and cleared 25 percent of the island in accordance with Tier Two standards. 

The House bill contained no similar provision. 

The Senate recedes. 

Impact aid for children with severe disabilities 

The Senate amendment contained a provision (sec. 332) that would authorize $5.0 million for continuation of the Department of 

Defense assistance program to local educational agencies that benefit dependents with severe disabilities. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

The conferees agree to authorize $5.0 million of the funds 

available for Operation and Maintenance, Defense-Wide, for continuation of the Department of Defense assistance program to local 

educational agencies that benefit dependents with severe disabilities. 

Lift support for mine warfare ships and other vessels 

The Senate amendment contained a provision (sec. 351) that would authorize $10.0 million to be made available for implementing recommendations resulting from the Navy’s Non-self 

Deployable Watercraft (NSDW) Study and the Joint Chiefs of Staff 

Focused Logistics Study, which are to determine the requirements 

of the Navy to provide lift support for mine warfare ships and other 

vessels. The provision would also reduce funding for mine countermeasures ship cradles by the same amount. 

The House bill contained no similar provision. 

The Senate recedes on the provision. 

The conferees agree to authorize $10.0 million for implementing recommendations resulting from the Navy’s Non-self 

Deployable Watercraft (NSDW) Study and the Joint Chiefs of Staff 

Focused Logistics Study and to reduce funding for mine countermeasures ship cradles by the same amount. The conferees are specifically not directing a particular solution to meeting lift support 

requirements. 

Military readiness and the conservation of protected species 

The House bill contained a provision (sec. 312) that would 

amend the Endangered Species Act of 1973 (Public Law 93–205) to 

prohibit further designations of critical habitat for endangered species in areas for which an Integrated Natural Resources Management Plan has been prepared under the Sikes Act (Public Law 86–

797). The House provision would further amend the Endangered 

Species Act to require regulatory agencies to consider national security concerns in addition to economic impact prior to designating 

future areas of critical habitat. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees believe that all federal agencies, including the 

Armed Forces, should be required to comply with all federal environmental laws. However, due to their unique military training 

and operational responsibilities, the Armed Forces often face 

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ronmental laws and sustain military readiness. Examples of these 

challenges include increasing limitations and restrictions on lands 

and waters which are currently set aside for military training exercises as well as significant restrictions on the times and conditions 

under which military training exercises can be conducted. The conferees are concerned that future designations of critical habitat on 

military training ranges could have an adverse impact on the military’s readiness capabilities. 

The conferees strongly endorse the consultative process 

through which the military services work with the Fish and Wildlife Service to ensure the protection of threatened and endangered 

species by adopting effective Integrated Natural Resources Management Plans at military installations. The conferees are concerned that questions have been raised regarding whether the protections provided by these Integrated Natural Resources Management Plans, such as the one at Marine Corps Base, Camp Pendleton, California, are sufficient to avoid the need for future designations of critical habitat that could adversely affect military 

training. Nevertheless, the conferees encourage the Department of 

the Interior and the Department of Defense to pursue a cooperative 

approach in managing natural and cultural resources throughout 

the Armed Forces. 

The conferees direct the Secretary of Defense to provide the 

Committees on Armed Services of the Senate and the House of 

Representatives recommendations for any legislative proposals that 

he considers necessary to accomplish these stated goals. 

Minimum deduction from pay of certain members of the Armed 

Forces to support Armed Forces Retirement Home 

The House bill contained a provision (sec. 362) that would require that the minimum amount deducted monthly from the pay of 

all active duty enlisted, warrant officer, and limited duty officer 

personnel for the support of the Armed Forces Retirement Home be 

no less than $1. 

The Senate amendment contained no similar provision. 

The House recedes. 

National Army Museum, Fort Belvoir, Virginia 

The Senate amendment contained a provision (sec. 306) that 

would authorize $100,000 to initiate planning and development efforts for the National Army Museum at Fort Belvoir, Virginia. 

The House bill contained no similar provision. 

The Senate recedes. 

Navy data conversion activities 

The Senate amendment contained a provision (sec. 352) that 

would authorize $1.5 million in Navy operation and maintenance 

funds for the Navy Data Conversion and Management Laboratory. 

The provision would offset this increase with a reduction of $1.5 

million from Army operation and maintenance funds for utilities 

privatization. 

The House bill contained no similar provision. 

The Senate recedes. 

634

Navy Pilot Human Resources Call Center, Cutler, Maine 

The Senate amendment contained a provision (sec. 305) that would authorize $1.5 million of Navy operation and maintenance 

funds for the Navy Pilot Human Resources Call Center in Cutler, 

Maine. 

The House bill contained no similar provision. 

The Senate recedes on the provision. The Navy operation and 

maintenance table contained in this report describes the conference 

agreement for the Cutler call center. 

Range Enhancement Initiative Fund 

The Senate amendment contained a provision (sec. 304) that would authorize $20.0 million to create a new Range Enhancement 

Initiative Fund from which funds would be drawn to purchase 

easements or cover other costs incurred by the military departments resulting from agreements entered into under the authorities contained in section 2811 of the Senate amendment. 

The House bill contained no similar provision. 

The Senate recedes. 

Reimbursement for reserve component intelligence support 

The Senate amendment contained a provision (sec. 343) that 

would authorize the use of operation and maintenance funds of the 

military departments, combatant commands, and defense agencies 

to reimburse pay, allowances and other expenses when members of 

the National Guard and Reserve provide intelligence or counterintelligence support to such departments, commands, or agencies. 

The House bill contained no similar provision. 

The Senate recedes.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS LEGISLATIVE

PROVISIONS ADOPTED

Subtitle A—Active Forces 

End strengths for active forces (sec. 401) 

The House bill contained a provision (sec. 401) that would authorize the following end strengths for active duty personnel of the 

Armed Forces as of September 30, 2003:

Service FY 2002 authorized 

FY 2003 Change from 

Request 

Committee 

recommendation 

FY 2003 request FY 2002 authorized 

Army ...................................................................... 480,000 480,000 484,800 4,800 4,800

Navy ....................................................................... 376,000 375,700 379,457 3,757 3,457 

USMC ..................................................................... 172,600 175,000 175,000 0 2,400

Air Force ................................................................ 358,800 359,000 360,795 1,795 1,995

DOD Total ................................................. 1,387,400 1,389,700 1,400,052 10,352 12,652 

The Senate amendment contained a provision (sec. 401) that 

would authorize the following end strengths: Army, 485,000; Navy, 

379,200; United States Marine Corps, 175,000; Air Force, 362,500. 

The Senate recedes with an amendment that would authorize 

the following end strengths:

635

Service FY 2002 authorized 

FY 2003 Change from 

Request 

Committee 

recommendation 

FY 2003 request FY 2002 authorized 

Army ...................................................................... 480,000 480,000 480,000 0 0

Navy ....................................................................... 376,000 375,700 375,700 0 ¥300

USMC ..................................................................... 172,600 175,000 175,000 0 2,400

Air Force ................................................................ 358,800 359,000 359,000 0 200

DOD Total ................................................. 1,387,400 1,389,700 1,389,700 0 2,300

The conferees believe that the active duty end strengths should 

be increased substantially. This belief is based not only on the testimony of senior military officers who describe their personnel as 

stretched to the limit by ever-expanding missions and operations 

tempo, but also on the fact that more than 70,000 mobilized reservists remain on active duty a year after the start of the war on terrorism, and active duty tours for thousands more have been extended for a second year because the active components lack the 

manpower to meet requirements. 

Furthermore, the conferees are disappointed that due to insufficient additional appropriations, the conference report was unable 

to include the increased active end strength authorizations recommended by the House and Senate in their separate bills. 

That notwithstanding, in order to give the service secretaries 

and the Secretary of Defense more flexibility to man the force to 

meet mission requirements, the conferees have, in separate provisions, expanded the authority of the Secretary of Defense to increase active end strength from the current two percent to three 

percent above authorized levels. The conferees have also created 

new authority for the service secretaries, recognizing the practical 

limitations they face, to increase active end strength by two percent above authorized levels. 

In recognition of the conferees’ strong view that active duty 

end strength should not be reduced any further as well as the Secretary of Defense’s apparent commitment to hold end strengths at 

or above the requested levels, another provision in this conference 

agreement (sec. 402) eliminates the Secretary of Defense’s current 

authority to reduce end strength below authorized levels. 

Revision in permanent end strength minimum levels (sec. 402) 

The House bill contained a provision (sec. 402) that would establish end strength floors for the active forces equivalent to the 

end strengths recommended by the committee in section 401. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would establish 

end strength floors for the active forces equivalent to the end 

strengths contained in the budget request and would eliminate the 

Secretary of Defense’s current authority to reduce end strength 

below authorized levels. 

Expanded authority for administrative increases in statutory activeduty end strengths (sec. 403)

The House bill contained a provision (sec. 403) that would authorize the secretaries of the military departments to increase the 

636

authorized active duty end strength of their respective military 

service by up to one percent. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would expand the 

authority of the Secretary of Defense to increase active duty end 

strength from the current two percent to three percent above authorized levels and would provide new authority for the service secretaries to increase active duty end strength by two percent above 

authorized levels. 

This provision reflects the conferees’ belief that the requested 

end strength is not sufficient and gives the service secretaries and 

the Secretary of Defense greater flexibility to increase end strength 

as needed to meet mission requirements. 

General and flag officer management (sec. 404) 

The House bill contained a provision (sec. 404) that would exclude an officer serving in the position of Senior Military Assistant 

to the Secretary of Defense from the limitation on active duty officers in grades above major general and rear admiral, increase by 

one the limit on the number of lieutenant generals authorized for 

the Marine Corps, require that the Chief of the Veterinary Corps 

of the Army serve in the grade of brigadier general, and require the 

Secretary of Defense to review and report to Congress on active 

duty and reserve general and flag officer authorizations. The grade 

requirements of this provision would be effective on the date of receipt by Congress of the report required by this provision. 

The Senate amendment contained a provision (sec. 403) that 

would authorize one additional Marine Corps general officer in a 

grade above major general. 

The Senate recedes with an amendment that would exclude an 

officer serving in the position of Senior Military Assistant to the 

Secretary of Defense from the limitation on active duty officers in 

grades above major general and rear admiral, increase by one the 

limit on the number of lieutenant generals authorized for the Marine Corps, and require the Secretary of Defense to review and report to Congress on active duty and reserve general and flag officer 

authorizations. The provision regarding the grade of the Senior 

Military Assistant to the Secretary of Defense would be effective on 

the date of receipt by Congress of the report on active duty and reserve general and flag officer authorizations. The provisions regarding the number of lieutenant generals in the Marine Corps would 

be effective upon date of enactment. The grade of the Chief of the 

Veterinary Corps of the Army is addressed in a separate provision. 

Extension of certain authorities relating to management of numbers 

of general and flag officers in certain grades (sec. 405) 

The House bill contained a provision (sec. 405) that would extend to December 31, 2004, three expiring authorities relating to 

general and flag officer management. Those authorities provide for: 

the process by which the Secretary of Defense and Chairman of the 

Joint Chiefs of Staff fill vacant senior joint four-star general and 

flag officer positions; the exemption of the senior joint four-star 

general and flag officers appointed by that process from the general 

and flag officer limits that apply to the military services; and the 

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process by which the Chairman of the Joint Chiefs of Staff designates and fills 12 general and flag officer positions on the joint 

staff and 10 reserve component general and flag positions on the 

staffs of the commanders of the unified and specified commands. 

The Senate amendment contained a provision (sec. 501) that 

would extend these authorities to December 31, 2003. 

The Senate recedes. 

Increase in authorized strengths for Marine Corps officers on active 

duty in the grade of colonel (sec. 406) 

The Senate amendment contained a provision (sec. 404) that 

would increase by 40 the authorized strength for colonels on active 

duty in the Marine Corps. 

The House bill contained no similar provision. 

The House recedes. 

Subtitle B—Reserve Forces 

End strengths for Selected Reserve (sec. 411) 

The House bill contained a provision (sec. 411) that would authorize the following end strengths for the selected reserve personnel, including the end strength for reserves on active duty in 

support of the reserves, as of September 30, 2003:

Service FY 2002 authorized 

FY 2003 Change from 

Request 

Committee recommendation 

(limit) 

FY 2003 request FY 2002 authorized 

Army National Guard ......................... 350,000 350,000 350,000 0 0 

Army Reserve ..................................... 205,000 205,000 205,000 0 0 

Naval Reserve ................................... 87,000 87,800 87,800 0 800 

Marine Corps Reserve ....................... 39,558 39,558 39,558 0 0 

Air National Guard ............................ 108,400 106,600 106,600 0 ¥1,800 

Air Force Reserve .............................. 74,700 75,600 75,600 0 900

DOD Total ............................. 864,658 864,558 864,558 0 ¥100 

Coast Guard Reserve ........................ 8,000 9,000 9,000 0 1,000 

The Senate amendment contained an identical provision. The 

conference agreement includes this provision. 

End strengths for Reserves on active duty in support of the reserves 

(sec. 412) 

The House bill contained a provision (sec. 412) that would authorize the following end strengths for reserves on active duty in 

support of the reserves as of September 30, 2003:

Service FY 2002 author- ized 

FY 2003 Change from 

Request Committee recommendation FY 2003 request FY 2002 author- ized 

Army National Guard ......................... 23,698 23,768 24,562 794 864 

Army Reserve ..................................... 13,406 13,588 14,070 482 664 

Naval Reserve ................................... 14,811 14,572 14,572 0 ¥239 

Marine Corps Reserve ....................... 2,261 2,261 2,261 0 0 

Air National Guard ............................ 11,591 11,697 11,697 0 106 

Air Force Reserve .............................. 1,437 1,498 1,498 0 61

DOD Total ............................. 67,204 67,384 68,660 1,276 1,456 

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The Senate amendment contained a provision (sec. 412) that 

would authorize the following end strengths: the Army National 

Guard of the United States, 24,492; the Army Reserve, 13,888; the 

Naval Reserve, 14,572; the Marine Corps Reserve, 2,261; the Air 

National Guard of the United States, 11,727; the Air Force Reserve, 1,498. 

The Senate recedes with an amendment that would authorize 

the following end strengths for reserves on active duty in support 

of the reserves as of September 30, 2003:

Service FY 2002 authorized 

FY 2003 Change from 

Request Committee recommendation FY 2003 request FY 2002 authorized 

Army National Guard ......................... 23,698 23,768 24,562 794 864 

Army Reserve ..................................... 13,406 13,588 14,070 482 664 

Naval Reserve ................................... 14,811 14,572 14,572 0 ¥239 

Marine Corps Reserve ....................... 2,261 2,261 2,261 0 0 

Air National Guard ............................ 11,591 11,697 11,727 30 136 

Air Force Reserve .............................. 1,437 1,498 1,498 0 61

DOD Total ............................. 67,204 67,384 68,690 1,306 1,486 

End strengths for military technicians (dual status) (sec. 413) 

The House bill contained a provision (sec. 413) that would authorize the following end strengths for military technicians (dual 

status) as of September 30, 2003:

Service FY 2002 author- ized 

FY 2003 Change from 

Request 

Committee recommendation (limit) 

FY 2003 request FY 2002 authorized (limit) 

Army National Guard ......................... 23,615 23,615 24,102 487 487 

Army Reserve ..................................... 6,249 6,349 6,599 250 350 

Air National Guard ............................ 22,422 22,495 22,495 0 73 

Air Force Reserve .............................. 9,818 9,911 9,911 0 93

DOD Total ............................. 62,104 62,370 63,107 737 1,003 

The Senate amendment contained an identical provision (sec. 

413). 

The conference agreement includes this provision. 

Fiscal year 2003 limitation on non-dual status technicians (sec. 414) 

The House bill contained a provision (sec. 414) that would establish the following limits on the number of non-dual status technicians as of September 30, 2003:

Service FY 2002 limit 

FY 2003 Change from 

Request 

Committee recommendation 

(limit) 

FY 2003 request FY 2002 (limit) 

Army National Guard ......................... 1,600 1,600 1,600 0 0 

Army Reserve ..................................... 1,095 995 995 0 ¥100 

Air National Guard ............................ 350 350 350 0 0 

Air Force Reserve .............................. 90 0 90 90 0

DOD Total ............................. 3,135 2,945 3,035 90 ¥100 

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The Senate amendment contained a provision (sec. 414) that 

would establish numerical limits on the number of non-dual status 

technicians who may be employed in the Department of Defense as 

of September 30, 2003, as follows: (1) Army National Guard of the 

United States, 1,600; (2) Air National Guard of the United States, 

350; (3) Army Reserve, 995; and Air Force Reserve, 0. 

The Senate recedes. 

Subtitle C—Authorization of Appropriations 

Authorization of appropriations for military personnel (sec. 421) 

The House bill contained a provision (sec. 421) that would authorize a total of $93,725.0 million to be appropriated to the Department of Defense for military personnel. 

The Senate amendment included a similar provision (sec. 421) 

that would authorize a total of $94.4 billion to be appropriated to 

the Department of Defense for military personnel. 

The House recedes with an amendment that would authorize 

$93,829.5 million to be appropriated to the Department of Defense 

for military personnel. 

The conferees provide the following itemization of the increases 

and decreases from the budget request related to the military personnel accounts:

[Additions in millions] 

Military Personnel Funding in DERF .................................................................. $22.9 

ARNG National Guard AGR end strength increase ........................................... 28.4 

USAR AGR end strength increase ........................................................................ 11.5 

ANG AGR end strength increase .......................................................................... 0.7 

Total .................................................................................................................... 63.5 

[Reductions in millions] 

Accrual payment to Uniformed Services Retiree Health Care Fund ................ $405.0 

Savings from DOD proposals not adopted ........................................................... 14.8 

Repeal of special compensation for severely disabled ......................................... 53.9 

Selective reenlistment bonus ................................................................................ 16.5 

$30K Lump Sum Bonus ........................................................................................ 28.9 

Enlistment bonus ................................................................................................... 10.5 

Total .................................................................................................................... 529.6

LEGISLATIVE PROVISIONS NOT ADOPTED

Authority to increase strength and grade limitations to account for 

reserve component members on active duty in support of a contingency operation 

The Senate amendment contained a provision (sec. 402) that 

would authorize the Secretary of Defense to increase the limit on 

active duty end strength by the number of members of the reserve 

components serving on active duty, with their consent, in support 

of a contingency operation. 

The House bill contained no similar provision. 

The Senate recedes.

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TITLE V—MILITARY PERSONNEL POLICY

ITEMS OF SPECIAL INTEREST

Department of Defense education partnerships 

The conferees recognize the importance of the continued 

growth and development of partnerships, using web-based technology, between the Department of Defense, high schools, and institutions of higher education in order to ensure that the services 

are able to effectively recruit and retain the most qualified service 

members. The conferees are also aware that the Department of Defense and the military services already have a number of ongoing 

initiatives to foster such education partnerships. 

The conferees encourage the Department to pursue new partnerships, in a manner that is fully coordinated with ongoing initiatives, that will facilitate the enrollment and transfer of students 

with full recognition of credits among two-year and four-year institutions of higher education. Such new efforts could enhance education opportunities for minority men and women, a demographic 

that currently makes up nearly 40 percent of the enlisted members 

in the armed services. 

Enrollments at Air Force Institute of Technology and Naval Postgraduate School 

The conferees are concerned that the Air Force and the Navy 

are not heeding the previous directions, as specified in the Floyd 

D. Spence National Defense Authorization Act for Fiscal Year 2001 

(Public Law 106–398) and the National Defense Authorization Act 

for Fiscal Year 2002 (Public Law 107–107), to produce sufficient 

numbers of military personnel with the requisite graduate level 

education in science, engineering, and technology. 

The Air Force Institute of Technology and the Naval Postgraduate School are uniquely qualified to meet these graduate education requirements with specialized, military-relevant curricula. 

As noted by the Secretary of the Air Force and the Secretary of the 

Navy in March 2002, the Air Force and Navy are committed to 

maintaining each school as world-class, higher education institutions underpinned by their unique service heritage and character. 

Despite such commitment by the secretaries, the conferees remain concerned that neither service is fully utilizing the military 

student enrollment capacity of these two institutions. Therefore, 

the conferees direct the Secretaries of the Air Force and the Navy 

to report 120 days after enactment of this Act their plans to increase the military student enrollment at both schools. 

STARBASE resource and training center 

The Department of Defense STARBASE Program is an effective community outreach program for youths ages six through 18 

that is aimed at improving math and science skills. It also addresses drug use prevention, health, self-esteem, and life skills and exposes youth, parents, and teachers to the value of military service. 

It currently operates at 39 locations associated with active, guard, 

and reserve commands throughout the United States. At least 

seven additional locations are seeking STARBASE programs. 

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The conferees are encouraged that the Department is looking 

at ways to ensure that STARBASE academies are complying with 

program standardization requirements and maintaining quality 

control. The conferees urge the Department of Defense to implement a cost-effective system for providing program standardization 

and quality control during fiscal year 2003, to include consideration 

of establishing a STARBASE resource and training center. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Officer Personnel Policy 

Extension of good-of-the-service waiver authority for officers appointed to a Reserve Chief or Guard Director position (sec. 501) 

The House bill contained a provision (sec. 502) that would extend to December 31, 2004, the authority of the Secretary of Defense to waive the requirement for significant joint experience as 

a qualification for appointment as the Chief of the Army, Navy, Air 

Force, or Marine Corps Reserve or as Director of the Army or Air 

National Guard. The recommended provision would also require 

the Secretary of Defense to report to Congress the steps that he, 

together with the Chairman of the Joint Chiefs and the secretaries 

of the military departments, will take to ensure that no further extensions of this waiver authority will be required after 2004.

The Senate amendment contained a similar provision (sec. 502) 

that would extend the waiver authority from October 1, 2003 to December 31, 2003. 

The Senate recedes with an amendment that would require the 

Secretary of Defense to submit by May 1, 2003, a report to the 

Committees on Armed Services of the Senate and the House of 

Representatives indicating what steps have been taken to ensure 

that Reserve and Guard officers receive significant joint duty experience and a date by which a waiver will no longer be required. 

Exclusion of certain officers from limitation on authority to grant a 

waiver of required completion or sequencing for joint professional military education (sec. 502) 

The Senate amendment contained a provision (sec. 503) that 

would repeal the 10 percent limitation on authority to grant officers, in grades below brigadier general and rear admiral (lower 

half), a waiver of the required sequence of joint professional military education and joint duty assignment. 

The House bill contained no similar provision. 

The House recedes with an amendment that would exclude 

only officers nominated and selected for the joint specialty pursuant to section 521 of the National Defense Authorization Act of Fiscal Year 2002 (Public Law 107–107) from the 10 percent limitation 

on authority to grant officers, in grades below brigadier general 

and rear admiral (lower half), a waiver of the required sequence of 

joint professional military education and joint duty assignment. 

This authority would expire on October 1, 2006. 

642

Extension and codification of authority for recall of retired aviators 

to active duty (sec. 503) 

The Senate amendment contained a provision (sec. 504) that 

would extend to September 30, 2008, the temporary authority for 

recall of retired aviators to active duty. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment that would 

terminate the authority to order retired aviators to active duty on 

September 30, 2008, and would allow officers ordered to active duty 

before that date to complete the period of active duty specified in 

an agreement entered into by the officer and the secretary concerned, even when that period of active duty extends beyond September 30, 2008. 

Grades for certain positions (sec. 504) 

The Senate amendment contained a provision (sec. 505) that 

would require that the heads of the Nurse Corps for the Army, 

Navy, and Air Force be appointed in the regular grade of major 

general or rear admiral. The Senate amendment contained another 

provision (sec. 906) that would provide statutory authorization for 

the Army Veterinary Corps and authorize appointment of the officer serving in this position in the regular grade of brigadier general. 

The House bill contained a provision (sec. 404(c)) that would 

require that the Chief of the Veterinary Corps of the Army serve 

in the grade of brigadier general. 

The House recedes with an amendment that would require 

that the heads of the Nurse Corps for the Army, Navy, and Air 

Force be appointed in the regular grade of major general or rear 

admiral and that the Chief of the Veterinary Corps of the Army 

serve in the grade of brigadier general. The amendment would also 

establish the positions of Chief of Legislative Liaison in the Departments of the Army and the Air Force to be filled by officers in the 

grade of major general; Chief of Legislative Affairs in the Department of the Navy to be filled by an officer in the grade of rear admiral; and Legislative Assistant to the Commandant of the Marine 

Corps to be filled by an officer in a grade above colonel. 

Reinstatement of authority to reduce three-year time-ingrade requirement for retirement in grade for officers in grades above 

major and lieutenant commander (sec. 505) 

The Senate amendment contained a provision (sec. 506) that 

would authorize, during the period from September 1, 2002, until 

December 31, 2004, waiver of one year of the three-year time-ingrade requirement for retirement for officers in grades above major 

and lieutenant commander. The amendment would require advance 

notice to the Committees on Armed Services of the Senate and 

House of Representatives and would authorize the Deputy Under 

Secretary of Defense for Personnel and Readiness to exercise this 

authority for flag and general officers and the service secretaries 

or assistant secretaries responsible for manpower and reserve affairs to exercise this authority for retirements in grades of lieutenant colonel and colonel, or, in the case of the Navy, commander and 

captain. 

643

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

the Secretary of Defense to authorize the service secretaries to reduce the time-in-grade requirement for retirement to no less than 

two years for retirements effective between October 1, 2002, and 

December 31, 2003. The amendment would authorize a service secretary to approve an early retirement of a flag or general officer 

only if approved by the Secretary of Defense or a Senate- confirmed 

civilian official in the Office of the Secretary of Defense. The 

amendment would require advance notice to the Committees on 

Armed Services of the Senate and the House of Representatives of 

the exercise of this authority for officers retired in general of flag 

officer grades. 

Authority to require that an officer take leave pending review of a 

recommendation for removal by a board of inquiry (sec. 506) 

The Senate amendment contained a provision (sec. 552) that 

would authorize the service secretaries to require an officer to take 

leave (including excess leave) while awaiting a secretary’s action on 

a board of inquiry’s recommendation that the officer not be retained on active duty. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Subtitle B—Reserve Component Management 

Reviews of National Guard strength accounting and management 

and other issues (sec. 511) 

The House bill contained a provision (sec. 511) that would require the Comptroller General to submit a report to Congress on 

management of the National Guard. The recommended provision 

would also require the Secretary of Defense to submit a report to 

Congress on the differing Army and Air Force policies for taking 

adverse administrative actions against National Guard officers in 

a State status. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

Courts-martial for the National Guard when not in Federal service 

(sec. 512) 

The House bill contained a provision (sec. 512) that would update and streamline the administration of military justice in the 

National Guard when it is not in a federal status and would require the Secretary of Defense to develop a model state Uniform 

Code of Military Justice and a model state Manual for CourtsMartial. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

644

Fiscal year 2003 funding for military personnel costs of reserve component Special Operations Forces personnel engaged in humanitarian assistance activities relating to clearing of landmines 

(sec. 513) 

The Senate amendment contained a provision (sec. 341) that 

would amend section 401(c) of title 10, United States Code, to allow 

up to 10 percent of the funding for a fiscal year for humanitarian 

and civic assistance to be expended for the pay and allowances of 

reserve component personnel of the Special Operations Command 

(SOCOM) performing duty in connection with training and activities related to the clearing of landmines for humanitarian purposes. 

The House bill contained no similar provision. 

The House recedes with an amendment that authorizes for fiscal year 2003 funds appropriated to a military department for reserve component personnel to reimburse military personnel expenses of Special Operations Forces of reserve components engaged 

in humanitarian demining training and activities. The total expenses incurred in this way cannot exceed 10 percent of the operation and maintenance funding for humanitarian demining, and 

the military services must be fully reimbursed. The conferees direct 

the Secretary of Defense, as part of the fiscal year 2004 budget request, to submit a legislative proposal that ensures that the military personnel expenses of active and reserve components employed 

in humanitarian demining activities are defined in detail and budgeted, authorized, and appropriated from military personnel accounts. 

Use of Reserves to perform duties relating to defense against terrorism (sec. 514) 

The Senate amendment contained a provision (sec. 1043) that 

would change the definition of the term ‘‘weapons of mass destruction’’ in sections 12304 and 12310 of title 10, United States Code, 

so as to include any large conventional explosive that is designed 

to produce catastrophic loss of life or property. 

The House bill contained no similar provision. 

The House recedes with an amendment that would not change 

the definition of the term ‘‘weapons of mass destruction’’ but would 

amend sections 12303 and 12310 of title 10, United States Code, 

to authorize the use of the reserves to perform duties relating to 

defense against a terrorist attack or a threatened terrorist attack 

that results, or could result, in catastrophic loss of life or property. 

Repeal of prohibition on use of Air Force Reserve AGR personnel for 

Air Force base security functions (sec. 515)

The Senate amendment contained a provision (sec. 513) that 

would repeal the prohibition on the use of Air Force Reserve AGR 

personnel for Air Force base security functions. 

The House bill contained no similar provision. 

The House recedes. 

645

Subtitle C—Reserve Component Officer Personnel Policy 

Eligibility for consideration for promotion to grade of major general 

for certain reserve component brigadier generals who do not 

otherwise qualify for consideration for promotion under the oneyear rule (sec. 521) 

The House bill contained a provision (sec. 522) that would permit reserve brigadier generals of the Army and Air Force to be eligible for promotion with less than one year on the reserve active 

status list or the active-duty list (or combination of both lists) when 

the following three factors apply to the officer: 

(1) The officer had been transferred from an inactive status to 

the active status list during the one-year period preceding the date 

of the convening of the promotion board. 

(2) The officer had been in an inactive status for less than one 

year immediately before the officer’s most recent transfer to an active status. 

(3) The officer had continuously served for at least one year on 

the reserve active status list or the active duty list (or a combination of both lists) before the officer’s most recent transfer to an inactive status. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Authority for limited extension of medical deferment of mandatory 

retirement or separation of reserve component officers (sec. 522) 

The Senate amendment contained a provision (sec. 512) that 

would authorize the service secretaries to defer the mandatory retirement or separation of a Reserve component officer for 30 days 

after completion of an evaluation requiring hospitalization or medical observation to determine the officer’s entitlement to retirement 

or separation for physical disability. 

The House bill contained a similar provision (sec. 524). 

The House recedes with a technical amendment. 

Subtitle D—Enlistment, Education, and Training Programs 

Enlistment incentives for pursuit of skills to facilitate national service (sec. 531) 

The Senate amendment contained a provision (sec. 541) that 

would authorize unique incentives to encourage individuals to volunteer to serve the Nation through enlisting in the Armed Forces. 

Individuals who volunteer under this program would be required to 

serve on active duty for 15 months after completion of initial entry 

training and could complete the remainder of their military service 

obligation by choosing service on active duty, in the Selected Reserve, in the Individual Ready Reserve, or in another national service program designated by the Secretary of Defense. Participants 

would be required to meet all eligibility requirements for military 

service and would elect one of the following incentives: (1) a $5000 

bonus payable after completion of 15 months of active duty, (2) repayment of a qualifying student loan not to exceed $18,000, (3) an 

educational allowance at the monthly rate payable under the Montgomery GI Bill for 12 months, or (4) an educational allowance of 

646

two-thirds of the monthly rate payable under the Montgomery GI 

Bill for 36 months. Program participants who are otherwise qualified and volunteer to continue serving on active duty may be considered for reenlistment or extension on active duty and any additional benefits for which they may be eligible. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require an 

enlistee, upon completion of the initial obligated period of service, 

to serve an additional period on active duty as determined by the 

Secretary of Defense or 24 months in an active status in the Selected Reserve, then to serve the remaining period of obligated 

service on active duty, in the Selected Reserve, in the Individual 

Ready Reserve, in the Peace Corps, Americorps, or other national 

service program, or some combination of these. The amendment 

would also change the bonus amount for 36 months of educational 

assistance from two-thirds to one-half of the monthly rate payable 

for basic educational assistance under the Montgomery GI Bill. 

Authority for phased increase to 4,400 in authorized strengths for 

the service academies (sec. 532) 

The House bill contained a provision (sec. 531) that would permit the secretaries of the military departments, beginning with 

classes entering the service academies during the 2003–2004 academic year, to increase the end strengths for cadets or midshipmen 

from the current limit of 4,000 to 4,400 in annual increments of up 

to 100. 

The Senate amendment contained a similar provision (sec. 

521). 

The Senate recedes. 

Enhancement of reserve component delayed training program (sec. 

533) 

The House bill contained a provision (sec. 532) that would authorize members who enlist in the reserve delayed training program to remain in that program for one year, a full three months 

longer than authorized in current law. 

The Senate amendment contained a similar provision (sec. 

511). 

The Senate recedes. 

Review of Armed Forces programs for preparation for, participation 

in, and conduct of athletic competitions (sec. 534) 

The House bill contained a provision (sec. 533) that would authorize members and units of the National Guard to use appropriated funds to conduct and participate in qualifying athletic and 

small arms competitions. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Secretary of Defense to conduct a comprehensive review of the programs of the active and reserve components of the Armed Forces 

for preparation for, participation in, and conduct of athletic competitions. The amendment would also require the Secretary to report to the Committees on Armed Services of the Senate and the 

House of Representatives by March 3, 2003, on: (1) the adequacy 

647

of funding sources for athletic competitions, (2) recommendations 

regarding limitations on the use of the funding sources or inadequacies in the funding for athletic competitions, (3) an assessment 

of, and recommendations for, achieving consistent funding and policy treatment regarding the participation of active and reserve component personnel in athletic competitions, and (4) any recommended legislation. 

Repeal of bar to eligibility of Army College First Program participants for benefits under student loan repayment program (sec. 

535) 

The conference agreement includes a provision that would repeal the bar to eligibility for Educational Loan Repayment Programs for persons receiving allowances for participating in the College First Program. 

Subtitle E—Decorations, Awards, and Commendations 

Waiver of time limitations for award of Army Distinguished-Service 

Cross to certain persons (sec. 541) 

The Senate amendment contained a provision (sec. 531) that 

would waive the statutory time limits for award of military decorations to certain individuals who have been recommended by the 

service secretaries for these awards. 

The House bill contained a similar provision (sec. 541). 

The House recedes with an amendment that would remove the 

waiver of time limit for awards of the Distinguished Flying Cross 

of the Navy because the time limit for this award is not set forth 

in statute and may be waived by the Secretary of the Navy. 

Option to convert award of Armed Forces Expeditionary Medal 

awarded for Operation Frequent Wind to Vietnam Service 

Medal (sec. 542) 

The House bill contained a provision (sec. 542) that would authorize eligible veterans to receive the Vietnam Service Medal in 

lieu of a previously awarded Armed Forces Expeditionary Medal for 

participation in Operation Frequent Wind, the evacuation of Vietnam conducted on April 29 and 30, 1975. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Korea Defense Service Medal (sec. 543) 

The Senate amendment contained a provision (sec. 532) that 

would require the service secretaries to issue a campaign medal, to 

be known as the Korea Defense Service Medal, to military personnel who served in the Republic of Korea, or the adjacent waters, 

between July 28, 1954, and a termination date determined by the 

Secretary of Defense, and who meet prescribed service requirements for eligibility. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

648

Commendation of military chaplains (sec. 544)

The Senate amendment contained a provision (sec. 1069) that 

would express Congress’s appreciation for the outstanding contributions of military chaplains and would authorize and request the 

President to issue a proclamation calling on the people of the 

United States to recognize the distinguished service of the Nation’s 

military chaplains. 

The House bill contained no similar provision. 

The House recedes. 

Subtitle F—Administrative Matters 

Staffing and funding for Defense Prisoner of War/Missing Personnel Office (sec. 551) 

The House bill contained a provision (sec. 551) that would require the Secretary of Defense to ensure that the Defense Prisoner 

of War/Missing in Action Office (DPMO) is provided sufficient personnel and funding to enable the DPMO to fully perform its complete range of missions. The provision would also prohibit reducing 

the number of military and civilian personnel assigned or detailed 

to DPMO below the number requested in the President’s budget for 

fiscal year 2003 unless such a reduction is expressly required by 

law. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

The conferees note that the budget request for fiscal year 2003 

provides for 46 military personnel and 69 civilian personnel and includes a funding request for $16.0 million. 

