II

Calendar No. 481

103D CONGRESS

2D SESSION S. 2211

To authorize appropriations for fiscal year 1995 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; to revise and streamline

the acquisition laws of the Federal Government; and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 20 (legislative day, JUNE 7), 1994

Mr. NUNN, from the Committee on Armed Services, reported the following

original bill; which was read twice and placed on the calendar

A BILL

To authorize appropriations for fiscal year 1995 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; to revise and

streamline the acquisition laws of the Federal Government; and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Omnibus National De3 fense Authorization Act for Fiscal Year 1995’’.

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

5 CONTENTS.

6 (a) DIVISIONS.—This Act is organized into three divi7 sions as follows:

8 (1) Division A—Department of Defense Au9 thorizations.

10 (2) Division B—Military Construction Author11 izations.

12 (3) Division C—Department of Energy Na13 tional Security Authorizations and Other Authoriza14 tions.

15 (4) Division D—Federal Acquisition Streamlin16 ing.

17 (b) TABLE OF CONTENTS.—The table of contents for

18 this Act is as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 3. Congressional defense committees defined.

Sec. 4. General limitation.

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. Reserve components.
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Sec. 106. Chemical demilitarization program.

Subtitle B—Army Programs

Sec. 111. Multiyear procurement authority for M1A2 tank upgrades.

Sec. 112. Transfer of replacement Army tank to Marine Corps Reserve.

Sec. 113. Replacement surveillance system for Korea.

Sec. 114. Small arms industrial base.

Subtitle C—Navy Programs

Sec. 121. Nuclear aircraft carrier program.

Subtitle D—Air Force Programs

Sec. 131. Settlement of claims under the C–17 aircraft program.

Subtitle E—Other Matters

Sec. 141. Preserving the bomber industrial base.

Sec. 142. Dual-use electric and hybrid vehicles.

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND

EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic research and exploratory development.

Sec. 203. Strategic environmental research and development program.

Subtitle B—Programs Requirements, Restrictions, and

Limitations

Sec. 211. Tactical antisatellite technologies program.

Sec. 212. Transfer of MILSTAR communications satellite program.

Sec. 213. Transfer of funds for single-stage to orbit rocket.

Sec. 214. Limitation on dismantlement of intercontinental ballistic missiles.

Sec. 215. Limitation on obligation of funds for seismic monitoring research.

Sec. 216. Federally funded research and development centers.

Subtitle C—Missile Defense Programs

Sec. 221. Compliance of ballistic missile defense systems and components with

ABM treaty.

Sec. 222. Revisions to the Missile Defense Act of 1991.

Sec. 223. Limitation.

Subtitle D—Defense Conversion, Reinvestment, and Transition

Assistance Matters

Sec. 231. Funding of defense technology reinvestment programs for fiscal year

1995.

Sec. 232. Financial commitment requirements for small business concerns for

participation in technology reinvestment projects.

Sec. 233. Conditions on funding of defense technology reinvestment projects.

Sec. 234. Federal defense laboratory diversification and Navy reinvestment in

the technology and industrial base.
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Subtitle E—Other Matters

Sec. 241. Cooperative research and development agreements with NATO organizations.

Sec. 242. Defense women’s health research program.

Sec. 243. Requirement for submission of annual report of the Semiconductor

Technology Council to Congress.

Sec. 244. Report on oceanographic survey and research requirements to support

littoral warfare.

Sec. 245. LANSCE/LAMPF upgrades.

Sec. 246. Live-fire survivability testing of F–22 aircraft.

Sec. 247. University Research Initiative support program.

Sec. 248. Manufacturing science and technology program.

Sec. 249. Defense experimental program to stimulate competitive research.

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 funding.

Sec. 304. National Security Education Trust Fund obligations.

Sec. 305. Transfer from National Defense Stockpile Transaction Fund.

Sec. 306. Support for the 1995 Special Olympics World Games.

Subtitle B—Defense Business Operations Fund

Sec. 311. Permanent authority for use of fund for managing working capital

funds and certain activities.

Sec. 312. Implementation of improvement plan.

Sec. 313. Limitation on obligations against the capital asset fund.

Sec. 314. Limitation on obligations against the supply management divisions.

Subtitle C—Environmental Matters

Sec. 321. Prohibition on the purchase of surety bonds and other guarantees for

the Department of Defense.

Sec. 322. Extension of prohibition on use of environmental restoration funds

for payment of fines and penalties.

Sec. 323. Participation of Indian tribes in agreements for defense environmental restoration.

Subtitle D—Matters Relating to Department of Defense

Civilian Employees

Sec. 331. Extension of certain transition assistance authorities.

Sec. 332. Extension and expansion of authority to conduct personnel demonstration projects.

Sec. 333. Limitation on payment of severance pay to certain employees transferring to employment positions in nonappropriated fund instrumentalities.

Sec. 334. Retirement credit for certain service in nonappropriated fund instrumentalities before January 1, 1987.

Sec. 335. Travel, transportation, and relocation expenses of employees transferring to the United States Postal Service.
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Sec. 336. Foreign employees covered by the Foreign National Employees Separation Pay Account.

Sec. 337. Increased authority to accept voluntary services.

Subtitle E—Other Matters

Sec. 341. Change of source for performance of depot-level workloads.

Sec. 342. Civil Air Patrol.

Sec. 343. Armed Forces Retirement Home.

Sec. 344. Clarification of authority to provide medical transportation under National Guard pilot program.

Sec. 345. ARMS Initiative loan guarantee program.

Sec. 346. Reauthorization of Department of Defense domestic elementary and

secondary schools for dependents.

Sec. 347. Assistance to local educational agencies that benefit dependents of

members of the Armed Forces and Department of Defense civilian employees.

Sec. 348. Disposition of proceeds from operation of the Naval Academy laundry.

Sec. 349. Repeal of annual limitation on expenditures for emergency and extraordinary expenses of the Department of Defense Inspector

General.

Sec. 350. Extension of authority for program to commemorate World War II.

Sec. 351. Extension of authority for aviation depots and naval shipyards to engage in defense-related production and services.

Sec. 352. Transfer of certain excess Department of Defense property to educational institutions and training schools.

Sec. 353. Ships’ stores.

Sec. 354. Humanitarian program for clearing landmines.

Sec. 355. Assistance to Red Cross for emergency communications services for

members of the Armed Forces and their families.

Sec. 356. Maritime prepositioning ship enhancement.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Extension of temporary variation of end strength limitations for Marine Corps majors and lieutenant colonels.

Sec. 403. Retention of authorized strength of general officers on active duty in

the Marine Corps for fiscal years after fiscal year 1995.

Sec. 404. Exception to limitation on number of general officers and flag officers

serving on active duty.

Sec. 405. Temporary exclusion of Superintendent of Naval Academy from

counting toward number of senior admirals authorized to be on

active duty.

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.

Subtitle C—Military Training Student Loads

Sec. 421. Authorization of training student loads.
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Subtitle D—Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

Subtitle E—Other Matters

Sec. 441. Repeal of required reduction in recruiting personnel.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

Sec. 501. Service on successive selection boards.

Sec. 502. Promotion and other career management matters relating to warrant

officers on active-duty lists.

Sec. 503. Enlistment or retirement of Navy and Marine Corps limited duty officers having twice failed of selection for promotion.

Sec. 504. Educational requirements for appointment in reserve components in

grades above first lieutenant or lieutenant (junior grade).

Sec. 505. Limited exception from baccalaureate degree requirement for Alaska

scout officers.

Subtitle B—Reserve Component Matters

Sec. 511. Review of opportunities for ordering individual reserves to active duty

with consent.

Sec. 512. Increased period of active duty service for Selected Reserve forces

mobilized other than during war or national emergency.

Sec. 513. Repeal of obsolete provisions pertaining to transfer of regular enlisted

members to reserve components.

Subtitle C—Other Matters

Sec. 521. Review of certain dismissals from the United States Military Academy.

TITLE VI—COMPENSATION AND OTHER PERSONNEL

BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1995.

Subtitle B—Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.

Sec. 612. Extension and modification of certain bonuses and special pay for

nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. Extension of authority relating to payment of other bonuses and special pays.

Subtitle C—Travel and Transportation Allowances

Sec. 621. Responsibility for preparation of transportation mileage tables.

Subtitle D—Retired Pay and Survivor Benefits

Sec. 631. Clarification of calculation of retired pay for officers who retire in a

grade lower than the grade held at retirement.
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Sec. 632. Crediting of reserve service of enlisted members for computation of

retired pay.

Sec. 633. Forfeiture of annuity or retired pay of members convicted of espionage.

Subtitle E—Defense Conversion, Reinvestment, and Transition

Assistance Matters

Sec. 641. Eligibility of members retired under temporary special retirement authority for Servicemen’s Group Life Insurance.

Sec. 642. Annual payments for members retired under Guard and Reserve

Transition Initiative.

Sec. 643. Increased eligibility and application periods for troops-to-teachers

program.

Sec. 644. Assistance for eligible members to obtain employment with law enforcement agencies.

Sec. 645. Treatment of retired and retainer pay of members of cadre of Civilian

Community Corps.

Subtitle F—Other Matters

Sec. 651. Disability coverage for officer candidates granted excess leave.

Sec. 652. Use of morale, welfare, and recreation facilities by members of reserve components and dependents.

Sec. 653. Special supplemental food program for Department of Defense personnel outside the United States.

Sec. 654. Reimbursement for certain losses of household effects caused by hostile action.

TITLE VII—HEALTH CARE PROVISIONS

Sec. 701. Revision of definition of dependents to include young people being

adopted by members or former members.

Sec. 702. Availability of dependents’ dental program outside the United States.

Sec. 703. Conditions under which medical and dental care of abused dependents

is authorized.

Sec. 704. Coordination of benefits with medicare.

Sec. 705. Authority for reimbursement of professional license fees under resource sharing agreements.

Sec. 706. Chiropractic health care demonstration program.

Sec. 707. Implementation of annual health care survey requirement.

Sec. 708. Establishment of medicare special enrollment period for certain military retirees and dependents and payment of late enrollment

penalty by Department of Defense.

Sec. 709. Eligibility for participation in demonstration programs for sale of

pharmaceuticals.

TITLE VIII—ACQUISITION POLICY, ACQUISITION

MANAGEMENT, AND RELATED MATTERS

Subtitle A—Use of Merit Based Selection Procedures

Sec. 801. Policy for merit based award of contracts and grants.

Sec. 802. Continuation of expiring requirement for annual report on the use of

competitive procedures for awarding certain contracts to colleges and universities.
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Subtitle B—Acquisition Assistance Programs

Sec. 811. Procurement technical assistance programs.

Sec. 812. Pilot Mentor-Protege Program.

Sec. 813. Infrastructure assistance for historically black colleges and other minority institutions of higher education.

Sec. 814. Extension of test program for negotiation of comprehensive small

business subcontracting plans.

Sec. 815. Limitation regarding acquisition assistance regulations required by

Public Law 103–160 but not issued.

Subtitle C—Other Matters

Sec. 821. Use of certain funds pending submission of a national technology and

industrial base periodic defense capability assessment and a

periodic defense capability plan.

Sec. 822. Delegation of industrial mobilization authority.

Sec. 823. Permanent authority for the Department of Defense to share equitably the costs of claims under international armaments cooperative programs.

Sec. 824. Determinations of public interest under the Buy American Act.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION

AND MANAGEMENT

Subtitle A—Secretarial Matters

Sec. 901. Additional Assistant Secretary of Defense.

Sec. 902. Order of succession to Secretaries of the military departments.

Subtitle B—Commission on Roles and Missions of the Armed

Forces

Sec. 911. Review of reserve components.

Sec. 912. Support by federally funded research and development centers.

Subtitle C—Other Matters

Sec. 921. Composition of reserve forces policy board.

Sec. 922. Continuation of Uniformed Services University of the Health

Sciences.

Sec. 923. Joint duty credit for certain duty performed during military operations in support of unified, combined, or United Nations military operations.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Emergency supplemental authorization of appropriations for fiscal

year 1994.

Sec. 1003. Date for submission of future-years mission budget.

Subtitle B—Matters Relating to Allies and Other Nations

Sec. 1011. Repeal of limitation on overseas military end strength.

Sec. 1012. Authorized end strength for military personnel in Europe.
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Sec. 1013. Extension and revision of authorities relating to cooperative threat

reduction.

Sec. 1014. Defense cooperation between the United States and Israel.

Sec. 1015. Military-to-military contacts and comparable activities.

Sec. 1016. Foreign disaster relief.

Subtitle C—Nonproliferation and Counterproliferation of

Weapon Systems and Related Systems

Sec. 1021. Extension and revision of nonproliferation authorities.

Sec. 1022. Joint Committee for the Review of Counterproliferation Programs of

the United States.

Sec. 1023. Report on counterproliferation activities and programs.

Sec. 1024. Amounts for counterproliferation activities.

Sec. 1025. Restriction relating to report on proliferation of foreign military satellites.

Subtitle D—Peace Operations

Sec. 1031. Reports on reforming multilateral peace operations.

Sec. 1032. Support for international peacekeeping and peace enforcement.

Subtitle E—Reporting Requirements

Sec. 1041. Report on offensive biological warfare program of the States of the

former Soviet Union.

Sec. 1042. Continuation of requirements for submittal of certain reports to

Congress.

Subtitle F—Acceptance of Prerelease Services of Nonviolent

Offenders

Sec. 1051. Use of inmate labor at military installations.

Sec. 1052. Revision of authority for use of Navy installations to provide employment training to nonviolent offenders in State penal systems.

Sec. 1053. Use of Army installations to provide employment training to nonviolent offenders in State penal systems.

Subtitle G—Other Matters

Sec. 1061. Redesignation of United States Court of Military Appeals and the

Courts of Military Review.

Sec. 1062. Assistance to family members of certain POW/MIAs who remain unaccounted for.

Sec. 1063. National Guard assistance for certain youth and charitable organizations.

Sec. 1064. Defense Mapping Agency.

Sec. 1065. Transfer of naval vessels to Brazil.

Sec. 1066. Transfers of M1A1 tanks to the Marine Corps.

Sec. 1067. Limitation regarding merger of telecommunications systems.

DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI—ARMY
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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. Relocation of Army family housing units from Fort Hunter Liggett,

California, to Fort Stewart, Georgia.

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. Authority to carry out construction project, Naval Supply Center,

Pensacola, Florida.

Sec. 2206. Relocation of Pascagoula Coast Guard Station, Mississippi.

Sec. 2207. Authority to carry out construction design for Mayport Naval Station, Florida.

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. Authorization of military construction projects at Tyndall Air Force

Base, Florida, for which funds have been appropriated.

Sec. 2306. Revision of authorized family housing project, Tyndall Air Force

Base, Florida.

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition

projects.

Sec. 2402. Family housing.

Sec. 2403. Improvements to military family housing units.

Sec. 2404. Energy conservation projects.

Sec. 2405. Authorization of appropriations, Defense Agencies.

Sec. 2406. Termination of authority to carry out fiscal year 1993 project.

Sec. 2407. Community impact assistance with regard to Naval Weapons Station, Charleston, South Carolina.

TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION

INFRASTRUCTURE

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.

Sec. 2602. Authorization of certain National Guard and Reserve projects for

which funds have been appropriated.

TITLE XXVII—EXPIRATION OF AUTHORIZATIONS
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Sec. 2701. Expiration of authorizations and amounts required to be specified

by law.

Sec. 2702. Extension of authorization of certain fiscal year 1992 projects.

Sec. 2703. Clarification of extension of authorizations of certain fiscal year

1991 projects.

Sec. 2704. Extension of certain fiscal year 1991 projects.

Sec. 2705. Effective date.

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military

Family Housing Changes

Sec. 2801. Clarification of requirement for notification of Congress of improvements in family housing units.

Sec. 2802. Authority to pay closing costs under Homeowners Assistance Program.

Subtitle B—Base Closure Matters

Sec. 2811. Prohibition against consideration in base closure process of advance

conversion planning undertaken by potential affected communities.

Sec. 2812. Clarifying and technical amendments to base closure laws.

Subtitle C—Land Transactions Generally

Sec. 2821. Land transfer, Holloman Air Force Base, New Mexico.

Sec. 2822. Joint use of property, Port Hueneme, California.

Sec. 2823. Lease of property, Naval Radio Receiving Facility, Imperial Beach,

Coronado, California.

Sec. 2824. Release of reversionary interest on certain property in York County

and James City County, Virginia, and Newport News, Virginia.

Sec. 2825. Land transfer, Fort Devens, Massachusetts.

Sec. 2826. Land conveyance, Cornhusker Army Ammunition Plant, Hall County, Nebraska.

Sec. 2827. Transfer or conveyance of certain parcels of property through General Services Administration.

Subtitle D—Changes to Existing Land Transaction Authority

Sec. 2831. Modifications of land conveyance, Fort A.P. Hill Military Reservation, Virginia.

Sec. 2832. Modification of conveyance of electricity distribution system, Fort

Dix, New Jersey.

Sec. 2833. Modification of land conveyance, Fort Knox, Kentucky.

Sec. 2834. Preservation of Calverton Pine Barrens, Naval Weapons Industrial

Reserve Plant, New York, as nature preserve.

Subtitle E—Other Matters

Sec. 2841. Joint construction contracting for commissaries and

nonappropriated fund instrumentality facilities.

Sec. 2842. National Guard facility contracts subject to performance supervision

by the Army or the Navy.

Sec. 2843. Waiver of reporting requirements for certain real property transactions in the event of war or national emergency.
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Sec. 2844. Report on use of funds for environmental restoration at Cornhusker

Army Ammunition Plant, Hall County, Nebraska.

Sec. 2845. Department of Defense laboratory revitalization demonstration program.

Sec. 2846. Agreements of settlement for release of improvements at overseas

military installations.

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. Weapons activities.

Sec. 3102. Environmental restoration and waste management.

Sec. 3103. Nuclear materials support and other defense programs.

Sec. 3104. Defense nuclear waste disposal.

Sec. 3105. General reduction in authorization of appropriations.

Subtitle B—Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Sec. 3124. Funds transfer authority.

Sec. 3125. Authority for construction design.

Sec. 3126. Requirement for completion of conceptual design to precede request

for construction funds.

Sec. 3127. Authority for emergency planning, design, and construction activities.

Sec. 3128. Funds available for all national security programs of the Department of Energy.

Sec. 3129. Availability of funds.

Subtitle C—Program Authorizations, Restrictions, and

Limitations

Sec. 3131. Stockpile stewardship recruitment and training program.

Sec. 3132. Defense inertial confinement fusion program.

Sec. 3133. Payment of penalties.

Sec. 3134. Water management programs.

Sec. 3135. Limitation on use of funds for special access programs.

Sec. 3136. Protection of nuclear weapons facilities workers.

Sec. 3137. National security programs.

Sec. 3138. Scholarship and Fellowship Program for Environmental Restoration

and Waste Management.

Sec. 3139. Hazardous materials management and hazardous materials emergency response training program.

Sec. 3140. Programs for persons who may have been exposed to radiation released from Hanford Nuclear Reservation.

Sec. 3141. Solar energy activities at Nevada Test Site, Nevada,

Subtitle D—Other Matters

Sec. 3151. Accounting procedures for Department of Energy funds.
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Sec. 3152. Approval for certain nuclear weapons activities.

Sec. 3153. Study of feasibility of conducting certain activities at the Nevada

Test Site, Nevada.

Sec. 3154. Tritium production.

Sec. 3155. Office of Fissile Materials Disposition.

Sec. 3156. Extension of authority to loan personnel and facilities at Idaho National Engineering Laboratory.

Sec. 3157. Elimination of requirement for five-year plan for defense nuclear facilities.

Sec. 3158. Increase in number of positions for environmental restoration and

waste management personnel excepted from civil service laws.

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY

BOARD AUTHORIZATION

Sec. 3201. Authorization.

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE

Sec. 3301. Disposal of obsolete and excess materials contained in the National

Defense Stockpile.

Sec. 3302. Authorized uses of stockpile funds.

Sec. 3303. Repeal of advisory committee requirement.

Sec. 3304. Rotation of materials to prevent technological obsolescence.

TITLE XXXIV—CIVIL DEFENSE

Sec. 3401. Authorization of appropriations.

TITLE XXXV—PANAMA CANAL COMMISSION

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Expenditures in accordance with other laws.

Sec. 3504. Costs of educational services obtained in the United States.

Sec. 3505. Special immigrant status of Panamanians employed by the United

States in the former Canal Zone.

DIVISION D—FEDERAL ACQUISITION STREAMLINING

Sec. 40001. Short title.

TITLE XLI—CONTRACT FORMATION

Subtitle A—Competition Statutes

PART I—ARMED SERVICES ACQUISITIONS

SUBPART A—COMPETITION REQUIREMENTS

Sec. 41001. References to Federal Acquisition Regulation.

Sec. 41002. Establishment or maintenance of alternative sources of supply.

Sec. 41003. Clarification of approval authority for use of procedures other than

full and open competition.

Sec. 41004. Task order contracts for advisory and assistance services.

Sec. 41005. Acquisition of expert services.
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SUBPART B—PLANNING, SOLICITATION, EVALUATION, AND AWARD

Sec. 41011. Source selection factors.

Sec. 41012. Solicitation provision regarding evaluation of purchase options.

Sec. 41013. Prompt notice of award.

Sec. 41014. Post-award debriefings.

Sec. 41015. Protest file.

Sec. 41016. Award of costs and fees in agency settlement of protests.

Sec. 41017. Two-phase selection procedures.

SUBPART C—KINDS OF CONTRACTS

Sec. 41021. Secretarial determination regarding use of cost type or incentive

contract.

Sec. 41022. Technical and conforming amendments.

SUBPART D—MISCELLANEOUS PROVISIONS FOR THE ENCOURAGEMENT OF

COMPETITION

Sec. 41031. Repeal of requirement for annual report by advocates for competition.

PART II—CIVILIAN AGENCY ACQUISITIONS

SUBPART A—COMPETITION REQUIREMENTS

Sec. 41051. References to Federal Acquisition Regulation.

Sec. 41052. Establishment or maintenance of alternative sources of supply.

Sec. 41053. Clarification of approval authority for use of procedures other than

full and open competition.

Sec. 41054. Task order contracts for advisory and assistance services.

Sec. 41055. Acquisition of expert services.

Sec. 41056. Continued occupancy of leased space.

SUBPART B—PLANNING, SOLICITATION, EVALUATION, AND AWARD

Sec. 41061. Solicitation, evaluation, and award.

Sec. 41062. Solicitation provision regarding evaluation of purchase options.

Sec. 41063. Prompt notice of award.

Sec. 41064. Post-award debriefings.

Sec. 41065. Protest file.

Sec. 41066. Award of costs and fees in agency settlement of protests.

Sec. 41067. Two-phase selection procedures.

SUBPART C—KINDS OF CONTRACTS

Sec. 41071. Agency head determination regarding use of cost type or incentive

contract.

Sec. 41072. Multiyear contracting authority.

Sec. 41073. Severable services contracts crossing fiscal years.

Sec. 41074. Economy Act purchases.

PART III—ACQUISITIONS GENERALLY

Sec. 41091. Policy regarding consideration of contractor past performance.