Three-year freeze on reductions of personnel of agencies responsible 

for review and correction of military records (sec. 552) 

The House bill contained a provision (sec. 552) that would preclude the secretaries of the military departments from reducing the 

number of military and civilian personnel assigned to duty within 

the review boards agencies through fiscal year 2005 until 90 days 

after the secretary of the military department concerned submits a 

report that describes the proposed reduction, provides the rationale 

for the reduction, and specifies the number of personnel that will 

be assigned to the board after the reduction is complete. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Authority for acceptance of voluntary services of individuals as 

proctors for administration of Armed Services Vocational Aptitude Battery test (sec. 553) 

The House bill contained a provision (sec. 554) that would authorize the secretaries concerned to accept the voluntary services of 

educators and other individuals to assist recruiters in administering the Armed Services Vocational Aptitude Battery test to 

high school students. 

The Senate amendment contained a similar provision (sec. 

1062). 

The Senate recedes with a technical amendment. 

649

Extension of temporary early retirement authority (sec. 554) 

The conference agreement includes a provision that would extend the active force drawdown period from December 31, 2001, to 

September 1, 2002, for purposes of temporary authority to approve 

retirements of members with at least 15 but less than 20 years of 

active service. 

Subtitle G—Matters Relating to Minorities and Women in the 

Armed Forces 

Surveys of racial and ethnic issues and of gender issues in the 

Armed Forces (sec. 561) 

The Senate amendment contained a provision (sec. 551) that 

would require the Secretary of Defense to conduct two separate biennial surveys, rather than a single annual survey, to identify and 

assess racial, ethnic, and gender issues and discrimination among 

members of the Armed Forces serving on active duty and the extent (if any) of ‘‘hate group’’ activity among such members. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary of Defense to carry out four quadrennial surveys (each in 

a separate year) to identify and assess racial, ethnic, and gender 

issues and discrimination among members of the Armed Forces, active and reserve, and the extent (if any) of ‘‘hate group’’ activity 

among such members. 

Annual report on status of female members of the Armed Forces 

(sec. 562) 

The House bill contained a provision (sec. 555) that would require the Secretary of Defense to submit an annual report to the 

Committees on Armed Services of the Senate and the House of 

Representatives on the status of female members of the Armed 

Forces regarding assignments and assignment policies, deployment, 

promotion and retention rates, sexual harassment, and other personnel issues. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment clarifying the matters 

to be included in the report and requiring that the report be submitted for each of the fiscal years 2002 through 2006. 

Wear of abayas by female members of the Armed Forces in Saudi 

Arabia (sec. 563) 

The Senate amendment contained a provision (sec. 554) that 

would prohibit requiring or encouraging service members to wear 

an abaya while serving in Saudi Arabia, taking adverse action 

against members for choosing not to wear an abaya while serving 

in Saudi Arabia, and using Department of Defense funds to procure 

abayas for issuance to military personnel serving in Saudi Arabia. 

The provision would also require instruction to female service 

members ordered to duty in Saudi Arabia about this prohibition. 

The House bill contained no similar provision. 

The House recedes with an amendment that would afford more 

flexibility in the timing of instruction to service members regarding 

this provision and would delete the prohibition on taking adverse 

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action against members for choosing not to wear an abaya while 

serving in Saudi Arabia. The conferees believe that this prohibition 

against adverse action is unnecessary because service members 

could not be required or encouraged to wear an abaya if this provision is enacted. 

Subtitle H—Benefits 

Department of Defense support for persons participating in military 

funeral honors details (sec. 571) 

The House bill contained a provision (sec. 553) that would authorize the Secretary of Defense to prescribe a flat-rate daily stipend for military retirees and others who are not service members 

or government employees participating in funeral honors details. 

The stipend would be paid in lieu of separate payments for transportation and miscellaneous expenses. 

The Senate amendment contained a similar provision (sec. 

553). 

The Senate recedes with a technical amendment. 

Emergency leave of absence program (sec. 572) 

The House bill contained a provision (sec. 561) that would authorize a service member to transfer accrued leave to another member when the recipient is likely to require a prolonged absence from 

duty due to a medical condition of a family member or other hardship condition. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would authorize 

service secretaries to grant a service member a one-time emergency 

leave of absence of up to 14 days for a qualifying emergency. This 

emergency leave of absence could be granted only to prevent the 

member from entering unearned leave status or excess leave status. 

Enhanced flexibility in medical loan repayment program (sec. 573) 

The House bill contained a provision (sec. 562) that would repeal the bar against providing loan repayment benefits to participants in the Armed Forces health professions scholarship and financial assistance program and would remove the limit on the total 

benefit that may be paid. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Destinations authorized for Government paid transportation of enlisted personnel for rest and recuperation absence upon extending duty at designated locations overseas (sec. 574) 

The Senate amendment contained a provision (sec. 633) that 

would authorize enlisted personnel, who agree to extend an overseas tour for a period of not less than one year, the option of roundtrip transportation to: (1) the nearest port in the 48 contiguous 

states, or (2) an alternative destination at equal or lesser cost. 

The House bill contained a similar provision (sec. 563). 

The House recedes with a technical amendment. 

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Vehicle storage in lieu of transportation when member is ordered to 

a nonforeign duty station outside continental United States (sec. 

575) 

The House bill contained a provision (sec. 564) that would authorize members to store a privately owned vehicle when the member is ordered to a duty station in a nonforeign area outside the 

continental United States and the shipment of a vehicle is prohibited or contingent upon completion of extensive modification.

The Senate amendment contained a similar provision (sec. 

634). 

The Senate recedes. 

SUBTITLE I—REPORTS

Quadrennial quality of life review (sec. 581) 

The Senate amendment contained a provision (sec. 1034) that 

would require the Secretary of Defense to conduct a quadrennial 

quality of life review to examine the quality of life of members of 

the Armed Forces. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment. 

Report on desirability and feasibility of consolidating separate 

courses of basic instruction for judge advocates (sec. 582) 

The House bill contained a provision (sec. 572) that would require the Secretary of Defense to study the feasibility and desirability of consolidating the separate Army, Navy and Air Force 

courses of basic instruction for judge advocates at a single location. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

The conferees are aware of, and pleased with, the exceptional 

quality of the various courses of study taught at each of the separate service schools for judge advocates. The conferees expect the 

Secretary and the military departments to continue to offer judge 

advocate education of this high caliber. 

Reports on efforts to resolve status of Captain Michael Scott 

Speicher, United States Navy (sec. 583) 

The Senate amendment contained a provision (sec. 1035) that 

would require the Secretary of Defense, in consultation with the 

Secretary of State and the Director of Central Intelligence, to submit to Congress a report no later than 60 days after enactment of 

this Act and every 90 days thereafter on the efforts of the United 

States Government to determine the status of Captain Michael 

Scott Speicher, U.S. Navy. The reports would discuss direct and indirect contacts with the Government of Iraq, requests to other governments for assistance, leads, and cooperation from nongovernmental organizations or international organizations pertaining to 

resolving the status of Captain Speicher. 

The House bill contained no similar provision. 

The House recedes with an amendment that would have the 

Secretary submit a report no later than 90 days after the enactment of this Act and every 120 days thereafter, would provide for 

the reports to cease upon a final determination regarding the staVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00675 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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tus of Michael Scott Speicher by the Secretary of Defense, and 

would make other clarifying amendments. 

Report on volunteer services of members of the reserve components 

in emergency response to the terrorist attacks of September 11, 

2001 (sec. 584) 

The Senate amendment contained a provision (sec. 1039) that 

would require the Secretary of Defense to report on volunteer services performed by members of the reserve components not in an official status in response to the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require 

that the report be submitted no later than 180 days after enactment of this Act, include volunteer services performed in the vicinity of Shanksville, Pennsylvania, in responding to the crash of 

United Airlines Flight 93, and discuss any recognition that the Secretary considers appropriate. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Exemption from active status strength limitation for reserve component general and flag officers serving on active duty in certain 

joint duty assignments designated by the Chairman of the Joint 

Chiefs of Staff 

The House bill contained a provision (sec. 521) that would exempt the 10 reserve component general and flag officers who are 

serving on active duty in designated positions on the joint staffs of 

the commanders of the unified and specified commands from counting against the numbers of reserve component general and flag officers authorized by section 12004 of title 10, United States Code. 

The Senate amendment contained no similar provision. 

The House recedes. 

Matching funds requirements under National Guard Youth Challenge Program 

The House bill contained a provision (sec. 513) that would increase the amount of assistance the Department of Defense may 

provide to a state program of the National Guard Challenge Program for a fiscal year not to exceed 75 percent of the state program 

during that fiscal year. 

The Senate amendment contained no similar provision. 

The House recedes. 

Military recruiter access to institutions of higher education 

The Senate amendment contained a provision (sec. 542) that 

would encourage and facilitate military service by requiring institutions of higher education receiving assistance under the Higher 

Education Act of 1965 (Public Law 89–329) to provide military recruiters: (1) the same access to students and the institution as is 

provided to prospective employers, and (2) upon request, access to 

the names, addresses, and telephone listings of students, except for 

the information of students who have submitted a request that the 

information not be released without prior written consent. 

653

The House bill contained no similar provision. 

The Senate recedes. 

Retention of promotion eligibility for reserve component general and 

flag officers transferred to an inactive status 

The House bill contained a provision (sec. 523) that would permit reserve officers selected for promotion to major general and 

rear admiral to retain their promotion eligibility and, if otherwise 

qualified, be promoted to the higher grade upon returning to an active status from an inactive status. 

The Senate amendment contained no similar provision. 

The House recedes. 

Right of convicted accused to request sentencing by military judge 

The House bill contained a provision (sec. 571) that would 

allow a convicted accused at a court-martial composed of a military 

judge and court members to request that the sentence be adjudged 

by a military judge rather than the court members. 

The Senate amendment contained no similar provision. 

The House recedes. 

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Pay and Allowances 

Increase in basic pay for fiscal year 2003 (sec. 601) 

The House bill contained a provision (sec. 601) that would increase basic pay by a minimum of 4.1 percent for all members of 

the uniformed services and would provide additional increases to 

mid-grade and senior non-commissioned officers and mid-grade officers. 

The Senate amendment contained an identical provision (sec. 

601). 

The conference agreement includes this provision. 

Basic allowance for housing in cases of low-cost or no-cost moves 

(sec. 602) 

The Senate amendment contained a provision (sec. 603) that 

would extend to locations outside the United States the authority 

to pay the basic allowance for housing based on the member’s 

former duty assignment when the member’s reassignment is a lowcost or no-cost permanent change of station or permanent change 

of assignment. This authority currently applies only to assignments 

within the United States. 

The House bill contained a similar provision (sec. 602). 

The House recedes. 

Rate of basic allowance for subsistence for enlisted personnel occupying single Government quarters without adequate availability 

of meals (sec. 603) 

The Senate amendment contained a provision (sec. 602) that 

would authorize payment of an increased amount of basic allowance for subsistence to enlisted members who are assigned to sinVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00677 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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gle Government quarters without adequate availability of meals 

from a Government messing facility. 

The House bill contained no similar provision. 

The House recedes with a technical amendment.

Subtitle B—Bonuses and Special and Incentive Pays 

One-year extension of certain bonus and special pay authorities for 

reserve forces (sec. 611) 

The House bill contained a provision (sec. 611) that would extend the authority for the selected reserve reenlistment bonus, the 

selected reserve enlistment bonus, special pay for enlisted members 

of the selected reserve assigned to certain high priority units, the 

selected reserve affiliation bonus, the ready reserve enlistment and 

reenlistment bonus, and the prior service enlistment bonus until 

December 31, 2003. 

The Senate amendment contained an identical provision (sec. 

611). 

The conference agreement includes this provision. 

One-year extension of certain bonus and special pay authorities for 

certain health care professionals (sec. 612) 

The House bill contained a provision (sec. 612) that would extend the authority for the nurse officer candidate accession program, the accession bonus for registered nurses, the incentive special pay for nurse anesthetists, the special pay for selected reserve 

health care professionals in critically short wartime specialties, and 

the accession bonus for dental officers until December 31, 2003. 

The provision would also extend the authority for repayment of 

educational loans for certain health care professionals who serve in 

the selected reserve until January 1, 2004. 

The Senate amendment contained an identical provision (sec. 

612). 

The conference agreement includes this provision. 

One-year extension of special pay and bonus authorities for nuclear 

officers (sec. 613) 

The House bill contained a provision (sec. 613) that would extend the authority for the special pay for nuclear-qualified officers 

extending the period of active service, the nuclear career accession 

bonus, and the nuclear career annual incentive bonus until December 31, 2003. 

The Senate amendment contained an identical provision (sec. 

613). 

The conference agreement includes this provision. 

One-year extension of other bonus and special pay authorities (sec. 

614) 

The House bill contained a provision (sec. 614) that would extend the authority for the aviation officer retention bonus, the reenlistment bonus for active members, the enlistment bonus for active members, the retention bonus for members with critical military skills, and the accession bonus for new officers in critical skills 

until December 31, 2003. 

655

The Senate amendment contained an identical provision (sec. 

614). 

The conference agreement includes this provision. 

Increase in maximum rates for certain special pays, bonuses, and 

financial assistance for health care professionals (sec. 615) 

The Senate amendment contained a provision (sec. 615) that 

would increase to $25,000 the maximum amount of the multiyear 

retention bonus for certain medical officers. The Senate amendment contained another provision (sec. 616) that would increase to 

$50,000 the maximum amount payable as special incentive pay for 

certain medical officers of the Armed Forces for service during any 

12-month period beginning after fiscal year 2002. 

The House bill contained no similar provision. 

The House recedes with an amendment that would combine 

the two Senate provisions and would increase: (1) the maximum 

multiyear retention bonus to $50,000 for certain medical officers, 

including dentists; (2) the maximum retention special pay for optometrists to $15,000; (3) the maximum accession bonus for registered nurses to $30,000; and (4) the maximum incentive pay for 

nurse anesthetists to $50,000. The amendment would also convert 

the special pay for pharmacy officers to a retention special pay not 

to exceed $15,000 for a 12-month period and, for nurse officer candidates, would increase the maximum accession bonus to $10,000 

and the maximum monthly stipend to $1000. 

Assignment incentive pay (sec. 616) 

The Senate amendment contained a provision (sec. 617) that 

would authorize the service secretaries, with the concurrence of the 

Secretary of Defense, to pay a monthly incentive pay of up to 

$1,500 to members serving in designated assignments. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

payment of assignment incentive pay for the period specified in a 

written agreement between the member and the secretary concerned and would provide that no agreements may be entered into 

after December 31, 2005. 

Increase in maximum rates for prior service enlistment bonus (sec. 

617) 

The House bill contained a provision (sec. 616) that would increase the maximum rates paid to reservists with critical skills 

under the prior service enlistment bonus to $8,000 in the case of 

a member who enlists for six years, to $4,000 in the case of a member who enlists for three years, and to $3,500 in the case of a member who received a prior bonus for a three-year enlistment and who 

reenlists or extends for an additional three years. 

The Senate amendment contained an identical provision (sec. 

618). 

The conference agreement includes this provision. 

656

Retention incentives for health care professionals qualified in a critical military skill (sec. 618) 

The House bill contained a provision (sec. 617) that would 

amend the critical skill retention bonus to provide exceptions to the 

limits on bonus amounts and years of service for bonuses paid to 

health care professionals. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

Subtitle C—Travel and Transportation Allowances 

Extension of leave travel deferral period for members performing 

consecutive overseas tours of duty (sec. 621) 

The House bill contained a provision (sec. 631) that would authorize members who have been granted travel and transportation 

allowances in connection with a consecutive overseas tour to defer 

those benefits for the full duration of the additional tour of duty. 

If the member is unable to undertake the travel before the completion of the additional tour because of duty in connection with a contingency operation, the provision would authorize the member to 

defer the travel and transportation for a year after the date on 

which the member’s duty in connection with the contingency operation duty ends. 

The Senate amendment contained a similar provision (sec. 

631). 

The Senate recedes with a clarifying amendment. 

Transportation of motor vehicles for members reported missing (sec. 

622) 

The Senate amendment contained a provision (sec. 632) that 

would authorize shipment of two privately owned motor vehicles 

when transportation of household and personal effects is authorized at government expense in the case of members who are officially reported as dead, injured, ill, or absent for a period of more 

than 29 days in a missing status. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Subtitle D—Retired Pay and Survivor Benefits 

Permanent reduction from eight to six in number of years of reserve 

service required for eligibility for retired pay for non-regular 

service (sec. 631) 

The House bill contained a provision (sec. 642) that would reduce the number of years of continuous reserve component service 

required immediately before qualifying for non-regular retired pay 

from eight to six. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

Increased retired pay for enlisted Reserves credited with extraordinary heroism (sec. 632) 

The Senate amendment contained a provision (sec. 642) that 

would authorize a 10 percent increase in the retired pay of an enVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00680 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
657

listed member of a Reserve component when the member has been 

credited with extraordinary heroism in the line of duty. The 

amount of retired pay, including the 10 percent increase, would not 

exceed 75 percent of the member’s retired base pay. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment. 

Elimination of possible inversion in retired pay cost-of-living adjustment for initial COLA computation (sec. 633) 

The House bill contained a provision (sec. 643) that would prevent partial-year retired pay cost-of-living adjustments (COLAs) in 

the first year of retirement from exceeding the COLA paid to retirees who were retired for the entire year. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

Technical revisions to so-called ‘‘forgotten widows’’ annuity program 

(sec. 634) 

The House bill contained a provision (sec. 644) that would 

make technical and administrative changes to section 644 of the 

National Defense Authorization Act for Fiscal Year 1998 (Public 

Law 105–85) that addressed annuities for certain military surviving spouses. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would eliminate 

the provision precluding retroactive benefits. 

Expansion of authority of Secretary of Defense to waive time limitations on claims against the Government for military personnel 

benefits (sec. 635) 

The Senate amendment contained a provision (sec. 643) that 

would authorize the Secretary of Defense to waive the statute of 

limitations for claims involving uniformed service members’ pay, 

allowances, travel, transportation, payments for unused accrued 

leave, retired pay, and survivor benefits. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Special compensation for certain combat-related disabled uniform 

services retirees (sec. 636) 

The House bill contained a provision (sec. 641) that would 

phase in over five years repeal of the prohibition against receipt of 

both military retired pay and veterans’ disability compensation for 

veterans whose disability is rated 60 percent or higher. 

The Senate amendment contained a similar provision (sec. 641) 

that would repeal the prohibition against receipt of both military 

retired pay and veterans’ disability compensation. 

The Senate recedes with an amendment that would authorize 

special compensation for uniformed services retirees who completed 

at least 20 years of service creditable for retirement and who incurred a qualifying combat-related disability. A qualifying combatrelated disability is: (1) any disability rated at 10 percent or higher 

attributable to an injury for which the member was awarded the 

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cent or higher incurred as a direct result of armed conflict, while 

engaged in hazardous service, in the performance of duty under 

conditions simulating war, or through an instrumentality of war. 

The amount of the special compensation would be equal to the 

amount of veterans’ disability compensation to which the retiree 

would be entitled based solely for the combat-related disability 

without regard to sections 5304 and 5305 of title 38, United States 

Code. This provision would be effective no later than 180 days after 

enactment. 

Subtitle E—Montgomery GI Bill 

Time limitation for use of Montgomery GI Bill entitlement by members of the Selected Reserve (sec. 641) 

The Senate amendment contained a provision (sec. 652) that 

would extend from 10 to 14 years the maximum period that a 

member of the Selected Reserve can use educational benefits provided under the Montgomery GI Bill for the Selected Reserve. 

The House bill contained a similar provision (sec. 651). 

The House recedes. 

Repayment requirements under reserve component Montgomery GI 

Bill arising from failure to participate satisfactorily in military 

service to be considered debts owed to the United States (sec. 

642) 

The Senate amendment contained a provision (sec. 653) that 

would treat an obligation to pay a refund to the United States for 

certain educational assistance as a debt to the United States when 

the obligation to pay the refund was incurred because the member 

failed to participate satisfactorily in the Selected Reserve. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Technical adjustments to authority for certain members to transfer 

educational assistance under Montgomery GI Bill to dependents 

(sec. 643) 

The Senate amendment contained a provision (sec. 655) that 

would clarify that dependents of active duty military personnel 

would receive transferred Montgomery GI Bill benefits at the veterans’ rate rather than the in-service rate. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

the Department of Veterans Affairs to make payments attributable 

to increased usage of benefits as a result of transfers of Montgomery GI Bill entitlement from the Department of Defense Education Benefits Fund or from appropriations made to the Department of Transportation. 

Subtitle F—Other Matters 

Payment of interest on student loans (sec. 651) 

The Senate amendment contained a provision (sec. 656) that 

would authorize the Secretary of Defense to pay interest on student 

659

loans of service members for three years during their first term of 

service. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

Additional authority to provide assistance for families of members 

of the Armed Forces (sec. 652) 

The Senate amendment contained a provision (sec. 651) that 

would make permanent the temporary authority to provide assistance to families of members of the Armed Forces serving on active 

duty to ensure that the children of such families obtain needed 

child care, education, and other youth services. 

The House bill contained no similar provision. 

The House recedes. 

Repeal of authority for acceptance of honoraria by personnel at certain Department of Defense schools (sec. 653) 

The Senate amendment contained a provision (sec. 654) that 

would repeal a limited exemption from the ban on receipt of honoraria by military and civilian faculty members and students at the 

three service academies and certain Department of Defense professional military schools. The exemption limits acceptance of honoraria to $2,000. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment. 

Addition of definition of continental United States in title 37 (sec. 

654) 

The House bill contained a provision (sec. 661) that would 

amend section 101 of title 37, United States Code, to include the 

definition of continental United States as the 48 contiguous states 

and the District of Columbia. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Minimum levels of hardship duty pay for duty on the ground in 

Antarctica or on Arctic icepack 

The House bill contained a provision (sec. 615) that would 

specify a hardship duty pay rate of no less than $240 per month 

for duty performed by service members on the ground in Antarctica 

or on the Arctic icepack. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees direct that the issue of payment of special and 

incentive pays for reservists who perform frequent and continuous 

duty on ski-equipped aircraft operating in the polar regions while 

assigned temporarily to locations where extremely harsh conditions 

are encountered be included in the reserve component personnel 

compensation review directed in the Senate report accompanying S. 

2514 (S. Rept. 107–151) and in the Comptroller General review of 

compensation and benefits for reserve component members directed 

in the House report accompanying H.R. 4546 (H. Rept. 107–436). 

660

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 

The Senate amendment contained a provision (sec. 657) that 

would modify the amount of back pay determined for a member of 

the Navy or Marine Corps selected for promotion while interned as 

a prisoner of war during World War II to reflect increases in the 

cost of living. 

The House bill contained no similar provision. 

The Senate recedes.

TITLE VII—HEALTH CARE PROVISIONS

ITEMS OF SPECIAL INTEREST

Civil-military partnership education programs related to sexual 

health decision-making 

The conferees are aware of collaborative civil-military partnership education programs related to sexual health decision- making 

that may have benefits in the reduction of unintended pregnancies 

and sexually transmitted infections among military personnel. 

Such efforts have the potential to contribute to improving both the 

readiness and health of military personnel in all services. The conferees direct the Department of Defense to examine such collaborative programs and consider their use by other services. 

Naval Medical Research Center cooperative agreements 

The conferees encourage the Secretary of the Navy, acting 

through the Director of the Naval Medical Research Center, to 

enter into cooperative agreements with administrators of donor 

banks to provide for cooperation between the Bone Marrow Registry of the Naval Medical Research Center and the donor banks. 

In light of the fact that bone marrow donor searches for minority 

groups take nearly twice as long as searches for non-minorities, the 

Director is encouraged to give a high priority to selecting donor 

banks that emphasize the involvement of members of minority 

groups as donors of tissue or as patients. 

TRICARE in Alaska 

The conferees are well aware of the unique challenges in providing health care to military beneficiaries in Alaska. Geographic 

impacts on access to care, limited managed care initiatives, and the 

level of reimbursement rates demand constant and local oversight 

of the military health care delivery system to ensure adequate and 

appropriate access for military beneficiaries. The conferees commend the local military treatment facility commanders for the arrangements that have been established with local health care providers and other federal health care entities to ensure timely access 

to quality care. The conferees urge the Secretary of Defense to exclude Alaska from fiscal year 2003 managed care contracts. 

661

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Health Care Program Improvements 

Elimination of requirement for TRICARE preauthorization of inpatient mental health care for medicare-eligible beneficiaries (sec. 

701) 

The House bill contained a provision (sec. 701) that would 

eliminate the requirement for pre-admission authorization for inpatient mental health services when medicare has already authorized 

such care and medicare is the primary payer. 

The Senate amendment contained a similar provision (sec. 

702). 

The Senate recedes with an amendment that would require advance authorization for a continuation of inpatient mental health 

services when medicare coverage terminates. 

Continued TRICARE eligibility of dependents residing at remote locations after departure of sponsors for unaccompanied assignments and eligibility of dependents of reserve component members ordered to active duty (sec. 702) 

The Senate amendment contained a provision (sec. 703) that 

would authorize continued eligibility of family members for 

TRICARE Prime Remote when the sponsoring service member is 

transferred from a duty that qualified the family members for 

TRICARE Prime Remote and the family members remain at the 

current duty location because they are not authorized to accompany 

the member to the new duty assignment. 

The House bill contained a similar provision (sec. 702). 

The House recedes with an amendment that extends the 

TRICARE Prime Remote benefit to dependents of reserve component personnel residing in locations that qualify for TRICARE 

Prime Remote when the member is ordered to active duty for more 

than 30 days. 

Eligibility of surviving dependents for TRICARE dental program 

benefits after discontinuance of former enrollment (sec. 703) 

The Senate amendment contained a provision (sec. 701) that 

would authorize certain surviving dependents to enroll in the 

TRICARE dental plan. 

The House bill contained a similar provision (sec. 703). 

The House recedes.

Department of Defense Medicare-Eligible Retiree Health Care Fund 

(sec. 704) 

The Senate amendment contained a provision (sec. 706) that 

would require that contributions to the Department of Defense 

Medicare-Eligible Retiree Health Care Fund be paid from military 

personnel funds. 

The House bill contained a similar provision (sec. 704). 

The House recedes. 

The conferees intend that the Department of Defense exclude 

cadets and midshipmen from average force strength calculations for 

the Medicare-Eligible Retiree Health Care Fund under sections 

662

1115 and 1116 of title 10, United States Code, just as cadets and 

midshipmen are excluded from average force strength calculations 

for the Department of Defense Military Retirement Fund under 

sections 1465 and 1466 of title 10, United States Code. 

Approval of medicare providers as TRICARE providers (sec. 705) 

The Senate amendment contained a provision (sec. 704) that 

would require that medicare-approved health care providers also be 

considered as approved TRICARE providers. 

The House bill contained a similar provision (sec. 705). 

The House recedes with an amendment that would make this 

provision effective for new TRICARE contracts entered into on or 

after the date of the enactment of this Act. 

Technical corrections relating to transitional health care for members separated from active duty (sec. 706) 

The Senate amendment contained a provision (sec. 707) that 

would correct section 736 of the National Defense Authorization 

Act for Fiscal Year 2002 (Public Law 107–107) to provide transitional health care to the dependents of members separated from active duty who are eligible for transitional health care. 

The House bill contained a similar provision (sec. 706). 

The House recedes. 

Extension of temporary authority to enter into personal services contracts for the performance of health care responsibilities at locations other than military medical treatment facilities (sec. 707) 

The Senate amendment contained a provision (sec. 708) that 

would extend until December 31, 2003, the authority to contract 

with physicians to provide new-recruit physicals. 

The House bill contained no similar provision. 

The House recedes. 

Access to health care services for beneficiaries eligible for TRICARE 

and Department of Veterans Affairs health care (sec. 708) 

The Senate amendment contained a provision (sec. 710) that 

would provide that a TRICARE Prime beneficiary could not be denied health care under TRICARE on the basis that the beneficiary 

had received care from the Department of Veterans Affairs if the 

Department of Veterans Affairs cannot provide the care within the 

time limit standards for TRICARE Prime. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary of Defense to prescribe a process for resolving issues relating to patient safety and continuity of care for beneficiaries who 

are concurrently entitled to health care under TRICARE and are 

eligible for health care services from the Department of Veterans 

Affairs. The amendment would also require the Comptroller General to conduct a study of the health care issues of beneficiaries 

covered by both systems. 

663

Disclosure of information on Project 112 to Department of Veterans 

Affairs (sec. 709) 

The Senate amendment contained a provision (sec. 1065) that 

would require the Secretary of Defense to submit to Congress and 

the Secretary of Veterans Affairs a plan for review, declassification, 

and submission to the Department of Veterans Affairs of all medically relevant information regarding the Shipboard Hazard and Defense (SHAD) project to facilitate the provision of Veterans Administration benefits to former service members who participated in 

that project. 

The House bill contained no similar provision. 

The House recedes with an amendment that would expand the 

scope of the plan to include all medically relevant information on 

Project 112, which includes the SHAD project, and would require 

a GAO review of the plan. 

Subtitle B—Reports 

Claims information (sec. 711) 

The Senate amendment contained a provision (sec. 705) that 

would require the Secretary of Defense, in new managed care support contracts entered into under the TRICARE program on or 

after October 1, 2002, to adopt new claims requirements that are 

substantially the same as Medicare claims requirements. 

The House bill contained a provision (sec. 711) that would require the Comptroller General to evaluate the continuing impediments to a cost-effective provider and beneficiary-friendly system 

for TRICARE claims processing. 

The House recedes with an amendment that would combine 

the provisions and limit claims information to the information required for Medicare claims except for information that is uniquely 

required by the TRICARE program. 

Comptroller General report on provision of care under the 

TRICARE program (sec. 712) 

The House bill contained a provision (sec. 712) that would require the Comptroller General to evaluate the nature, reasons, and 

extent of trends in TRICARE network provider turbulence and the 

effectiveness of the efforts of the Department of Defense and 

TRICARE managed care support contractors to measure and mitigate such turbulence. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Repeal of report requirement (sec. 713) 

The House bill contained a provision (sec. 713) that would repeal the TRICARE Senior Prime annual reporting requirement 

specified in section 712 of the Floyd D. Spence National Defense 

Authorization Act for Fiscal Year 2001 (Public Law 106–398). 

The Senate amendment contained no similar provision. 

The Senate recedes. 

664

Subtitle C—Department of Defense-Department of Veterans Affairs 

Health Resources Sharing 

Revised coordination and sharing guidelines (sec. 721) 

The House bill contained a provision (sec. 723) that would require the Secretary of Veterans Affairs and the Secretary of Defense to: (1) enter into agreements and contracts for the mutually 

beneficial coordination, use, or exchange of the health care resources of the respective Departments; (2) develop and publish a 

joint strategic vision and plan; (3) establish and jointly fund a Department of Defense-Veterans Affairs health executive committee; 

(4) establish and fund a joint incentives program; (5) jointly develop guidelines and policies for implementation of coordination 

and sharing recommendations, contracts, and agreements; and (6) 

jointly submit an annual report to Congress on health care coordination and sharing activities. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Comptroller General to review the implementation and effectiveness of the joint incentives program and report to the Committees 

on Armed Services and Veterans’ Affairs of the Senate and the 

House of Representatives on the results of the review. The amendment would also incorporate the reporting requirements contained 

in separate provisions into the annual joint report required in this 

provision and would make other technical changes. 

Health care resources sharing and coordination project (sec. 722) 

The House bill contained a provision (sec. 724) that would require the Secretary of Veterans Affairs and the Secretary of Defense to conduct a health care resources sharing project at no less 

than five sites to test the feasibility, advantages, and disadvantages of measures and programs designed to improve the sharing 

and coordination of health care and health care resources between 

the Department of Veterans Affairs and the Department of Defense. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require 

health care resources sharing projects at no less than three sites, 

would remove the requirement to test affording beneficiaries of either Department access to the pharmaceutical services of the other 

Department, and would require the Comptroller General to provide 

for an annual on-site review at each of the project locations and report to the Committees on Armed Services and Veterans’ Affairs of 

the Senate and House of Representatives. 

The conferees do not anticipate that the ‘‘coordinated management system’’ will disrupt established command and control or established reporting chains for either agency. 

Report on improved coordination and sharing of health care and 

health care resources following domestic acts of terrorism or domestic use of weapons of mass destruction (sec. 723) 

The House bill contained a provision (sec. 725) that would require the Secretary of Defense and the Secretary of Veterans Affairs to review the adequacy of current processes and existing statVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00688 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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utory authorities and policy governing the capability of the Department of Defense and the Department of Veterans Affairs to provide 

health care to service members following domestic acts of terrorism 

or domestic use of weapons of mass destruction, both before and 

after a declaration of national emergency. The provision would require the Secretaries to report the results to Congress with the fiscal year 2004 budget submission. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Interoperability of Department of Veterans Affairs and Department 

of Defense pharmacy data programs (sec. 724) 

The House bill contained a provision (sec. 726) that would require the Secretary of Veterans Affairs to adopt the Department of 

Defense’s Pharmacy Data Transaction System. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Secretary of Veterans Affairs and the Secretary of Defense to seek 

to ensure that, by October 1, 2004, their respective pharmacy data 

systems are using national standards for the exchange of outpatient medication information and are interoperable, achieving 

real-time interface, data exchange, and checking of prescription 

drug data of outpatients. If interoperability is not achieved by October 1, 2004, the amendment would require the Secretary of Veterans Affairs to adopt the Department of Defense Pharmacy Data 

Transaction System by October 1, 2005. 

The conferees believe the Secretary of Veterans Affairs should 

consider the National Council for Prescription Drug Program 

Standards in determining the national standards required for 

interoperability. 

Joint pilot program for providing graduate medical education and 

training for physicians (sec. 725) 

The House bill contained a provision (sec. 727) that would require the Secretary of Defense and the Secretary of Veterans Affairs to conduct a joint pilot program under which graduate medical education and training is provided to military physicians and 

physician employees of their departments. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Repeal of certain limits on Department of Veterans Affairs resources 

(sec. 726) 

The House bill contained a provision (sec. 728) that would repeal the limits on the total number of authorized Veterans Administration hospital and nursing home beds. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

666

LEGISLATIVE PROVISIONS NOT ADOPTED

Findings and sense of Congress concerning status of health resources sharing between the Department of Veterans Affairs 

and the Department of Defense 

The House bill contained a provision (sec. 722) that would express a sense of Congress that the Secretary of Defense and Secretary of Veterans Affairs should commit their respective Departments to significantly improve mutually beneficial sharing and coordination of health care resources and services during peace and 

war, build organizational cultures supportive of improved sharing 

and coordination of health care resources and services, and establish and achieve measurable goals to facilitate increased sharing 

and coordination of health care resources and services. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees strongly support coordination and sharing of 

health care resources between the Department of Defense and the 

Department of Veterans Affairs. Federal health care resources are 

scarce and thus should be effectively and efficiently used. Health 

care beneficiaries of the Departments of Defense and Veterans Affairs, whether active service members, veterans, retirees, or family 

members of active or retired service members, should have full access to the health care and services that Congress has authorized 

for them. 

In 1982, Congress authorized the sharing of health resources 

between Department of Defense medical treatment facilities and 

Department of Veterans Affairs health care facilities to allow more 

effective and efficient use of those health resources. The Secretary 

of Defense and the Secretary of Veterans Affairs, and the appropriate officials of each of the Departments of Defense and Veterans 

Affairs with responsibilities related to health care, have not taken 

full advantage of the opportunities provided by law to make their 

respective health resources available to health care beneficiaries of 

the other Department in order to provide improved health care for 

beneficiaries of both health systems. 

The conferees are disappointed that, after the many years of 

support and encouragement from Congress, the Departments have 

made little progress in health resource sharing and the intended 

results of the sharing authority have not been achieved. The conferees expect greater cooperation between the Departments in the 

future. 

Reports 

The House bill contained a provision (sec. 729) that would require an interim report on the conduct of each program under the 

Department of Defense-Department of Veterans Affairs Health Resources Sharing and Performance Improvement Act of 2002, an annual report on the use of waiver authorities, a pharmacy benefits 

report, and an annual report on the pilot program for graduate 

medical education. 

The Senate amendment contained no similar provision. 

The House recedes. 

667

The reports contained in this provision have been incorporated 

in a separate provision. 

Restoration of previous policy regarding restrictions on use of Department of Defense medical facilities 

The Senate amendment contained a provision (sec. 709) that 

would repeal the prohibition on using Department of Defense facilities for abortions. 

The House bill contained no similar provision. 

The Senate recedes. 

Short title 

The House bill contained a provision (sec. 721) that would entitle Subtitle C of the House Bill the ‘‘Department of Defense-Department of Veterans Affairs Health Resources Sharing and Performance Improvement Act of 2002.’’

The Senate amendment contained no similar provision. 