Sec. 41092. Repeal of requirement for annual report on competition.

Subtitle B—Truth in Negotiations

PART I—ARMED SERVICES ACQUISITIONS
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Sec. 41101. Stabilization of dollar threshold of applicability.

Sec. 41102. Exceptions to cost or pricing data requirements.

Sec. 41103. Limitation on authority to require a submission not otherwise required.

Sec. 41104. Additional special rules for commercial items.

Sec. 41105. Right of United States to examine contractor records.

Sec. 41106. Required regulations.

Sec. 41107. Consistency of time references.

Sec. 41108. Exception for transfers between divisions, subsidiaries, and affiliates.

Sec. 41109. Repeal of superseded provision.

PART II—CIVILIAN AGENCY ACQUISITIONS

Sec. 41151. Revision of civilian agency provisions to ensure uniform treatment

of cost or pricing data.

Sec. 41152. Repeal of obsolete provision.

Subtitle C—Research and Development

Sec. 41201. Research projects.

Sec. 41202. Elimination of inflexible terminology regarding coordination and

communication of defense research activities.

Subtitle D—Procurement Protests

PART I—PROTESTS TO THE COMPTROLLER GENERAL

Sec. 41301. Protest defined.

Sec. 41302. Review of protests and effect on contracts pending decision.

Sec. 41303. Decisions on protests.

Sec. 41304. Regulations.

PART II—PROTESTS IN THE FEDERAL COURTS

Sec. 41321. Nonexclusivity of remedies.

Sec. 41322. Jurisdiction of the United States Court of Federal Claims.

PART III—PROTESTS IN PROCUREMENTS OF AUTOMATIC DATA PROCESSING

Sec. 41331. Revocation of delegations of procurement authority.

Sec. 41332. Authority of the General Services Administration Board of Contract Appeals.

Sec. 41333. Periods for certain actions.

Sec. 41334. Dismissals of protests.

Sec. 41335. Award of costs.

Sec. 41336. Dismissal agreements.

Sec. 41337. Jurisdiction of district courts.

Sec. 41338. Matters to be covered in regulations.

Sec. 41339. Definitions.

Subtitle E—Definitions and Other Matters

PART I—ARMED SERVICES ACQUISITIONS

Sec. 41401. Definitions.

Sec. 41402. Delegation of procurement functions.

Sec. 41403. Determinations and decisions.
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Sec. 41404. Undefinitized contractual actions: restrictions.

Sec. 41405. Production special tooling and production special test equipment:

contract terms and conditions.

Sec. 41406. Regulations for bids.

PART II—CIVILIAN AGENCY ACQUISITIONS

Sec. 41451. Definitions.

Sec. 41452. Delegation of procurement functions.

Sec. 41453. Determinations and decisions.

Sec. 41454. Cooperative purchasing.

TITLE XLII—CONTRACT ADMINISTRATION

Subtitle A—Contract Payment

PART I—ARMED SERVICES ACQUISITIONS

Sec. 42001. Contract financing.

Sec. 42002. Contracts: vouchering procedures.

PART II—CIVILIAN AGENCY ACQUISITIONS

Sec. 42051. Contract financing.

Subtitle B—Cost Principles

PART I—ARMED SERVICES ACQUISITIONS

Sec. 42101. Allowable contract costs.

Sec. 42102. Contract profit controls during emergency periods.

PART II—CIVILIAN AGENCY ACQUISITIONS

Sec. 42151. Allowable contract costs.

PART III—ACQUISITIONS GENERALLY

Sec. 42191. Travel expenses of government contractors.

Sec. 42192. Unallowability of entertainment costs under covered contracts.

Subtitle C—Audit and Access to Records

PART I—ARMED SERVICES ACQUISITIONS

Sec. 42201. Consolidation and revision of authority to examine records of contractors.

PART II—CIVILIAN AGENCY ACQUISITIONS

Sec. 42251. Authority to examine records of contractors.

Subtitle D—Cost Accounting Standards

Sec. 42301. Exceptions to coverage.

Sec. 42302. Repeal of obsolete deadline regarding procedural regulations for

the Cost Accounting Standards Board.

Subtitle E—Administration of Contract Provisions Relating to

Price, Delivery, and Product Quality
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PART I—ARMED SERVICES ACQUISITIONS

Sec. 42401. Procurement of critical aircraft and ship spare parts; quality control.

Sec. 42402. Contractor guarantees regarding weapon systems.

PART II—ACQUISITIONS GENERALLY

Sec. 42451. Section 3737 of the Revised Statutes: expansion of authority to

prohibit setoffs against assignees; reorganization of section; revision of obsolete provisions.

Sec. 42452. Repeal of requirement for deposit of contracts with GAO.

Subtitle F—Claims and Disputes

PART I—ARMED SERVICES ACQUISITIONS

Sec. 42501. Certification of contract claims.

Sec. 42502. Shipbuilding claims.

PART II—ACQUISITIONS GENERALLY

Sec. 42551. Claims jurisdiction of United States district courts and the United

States Court of Federal Claims.

Sec. 42552. Contract Disputes Act improvements.

Sec. 42553. Extension of alternative dispute resolution authority.

Sec. 42554. Expedited resolution of contract administration complaints.

Sec. 42555. Authority for District Courts to obtain advisory opinions from

boards of contract appeals in certain cases.

TITLE XLIII—SERVICE SPECIFIC AND MAJOR SYSTEMS

STATUTES

Subtitle A—Major Systems Statutes

Sec. 43001. Requirement for independent cost estimates and manpower estimates before development or production.

Sec. 43002. Enhanced program stability.

Sec. 43003. Repeal of requirement to designate certain major defense acquisition programs as defense enterprise programs.

Sec. 43004. Repeal of requirement for competitive prototyping in major programs.

Sec. 43005. Repeal of requirement for competitive alternative sources in major

programs.

Subtitle B—Testing Statutes

Sec. 43011. Director of Operational Test and Evaluation to report directly to

Secretary of Defense.

Sec. 43012. Responsibility of Director of Operational Test and Evaluation for

live fire testing.

Sec. 43013. Requirement for unclassified version of annual report on operational test and evaluation.

Subtitle C—Service Specific Laws

Sec. 43021. Gratuitous services of officers of certain reserve components.

Sec. 43022. Authority to rent samples, drawings, and other information to others.
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Sec. 43023. Civil Reserve Air Fleet.

Sec. 43024. Exchange of personnel.

Sec. 43025. Scientific investigation and research for the Navy.

Sec. 43026. Construction of combatant and escort vessels and assignment of

vessel projects.

Sec. 43027. Repeal of requirement for construction of vessels on Pacific coast.

Sec. 43028. Authority to transfer by gift a vessel stricken from Naval Vessel

Register.

Sec. 43029. Naval salvage facilities.

Subtitle D—Department of Defense Commercial and Industrial

Activities

Sec. 43051. Accounting requirement for contracted advisory and assistance

services.

Subtitle E—Fuel- and Energy-Related Laws

Sec. 43061. Liquid fuels and natural gas: contracts for storage, handling, or

distribution.

Subtitle F—Fiscal Statutes

Sec. 43071. Disbursement of funds of military department to cover obligations

of another agency of Department of Defense.

Subtitle G—Miscellaneous

Sec. 43081. Obligation of funds: limitation.

Sec. 43082. Repeal of requirements regarding product evaluation activities.

Sec. 43083. Codification and revision of limitation on lease of vessels, aircraft,

and vehicles.

Sec. 43084. Soft drink supplies for exchange stores.

Sec. 43085. Repeal of preference for recycled toner cartridges.

TITLE XLIV—SIMPLIFIED ACQUISITION THRESHOLD AND

SOCIOECONOMIC, SMALL BUSINESS, AND MISCELLANEOUS LAWS

Subtitle A—Simplified Acquisition Threshold

PART I—ESTABLISHMENT OF THRESHOLD

Sec. 44001. Simplified acquisition threshold.

PART II—SIMPLIFICATION OF PROCEDURES

Sec. 44011. Simplified acquisition procedures.

Sec. 44012. Small business reservation.

Sec. 44013. Fast payment under simplified acquisition procedures.

Sec. 44014. Procurement notice.

Sec. 44015. Electronic commerce for Federal Government procurements.

PART III—APPLICABILITY OF LAWS TO ACQUISITIONS NOT IN EXCESS OF

SIMPLIFIED ACQUISITION THRESHOLD

Sec. 44021. Future enacted procurement laws.

Sec. 44022. Armed services acquisitions.

Sec. 44023. Civilian agency acquisitions.
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Sec. 44024. Acquisitions generally.

PART IV—CONFORMING AMENDMENTS

Sec. 44071. Armed services acquisitions.

Sec. 44072. Civilian agency acquisitions.

Sec. 44073. Office of Federal Procurement Policy Act.

Sec. 44074. Small Business Act.

PART V—REVISION OF REGULATIONS

Sec. 44081. Revision required.

Subtitle B—Socioeconomic and Small Business Laws

Sec. 44101. Acquisitions generally.

Sec. 44102. Acquisitions from small businesses.

Sec. 44103. Contracting program for certain small business concerns.

Sec. 44104. Procurement goals for small business concerns owned by women.

Sec. 44105. Development of definitions regarding certain small business concerns.

Subtitle C—Miscellaneous Acquisition Laws

Sec. 44151. Prohibition on use of funds for documenting economic or employment impact of certain acquisition programs.

Sec. 44152. Restriction on use of noncompetitive procedures for procurement

from a particular source.

TITLE XLV—ACQUISITION MANAGEMENT

Subtitle A—Armed Services Acquisitions

Sec. 45001. Performance based management.

Sec. 45002. Results oriented acquisition program cycle.

Sec. 45003. Defense acquisition pilot program designations.

Subtitle B—Civilian Agency Acquisitions

Sec. 45051. Performance based management.

Sec. 45052. Results-oriented acquisition process.

Subtitle C—Miscellaneous

Sec. 45091. Contractor exceptional performance awards.

Sec. 45092. Department of Defense acquisition of intellectual property rights.

TITLE XLVI—STANDARDS OF CONDUCT

Subtitle A—Ethics Provisions

Sec. 46001. Amendments to Office of Federal Procurement Policy Act.

Sec. 46002. Amendments to title 18, United States Code.

Sec. 46003. Repeal of superseded and obsolete laws.

Sec. 46004. Implementation.

Subtitle B—Additional Amendments

Sec. 46051. Contracting functions performed by Federal personnel.

Sec. 46052. Repeal of executed requirement for study and report.
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Sec. 46053. Interests of Members of Congress.

Sec. 46054. Waiting period for significant changes proposed for acquisition regulations.

Subtitle C—Whistleblower Protection

Sec. 46101. Armed services procurements.

Sec. 46102. Governmentwide whistleblower protections for contractor employees.

TITLE XLVII—DEFENSE TRADE AND COOPERATION

Sec. 47001. Purchases of foreign goods.

Sec. 47002. International cooperative agreements.

Sec. 47003. Acquisition, cross-servicing agreements, and standardization.

TITLE XLVIII—COMMERCIAL ITEMS

Sec. 48001. Definitions.

Sec. 48002. Preference for acquisition of commercial items and

nondevelopmental items.

Sec. 48003. Acquisition of commercial items.

Sec. 48004. Class waiver of applicability of certain laws.

Sec. 48005. Inapplicability of certain provisions of law.

Sec. 48006. Flexible deadlines for submission of offers of commercial items.

Sec. 48007. Advocates for acquisition of commercial and nondevelopmental

items.

Sec. 48008. Provisions not affected.

Sec. 48009. Comptroller General review of Federal Government use of market

research.

TITLE XLIX—MISCELLANEOUS PROVISIONS

Sec. 49001. Comptroller General review of the provision of legal advice for inspectors general.

Sec. 49002. Cost savings for official travel.

Sec. 49003. Prompt resolution of audit recommendations.

Sec. 49004. Uniform suspension and debarment.

TITLE L—EFFECTIVE DATES AND IMPLEMENTATION

Sec. 50001. Effective dates.

Sec. 50002. Implementing regulations.

Sec. 50003. Evaluation by the Comptroller General.

Sec. 50004. Data collection through the Federal procurement data system.

TITLE LI—WAIVER OF THE APPLICATION OF THE PREVAILING WAGE-SETTING REQUIREMENTS TO VOLUNTEERS

Sec. 51001. Short title.

Sec. 51002. Purpose.

Sec. 51003. Waiver.

Sec. 51004. Report.
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1 SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

2 For purposes of this Act, the term ‘‘congressional de3 fense committees’’ means the Committees on Armed Serv4 ices and the Committees on Appropriations of the Senate

5 and House of Representatives.

6 DIVISION A—DEPARTMENT OF

7 DEFENSE AUTHORIZATIONS

8 TITLE I—PROCUREMENT

9 Subtitle A—Authorization of

10 Appropriations

11 SEC. 101. ARMY.

12 Funds are hereby authorized to be appropriated for

13 fiscal year 1995 for procurement for the Army as follows:

14 (1) For aircraft, $1,058,781,000.

15 (2) For missiles, $723,909,000.

16 (3) For weapons and tracked combat vehicles,

17 $1,132,886,000.

18 (4) For ammunition, $840,361,000.

19 (5) For other procurement, $2,677,719,000.

20 SEC. 102. NAVY AND MARINE CORPS.

21 (a) NAVY.—Funds are hereby authorized to be appro22 priated for fiscal year 1995 for procurement for the Navy

23 as follows:

24 (1) For aircraft, $4,535,601,000.

25 (2) For weapons, including missiles and tor26 pedoes, $2,428,539,000.
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1 (3) For shipbuilding and conversion,

2 $6,132,807,000.

3 (4) For other procurement, $3,310,217,000.

4 (b) MARINE CORPS.—Funds are hereby authorized to

5 be appropriated for fiscal year 1995 for procurement for

6 the Marine Corps in the amount of $528,857,000.

7 SEC. 103. AIR FORCE.

8 Funds are hereby authorized to be appropriated for

9 fiscal year 1995 for procurement for the Air Force as fol10 lows:

11 (1) For aircraft, $6,602,994,000.

12 (2) For missiles, $4,330,473,000.

13 (3) For other procurement, $6,961,153,000.

14 SEC. 104. DEFENSE-WIDE ACTIVITIES.

15 Funds are hereby authorized to be appropriated for

16 fiscal year 1995 for Defense-wide procurement in the

17 amount of $1,935,616,000.

18 SEC. 105. RESERVE COMPONENTS.

19 Funds are hereby authorized to be appropriated for

20 fiscal year 1995 for procurement of aircraft, vehicles, com21 munications equipment, and other equipment for the re22 serve components of the Armed Forces as follows:

23 (1) For the Army National Guard,

24 $85,000,000.

25 (2) For the Air National Guard, $270,000,000.
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1 (3) For the Army Reserve, $75,000,000.

2 (4) For the Naval Reserve, $65,000,000.

3 (5) For the Air Force Reserve, $60,000,000.

4 (6) For the Marine Corps Reserve,

5 $45,000,000.

6 SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

7 (a) AUTHORIZATION.—There is hereby authorized to

8 be appropriated for fiscal year 1995 the amount of

9 $590,149,000 for—

10 (1) the destruction of lethal chemical agents

11 and munitions in accordance with section 1412 of

12 the Department of Defense Authorization Act, 1986

13 (50 U.S.C. 1521); and

14 (2) the destruction of chemical warfare material

15 of the United States that is not covered by section

16 1412 of such Act.

17 (b) LIMITATION.—Of the funds specified in sub18 section (a)—

19 (1) $363,584,000 is for operation and mainte20 nance;

21 (2) $215,265,000 is for procurement; and

22 (3) $11,300,000 is for research and develop23 ment efforts in support of the nonstockpile chemical

24 weapons program.
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1 (c) AUTHORITY FOR OBLIGATION OF UNAUTHORIZED

2 APPROPRIATIONS.—The Department of Defense may obli3 gate and expend $25,000,000 of the funds appropriated

4 for research, development, test, and evaluation under the

5 heading ‘‘CHEMICAL AGENTS AND MUNITIONS DESTRUC6 TION, DEFENSE’’ in title VI of Public Law 103–139 (107

7 Stat. 1436) in accordance with the appropriation for such

8 funds in that Act.

9 (d) IDENTIFICATION OF FUNDS FOR PROGRAM.—

10 Section 1412(f) of the Department of Defense Authoriza11 tion Act, 1986 (50 U.S.C. 1521(f)) is amended by striking

12 out the last sentence and inserting in lieu thereof the fol13 lowing: ‘‘Funds for military construction projects nec14 essary to carry out this section shall be set forth in the

15 budget of the Department of Defense for any fiscal year

16 as a separate account.’’.

17 Subtitle B—Army Programs

18 SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR

19 M1A2 TANK UPGRADES.

20 The Secretary of the Army may enter into multiyear

21 procurement contracts for procurement of M1A2 Abrams

22 tank upgrades in accordance with section 2306(h) of title

23 10, United States Code.
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1 SEC. 112. TRANSFER OF REPLACEMENT ARMY TANK TO MA2 RINE CORPS RESERVE.

3 The Secretary of the Army shall transfer one M1A1

4 common tank to the Marine Corps Reserve not later than

5 the latest date on which any of the additional 24 M1A2

6 upgrades provided for under authorizations of appropria7 tions in this Act is accepted by the Army.

8 SEC. 113. REPLACEMENT SURVEILLANCE SYSTEM FOR

9 KOREA.

10 Funds available to the Army for procurement of OV–

11 1 aircraft that remain unobligated by reason of the early

12 retirement of OV–1 aircraft deployed in Korea may be

13 used for leasing a moving target indicator radar or an14 other surveillance system to replace the surveillance capa15 bility of such aircraft in Korea if—

16 (1) the lease provides for deployment of the sys17 tem within 180 days after the date of the enactment

18 of this Act;

19 (2) the Republic of Korea pays 50 percent of

20 the cost of the lease;

21 (3) the lease includes an option for the Republic

22 of Korea to purchase the leased system after the

23 joint surveillance and target attack radar surveil24 lance system (JSTARS) program attains initial

25 operational capability; and
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1 (4) the lease expires within 180 days after the

2 date on which the JSTARS system is planned, as of

3 the date of the enactment of this Act, to attain ini4 tial operational capability.

5 SEC. 114. SMALL ARMS INDUSTRIAL BASE.

6 (a) FUNDING FOR PROCUREMENT.—Of the funds au7 thorized to be appropriated pursuant to section 101(3)—

8 (1) $38,902,000 shall be available for procure9 ment of MK19–3 grenade machine guns;

10 (2) $13,000,000 shall be available for procure11 ment of M16A2 rifles;

12 (3) $24,016,000 shall be available for procure13 ment of M249 squad automatic weapons; and

14 (4) $13,165,000 shall be available for procure15 ment of M4 carbines.

16 (b) MULTIYEAR CONTRACTS AUTHORIZED.—(1)

17 During fiscal year 1995, the Secretary of the Army may,

18 in accordance with section 2306(h) of title 10, United

19 States Code, enter into multiyear contracts to meet the

20 following objectives for quantities of small arms weapons

21 to be acquired for the Army:

22 (A) 21,217 MK19–3 grenade machine guns;

23 (B) 1,002,277 M16A2 rifles;

24 (C) 71,769 M249 squad automatic weapons;

25 and
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1 (D) 132,510 M4 carbines.

2 (2) If the Army does not enter into contracts in fiscal

3 year 1995 that will meet all the objectives set forth in

4 paragraph (1), the Secretary shall, to the extent provided

5 for in appropriations Acts, enter into multiyear contracts

6 on or after October 1, 1995, to meet such objectives.

7 (3) Notwithstanding the first sentence of section

8 2306(h)(8) of title 10, United States Code, the period of

9 a multiyear contract entered into under this subsection

10 may not exceed 10 years.

11 (c) FOLLOW-ON WEAPONS.—The Secretary of the

12 Army shall provide for procurement of product improve13 ments for existing small arms weapons and may do so

14 within multiyear contracts entered into pursuant to sub15 section (b).

16 (d) JOINT SMALL ARMS MASTER PLAN.—(1) The

17 Secretaries of the military departments shall jointly de18 velop a master plan for meeting the immediate and future

19 needs of the Armed Forces for small arms. The Secretary

20 of the Army shall coordinate the development of the joint

21 small arms master plan. The joint small arms master plan

22 shall include—

23 (A) an examination of the relative advantages

24 and disadvantages of improving existing small arms
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1 weapons as compared to investing in new, advanced

2 technology weapons; and

3 (B) an analysis of the effects of each such ap4 proach on the small arms industrial base.

5 (2) Not later than April 1, 1995, the Under Secretary

6 of Defense for Acquisition and Technology shall—

7 (A) review the joint small arms master plan

8 and the results of the examination of relative advan9 tages and disadvantages of the two courses of action

10 described in paragraph (1); and

11 (B) transmit the plan, together with any com12 ments that the Under Secretary considers appro13 priate, to the congressional defense committees.

14 (e) FUNDING FOR RDT&E.—Of the funds authorized

15 to be appropriated under section 201(1)—

16 (1) $5,000,000 shall be available for the Objec17 tive Crew-Served Weapons System; and

18 (2) $3,000,000 shall be available for product

19 improvements to existing small arms weapons.

20 Subtitle C—Navy Programs

21 SEC. 121. NUCLEAR AIRCRAFT CARRIER PROGRAM.

22 (a) TRANSFER OF FISCAL YEAR 1994 FUNDS.—To

23 the extent provided in appropriations Acts,

24 $1,200,000,000 may be transferred from the National De-
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1 fense Sealift Fund to the funds appropriated pursuant to

2 the authorization in section 102(a)(3).

3 (b) AVAILABILITY FOR CVN–76.—The funds trans4 ferred shall be available for the CVN–76 nuclear aircraft

5 carrier program.

6 (c) RELATIONSHIP TO OTHER AUTHORIZATION.—

7 The amount of the funds transferred shall be in addition

8 to the amount authorized to be appropriated in section

9 102(a)(3) of the National Defense Authorization Act for

10 Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1563).

11 (d) RELATIONSHIP TO OTHER TRANSFER AUTHOR12 ITY.—The transfer authority in paragraph (1) is in addi13 tion to any other transfer authority provided in this or

14 any other Act.

15 Subtitle D—Air Force Programs

16 SEC. 131. SETTLEMENT OF CLAIMS UNDER THE C–17 AIR17 CRAFT PROGRAM.

18 (a) SUPPLEMENTAL AGREEMENTS AUTHORIZED.—

19 On or before September 30, 1995, but subject to sub20 section (e), the Secretary of the Air Force may enter into

21 supplemental agreements pertaining to Air Force prime

22 contract F33657–81–C–2108 and such other Air Force

23 contracts relating to the C–17 aircraft program in effect

24 on the date of enactment of this Act as the Secretary de25 termines appropriate—
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1 (1) to settle claims and disputes arising under

2 such contracts as provided in the C–17 settlement

3 agreement letter;

4 (2) to revise the delivery schedules under such

5 contracts as provided in the C–17 settlement agree6 ment letter, for aircraft T–1 and P–1 through P–6;

7 and

8 (3) to revise range specifications, payload speci9 fications, and other specifications under such con10 tracts as provided in Attachment B to the C–17 set11 tlement agreement letter.