The House recedes.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND

RELATED MATTERS

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Acquisition Policy and Management 

Buy-to-budget acquisition of end items (sec. 801) 

The Senate amendment contained a provision (sec. 801) that 

would authorize the Department of Defense to make the best use 

of limited resources by acquiring a higher quantity of an end item 

than the number specified in an authorization or appropriations 

law or the accompanying report language. 

The House bill contained no similar provision. 

The House recedes with an amendment that would add a definition of the term ‘‘end item’’ and make certain technical changes 

to the provision. 

Report to Congress on evolutionary acquisition of major defense acquisition programs (sec. 802) 

The Senate amendment contained a provision (sec. 802) that 

would require the Secretary of Defense to submit to the congressional defense committees a report on how the Department of Defense plans to comply with applicable requirements of title 10, 

United States Code, and Department of Defense regulations when 

it conducts programs for the incremental acquisition of major systems. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

submission of a report on the application of such requirements to 

the evolutionary acquisition of major defense acquisition programs 

and make certain technical changes. 

668

Spiral development under major defense acquisition programs (sec. 

803) 

The Senate amendment contained a provision (sec. 803) that 

would authorize the Secretary of Defense to conduct a pilot program for the spiral development of major systems. Under the Senate provision, the Secretary would be required to issue guidance on 

how spiral development programs would be designed to meet key 

acquisition system objectives and to approve a spiral development 

plan for each spiral development program. 

The House bill contained no similar provision. 

The House recedes with an amendment that would: (1) provide 

permanent authorization to conduct spiral development in lieu of 

a pilot program; (2) authorize the Secretary to delegate the approval of spiral development plans to designated officials; (3) limit 

the applicability of the provision to major defense acquisition programs; and (4) give the Secretary greater flexibility in developing 

guidance. 

Improvement of software acquisition processes (sec. 804) 

The Senate amendment contained a provision (sec. 804) that 

would require the secretary of each military department and the 

head of each defense agency that manages a major defense acquisition program with a substantial software component to establish a 

program to improve its software acquisition processes. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Department of Defense to ensure that: (1) key program personnel 

have an appropriate level of experience or training in software acquisition; and (2) criteria used in the selection of sources for software provide appropriate emphasis on the past performance in developing and producing software and the maturity of the software 

products offered. 

Performance goals for procuring services pursuant to multiple 

award contracts (sec. 805) 

The Senate amendment contained a provision (sec. 811) that 

would establish annual goals for the Department of Defense (DOD) 

to increase the percentage of services purchases under multiple 

award contracts that are: (1) entered on the basis of competition 

with more than one offer received; and (2) performance-based with 

fixed prices for specific tasks to be performed. 

The House bill contained no similar provision. 

The House recedes with an amendment that would repeal 

goals established in the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107) for savings to be achieved 

through improved management of the Department’s $50.0 billion of 

services contracts. The conference amendment would also: (1) modify the goals for the competitive purchase of services under multiple award contracts to 40 percent for fiscal year 2003, 50 percent 

for fiscal year 2004, and 75 percent for fiscal year 2011; and (2) 

modify the goals for performance-based purchases of services under 

such contracts to 25 percent in fiscal year 2003, 35 percent in 2004, 

50 percent in 2005, and 70 percent in 2011. The Secretary of Defense would be authorized to adjust any of these percentage goals 

669

upon a determination that such goal is too high and cannot reasonably be achieved. 

The conferees understand that the Department has been unable to develop a method for measuring savings achieved through 

the improved management of services contracts. The goals for competitive and performance-based services contracting established by 

the conference amendment would establish measurable benchmarks for the increased use of improved management approaches 

for services contracts. 

In the 1990’s, the Office of Federal Procurement Policy (OFPP) 

conducted a government-wide, performance-based service contracting (PBSC) pilot program including 26 contracts from 15 agencies with a combined award value of approximately $585.0 million. 

OFPP found that, ‘‘On average contract price decreased by 15% in 

nominal dollars after the introduction of PBSC. This does not consider that, absent the conversion to PBSC, additional inflation-related price increases of 16% could have been expected.’’

The report cautions that all elements of performance-based 

contracting must be followed in order to achieve optimal success. 

According to the report, the minimum essential components of performance-based contracting include: performance requirements; 

measurable performance standards; government quality assurance 

plans based on measurements of the work against the performance 

standards; and incentives based on the quality assurance measurements. The conferees are aware of the significant effort that will 

be required to implement performance-based contracting on an extensive basis. 

The conferees also note that significant savings can be found 

where a non-technical cost type contract is converted to a fixed 

price performance-based contract. In addition, the Acting Inspector 

General of the Department of Defense testified in the mid–1990’s 

that the first decade of implementation of the Competition in Contracting Act of 1984 (Public Law 98–396) had resulted in significant cost avoidance. On August 3, 1995, the Acting Inspector General testified that: ‘‘While we have seen savings of 5 to over 90 percent from competition, typically competition results in price reductions of 15 to 30 percent.’’ The conferees believe that the Department should be able to achieve significant savings by meeting the 

performance goals established in this provision. 

Rapid acquisition and deployment procedures (sec. 806) 

The House bill contained a provision (sec. 808) that would require the Secretary of Defense to develop procedures for the rapid 

acquisition and deployment of items that a commander of a unified 

combatant command urgently requires. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would give the 

Secretary greater flexibility in the development of the required procedures. 

Quick-reaction special projects acquisition team (sec. 807) 

The House bill contained a provision (sec. 809) that would require the Secretary of Defense to establish a special projects acquiVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00693 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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sition team to examine and address issues affecting expeditious 

procurements. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would: (1) require 

that the quick reaction special projects acquisition team be established by the Under Secretary of Defense for Acquisition, Technology and Logistics; and (2) broaden the categories of issues to be 

addressed by the team. 

Subtitle B—Amendments to General Contracting Authorities, 

Procedures, and Limitations 

Limitation period for task and delivery order contracts (sec. 811) 

The House bill contained a provision (sec. 803) that would 

amend sections 2304a and 2304b of title 10, United States Code, 

to limit the period of time for which task and delivery order contracts may be awarded to five years—the same time limitation that 

is applicable to other multiyear contracts. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would amend section 2306c of title 10, United States Code, to provide that multiyear 

task and delivery order contracts are subject to the same requirements as other multiyear contracts, including the five-year time 

limitation on such contracts. The amendment would also establish 

a preference for the award of a multiyear task and delivery order 

contract to more than one source to ensure competition for task orders and delivery orders throughout the period of the contract. Finally, the amendment would require the Comptroller General to review the contract term of existing single-award and multiple-award 

task and delivery order contracts (including any options or extensions available under such contracts). 

One-year extension of program applying simplified procedures to 

certain commercial items; report (sec. 812) 

The House bill contained a provision (sec. 804) that would extend for one year the pilot program established in section 4202 of 

the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 

104–106). The provision would also require the Secretary of Defense to report to Congress on the pilot program. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would: (1) require 

a report by the Comptroller General instead of the Secretary of Defense; and (2) clarify the issues to be addressed in the report. 

Extension and improvement of personnel demonstration policies and 

procedures applicable to the civilian acquisition workforce (sec. 

813) 

The House bill contained a provision (sec. 806) that would require the Secretary of Defense to develop a plan for improving the 

policies and procedures applicable to the civilian acquisition workforce, based on the results of the demonstration project authorized 

by section 4308 of the Clinger-Cohen Act of 1996 (division D of 

Public Law 104–106; 10 U.S.C. 1706 note). 

671

The Senate amendment contained a provision (sec. 821) that 

would extend the demonstration project. 

The Senate recedes with an amendment that would extend the 

demonstration project. 

Past performance given significant weight in renewal of procurement technical assistance cooperative agreements (sec. 814) 

The House bill contained a provision (sec. 812) that would require the Secretary of Defense, to the maximum extent practicable, 

to renew without reduction in funding any procurement technical 

assistance cooperative agreement with an eligible entity that has 

performed successfully under an existing agreement. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Secretary, in conducting a competition for the award of procurement technical assistance cooperative agreements, to give significant weight to successful past performance of eligible entities 

under existing agreements. 

Increased maximum amount of assistance for tribal organizations 

or economic enterprises carrying out procurement technical assistance programs in two or more service areas (sec. 815) 

The Senate amendment contained a provision (sec. 828) that would increase from $300,000 to $600,000 the maximum amount of 

assistance for tribal organizations or economic enterprises carrying 

out procurement technical assistance programs in two or more 

service areas. 

The House bill contained no similar provision. 

The House recedes. 

Extension of contract goal for small disadvantaged businesses and 

certain institutions of higher education (sec. 816) 

The Senate amendment contained a provision (sec. 823) that 

would extend for three years the contract goal for small disadvantaged businesses and certain institutions of higher education. 

The House bill contained no similar provision. 

The House recedes. 

Grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards (sec. 817) 

The Senate amendment contained a provision (sec. 812) that 

would require the Department of Defense (DOD) to issue guidance 

on grants of exceptions to cost or pricing data certification requirements and waivers of cost accounting standards. The provision 

would also require the Secretary of Defense to report to the congressional defense committees on certain exceptions to the Truth in 

Negotiations Act and waivers of the cost accounting standards. 

The House bill contained no similar provision. 

The House recedes with an amendment that would modify the 

guidance to be issued on waivers and exceptions to ensure that 

DOD has the flexibility it needs to grant waivers and extensions 

when: (1) the property or services could not reasonably be obtained 

from the contractor or subcontractor without the grant of the exception or waiver; (2) the price can be determined to be a fair and 

672

reasonable price; and (3) there are demonstrated benefits from 

granting the waiver or exception. The conference amendment 

would also streamline the reporting requirements in the provision 

by requiring an annual report instead of a semiannual report and 

eliminating the requirement in the Senate bill for advance notice 

to Congress of certain waivers and exceptions. 

Timing of certification in connection with waiver of survivability 

and lethality testing requirements (sec. 818) 

The Senate amendment contained a provision (sec. 806) that 

would modify the authority of the Secretary of Defense to waive the 

requirement for survivability and lethality tests for major weapon 

programs in order to correspond with the revised acquisition milestones in the Department’s new acquisition regulations. 

The House bill contained no similar provision. 

The House recedes. 

Contracting with Federal Prison Industries (sec. 819) 

The House bill contained a provision (sec. 811) that would: (1) 

require the Secretary of Defense to use competitive procedures to 

acquire products or services from Federal Prison Industries (FPI); 

(2) clarify that a Department of Defense (DOD) contractor may not 

be required to use FPI as a subcontractor or supplier of products 

or services; and (3) prohibit the Department from entering any contract with FPI under which an inmate worker would have access 

to classified or sensitive information. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would modify the 

provision to ensure that it is consistent with the approach taken 

by section 811 of the National Defense Authorization Act for Fiscal 

Year 2002 (Public Law 107–107), while reinforcing the requirement 

of that provision that DOD contracting officials shall have sole discretion to determine whether FPI products and services meet the 

Department’s needs in terms of price, quality, and time of delivery. 

If DOD officials determine that an FPI product or service is 

not comparable to the best products or services available from the 

private sector, the Department is directed to purchase the product 

on a competitive basis. The requirement for competition under this 

section may be met by the award of a new contract on a competitive basis or through a purchase under an existing multiple award 

contract pursuant to competition requirements included in section 

803 of the National Defense Authorization Act for Fiscal Year 2002 

and other applicable provisions of law and regulation. In either 

case, the Department must consider a timely offer from FPI in accordance with the specifications and evaluation factors specified in 

the solicitation or other request for offers. 

Revisions to multiyear contracting authority (sec. 820) 

The House bill contained a provision (sec. 141) that would 

amend section 2306b of title 10, United States Code, to clarify that: 

(1) funds available for a multiyear contract may be used only for 

the procurement of complete and usable end items; and (2) funds 

available for advance procurement may be used only for the proVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00696 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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curement of long-lead items necessary to meet a planned delivery 

schedule for complete major end items. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would permit the 

purchase of economic order quantities of long-lead items where authorized by law. The conference amendment would also clarify that 

nothing in the section authorizes the use of funds available under 

contracts awarded prior to the effective date of the provision for 

any purpose other than the purpose for which such funds were authorized and appropriated. Consequently, although the section 

would not apply to contracts awarded before the date of enactment, 

funds available under such contracts could not be used in a manner 

that would be inconsistent with the requirements of the section unless such funds were authorized and appropriated for such purposes. 

Subtitle C—Acquisition-Related Reports and Other Matters 

Evaluation of training, knowledge, and resources regarding negotiation of intellectual property arrangements (sec. 821) 

The House bill contained a provision (sec. 802) that would require the Secretary of Defense to evaluate the training, knowledge, 

and resources needed by the Department to effectively negotiate intellectual property rights. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Independent technology readiness assessments (sec. 822) 

The Senate amendment contained a provision (sec. 805) that 

would require the Department of Defense to explain any decision 

not to conduct an independent technology readiness assessment for 

a critical technology on a major defense acquisition program. 

The House bill contained no similar provision. 

The House recedes.

Extension and amendment of requirement for annual report on defense commercial pricing management improvement (sec. 823) 

The Senate amendment contained a provision (sec. 813) that 

would extend the requirement that the Secretary of Defense submit 

to the congressional defense committees an annual report on price 

trend analyses for commercial items purchased by the Defense Logistics Agency (DLA) and the military departments. 

The House bill contained no similar provision. 

The House bill recedes with an amendment that would clarify 

the requirement for the Secretary of each military department and 

the Director of the DLA to conduct price trend analyses to identify 

and address any unreasonable escalation in prices paid for items 

procured by that military department or agency. 

Assessment of purchases of products and services through contracts 

with other Federal departments and agencies (sec. 824) 

The Senate amendment contained a provision (sec. 815) that 

would require the Secretary of Defense to carry out an assessment 

to determine the amount paid by the Department of Defense as 

674

fees for the acquisition of property and services under contracts entered by other federal departments and agencies and whether these 

amounts could be put to better use. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Department to consider both the costs and the benefits of using 

contracts entered by other federal departments and agencies. 

Repeal of certain requirements and Comptroller General reviews of 

the requirements (sec. 825) 

The Senate amendment contained a provision (sec. 825) that 

would repeal statutory requirements for review by the Comptroller 

General of programs conducted pursuant to certain legislative authority that has never been utilized. 

The House bill contained no similar provision. 

The House recedes with an amendment that would repeal the 

authority to conduct programs pursuant to these sections. The conferees have determined that the legislative authority provided by 

sections 912, 5312, and 5401 of the National Defense Authorization 

Act for Fiscal Year 1996 (Public Law 104–106) has never been used 

and is not likely to be needed. For this reason, the conference 

amendment would repeal all three provisions. 

Multiyear procurement authority for purchase of dinitrogen tetroxide, hydrazine, and hydrazine-related products (sec. 826) 

The Senate amendment contained a provision (sec. 826) that 

would authorize the Secretary of Defense to enter into contracts for 

periods of up to 10 years for dinitrogen tetroxide, hydrazine, and 

hydrazine-related products. 

The House bill contained no similar provision. 

The House recedes. 

Multiyear procurement authority for environmental services for 

military installations (sec. 827) 

The Senate amendment contained a provision (sec. 827) that 

would authorize the use of multiyear contracts for the acquisition 

of environmental remediation services. 

The House bill contained no similar provision. 

The House recedes. 

Report on effects of Army Contracting Agency (sec. 828) 

The Senate amendment contained a provision (sec. 830) that 

would require the Secretary of the Army to report to Congress on 

the effects of the establishment of an Army Contracting Agency on 

small business participation in Army procurements. 

The House bill contained no similar provision. 

The House recedes. 

The conferees note that the Army expects to eliminate approximately 200 unneeded positions as a result of this reorganization. 

The conferees direct the Secretary to review the Army’s requirements for acquisition personnel—including shortcomings identified 

in Department of Defense Inspector General reports D–2000–088 

(February 29, 2000) and D–2000–100 (March 10, 2000)—and to determine whether some of the resources saved as a result of the reVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00698 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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organization should be reinvested to shape a more productive acquisition workforce for the future. The results of the Secretary’s review should be forwarded to the congressional defense committees 

with the report required by this section. 

Authorization to take actions to correct the industrial resource 

shortfall for radiation-hardened electronics (sec. 829) 

The conference agreement includes a provision that would authorize the Department of Defense to take actions to correct the industrial resource shortfall for radiation-hardened electronics, notwithstanding the limitation in section 303(a)(6)(C) of the Defense 

Production Act of 1950 (50 U.S.C. App. 2093(a)(6)(C)), as long as 

such actions do not cause the aggregate outstanding amount of all 

such actions to exceed $106.0 million. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Authority for nonprofit organizations to self-certify eligibility for 

treatment as qualified organizations employing severely disabled under Mentor-Protege Program 

The Senate amendment contained a provision (sec. 829) that 

would permit nonprofit organizations employing the severely disabled to self-certify their eligibility to participate in the Department of Defense Mentor-Protege Program. 

The House bill contained no similar provision. 

The Senate recedes. 

Authority to make inflation adjustments to simplified acquisition 

threshold 

The House bill contained a provision (sec. 805) that would authorize the Administrator of the Office of Federal Procurement Policy to adjust the simplified acquisition threshold every five years to 

account for inflation. 

The Senate amendment contained no similar provision. 

The House recedes. 

Mentor-Protege Program eligibility for HUBZone small business 

concerns and small business concerns owned and controlled by 

service-disabled veterans 

The Senate amendment contained a provision (sec. 824) that 

would add HUBZone small business concerns and small business 

concerns owned and controlled by service-disabled veterans to the 

list of organizations eligible to participate in the Mentor-Protege 

Program of the Department of Defense. 

The House bill contained no similar provision. 

The Senate recedes. 

Modification of scope of ball and roller bearings covered for purposes of procurement limitation 

The House bill contained a provision (sec. 807) that would expand a prohibition on the purchase of ball or roller bearings from 

sources outside the United States to cover unconventional or hybrid 

ball and roller bearings, cam follower bearings, ball screws, and 

other derivatives of ball and roller bearings. 

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The Senate amendment contained no similar provision. 

The House recedes. 

Moratorium on reduction of the defense acquisition and support 

workforce 

The Senate amendment contained a provision (sec. 822) that 

would impose a moratorium on reductions in the defense acquisition and support workforce during fiscal years 2003, 2004 and 

2005. 

The House bill contained no similar provision. 

The Senate recedes. 

Pilot program for transition to follow-on contracts for prototype 

projects 

The Senate amendment contained a provision (sec. 816) that 

would establish a pilot program for the transition of prototype 

projects to follow-on production contracts. 

The House bill contained no similar provision. 

The Senate recedes. 

Plan for acquisition management professional exchange pilot program 

The House bill contained a provision (sec. 801) that would require the Secretary of Defense to develop a plan for a pilot program 

for the exchange of acquisition management personnel between the 

Department of Defense and private sector organizations. 

The Senate amendment contained no similar provision. 

The House recedes. 

Report on development of anticyberterrorism technology 

The House bill contained a provision (sec. 810) that would require the Secretary of Defense to submit a report to Congress on 

anticyberterrorism technology. 

The Senate amendment contained no similar provision. 

The House recedes. 

The material covered by the House provision would be addressed in a report on homeland security required elsewhere in the 

bill. 

Waiver authority for domestic source or content requirements 

The Senate amendment contained a provision (sec. 817) that 

would authorize the Secretary of Defense to waive the application 

of statutory domestic source requirements and domestic content requirements in certain circumstances. 

The House bill contained no similar provision. 

The Senate recedes.

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TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND

MANAGEMENT

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Duties and Functions of Department of Defense 

Officers 

Under Secretary of Defense for Intelligence (sec. 901) 

The Senate amendment contained a provision (sec. 907) that 

would amend Chapter 4 of title 10, United States Code, to establish 

the position of Under Secretary of Defense for Intelligence. 

The House bill contained no similar provision. 

The House recedes with an amendment that would make clear 

that the establishment of this new position does not supercede or 

modify the authorities of the Secretary of Defense and the Director 

of Central Intelligence as established by the National Security Act 

of 1947. It would also require the Secretary of Defense to submit 

a report to Congress within 90 days after enactment on the establishment of the position of Under Secretary of Defense for Intelligence, including mission, organizational structure, and relationships. 

Reorganization of Office of Secretary of Defense for administration 

of duties relating to homeland defense and combating terrorism 

(sec. 902) 

The conferees agree to include a provision that would amend 

Chapter 4 of title 10, United States Code, to establish the position 

of Assistant Secretary of Defense for Homeland Defense; transfer 

the responsibility for the overall direction and supervision for policy, program planning and execution, and allocation of resources for 

the activities of the Department of Defense for combating terrorism 

to the Under Secretary of Defense for Policy; and repeal the contingent reduction in the number of assistant secretaries of defense. 

Subtitle B—Space Activities 

Oversight of acquisition for defense space programs (sec. 911) 

The Senate amendment contained a provision (sec. 133) that 

would require the Office of the Secretary of Defense to maintain 

oversight of acquisition for defense space programs. The provision 

would also require the Secretary of Defense to submit a detailed 

plan on how such oversight will be provided. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment. 

The conferees understand that the Department of Defense is 

planning to change the way defense space programs are overseen 

in an effort to reduce the decision cycle time for these programs. 

The conferees believe that any changes to the oversight process 

should not detract from the ability of the Office of the Secretary of 

Defense and the Joint Requirements Oversight Council to provide 

meaningful oversight of space programs. The conferees also believe 

that because space programs are inherently joint programs, each of 

the military services should have a strong voice in space program 

acquisition decisions. 

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The conferees note that the conference report accompanying 

the National Defense Authorization Act for Fiscal Year 2002 

(Public Law 107–107) discussed the ‘‘virtual major force program 

(MFP)’’ for space activities established by the Secretary of Defense 

and expressed the conferees’ expectations that the virtual space 

MFP would be submitted along with the fiscal year 2003 budget. 

However, the virtual space MFP still has not been submitted. 

The conferees note that the virtual space MFP is an important 

tool for providing better visibility and insight into space programs 

and are disappointed that the Secretary of Defense has not yet submitted it to Congress. The conferees therefore direct the Secretary 

of Defense to submit the current version of the virtual MFP for 

space activities to the congressional defense and intelligence committees no later than January 15, 2003, and furthermore direct the 

Secretary of Defense to submit the virtual MFP for space activities 

along with the fiscal year 2004 budget request and all future budget requests. 

Report regarding assured access to space for the United States (sec. 

912) 

The Senate amendment contained a provision (sec. 136) that 

would set forth the sense of Congress that the Under Secretary of 

the Air Force should evaluate all options for sustaining the United 

States space launch industrial base, develop an integrated, adequately funded, long-range plan for access to space, and submit a 

report on that plan as soon as practicable. The provision also included a series of findings. 

The House bill contained no similar provision.

The House recedes with an amendment that would delete the 

findings portion of the provision and require the Secretary of Defense to evaluate options for sustaining the space launch industrial 

base; to develop an integrated, adequately funded, long-range plan 

for assuring access to space; and to submit a report to Congress on 

this plan. 

The conferees agree that providing assured reliable access to 

space is a vital national security interest of the United States. One 

of the critical elements of assured access to space is the Air Force 

Evolved Expendable Launch Vehicle (EELV) program. This program will be a new approach for the Air Force and the Department 

of Defense (DOD). Instead of buying individual rockets to launch 

space payloads, the Air Force and DOD will now buy launch services. The contractors supplying the launch services will also supply 

launches to commercial customers. The EELV program is intended 

to provide reliable, assured, launch services for a variety of payload 

types and weights, at reduced cost. 

Since the beginning of the EELV program, significant contraction in the commercial space launch market has eroded the overall 

viability of the United States space launch industrial base and 

could hamper the ability of DOD to provide assured access to space 

in the future. The continuing viability of the United States space 

launch industrial base is a critical element of any strategy to ensure the long-term ability of the United States to assure access to 

space. The Under Secretary of the Air Force, as acquisition executive for DOD space programs, has been authorized to develop a 

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strategy to address United States space launch and other requirements to support assured access to space. This strategy should 

serve as the basis of the integrated, long- range, adequately funded 

plan for assured access to space that the Secretary of Defense is 

required to submit to Congress by March 1, 2003. 

Subtitle C—Reports 

Report on establishment of United States Northern Command (sec. 

921) 

The House bill contained a provision (sec. 902) requiring the 

Secretary of Defense to submit to the congressional defense committees a report on an implementation plan for the United States 

Northern Command that addresses organizational, legal, diplomatic, budgetary, and personnel matters associated with the establishment of that command. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would change the 

date by which the report must be submitted and clarifies the items 

to be addressed by the report. 

Time for submittal of report on Quadrennial Defense Review (sec. 

922) 

The House bill contained a provision (sec. 904) that would 

amend section 118 of title 10, United States Code, to change the 

submission date of the report on each quadrennial defense review 

to the Committees on Armed Services of the Senate and House of 

Representatives to the second year after a year divisible by four. 

The Senate amendment contained a similar provision (sec. 901) 

that would change the submission date of the report from September 30 of the year in which the review is conducted to no later 

than the date in the following year on which the President submits 

the budget for the next fiscal year to Congress. 

The House recedes. 

National defense mission of Coast Guard to be included in future 

Quadrennial Defense Reviews (sec. 923) 

The House bill contained a provision (sec. 903) that would 

amend section 118(d) of title 10, United States Code, to require the 

Secretary of Defense to include the defense mission of the U.S. 

Coast Guard when conducting future Quadrennial Defense Reviews. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Report on establishment of a Joint National Training Complex and 

joint opposing forces (sec. 924) 

The House bill contained a provision (sec. 1015) that would require the Secretary of Defense to submit a report to the Committees on Armed Services of the Senate and House of Representatives 

that outlines a plan to develop and operate a Joint National Training Complex capable of supporting field exercises and experimentation at the operational level of war across a broad spectrum of 

adversary capabilities. 

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The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would have the 

commander of the United States Joint Forces Command outline a 

plan that would provide for the development and implementation 

of a joint national training concept together with the establishment 

of a joint training complex for supporting the implementation of 

that concept. The Secretary of Defense would submit the report, together with any comments he considers appropriate and any comments that the Chairman of the Joint Chiefs of Staff considers appropriate. 

Subtitle D—Other Matters 

Authority to accept gifts for National Defense University (sec. 931) 

The House bill contained a provision (sec. 907) that would 

amend section 2605 of title 10, United States Code, to authorize 

the Secretary of Defense to accept gifts for the National Defense 

University in a manner similar to the authority to accept gifts for 

defense dependents’ schools. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would add a new 

section to Chapter 155 of title 10, United States Code, for this purpose; would specifically authorize the acceptance of gifts from an 

international organization and a foreign gift; and would make other 

clarifying amendments. 

Western Hemisphere Institute for Security Cooperation (sec. 932) 

The Senate amendment contained a provision (sec. 905) that 

would amend section 2166 of title 10, United States Code, to authorize the Secretary of Defense to accept foreign gifts or donations 

of funds, materials, property, or services in order to defray the 

costs of, or enhance the operation of, the Western Hemisphere Institute for Security Cooperation. It would also provide that the Secretary’s annual report to Congress on the Institute shall include a 

copy of the latest report of the Board of Visitors, together with any 

comment of the Secretary on the Board’s report. 

The House bill contained no similar provision. 

The House recedes. 

Conforming amendment to reflect disestablishment of Department of 

Defense Consequence Management Program Information Office 

(sec. 933) 

The House bill contained a provision (sec. 906) that would 

amend section 12310 (c)(3) of title 10, United States Code, to strike 

a reference to the Department of Defense Consequence Management Program Integration Office (COMPIO). The provision reflects 

the fact that the Deputy Secretary of Defense disestablished 

COMPIO on February 14, 2001, directing that its functions be integrated into existing Department of Defense organizations and processes to ensure greater effectiveness and oversight of programs. 

The Senate amendment included an identical provision (sec. 

1042) under a different title. 

The House recedes with an amendment modifying the title. 

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Increase in number of Deputy Commandants of the Marine Corps 

(sec. 934) 

The House bill contained a provision (sec. 501) that would increase the authorized number of deputy commandants at Headquarters, United States Marine Corps, from five to six. 

The Senate amendment contained an identical provision (sec. 

902). 

The conference agreement includes this provision. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Change in title of Secretary of the Navy to the Secretary of the Navy 

and the Marine Corps 

The House bill contained a provision (sec. 901) that would redesignate the title of the Secretary of the Navy to the Secretary of 

the Navy and the Marine Corps. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees consider the proposal to change the title of the 

Secretary of the Navy to the Secretary of the Navy and Marine 

Corps a serious initiative deserving more study and deliberation, 

including hearings. While some misunderstandings may stem from 

the traditional reliance on the singular term ‘‘Navy’’ to encompass 

all the sea services, the conferees consider it essential to consider 

additional factors and considerations, including historical antecedents. The conferees agree to provide maximum opportunities 

during the 108th Congress for interested individuals and groups to 

provide information and recommendations regarding this important 

issue. 

Report on effect of operations other than war on combat readiness 

of the Armed Forces 

The House bill contained a provision (sec. 905) requiring the 

Secretary of Defense to submit a report to the Committees on 

Armed Services of the Senate and House of Representatives on the 

effect of operations other than war on the combat readiness of the 

Armed Forces. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees understand that the Department of Defense 

(DOD) has initiated improvements to readiness reporting in the 

new Defense Readiness Reporting System (DRRS). The conferees 

expect that this system will provide greater visibility into the impact of all types of operations, including operations other than war, 

on the ability of U.S. forces to conduct their assigned missions. The 

conferees direct DOD, in implementing DRRS, to ensure that it 

captures readiness effects not only for forces that are directly engaged in operations, but also for those forces and units that are 

preparing to participate in or are re- training after recent deployments. 

The conferees also understand that DOD has commissioned, 

and continues to commission, studies by various groups and organizations on the broader effects of operational deployments, including 

their impact on recruiting, retention, and performance. Given the 

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importance of these issues, the conferees expect that these reports 

will also be provided to the congressional defense committees.

TITLE X—GENERAL PROVISIONS

Deferral of expenditures on financial management and feeder systems 

Section 1004 of the conference agreement accompanying the 

National Defense Authorization Act for Fiscal Year 2003 would require the Secretary of Defense to develop a financial management 

enterprise architecture and a transition plan for implementing that 

architecture. Under this provision, expenditures for financial management system improvements in excess of $1.0 million would be 

permitted only if the Under Secretary of Defense (Comptroller) determines that such expenditures are necessary to meet critical requirements or prevent significant adverse effects on projects needed to achieve essential capabilities. 

Titles I, II and III of the conference report include reductions 

totaling $400.0 million, in proportion to proposed spending on information technology development modernization for functional area 

applications in each account. The specific reductions reflected in 

these titles are as follows: 

Other Procurement, Army—$53.2 million; 

Other Procurement, Navy—$20.6 million; 

Other Procurement, Air Force—$12.0 million; 

Procurement, Marine Corps—$3.4 million; 

Other Procurement, Defense-wide—$3.5 million; 

Research and Development, Army—$17.7 million; 

Research and Development, Navy—$25.6 million; 

Research and Development, Air Force—$27.2 million; 

Research and Development, Defense-wide—36.6 million; 

Defense Health Programs—$32.1 million; 

Defense Working Capital Fund Operations—$148.6 million; 

Operation and Maintenance, Defense-wide—$19.5 million. 

The conferees expect the Department to achieve these reductions by implementing the requirements of section 1004 and restricting the development of Department of Defense business systems until the Department has completed its proposed architecture 

and transition plan and is in a position to ensure that business system expenditures will be consistent with that architecture and 

plan. 

The conferees note that section 1507 of the conference report 

would authorize the Secretary of Defense to transfer funds out of 

the contingency fund authorized by title XV to offset the reductions 

described above, in the event that the Secretary determines that 

the required savings are not achievable. 

Drug interdiction and counterdrug activities 

The budget request included $998.7 million for drug interdiction and counterdrug activities of the Department of Defense, 

$848.9 million in the central transfer account and $149.8 million 

in the operating budgets of the military services for authorized 

counterdrug operations. 

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The conferees agree to the following fiscal year 2003 budget for 

the Department’s counterdrug activities:

DRUG INTERDICTION AND COUNTERDRUG ACTIVITIES, CENTRAL TRANSFER ACCOUNT

[In thousands of dollars; may not add due to rounding] 

Fiscal Year 2003 Counterdrug Request ............................................................... $848.9 

Increases: 

National Guard Support ......................................................................... 23.5 

National Guard C–26 Aircraft ................................................................ 2.1 

Mexico Information Analysis Center ..................................................... 1.5 

Southwest Border Fence ......................................................................... 6.7 

Decreases: 

1404 DEA Support ................................................................................... 1.3 

4208 Hemispheric Radar System ........................................................... 5.0 

3348 TAGOS ............................................................................................ 12.0 

1401 NIMA CD Support .......................................................................... .5 

1102 ADNET ............................................................................................ .5 

2440 CMS ................................................................................................. 2.0 

9203 Mexico Training .............................................................................. 1.5 

Fiscal Year 2003 Counterdrug Funding ............................................................... 859.9

Improved management of Department of Defense contracting for 

services 

Section 802 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107) established goals for improved 

management of the Department’s $50.0 billion of services contracts. 

The conference report would repeal these statutory goals and establish new goals for the increased use of performance-based services 

contracts and competitive purchases of services under multiple 

award contracts. 

Titles I, II and III of the conference report accompanying the 

National Defense Authorization Act for Fiscal Year 2003 include 

reductions totaling $600.0 million, to be achieved through the implementation of the new statutory goals and other improvements in 

the management of services contracts. The specific reductions reflected in these titles are as follows:

Aircraft Procurement, Army—$3.7 million; 

Missile Procurement, Army—$2.9 million; 

Procurement of Wheeled and Tactical Vehicles, Army—$4.0 

million; 

Procurement of Ammunition, Army—$2.0 million; 

Other Procurement, Army—$9.2 million; 

Aircraft Procurement, Navy—$5.7 million; 

Weapons Procurement, Navy—$2.3 million; 

Shipbuilding and Conversion, Navy—$5.7 million; 

Procurement of Ammunition, Navy & Marine Corps—$0.7 million; 

Other Procurement, Navy—$3.0 million; 

Procurement, Marine Corps—$0.9 million; 

Other Procurement, Air Force—$1.5 million; 

Procurement, Defense-Wide—$1.1 million; 

Research and Development, Army—$9.7 million; 

Research and Development, Navy—$4.9 million; 

Research and Development, Air Force—$31.9 million; 

Research and Development, Defense-wide—$17.8 million; 

Operation and Maintenance, Army—$135.9 million; 

Operation and Maintenance, Navy—$107.5 million; 

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Operation and Maintenance, Air Force—$149.2 million; 

Operation and Maintenance, Marine Corps—$11.5 million; 

Operation and Maintenance, Defense-wide—$90.0 million. 

The conferees expect the Department to distribute these reductions across budget activities and programs within the relevant appropriations accounts, based on the dollar value of contracts within 

those budget activities and programs to which improvements may 

be appropriately applied. 

The conferees note that section 1507 of the conference report 

would authorize the Secretary of Defense to transfer funds out of 

the contingency fund authorized by title XV to offset the reductions 

described above, in the event that the Secretary determines that 

the required savings are not achievable. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Financial Matters 

Transfer authority (sec. 1001) 

The House bill contained a provision (sec. 1001) that would 

provide $2.0 billion in transfer authority among accounts in Division A of this Act for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

1001) that would provide $2.5 billion in transfer authority. 

The Senate recedes with an amendment that would provide 

$2.0 billion in transfer authority for fiscal year 2003 and would increase the transfer authority for fiscal year 2002 from $2.0 billion 

to $2.5 billion. 

Authorization of supplemental appropriations for fiscal year 2002 

(sec. 1002) 

The House bill contained a provision (sec. 1002) that would authorize supplemental appropriations for the Department of Defense 

and the national security activities of the Department of Energy for 

fiscal year 2002. The House bill would also require prior notification before funds were transferred from the Defense Emergency Response Fund (DERF) or other transfer accounts. 

The Senate amendment contained a similar provision (sec. 

1004). 

The Senate recedes with an amendment that would authorize 

supplemental appropriations for the Department of Defense and 

the national security activities of the Department of Energy for fiscal year 2002 contained in the 2002 Supplemental Appropriations 

Act for Further Recovery From and Response To Terrorist Attacks 

on the United States (Public Law 107–206) and would require a report on all Department of Defense transfers from the DERF or 

other transfer accounts during fiscal year 2002. 