12 (b) FURTHER CONSIDERATION NOT REQUIRED.—

13 The supplemental agreements referred to in subsection (a)

14 may be entered into without requiring further consider15 ation from the contractor only to the extent provided for

16 in the C–17 settlement agreement letter.

17 (c) RELEASE OF CONTRACTOR CLAIMS REQUIRED.—

18 Each supplemental agreement referred to in subsection (a)

19 shall require the prime contractor to release and forever

20 discharge the Government from all contractual claims, de21 mands, requests for equitable adjustment, and any other

22 causes of action, known or unknown, that the prime con23 tractor may have on or before January 6, 1994 arising

24 out of the C–17 program contracts as provided in the C–

25 17 settlement agreement letter.
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1 (d) CONTRACT MODIFICATIONS REGARDING CON2 TRACTOR COMMITMENTS.—The Secretary of the Air

3 Force shall incorporate in each appropriate C–17 contract

4 the prime contractor’s commitment to extend the flight

5 test program, redesign the wing, implement Computer

6 Aided Design/Computer Aided Manufacturing System im7 provements, Management Information System improve8 ments, and Advanced Quality System improvements, im9 plement product improvement cost reduction projects, and

10 resolve other C–17 program issues on a nonreimbursable

11 or cost-share basis as provided in the C–17 settlement

12 agreement letter.

13 (e) NOTICE-AND-WAIT REQUIREMENT.—The Sec14 retary of the Air Force may not enter into a supplemental

15 agreement referred to in subsection (a) until 30 days after

16 the date on which the Secretary of Defense certifies to

17 Congress that the terms and conditions set forth in the

18 C–17 settlement agreement letter, including the settle19 ment of claims, are in the best interests of the Govern20 ment.

21 (f) CONSTRUCTION REGARDING OTHER CONTRAC22 TOR OBLIGATIONS.—Nothing in this section shall be con23 strued as relieving the contractor of any obligation pro24 vided for in the C–17 settlement agreement letter.
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1 (g) C–17 SETTLEMENT AGREEMENT LETTER.—The

2 C–17 settlement agreement letter referred to in this sec3 tion is the agreement that was proposed to the prime con4 tractor for the C–17 aircraft program by the Under Sec5 retary of Defense for Acquisition and Technology by letter

6 dated January 3, 1994, and was accepted by the prime

7 contractor on January 6, 1994.

8 Subtitle E—Other Matters

9 SEC. 141. PRESERVING THE BOMBER INDUSTRIAL BASE.

10 (a) FUNDS TO PRESERVE THE BOMBER INDUSTRIAL

11 BASE.—Of the funds authorized to be appropriated under

12 section 103(1), not more than $150,000,000 shall be

13 available only for the following purposes:

14 (1) To retain B–2 bomber production tooling in

15 ready status.

16 (2) To preserve a production capability for

17 spare parts and aircraft subsystems among lower18 tier vendors.

19 (3) To develop detailed production plans for a

20 derivative of the B–2 bomber that is not capable of

21 delivering nuclear weapons.

22 (4) To carry out any other program, project, or

23 activity, not prohibited by subsection (b) or (c), that

24 the Secretary determines will help to preserve the

25 bomber industrial base of the United States.
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1 (b) PROHIBITION.—None of the funds made available

2 pursuant to this section may be used to procure any major

3 structural part for B–2 bomber aircraft or any other part

4 for B–2 bomber aircraft that is not a part previously ac5 quired or planned to be acquired for the B–2 bomber air6 craft under the initial or sustaining spares program.

7 (c) NO AUTHORIZATION OF ADVANCE PROCURE8 MENT.—Nothing in this section shall be construed as au9 thorizing the procurement, including long-lead procure10 ment, of a twenty-second B–2 bomber.

11 (d) EXEMPTION FROM LIMITATION ON TOTAL PRO12 GRAM COST.—Obligations of funds made available pursu13 ant to this section for the purposes set forth in subsection

14 (a) may not be counted for purposes of the limitation in

15 section 131(d) of the National Defense Authorization Act

16 for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

17 1569).

18 SEC. 142. DUAL-USE ELECTRIC AND HYBRID VEHICLES.

19 (a) FUNDING.—Of the funds authorized to be appro20 priated by this title, $15,000,000 shall be available for

21 procurement of electric and hybrid vehicles for military

22 uses and for commercialization of such vehicles for non23 military uses.

24 (b) LIMITATION.—(1) Funds made available pursu25 ant to subsection (a) may not be expended until the Sec-
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1 retary of Defense and the Secretary of Energy enter into

2 a memorandum of understanding that specifies the re3 sponsibilities of each Secretary for procurement and com4 mercialization activities to be carried out with such funds.

5 (2) The provisions of the memorandum of under6 standing shall be consistent with the missions of the De7 partment of Defense and the Department of Energy and

8 with the goals set forth in title VI of the Energy Policy

9 Act of 1992 (Public Law 102–486; 42 U.S.C. 13271 et

10 seq.) and the amendments made to the Clean Air Act (42

11 U.S.C. 7401 et seq.) by Public Law 101–549 (commonly

12 known as the ‘‘Clean Air Act Amendments of 1990’’; 104

13 Stat. 2399).

14 TITLE II—RESEARCH, DEVELOP15 MENT, TEST, AND EVALUA16 TION

17 Subtitle A—Authorization of

18 Appropriations

19 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

20 Funds are hereby authorized to be appropriated for

21 fiscal year 1995 for the use of the Department of Defense

22 for research, development, test, and evaluation, as follows:

23 (1) For the Army, $5,149,708,000.

24 (2) For the Navy, $8,796,129,000.

25 (3) For the Air Force, $12,329,796,000.
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1 (4) For Defense-wide activities,

2 $9,565,299,000, of which—

3 (A) $230,495,000 is authorized for the ac4 tivities of the Director, Test and Evaluation;

5 and

6 (B) $12,501,000 is authorized for the Di7 rector of Operational Test and Evaluation.

8 SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLOR9 ATORY DEVELOPMENT.

10 (a) FISCAL YEAR 1995.—Of the amounts authorized

11 to be appropriated by section 201, $4,210,356,000 shall

12 be available for basic research and exploratory develop13 ment projects.

14 (b) BASIC RESEARCH AND EXPLORATORY DEVELOP15 MENT DEFINED.—For purposes of this section, the term

16 ‘‘basic research and exploratory development’’ means work

17 funded in program elements for defense research and de18 velopment under Department of Defense category 6.1 or

19 6.2.

20 SEC. 203. STRATEGIC ENVIRONMENTAL RESEARCH AND DE21 VELOPMENT PROGRAM.

22 Of the amounts authorized to be appropriated by sec23 tion 201, $170,000,000 shall be available for the Strategic

24 Environmental Research and Development Program.
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1 Subtitle B—Programs Require2 ments, Restrictions, and Limita3 tions

4 SEC. 211. TACTICAL ANTISATELLITE TECHNOLOGIES PRO5 GRAM.

6 (a) DEMONSTRATION AND VALIDATION ACTIVI7 TIES.—Subject to subsection (e), the Secretary of Defense

8 shall continue the demonstration and validation of kinetic

9 energy antisatellite technologies under the tactical antisat10 ellite technologies program.

11 (b) LEVEL FUNDING.—Subject to subsection (e), of

12 the amounts authorized to be appropriated in this title,

13 $10,000,000 shall be available for fiscal year 1995 for en14 gineering development under the tactical antisatellite tech15 nologies program.

16 (c) REQUIREMENT OF OBLIGATION OF PRIOR YEAR

17 FUNDS.—To the extent provided in appropriations Acts,

18 the Secretary shall obligate for engineering development

19 under the tactical antisatellite technologies program all

20 funds available for fiscal year 1993 and fiscal year 1994

21 for the Kinetic Energy Antisatellite (KE–ASAT) program

22 that remain available for obligation on the date of the en23 actment of this Act.

24 (d) REPORT.—The Secretary shall submit to Con25 gress the report required by section 1363 of the National
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1 Defense Authorization Act for Fiscal Year 1993 (Public

2 Law 102–484; 106 Stat. 2560).

3 (e) LIMITATION.—No funds appropriated to the De4 partment of Defense for fiscal year 1995 may be obligated

5 for the tactical antisatellite technologies program until the

6 Secretary of Defense certifies to Congress that there is

7 a requirement for an antisatellite program.

8 SEC. 212. TRANSFER OF MILSTAR COMMUNICATIONS SAT9 ELLITE PROGRAM.

10 (a) TRANSFER TO NAVY.—The Secretary of Defense

11 shall transfer responsibility for program management and

12 funding for the MILSTAR communications satellite pro13 gram from the Secretary of the Air Force to the Secretary

14 of the Navy before October 1, 1995.

15 (b) FUNDING IN FUTURE YEARS DEFENSE PRO16 GRAM.—It is the sense of Congress that the Secretary

17 should transfer from the Air Force to the Navy sufficient

18 proposed funding in the Future Years Defense Program

19 to cover all costs for the MILSTAR communications sat20 ellite program and related programs, projects, and activi21 ties.

22 (c) RELATIONSHIP TO OTHER TRANSFER AUTHOR23 ITY.—The transfer authority in subsection (b) is in addi24 tion to the transfer authority provided in section 1001.
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1 SEC. 213. TRANSFER OF FUNDS FOR SINGLE-STAGE TO

2 ORBIT ROCKET.

3 The Secretary of Defense shall, to the extent provided

4 in appropriations Acts, transfer to the National Aero5 nautics and Space Administration the unobligated balance

6 of funds appropriated to the Department of Defense for

7 the Advanced Research Projects Agency for single-stage

8 to orbit rocket research and development.

9 SEC. 214. LIMITATION ON DISMANTLEMENT OF INTER10 CONTINENTAL BALLISTIC MISSILES.

11 Funds authorized to be appropriated in this Act may

12 not be obligated or expended for deactivating or disman13 tling United States intercontinental ballistic missiles

14 (ICBMs) of the United States below that number of such

15 missiles that is necessary to support 500 deployed inter16 continental ballistic missiles until 180 days after the date

17 on which the Secretary of Defense has delivered to the

18 congressional defense committees a report on the results

19 of a nuclear posture review being conducted by the Sec20 retary.

21 SEC. 215. LIMITATION ON OBLIGATION OF FUNDS FOR SEIS22 MIC MONITORING RESEARCH.

23 Funds authorized to be appropriated by this Act that

24 are made available for seismic monitoring of nuclear explo25 sions may not be obligated for a project unless the project
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1 is authorized in a plan approved in advance by the Sec2 retary of Defense and the Secretary of Energy.

3 SEC. 216. FEDERALLY FUNDED RESEARCH AND DEVELOP4 MENT CENTERS.

5 (a) CENTERS COVERED.—Funds appropriated or

6 otherwise made available for the Department of Defense

7 for fiscal year 1995 pursuant to an authorization of appro8 priations in section 201 may be obligated to procure work

9 from a federally funded research and development center

10 only in the case of a center named in the report required

11 by subsection (b) and, in the case of such a center, only

12 in an amount not in excess of the amount of the proposed

13 funding level set forth for that center in such report.

14 (b) REPORT ON ALLOCATIONS FOR CENTERS.—Not

15 later than 30 days after the date of the enactment of this

16 Act, the Secretary of Defense shall submit to the congres17 sional defense committees a report containing—

18 (1) the name of each federally funded research

19 and development center from which work is proposed

20 to be procured for the Department of Defense for

21 fiscal year 1995; and

22 (2) for each such center, the proposed funding

23 level and the estimated personnel level for fiscal year

24 1995.
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1 The total of the proposed funding levels set forth in the

2 report for all federally funded research and development

3 centers may not exceed the amount set forth in subsection

4 (d).

5 (c) LIMITATION PENDING SUBMISSION OF RE6 PORT.—No funds appropriated or otherwise made avail7 able for the Department of Defense for fiscal year 1995

8 may be obligated to obtain work from a federally funded

9 research and development center until the Secretary of

10 Defense submits the report required by subsection (b).

11 (d) FUNDING.—Of the amounts authorized to be ap12 propriated to the Department of Defense for research, de13 velopment, test, and evaluation for fiscal year 1995 pursu14 ant to section 201, not more than a total of

15 $1,300,000,000 may be obligated to procure services from

16 the federally funded research and development centers

17 named in the report required by subsection (b).

18 (e) AUTHORITY TO WAIVE FUNDING LIMITATION.—

19 The Secretary of Defense may waive the limitation regard20 ing the maximum funding amount that applies under sub21 section (a) to a federally funded research and development

22 center. Whenever the Secretary proposes to make such a

23 waiver, the Secretary shall submit to the congressional de24 fense committees notice of the proposed waiver and the

25 reasons for the waiver. The waiver may then be made only
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1 after the end of the 60-day period that begins on the date

2 on which the notice is submitted to those committees, un3 less the Secretary determines that it is essential to the

4 national security that funds be obligated for work at that

5 center in excess of that limitation before the end of such

6 period and notifies the congressional defense committees

7 of that determination and the reasons for the determina8 tion.

9 (f) UNDISTRIBUTED REDUCTION.—The total amount

10 authorized to be appropriated for research, development,

11 test, and evaluation in section 201 is hereby reduced by

12 $52,650,000.

13 Subtitle C—Missile Defense

14 Programs

15 SEC. 221. COMPLIANCE OF BALLISTIC MISSILE DEFENSE

16 SYSTEMS AND COMPONENTS WITH ABM

17 TREATY.

18 (a) REQUIRED COMPLIANCE REVIEW FOR BRILLIANT

19 EYES.—The Secretary of Defense shall review the space20 based, midcourse missile tracking system known as Bril21 liant Eyes to determine whether, and under what condi22 tions, the development, testing, and deployment of that

23 system in conjunction with a theater ballistic missile de24 fense system, with a limited national missile defense sys25 tem, and with both such systems, would be in compliance
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1 with the ABM Treaty, including the interpretation of that

2 treaty set forth in the enclosure to the July 13, 1993,

3 ACDA letter.

4 (b) LIMITATION.—Of the funds appropriated pursu5 ant to the authorizations of appropriations in section 201

6 that are made available for the Brilliant Eyes program,

7 not more than $50,000,000 may be obligated until the

8 Secretary of Defense submits to the appropriate congres9 sional committees a report on the compliance of the Bril10 liant Eyes program with the ABM Treaty.

11 (c) COMPLIANCE REVIEW FOR NAVY UPPER TIER

12 SYSTEM.—(1) If the funds made available for fiscal year

13 1995 for the theater ballistic missile program known as

14 the ‘‘Navy Upper Tier’’ program pursuant to the author15 izations of appropriations in section 201 or otherwise ex16 ceed $17,725,000, the Secretary of Defense shall review

17 the Navy Upper Tier program to determine whether the

18 development, testing, and deployment of that system

19 would be in compliance with the ABM Treaty, including

20 the interpretation of the Treaty set forth in the enclosure

21 to the July 13, 1993, ACDA letter.

22 (2) In the event a compliance review is necessary

23 under paragraph (1), not more than $17,725,000 may be

24 obligated for the Navy Upper Tier program before the

25 date on which the Secretary submits to the appropriate
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1 congressional committees a report on the compliance of

2 the Navy Upper Tier program with the ABM Treaty.

3 (d) DEFINITIONS.—In this section:

4 (1) The term ‘‘July 13, 1993, ACDA letter’’

5 means the letter dated July 13, 1993, from the Act6 ing Director of the Arms Control and Disarmament

7 Agency to the chairman of the Committee on For8 eign Relations of the Senate relating to the correct

9 interpretation of the ABM Treaty and accompanied

10 by an enclosure setting forth such interpretation.

11 (2) The term ‘‘ABM Treaty’’ means the Treaty

12 between the United States of America and the

13 Union of Soviet Socialist Republics on the Limita14 tion of Anti-Ballistic Missiles, signed in Moscow on

15 May 26, 1972.

16 (3) The term ‘‘appropriate congressional com17 mittees’’ means—

18 (A) the Committee on Armed Services, the

19 Committee on Foreign Affairs, and the Com20 mittee on Appropriations of the House of Rep21 resentatives; and

22 (B) the Committee on Armed Services, the

23 Committee on Foreign Relations, and the Com24 mittee on Appropriations of the Senate.
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1 SEC. 222. REVISIONS TO THE MISSILE DEFENSE ACT OF

2 1991.

3 The Missile Defense Act of 1991 (part C of title II

4 of Public Law 102–190; 10 U.S.C. 2431 note) is amend5 ed—

6 (1) by striking out sections 235, 236, and 237;

7 (2) in section 238, by inserting before the pe8 riod at the end of the second sentence the following:

9 ‘‘, and shall submit to the Congress additional in10 terim reports on the progress of such negotiations at

11 six-month intervals thereafter until such time as the

12 President notifies the congressional defense commit13 tees that such negotiations have been concluded or

14 terminated’’; and

15 (3) by redesignating section 238, 239, and 240

16 as sections 234, 235, and 236, respectively.

17 SEC. 223. LIMITATION.

18 No funds appropriated pursuant to an authorization

19 of appropriations in this title or otherwise made available

20 for fiscal year 1995 for programs managed by the Ballistic

21 Missile Defense Organization may be obligated for such

22 programs until the Secretary of Defense submits to Con23 gress the report required by section 235(b) of the National

24 Defense Authorization Act for Fiscal Year 1994 (Public

25 Law 103–160; 107 Stat. 1598).
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1 Subtitle D—Defense Conversion,

2 Reinvestment, and Transition

3 Assistance Matters

4 SEC. 231. FUNDING OF DEFENSE TECHNOLOGY REINVEST5 MENT PROGRAMS FOR FISCAL YEAR 1995.

6 (a) FUNDS AVAILABLE.—Of the amount authorized

7 to be appropriated under section 201 for Defense-wide ac8 tivities, $625,000,000 shall be available for activities de9 scribed in the defense reinvestment program element of

10 the budget of the Department of Defense for fiscal year

11 1995.

12 (b) ALLOCATION OF FUNDS.—The funds made avail13 able under subsection (a) shall be allocated as follows:

14 (1) $245,000,000 shall be available for defense

15 dual-use critical technology partnerships under sec16 tion 2511 of title 10, United States Code.

17 (2) $80,000,000 shall be available for commer18 cial-military integration partnerships under section

19 2512 of such title.

20 (3) $80,000,000 shall be available for defense

21 regional technology alliances under section 2513 of

22 such title.

23 (4) $30,000,000 shall be available for defense

24 advanced manufacturing technology partnerships

25 under section 2522 of such title.
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1 (5) $50,000,000 shall be available for support

2 of manufacturing extension programs under section

3 2523 of such title.

4 (6) $25,000,000 shall be available for defense

5 manufacturing engineering education grants under

6 section 2196 of such title.

7 (7) $30,000,000 shall be available for the ad8 vanced materials synthesis and processing partner9 ship program.

10 (8) $35,000,000 shall be available for the agile

11 manufacturing/enterprise integration program.

12 (9) $40,000,000 shall be available for the mari13 time technology program, as provided for in section

14 1352(c)(2) of the National Shipbuilding and Ship15 yard Conversion Act of 1993 (subtitle D of title XIII

16 of Public Law 103–160; 107 Stat. 1809; 10 U.S.C.

17 2501 note).

18 (10) $10,000,000 shall be available for grants

19 under section 2198 of title 10, United States Code,

20 to United States institutions of higher education and

21 other United States not-for-profit organizations to

22 support the management training program in Japa23 nese language and culture.

24 (c) AVAILABILITY OF FUNDS FOR FISCAL YEAR 1994

25 PROJECTS.—Funds made available under subsection (a)
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1 may also be used to make awards to projects of the types

2 that were solicited under programs referred to in sub3 section (b) in fiscal year 1994.

4 SEC. 232. FINANCIAL COMMITMENT REQUIREMENTS FOR

5 SMALL BUSINESS CONCERNS FOR PARTICI6 PATION IN TECHNOLOGY REINVESTMENT

7 PROJECTS.

8 (a) DEFENSE DUAL-USE CRITICAL TECHNOLOGY

9 PARTNERSHIPS.—Section 2511(c) of title 10, United

10 States Code, is amended by adding at the end the follow11 ing new paragraph:

12 ‘‘(3) The Secretary shall consider a partnership pro13 posal submitted by a small business concern without re14 gard to the ability of the small business concern to imme15 diately meet its share of the anticipated partnership costs.

16 Upon the selection of a partnership proposal submitted by

17 a small business concern, the Secretary shall extend to the

18 small business concern a period of not less than 120 days

19 within which to arrange to meet its financial commitment

20 requirements under the partnership from sources other

21 than a person of a foreign country. If the Secretary deter22 mines upon the expiration of that period that the small

23 business concern will be unable to meet its share of the

24 anticipated partnership costs, the Secretary may revoke
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1 the selection of the partnership proposal submitted by the

2 small business concern.’’.

3 (b) COMMERCIAL-MILITARY INTEGRATION PARTNER4 SHIPS.—Section 2512(c)(3) of such title is amended by

5 adding at the end the following new subparagraph:

6 ‘‘(C) The Secretary shall consider a partnership pro7 posal submitted by a small business concern without re8 gard to the ability of the small business concern to imme9 diately meet its share of the anticipated partnership costs.

10 Upon the selection of a partnership proposal submitted by

11 a small business concern, the Secretary shall extend to the

12 small business concern a period of not less than 120 days

13 within which to arrange to meet its financial commitment

14 requirements under the partnership from sources other

15 than a person of a foreign country. If the Secretary deter16 mines upon the expiration of that period that the small

17 business concern will be unable to meet its share of the

18 anticipated partnership costs, the Secretary may revoke

19 the selection of the partnership proposal submitted by the

20 small business concern.’’.

21 (c) REGIONAL TECHNOLOGY ALLIANCES ASSISTANCE

22 PROGRAM.—Section 2513(e) of such title is amended by

23 adding at the end the following new paragraph:

24 ‘‘(4) The Secretary shall consider a proposal for a

25 regional technology alliance that is submitted by a small
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1 business concern without regard to the ability of the small

2 business concern to immediately meet its share of the an3 ticipated costs of the alliance. Upon the selection of a pro4 posal submitted by a small business concern, the Secretary

5 shall extend to the small business concern a period of not

6 less than 120 days within which to arrange to meet its

7 financial commitment requirements under the regional

8 technology alliance from sources other than a person of

9 a foreign country. If the Secretary determines upon the

10 expiration of that period that the small business concern

11 will be unable to meet its share of the anticipated costs,

12 the Secretary may revoke the selection of the proposal sub13 mitted by the small business concern.’’.

14 (d) DEFINITION OF PERSON OF A FOREIGN COUN15 TRY.—Section 2491 of such title is amended by adding

16 at the end the following new paragraph:

17 ‘‘(16) The term ‘person of a foreign country’

18 has the meaning given such term in section 3502(d)

19 of the Primary Dealers Act of 1988 (22 U.S.C.

20 5342(d)).’’.