United States contribution to NATO common-funded budgets in fiscal year 2003 (sec. 1003) 

The Senate amendment contained a provision (section 1005) 

that would authorize the U.S. contribution to NATO common-funded budgets for fiscal year 2003, including the use of unexpended 

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tocol to the North Atlantic Treaty of 1949 on the Accession of Poland, Hungary and the Czech Republic contained a provision 

(section 3(2)(c)(ii)) requiring a specific authorization for U.S. payments to the common-funded budgets of NATO for each fiscal year, 

beginning in fiscal year 1999, that payments exceed the fiscal year 

1998 total. 

The House bill contained no similar provision. 

The House recedes. 

Development and implementation of financial management enterprise architecture (sec. 1004)

The House bill contained a provision (sec. 1007) that would: (1) 

require the Secretary of Defense to submit a report to the congressional defense committees on the goals and objectives of the financial management modernization plan of the Department of Defense 

(DOD); and (2) require the approval of the DOD Comptroller prior 

to any new contract for the acquisition or upgrade of a financial 

management or feeder system. 

The Senate amendment contained a provision (sec. 1006) that 

would: (1) require the Secretary to develop a comprehensive financial management enterprise architecture for all DOD budgetary, 

accounting, finance and data systems; and (2) require the approval 

of the Financial Management Modernization Executive Committee 

for any significant expenditures on financial system improvements 

that would be inconsistent with the new architecture. 

The House recedes with an amendment that would: (1) extend 

the deadline for the development of the new enterprise architecture; (2) require the DOD Comptroller, rather than the Financial 

Management Modernization Executive Committee, to approve significant new expenditures; (3) repeal outdated reporting requirements and substitute a streamlined annual report on compliance 

with the new requirements; and (4) harmonize the language of the 

provision with existing guidance issued by DOD and the Office of 

Management and Budget. 

Accountable officials in the Department of Defense (sec. 1005) 

The House bill contained a provision (sec. 1004) that would authorize the Secretary of Defense to designate certain Department 

of Defense employees and members of the Armed Forces as departmental accountable officials who could be held pecuniarily liable for 

illegal, improper, or incorrect payments when the official who certified payment relied on information provided through fault or negligence of the departmental accountable official. 

The Senate amendment contained a similar provision (sec. 

1007). 

The Senate recedes with a clarifying amendment. 

Uniform standards throughout Department of Defense for exposure 

of personnel to pecuniary liability for loss of Government property (sec. 1006) 

The Senate amendment contained a provision (sec. 1008) that 

would authorize any officer of the Armed Forces or any civilian employee of the Department of Defense designated by regulation to 

act on reports of survey and vouchers pertaining to the loss, spoilVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00709 Fmt 6601 Sfmt 6602 E:\HR\OC\HR772.XXX HR772
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age, unserviceability, unsuitability, destruction of, or damage to, 

property of the United States under the control of the Department 

of Defense. 

The House bill contained a similar provision (sec. 1003). 

The House recedes with a clarifying amendment. 

Improvements in purchase card management (sec. 1007) 

The House bill contained a provision (sec. 1005) that would require the Secretary of Defense to prescribe regulations including 

safeguards and internal controls for the use of purchase cards by 

Department of Defense personnel. 

The Senate amendment contained a similar provision (sec. 

814). 

The Senate recedes with an amendment that would provide additional detail on required audits and purchase card policies. The 

amendment would also clarify that required training and reviews 

are to be conducted on a periodic basis, rather than an annual 

basis. The conferees direct the Department to conduct annual 

training and reviews in calendar years 2003 and 2004 but understand that less frequent training and reviews may be adequate to 

protect the Department’s interests in subsequent years. 

The conferees direct the Comptroller General to review the actions that have been taken within the Department of Defense to 

comply with the requirements of this section and submit a report 

on those actions to the congressional defense committees no later 

than one year after the date of enactment of this Act. 

Improvements in travel card management (sec. 1008) 

The Senate amendment contained a provision (sec. 1009) that 

would authorize direct payment to the issuer of a Defense travel 

card of official travel or transportation expenses charged on the Defense travel card by a Department of Defense employee or member. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

direct payment to the issuer of a Defense travel card of official 

travel or transportation expenses charged on the Defense travel 

card by a Department of Defense employee or member and by 

former employees of the Department of Defense and retired members of the Armed Forces who are receiving retired pay. 

Clearance of certain transactions recorded in Treasury suspense accounts and resolution of certain check issuance discrepancies 

(sec. 1009)

The Senate amendment contained a provision (sec. 1010) that 

would authorize the Department of Defense to cancel longstanding 

debit and credit transactions that cannot be cleared from the Department’s books because they have been misrecorded to the wrong 

appropriation. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

The conferees direct the Comptroller General to review the Department’s use of the authority provided by this section and report 

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sional defense committees no later than six months after the date 

on which such authority expires. 

Authorization of funds for ballistic missile defense programs or 

combating terrorism programs of the Department of Defense 

(sec. 1010) 

The Senate amendment contained a provision (sec. 1011) that 

would authorize $814.3 million, the amount by which the Senate 

bill reduced funding for ballistic missile defense programs, for 

whichever of the following purposes the President determines to be 

in the national security interests of the United States: 

(1) Research, development, test and evaluation (RDT&E) of 

ballistic missile defense (BMD) programs of the Department of Defense (DOD); and 

(2) DOD activities for combating terrorism. The amendment 

would reduce the amount authorized to be appropriated for other 

defense programs by $814.3 million to reflect amounts that the Secretary of Defense determines unnecessary by reason of a revision 

of assumptions regarding inflation. The amendment would also 

specify that the top priority for the use of additional funds made 

available by a lower rate of inflation shall be combating terrorism. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

an additional $814.3 million to be available for RDT&E of BMD 

programs and activities of DOD to combat terrorism, whichever the 

President determines to be in the national security interests of the 

United States. The amendment would also require the Secretary of 

Defense to report to the congressional defense committees on the 

allocation of the funds pursuant to the President’s determination 

and the basis for such determination. 

Reduction in overall authorization due to inflation savings (sec. 

1011) 

The Senate amendment contained a provision (sec. 1011) that 

would reduce the amount authorized to be appropriated to the Department of Defense by $814.3 million to reflect the reduced inflation estimates included in the Office of Management and Budget’s 

2002 mid-session review of the budget. 

The House bill contained no similar provision. 

The House recedes with an amendment that would reduce the 

amounts authorized to be appropriated for the operation and maintenance, procurement, and research and development accounts in 

this Act by $1.0 billion to reflect these inflation savings. The reductions would be allocated among the accounts in these titles to reflect the extent to which inflation savings are available in each account. 

The conferees direct the Secretary to ensure the allocation of 

any inflation reductions is included in the applicable base for reprogramming reports that the Department submits to Congress. 

688

Subtitle B—Naval Vessels and Shipyards 

Number of Navy combatant surface vessels in active and reserve 

service (sec. 1021) 

The Senate amendment contained a provision (sec. 1021) that 

would require the Secretary of the Navy to submit a report should 

the surface combatant ship active and reserve force drop below 116 

ships. The provision would also require the Secretary to retain on 

the Naval Vessel Register a sufficient number of ships which could 

be reactivated within 120 days notice to provide a surge capability 

to regain the level of 116 surface combatants described in the 2001 

Quadrennial Defense Review. 

The House bill contained no similar provision. 

The House recedes with an amendment that would incorporate 

the requirements of the Senate provision in title 10, United States 

Code. 

Annual long-range plan for the construction of naval vessels (sec. 

1022) 

The Senate amendment contained a provision (sec. 1024) that 

would require the Secretary of Defense to submit, with the annual 

budget request, a 30-year shipbuilding plan. 

The section also included a number of findings, including: 

(1) Navy ships provide a forward presence for the United 

States that is key to the national defense of the United States.

(2) The Navy has demonstrated that its ships contribute 

significantly to homeland defense. 

(3) The Navy’s ship recapitalization plan is inadequate to 

maintain the ship force structure that is described as the current force in the 2001 Quadrennial Defense Review. 

(4) The Navy is decommissioning ships as much as 10 

years earlier than the projected ship life upon which ship replacement rates are based. 

(5) The current force was assessed in the 2001 Quadrennial Defense Review as having moderate to high risk, depending on the scenario considered. 

The House bill contained no similar provision. 

The conferees agree with the findings included in the Senate 

provision. 

The House recedes with an amendment that would remove the 

findings from the provision but would support the required annual 

long-range plan. 

Assessment of the feasibility of the expedited equipping of a Navy 

ship with a version of the 155-millimeter Advanced Gun System 

(sec. 1023) 

The Senate amendment contained a provision (sec. 1022) that 

would require the Secretary of the Navy to submit a plan for fielding a 155-millimeter gun on a ship not later than the end of fiscal 

year 2006. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Navy to submit a feasibility assessment of fielding a 155-millimeter 

gun on a ship not later than the end of fiscal year 2006. 

689

Report on initiatives to increase operational days of Navy ships (sec. 

1024) 

The Senate amendment contained a provision (sec. 1023) that 

would require the Under Secretary of Defense for Acquisition, 

Technology, and Logistics to submit, to the Committees on Armed 

Services of the Senate and House of Representatives, a report on 

initiatives to increase the ship operational days available to regional combatant commanders without increasing the number of 

ships and without extending deployments. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require 

that the report include an assessment of how the Navy would conduct routine programmed ship maintenance for Navy ships that 

would remain in forward operating areas. 

Ship combat system industrial base (sec. 1025) 

The House bill contained a provision (sec. 1030) that would require the Secretary of Defense to report to the congressional defense committees on the effect of the DD(X) contract award on the 

industrial base for ship combat system development, including ship 

systems integration, radar electronic warfare, launch systems, and 

other components. 

The Senate amendment contained no similar provision. 

The Senate recedes with a clarifying amendment. 

Sense of Congress concerning aircraft carrier force structure (sec. 

1026) 

The House bill contained a provision (sec. 1028) that would 

state the sense of Congress that there should be at least 12 aircraft 

carriers. 

The Senate amendment contained no similar provision. 

The Senate recedes with a clarifying amendment. 

Conveyance, Navy drydock, Portland, Oregon (sec. 1027) 

The House bill contained a provision (sec. 1025) that would authorize the Secretary of the Navy to sell a drydock in Portland, Oregon to Portland Shipyard, LLC for fair market value. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Subtitle C—Strategic Matters 

Strategic force structure plan for nuclear weapons and delivery systems (sec. 1031) 

The House bill contained a provision (sec. 1014) that would require the Secretaries of Defense and Energy to jointly prepare a 

baseline nuclear force structure plan for the period covered by, and 

consistent with, the Nuclear Posture Review submitted to Congress 

on January 8, 2002. The plan would include the warheads, weapon 

systems, and delivery vehicles required to execute the national defense strategy, as well as the infrastructure, modernization and life 

extension plans, and other elements of the defense program of the 

United States necessary to sustain that force structure. The section 

would require submission of a report to the congressional defense 

690

committees on the force structure and a budget plan to support 

that force structure by January 1, 2003, but would permit the 

President to defer submission of the report to a certain date should 

the President determine that it is in the national security interest 

of the United States to submit the report on a later date. Finally, 

the provision would require a report to be submitted to Congress 

by the Secretary of Energy on options for achieving, prior to fiscal 

year 2012, a posture under which the United States maintains no 

more than 1700–2200 deployed nuclear weapons and that would 

look at achieving such levels of such weapons in fiscal years 2006, 

2008 and 2010. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would add additional elements to and modify the scope of the report. The amendment would also require both the Secretary of Defense and Energy 

to evaluate the advantages and disadvantages of options to reduce 

the level of operationally deployed nuclear weapons to 1,700–2,200 

warheads as early as 2007. While the Secretaries may choose the 

range of dates to be considered as options one of those options must 

be the achievement of the warhead goal of 1,700–2,200 operationally deployed warheads by 2007. The provision would require the 

Secretaries to submit the report to the congressional defense committees no later than March 1, 2003. 

Annual report on weapons to defeat hardened and deeply buried 

targets (sec. 1032) 

The Senate amendment contained a provision (sec. 1032) that 

would require the Secretary of Defense, in conjunction with the 

Secretary of Energy and the Director of Central Intelligence, to 

submit an annual report on the research and development activities under their respective jurisdictions during the preceding fiscal 

year to develop a weapon to defeat hardened and deeply buried targets. The report would be submitted no later than April 1 of each 

year. 

The House bill contained no similar provision. 

The House recedes with an amendment that would expand the 

report to include procurement and other activities undertaken to 

develop a weapon to defeat hardened and deeply buried targets. In 

addition, the activities of the defense agencies would be specifically 

included in the report, and the reporting requirement would be limited to five years. 

The conferees are concerned that substantial amounts of 

money are being spent for a wide variety of hardened and deeply 

buried target-related activities within the defense and intelligence 

communities and that these many programs are not sufficiently coordinated. The conferees believe this report will be useful to ensure 

that the hardened and deeply buried target challenge is addressed 

in a coordinated way to meet established requirements and that 

the funds are spent efficiently. 

Report on effects of nuclear earth-penetrator weapon and other 

weapons (sec. 1033) 

The House bill contained a provision (sec. 1018) that would direct the Secretary of Defense to request the National Academy of 

691

Sciences to conduct a study and prepare a report on the short and 

long-term effects on the surrounding civilian populations: (1) of the 

use by the United States of a nuclear earth penetrator weapon on 

a target; (2) of the use of a non-penetrating nuclear weapon on a 

hard or deeply buried target; and (3) of the use of a conventional 

high-explosive weapon on facilities to store and produce weapons of 

mass destruction when the involved materials or contaminants are 

released into populated areas. The report would be required to be 

submitted to Congress no later than 180 days after the day of enactment of this Act. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

Subtitle D—Reports 

Repeal and modification of various reporting requirements applicable to the Department of Defense (sec. 1041) 

The House bill contained a provision (sec. 1016) that would repeal or modify a number of obsolete or superceded reporting requirements presently imposed by statute upon the Department of 

Defense. 

The Senate amendment contained a similar provision (sec. 

1031). 

The conferees agree to repeal or modify 22 reports currently required of the Department. 

Requirement that Department of Defense reports to Congress be accompanied by electronic version (sec. 1042) 

The House bill contained a provision (sec. 1013) that would require the Department of Defense to submit to Congress electronic 

versions of all unclassified reports that are required by law. 

The Senate amendment contained no similar provision. 

The Senate recedes.

Annual report on the conduct of military operations conducted as 

part of Operation Enduring Freedom (sec. 1043) 

The House bill contained a provision (sec. 1011) that would require the Secretary of Defense, in consultation with the Chairman 

of the Joint Chiefs of Staff, the Commander in Chief of the United 

States Central Command, and the Director of Central Intelligence, 

to submit to the Committees on Armed Services of the Senate and 

House of Representatives, the Select Committee on Intelligence of 

the Senate, and the Permanent Select Committee on Intelligence of 

the House two reports on the accomplishments and shortcomings 

of the conduct of military operations conducted as part of Operation 

Enduring Freedom. Each report would specifically include a discussion of the command, control, coordination and support relationship 

between United States Special Operations Forces and Central Intelligence Agency elements participating in the operation and recommendations to improve operational readiness and effectiveness. 

The first report would be required by June 15, 2003, and the final 

report would be required no later than 180 days after the cessation 

of hostilities. 

The Senate amendment contained no similar provision. 

692

The Senate recedes with an amendment that would require the 

Secretary of Defense to also submit annual reports by June 15 of 

each year, require the Secretary to include a definition of the military operations carried out as part of Operation Enduring Freedom, 

maintain as special matters to be included the discussion relating 

to special operations forces and recommendations for improvement, 

and add a number of other matters to be addressed in each report. 

Report on efforts to ensure adequacy of fire fighting staffs at military installations (sec. 1044) 

The Senate amendment contained a provision (sec. 1036) that 

would require a report to Congress on the adequacy of fire fighting 

staffs at military installations. 

The House bill contained no similar provision. 

The House recedes. 

Report on designation of certain Louisiana highway as Defense Access Road (sec. 1045) 

The Senate amendment contained a provision (sec. 1037) that 

would direct the Secretary of the Army to submit a report to the 

congressional defense committees on the advisability of designating 

Louisiana Highway 28 as a defense access road. 

The House bill contained no similar provision. 

The House recedes. 

Subtitle E—Extension of Expiring Authorities 

Extension of authority for Secretary of Defense to sell aircraft and 

aircraft parts for use in responding to oil spills (sec. 1051) 

The Senate amendment contained a provision (sec. 1063) that 

would extend for four years the authority for the Secretary of Defense to sell aircraft and aircraft parts for use in responding to oil 

spills. 

The House bill contained no similar provision. 

The House recedes. 

Six-month extension of expiring Governmentwide information security requirements; continued applicability of expiring Governmentwide information security requirements to the Department 

of Defense (sec. 1052) 

The Senate amendment contained a provision (sec. 1061) that 

would make expiring governmentwide information security requirements permanent with regard to the Department of Defense 

(DOD). 

The House bill contained no similar provision. 

The House recedes with an amendment that would: (1) extend 

for two years the applicability of the expiring requirements to 

DOD; and (2) extend for six months the applicability of these requirements to other federal agencies. 

693

Two-year extension of authority of the Secretary of Defense to engage 

in commercial activities as security for intelligence collection activities abroad (sec. 1053) 

The Senate amendment contained a provision (sec. 347) that 

would amend section 431(a) of title 10, United States Code, to extend the authority of the Secretary of Defense to engage in commercial activities as security for intelligence collection activities 

abroad until December 31, 2004. 

The House bill contained no similar provision. 

The House recedes. 

Subtitle F—Other Matters

Time for transmittal of annual defense authorization legislative proposal (sec. 1061) 

The House bill contained a provision (sec. 1022) that would require the Secretary of Defense to transmit to Congress the annual 

defense authorization legislative proposal for a fiscal year within 

30 days of the date the President transmits to Congress the budget 

for that fiscal year. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Technical and clerical amendments (sec. 1062) 

The House bill contained a provision (sec. 1023) that would 

make technical and clerical amendments. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment making additional 

technical and clerical amendments. 

Use for law enforcement purposes of DNA samples maintained by 

Department of Defense for identification of human remains (sec. 

1063) 

The House bill contained a provision (sec. 1027) that would require the Department of Defense to comply with a valid order of 

a Federal court or military judge to provide DNA samples for law 

enforcement purposes. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Enhanced authority to obtain foreign language services during periods of emergency (sec. 1064) 

The House bill contained a provision (sec. 1029) that would authorize the Secretary of Defense to establish and maintain a secure 

data registry of individuals who volunteer to provide linguistic 

services in times of emergency to assist the Department of Defense 

and other departments and agencies of the U.S. Government with 

translation and interpretation in languages designated as critical 

by the Secretary. 

The Senate amendment contained no similar provision. 

The Senate recedes with a clarifying amendment. 

694

Rewards for assistance in combating terrorism (sec. 1065) 

The Senate amendment contained a provision (sec. 1067) that 

would add a new section to chapter 3 of title 10, United States 

Code, to authorize the Secretary of Defense to pay a monetary reward, in an amount not to exceed $200,000, to a person for providing U.S. personnel with information or nonlethal assistance that 

is beneficial to an operation of the Armed Forces outside the 

United States against international terrorism or to force protection 

of the Armed Forces. The policies and procedures for offering and 

paying rewards would be coordinated with the Secretary of State 

and the Attorney General. The authority could be delegated to the 

commander of a combatant command to pay a reward in an 

amount not to exceed $50,000, and the combatant commander 

could further delegate such authority to pay rewards in an amount 

not to exceed $2,500. 

The House bill contained no similar provision. 

The House recedes with an amendment that would also authorize the payment of in-kind as well as monetary rewards, authorize rewards for assistance to an activity as well as an operation 

of the Armed Forces outside the United States, provide for delegation to the Deputy Secretary and an Under Secretary of Defense, 

and other clarifying amendments. 

Provision of space and services to military welfare societies (sec. 

1066) 

The Senate amendment contained a provision (sec. 1068) that 

would allow the secretaries of the military departments to provide 

space and services to military welfare societies without charge. 

The House bill contained no similar provision. 

The House recedes. 

Prevention and mitigation of corrosion of military equipment and 

infrastructure (sec. 1067) 

The Senate amendment contained a provision (sec. 904) that 

would require the Secretary of Defense to designate a senior official 

in the Department of Defense (DOD) to be responsible for developing corrosion prevention and mitigation policies, reviewing the 

services’ budgets to ensure adequate resources are being devoted to 

anti-corrosion efforts, and ensuring that anti- corrosion technologies and treatments are considered and inserted at appropriate 

points in the life cycle of both facilities and military equipment. 

The provision would further require DOD to develop a long-term 

strategy to increase the emphasis on corrosion prevention, establish 

common criteria for the military services when testing and evaluating new technologies, share useful information across DOD stovepipes, and coordinate a research and development plan to help 

transition new technologies into operational systems and current 

facilities. 

The House bill contained no similar provision. 

The House recedes with an amendment that allows the Secretary of Defense to designate a senior official or a standing board 

or committee to oversee DOD’s corrosion-related activities. The 

amendment also reduces the reporting requirements, although the 

conferees encourage DOD to take steps to improve the amount and 

695

quality of data available on the resources required to fight corrosion of military equipment and facilities. 

The conferees firmly believe that DOD can improve its management and coordination of anti-corrosion policies, regulations, 

and programs, and that these improvements result in greater efficiency and enhanced readiness and quality of life for service members. The conferees, therefore, urge DOD to act quickly to implement this provision. 

Transfer of historic DF–9E Panther Aircraft to Women Airforce 

Service Pilots Museum (sec. 1068) 

The Senate amendment contained a provision (sec. 1066) that 

would allow the Secretary of the Navy to convey a DF–9E Panther 

aircraft to the Women Airforce Service Pilots (WASP) Museum. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment to specify that 

the aircraft would be in a non-flyable condition. 

Increase in amount authorized to be expended for Department of Defense program to commemorate 50th anniversary of the Korean 

War (sec. 1069) 

The conference agreement includes a provision (sec. 1069) that 

would increase the amount authorized for expenditures by the Korean War Commemorative Committee from $7.0 million to $10.0 

million. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Assignment of members to assist Immigration and Naturalization 

Service and Customs Service 

The House bill contained a provision (sec. 1033) that would 

amend chapter 18 of title 10, United States Code, to authorize the 

Secretary of Defense to assign members of the Army, Navy, Marine 

Corps, and Air Force to assist the Immigration and Naturalization 

Service in preventing the entry of terrorists, drug traffickers, and 

illegal aliens into the United States, and to assist the Customs 

Service in the inspection of cargo, vehicles, and aircraft at points 

of entry into the United States to prevent the entry of weapons of 

mass destruction, components of such weapons, prohibited narcotics or drugs, or other terrorist or drug trafficking items. Such assignment could take place only at the request of the Attorney General or the Secretary of the Treasury, respectively. A member so assigned could not make an arrest or perform a search, seizure, or 

similar law enforcement activity. 

The Senate amendment contained no similar provision. 

The House recedes. 

Authority to transfer funds within a major acquisition program 

from Procurement to Research, Development, Test and Evaluation 

The House bill contained a provision (sec. 1006) that would 

provide the Secretary of Defense limited authority to transfer funds 

from Procurement to Research, Development, Test, and Evaluation 

for the same acquisition program. 

696

The Senate amendment contained no similar provision. 

The House recedes. 

Availability of amounts for Oregon Army National Guard for search 

and rescue and medical evacuation missions in adverse weather 

conditions 

The Senate amendment contained a provision (sec. 1012) that would authorize $3.0 million to upgrade three UH–60L Blackhawk 

helicopters of the Oregon Army National Guard to improve their 

utility in search and rescue (SAR) and medical evacuation missions. The provision further authorized $1.8 million for up to 26 additional military personnel to perform these missions. 

The House bill contained no similar provision. 

The Senate recedes on the provision. The Army aircraft procurement table contained in this report describes the conference 

agreement for helicopter upgrades to improve SAR capabilities. 

Charter grant to Korean War Veterans Association 

The Senate amendment contained a provision (sec. 1070) that 

would grant a federal charter to the Korean War Veterans Association, Incorporated. 

The House bill contained no similar provision. 

The Senate recedes.

The conferees’ decision reflects the agreement contained in the 

statement of managers accompanying sections 1501 through 1516 

of the National Defense Authorization Act for Fiscal Year 1998 

(Public Law 105–85) that, ‘‘in the future, amendments to the National Defense Authorization Bill that would grant a federal charter should not be included in a conference agreement unless favorably recommended by the committees of jurisdiction.’’

Enhanced cooperation between United States and Russian Federation to promote mutual security 

The House bill contained a provision (sec. 1031) that would 

state that it is the policy of the United States to pursue greater cooperation with the Russian Federation regarding nuclear weapons 

policy, force structure, safeguards, testing, and proliferation prevention, as well as nuclear weapons infrastructure, production, and 

dismantlement, so as to promote mutual security, stability, and 

trust. The provision would also set forth a sense of Congress that 

the President of the United States should continue to engage the 

President of the Russian Federation in the interest of preventing 

illicit use, theft, diversion, and proliferation of nuclear weapons. 

The provision would encourage a series of reciprocal programs of 

joint visits and conferences dealing with nuclear weapons, ballistic 

missile defenses, nonproliferation, disposition of weapons grade nuclear materials and spent reactor fuel. The provision would also require the President to submit a report to Congress on the status 

and description of the various actions to develop such programs 

with the Russian Federation and the response of the Russian Federation, as well as an assessment of the Russian Federation’s commitment to a better, closer relationship with the United States 

based on the principles of increased cooperation and transparency. 

The Senate amendment contained no similar provision. 

697

The House recedes. 

Homeland security activities of the National Guard 

The Senate amendment contained a provision (sec. 1041) that 

would amend title 32, United States Code, to authorize the Governor of a State, at the request of a federal law enforcement agency 

and with the concurrence of the Secretary of Defense, to order personnel of the National Guard of a State to perform full-time National Guard duty for the purpose of carrying out homeland security activities. Such personnel would be provided for a limited time 

until the agency could recruit and train sufficient personnel to perform these activities. The Secretary of Defense would provide funds 

to the Governor to fund the costs of the National Guard personnel 

and would be reimbursed by the agency receiving the support. The 

activities would be provided pursuant to a memorandum of understanding between the Secretary of Defense and the Governor. 

The House bill contained no similar provision. 

The Senate recedes. 

Limitation on duration of future Department of Defense reporting 

requirements 

The House bill contained a provision (sec. 1020) that would 

automatically sunset recurring congressional defense reporting requirements after five years. 

The Senate amendment contained no similar provision. 

The House recedes. 

Reallocation of authorizations of appropriations from ballistic missile defense to shipbuilding 

The Senate amendment contained a provision (sec. 1002) that 

would transfer funding from ballistic missile defense programs to 

shipbuilding programs. 

The House bill contained no similar provision. 

The Senate recedes. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Report on biological weapons defense and counterproliferation 

The House bill contained a provision (sec. 1012) that would require a report on U.S. biological weapons defense and 

counterproliferation programs, including information on impediments to the biological weapons counterproliferation efforts. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees have addressed the issue of information about 

impediments to U.S. biological counterproliferation efforts in a separate section that is described elsewhere in this report. 

Report on effects of nuclear-tipped ballistic missile interceptors and 

nuclear missiles not intercepted 

The House bill contained a provision (sec. 1019) that would direct the Secretary of Defense to request the National Academy of 

Sciences to study and report on the effects of the use of a nuclearVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00721 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
698

tipped interceptor and the effects on a major U.S. city of the detonation of a nuclear weapon delivered by a ballistic missile. 

The Senate amendment contained no similar provision. 

The House recedes. 

Sense of Congress on maintenance of a reliable, flexible, and robust 

strategic deterrent 

The House bill contained a provision (sec. 1021) that would set 

forth a sense of Congress that the President should maintain a reliable, flexible, and robust strategic deterrent consistent with the national defense strategy outlined in the Quadrennial Defense Review, the Nuclear Posture Review, and the global strategic environment. 

The Senate amendment contained no similar provision. 

The House recedes. 

Sense of Congress on prohibition of use of funds for International 

Criminal Court 

The House bill contained a provision (sec. 1034) that would 

prohibit the use of funds appropriated pursuant to authorizations 

of appropriations in this Act for any assistance to, cooperation 

with, or support for the International Criminal Court. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees note that, subsequent to passage of the House 

bill, the President signed legislation making supplemental appropriations for fiscal year 2002 (Public Law 107–206). That legislation contained the American Servicemembers’ Protection Act of 

2002, which protects United States military personnel and other 

elected and appointed officials of the United States Government 

against criminal prosecution by the International Criminal Court. 

Accordingly, the House provision is no longer necessary. 

Transfer of funds to increase amounts for PAC–3 missile procurement and Israeli Arrow program 

The House bill contained a provision (sec. 1032) that would 

transfer funding to the PAC–3 and Arrow programs from other 

Missile Defense Agency programs. 

The Senate amendment contained no similar provision. 

The House recedes. 

By convention, outcomes of funding differences between the 

House bill and the Senate amendment are included in the tables 

elsewhere in this report. 

Utah Test and Training Range 

Title XIV of the House bill contained a series of provisions that 

would designate certain lands in Utah around the Utah Test and 

Training Range (UTTR) as wilderness areas. Low level military 

overflights, special use airspace designations, installation of electronic equipment, and emergency access would be unrestricted in 

these wilderness areas. Title XIV would also prohibit the Secretary 

of the Interior from developing or revising certain land use plans 

in Utah without the prior concurrence of the Secretary of the Air 

Force and the State of Utah. 

699

The Senate amendment contained no similar provision. 

The House recedes. 

War risk insurance for vessels in support of NATO-approved operations 

The House bill contained a provision (sec. 1024) that would authorize the Secretary of Transportation to provide war risk insurance to a commercial vessel that is supporting a shared logistics 

military operation approved by the North Atlantic Council. This 

section would also authorize the Secretary of Transportation, with 

the concurrence of the Secretary of State, to seek from another nation a commitment to indemnify the United States for any amounts 

paid by the United States for claims against such insurance. 

The Senate amendment contained no similar provision. 

The House recedes.

TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

LEGISLATIVE PROVISIONS ADOPTED

Eligibility of Department of Defense nonappropriated fund employees for long-term care insurance (sec. 1101) 

The House bill contained a provision (sec. 1101) that would 

permit nonappropriated fund employees of the Department of Defense to participate in the employee-funded federal long-term care 

insurance program. 

The Senate amendment contained a similar provision (sec. 

1104). 

The Senate recedes. 

Extension of Department of Defense authority to make lump-sum 

severance payments (sec. 1102) 

The House bill contained a provision (sec. 1102) that would extend from September 30, 2003 to September 30, 2006, the authority 

of the Secretary of Defense to pay lump-sum severance payments 

to civilian employees. The provision would also require the President to report to Congress whether this authority should be made 

permanent or extended to other federal agencies. 

The Senate amendment contained a similar provision (sec. 

1101). 

The Senate recedes with an amendment specifying the congressional committees to whom the report must be submitted. 

Continuation of Federal Employee Health Benefits Program eligibility (sec. 1103) 

The House bill contained a provision (sec. 1104) that would extend for three years eligibility for continued health care coverage 

under the Federal Employee Health Benefits Program of certain 

Department of Defense civilian employees who are separated due 

to a reduction in force. 

The Senate amendment contained a similar provision (sec. 

1103). 

The Senate recedes. 

700

Certification for Department of Defense professional accounting positions (sec. 1104) 

The House bill contained a provision (sec. 1106) that would authorize the Secretary of Defense to prescribe professional certification and credential standards for professional accounting positions. 

The Senate amendment contained a similar provision (sec. 

1106). 

The Senate recedes. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Common occupational and health standards for differential payments as a consequence of exposure to asbestos 

The House bill contained a provision (sec. 1103) that would establish a common standard for payment of environmental differential pay for exposure to asbestos for prevailing rate and general 

schedule federal employees. 

The Senate amendment contained no similar provision. 

The House recedes. 

Currently, general schedule employees are entitled to eight 

percent differential pay when working conditions result in exposure 

to asbestos exceeding the permissible exposure limits established 

by the Occupational Safety and Health Administration. The existing environmental differential pay for wage-grade employees also 

entitles them to the same eight percent differential pay but does 

not set an objective measure for determining the level of asbestos 

exposure necessary to qualify for environmental differential pay. 

This has led to inconsistent application of environmental differential pay. 

The conferees remain concerned that this issue was not addressed as directed in the statement of managers accompanying 

the National Defense Authorization Act for Fiscal Year 2002 

(Public Law 107–107). The conferees encourage the Federal Prevailing Rate Advisory Committee (FPRAC) to continue its review of 

this issue, which provides a forum for interested parties. The conferees expect the FPRAC to consider adoption of a consistent, objective means of measuring asbestos exposure for federal prevailing 

rate and general schedule employees that addresses the actual risk 

of asbestos exposure based on scientific and empirical data. 

Extension of voluntary separation incentive pay authority 

The Senate amendment contained a provision (sec. 1102) that 

would extend from September 30, 2003, to September 30, 2006, the 

authority of the Secretary of Defense to pay voluntary separation 

incentive pay to civilian employees. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees were unable to include this provision because of 

the lack of an adequate mandatory funding allocation. 

The conferees are well aware of a potential human capital crisis facing the Federal Government and its impact on the Department of Defense. The conferees know that the Department has developed a human resources strategic plan designed to provide a 

701

roadmap to the future and has aggressively implemented many civilian personnel demonstration authorities granted by Congress. 

However, these steps alone may not be sufficient to meet the demand for new hires and to accommodate the reshaping necessary 

to transform the Department. The conferees encourage the Department to use existing authorities to the fullest extent possible. 

In order to address this potential human capital crisis, the conferees direct the Secretary of Defense to review the human resources strategic plan and the existing civilian personnel demonstration authorities and, no later than March 31, 2003, provide 

to the Committees on Armed Services of the Senate and House of 

Representatives, the Committee on Government Affairs of the Senate, and the Committee on Government Reform and Oversight of 

the House of Representatives an assessment of the effectiveness of 

these authorities and recommend any legislative changes necessary 

to effectively and efficiently manage the civilian employees of the 

Department of Defense. 

Increased maximum period of appointment under the experimental 

personnel program for scientific and technical personnel 

The Senate amendment contained a provision (sec. 1105) that 

would extend the maximum period of appointment under an experimental personnel program for scientific and technical personnel. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees recognize the importance of offering a competitive retirement benefit in order to recruit and retain highly qualified employees for these temporary positions. The conferees also 

recognize, however, that the benefit, which is defined by the Federal Employees Retirement System, is not portable and is therefore 

not likely to be attractive to many qualified individuals, particularly those in the early and middle stages of their careers. Therefore, the conferees direct the Secretary of Defense to study alternative retirement proposals, including a fully portable, defined contribution plan or, where appropriate, to permit employees in these 

positions to continue to participate in non-federal retirement plans. 

The results of the study and any such legislative proposal as the 

Secretary deems appropriate shall be submitted to Congress as 

part of the annual report on the program that is required by section 1101 of the Strom Thurmond National Defense Authorization 

Act for Fiscal Year 1999 (Public Law 105–261). 

Triennial full-scale federal wage system wage surveys 

The House bill contained a provision (sec. 1105) that would 

change the full-scale federal wage system wage survey cycle conducted by the Office of Personnel Management from two to three 

years. 

The Senate amendment contained no similar provision. 

The House recedes.

702

TITLE XII—MATTERS RELATING TO OTHER NATIONS

LEGISLATIVE PROVISIONS ADOPTED

Authority to provide administrative services and support for coalition liaison officers (sec. 1201) 

The House bill contained a provision (sec. 1203) that would authorize the Secretary of Defense and the secretaries of the military 

departments to provide administrative services and support to foreign liaison officers performing duties, through the Department of 

Defense Foreign Liaison Officer Program, at military facilities in 

the United States. 

The Senate amendment contained a provision (sec. 1211) that 

would authorize the Secretary of Defense to provide administrative 

support and services to coalition liaison officers while they are temporarily assigned to the headquarters of a combatant command, 

component command, or subordinate operational command in connection with the planning for, or conduct of, a coalition operation. 

The Secretary would also be authorized to pay the travel, subsistence, and personnel expenses of a liaison officer of a developing 

country in connection with the assignment of that liaison officer to 

the headquarters of a combatant command if the assignment is requested by the commander of the combatant command. 

The House recedes with an amendment that would limit the 

payment of personal expenses for a liaison officer from a developing 

country to those which are directly necessary to carry out the duties of that officer in connection with the assignment, provide for 

the authority under this section to expire on September 30, 2005, 

and require the Comptroller General to submit a report to the 

Committees on Armed Services of the Senate and House of Representatives by March 1, 2005, on the implementation of this authority. 

Authority to pay for certain travel of defense personnel of countries 

participating in NATO Partnership for Peace program (sec. 

1202) 

The Senate amendment contained a provision (sec. 1212) that 

would amend section 1051 of title 10, United States Code, to authorize the Secretary of Defense to pay for the travel-related expenses of defense personnel from a developing country participating in the North Atlantic Treaty Organization’s (NATO) Partnership for Peace (PfP) program to the territory of any of the countries participating in the PfP program or of any of the NATO member countries. 

The House bill contained no similar provision. 

The House recedes with an amendment clarifying that the authority is limited to developing countries that are participating in 

PfP but are not members of NATO. 

Limitation on funding for Joint Data Exchange Center in Moscow 

(sec. 1203) 

The House bill contained a provision (sec. 1205) that would 

prohibit obligation or expenditure of more than 50 percent of the 

funds authorized for fiscal year 2003 for activities associated with 

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the Joint Data Exchange Center (JDEC) in Moscow, Russia, until: 

(1) the United States and the Russian Federation enter into a costsharing agreement as required by section 1231 of the Floyd D. 

Spence National Defense Authorization Act for Fiscal Year 2001 

(Public Law 106–398); (2) the United States and the Russian Federation enter into an agreement exempting the United States from 

Russian taxes and liability laws for activities associated with the 

JDEC; and (3) 30 days have elapsed after the Secretary of Defense 

submits to the Committees on Armed Services of the Senate and 

the House or Representatives, the Committee on Foreign Relations 

of the Senate, and the Committee on International Relations of the 

House of Representatives, a copy of each required agreement. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

The conferees continue to support activities to improve transparency and build confidence and cooperation between the United 

States and the Russian Federation and believe the JDEC will make 

an important contribution to these efforts. The conferees urge the 

Secretary of Defense to work diligently to obtain agreement or 

agreements with the Russian Federation that meet the requirements of section 1231. 

Support of United Nations-sponsored efforts to inspect and monitor 

Iraqi weapons activities (sec. 1204) 

The House bill contained a provision (sec. 1201) that would extend the authority under section 1505 of the Weapons of Mass Destruction Control Act of 1992, section 5859a of title 22, United 

States Code, for the Department of Defense to expend up to $15.0 

million in fiscal year 2003 in support of United Nations-sponsored 

inspection and monitoring efforts to ensure Iraqi compliance with 

its international obligations to destroy its weapons of mass destruction programs and associated delivery systems. 

The Senate amendment contained an identical provision (sec. 

1213). 

The conference agreement includes this provision. 

Comprehensive annual report to Congress on coordination and integration of all United States non-proliferation activities (sec. 

1205) 

The Senate amendment contained a provision (sec. 3162) that 

would amend section 1205 of the National Defense Authorization 

Act for Fiscal Year 2002 (Public Law 107–107), which directed the 

President to submit a report on a plan to secure nuclear weapons, 

material, and expertise in the states of the Former Soviet Union, 

to require an annual update on the status of implementing the 

plan. 

The House bill contained no similar provision. 

The House recedes. 

Report requirement regarding Russian proliferation to Iran and 

other countries of proliferation concern (sec. 1206) 

The House bill contained a provision (sec. 1306) that would express the sense of Congress about the seriousness of Russian proliferation assistance to the weapons of mass destruction programs 

704

of Iran and other countries. The provision would also require an 

annual report beginning in 2003 and continuing through 2009, describing in detail such assistance and its consequences and the efforts of the United States to defend against and end such proliferation. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require an 

annual report beginning in 2003 and continuing through 2009, describing in detail Russian proliferation of weapons of mass destruction and ballistic missile goods, technology, expertise and information, and of related dual-use items, to Iran and other countries of 

proliferation concern during the preceding year. The report would 

describe the impact and consequences of such proliferation and the 

efforts of the United States to halt such proliferation. 

The conferees note that this provision is intended to apply to 

prohibited acts of proliferation assistance. 

Monitoring of implementation of 1979 agreement between the 

United States and China on cooperation in science and technology (sec. 1207) 

The Senate amendment included a provision (sec. 1216) that 

would require the Office of Science and Technology Cooperation of 

the Department of State to monitor the implementation of the 1979 

United States-China Agreement on Cooperation in Science and 

Technology (S&T) and its protocols. The amendment would require 

the Office of S&T Cooperation to submit a biennial report on the 

activities conducted under this agreement and the benefits of this 

agreement to the Chinese economy, military, and defense industrial 

base. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

the President to establish a working group to monitor the Agreement and directs the Director of Central Intelligence, the Secretary 

of Defense, and the Inspector General of the Commerce Department to conduct various assessments that would be components of 

the biennial report. The conferees continue to support the numerous mutually beneficial exchanges that occur under the auspices of 

the Agreement. 

Extension of certain counterproliferation activities and programs 

(sec. 1208) 

The Senate amendment contained a provision (sec. 1033) that 

would extend the date of submission of the annual report on 

counterproliferation activities and programs from February 1 to 

May 1 of each year. 

The House bill contained no similar provision. 

The House recedes with an amendment that would extend the 

service of the interagency Counterproliferation Program Review 

Committee through September 2008. It would also require that the 

annual report include a discussion of the limitations on and impediments to the biological weapons counterproliferation efforts of 

the Department of Defense and include recommendations for ways 

to make such efforts more effective. 

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Semiannual report by Director of Central Intelligence on contributions by foreign persons to efforts of countries of proliferation 

concern to obtain weapons of mass destruction and their delivery systems (sec. 1209) 

The Senate amendment contained a provision (sec. 1040) that 

would require biannual reports to Congress by the President on foreign persons that make a material contribution to the development 

of weapons of mass destruction or missiles by a country of proliferation concern. 

The House bill contained no similar provision.

The House recedes with an amendment that would conform 

and add the provision to Title VII of the Combating Weapons of 

Mass Destruction Act of 1996 (Public Law 104–293). The first report required under this provision would be due no later than January 1, 2004. 

Report on feasibility and advisability of senior officer exchanges between the Armed Forces of the United States and the military 

forces of Taiwan (sec. 1210) 

The House bill included a provision (sec. 1202) which directed 

the Secretary of Defense to prepare and implement a plan for conducting joint operational training for and exchanges of senior officers between the Armed Forces of the United States and the Armed 

Forces of Taiwan. The Secretary would submit this plan to Congress at least 30 days before commencing with its implementation. 

The Senate amendment included no similar provision. 

The Senate recedes with an amendment requiring the President to submit to Congress a report on the feasibility and advisability of conducting combined operational training with, and exchanges of general and flag officers between, the Armed Forces of 

the United States and the military forces of Taiwan and a discussion of the progress being made on meeting U.S. commitments to 

the security of Taiwan. 

Report on United States force structure in the Pacific (sec. 1211) 

The conferees agree to include a provision which directs the 

Secretary of Defense to submit to Congress a report on the Department of Defense’s plans to maintain adequate force structure in the 

Pacific theater. The report would be submitted no later than 180 

days after the date of enactment of this Act. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Additional countries covered by loan guarantee program 

The House bill contained a provision (sec. 1204) that would 

amend section 2540(b) of title 10, United States Code, to authorize 

the Secretary of Defense, in consultation with the Secretary of 

State, to expand the list of countries eligible under the Defense Export Loan Guarantee Program. 

The Senate amendment contained no similar provision. 

The House recedes. 

706

Arctic and Western Pacific Environmental Cooperation Program 

The Senate amendment contained a provision (sec. 1214) that 

would authorize the Secretary of Defense to conduct a cooperative 

program with countries in the Arctic and Western Pacific regions. 

The Secretary, with the concurrence of the Secretary of State, 

would be authorized to provide cooperative assistance or provide 

assistance on environmental matters in the Arctic and Pacific regions with certain exceptions. The primary focus of the program 

would be technology projects and activities related to radiological 

threats and contamination. To reflect this focus, the provision 

would limit the availability of program funds to no more than 20 

percent of such funds on non-radiological matters. The provision 

would also require the Secretary to submit an annual report on the 

program that would include a discussion of the activities, the funding, the life-cycle costs of any projects, the participants, and any 

contributions from other agencies or countries. 

The House bill contained no similar provision. 

The Senate recedes. 

Department of Defense HIV/AIDS Prevention Assistance Program 

The Senate amendment contained a provision (sec. 1215) that 

would authorize the Secretary of Defense to expand the existing 

program of HIV/AIDS prevention education activities undertaken 

in connection with the conduct of U.S. military training, exercises, 

and humanitarian assistance in sub-Saharan Africa, to countries 

that are suffering a public health crisis relating to HIV/AIDS and 

that participate in the military-to-military contacts program of the 

Department of Defense. The activities would focus, to the extent 

possible, on military units that participate in peacekeeping operations and would include HIV/AIDS-related voluntary counseling 

and testing and HIV/AIDS-related surveillance. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees note that the Department of Defense has extensive authorities in title 10, United States Code, relating to militaryto-military contacts and comparable activities, humanitarian and 

civic assistance provided in conjunction with military operations, 

and other similar activities. The conferees take this action without 

prejudice and invite the Secretary of Defense to submit a legislative proposal for any additional authorities that he needs in this 

area. 

Limitation on number of military personnel in Colombia 

The House bill contained a provision (sec. 1206) that would 

prohibit the use of funds available to the Department of Defense 

to support or maintain more than 500 members of the Armed 

Forces on duty in the Republic of Colombia at any one time. Members in Colombia for no more than 30 days for the purpose of rescuing or retrieving U.S. military or civilian Government personnel, 

members assigned to the security assistance office or to the Marine 

Corps security contingent at the Embassy, members participating 

in relief efforts to respond to a natural disaster, nonoperational 

transient military personnel, and members making a ship port call, 

would all be excluded from the 500 member limitation. The SecVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00730 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
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retary of Defense would have the authority to waive the limitation 

if he determines that such waiver is in the national security interest. 

The Senate amendment contained no similar provision. 

The House recedes. 

Russian tactical nuclear weapons 

The Senate amendment contained a provision (sec. 1205) that 

would set forth findings with respect to the potential threats posed 

by unsecured Russian tactical nuclear weapons. The provision 

would also set forth the sense of the Senate that stolen Russian 

tactical nuclear weapons could be used against the United States, 

that it should be a priority of the United States to account for, secure, and reduce the number of Russian tactical nuclear weapons 

and materials, and that the threat warrants a special nonproliferation initiative. The provision would also require the President to 

submit a report to Congress 30 days after the date of enactment 

of this Act on efforts, including establishing a special initiative, to 

reduce the threats from Russian tactical nuclear weapons. 

The House bill contained no similar provision. 

The Senate recedes.

TITLE XIII—COOPERATIVE THREAT REDUCTION WITH STATES OF THE

FORMER SOVIET UNION

ITEMS OF SPECIAL INTEREST

Weapons of Mass Destruction Proliferation Prevention Program of 

the Cooperative Threat Reduction program with the States of 

the Former Soviet Union 

The Department of Defense (DOD) requested $40.0 million in 

the fiscal year 2003 budget request to initiate a new program within the Cooperative Threat Reduction (CTR) program called the 

Weapons of Mass Destruction Proliferation Prevention Program. 

The program would provide CTR assistance to enhance the capability of non-Russian Former Soviet Union (FSU) military, internal 

security forces, border guards, and customs forces to prevent, deter, 

detect and interdict unauthorized movement of weapons of mass 

destruction or related materials across borders and to respond effectively to terrorist incidents at borders. While the conferees support this new effort, the conferees are concerned that there may be 

potential for duplication of effort with other similar programs within DOD as well as with the Department of Energy’s National Nuclear Security Administration (NNSA) FSU activities. 

The conferees urge DOD to coordinate this new CTR program 

with all existing programs within DOD, the NNSA, the Department of State, the U.S. Customs Service, the Federal Bureau of Investigation, and the U.S. Coast Guard. The conferees expect DOD 

to coordinate with the NNSA in the area of weapons of mass destruction detection technology. The conferees direct DOD to report 

to the congressional defense committees, no later than December 

31, 2002, the results of this coordination. The conferees expect 

DOD to present a plan, coordinated with the Department of State, 

the Administrator of the NNSA, and the other federal agencies, 

708

that describes how this new program will complement and enhance, rather than duplicate, any similar ongoing effort in any 

other federal agency and the interagency process for coordinating 

these programs in the future. 

LEGISLATIVE PROVISIONS ADOPTED

Specification of Cooperative Threat Reduction programs and funds 

(sec. 1301) 

The House bill contained a provision (sec. 1301) that would define the programs and funds that are Cooperative Threat Reduction 

(CTR) programs and funds and specify that CTR funds shall remain available for obligation for three fiscal years. 

The Senate amendment contained an identical provision (sec. 

1201). 

The conferees agree to include the provision. 

Funding allocations (sec. 1302) 

The House bill contained a provision (sec. 1302) that would authorize $416.7 million for the Cooperative Threat Reduction (CTR) 

program and would allocate the funds among the various program 

activities. In addition, the provision would provide limited authority to vary the amounts allocated to individual program activities 

including a requirement that for certain CTR program activities, 

the amount obligated for those program activities may not exceed 

115 percent of the amount allocated. The provision would also 

allow $83.6 million of the funds authorized to be used either for activities related to strategic and nuclear systems or for destruction 

of chemical weapons in Russia and Ukraine. 

The Senate amendment contained a similar provision (sec. 

1202) that would authorize $416.7 million for the CTR program 

and allocate the funds among the various program activities. 

The Senate recedes with an amendment that would authorize 

$417.6 million for the CTR program, modify certain of the allocations among the CTR program activities, and increase the limitation on obligation to 125 percent of the amount authorized. 

Prohibition against use of funds until submission of reports (sec. 

1303) 

The House bill contained a provision (sec. 1303) that would 

prohibit obligation or expenditure of all fiscal year 2003 Cooperative Threat Reduction (CTR) funds until 30 days after two reports 

are submitted. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would prohibit 

expenditure or obligation of 50 percent of the fiscal year 2003 CTR 

funds until 30 days after the required reports have been submitted 

to Congress. 

Report on use of revenue generated by activities carried out under 

Cooperative Threat Reduction programs (sec. 1304)

The House bill contained two provisions (secs. 1304 and 1309) 

that would establish additional reporting requirements for the Cooperative Threat Reduction (CTR) program. Section 1304 would 

709

amend the annual CTR reporting requirement in section 1308(c) of 

the Floyd D. Spence National Defense Authorization Act for Fiscal 

Year 2001 (Public Law 106–398) to add a description of how revenue generated by activities carried out under the CTR program 

are utilized, monitored, and accounted for. Section 1309 would require the Secretary of Defense to submit a new stand-alone report 

describing in detail the operation and success of activities carried 

out by the defense and military contacts element of the CTR program. Section 1309 would also prohibit obligation or expenditure of 

more than 50 percent of the CTR funds allocated for defense and 

military contacts until such report is submitted to Congress. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would combine 

both reporting requirements into a single provision that would 

amend section 1308(c) to include both reports as elements of the 

annual CTR report. The amendment would delete the funding prohibition. The new reporting requirements would be included in the 

annual report for fiscal year 2003, that would be submitted in 

2004. 

Prohibition against use of funds for second wing of fissile materials 

storage facility (sec. 1305) 

The House bill contained a provision (sec. 1305) that would 

prohibit any funds appropriated for the Cooperative Threat Reduction program from being used for design, planning, or construction 

of a second wing for a storage facility for storing Russian fissile 

material. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Limited waiver of restrictions on use of funds for threat reduction 

in states of the former Soviet Union (sec. 1306) 

The Senate amendment contained a provision (sec. 1204) that 

would provide the President with permanent authority to waive the 

annual certifications required for both the Cooperative Threat Reduction (CTR) programs and the Freedom Support Act nonproliferation programs, as requested by the administration. The 

provision would amend section 1203 of the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) and section 502 of the Freedom Support Act (22 U.S.C. 5852) and provide the President the 

authority to waive the restrictions in any given fiscal year for any 

given country if such a waiver is important to the national security 

interests of the United States. 

If the President chooses to exercise the waiver for either the 

Cooperative Threat Reduction Act or Freedom Support Act preconditions, this waiver would be effective only when the President 

submits to Congress a report describing the activity or activities 

that prevent the President from making the certification or certifications required by the Act and the strategy, plan, or policy of the 

President to promote the relevant State’s future commitment to the 

preconditions. 

The House bill contained a similar provision (sec. 1308) but 

would allow the waiver authority only for the certification required 

by section 1203(d)(5) of the Cooperative Threat Reduction Act, 

710

which states Russia is committed to complying with all relevant 

arms control agreements. The waiver authority would be available 

until September 30, 2005. 

The House recedes with an amendment that would limit the 

authority to grant an annual waiver to three fiscal years. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Prohibition against use of Cooperative Threat Reduction funds outside the States of the former Soviet Union 

The House bill contained a provision (sec. 1307) that would 

prohibit the use of Cooperative Threat Reduction (CTR) funds for 

any fiscal year for any projects or activities outside the States of 

the Former Soviet Union (FSU). 

The Senate amendment contained a provision (sec. 1203) that 

would authorize the use of CTR funds for threat reduction activities outside the States of the FSU under certain circumstances and 

with certain restrictions. 

The conferees agree to drop both provisions. 

The conferees recognize that the President periodically determines that it is necessary for the United States Government to address an emergency proliferation threat from weapons of mass destruction (WMD) outside of the States of the FSU that would affect 

the national security interests of the United States. 

Therefore the conferees direct the Secretary of Defense to conduct a review of the authorities currently available to the United 

States Government to be able to respond to any emergency WMD 

proliferation threat. In this review the Secretary should identify 

any prohibition, impediment, or limitation imposed by any statute, 

order, regulation, or policy that would limit or prevent a Unites 

States Government response, including a response by the Secretary 

of Defense. In reviewing the authorities available to the Department of Defense (DOD) these should include situations when DOD 

response is in a support role to another federal agency or is the 

lead federal agency. The review should also include an explanation 

of the Department’s role in the interagency process. 

The Secretary is directed to submit a report to the congressional defense committees that would set forth the results of this 

review and invited to submit a legislative proposal to remedy shortcomings in his existing authority. This report shall be due no later 

than March 1, 2003.

TITLE XIV—HOMELAND SECURITY

LEGISLATIVE PROVISIONS ADOPTED

Transfer of technology items and equipment in support of homeland 

security (sec. 1401) 

The House bill contained a provision (sec. 142) that would authorize the Secretary of Defense to enter into an agreement with 

an independent, non-profit, technology-oriented entity to facilitate 

technology transfer of promising defense technologies to aid the 

homeland security efforts of federal, state and local ‘‘first responders’’. 

The Senate amendment contained no similar provision. 

711

The Senate recedes with an amendment that would require the 

Secretary of Defense to designate a senior official of the Department of Defense to coordinate the Department’s efforts to identify, 

evaluate, deploy, and transfer technology items to first responders 

in support of homeland security. The conference amendment would 

require the senior official to work with other appropriate federal 

agencies and to use competitive procedures to enter into an agreement with a highly qualified private sector entity to assist in these 

efforts. 

The conferees expect the Department to work with the new Department of Homeland Security, if such an agency is established, 

in any effort to transfer homeland security technologies to first responders. The conferees also anticipate that the Department of Defense will give appropriate consideration to standards developed by 

the Inter-Agency Board for Equipment Standardization and Interoperability when it works to identify and evaluate new homeland 

security technologies. 

Comprehensive plan for improving the preparedness of military installations for terrorist incidents (sec. 1402) 

The Senate amendment contained a provision (sec. 1045) that 

would direct the Secretary of Defense to develop a comprehensive 

plan to improve the preparedness of military installations for incidents involving weapons of mass destruction (WMD). The Secretary 

would submit the plan to the congressional defense committees no 

later than 180 days after this legislation comes into effect. No later 

than 60 days after the Secretary submits the plan to Congress, the 

Comptroller General would be required to review it and submit a 

report assessing the plan to the congressional defense committees. 

The Secretary would be directed to inform Congress of progress 

under and updates to the plan for a total of three years. 

The House bill contained no such provision. 

The House recedes with an amendment to change the provision 

so that the plan would address preparedness of military installations for terrorist incidents, not limited to those involving weapons 

of mass destruction. 

Additional Weapons of Mass Destruction Civil Support Teams (sec. 

1403) 

The House bill contained a provision (sec. 1551) that would direct the Secretary of Defense to establish at least one Weapons of 

Mass Destruction Civil Support Team (WMD CST) in each state 

and territory. The Secretary would be required to ensure that this 

provision is fully implemented by September 30, 2003. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment directing the Secretary to establish 23 additional teams, one for each state and territory, and requiring the Secretary to submit to Congress within six 

months of enactment of this Act a report including his plan for establishing these teams. The report would include a schedule and 

budget for manning, training, and equipping the new teams as rapidly as possible without jeopardizing the attainment of full effectiveness by the teams. The report would also include a discussion 

712

of whether the mission of the teams should be expanded, and if so, 

how. 

Report on the role of the Department of Defense in supporting homeland security (sec. 1404) 

The House bill contained a provision (sec. 1017) requiring the 

Secretary of Defense to submit to the congressional defense committees a report on Department of Defense (DOD) responsibilities, 

missions, and plans for military support of homeland security. 

The Senate amendment contained a provision (sec. 1044) requiring the Secretary to submit a detailed report on how DOD 

should be fulfilling and is fulfilling its homeland defense mission. 

The Senate recedes with an amendment that would combine 

the report requirements outlined in these provisions. 

Sense of Congress on Department of Defense assistance to local first 

responders (sec. 1405) 

The House bill contained a provision (sec. 1553) that would express the sense of Congress that the Secretary of Defense should, 

to the extent that the Secretary determines appropriate, use funds 

provided in the Act to assist, train, and equip local fire and police 

departments that would act as first responders to domestic terrorist incidents that may come about in connection with the continued fight to prosecute the war on terrorism. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment stating that, to the extent the Secretary considers appropriate and feasible and in accordance with the law, the Secretary should provide assistance to entities that are local first responders for domestic terrorist incidents 

and assist those entities in improving their capabilities to respond 

to such incidents. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Additional weapons of mass destruction civil support teams 

The House bill contained a provision (sec. 1026) that would express the sense of Congress that the Secretary of Defense should 

establish at least one Weapons of Mass Destruction Civil Support 

Team (WMD CST) in each state and territory. 

The Senate amendment contained no similar provision. 

The House recedes.

TITLE XV—AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON

TERRORISM

LEGISLATIVE PROVISIONS ADOPTED

Authorization of appropriations for continued operations for the war 

on terrorism (secs. 1501–1508) 

Title XV of the House bill contained a series of provisions that 

would authorize $10.0 billion to continue the war on terrorism. The 

House bill would provide $3.5 billion for a war on terrorism operations fund, $1.0 billion for an equipment replacement and enhancement fund, $200.0 million for additional munitions purchases, 

and $2.0 billion for classified programs. The House bill would also 

713

authorize, within the $10.0 billion total, approximately $3.1 billion 

for programs for which funds were requested elsewhere in the fiscal year 2003 budget request, including the Defense Emergency Response Fund. The House bill would also provide additional funding 

for enhanced military personnel benefits that were contained in 

that title. 

Section 1003 of the Senate amendment would authorize the appropriation of $10.0 billion for continuing the war on terrorism, as 

requested in the President’s budget, contingent on the submission 

of a subsequent request by the President that identified a proposed 

allocation and plan for the use of these funds. 

On July 3, 2002, the President submitted a budget amendment 

that proposed to allocate $2.5 billion of the $10.0 billion requested 

to military personnel and mobilization costs, $5.3 billion to the cost 

of military operations, $2.0 billion for classified programs, and 

$200.0 million for additional munitions. 

The Senate recedes with an amendment that would authorize 

$10.0 billion for the conduct of Operation Noble Eagle and Operation Enduring Freedom to continue the war on terrorism in accordance with the conditions stated in the Authorization for Use of 

Military Force (Public Law 107–40). The conferees agree to authorize $10.0 billion that would be available for transfer to the normal 

budget accounts of the Department of Defense for the following 

purposes: $2.5 billion for mobilization and other military personnel 

costs; $4.3 billion for the operating costs of military operations; 

$1.0 billion for equipment replacement and enhancement of military capabilities; $2.0 billion for classified programs; and $200.0 

million for additional munitions. Funding would be available for 

the specific munitions programs identified in the July 3, 2002, 

budget amendment as follows:

[Dollars in millions] 

Army ................................................................................................................. $94.0

Procurement of Ammunition, Army: 

5.56 mm—all types (training) .......................................................... 15.0

.50-caliber—all types (training) ....................................................... 5.0

105 mm HE recapitalization ............................................................ 5.0

155 mm M795 .................................................................................... 20.0

MACS ................................................................................................. 20.0

Fuze M762 ......................................................................................... 5.0

105 mm illumination round .............................................................. 5.0

120 mm mortar high explosive multi-option fuze ........................... 10.0

25mm M919 for Bradley ................................................................... 9.0

Navy .................................................................................................................. 60.0

Weapons Procurement, Navy: 

AGM 114M Hellfire missiles ............................................................ 35.0

Procurement of Ammunition, Navy and Marine Corps: 

General purpose bomb components ................................................. 25.0

Air Force ........................................................................................................... 40.0

Procurement of Ammunition, Air Force: 

General purpose bomb components ................................................. 40.0

Special Operations Command ......................................................................... 6.0

Procurement, Defnese-wide: 

Special Operations Forces Munitions .............................................. 6.0

Total ............................................................................................ 200.0

The conferees agree to require prior notification to the congressional defense committees before funds are transferred to the normal budget accounts for obligation. 

714

The conferees further agree to allow the Secretary of Defense 

to transfer up to $1.0 billion of the amount authorized in section 

1501 to authorizations that were reduced in Titles I, II, and III to 

reflect savings to be achieved through the improved management 

of the Department’s contracts for services and the deferral of expenditures on financial management systems, if the Secretary determines that such savings are not achievable. This provision 

would give the Secretary discretion to either: (1) achieve $1.0 billion of savings through management efficiencies as provided in Titles I, II and III; or (2) transfer up to $1.0 billion out of the contingency fund in lieu of achieving such savings. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Air Force procurement 

The House bill contained a provision (sec. 1523) that would authorize $383.2 million for specific Air Force procurement programs 

in support of the war against terrorism. 

The Senate amendment contained no similar provision, but the 

Senate amendment would authorize funding for these and other 

procurement activities in Title I. 

The House recedes. 

The conferees agree to authorize funding for these activities in 

Title I of this Act. 

Army procurement 

The House bill contained a provision (sec. 1521) that would authorize $104.7 million for the Army for ammunition and other procurement. 

The Senate amendment contained no similar provision, but the 

Senate amendment would authorize funding for these and other 

Army procurement activities in Title I. 

The House recedes. 

The conferees agree to authorize funding for these activities in 

Title I of this Act. 

Authority for joint task forces to provide support to law enforcement 

agencies conducting counter-terrorism activities 

The House bill contained a provision (sec. 1552) that would authorize a joint task force of the Department of Defense that provides support to law enforcement agencies conducting counterdrug 

activities to also provide, consistent with all applicable laws and 

regulations, support to law enforcement agencies conducting 

counterterrorism activities. 

The Senate amendment contained no similar provision. 

The House recedes. 

Authorized military construction and land acquisition projects 

The House bill contained a provision (sec. 1531) that would au- thorize $35.1 million for the construction of facilities in Qatar; 

Naval Station Guantanamo Bay, Cuba; Naval Station Rota, Spain; 

and Bolling Air Force Base, District of Columbia. 

The Senate amendment contained no similar provision, but Division B of the Senate amendment contained funding for these 

715

projects in the military construction accounts of the military departments. 

The House recedes. 

The conferees include funding for these projects in the military 

construction authorizations in Division B of this Act. 

Defense-Wide Activities procurement 

The House bill contained a provision (sec. 1524) that would authorize $620.4 million for Defense-wide procurement. 

The Senate amendment contained no similar provision, but the 

Senate amendment would authorize funding for these and other 

Defense-wide procurement activities in Title I. 

The House recedes. 

The conferees agree to authorize funding for these activities in 

Title I of this Act. 

Effective date 

The House bill contained a provision (sec. 1547) that would establish effective dates for the wartime pay and allowance increases 

proposed in this Title. 

The Senate amendment contained no similar provision. 

The House recedes. 

Increase in amount of death gratuity 

The House bill contained a provision (sec. 1546) that would increase the death gratuity from $6,000 to $12,000. 

The Senate amendment contained no similar provision. 

The House recedes. 

Increase in rate for career enlisted flyer incentive pay 

The House bill contained a provision (sec. 1545) that would increase the rate for career enlisted flyer incentive pay by $50 per 

month for each category of recipient based on years of service completed. 

The Senate amendment contained no similar provision. 

The House recedes. 

Increase in rate for diving duty special pay 

The House bill contained a provision (sec. 1543) that would increase the rate for diving duty special pay for officers from $240 

per month to $290 per month and for enlisted members from $340 

per month to $390 per month. 

The Senate amendment contained no similar provision. 

The House recedes. 

Increase in rate for family separation allowance 

The House bill contained a provision (sec. 1541) that would increase the rate for family separation allowance from $100 per 

month to $125 per month. 

The Senate amendment contained no similar provision. 

The House recedes. 

716

Increase in rate for imminent danger pay 

The House bill contained a provision (sec. 1544) that would increase the rate for imminent danger pay from $150 to $250 per 

month. 

The Senate amendment contained no similar provision. 

The House recedes. 

Increase in rates for various hazardous duty incentive pays 

The House bill contained a provision (sec. 1542) that would increase the rates for various hazardous duty incentive pays by $50 

per month. 

The Senate amendment contained no similar provision. 

The House recedes. 

Military personnel 

The House bill contained a provision (sec. 1529) that would authorize $503.1 million for military personnel for the conduct of operations in continuation of the war on terrorism. 

The Senate amendment contained no similar provision. 

The House recedes. 

Navy and Marine Corps procurement 

The House bill contained a provision (sec. 1522) that would authorize $884.8 million for specific Navy and Marine Corps procurement programs in support of the war against terrorism. 

The Senate amendment contained no similar provision, but the 

Senate amendment would authorize funding for these and other 

procurement activities in Title I. 

The House recedes. 

The conferees agree to authorize funding for these activities in 

Title I of this Act. 

Operation and Maintenance 

The House bill contained a provision (sec. 1528) that would authorize $548.2 million for operation and maintenance for the Army, 

Navy, Marine Corps, and Air Force. 

The Senate amendment contained no similar provision, but the 

Senate amendment would authorize funding for these and other 

Defense-wide operation and maintenance activities in Title III. 

The House recedes. 

The conferees agree to authorize funding for these activities in 

Title III of this Act. 

Research, Development, Test and Evaluation, Defense-wide 

The House bill contained a provision (sec. 1525) that would authorize $390.1 million for Research, Development, Test and Evaluation, Defense-wide for chemical and biological defense activities. 

The Senate amendment contained no similar provision, but the 

Senate amendment would authorize funding for these and other research and development activities in Title II. 

The House recedes. 

The conferees agree to authorize funding for these activities in 

Title II of this Act.

717

DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS 

Overview 

The budget for fiscal year 2003 requested authorization of ap- propriations of $8,934.0 million for the military construction and 

family housing construction and operation accounts of the Department of Defense. An additional $594.4 million was requested for 

military construction projects in the Defense Emergency Response 

Fund (DERF). The Army later identified an additional $122.6 million in military construction projects in the DERF that had been 

originally categorized as operation and maintenance funding. The House bill would authorize $9,988.6 million for military 

construction and family housing. The Senate amendment would authorize $10,178.9 million for 

these accounts. 

The conferees recommend authorization of appropriations of $10,423.6 million for the military construction and family housing 

accounts of the Department of Defense for fiscal year 2003. The 

summary table that follows also reflects prior year savings of $33.7 

million to be derived from anticipated rescissions. Including the 

budget authority impact of $53.0 million for a previously authorized project and the anticipated rescissions of prior year funding, 

the conference agreement is consistent with a budget authority 

level of $10,442.9 million for military construction and family housing. 

Projects that have been transferred into these accounts from 

the DERF are displayed as changes to the original military construction request in the tables that follow. Excluding these transfers, the conferees agree to a net increase of $772.6 million in military construction and family housing funding. 

The House bill, the Senate amendment, and the conference 

agreement reduced the military construction and family housing 

accounts by $39.9 million to reflect the proper accounting for the 

accrual of civilian personnel benefits under current law, and by 

$44.6 million to reflect foreign currency fluctuations. In addition, 

the conferees agree to reductions of $54.5 million in the military 

construction accounts to be achieved through a 0.9 percent reduction in the rates charged for supervision, inspection, and overhead 

on construction projects, and $57.0 million to reflect lower inflation 

rates. These reductions shall not cancel any military construction 

project authorized by this Act. 

The following tables list the amounts authorized to be appropriated for the military construction and family housing accounts 

and for each military construction and family housing project.

718


Insert graphic folio 1153 HR772.240
719


Insert graphic folio 1154 HR772.241
720


Insert graphic folio 1155 HR772.242
721


Insert graphic folio 1156 HR772.243
722


Insert graphic folio 1157 HR772.244
723


Insert graphic folio 1158 HR772.245
724


Insert graphic folio 1159 HR772.246
725


Insert graphic folio 1160 HR772.247
726


Insert graphic folio 1161 HR772.248
727


Insert graphic folio 1162 HR772.249
728


Insert graphic folio 1163 HR772.250
729


Insert graphic folio 1164 HR772.251
730


Insert graphic folio 1165 HR772.252
731


Insert graphic folio 1166 HR772.253
732


Insert graphic folio 1167 HR772.254
733


Insert graphic folio 1168 HR772.255
734


Insert graphic folio 1169 HR772.256
735


Insert graphic folio 1170 HR772.257
736


Insert graphic folio 1171 HR772.258
737


Insert graphic folio 1172 HR772.259
738


Insert graphic folio 1173 HR772.260
739


Insert graphic folio 1174 HR772.261
740

Short title (sec. 2001) 

The House bill contained a provision (sec. 2001) that would cite 

Division B of this Act as the Military Construction Authorization 

Act for Fiscal Year 2003. 

The Senate amendment contained an identical provision (sec. 

2001). 

The conference agreement includes this provision. 

TITLE XXI—ARMY

Overview 

The House bill would authorize $2,930.7 million for Army military construction and family housing programs for fiscal year 2003. 

The Senate amendment would authorize $3,010.3 million for 

this purpose. 

The conferees recommend authorization of appropriations of 

$3,021.5 million for Army military construction and family housing 

for fiscal year 2003. 

ITEMS OF SPECIAL INTEREST

Fort Bliss, Texas 

Within the Army’s military construction account, the conferees 

agree to authorize $5.2 million to upgrade the water system at Fort 

Bliss, Texas. Funds for this project are to be used in conjunction 

with the $5.0 million authorized for water system upgrades at that 

installation in the National Defense Authorization Act for Fiscal 

Year 2002 (Public Law 107–107). 

Fort Dix, New Jersey 

The conferees recommend that, within authorized amounts for 

unspecified minor construction, the Secretary of the Army use $1.5 

million for road construction in the vicinity of Fort Dix, New Jersey, to compensate for road closures due to force protection. 

LEGISLATIVE PROVISIONS ADOPTED

Authorized Army construction and land acquisition projects (sec. 

2101) 

The House bill contained a provision (sec. 2101) that would authorize Army military construction projects for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2101). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

report provides the binding list of specific projects authorized at 

each location. 

Family housing (sec. 2102) 

The House bill included a provision (sec. 2102) that would authorize new construction and planning and design of family housing units for the Army for fiscal year 2003. 

741

The Senate amendment contained a similar provision (sec. 

2102). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

report provides the binding list of specific projects authorized at 

each location. 

Improvements to military family housing units (sec. 2103) 

The House bill contained a provision (sec. 2103) that would authorize improvements to existing units of Army family housing for 

fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2103). 

The conference agreement includes this provision. 

Authorization of appropriations, Army (sec. 2104) 

The House bill contained a provision (sec. 2104) that would authorize specific appropriations for each line item contained in the 

Army’s military construction budget for fiscal year 2003. This section would also provide an overall limit on the amount the Army 

is authorized to spend on military construction projects. 

The Senate amendment contained a similar provision (sec. 

2104). 

The conference agreement includes this provision. 