21 SEC. 233. CONDITIONS ON FUNDING OF DEFENSE TECH22 NOLOGY REINVESTMENT PROJECTS.

23 (a) BENEFITS TO UNITED STATES ECONOMY.—In

24 providing for the establishment or financial support of

25 partnerships and other cooperative arrangements under
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1 chapter 148 of title 10, United States Code, using funds

2 made available under section 231, the Secretary of De3 fense shall ensure that the principal economic benefits of

4 such partnerships and other arrangements accrue to the

5 economy of the United States.

6 (b) USE OF COMPETITIVE SELECTION PROCE7 DURES.—Funds made available under subsection (a) of

8 section 231 for defense reinvestment programs described

9 in subsection (b) of such section shall be provided only

10 to projects selected using competitive procedures pursuant

11 to a solicitation incorporating cost-sharing requirements

12 for the non-Federal Government participants in the

13 projects.

14 SEC. 234. FEDERAL DEFENSE LABORATORY

15 DIVERSIFICATION AND NAVY REINVESTMENT

16 IN THE TECHNOLOGY AND INDUSTRIAL BASE.

17 (a) REQUIREMENT FOR PROGRAMS.—(1) Subchapter

18 III of chapter 148 of title 10 is amended by inserting at

19 the end thereof the following:

20 ‘‘SEC. 2519. FEDERAL DEFENSE LABORATORY DIVERSI21 FICATION PROGRAM.

22 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary

23 of Defense shall conduct a program in accordance with

24 this section for the purpose of promoting cooperation be25 tween Department of Defense laboratories and industry
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1 on research and development of dual-use technologies in

2 order to further the national security objectives set forth

3 in section 2501(a) of this title.

4 ‘‘(b) PARTNERSHIPS.—(1) The Secretary shall pro5 vide for the establishment under the program of coopera6 tive arrangements (hereinafter in this section referred to

7 as ‘partnerships’) between a Department of Defense lab8 oratory and eligible firms and nonprofit research corpora9 tions referred to in section 2511(b) of this title. A partner10 ship may also include one or more additional Federal lab11 oratories, institutions of higher education, agencies of

12 State and local governments, and other entities, as deter13 mined appropriate by the Secretary.

14 ‘‘(2) For purposes of this section, a federally funded

15 research and development center shall be considered a De16 partment of Defense laboratory if the center is sponsored

17 by the Department of Defense.

18 ‘‘(c) ASSISTANCE AUTHORIZED.—(1) The Secretary

19 may make grants, enter into contracts, enter into coopera20 tive agreements and other transactions pursuant to section

21 2371 of this title, and enter into cooperative research and

22 development agreements under section 12 of the Steven23 son-Wydler Technology Innovation Act of 1980 (15 U.S.C.

24 3710a) in order to establish partnerships.
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1 ‘‘(2) Subject subsection (d), the Secretary may pro2 vide a partnership with technical and other assistance in

3 order to facilitate the achievement of the purpose of this

4 section.

5 ‘‘(d) FINANCIAL COMMITMENT OF NON-FEDERAL

6 GOVERNMENT PARTICIPANTS.—(1) The Secretary shall

7 ensure that the non-Federal Government participants in

8 a partnership make a substantial contribution to the total

9 cost of partnership activities. The amount of the contribu10 tion shall be commensurate with the risk undertaken by

11 such participants and the potential benefits of the activi12 ties for such participants.

13 ‘‘(2) The regulations prescribed pursuant to section

14 2511(c)(2) of this title shall apply to in-kind contributions

15 made by non-Federal Government participants in a part16 nership.

17 ‘‘(e) SELECTION PROCESS.—Competitive procedures

18 shall be used in the establishment of partnerships.

19 ‘‘(f) SELECTION CRITERIA.—The criteria for the se20 lection of a proposed partnership for establishment under

21 this section shall include the criteria set forth in section

22 2511(f) of this title.

23 ‘‘(g) REGULATIONS.—The Secretary shall prescribe

24 regulations for the purposes of this section.
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1 ‘‘SEC. 2520. NAVY REINVESTMENT PROGRAM.

2 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary

3 of the Navy shall conduct a program in accordance with

4 this section for the purpose of promoting cooperation be5 tween the Department of the Navy and industry on re6 search and development of dual-use technologies in order

7 to further the national security objectives set forth in sec8 tion 2501(a) of this title.

9 ‘‘(b) PARTNERSHIPS.—The Secretary shall provide

10 for the establishment under the program of cooperative

11 arrangements (hereinafter in this section referred to as

12 ‘partnerships’) between Department of the Navy entities

13 and eligible firms and nonprofit research corporations re14 ferred to in section 2511(b) of this title. A partnership

15 may also include one or more Federal laboratories, institu16 tions of higher education, agencies of State and local gov17 ernments, and other entities, as determined appropriate

18 by the Secretary.

19 ‘‘(c) PROGRAM REQUIREMENTS AND ADMINISTRA20 TION.—Subsections (c) through (f) of section 2519 of this

21 title shall apply in the administration of the program.

22 ‘‘(d) SELECTION CRITERIA.—In addition to the selec23 tion criteria referred to in section 2519(f) of this title, the

24 criteria for the selection of a proposed partnership for es25 tablishment under this section shall include the potential

26 effectiveness of the partnership in the further development
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1 and application of each technology proposed to be devel2 oped by the partnership for Navy acquisition programs.

3 ‘‘(e) REGULATIONS.—The Secretary shall prescribe

4 regulations for the purposes of this section.’’.

5 (2) The table of sections at the beginning of such sub6 chapter is amended by adding at the end the following:

‘‘2519. Federal Defense Laboratory Diversification Program.

‘‘2520. Navy Reinvestment Program.’’.

7 (b) CLARIFYING AMENDMENT.—Section 2491(5) of

8 title 10, United States Code, is amended by inserting be9 fore the period at the end the following: ‘‘, and includes

10 a federally funded research and development center spon11 sored by a Federal agency’’.

12 (c) FUNDING.—(1) Of the amount authorized to be

13 appropriated in section 201(4), $56,600,000 shall be

14 available for the Federal Defense Laboratory Diversifica15 tion Program under section 2519 of title 10, as added by

16 subsection (a)(1).

17 (2) Of the amount authorized to be appropriated in

18 section 201(2), $50,000,000 shall be available for the

19 Navy Reinvestment Program under section 2520 of title

20 10, as added by subsection (a)(1).
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1 Subtitle E—Other Matters

2 SEC. 241. COOPERATIVE RESEARCH AND DEVELOPMENT

3 AGREEMENTS WITH NATO ORGANIZATIONS.

4 (a) APPLICABILITY OF EXISTING AUTHORITY TO

5 NATO ORGANIZATIONS.—Section 2350a of title 10, Unit6 ed States Code, is amended in subsections (a), (e)(2), and

7 (i)(1) by inserting ‘‘or NATO organizations’’ after ‘‘major

8 allies of the United States’’ each place it appears.

9 (b) NATO ORGANIZATION DEFINED.—Subsection (i)

10 of such section is amended by adding at the end the follow11 ing new paragraph:

12 ‘‘(4) The term ‘NATO organization’ means any

13 North Atlantic Treaty Organization subsidiary body

14 referred to in section 2350(2) of this title and any

15 other organization of the North Atlantic Treaty

16 Organization.’’.

17 SEC. 242. DEFENSE WOMEN’S HEALTH RESEARCH PRO18 GRAM.

19 (a) CONTINUATION OF PROGRAM.—The Secretary of

20 Defense shall continue the Defense Women’s Health Re21 search Program established in response to the enactment

22 of section 251 of the National Defense Authorization Act

23 for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

24 1606).
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1 (b) PARTICIPATION BY ALL MILITARY DEPART2 MENTS.—The Departments of the Army, Navy, and Air

3 Force shall each participate in the activities under the pro4 gram.

5 (c) ARMY TO BE EXECUTIVE AGENT.—The Sec6 retary of Defense shall designate the Secretary of the

7 Army to be the executive agent for administering the pro8 gram.

9 (d) PROGRAM ACTIVITIES.—The program shall in10 clude the following activities regarding health risks and

11 health care for women in the Armed Forces:

12 (1) The coordination and support activities de13 scribed in section 251 of Public Law 103–160.

14 (2) Epidemiologic research regarding women

15 deployed for military operations, including research

16 on patterns of illness and injury, environmental and

17 occupational hazards (including exposure to toxins),

18 side-effects of pharmaceuticals used by women so de19 ployed, psychological stress associated with military

20 training, deployment, combat and other traumatic

21 incidents, and other conditions of life, and human

22 factor research regarding women so deployed.

23 (3) Development of a data base to facilitate

24 long-term research studies on issues related to the

25 health of women in military service, and continued
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1 development and support of a women’s health infor2 mation clearinghouse to serve as an information re3 source for clinical, research, and policy issues affect4 ing women in the Armed Forces.

5 (4) Research on policies and standards issues,

6 including research supporting the development of

7 military standards related to training, operations,

8 deployment, and retention and the relationship be9 tween such activities and factors affecting women’s

10 health.

11 (5) Research on interventions having a potential

12 for addressing conditions of military service that ad13 versely affect the health of women in the Armed

14 Forces.

15 (e) IMPLEMENTATION PLAN.—If, before October 1,

16 1995, the Secretary of Defense changes the implementa17 tion plan for the program that the Secretary submitted

18 to the Committees on Armed Services of the Senate and

19 the House of Representatives on May 2, 1994, the Sec20 retary shall submit the modified plan to such committees

21 before executing the changes.

22 (f) FUNDING.—Of the amount authorized to be ap23 propriated pursuant to section 201, $40,000,000 shall be

24 available for the Defense Women’s Health Research Pro25 gram referred to in subsection (a).
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1 SEC. 243. REQUIREMENT FOR SUBMISSION OF ANNUAL RE2 PORT OF THE SEMICONDUCTOR TECH3 NOLOGY COUNCIL TO CONGRESS.

4 Section 273(b)(2)(I) of the National Defense Author5 ization Act for Fiscal Years 1988 and 1989 (15 U.S.C.

6 4603) is amended by inserting ‘‘and submit to Congress

7 by March 31 of each year after ‘‘Publish’’.

8 SEC. 244. REPORT ON OCEANOGRAPHIC SURVEY AND RE9 SEARCH REQUIREMENTS TO SUPPORT LIT10 TORAL WARFARE.

11 (a) REPORT REQUIRED.—Not later than March 1,

12 1995, the Secretary of the Navy shall submit to Congress

13 a report on the oceanographic survey and research and

14 development requirements needed to support Navy oper15 ations in littoral regions.

16 (b) CONTENT OF REPORT.—The report shall contain

17 the following:

18 (1) An identification of unique properties, in19 cluding acoustics, bathymetry, bottom type, and

20 ocean dynamics that affect shallow water operations

21 in littoral regions.

22 (2) A list of the principal littoral regions that—

23 (A) designates each region as high, me24 dium, or low priority based on the probable

25 need for Navy operations in such regions; and
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1 (B) for each region, is annotated to iden2 tify—

3 (i) the date of the most recent de4 tailed survey; and

5 (ii) the extent to which that survey

6 provides insight into the region’s properties

7 identified pursuant to paragraph (1).

8 (3) An assessment of the Navy’s current and

9 projected access to each region for surveying pur10 poses.

11 (4) An assessment of the ability of current

12 oceanographic survey and research assets to develop

13 the information identified in paragraph (1).

14 SEC. 245. LANSCE/LAMPF UPGRADES.

15 Of the amounts authorized to be appropriated by sec16 tion 201(4), $20,000,000 shall be available to complete

17 the Los Alamos Neutron Scattering Experiment/Los Ala18 mos Meson Physics Facility upgrades at the Los Alamos

19 National Laboratory, Los Alamos, New Mexico.

20 SEC. 246. LIVE-FIRE SURVIVABILITY TESTING OF F–22 AIR21 CRAFT.

22 (a) AUTHORITY FOR RETROACTIVE WAIVER.—The

23 Secretary of Defense may, in accordance with section

24 2366(c) of title 10, United States Code, waive for the F–

25 22 aircraft program the survivability tests required by
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1 that section, notwithstanding that such program has en2 tered full-scale engineering development.