Modification of authority to carry out certain fiscal year 2002 

projects (sec. 2105) 

The House bill contained a provision (sec. 2105) that would 

amend the table in section 2101 of the Military Construction Authorization Act for Fiscal Year 2002 (division B of Public Law 107–

107) to increase the total project authorization ceilings for military 

construction projects at Fort Carson, Colorado, and Fort Jackson, 

South Carolina. 

The Senate amendment contained an identical provision (sec. 

2105). 

The conference agreement includes this provision. 

Modification of authority to carry out certain fiscal year 2001 

project (sec. 2106) 

The Senate amendment contained a provision (sec. 2109) that 

would amend section 2101 of the Military Construction Authorization Act for Fiscal Year 2001 (division B of Public Law 106–398) 

to change the location for which funds were authorized for a barracks complex from Camp Page, Korea, to Camp Stanley, Korea. 

The House bill contained no similar provision. 

The House recedes. 

742

LEGISLATIVE PROVISIONS NOT ADOPTED

Planning and design for anechoic chamber at White Sands Missile 

Range, New Mexico 

The Senate amendment contained a provision (sec. 2110) that 

would authorize $3.0 million for planning and design for an anechoic chamber at White Sands Missile Range, New Mexico. 

The House bill contained no similar provision. 

The Senate recedes. 

The state list contained in this report describes the conference 

agreement on funding for this project.

TITLE XXII—NAVY

Overview 

The House bill would authorize $2,514.0 million for Navy military construction and family housing programs for fiscal year 2003. 

The Senate amendment would authorize $2,476.2 million for 

this purpose. 

The conferees recommend authorization of appropriations of 

$2,532.9 million for Navy military construction and family housing 

for fiscal year 2003. 

LEGISLATIVE PROVISIONS ADOPTED

Authorized Navy construction and land acquisition projects (sec. 

2201) 

The House bill contained a provision (sec. 2201) that would authorize Navy military construction projects for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2201). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

report provides the binding list of specific projects authorized at 

each location. 

Family housing (sec. 2202) 

The House bill included a provision (sec. 2202) that would authorize new construction and planning and design of family housing units for the Navy for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2202). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

report provides the binding list of specific projects authorized at 

each location. 

Improvements to military family housing units (sec. 2203) 

The House bill contained a provision (sec. 2203) that would authorize improvements to existing units of Navy family housing for 

fiscal year 2003. 

743

The Senate amendment contained a similar provision (sec. 

2203). 

The conference agreement includes this provision. 

Authorization of appropriations, Navy (sec. 2204) 

The House bill contained a provision (sec. 2204) that would authorize specific appropriations for each line item contained in the 

Navy’s military construction budget for fiscal year 2003. This section would also provide an overall limit on the amount the Navy 

is authorized to spend on military construction projects. 

The Senate amendment contained a similar provision (sec. 

2204). 

The conference agreement includes this provision. 

Modification of authority to carry out certain fiscal year 2002 

projects (sec. 2205) 

The House bill contained a provision (sec. 2205) that would 

amend the table in section 2201 of the Military Construction Authorization Act for Fiscal Year 2002 (division B of Public Law 107–

107) to provide for an increase in the amounts authorized for military construction at Naval Station Norfolk, Virginia. 

The Senate amendment contained a similar provision (sec. 

2205) that would amend the Military Construction Authorization 

Act for Fiscal Year 2002 (division B of Public Law 107–107) to increase the total project authorization for the projects at Naval Station, Norfolk, Virginia by $280,000. The provision would also correct the number of housing units authorized for a project at 

Quantico, Virginia from 60 units to 39 units. 

The House recedes.

TITLE XXIII—AIR FORCE

Overview 

The House bill would authorize $2,488.3 million for Air Force 

military construction and family housing programs for fiscal year 

2003. 

The Senate amendment would authorize $2,607.6 million for 

this purpose. 

The conferees recommend authorization of appropriations of 

$2,583.4 million for Air Force military construction and family 

housing for fiscal year 2003. 

LEGISLATIVE PROVISIONS ADOPTED

Authorized Air Force construction and land acquisition projects 

(sec. 2301) 

The House bill contained a provision (sec. 2301) that would authorize Air Force military construction projects for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2301). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

744

report provides the binding list of specific projects authorized at 

each location. 

Family housing (sec. 2302) 

The House bill included a provision (sec. 2302) that would authorize new construction and planning and design of family housing units for the Air Force for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2302). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

report provides the binding list of specific projects authorized at 

each location. 

Improvements to military family housing units (sec. 2303) 

The House bill contained a provision (sec. 2303) that would authorize improvements to existing units of Air Force family housing 

for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2303). 

The conference agreement includes this provision. 

Authorization of appropriations, Air Force (sec. 2304) 

The House bill contained a provision (sec. 2304) that would authorize specific appropriations for each line item contained in the 

Air Force’s military construction budget for fiscal year 2003. This 

section would also provide an overall limit on the amount the Air 

Force is authorized to spend on military construction projects. 

The Senate amendment contained a similar provision (sec. 

2304). 

The conference agreement includes this provision. 

Authority for use of military construction funds for construction of 

public road near Aviano Air Base, Italy, to replace road closed 

for force protection purposes (sec. 2305) 

The Senate amendment contained a provision (sec. 2305) that 

would authorize the Secretary of the Air Force to provide to Italian 

authorities funds authorized for appropriation by section 2304 of 

this Act for the construction of a public road, plus associated improvements, to replace a public road adjacent to Aviano Air Base, 

Italy, that was closed for force protection purposes. 

The House bill contained no similar provision. 

The House recedes. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Additional project authorization for air traffic control facility at 

Dover Air Force Base, Delaware 

The Senate amendment contained a provision (sec. 2306) that 

would authorize the Secretary of the Air Force to carry out the construction of a new air traffic control facility at Dover Air Force 

Base, Delaware, in the amount of $7.5 million. 

The House bill contained no similar provision. 

745

The Senate recedes. 

The state list contained in this report describes the conference 

agreement on funding for this project. 

Availability of funds for consolidation of materials computational 

research facility at Wright-Patterson Air Force Base, Ohio 

The Senate amendment contained a provision (sec. 2307) that 

would authorize $15.2 million for Air Force military construction to 

construct a project for the consolidation of the materials computational research facility at Wright-Patterson Air Force Base, Ohio. 

The House bill contained no similar provision. 

The Senate recedes. 

The state list contained in this report describes the conference 

agreement on funding for this project.

TITLE XXIV—DEFENSE AGENCIES

Overview 

The House bill would authorize $829.8 million for Defense 

Agencies military construction and family housing programs for fiscal year 2003. The bill would also authorize $545.1 million for base 

closure activities. 

The Senate amendment would authorize $771.8 million for Defense Agencies military construction and family housing programs 

and $545.1 million for base closure activities. 

The conferees recommend authorization of appropriations of 

$856.2 million for Defense Agencies military construction and family housing for fiscal year 2003. The conferees also recommend authorization of appropriations of $561.1 million for base closure activities, which includes an increase of $20.0 million for environmental restoration at closed facilities. 

LEGISLATIVE PROVISIONS ADOPTED

Authorized Defense Agencies construction and land acquisition 

projects (sec. 2401) 

The House bill contained a provision (sec. 2401) that would authorize Defense Agencies military construction projects for fiscal 

year 2003. 

The Senate amendment contained a similar provision (sec. 

2401). 

The conference agreement includes this provision. 

The amounts authorized in the bill are listed on an installation-by-installation basis. The state list of projects contained in this 

report provides the binding list of specific projects authorized at 

each location. 

Improvements to military family housing units (sec. 2402) 

The House bill contained a provision (sec. 2402) that would authorize improvements to existing units of Defense Agencies family 

housing for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2402). 

The conference agreement includes this provision. 

746

Energy conservation projects (sec. 2403) 

The House bill contained a provision (sec. 2403) that would authorize the Secretary of Defense to carry out energy conservation 

projects. 

The Senate amendment contained a similar provision (sec. 

2403). 

The conference agreement includes this provision. 

Authorization of appropriations, Defense Agencies (sec. 2404) 

The House bill contained a provision (sec. 2404) that would authorize specific appropriations for each line item contained in the 

Defense Agencies’ military construction budgets for fiscal year 

2003. This section would also provide an overall limit on the 

amount the Defense Agencies are authorized to spend on military 

construction projects. 

The Senate amendment contained a similar provision (sec. 

2404). 

The conference agreement includes this provision. 

Modification of authority to carry out certain fiscal year 2000 

project (sec. 2405) 

The House bill contained a provision (sec. 2405) that would 

modify the table in section 2401 of the Military Construction Authorization Act for Fiscal Year 2000 (division B of Public Law 106–

65) to provide for an increase in the amounts authorized for military construction at Blue Grass Army Depot, Kentucky. 

The Senate amendment contained an identical provision (sec. 

2106). 

The conference agreement includes this provision. 

Modification of authority to carry out certain fiscal year 1999 

project (sec. 2406) 

The House bill contained a provision (sec. 2406) that would 

amend the table in section 2401 of the Military Construction Authorization Act for Fiscal Year 1999 (division B of Public Law 105–

261) to provide for an increase in the amounts authorized for military construction at Newport Army Depot, Indiana. 

The Senate amendment contained a similar provision (sec. 

2107). 

The Senate recedes. 

Modification of authority to carry out certain fiscal year 1997 

project (sec. 2407) 

The House bill contained a provision (sec. 2407) that would 

amend the table in section 2401 of the Military Construction Authorization Act for Fiscal Year 1997 (division B of Public Law 104–

201) to provide for an increase in the amounts authorized for military construction at Pueblo Chemical Activity, Colorado. 

The Senate amendment contained an identical provision (sec. 

2108). 

The conference agreement includes this provision.

747

TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION SECURITY

INVESTMENT PROGRAM

Authorized NATO construction and land acquisition projects (sec. 

2501) 

The House bill contained a provision (sec. 2501) that would authorize the Secretary of Defense to make contributions to the North 

Atlantic Treaty Organization security investment program in an 

amount equal to the sum of the amount specifically authorized in 

section 2502 of this bill and the amount of recoupment due to the 

United States for construction previously financed by the United 

States. 

The Senate amendment contained an identical provision (sec. 

2501). 

The conference agreement includes this provision. 

Authorization of appropriations, NATO (sec. 2502) 

The House bill contained a provision (sec. 2502) that would authorize appropriations of $168.2 million as the U.S. contribution to 

the North Atlantic Treaty Organization (NATO) security investment program. 

The Senate amendment contained an identical provision (sec. 

2502). 

The conference agreement includes this provision. 

TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES

Overview 

The House bill would authorize $512.4 million for military construction and land acquisition for fiscal year 2003 for the Guard 

and Reserve components. 

The Senate amendment would authorize $599.6 million for this 

purpose. 

The conferees recommend authorization of appropriations of 

$701.3 million for military construction and land acquisition for fiscal year 2003. This authorization would be distributed as follows:

[Dollars in millions] 

Army National Guard ..................................................................................... $ 236,236

Air National Guard ......................................................................................... 204,215

Army Reserve ................................................................................................... 99,399

Naval and Marine Corps Reserve .................................................................. 75,801

Air Force Reserve ............................................................................................ 85,649

Total ..................................................................................................701,300

ITEMS OF SPECIAL INTEREST

Planning and design, Army National Guard 

The conferees recommend that, within authorized amounts for 

planning and design, the Secretary of the Army make $1.4 million 

available to complete planning and design activities for a multipurpose training range at Fort Indiantown Gap, Pennsylvania. 

748

LEGISLATIVE PROVISIONS ADOPTED

Authorized Guard and Reserve construction and land acquisition 

projects (sec. 2601) 

The House bill contained a provision (sec. 2601) that would authorize appropriations for military construction for the Guard and 

Reserve by service component for fiscal year 2003. 

The Senate amendment contained a similar provision (sec. 

2601). 

The conference agreement includes this provision. The state 

list of projects contained in this report provides the binding list of 

specific projects authorized at each location.

LEGISLATIVE PROVISIONS NOT ADOPTED

Army National Guard Reserve Center, Lane County, Oregon 

The Senate amendment contained a provision (sec. 2602) that 

would authorize a $9.0 million increase in the Army National 

Guard military construction program for the construction of an additional phase of the Reserve Center in Lane County, Oregon. 

The House bill contained no similar provision. 

The Senate recedes. 

The state list contained in this report describes the conference 

agreement on funding for this project. 

Additional project authorization for composite support facility for Illinois Air National Guard 

The Senate amendment contained a provision (sec. 2603) that 

would authorize a $10.0 million increase in the Air National Guard 

military construction program for the construction of the Composite 

Support Facility for the 183rd Fighter Wing of the Illinois Air National Guard. 

The House bill contained no similar provision. 

The Senate recedes. 

The state list contained in this report describes the conference 

agreement on funding for this project. 

TITLE XXVII—EXPIRATION AND EXTENSION OF AUTHORIZATIONS

LEGISLATIVE PROVISIONS ADOPTED

Expiration of authorizations and amounts required to be specified 

by law (sec. 2701) 

The House bill contained a provision (sec. 2701) that would 

provide that authorizations for military construction projects, repair of real property, land acquisition, family housing projects and 

facilities, contributions to the North Atlantic Treaty Organization 

infrastructure program, and guard and reserve projects will expire 

on October 1, 2005, or the date of enactment of an act authorizing 

funds for military construction for fiscal year 2006, whichever is 

later. This expiration would not apply to authorizations for which 

appropriated funds have been obligated before October 1, 2005, or 

the date of enactment of an act authorizing funds for these 

projects, whichever is later. 

749

The Senate amendment contained an identical provision (sec. 

2701). 

The conference agreement includes this provision. 

Extension of authorizations of certain fiscal year 2000 projects (sec. 

2702) 

The House bill contained a provision (sec. 2702) that would 

provide for the extension of certain fiscal year 1999 military construction project authorizations until October 1, 2003, or the date 

of the enactment of the act authorizing funds for military construction for fiscal year 2004, whichever is later. 

The Senate amendment contained a similar provision (sec. 

2702). 

The House recedes. 

Extension of authorizations of certain fiscal year 1999 projects (sec. 

2703) 

The House bill contained a provision (sec. 2703) that would 

provide for the extension of certain fiscal year 1999 military construction project authorizations until October 1, 2003, or the date 

of the enactment of the act authorizing funds for military construction for fiscal year 2004, whichever is later. 

The Senate amendment contained an identical provision (sec. 

2703). 

The conference agreement includes this provision. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Effective date 

The House bill contained a provision (sec. 2704) that would 

provide that Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this 

bill shall take effect on October 1, 2002, or the date of the enactment of this Act, whichever is later. 

The Senate amendment contained a similar provision (sec. 

2704). 

Because the conference report was not adopted prior to October 

1, 2002, this provision is no longer required and was not included 

in the conference agreement.

TITLE XXVIII—GENERAL PROVISIONS

ITEMS OF SPECIAL INTEREST

Blount Island, Jacksonville, Florida 

The conferees understand that the Secretary of the Navy and 

business and government entities in Jacksonville, Florida, have 

been unable to resolve what commercial activities may continue on 

Blount Island, Jacksonville, Florida, upon completion of several 

pending land acquisitions by the Secretary. The conferees believe 

that in the course of negotiating easements with these entities, the 

Secretary of the Navy should consider that a waiver of regulations 

pertaining to activities within the explosive safety quantity distance arc has been in effect for over fifteen years and that ammunition transshipment operations occur only 12 weekends annually. 

The conferees believe that both the Marine Corps and commercial 

750

activities can safely coexist on Blount Island and encourage both 

sides to continue to negotiate in good faith. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—Military Construction Program and Military Family 

Housing Changes 

Leasing of military family housing in Korea (sec. 2801) 

The House bill contained a provision (sec. 2803) that would 

amend section 2828 of title 10, United States Code, to authorize 

the Secretary of the Army to lease up to 2,400 units of family housing in Korea for a maximum lease amount of $35,000 per year. 

This provision would also increase from 800 to 1,175 the number 

of units of family housing in Korea that may be leased for no more 

than $25,000 per year. 

The Senate amendment contained a similar provision (sec. 

2801). 

The House recedes. 

Modification of alternative authority for acquisition and improvement of military housing (sec. 2802) 

The House bill contained a provision (sec. 2801) that would 

amend several provisions of title 10, United States Code, to provide 

the secretaries of the military departments with additional flexibility in the management of family and unaccompanied housing 

under alternate authorities. The provision would amend section 

2872a of title 10, United States Code, to add police and fire protection services to the services that may be provided by a service secretary under the housing privatization authorities; would amend 

section 2874 of title 10, United States Code, to permit service secretaries to lease existing housing and incorporate such housing into 

contracts negotiated under these authorities; would repeal section 

2879 of title 10, United States Code; would amend section 2880 of 

title 10, United States Code, to remove restrictions on space limitations by grade for unaccompanied housing provided under these authorities on a military installation; and would amend section 2883 

of title 10, United States Code, to consolidate the existing separate 

family housing and unaccompanied housing improvement funds 

into a single fund. 

The Senate amendment contained a provision (sec. 2803) that 

would amend section 2874 of title 10, United States Code, to permit service secretaries to lease existing housing and incorporate 

such housing into contracts negotiated under these authorities. The 

provision would repeal section 2879 of title 10, United States Code, 

and make certain conforming changes. 

The House recedes with an amendment that would amend section 2872a of title 10, United States Code, to add police and fire 

protection services to the list of services that a service secretary 

may be provide under this authority. 

751

Pilot housing privatization authority for acquisition or construction 

of military unaccompanied housing (sec. 2803) 

The House bill contained a provision (sec. 2804) that would authorize the Secretary of the Navy to undertake no more than three 

pilot projects within the United States and its territories for the acquisition or construction of military unaccompanied housing to be 

operated and maintained by private sector entities. The provision 

would also authorize the Secretary of Defense to set specific higher 

rates of partial basic allowance for housing (BAH) for sailors or marines assigned to this housing. The authorities would expire September 30, 2007. 

The Senate amendment contained a provision (sec. 604) that 

would authorize the Secretary of Defense to prescribe higher partial basic allowance for housing rates. The rates would be expected 

to approximate, but be lower than, current BAH rates for unaccompanied junior enlisted personnel assigned to shore commands 

where government-provided housing is not available. The authority 

would expire in 2007.

The Senate recedes with an amendment that would authorize 

a partial BAH for members assigned to such projects and would direct that the Department of Defense Military Unaccompanied 

Housing Improvement Fund be used to fund the pilot program. 

Repeal of source requirements for family housing construction overseas (sec. 2804) 

The Senate amendment contained a provision (sec. 2802) that 

would repeal section 803 of the Military Construction Authorization 

Act, 1984 (Public Law 98–115), which requires the use of housing 

manufactured or fabricated in the United States in family housing 

constructed in foreign countries. 

The House bill contained no similar provision. 

The House recedes. 

Availability of energy cost savings realized at military installations 

(sec. 2805) 

The conferees agree to include a provision that would modify 

section 2865 of title 10, United States Code, to allow up to twothirds of energy savings realized from energy savings contracts to 

remain available until expended. Under current law, such funds 

are available for up to two years. The conferees believe this change 

would allow the military departments to make more efficient use 

of savings realized under Energy Savings Performance Contracts. 

Subtitle B—Real Property and Facilities Administration 

Agreements to limit encroachments and other constraints on military training, testing, and operations (sec. 2811) 

The House bill contained a provision (sec. 2811) that would authorize the secretaries of the military departments to enter into 

agreements with private entities to acquire interests in lands adjacent to military installations that would serve to limit development 

or preserve habitat in the vicinity of military installations in order 

to protect military training and operations. The House bill would 

752

also allow the secretaries of the military departments to enter into 

agreements to acquire water rights. 

The Senate amendment contained a similar provision (sec. 

2811). 

The Senate recedes with a technical amendment. 

Conveyance of surplus real property for natural resource conservation purposes (sec. 2812) 

The House bill contained a provision (sec. 2812) that would authorize the secretaries of the military departments to convey surplus real property to State or local governments or to nonprofit entities who have as their primary purpose the conservation of open 

space or natural resources. Property would be conveyed under this 

authority under the condition that it be used to preserve open 

space or the natural resources on such property. Any property conveyed that was no longer being used for such purposes would revert to the United States. 

In addition, any subsequent conveyance would be subject to 

secretarial approval and to the condition that the property be 

maintained for natural resource conservation in perpetuity. Any 

property no longer being maintained in accordance with these provisions would revert to the United States. 

The Senate amendment contained a similar provision (sec. 

2812) that would require prior notice to Congress before any subsequent conveyance of the property. 

The Senate recedes with an amendment that would also require prior notice to Congress before any release of covenants on 

such property. 

Modification of demonstration program on reduction in long-term 

facility maintenance costs (sec. 2813) 

The House bill contained a provision (sec. 2814) that would authorize the Secretary of Defense to conduct a demonstration program to assess whether the inclusion of facility maintenance requirements in military construction contracts may reduce the longterm facility maintenance costs of the military departments. The 

program would be limited to 12 contracts, and would be in addition 

to similar authority provided to the Secretary of the Army by section 2814 of the Military Construction Authorization Act for Fiscal 

Year 2002 (division B of Public Law 107–107). 

The Senate amendment contained a similar provision (sec. 

2813) that would amend section 2814 of the Military Construction 

Act for Fiscal Year 2002 (division B of Public Law 107–107) to authorize the Department of Defense to expand the number of demonstration projects on reduction of long-term facility maintenance 

costs from three to 12. The provision would amend that act to expand the program to the Department of the Navy and the Department of the Air Force while providing for the continuation of ongoing Army demonstration projects.

The House recedes with an amendment that would allow each 

military department to enter into up to 12 contracts as part of the 

demonstration program. 

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Expanded authority to transfer property at military installations to 

be closed to persons who construct or provide military family 

housing (sec. 2814) 

The House bill contained a provision (sec. 2815) that would 

amend section 204 of the Defense Authorization Amendments and 

Base Closure and Realignment Act (Public Law 100–526) and section 2905 of the Defense Base Closure and Realignment Act of 1990 

(Public Law 101–510) to provide greater flexibility to the secretary 

of a military department to exchange property at a closed military 

installation for military family housing that is needed at other installations, even if the property to be exchanged was identified as 

essential to the reuse plan at the closing installation. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

The conferees direct the secretaries of the military departments to consult with and take into consideration the views of the 

local redevelopment agency prior to entering into an agreement to 

transfer any property at a closed military installation to a third 

party in exchange for the construction of military housing at another location. 

Subtitle C—Land Conveyances 

Part I—Army Conveyances 

Transfer of jurisdiction, Fort McClellan, Alabama, to establish 

Mountain Longleaf National Wildlife Refuge (sec. 2821) 

The conferees agree to include a provision that would direct 

the Secretary of the Army to transfer approximately 7,600 acres of 

real property at Fort McClellan, Alabama, to the Secretary of the 

Interior for the purpose of establishing the Mountain Longleaf National Wildlife Refuge. The Secretary of the Army would retain responsibility for ordnance and munitions on the property. The provision would authorize the Secretary of the Army to provide up to 

$500,000 from the Base Realignment and Closure Account to the 

Secretary of the Interior to facilitate the transfer of the property 

and support environmental research. 

Land conveyances, lands in Alaska no longer required for National 

Guard purposes (sec. 2822) 

The House bill contained a provision (sec. 2821) that would authorize the Secretary of the Army to convey to the State of Alaska, 

a local government entity, or Native corporation in the State of 

Alaska certain parcels of real estate in the National Wildlife Refuge System in Alaska that are excess to the needs of the Alaska 

National Guard. 

The Senate amendment contained a similar provision (sec. 

2821). 

The Senate recedes. 

Land conveyance, Sunflower Army Ammunition Plant, Kansas (sec. 

2823) 

The Senate amendment contained a provision (sec. 2832) that 

would authorize the Secretary of the Army or the Administrator of 

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the General Services Administration to convey approximately 2,000 

acres at the former Sunflower Army Ammunition Plant, Kansas, to 

the Johnson County Park and Recreation District, Kansas, for recreational purposes. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

only the Administrator of General Services Administration to convey the property. The amendment would also make certain technical and conforming changes. 

Land conveyances, Bluegrass Army Depot, Richmond, Kentucky 

(sec. 2824) 

The Senate amendment contained a provision (sec. 2833) that 

would authorize the Secretary of the Army to convey 10 acres, 

without consideration, at Blue Grass Army Depot, Kentucky, to 

Madison County, Kentucky, for the purpose of constructing a veterans’ center. The property could revert to the United States if not 

being used for the intended purpose. 

The House bill contained no similar provision. 

The House recedes with an amendment that would also authorize the Secretary to convey to the county, without consideration, an additional three acres for the purpose of constructing an 

educational center and historic museum and would permit the Secretary to require reimbursement to the Government for administrative costs associated with these conveyances. The conferees further 

agree to require reimbursement for any excess costs that result 

from a request by the recipient for any environmental assessment 

or other activities beyond those considered reasonable and necessary to convey this property in compliance with existing law. 

Land conveyance, Fort Campbell, Kentucky (sec. 2825) 

The House bill contained a provision (sec. 2822) that would authorize the Secretary of the Army to convey, without consideration, 

a parcel of real property at Fort Campbell, Kentucky, consisting of 

approximately 50 acres containing an abandoned railroad spur, to 

the City of Hopkinsville, Kentucky. The property would be used by 

the City for storm water management, recreation, and other public 

purposes. The cost of any surveys necessary for the conveyance 

would be borne by the City. 

The Senate amendment contained a similar provision (sec. 

2822) that would require, as a condition of the conveyance, the City 

to reimburse the Secretary for costs incurred to carry out the conveyance. 

The House recedes with an amendment that would permit the 

Secretary to require reimbursement to the Government for administrative costs associated with this conveyance. The conferees further agree to require reimbursement for any excess costs that result from a request by the recipient for any environmental assessment or other activities beyond those considered reasonable and 

necessary to convey the property in compliance with existing law. 

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Land conveyance, Army Reserve Training Center, Buffalo, Minnesota (sec. 2826) 

The House bill contained a provision (sec. 2823) that would authorize the Secretary of the Army to convey, without consideration, 

a parcel of real property, with improvements, to the Buffalo Independent School District 877 of Buffalo, Minnesota. The property is 

to be used by the school district as a learning center. The cost of 

any surveys necessary for the conveyance would be borne by the 

school district. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would permit the 

Secretary to require reimbursement to the Government for administrative costs associated with this conveyance. The conferees further agree to require reimbursement for any excess costs that result from a request by the recipient for any environmental assessment or other activities beyond those considered reasonable and 

necessary to convey the property in compliance with existing law. 

Land conveyance, Fort Monmouth, New Jersey (sec. 2827) 

The House bill contained a provision (sec. 2826) that would authorize the Secretary of the Army to sell a parcel of land consisting 

of approximately 64 acres of military family housing known as 

Howard Commons and located at Fort Monmouth, New Jersey. The 

provision would specify that the sale would be made on a competitive basis and would be at no less than fair market value. As compensation the Secretary may accept payment in-kind that would 

build replacement facilities or rehabilitate existing military family 

housing at Fort Monmouth. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would authorize 

either the Secretary of the Army or the Administrator of the General Services Administration to carry out the conveyance. The 

amendment would also make certain conforming changes and require the Secretary of the Army to notify the congressional defense 

committees in the event the payment in-kind takes the form of new 

construction. 

Land conveyance, Fort Bliss, Texas (sec. 2828) 

The House bill contained a provision (sec. 2824) that would authorize the Secretary of the Army to convey, without consideration, 

a parcel of real property at Fort Bliss, Texas, consisting of approximately 44 acres with and without improvements, to the State of 

Texas. The property would be used by the State for the construction of a veterans’ nursing home and could revert to the United 

States if not being used for the intended purpose. The cost of any 

surveys necessary for the conveyance would be borne by the State. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would permit the 

Secretary to require reimbursement to the Government for administrative costs associated with this conveyance. The conferees further agree to require reimbursement for any excess costs that result from a request by the recipient for any environmental assessment or other activities beyond those considered reasonable and 

necessary to convey the property in compliance with existing law. 

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Land conveyance, Fort Hood, Texas (sec. 2829) 

The House bill contained a provision (sec. 2825) that would authorize the Secretary of the Army to convey, without consideration, 

a parcel of real estate at Fort Hood, Texas, consisting of approximately 174 acres with and without improvements, to the Veterans 

Land Board of the State of Texas. The property would be used by 

the State to establish a State-run veterans’ cemetery. The cost of 

any surveys necessary for the conveyance would be borne by the 

Board. 

The Senate amendment contained a similar provision (sec. 

2829) which provided that the property could revert to the United 

States if not being used for the intended purpose. 

The House recedes with an amendment that would permit the 

Secretary to require reimbursement to the Government for administrative costs associated with this conveyance. The conferees further agree to require reimbursement for any excess costs that result from a request by the recipient for any environmental assessment or other activities beyond those considered reasonable and 

necessary to convey the property in compliance with existing law. 

Land conveyances, Engineer Proving Ground, Fort Belvoir, Virginia 

(sec. 2830) 

The Senate amendment contained a provision (sec. 2830) that 

would authorize the Secretary of the Army to convey, without consideration, approximately 135 acres at the Engineer Proving 

Ground, Fort Belvoir, Virginia to Fairfax County, Virginia for use 

as a park or recreational purposes. The provision would further authorize the Secretary to convey, at fair market value using competitive procedures, the remaining acreage at the Engineer Proving 

Ground. The compensation received by the Secretary could be in 

cash or in the form of in-kind consideration for maintenance, improvement, alteration, repair, restoration, or construction of facilities at Fort Belvoir. The provision would repeal section 2821, as 

amended, of the National Defense Authorization Act for Fiscal Year 

1990 and 1991 (Public Law 101–189) relating to the Engineer Proving Ground. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

either the Secretary of the Army or the Administrator of the General Services Administration to convey the balance of the property. 

The amendment would also direct that the congressional defense 

committees be notified when payment in-kind involves the construction of new facilities. The amendment would also make certain 

conforming changes. 

Part II—Navy Conveyances 

Land conveyance, Marine Corps Air Station, Miramar, San Diego, 

California (sec. 2831) 

The House bill contained a provision (sec. 2831) that would authorize the Secretary of the Navy to convey a parcel of real property at Marine Corps Air Station Miramar, San Diego, California, 

to ENPEX Corporation. As consideration, the provision would require that the corporation convey to the United States a parcel of 

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real property in the San Diego area, and if that parcel does not 

contain housing suitable for use as military family housing, the corporation would construct family housing and convey such housing 

and underlying real estate to the Secretary of the Navy. The provision would also require that the value of the housing and real estate to be acquired by the Secretary be of at least equal value to 

real estate being conveyed and would restrict the use of the land 

conveyed by the Secretary to the generation of electric power. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Modification of authority for land transfer and conveyance, Naval 

Security Group Activity, Winter Harbor, Maine (sec. 2832) 

The Senate amendment contained a provision (sec. 2823) that 

would amend section 2845(b) of the Military Construction Act for 

Fiscal Year 2002 (division B of Public Law 107–107) to authorize 

the Secretary of the Navy to convey to the State of Maine, a political subdivision of the State, or any tax-supported agency in the 

State, without consideration, approximately 50 acres known as the 

Corea Operating Site and approximately 23 acres comprising three 

parcels containing family housing. The provision would further authorize the Secretary to convey approximately 404 acres of the 

Corea site to the Secretary of the Interior for inclusion in the National Wildlife Refuge System, as requested by the Department of 

the Interior pursuant to the federal screening required by section 

2696 of title 10, United States Code. 

The House bill amendment contained no similar provision. 

The House recedes with a technical amendment. 

Land conveyance, Westover Air Reserve Base, Massachusetts (sec. 

2833) 

The Senate amendment contained a provision (sec. 2824) that 

would authorize the Secretary of the Navy to convey, without consideration, to the City of Chicopee, Massachusetts, property consisting of 30.4 acres, including 133 housing units and other improvements that are no longer required for defense purposes, located at Westover Air Reserve Base, Massachusetts. The property 

would be used by the city for economic development. The provision 

would authorize the Secretary to require the City of Chicopee to reimburse the Navy for the administrative costs related to the conveyance. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require reimbursement for any excess costs that result from a request by the 

recipient for any environmental assessment or other activities beyond those considered reasonable and necessary to convey the property in compliance with existing law. 

Land conveyance, Naval Station, Newport, Rhode Island (sec. 2834) 

The Senate amendment contained a provision (sec. 2825) that 

would authorize the Secretary of the Navy to convey to the State 

of Rhode Island, or any political subdivision thereof, a parcel of real 

property consisting of approximately 34 acres, with any improveVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00781 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
758

ments thereon, known as the Melville Marina site. The conveyance 

would be by sale for fair market value. 

The House bill contained no similar provision. 

The House recedes. 

Land exchange and boundary adjustments, Marine Corps Base, 

Quantico, and Prince William Forest Park, Virginia (sec. 2835) 

The House bill contained a provision (sec. 2832) that would authorize the Secretary of the Interior and the Secretary of the Navy 

to adjust the boundaries of Marine Corps Base, Quantico, Virginia, 

and Prince William Forest Park, Virginia. The boundary adjustment would require the Secretary of the Navy to transfer approximately 352 acres of land to the administrative jurisdiction of the 

Secretary of the Interior and would require the Secretary of the Interior to transfer approximately 3,400 acres of land to the administrative jurisdiction of the Secretary of the Navy. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical and clarifying amendment. 

Part III—Air Force Conveyances 

Modification of land conveyance, Los Angeles Air Force Base, California (sec. 2841) 

The conferees agree to include a provision that would modify 

section 2861 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106–398) to extend the 

time limitation on a leaseback exercised under that authority, if 

any, from ten to thirty years. 

Land exchange, Buckley Air Force Base, Colorado (sec. 2842) 

The Senate amendment contained a provision (sec. 2826) that 

would authorize the Secretary of the Air Force to convey to the 

State of Colorado property consisting of approximately 72 acres, including improvements, known as the Watkins Communication Site 

in Arapahoe County, Colorado. In exchange, the State would convey to the Air Force real property consisting of approximately 41 

acres, including improvements, that is contiguous to Buckley Air 

Force Base, Colorado. The property conveyed to the Air Force 

would be used to build additional housing and would not be subject 

to general land laws, including mining and mineral and geothermal 

leasing laws. The provision would authorize additional terms and 

conditions, which may include a payment by one party to the other 

to reflect a difference in the value of the two parcels of property. 

Because the acquisition of this land had not yet received the approval normally required by the Office of the Secretary of Defense, 

the provision specified that this exchange would require the concurrence of the Secretary of Defense. 

The House bill contained no similar provision. 

The House recedes with an amendment that would specify that 

the purpose of the conveyance is for the construction of military 

family housing. Since the Secretary of Defense has approved the required land acquisition waiver, the amendment would also strike 

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the limitation that the Secretary of Defense must concur with the 

conveyance. 

Land conveyances, Wendover Air Force Base Auxiliary Field, Nevada (sec. 2843) 

The House bill contained a provision (sec. 2841) that would authorize the Secretary of the Interior and the Secretary of the Air 

Force to convey certain parcels of real property at Wendover Air 

Force Base Auxiliary Field, Nevada, to the City of West Wendover, 

Nevada, and Tooele County, Utah, without consideration, for the 

purpose of establishing a runway protection zone and the development of an industrial park. 

The Senate amendment contained a similar provision (sec. 

2828). 

The Senate recedes with a technical amendment. 

Subtitle D—Other Matters 

Master plan for use of Navy Annex, Arlington, Virginia (sec. 2851) 

The Senate amendment contained a provision (sec. 2831) that 

would repeal title XXIX of the Military Construction Authorization 

Act for Fiscal Year 2000 (division B of Public Law 106–65) regarding the Commission on the National Military Museum. The provision would also amend section 2881 of that Act to require the Secretary of Defense to submit a master plan for the use of the Navy 

Annex, Arlington, Virginia, no later than 180 days after enactment 

of the bill. The provision would further direct that the master plan 

not delay the construction of the Air Force Memorial. 

The House bill contained no similar provision. 

The House recedes with an amendment that would delete the 

language referring to the National Military Museum. 

Sale of excess treated water and wastewater treatment capacity, Marine Corps Base, Camp Lejeune, North Carolina (sec. 2852) 

The House bill contained a provision (sec. 2862) that would 

permit the Secretary of the Navy to enter into an agreement that 

would allow Camp Lejeune, North Carolina, to provide treated 

water and wastewater treatment services to Onslow County, North 

Carolina, if the Secretary determines that such an agreement is in 

the public interest and will not interfere with current or future 

utility needs at Camp Lejeune. The county would be required to reimburse the Navy for the fair market value of the services provided, and any amounts paid would be credited to the base operations and maintenance accounts of Camp Lejeune. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Conveyance of real property, Adak Naval Complex, Alaska, and related land conveyances (sec. 2853) 

The House bill contained a provision (sec. 2863) that would 

ratify an agreement made by the Secretary of the Interior, the Secretary of the Navy, and the Aleut Corporation in September 2000 

concerning the reuse of the Adak Naval Complex, Alaska, and 

other related parcels of land. The agreement would provide that 

760

real estate on Adak Island withdrawn for use by the Secretary of 

the Navy may be transferred to the Aleut Corporation without regard to the requirements of section 1621 of title 42, United States 

Code, pertaining to lands in the Alaska Maritime National Wildlife 

Refuge. In return, the Aleut Corporation would agree to transfer to 

the Secretary of the Interior at least 36,000 acres of land suitable 

for inclusion in the Alaska Maritime National Wildlife Refuge. 

The Senate amendment contained no similar provision. 

On August 1, 2002, the Senate passed S. 1325, a bill that was 

nearly identical to the House provision. The House passed S. 1325 

on September 24, 2002, and it was signed into law by the President 

on October 11, 2002, as Public Law 107–239. 

The Senate recedes with an amendment that would amend S. 

1325 by adding the language contained in subsection (g) of the 

House bill regarding the tax basis of property received under the 

ratified agreement. 

Special requirement for adding military installation to closure list 

(sec. 2854) 

The House bill contained a provision (sec. 2864) that would 

amend the Defense Base Closure and Realignment Act of 1990 

(title XXIX of Public Law 101–510) to require that in order for the 

base closure commission to add a base to the list proposed by the 

Secretary of Defense in the 2005 base closure round, the commission would have to vote unanimously to add the base to the list, 

and at least two commissioners would have to visit that base during the commission’s review of the list. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would provide 

that in order for the commission to recommend closure of a base 

that is added to the Secretary’s list for consideration by the commission, at least two commissioners must visit any such base before the commission holds its final vote and submits its recommendations to the President. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Easement for construction of roads or highways, Marine Corps 

Base, Camp Pendleton, California

The House bill contained a provision (sec. 2861) that would 

amend section 2851 of the Military Construction Authorization Act 

for Fiscal Year 1999 (division B of Public Law 105–261), as previously amended by section 2867 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107), by providing 

that provisions of California state law could not prevent the Secretary of the Navy from granting an easement for a proposed road 

or highway across federal property at Camp Pendleton, California, 

and that State law would not apply to the construction, operation, 

or maintenance of any such road by the Foothill/Eastern Transportation Corridor Agency. 

The Senate amendment contained no similar provision. 

The House recedes. 

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Land acquisition, Boundary Channel Drive Site, Arlington 

The Senate amendment contained a provision (sec. 2827) that 

would authorize the Secretary of Defense, using amounts authorized to be appropriated by section 2401, to acquire approximately 

7.2 acres of real property in Arlington County, Virginia, known as 

the Boundary Channel Drive Site. The provision would direct that, 

upon the purchase of the site, the property be included in the Pentagon Reservation as defined in section 2674 (f)(1) of title 10, 

United States Code. 

The House bill contained no similar provision. 

The Senate recedes. 

National emergency exemption from screening and other requirements of McKinney-Vento Homeless Assistance Act for property 

used in support of response activities 

The House bill contained a provision (sec. 2813) that would 

amend section 11411 of title 42, United States Code, to provide an 

exception to the requirement to screen excess or surplus property 

for various other uses when the property may be needed by federal, 

state, or local agencies to support response efforts in times of war, 

national emergency, or a major disaster. 

The Senate amendment contained no similar provision. 

The House recedes. 

Transfer of funds for acquisition of replacement property for National Wildlife Refuge system lands in Nevada 

The Senate amendment contained a provision (sec. 2841) that 

would authorize the Secretary of the Air Force to transfer $15.0 

million in funds authorized to be appropriated to the Air Force for 

fiscal year 2003 for land acquisition at Nellis Air Force Base, Nevada, to the United States Fish and Wildlife Service to purchase 

replacement lands for the National Wildlife Refuge (NWR) system 

in Nevada. These lands would replace lands removed from the 

NWR system and withdrawn for military training by section 

3011(b) of the Military Lands Withdrawal Act of 1999 (title XXX 

of Public Law 106–65). 

The House bill contained no similar provision. 

The Senate recedes.

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

TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY

PROGRAMS

Overview 

Title XXXI authorizes appropriations for atomic energy defense 

activities of the Department of Energy (DOE) for fiscal year 2003, 

including: the purchase, construction, and acquisition of plant and 

capital equipment; research and development; nuclear weapons; 

naval nuclear propulsion; environmental restoration and waste 

management; operating expenses; and other expenses necessary to 

carry out the purposes of the Department of Energy Organization 

Act (Public Law 95–91). The title would authorize appropriations 

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in four categories: National Nuclear Security Administration 

(NNSA); defense environmental management; other defense activities; and defense nuclear waste disposal. 

The budget request for atomic energy defense activities at the Department of Energy totaled $15.4 billion, a 4.4 percent increase 

above the fiscal year 2002 level. Of the total amount requested, 

$8.0 billion would be for the National Nuclear Security Administration, of which $5.9 billion would be for weapons activities, $1.1 billion would be for defense nuclear nonproliferation activities, $708.0 

million would be for naval reactors, and $347.7 million would be for 

the Office of the Administrator; $6.6 billion would be for defense 

environmental management, of which, $4.6 billion would be for defense environmental restoration and waste management activities, 

$800.0 million for environmental management cleanup reform, $1.1 

billion would be for defense facilities closure projects, and $158.4 

million would be for defense environmental management privatization; $472.2 million would be for other defense activities; and 

$315.0 million would be for defense nuclear waste disposal. The conferees agree to authorize $15.6 billion for atomic energy 

defense activities at the Department of Energy, an increase of 

$142.0 million above the budget request. The conferees agree to authorize $8.0 billion for the NNSA, a reduction of $0.2 million to the 

budget request. Of the amounts authorized for the NNSA, $5.9 billion would be for weapons activities, $1.1 billion would be for defense nuclear nonproliferation activities, $706.8 million would be 

for naval reactors, and $325.9 million would be for the Office of the 

Administrator. The conferees agree to authorize $6.8 billion for the 

defense environmental management activities, an increase of 

$151.8 million above the budget request. Of the amounts authorized for defense environmental management, $4.5 billion would be 

for defense environmental restoration and waste management activities, $982.0 million would be for environmental management 

cleanup reform, $1.1 billion would be for defense facilities closure 

projects, and $158.4 million would be for defense environmental 

management privatization. The conferees agree to authorize $462.7 

million for other defense activities, a decrease of $9.5 million. The 

amount authorized for other defense activities would include $27.7 

million for energy security and assurance, $185.5 million for the 

Office of Security, $41.2 million for intelligence, $46.0 million for 

counterintelligence, $22.4 million for independent oversight and 

performance assurance, $99.0 million for environmental safety and 

health; $19.7 million for worker and community transition, $25.6 

million for national security program administration support and 

$2.9 million for the Office of Hearing and Appeals. The conferees 

agree to authorize $315.0 million for defense nuclear waste disposal. 

The following table summarizes the budget request and the authorizations:

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ITEMS OF SPECIAL INTEREST

Management of the National Nuclear Security Administration 

The National Defense Authorization Act for Fiscal Year 2002 

(Public Law 107–107), which was enacted on December 28, 2001, 

amended the National Nuclear Security Administration Act, at the 

request of the Administrator, to create a new position of Deputy 

Administrator for the National Nuclear Security Administration 

(NNSA). As of September 2002 the President has not submitted a 

nominee for that position, and it remains vacant. In July 2002, the 

Administrator of the NNSA resigned to take a new position. No 

nominee has been submitted for the Administrator position. 

The NNSA was created by Congress to provide clear lines of 

authority and to streamline the management of the nonproliferation and defense programs at the Department of Energy. The conferees are concerned that without permanent leadership in these 

two senior NNSA positions, much of the progress that has been 

made at the NNSA, particularly in efforts to restructure the headquarters and field organizations, may be in jeopardy. The conferees 

support the work of the two programmatic deputies at the NNSA 

and believe that each has contributed significantly to the progress 

of the organization. Nevertheless, the conferees believe that the 

two most senior positions in the NNSA should be permanently 

filled. Any individual, no matter how talented and well-qualified, is 

at a disadvantage when serving in an acting capacity. The conferees strongly encourage the President to submit qualified nominees for the two senior NNSA positions as quickly as possible. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—National Security Programs Authorizations 

National Nuclear Security Administration (sec. 3101) 

The House bill contained a provision (sec. 3101) that would authorize $8.0 billion for the National Nuclear Security Administration (NNSA). 

The Senate amendment contained a similar provision (sec. 

3101) that would authorize $8.2 billion for the NNSA. 

The conferees agree to include a provision that would authorize 

$8.0 billion for the activities of the NNSA after offsets, a reduction 

of $0.2 million to the budget request. The conferees note that each 

program is authorized at the full amount reflected in the individual 

program line prior to offsets. The conferees have reduced program 

direction accounts to reflect the proper accounting for the accrual 

of civilian personnel benefits under current law. 

The budget request included $451.8 million for the high energy 

density physics campaign, of which $237.7 million was for operation and maintenance and $214.0 million was for construction of 

the National Ignition Facility (NIF). The conferees agree to include 

$487.5 million for the campaign, an increase of $35.7 million above 

the budget request for operation and maintenance to keep the cryogenic target and NIF diagnostics work on schedule to support the 

planned NIF ignition schedule, and to support the high average 

power laser and pettawatt laser initiatives. 

783

The budget request included $194.5 million for the pit manufacturing and certification campaign. The conferees agree to include 

$199.5 million, an increase of $5.0 million above the budget request 

to support the Environmental Impact Statement for a new pit facility. The budget request included $1.7 billion for Readiness in Tech- nical Base and Facilities (RTBF) of which $949.9 million was for 

operation of facilities and $37.7 million was for special projects. 

The conferees agree to include $1.0 billion for operation of facilities, 

an increase of $72.0 million above the budget request of which 

$25.0 million is for the Pantex facility, $20.0 million is for the Y– 12 facility, and $27.0 million is for the Nevada Test Site for the 

Center for Combating Terrorism. The conferees agree to provide 

$44.7 million for special projects, an increase of $6.9 million above 

the budget request for the annual payment to the Los Alamos 

Foundation. 

The budget request included $14.6 million for International Nuclear Safety. The conferees agree to include $13.1 million, a reduction of $1.5 million to the budget request. The conferees do not 

support work related to the operational safety of commercial power 

reactors outside the Former Soviet Union, and that are not Sovietdesigned reactors. 

Defense environmental management (sec. 3102) 

The House bill contained a provision (sec. 3102) that would au- thorize $7.4 billion for environmental restoration, waste management, and other defense activities. 

The Senate amendment contained a provision (sec. 3102) that would authorize $6.8 billion for defense environmental management activities and a provision (sec. 3104) that would authorize 

$158.4 million for defense environmental management privatization. 

The conferees agree to authorize $6.7 billion for defense environmental management, including defense environmental privatization, an increase of $151.8 million above the budget request. The 

conferees note that each program is authorized at the full amount 

reflected in the individual program line prior to offsets. The conferees have reduced program direction accounts to reflect the proper accounting for the accrual of civilian personnel benefits under 

current law to reflect the civil service accrual adjustment. 

The budget request included $800.0 million for environmental 

management cleanup reform. An amended budget request included 

an additional $300.0 million. The conferees agree to include $982.0 

million, an increase of $182.0 million above the budget request. 

The conferees note that this will fully fund the Department of Energy commitments to defense sites. In addition, the conferees have 

included a new construction line item within the environmental 

management cleanup reform account that would provide $8.8 million for project engineering and design funds, including $7.5 million 

for design of the salt waste processing facility, and $1.3 million for 

design of an additional glass waste storage building. Both projects 

are at the Savannah River Site. 

The budget request included $1.1 billion for defense facilities 

closure projects. The conferees agree to authorize $1.1 billion, an 

784

increase of $18.0 million above the budget request, for increased security costs at the Rocky Flats Site. 

Other defense activities (sec. 3103) 

The Senate amendment contained a provision (sec. 3103) that 

would authorize $489.9 million for other defense activities. 

The House bill contained a provision (sec. 3102) that would authorize $7.4 billion for environmental and other defense activities 

including $457.7 million for other defense activities. 

The conferees agree to authorize $462.7 million, a decrease of 

$9.5 million to the budget request. The conferees note that each 

program is authorized at the full amount reflected in the individual 

program line prior to offsets. The conferees have reduced program 

direction accounts to reflect the proper accounting for the accrual 

of civilian personnel benefits under current law. 

The budget request included $99.9 million for environment, 

safety and health. The conferees agree to authorize $99.0 million. 

In addition to the $13.9 million contained in the budget request for 

enhanced medical screening, the conferees agree that an additional 

$2.5 million shall be available for a total of $16.4 million for enhanced medical screening of current and former workers at Department of Energy (DOE) nuclear facilities, including the three gaseous diffusion plants. The conferees believe DOE should promptly 

take the steps necessary to ensure that medical screening, including the use of advanced techniques for early lung cancer detection, 

is made available to current and former workers. The conferees encourage DOE to request sufficient funds in the future to conduct 

medical screening on all current and former workers who wish to 

have the screening. 

The budget request included $25.8 million for the office of 

worker and community transition. The conferees include $19.7 million, a reduction of $6.1 million to the budget request. 

Defense nuclear waste disposal (sec. 3104) 

The Senate amendment contained a provision (sec. 3105) that 

would authorize $215.0 million for payment to the Nuclear Waste 

Fund (NWF) established by the Nuclear Waste Policy Act of 1982 

(42 U.S.C. 10222(c)). 

The House bill contained a provision (sec. 3102) that would authorize $7.4 billion for environmental and other defense activities 

including $315.0 million for the payment to the NWF. 

The conferees agree to authorize $315.0 million for the payment to the NWF, the amount of the budget request. 

Subtitle B—Program Authorizations, Restrictions, and Limitations 

Annual assessments and reports to the President and Congress regarding the condition of the United States nuclear weapons 

stockpile (sec. 3141) 

The House bill contained a provision (sec. 3144) that would require an annual certification process regarding the safety, reliability, and performance of the U.S. nuclear stockpile. No later 

than January 15 of each year, the directors of the national laboratories and the Commander in Chief of the Strategic Command 

785

would be required to submit to the Secretary of Energy and the 

Secretary of Defense, respectively, a certification regarding the 

safety, reliability, and performance of each nuclear weapon type in 

the active stockpile of the United States for which each official is 

responsible. No later than February 1 of each year, the secretaries 

would be required to submit to the President and the Congress 

each certification and report that they received together with any 

other information. The provision would also require that the head 

of each national laboratory would constitute and use a ‘‘red team’’ as part of the certification process to subject to challenge and provide peer review of matters in the certification. In addition, the 

head of each national laboratory and the Commander in Chief of 

the Strategic Command would each submit, with the certification, 

a report that would assess the Department of Energy stockpile 

stewardship program. 

The Senate amendment contained no similar provision. 

The Senate recedes with a number of clarifying amendments. 

The conferees intend that this provision should generally reflect 

the ongoing annual certification process of the active stockpile with 

the addition of the ‘‘red teams’’, including the participation of the 

Nuclear Weapons Council. The heads of the national security laboratories and the Commander in Chief of the Strategic Command 

would be required to submit their reports to the Secretary of Energy and the Secretary of Defense, respectively, and to the Nuclear 

Weapons Council by December 1 of each year beginning in 2003. 

The Secretaries of Energy and Defense would be required to submit 

their reports to the President by March 1 of each year beginning 

in 2004. The President would be required to submit his report, together with all reports required to be submitted to him, to Congress by March 15 of each year beginning in 2004. Each of the various reports would be required to be submitted in classified form 

but with each portion of the report marked to show its specific classification level. 

The conferees note that the various reports should be brief and 

concise. 

Plans for achieving enhanced readiness posture for resumption by 

the United States of underground nuclear weapons tests (sec. 

3142) 

The House bill contained a provision (sec. 3145) that would require the Secretary of Energy to submit to Congress with the fiscal 

year 2004 budget request a report on a plan and a budget to enhance underground nuclear test readiness. The report would detail 

the plan and budget required to achieve a one-year readiness posture for resumption of underground nuclear weapons tests. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would require the 

Secretary of Energy to submit to Congress with the fiscal year 2004 

budget request a report on plans and cost estimates for achieving 

and maintaining test readiness postures of six, 12, 18, and 24 

months. In addition, the report would include an assessment of the 

current test readiness posture of the United States and a recommendation by the Secretary in conjunction with the Secretary of 

Defense as to the optimal readiness posture for the United States. 

786

The conferees encourage the Secretary of Energy to submit plans 

for achieving and the cost of achieving and maintaining the recommended test readiness posture with, or as part of, the report required by the provision. 

Requirements for specific request for new or modified nuclear weapons (sec. 3143) 

The Senate amendment contained a provision (sec. 3134) that 

would require the Secretary of Energy specifically to request funds 

before beginning research and development and engineering and 

production activities to support any new or modified nuclear weapon to meet a new military requirement. The provision would require a specific request in a specific line item or items at two distinct points in time for any work on new or modified nuclear weapons. This requirement is consistent with past practices at the Department of Energy (DOE), similar to current acquisition practices 

for major weapons systems at the Department of Defense (DOD), 

and similar to the way DOE budgets for construction projects. 

A new weapon would be defined by the provision as any weapon that contains a pit or canned subassembly which is not in the 

stockpile or not in production on the date of enactment of this Act. 

The provision would require funding for all research and development activity leading to and including phase 1, 2, and 2A, for 

new nuclear weapons, and for all research and development activity leading to and including phase 6.1, 6.2 and 6.2A for modified 

nuclear weapons, be requested in a dedicated line item for each 

such activity. Funding for work at phase 3 or 6.3 and beyond would 

be required to be in a single line item for each new or modified nuclear weapon. 

The provision would not apply to the nuclear weapon stockpile 

life extension programs (SLEPs), to modification of an existing nuclear weapon solely to address safety or reliability concerns; or to 

modifications that would address proliferation concerns. 

The provision would not be construed to modify, repeal, or in 

any way affect the provisions of section 3136 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103- 160). 

The House bill contained no similar provision. 

The House recedes with an amendment that would require 

that the budget request for any research and development activities for modifications to nuclear weapons at the 6.2A phase and 

earlier, and research and development activities for new nuclear 

weapons at the 2A phase and earlier, would be aggregated in a single line. 

The conferees agree that nothing in this section may be construed to modify, repeal, or in any way affect the provisions of section 3136 of the National Defense Authorization Act for Fiscal Year 

1994 (Public Law 103–160) relating to prohibitions on research and 

development of low-yield nuclear weapons. 

Database to track notification and resolution phases of Significant 

Finding Investigations (sec. 3144) 

The Senate amendment contained a provision (sec. 3133) that 

would establish at the national laboratories of the National Nuclear Security Administration (NNSA) a database to track the notiVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00810 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
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fication and resolution phases of significant finding investigations 

(SFIs). The provision would require the Administrator of the NNSA 

to develop and implement a laboratory-wide database to monitor 

the laboratories’ progress on resolving SFIs. The Department of 

Energy’s Inspector General (DOE–IG) recommended a central SFI 

tracking system in a December 2001 report. The DOE–IG determined that DOE was plagued with a system that frequently missed 

self-imposed time frames for initiating and conducting investigations of defects and malfunctions in nuclear weapons. The committee believes that DOE should place a high priority on correcting 

this problem. 

The House bill contained no similar provision. 

The House recedes. 

Defense environmental management cleanup reform program (sec. 

3145) 

The House bill contained a provision (sec. 3151) that would require the Secretary of Energy to carry out a program to reform Department of Energy (DOE) environmental management activities 

using the funds for the reform account authorized under section 

3102(a) of the House bill. The funds would be transferred to and 

merged with accounts for DOE environmental management activities. Upon transfer and merger of the funds, all funds in the 

merged account would be available to carry out the site performance management plan at each site. The Secretary would be authorized to transfer the merged funds, which include the reform account funds, to each site upon the execution of a site performance 

management plan and its submission to the congressional defense 

committees. The provision would also define ‘‘DOE environmental 

management activities’’ as environmental restoration and waste 

management activities of the Department of Energy in carrying out 

programs necessary for national security. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would prohibit 

funds in the reform account from being obligated for a particular 

site until 30 days after the Secretary submits to the congressional 

defense committees a description of the activities to be carried out 

at that site. 

Limitation on obligation of funds for Robust Nuclear Earth Penetrator program pending submission of report (sec. 3146) 

The Senate amendment contained a provision (sec. 3132) that 

would require the Secretary of Defense, in consultation with the 

Secretary of Energy, to submit a report to the congressional defense committees no later than February 3, 2003, on the Robust 

Nuclear Earth Penetrator (RNEP) that sets forth: (1) the military 

requirements for the RNEP; (2) the nuclear weapons employment 

policy for the RNEP; (3) the detailed categories or types of targets 

that the RNEP is designed to hold at risk; and (4) an assessment 

of the ability of conventional weapons to address the same types of 

categories of targets that the RNEP is designed to hold at risk. 

The House bill contained no similar provision. 

The House recedes with an amendment that would fully fund 

the RNEP but prohibit obligation of any fiscal year 2003 funds for 

788

the RNEP until 30 days after the study is submitted to the Committees on Armed Services of the Senate and the House of Representatives. 

Subtitle C—Proliferation Matters 

Transfer to National Nuclear Security Administration of Department of Defense’s Cooperative Threat Reduction program relating to elimination of weapons grade plutonium production in 

Russia (sec. 3151) 

The House bill contained a provision (sec. 3142) that would 

transfer to the National Nuclear Security Administration (NNSA) 

the Department of Defense (DOD) Cooperative Threat Reduction 

(CTR) program to eliminate weapons grade plutonium in Russia 

and all associated program funds. The funds transferred would remain subject to the limitations applied to such funds before the 

transfer. 

The Senate amendment contained a similar provision (sec. 

3151) that would transfer the program from DOD to the NNSA, 

with all associated program funds but would make the program 

funds available to the NNSA notwithstanding any provision of law 

that limits expenditure of DOD funds. The NNSA could use the 

funds to design, construct, or refurbish, fossil fuel energy plants in 

Russia to provide alternative sources of energy to the Russian reactors that produce weapons grade plutonium and energy. The funds 

could also be used for limited safety upgrades of the Russian reactor plants to permit safe shutdown. 

The Senate amendment also contained a provision (sec. 3136) 

that would establish limitations on the funds after they were transferred to the NNSA. 

The House recedes with amendments. The conferees agree to 

include a single provision that will transfer the funds for the program to eliminate weapons grade plutonium in Russia from DOD 

to the NNSA, removing all prior limitations and establish new limitations. The funds would be available to design, refurbish, or both, 

fossil fuel energy plants and to carry out limited safety upgrades 

that would not extend the life of the plants. The provision would 

prohibit the Administrator from obligating or expending more than 

$100.0 million for the program until 30 days after the Administrator submits a copy of an agreement or agreements with the Russian Federation to shut down the three plutonium-producing reactors and submits a plan to achieve international cost sharing and 

participation in the program. 

The agreements must specify: (1) a commitment to shut down 

and the date or dates on which the Russian reactors will be shut 

down; (2) the schedule with milestones to shut down each reactor; 

(3) the schedule and milestones for the Russian participation in the 

construction or refurbishment of the fossil fuel energy plants; (4) a 

suitable access arrangement for the sites; (5) an arrangement for 

audit and examination procedures; and (6) any cost-sharing arrangements between the United States and the Russian Federation. 

789

Repeal of requirement for reports on obligation of funds for programs on fissile materials in Russia (sec. 3152) 

The House bill contained a provision (sec. 3143) that would repeal the semi-annual report on the Department of Energy fissile 

Materials Protection, Control, and Accounting (MPC&A) program 

required by section 3131 of the National Defense Authorization Act 

for Fiscal Year 1996 (Public Law 104–106). This report is no longer 

needed as the information is now included in the annual MPC&A 

report. 

The Senate amendment contained an identical provision. 

The conference agreement includes this provision. 

Expansion of annual reports on status of nuclear materials protection, control, and accounting programs (sec. 3153) 

The Senate amendment contained a provision (sec. 3153) that 

would amend the annual reporting requirement for the Department 

of Energy (DOE) Materials Protection, Control, and Accounting 

(MPC&A) program to include countries other than Russia. The 

DOE MPC&A program works to protect weapons grade nuclear 

materials in the countries of the Former Soviet Union, including 

Russia. The provision would also amend the MPC&A report to require the Secretary of Energy to identify the nature of the work 

performed in each country outside of Russia, the amount of material secured, the amount of material remaining to be secured, and 

the total amount spent by country. 

The House bill contained no similar provision. 

The House recedes. 

Testing of preparedness for emergencies involving nuclear, radiological, chemical, or biological weapons (sec. 3154) 

The Senate amendment contained a provision (sec. 3154) that 

would extend the time that exercises could be carried out under the 

program for testing and improving the responses of Federal, State, 

and local agencies to emergencies involving biological, chemical, 

nuclear, and radiological weapons and related materials from five 

fiscal years, beginning in fiscal year 1997, to 17 fiscal years, ending 

in fiscal year 2013. 

The House bill contained no similar provision. 

The House recedes. 

Cooperative program on research, development, and demonstration 

of technology regarding nuclear or radiological terrorism (sec. 

3155) 

The Senate amendment contained a provision (sec. 3155) that 

would direct the Administrator of Nuclear Security to carry out a 

program of research and technology for protection from nuclear or 

radiological terrorism in support of homeland security and 

counterterrorism. As part of the program, the Administrator would 

coordinate this program with the Office of Homeland Security, the 

Nuclear Regulatory Commission, the Departments of Defense, 

State, and Commerce, and the International Atomic Energy Agency. In addition, the Administrator would cooperate with the Russian Federation on research and demonstration of these technologies and, where feasible, provide assistance to other countries 

790

on matters relating to nuclear or radiological terrorism. The 

amendment would also authorize the Office of Defense Nuclear 

Nonproliferation in the National Nuclear Security Administration 

to use up to $15.0 million for the development of a new generation 

of radiation detectors for homeland defense under this program. 

The House bill contained no similar provision.

The House recedes with an amendment that would direct the 

Administrator to establish a cooperative program with the Russian 

Federation on the research, development, and demonstration of 

technologies for protection from and response to nuclear or radiological terrorism. The program would conduct research on technologies that could be used for the detection, identification, assessment, control, and disposition of radiological materials that could 

be used for nuclear terrorism. The program would also provide for 

the demonstration of the technologies developed by this program to 

other countries, in cooperation with the Russian Federation. The 

Administrator would be required to coordinate these research, development, and demonstration efforts with the Department of Energy’s Office of Environment, Safety, and Health; the Nuclear Regulatory Commission; the Departments of State, Defense, and Commerce; and the International Atomic Energy Agency. The Administrator would be authorized to use up to $15.0 million to carry out 

the activities under this program. 

Matters relating to the International Materials Protection, Control, 

and Accounting program of the Department of Energy (sec. 

3156) 

The Senate amendment contained a provision (sec. 3156) that 

would authorize the Secretary of Energy to expand the scope of the 

International Materials Protection, Control and Accounting 

(MPC&A) program to countries outside Russia and the independent 

states of the Former Soviet Union and require the Secretary to notify Congress 30 days after funds are obligated for these purposes. 

The provision would also: (1) authorize the Secretary to provide 

technical assistance to the Secretary of State to support his efforts 

to assist nuclear weapons states’ nuclear materials security program; (2) require the Secretary to develop a plan to accelerate the 

conversion or return of weapons-usable nuclear materials to the 

country of origin; (3) establish within the MPC&A program a radiological dispersal device MPC&A program and require a feasibility 

study on such a program; and (4) provide a sense of Congress encouraging support of the Convention on Physical Protection of Nuclear Materials. The provision would authorize the Office of Defense Nuclear Nonproliferation in the National Nuclear Security 

Administration to use up to $5.0 million for these activities. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

the Secretary of Energy to establish within the MPC&A program 

a new program that would protect, control, and account for radiological dispersal device materials. The provision would also encourage the Secretary to work cooperatively with the Russian Federation to develop a sustainable nuclear materials protection, control 

and accounting system for nuclear materials in Russia no later 

than January 1, 2013. This system should be designed to be supVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00814 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
791

ported, maintained and operated solely by the Russian Federation. 

In an effort to support this activity, the provision would also require the Secretary to work with the Russian Federation to identify 

transparency measures adequate to provide the United States with 

the assurances that the program is meeting this goal. Up to $5.0 

million may be used to carry out the new MPC&A program on radiological dispersal device materials activities. 

The conferees expect the United States’ support for the Russian Federation MPC&A system should be completed and the system should be sustainable by Russia no later than January 1, 2013. 

The conferees encourage the Secretary to accelerate efforts to resolve outstanding transparency issues for the MPC&A program to 

facilitate the required assurances necessary to monitor the progress 

and successes of this important national security program. 

The conferees have agreed to divide this provision into three 

provisions (secs. 3156, 3160, 3161). 

Accelerated disposition of highly enriched uranium (sec. 3157) 

The Senate amendment contained a provision (sec. 3157) that 

would set forth the sense of Congress that the Secretary of Energy, 

in consultation with the Secretaries of State and Defense, develop 

a comprehensive program to encourage all countries with nuclear 

materials to adhere to or adopt International Atomic Energy Agency standards on The Physical Protection of Nuclear Material and 

Nuclear Facilities (INFCIRC/225/Rev.4) relating to the security of 

stockpiles of highly enriched uranium and plutonium. The provision would also authorize the Secretary of Energy to carry out a 

program with the Russian Federation and any other nation with 

highly enriched uranium to pursue options for blending the uranium so that the enrichment of uranium U–235 is below 20 percent. As part of these options, the Department of Energy (DOE) 

Material Consolidation and Conversion program would be expanded, and the Secretary of Energy could provide financial and 

other incentives to Russia for the consolidation of Russian highly 

enriched uranium located throughout the Russian Federation. The 

Secretary would be required to report to Congress no later than 

July 1, 2003, on the status of this program. The provision would 

also permit the Secretary to purchase highly enriched uranium or 

weapons grade plutonium from any country and transport it to and 

store it in the United States. The Secretary would be encouraged 

to establish similar transactions between any nation and Russia for 

storage and blending highly enriched uranium. The provision 

would allow the Secretary to pay such nation’s transportation costs. 

Finally, the provision would provide that up to $40.0 million could 

be used to carry out the activities in this section. 

The House bill contained no similar provision. 

The House recedes with an amendment that would authorize 

the Secretary of Energy to pursue a program with the Russian Federation on options for blending highly enriched uranium to reduce 

the concentration of U–235 below 20 percent. These options would 

include expanding the Material Consolidation and Conversion program within DOE to include additional facilities in Russia for 

blending the highly enriched uranium and identifying more centralized secure storage facilities in Russia for the secure storage of 

792

materials awaiting blend down. The conferees note that both the 

additional blending facilities and centralized storage facilities must 

already have complete materials, protection, control and accounting 

upgrades before highly enriched uranium is blended down or stored 

at these facilities. The amendment also states that nothing in this 

program would impact the existing Highly Enriched Uranium Disposition Agreement between the United States and Russia and that 

the uranium blended down under this program would not be released for sale until the earlier date of either one of the following: 

(1) January 1, 2014; or (2) the date on which the Secretary certifies 

that such uranium can be absorbed into the global market without 

undue disruption to the uranium mining, conversion, and enrichment industry in the United States. Finally, the amendment would 

enable up to $10.0 million in fiscal year 2003 to be used for activities under this program. 

The conferees direct the Secretary of Energy to provide to the 

congressional defense committees, no later than July 1, 2003, a report on the status of the program with the Russian Federation on 

options for blending highly enriched uranium so that the concentration of U–235 is below 20 percent. The report should identify 

the scope of the program and the implementing costs, as well as 

describe the additional facilities that will participate in the expanded material consolidation and conversion effort. 

Strengthened international security for nuclear materials and security of nuclear operations (sec. 3158) 

The Senate amendment contained a provision (sec. 3159) that 

would require the Secretary of Energy to submit to Congress a report on options for an international program to develop strengthened security for all nuclear materials and safety and security for 

current nuclear operations. As part of the report, the Secretary 

would consult with the Nuclear Regulatory Commission, the Russian Federation, and the International Atomic Energy Agency. The 

report would be due 270 days after the date of enactment of this 

Act. The provision would also direct the Director of the Office of 

Nuclear Energy Science and Technology and the Secretary to pursue, with the Russian Ministry of Atomic Energy, joint programs 

on the development of proliferation-resistant nuclear energy technologies, including advanced fuel cycles. In addition, the provision 

would authorize the Secretary to provide assistance to nuclear facilities abroad on the interdiction of hostile insiders to prevent the 

disablement of these facilities’ vital operations. The provision 

would authorize the Secretary to carry out a joint program with the 

Russian Federation and other countries to address and mitigate 

damage from aircraft impacts on nuclear facilities overseas. Finally, the amendment would authorize the Secretary of Energy to 

expand and accelerate the programs of the Department of Energy 

to support the International Atomic Energy Agency in its efforts to 

strengthen international nuclear safety and security. Up to $35.0 

million would be available to carry out these programs in fiscal 

year 2003. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary of Energy to submit to Congress a report on options for 

793

an international program to develop strengthened security for nuclear reactors and associated materials. This report would be due 

270 days after enactment of this Act. In evaluating the options for 

an international program, the Secretary would be required to consult with the Nuclear Regulatory Commission and the International Atomic Energy Agency on the feasibility and advisability 

of actions to reduce the risks associated with terrorist attacks on 

nuclear reactors outside the United States. The provision would 

also direct the Secretary of Energy to pursue, with the Russian 

Ministry of Atomic Energy, joint programs on the development of 

proliferation-resistant nuclear energy technologies, including advanced fuel cycles. Up to $10.0 million would be available for implementing this joint program with Russia. Finally, the provision 

would authorize the Secretary to provide technical assistance to 

nuclear facilities abroad on the interdiction of hostile insiders at 

such facilities and efforts to prevent the disablement of vital systems at these facilities. 

Export control programs (sec. 3159) 

The Senate amendment contained a provision (sec. 3160) that 

would authorize the Secretary of Energy to pursue, in the former 

Soviet Union and regions of concern, principally in South Asia, the 

Middle East, and the Far East, options for accelerating programs 

that assist countries in such regions to improve their domestic export control programs for materials, technologies, and expertise relevant to the construction or use of a nuclear or radiological dispersal device. The amendment would authorize up to $5.0 million 

for this effort. 

The House bill contained no similar provision. 

The House recedes with a clarifying amendment that would 

authorize the Secretary of Energy, in coordination with the Secretary of State, to pursue, in the Former Soviet Union and other 

regions of concern, options for accelerating programs that assist 

countries in these regions to improve their domestic export control 

programs for materials, technologies, and expertise relevant to the 

construction or use of a nuclear or radiological dispersal device. Up 

to $5.0 million may be available for carrying out this effort in fiscal 

year 2003. 

Plan for accelerated return of weapons-usable nuclear material (Sec. 

3160) 

The Senate amendment contained a provision (sec. 3156) that 

would authorize the Secretary of Energy to expand the scope of the 

International Materials Protection, Control and Accounting 

(MPC&A) program to countries outside Russia and the independent 

states of the Former Soviet Union and require the Secretary to notify Congress 30 days after funds are obligated for these purposes. 

The provision would also: (1) authorize the Secretary to provide 

technical assistance to the Secretary of State to support his efforts 

to assist nuclear weapons states’ nuclear materials security programs; (2) require the Secretary to develop a plan to accelerate the 

conversion or return of weapons-usable nuclear materials to the 

country of origin; (3) establish within the MPC&A program a radiological dispersal device MPC&A program and require a feasibility 

794

study on such a program; and (4) provide a sense of Congress encouraging support of the Convention on Physical Protection of Nuclear Materials. The provision would authorize the Office of Defense Nuclear Nonproliferation in the National Nuclear Security 

Administration to use up to $5.0 million for these activities. 

The House bill contained no similar provision. 

The House recedes with an amendment that would require the 

Secretary of Energy to develop, with the Russian Federation, a 

plan to accelerate the return to Russia of all weapons-usable nuclear materials located in research reactors and other facilities outside Russia that were supplied by the Former Soviet Union. The 

plan should include the costs and schedules associated with assisting these research reactors and facilities in transferring highly enriched uranium to Russia and providing these facilities and research reactors with MPC&A upgrades until the weapons-usable 

nuclear materials are returned to Russia. 

Sense of Congress on amendment of Convention on Physical Protection of Nuclear Materials (sec. 3161) 

The Senate amendment contained a provision (sec. 3156) that 

would authorize the Secretary of Energy to expand the scope of the 

International Materials Protection, Control and Accounting 

(MPC&A) program to countries outside Russia and the independent 

states of the Former Soviet Union and require the Secretary to notify Congress 30 days after funds are obligated for these purposes. 

The provision would also: (1) authorize the Secretary to provide 

technical assistance to the Secretary of State to support his efforts 

to assist nuclear weapons states’ nuclear materials security programs; (2) require the Secretary to develop a plan to accelerate the 

conversion or return of weapons-usable nuclear materials to the 

country of origin; (3) establish within the MPC&A program a radiological dispersal device MPC&A program and require a feasibility 

study on such a program; and (4) provide a sense of Congress encouraging support of the Convention on Physical Protection of Nuclear Materials. The provision would authorize the Office of Defense Nuclear Nonproliferation in the National Nuclear Security 

Administration to use up to $5.0 million for these activities. 

The House bill contained no similar provision. 

The House recedes with an amendment that would set forth 

the sense of Congress that the President should encourage amendment of the Convention on the Physical Protection of Nuclear Materials to: (1) apply to both domestic and international use and 

transport of nuclear materials; (2) incorporate fundamental practices for the physical protection of these materials; and (3) address 

protection against sabotage involving nuclear materials. 

Sense of Congress on program to secure stockpiles of highly enriched 

uranium and plutonium (sec. 3162) 

The Senate amendment contained a provision (sec. 3157) that 

would contain a sense of Congress that the Secretary of Energy, in 

consultation with the Secretaries of State and Defense, develop a 

comprehensive program to encourage all countries with nuclear 

materials to adhere to or adopt International Atomic Energy Agency standards on The Physical Protection of Nuclear Material and 

795

Nuclear Facilities (INFCIRC/225/Rev.4) relating to the security of 

stockpiles of highly enriched uranium and plutonium. The amendment would also authorize the Secretary of Energy to carry out a 

program with the Russian Federation and any other nation with 

highly enriched uranium to pursue options for blending the uranium so that the uranium of U–235 is below 20 percent. As part 

of these options, the Department’s Material Consolidation and Conversion program would be expanded, and the Secretary of Energy 

could provide financial and other incentives to Russia for the consolidation of Russian highly enriched uranium located throughout 

the Russian Federation. The Secretary would be required to report 

to Congress no later than July 1, 2003, on the status of this program. The provision would also permit the Secretary to purchase 

highly enriched uranium or weapons grade plutonium from any 

country and transport it to and store it in the United States. Alternatively, the Secretary may encourage a similar transaction between any nation and Russia, and the Secretary would have the 

option to pay the nation’s costs to transport these nuclear materials 

to Russia as well as the blenddown costs. Finally, the provision 

would enable up to $40.0 million to be used to carry out the activities in this section. 

The House bill contained no similar provision. 

The House recedes with an amendment that would set forth 

the sense of Congress that the Secretary of Energy, in consultation 

with the Secretaries of State and Defense, develop a comprehensive 

program of activities to encourage all countries with nuclear materials to adhere to or adopt International Atomic Energy Agency 

standards on The Physical Protection of Nuclear Material and Nuclear Facilities (INFCIR/225/Rev.4) relating to the security of stockpiles of highly enriched uranium and plutonium. 

Subtitle D—Other Matters 

Indemnification of Department of Energy contractors (sec. 3171) 

The Senate amendment contained a provision (sec. 3171) that 

would amend section 170 d.(1)(A) of the Atomic Energy Act of 1954, 

42 U.S.C. 2210(d)(1)(A), by extending the authority of the Department of Energy to extend indemnification coverage to its contractors from August 1, 2002 to August 1, 2012. 

The House bill contained no similar provision. 

The House recedes with an amendment that would extend the 

authority to December 31, 2004. 

Support for public education in the vicinity of Los Alamos National 

Laboratory, New Mexico (sec. 3172) 

The Senate amendment contained a provision (sec. 3174) that 

would authorize $6.9 million to be paid by the Department of Energy (DOE) to the Los Alamos Education Foundation in fiscal year 

2003. The Foundation was established by section 3167(a) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 

105–85). The Foundation provides for educational support to students and schools in the Los Alamos area. 

The provision would also amend section 3136 of the National 

Defense Authorization Act for Fiscal Year 2002 (Public Law 107- 

796

107) to allow the National Nuclear Security Administration 

(NNSA) to extend the current contract with the Los Alamos Public 

Schools to provide for cost of living adjustments for the school 

teachers through fiscal year 2013. The current contract between 

the NNSA and the Los Alamos schools, pursuant to which this annual payment is made, expires at the end of fiscal year 2003. This 

amendment is necessary to allow the NNSA to include the annual 

payment in its fiscal year 2004 budget request and in subsequent 

years’ budget requests. 

The budget request for fiscal year 2003 for the NNSA includes 

$8.0 million for the Los Alamos Public Schools to offset the cost of 

living for school teachers teaching in the public schools. 

The House bill contained no similar provision. 

The House recedes with an amendment that would limit the 

duration of the contract extension to 2005 and that would direct 

the Secretary of Energy, in conjunction with the Administrator of 

the National Nuclear Security Administration, to look at alternatives to the annual authorization and appropriation process to 

obtain funds to offset the cost of living for school teachers in the 

Los Alamos Public Schools. While the conferees recognize the need 

for this payment as well as the high cost of living in Los Alamos, 

the conferees urge DOE to identify and fund a mechanism to bring 

this annual process to a close in a reasonable amount of time. In 

exploring options, the Secretary should look at a buy-out option in 

the form of several larger payments over a limited number of years 

that would shift these annual payments to the Los Alamos school 

system, to local government, or to some other local entity. 

Worker health and safety rules for Department of Energy nuclear facilities (sec. 3173) 

The Senate amendment contained a provision (sec. 3172) that 

would add a new section 234C, following 234B of the Atomic Energy Act of 1954 (42 U.S.C. 2282b). This new section would authorize the Secretary of Energy to assess civil penalties against Department of Energy (DOE) contractors who have entered into an agreement of indemnification under section 170d of the Atomic Energy 

Act of 1954, for violation of any regulation relating to industrial or 

construction health and safety promulgated by DOE. The provision 

would also direct the Secretary to promulgate industrial and construction health safety regulations that incorporate the provisions 

of DOE Order No. 440.1A (1998) no later than 270 days from the 

date of enactment of this Act. These regulations would go into effect one year after the date of promulgation of the regulations. The 

provision would cap any fines at $0.1 million per violation and 

would direct the Secretary to provide in the regulations a variance 

and exemption process for national security related work and at 

sites and facilities to be closed or transferred. The provision would 

cap total fines and penalties under 234A, 234B, and 234C, for nonprofit contractors so that the total fees assessed would not exceed 

the amount of the annual fee paid by DOE. Activities under the 

Naval Nuclear Propulsion Program would be excluded from the 

program. 

The House bill contained no similar provision. 

797

The House recedes with an amendment that would direct the 

Secretary to promulgate regulations for industrial and construction 

health and safety. The regulations promulgated would provide a 

level of protection for workers that is substantially equivalent to 

current levels of protection. The conferees note that the DOE contractors currently operate under DOE order 440.1A (1998) which 

provides an adequate level of safety. 

The Secretary would also be required to establish a mechanism 

to provide flexibility to implement the regulations. The regulations 

should establish a process that would allow sites to implement the 

regulations to account for unique site or mission circumstances or 

particular work environments and would include national security 

missions and requirements at closing facilities. In establishing a 

process for flexible implementation, the Secretary should ensure 

that there is no diminution of worker health and safety. 

The provision would direct the Secretary to assess either civil 

penalties or contract penalties, but not both, for any individual action and would prohibit the Secretary from assessing a penalty 

under both 234A and 234C for the same action. The maximum fine 

for each violation would be $70,000. 

Extension of authority to appoint certain scientific, engineering, and 

technical personnel (sec. 3174) 

The conferees agree to include a provision that would extend 

the current Department of Energy authority to appoint certain specific scientific engineering and technical personnel from September 

30, 2002 to September 30, 2004. 

One-year extension of panel to assess the reliability, safety, and security of the United States nuclear stockpile (sec. 3175) 

The House bill contained a provision (sec. 3141) that would extend the panel to assess the reliability, safety, and security of the 

United States nuclear stockpile through April 1, 2003. The Senate 

amendment contained no similar provision. 

The Senate recedes with an amendment that would direct the 

panel to use the extension to assess progress toward meeting the 

expectations set forth by the panel in previous reports. The panel 

would submit to the Committees on Armed Services of the Senate 

and the House of Representatives, by February 1, 2003, a report 

on the assessment, together with any recommendations for corrective legislative action where progress has been unsatisfactory. 

Report on status of environmental management initiatives to accelerate the reduction of environmental risks and challenges posed 

by the legacy of the Cold War (sec. 3176) 

The House bill contained a provision (sec. 3152) that would require the Secretary of Energy to prepare a report on the status of 

environmental initiatives being undertaken to accelerate cleanup 

and reduce environmental risks. The report should include a discussion of the progress of such initiatives. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

798

Subtitle E—Disposition of Weapons-Usable Plutonium at Savannah 

River, South Carolina 

Findings (sec. 3181) 

The Senate amendment contained a provision (sec. 3181) that 

would set forth a series of findings with respect to the September 

2000 agreement between the Russian Federation and the United 

States to manage and dispose of 34 tons of excess weapons grade 

plutonium. 

The House bill contained no similar provision. 

The House recedes. 

Disposition of weapons-usable plutonium at Savannah River Site 

(sec. 3182) 

The Senate amendment contained a provision (sec. 3182) that 

would direct the Secretary of Energy to submit, by February 1, 

2003, a plan to Congress for the construction and operation of a 

Mixed Oxide (MOX) plutonium facility at the Savannah River Site. 

The plan would include a schedule for construction and operations 

to achieve by January 1, 2009, and thereafter, the MOX production 

objective, to ensure that one ton of MOX fuel has been produced 

by December 31, 2009, and that all 34 metric tons of defense plutonium and defense plutonium materials at the Savannah River Site 

would have to be processed into MOX fuel by January 1, 2019. If 

in any year the Secretary of Energy does not comply with the plan 

and the schedule, the Secretary would have to make economic assistance payments to the State of South Carolina at the rate of $1.0 

million per day but not to exceed $100.0 million in any year. This 

payment would be subject to authorization and appropriation. 

At various stages in the process, if the Secretary of Energy is 

not in compliance with the plan or any subsequent corrective action 

plans, the Secretary would also have to remove all or part of the 

defense plutonium materials that had been shipped to the Savannah River Site in South Carolina. 

If an injunction is obtained by the State of South Carolina that 

would prevent the Department of Energy from taking actions necessary to meet the deadlines of the provision, any such deadlines 

would be extended for the period of time during which the courtordered injunction is in effect. 

The provision would also require that if any MOX fuel remains 

at the MOX facility one year after the MOX facility ceases operation, the Secretary must submit to Congress a report detailing 

when such fuel would be transferred for use in commercial nuclear 

reactors or a plan for its removal from the State of South Carolina. 

The House bill contained no similar provision. 

The House recedes with an amendment providing that any requirement to pay economic assistance payments to the State of 

South Carolina may be made from any funds available to the Secretary without the requirement for further authorizations or appropriations for such payments and an additional MOX processing requirement for the period between 2011 and 2017. 

799

Study of facilities for storage of plutonium and plutonium materials 

at Savannah River Site (sec. 3183) 

The Senate amendment contained a provision (sec. 3183) that 

would require the Defense Nuclear Facilities Safety Board 

(DNFSB) to conduct a study of the adequacy of the K-Area Materials Storage (KAMS) facility and related facilities for the storage 

of defense plutonium materials in connection with the Department 

of Energy plutonium disposition program. The DNFSB would be required to complete the study and submit a report on the study to 

Congress within one year of the date of enactment of this Act. The 

DNFSB should include in the report any proposals to improve the 

safety, reliability, or functionality of the KAMS facility. Not later 

than six months after the report is submitted, the DNFSB and the 

Secretary of Energy shall each submit a report on the actions taken 

in response to the proposals, if any. 

The House bill contained no similar provision. 

The House recedes with a technical amendment. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Availability of funds for environmental management cleanup reform 

The Senate amendment contained a provision (sec. 3131) that 

would require the Secretary of Energy to establish and publish selection criteria for the environmental management cleanup reform 

account. The provision would also provide the Secretary of Energy 

authority to dissolve the account, in the event the Secretary opts 

not to establish selection criteria, and redistribute the funds in the 

account to the sites and projects on a pro rata basis according to 

fiscal year 2002 funding levels. In addition, the provision would require the Secretary to submit to the congressional defense committees a list of the activities at each site that would be funded by this 

account 30 days before such funds were obligated or expended. 

The House bill contained no similar provision. 

The Senate recedes. 

The Department of Energy (DOE) budget request for fiscal 

year 2003 included $800.0 million for a new initiative, the environmental cleanup reform account. An amended budget request sought 

an additional $300.0 million for a total request of $1.1 billion. According to the DOE budget justification material, the purpose of 

the new account is ‘‘to enable the Department, the States, and the 

American taxpayer to begin realizing the benefits immediately of 

alternative cleanup approaches that will produce more real risk reduction, accelerate cleanup, or achieve much needed cost and 

schedule improvements.’’

DOE has signed letters of intent, for all but $2.0 million of the 

$1.1 billion in the cleanup reform account, in the absence of any 

authorization or appropriation of funds for the reform account. 

While the conferees support the idea of DOE, the States, and the 

EPA reviewing the various cleanup agreements to ensure that the 

cleanup at each site is being conducted as efficiently as possible, 

the conferees note that DOE has not demonstrated how creation of 

the reform account will accomplish the goal set forth in the fiscal 

year 2003 budget justification material. 

800

The conferees note section 3176 of this Act would require the 

Secretary of Energy to provide a report on the progress being made 

to streamline the cleanup process, reduce environmental risks 

quickly, and to provide an assessment of the progress being made 

to improve the responsiveness and effectiveness of the environmental management program. The conferees expect DOE to provide 

in the report evidence that this accelerated cleanup program will 

result in real risk reduction and much needed cost and schedule 

improvements. This report is due with the submission of the fiscal 

year 2004 budget request for DOE. 

Disposition of plutonium in Russia 

The Senate amendment contained a provision (sec. 3158) that 

would encourage the Secretary of Energy to continue to support the 

Secretary of State in negotiations with the Ministry of Atomic Energy of the Russia Federation to finalize the terms of the Russian 

plutonium disposition program. As part of this support, the Secretary of Energy would be authorized to consider using financial incentives to reach a successful agreement with the Ministry of 

Atomic Energy. The amendment also identifies various elements 

that would be required as part of the Russian plutonium disposition program including: (1) transparent, verifiable steps; (2) proceeding at approximately the equivalent rate of the United States 

program for the disposition of plutonium; (3) cost-sharing among 

various countries; (4) contributions by the Russian Federation; (5) 

steps to confirm with high confidence that the disposition of plutonium of the Russian Federation will be achieved; and (6) possible 

research on more speculative, long-term options for the future disposition of additional Russian plutonium. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees note that while the Russian plutonium disposition program is one of the most critical nonproliferation programs 

underway between the United States and the Russian Federation, 

the conferees remain concerned with the slow pace of the Russian 

program. The conferees believe it is imperative that the Secretary 

of State work as assiduously as possible to conclude negotiations 

with the Russian Federation as quickly as possible. The conferees 

believe, however, that any negotiation should include transparent 

and verifiable steps to enable the United States to have the necessary assurances that the schedule for the disposition of plutonium will be achieved. 

The conferees feel strongly that the program must have costsharing arrangements among participating countries and the Russian Federation. 

In addition, the conferees believe that the U.S. and Russian 

programs should proceed at a rate that is generally equivalent to 

one another. Unfortunately, however, the United States program is 

lagging behind the Russian lead test assembly program. The conferees note that pushing forward with the U.S. lead test assembly 

effort will enable the U.S. plutonium disposition program to reach 

an essential milestone that is important for the success of both the 

U.S. plutonium disposition program and the Russian disposition 

plutonium program. 

801

Finally, the conferees direct the Secretary of Energy to conduct 

research on more speculative, long-term options for the future disposition of the plutonium of the Russian Federation. 

Improvements to nuclear materials protection, control, and accounting program of the Russian Federation 

The Senate amendment contained a provision (sec. 3161) that 

would direct the Secretary of Energy to work with the Ministry of 

Atomic Energy of the Russian Federation to update and improve 

the Joint Action Plan for the Materials Protection, Control, and Accounting Program to focus on achieving, as soon as practicable, but 

no later than January 1, 2012, a sustainable nuclear materials protection, control, and accounting system for the nuclear materials of 

the Russian Federation. The amendment would require the Secretary to work with the Russian Federation to accelerate nuclear 

materials protection, control and accounting programs at Russian 

defense nuclear facilities and to identify various transparency alternatives to assure the United States that the program is meeting 

the goals for improved nuclear materials protection, control, and 

accounting. The provision would also set forth the sense of Congress that the Secretary should enhance its partnership with Russia to increase the pace and effectiveness of the nuclear materials 

protection, control, and accounting program and identify the assistance, Russian contribution, and transparency milestones used to 

assess progress in this program. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees agree to consolidate all matters dealing with materials protection, control, and accounting in one provision. 

One-year extension of authority of Department of Energy to pay voluntary separation incentive payments 

The Senate amendment contained a provision (sec. 3173) that 

would amend section 3161(a) of the National Defense Authorization 

Act for Fiscal Year 2000 (Public Law 106–65) to provide a one-year 

extension of the Department of Energy (DOE) authority to make 

voluntary separation incentive payments. The committee is aware 

that DOE would like to extend the ability to encourage voluntary 

separations and avoid any future need to conduct a reduction in 

force. This provision would allow DOE to do long-term planning for 

reductions as a result of future reorganizations. 

The House bill contained no similar provision.

The Senate recedes. 

Prohibition on development of low-yield nuclear weapon 

The House bill contained a provision (sec. 3146) that would repeal section 3136 of the National Defense Authorization Act for 

Fiscal Year 1994 (42 U.S.C. 2121 note) and would prohibit the Secretary of Energy from conducting development which could lead to 

the production of a low-yield nuclear weapon. 

The Senate amendment contained no similar provision. 

The House recedes. 

The conferees recognize the importance of exercising the nuclear weapon design process in order to maintain skills and capaVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00825 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
802

bilities critical to national security. The conferees further understand that many of the Nation’s weapon designers with actual test 

experience have retired or will soon be eligible for retirement. The 

conferees believe the National Nuclear Security Administration 

must move aggressively to transfer skills to the next generation. 

Requirement for authorization by law for funds obligated or expended for Department of Energy national security activities 

The Senate amendment contained a provision (sec. 3135) that 

would amend section 660 of the Department of Energy Organization Act, 42 U.S.C. 7270, to add a new subsection that would require a specific authorization for national security programs and 

activities at the Department of Energy (DOE) before funds may be 

obligated or expended. 

The House bill contained no similar provision. 

The Senate recedes. 

The conferees agree that section 660 of the Department of Energy Organization Act applies to all programs and funds at the Department of Energy and that this section established the requirement for an authorization of appropriations for all programs and 

activities at DOE as a condition of the obligation and expenditure 

of funds. As a result, the Senate provision, which applied to national security activities, is not needed because national security 

activities and programs are already included in the scope of section 

660. 

Utilization of Department of Energy national laboratories and sites 

in support of counterterrorism and homeland security activities 

The Senate amendment contained a provision (sec. 3163) that 

would authorize the Department of Energy (DOE) to enter into 

joint sponsorship agreements at DOE laboratories with state, local, 

or other federal agencies and establish the parameters under which 

the joint partnership agreements would operate. 

The House bill contained no similar provision. 

The Senate recedes.

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD

LEGISLATIVE PROVISIONS ADOPTED

Authorization (sec. 3201) 

The House bill contained a provision (sec. 3201) that would au- thorize $19.0 million for the Defense Nuclear Facilities Safety 

Board. 

The Senate amendment contained a similar provision (sec. 3201) that would authorize $19.5 million. 

The Senate recedes. 

LEGISLATIVE PROVISIONS NOT ADOPTED

Authorization of appropriations for the formerly used sites remedial 

action program of the Corps of Engineers 

The Senate amendment contained a provision (sec. 3202) that 

would authorize $140.0 million for fiscal year 2003 for the Department of the Army. 

803

The House bill contained no similar provision. 

The Senate recedes. 

The conferees agree to include these funds without specific authorization. 

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE

LEGISLATIVE PROVISIONS ADOPTED

Authorized uses of National Defense Stockpile funds (sec. 3301) 

The House bill contained a provision (sec. 3301) that would authorize $76.4 billion for the National Defense Stockpile. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

TITLE XXXIV—NAVAL PETROLEUM RESERVES

LEGISLATIVE PROVISIONS ADOPTED

Authorization of appropriations (sec. 3401) 

The House bill contained a provision (sec. 3401) that would authorize $21.1 million for the Secretary of Energy for activities relating to the naval petroleum reserves. 

The Senate amendment contained no similar provision. 

The Senate recedes.

TITLE XXXV—MARITIME ADMINISTRATION

LEGISLATIVE PROVISIONS ADOPTED

Authorization of appropriations for fiscal year 2003 (sec. 3501) 

The House bill contained a provision (sec. 3501) that would authorize appropriations for the Maritime Administration. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Authority to convey vessel USS SPHINX (ARL–24) (sec. 3502) 

The House bill contained a provision (sec. 3502) that would authorize the Secretary of Transportation to convey an obsolete vessel 

to a nonprofit organization for display as a military museum. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would clarify 

terms under which the vessel could be transferred. 

Independent analysis of title XI insurance guarantee applications 

(sec. 3503) 

The House bill contained a provision (sec. 3504) that would 

amend the Merchant Marine Act, 1936 to permit the Secretary of 

Transportation to obtain an independent analysis of an application 

for a title XI loan guarantee. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

804

Preparation as artificial reefs and scrapping of obsolete vessels (sec. 

3504) 

The House bill contained a provision (sec. 3503) that would authorize the Secretary of Transportation to provide financial assistance to States to help them prepare obsolete vessels transferred 

from the National Defense Reserve Fleet for use as artificial reefs. 

The Senate amendment contained no similar provision. 

The Senate recedes with an amendment that would: (1) require 

the Secretary and the Administrator of the Environmental Protection Agency to jointly develop environmental best management 

practices to be used in the preparation of vessels for use as artificial reefs; (2) require the establishment of one or more pilot programs to explore the feasibility and advisability of various alternatives for exporting obsolete vessels in the National Defense Reserve Fleet for purposes of the dismantlement and recycling of such 

vessels; and (3) clarify that the section does not establish a preference for the reefing or export of obsolete vessels in the National 

Defense Reserve Fleet over other disposal alternatives (such as domestic scrapping) available to the Secretary under existing law. 

The pilot programs established pursuant to this section would be 

authorized to include a total of no more than four vessels. The conferees intend that the Secretary of Transportation would have the 

discretion to choose which vessels to include in the pilot programs. 

TITLE XXXVI—ATOMIC ENERGY DEFENSE PROVISIONS

Short title (sec. 3601) 

The House bill contained a provision (sec. 3120) that would set 

out the title of the Department of Energy National Security Authorizations General Provisions Act and define terms to be used in 

the Act. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment that would establish the name of the act as the Atomic Energy Defense Act. 

Permanent provisions of law affecting the Department of Defense are included in title 10, United States Code. Several acts, 

such as the Department of Energy Organization Act Public Law 

95–91, and the Atomic Energy Act of 1954, Public Law 83–703, provide various overarching legal authorities for the Department of 

Energy (DOE), but there is no act or even a single title or chapter 

in the United States Code where all permanent provisions of law 

governing the national security functions of the Department of Energy can be found. 

Over the years, as the number of provisions has grown, researching the various provisions that are included in annual defense authorization acts has become increasingly difficult. The conferees believe the time has come to enact a law that will be a comprehensive collection of the various permanent authorities that govern the national security activities of DOE. The goal is to have a 

single place in the United States Code where these provision could 

be easily and quickly referenced. 

The provisions described in sections 3601 and 3620–3631 will 

constitute the first sections of title B of the Atomic Energy Defense 

Act, the DOE National Security Authorizations General Provisions. 

805

Over the next several fiscal years, the conferees, working with 

DOE, hope to reenact various provisions of current law as sections 

of this new act. In addition, as future provisions are enacted, the 

conferees anticipate that such new provisions would also be included in the new act. The conferees believe this effort to organize 

and co-locate the various provisions will simplify efforts to identify 

various statutory authorities that govern DOE. 

LEGISLATIVE PROVISIONS ADOPTED

Subtitle A—[Reserved] 

Subtitle B—Department of Energy National Security Authorization 

General Provisions 

Definitions (sec. 3620) 

The House bill contained a provision (sec. 3120) that would set 

out the title of the Department of Energy National Security Authorizations General Provisions Act and define terms to be used in 

the Act. 

The Senate amendment contained no similar provision. 

The Senate recedes with a technical amendment. 

Reprogramming (sec. 3621) 

The House bill contained a provision (sec. 3121) that would 

prohibit the reprogramming of funds in excess of the amounts authorized for national security programs until the Secretary of Energy has notified the congressional defense committees and a period of 30 days has elapsed after the date on which the notification 

is received. 

The Senate amendment contained a similar provision (sec. 

3121) that would prohibit the reprogramming of funds in excess of 

115 percent of the amount authorized for the program or in excess 

of $5.0 million above the amount authorized for the program, 

whichever is less, until the Secretary of Energy submits a report 

to the congressional defense committees and a period of 30 days 

has elapsed after the date on which the report is received. 

The House recedes with an amendment that would make the 

provision part of Subtitle B, the Department of Energy National 

Security Authorizations General Provisions, of the Atomic Energy 

Defense Act. 

Minor construction projects (sec. 3622) 

The House bill contained a provision (sec. 3122) that would 

provide the Secretary of Energy with authority to conduct minor 

construction projects using funds authorized to the Secretary pursuant to a Department of Energy national security authorization. 

If at any time during the period of construction of any minor construction project, the most current estimated cost exceeds the 

minor construction threshold, the Secretary would be required to 

notify the congressional defense committees and provide a report 

explaining the reasons for the cost variation. 

The Senate amendment contained a similar provision. 

The Senate recedes.

806

Limits on construction projects (sec. 3623) 

The House bill contained a provision (sec. 3123) that would 

permit any construction project to be initiated and continued only 

if the estimated cost for the project does not exceed, by 25 percent, 

the higher of either the amount authorized for the project or the 

most recent total estimated cost presented to Congress as justification for such a project. The Secretary of Energy would be prohibited from exceeding such limits until 30 legislative days after the 

Secretary submits to the congressional defense committees a detailed report setting forth the reasons for the increase. This provision would also specify that the 25 percent limitation would not 

apply to projects estimated to be a minor construction project under 

$5.0 million. 

The Senate amendment contained a similar provision. 

The Senate recedes. 

Fund transfer authority (sec. 3624) 

The House bill contained a provision (sec. 3124) that would 

permit funds authorized for the Department of Energy to be transferred to other agencies of the government for performance of work 

for which the funds were authorized and appropriated. The provision would permit the merger of such transferred funds with the 

authorizations of the agency to which they are transferred. The 

provision would also limit, to no more than five percent of the account, the amount of funds authorized by this Act that may be 

transferred between authorization accounts within the Department 

of Energy. 

The Senate amendment contained a similar provision. 

The Senate recedes. 

Conceptual and construction design (sec. 3625) 

The House bill contained a provision (sec. 3125) that would 

limit the Secretary of Energy’s authority to request construction 

funding until the Secretary has completed a conceptual design. 

This limitation would apply to construction projects with a total estimated cost greater than $5.0 million. If the estimated cost to prepare the construction design exceeds $600,000, the provision would 

require the Secretary to obtain a specific authorization to obligate 

such funds. If the estimated cost to prepare a conceptual design exceeds $3.0 million, the provision would require the Secretary to request funds for the conceptual design before requesting funds for 

construction. The provision would further require the Secretary to 

submit to Congress a report on each conceptual design completed 

under this provision. The provision would also provide an exception 

to these requirements in the case of an emergency. 

The Senate amendment contained a similar provision. 

The Senate recedes. 

Authority for emergency planning, design, and construction activities (sec. 3626) 

The House bill contained a provision (sec. 3126) that would 

permit the Secretary of Energy to perform planning and design 

with any funds available to the Department of Energy (DOE) pursuant to a DOE national security authorization including those 

807

funds authorized for advance planning and construction design, 

whenever the Secretary determines such activities must proceed 

expeditiously to protect the public health and safety, to meet the 

needs of national defense, or to protect property. The provision 

would require the Secretary of Energy to submit to Congress a report on each construction project to be completed under this provision prior to exercising the authority that would be provided by 

this provision. 

The Senate amendment contained a similar provision. 

The Senate recedes. 

Scope of authority to carry out plant projects (sec. 3627) 

The House bill contained a provision (sec. 3131) that would 

clarify that the authority of the Secretary of Energy to carry out 

plant projects includes authority for maintenance, restoration, 

planning, construction, acquisition, modification of facilities, and 

continuation of projects authorized in prior years, and related 

projects. 

The Senate amendment contained no similar provision. 

The Senate recedes. 

Availability of funds (sec. 3628) 

The Senate amendment contained a provision (sec. 3128) that 

would authorize amounts appropriated for operating expenses or 

for plant and capital equipment for the Department of Energy 

(DOE) to remain available until expended. Program direction funds 

would remain available for expenditure until the end of fiscal year 

2004. 

The House bill contained a similar provision (sec. 3128) that 

would provide that funds authorized to be appropriated to the National Nuclear Security Administration are available for expenditure for two years with the exception of the funds for the Office of 

the Administrator, which would be available for expenditure for 

one year.

The House recedes with a technical amendment that would 

provide that funds available to DOE pursuant to a national security authorization for program direction are available for obligation 

for one year—until the end of the fiscal year for which they are authorized. In addition, this provision would become a section in Subtitle B, the Department of Energy National Security Authorizations 

General Provisions Act, of the Atomic Energy Defense Act. 

Transfer of defense environmental management funds (sec. 3629) 

The House bill contained a provision (sec. 3129) that would direct the Secretary of Energy to provide the manager of each field 

office of the Department of Energy with the authority to transfer 

defense environmental management activities funds from a program or project under the jurisdiction of that office to another such 

program or project. With certain limitations, only one transfer may 

be made to or from any program in one fiscal year, and no transfer 

may exceed $5.0 million. The Secretary of Energy would be required to notify Congress within 30 days after any such transfer. 

The Senate amendment contained a similar provision (sec. 

3129) that would have provided three transfers per year. 

808

The Senate recedes. 

Transfer of weapons activities funds (sec. 3630) 

The House bill contained a provision (sec. 3130) that would direct the Secretary of Energy to provide the manager of each field 

office of the Department of Energy with the authority to transfer 

weapons activities funds from a program or project under the jurisdiction of that office to another such program or project. With certain limitations only one transfer may be made to or from any program in one fiscal year, and no transfer may exceed $5.0 million. 

The Secretary of Energy would be required to notify Congress within 30 days after any such transfer. 

The Senate amendment contained a similar provision (sec. 

3130) that would have provided three transfers per year. 

The Senate recedes. 

Funds available for all national security programs of the Department of Energy (sec. 3631) 

The House bill contained a provision (sec. 3127) that would authorize, subject to section 3121 of the Department of Energy National Security Authorizations General Provisions Act and appropriations acts, amounts appropriated for management and support 

activities and for general plant projects to be made available for 

use in connection with all national security programs of the Department of Energy. 

The Senate amendment contained a similar provision. 

The Senate recedes.

From the Committee on Armed Services, for consideration 

of the House amendment and the Senate amendment, and 

modifications committed to conference: 

BOB STUMP, DUNCAN HUNTER, JAMES V. HANSEN, CURT WELDON, JOEL HEFLEY, JIM SAXTON, JOHN M. MCHUGH, TERRY EVERETT, HOWARD P. ‘‘BUCK’’ MCKEON, J.C. WATTS, Jr., 

MAC THORNBERRY, JOHN N. HOSTETTLER, SAXBY CHAMBLISS, 

WALTER B. JONES, 

VAN HILLEARY, 

LINDSEY GRAHAM, 

IKE SKELTON, 

JOHN M. SPRATT, Jr., 

SOLOMON P. ORTIZ, LANE EVANS, MARTIN T. MEEHAN, 

ROBERT A. UNDERWOOD, THOMAS ALLEN, 

SILVESTRE REYES, 

809

JIM TURNER, ELLEN O. TAUSCHER, From the Permanent Select Committee on Intelligence, for 

consideration of matters within the jurisdiction of that 

committee under clause 11 of rule X: 

PORTER J. GOSS, DOUG BEREUTER, From the Committee on Education and the Workforce, for 

consideration of secs. 341–343, and 366 of the House 

amendment, and secs. 331–333, 542, 656, 1064, and 1107 

of the Senate amendment, and modifications committed to 

conference: 

JOHNNY ISAKSON, JOE WILSON, GEORGE MILLER, From the Committee on Government Reform, for consideration of secs. 323, 804, 805, 1003, 1004, 1101–1106, 2811, 

and 2813 of the House amendment, and secs, 241, 654, 

817, 907, 1007–1009, 1061, 1101–1106, 2811, and 3173 of 

the Senate amendment, and modifications committed to 

conference: 

DAN BURTON, DAVE WELDON, From the Committee on International Relations, for consideration of secs. 1201, 1202, 1204, title XIII, and sec. 

3142 of the House amendment, and subtitle A of title XII, 

secs. 1212–1216, 3136, 3151, and 3156–3161 of the Senate 

amendment, and modifications committed to conference: 

HENRY HYDE, BENJAMIN A. GILMAN, From the Committee on the Judiciary, for consideration of 

secs. 811 and 1033 of the House amendment, and secs. 

1067 and 1070 of the Senate amendment, and modifications committed to conference: 

LAMAR SMITH, From the Committee on Resources, for consideration of 

secs. 311, 312, 601, title XIV, secs. 2821, 2832, 2841, and 

2863 of the House amendment, and secs. 601, 2821, 2823, 

2828, and 2841 of the Senate amendment, and modifications committed to conference: 

JOHN J. DUNCAN, Jr., 

From the Committee on Science, for consideration of secs. 

244, 246, 1216, 3155, 3163 of the Senate amendment, and 

modifications committed to conference: 

SHERWOOD L. BOEHLERT, 

NICK SMITH, 

RALPH M. HALL,

From the Committee on Small Business for consideration 

of secs. 243, 824, and 829 of the Senate amendment and 

modifications committed to conference: 

DONALD A. MANZULLO, 

SUE KELLY, From the Committee on Transportation and Infrastructure, for consideration of sec. 601 of the House amendVerDate 0ct 31 2002 00:36 Nov 17, 2002 Jkt 082705 PO 00000 Frm 00833 Fmt 6601 Sfmt 6601 E:\HR\OC\HR772.XXX HR772
810

ment, and secs. 601 and 1063 of the Senate amendment, 

and modifications committed to conference: 

DON YOUNG, FRANK A. LOBIONDO, CORRINE BROWN, From the Committee on Veterans’ Affairs, for consideration of secs. 641, 651, 721, 723, 724, 726, 727, and 728 

of the House amendment, and secs. 541 and 641 of the 

Senate amendment, and modifications committed to conference: 

CHRIS SMITH, Managers on the Part of the House.

CARL LEVIN, 

TED KENNEDY, 

ROBERT C. BYRD, 

JOSEPH I. LIEBERMAN, 

MAX CLELAND, 

MARY L. LANDRIEU, 

JACK REED, 

DANIEL K. AKAKA, 

BILL NELSON, 

BEN NELSON, 

JEAN CARNAHAN, 

MARK DAYTON, 

JEFF BINGAMAN, 

JOHN W. WARNER, 

STROM THURMOND, 

JOHN MCCAIN, 

JAMES M. INHOFE, 

PAT ROBERTS, 

JEFF SESSIONS, 

SUSAN COLLINS, 

JIM BUNNING, 

Managers on the Part of the Senate.

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