3 (b) REPORTING REQUIREMENT.—(1) If the Secretary

4 of Defense submits in accordance with section 2366(c)(1)

5 of title 10, United States Code, a certification that live6 fire testing of the F–22 aircraft would be unreasonably

7 expensive and impractical, the Secretary of Defense shall

8 require that F–22 aircraft components and subsystems be

9 made available for an alternative live-fire test program.

10 (2) The components and subsystem required by the

11 Secretary to be made available for such a program shall

12 be components that—

13 (A) could affect the survivability of the F–22

14 aircraft; and

15 (B) are sufficiently large and realistic that

16 meaningful conclusions about the survivability of F–

17 22 aircraft can be drawn from the test results.

18 (c) FUNDING.—Funds available for the F–22 aircraft

19 program may be used for carrying out any alternative live20 fire testing program for F–22 aircraft.

21 SEC. 247. UNIVERSITY RESEARCH INITIATIVE SUPPORT

22 PROGRAM.

23 Of the amounts authorized to be appropriated under

24 section 201, $10,000,000 shall be available for the Univer25 sity Research Initiative Support Program established pur-
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1 suant to section 802 of the National Defense Authoriza2 tion Act for Fiscal Year 1994 (Public Law 103–160; 107

3 Stat. 1701; 10 U.S.C. 2358 note).

4 SEC. 248. MANUFACTURING SCIENCE AND TECHNOLOGY

5 PROGRAM.

6 (a) PROGRAM AUTHORIZED.—(1) Section 2525 of

7 title 10, United States Code, is amended to read as fol8 lows:

9 ‘‘SEC. 2525. MANUFACTURING SCIENCE AND TECHNOLOGY

10 PROGRAM.

11 ‘‘(a) ESTABLISHMENT.—The Secretary of Defense

12 shall establish a Manufacturing Science and Technology

13 Program to further the national security objectives of sec14 tion 2501(a) of this title. The Under Secretary of Defense

15 for Acquisition and Technology shall administer the pro16 gram.

17 ‘‘(b) PURPOSE.—The purpose of the program is to

18 enhance the capability of industry to meet the manufac19 turing needs of the Department of Defense.

20 ‘‘(c) EXECUTION.—The Secretary may carry out

21 projects under the program through the Secretaries of the

22 military departments and the heads of Defense Agencies.

23 ‘‘(d) COMPETITION AND COST SHARING.—(1) Com24 petitive procedures shall be used for awarding all grants
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1 and entering into all contracts, cooperative agreements,

2 and other transactions under the program.

3 ‘‘(2) A grant may not be awarded under the program,

4 and a contract, cooperative agreement, or other trans5 action may not be entered into under the program, on any

6 basis other than a cost-sharing basis unless the Secretary

7 of Defense determines that the grant, contract, coopera8 tive agreement, or other transaction, as the case may be,

9 is for a program that—

10 ‘‘(A) is not likely to have any immediate and di11 rect commercial application; or

12 ‘‘(B) is of sufficiently high risk to discourage

13 cost sharing by non-Federal Government sources.’’.

14 (2) The item relating to section 2525 in the table of

15 sections at the beginning of subchapter IV of chapter 148

16 of such title is amended to read as follows:

‘‘2525. Manufacturing Science and Technology Program.’’.

17 (b) FUNDING.—Of the amounts appropriated pursu18 ant to section 201, not more than $125,000,000 shall be

19 available for the Manufacturing Science and Technology

20 Program under section 2525 of title 10, United States

21 Code (as amended by subsection (a)), of which—

22 (1) not more than $30,000,000 shall be avail23 able for the Army;

24 (2) not more than $35,000,000 shall be avail25 able for the Navy;
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1 (3) not more than $50,000,000 shall be avail2 able for the Air Force; and

3 (4) not more than $10,000,000 shall be avail4 able for the Defense Logistics Agency.

5 SEC. 249. DEFENSE EXPERIMENTAL PROGRAM TO STIMU6 LATE COMPETITIVE RESEARCH.

7 (a) PROGRAM REQUIRED.—The Secretary of De8 fense, acting through the Director of Defense Research

9 and Engineering, shall carry out a Defense Experimental

10 Program to Stimulate Competitive Research (DEPSCoR)

11 as part of the university research programs of the Depart12 ment of Defense.

13 (b) PROGRAM OBJECTIVES.—The objectives of the

14 program are as follows:

15 (1) To enhance the capabilities of institutions

16 of higher education in eligible States to develop,

17 plan, and execute science and engineering research

18 that is competitive under the peer-review systems

19 used for awarding Federal research assistance.

20 (2) To increase the probability of long-term

21 growth in the competitively awarded financial assist22 ance that institutions of higher education in eligible

23 States receive from the Federal Government for

24 science and engineering research.
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1 (c) PROGRAM ACTIVITIES.—In order to achieve the

2 program objectives, the following activities are authorized

3 under the program:

4 (1) Competitive award of research grants.

5 (2) Competitive award of financial assistance

6 for graduate students.

7 (d) ELIGIBLE STATES.—(1) The Director of the Na8 tional Science Foundation shall designate which States are

9 eligible States for the purposes of this section and shall

10 notify the Director of Defense Research and Engineering

11 of the States so designated.

12 (2) The Director of the National Science Foundation

13 shall designate a State as an eligible State if, as deter14 mined by the Director—

15 (A) the institutional average amount of Federal

16 financial assistance for research and development re17 ceived by the institutions of higher education in the

18 State for the fiscal year preceding the fiscal year for

19 which the designation is effective, or for the last fis20 cal year for which statistics are available, is less

21 than the amount equal to 50 percent of the national

22 institutional average amount of Federal financial as23 sistance for research and development received by

24 the institutions of higher education in the United
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1 States for such preceding or last fiscal year, as the

2 case may be;

3 (B) the State has demonstrated a commitment

4 to developing research bases in the State and to im5 proving science and engineering research and edu6 cation programs at institutions of higher education

7 in the State; and

8 (C) the State is an eligible State for purposes

9 of the Experimental Program to Stimulate Competi10 tive Research conducted by the National Science

11 Foundation.

12 (e) COORDINATION WITH SIMILAR FEDERAL PRO13 GRAMS.—(1) The Secretary shall consult with the Director

14 of the National Science Foundation and the Director of

15 the Office of Science and Technology Policy in the plan16 ning, development, and execution of the program and shall

17 coordinate the program with the Experimental Program

18 to Stimulate Competitive Research conducted by the Na19 tional Science Foundation and with similar programs

20 sponsored by other departments and agencies of the Fed21 eral Government.

22 (2) All solicitations under the Defense Experimental

23 Program to Stimulate Competitive Research shall be made

24 to, and all awards shall be made through, the State com25 mittees established for purposes of the Experimental Pro-
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1 gram to Stimulate Competitive Research conducted by the

2 National Science Foundation.

3 (3) A State committee referred to in paragraph (2)

4 shall ensure that activities carried out in the State of that

5 committee under the Defense Experimental Program to

6 Stimulate Competitive Research are coordinated with the

7 activities carried out in the State under other similar ini8 tiatives of the Federal Government to stimulate competi9 tive research.

10 TITLE III—OPERATION AND

11 MAINTENANCE

12 Subtitle A—Authorization of

13 Appropriations

14 SEC. 301. OPERATION AND MAINTENANCE FUNDING.

15 Funds are hereby authorized to be appropriated for

16 fiscal year 1995 for the use of the Armed Forces and other

17 activities and agencies of the Department of Defense for

18 expenses, not otherwise provided for, for operation and

19 maintenance in amounts as follows:

20 (1) For the Army, $17,542,914,000.

21 (2) For the Navy, $21,326,470,000.

22 (3) For the Marine Corps, $2,096,695,000.

23 (4) For the Air Force, $18,789,023,000.

24 (5) For Defense-wide activities,

25 $9,994,325,000.
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1 (6) For Medical Programs, Defense,

2 $9,854,459,000.

3 (7) For the Army Reserve, $1,253,709,000.

4 (8) For the Naval Reserve, $828,319,000.

5 (9) For the Marine Corps Reserve,

6 $81,462,000.

7 (10) For the Air Force Reserve,

8 $1,478,990,000.

9 (11) For the Army National Guard,

10 $2,452,148,000.

11 (12) For the Air National Guard,

12 $2,780,178,000.

13 (13) For the National Board for the Promotion

14 of Rifle Practice, $2,544,000.

15 (14) For the Defense Inspector General,

16 $140,798,000.

17 (15) For Drug Interdiction and Counter-drug

18 Activities, Defense-wide, $714,200,000.

19 (16) For the United States Court of Appeals

20 for the Armed Services, $6,126,000.

21 (17) For Environmental Restoration, Defense,

22 $2,180,200,000.

23 (18) For Humanitarian Assistance,

24 $71,900,000.
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1 (19) For Former Soviet Union Threat Reduc2 tion, $400,000,000.

3 (20) For the Contributions for International

4 Peacekeeping and Peace Enforcement Activities

5 Fund, $300,000,000.

6 (21) For support for the 1996 Summer Olym7 pics, $10,000,000.

8 SEC. 302. WORKING CAPITAL FUNDS.

9 Funds are hereby authorized to be appropriated for

10 fiscal year 1995 for the use of the Armed Forces and other

11 activities and agencies of the Department of Defense for

12 providing capital for working capital and revolving funds

13 in amounts as follows:

14 (1) For the Defense Business Operations Fund,

15 $798,400,000.

16 (2) For the National Defense Sealift Fund,

17 $227,800,000.

18 SEC. 303. ARMED FORCES RETIREMENT HOME FUNDING.

19 There is hereby authorized to be appropriated for fis20 cal year 1995 from the Armed Forces Retirement Home

21 Trust Fund the sum of $59,317,000 for the operation of

22 the Armed Forces Retirement Home, including the United

23 States Soldiers’ and Airmen’s Home and the Naval Home.
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1 SEC. 304. NATIONAL SECURITY EDUCATION TRUST FUND

2 OBLIGATIONS.

3 During fiscal year 1995, $14,300,000 is authorized

4 to be obligated from the National Security Education

5 Trust Fund established by section 804(a) of the David L.

6 Boren National Security Education Act of 1991 (50

7 U.S.C. 1904(a)).

8 SEC. 305. TRANSFER FROM NATIONAL DEFENSE STOCK9 PILE TRANSACTION FUND.

10 (a) TRANSFER AUTHORITY.—To the extent provided

11 in appropriations Acts, not more than $250,000,000 is au12 thorized to be transferred from the National Defense

13 Stockpile Transaction Fund to operation and maintenance

14 accounts for fiscal year 1995 in amounts as follows:

15 (1) For the Army, $50,000,000.

16 (2) For the Navy, $50,000,000.

17 (3) For the Air Force, $50,000,000.

18 (4) For Defense-wide activities, $100,000,000.

19 (b) TREATMENT OF TRANSFERS.—Amounts trans20 ferred under this section—

21 (1) shall be merged with, and be available for

22 the same purposes and the same period as, the

23 amounts in the accounts to which transferred; and

24 (2) may not be expended for an item that has

25 been denied authorization of appropriations by Con26 gress.
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1 (c) RELATIONSHIP TO OTHER TRANSFER AUTHOR2 ITY.—The transfer authority provided in this section is in

3 addition to the transfer authority provided in section

4 1001.

5 SEC. 306. SUPPORT FOR THE 1995 SPECIAL OLYMPICS

6 WORLD GAMES.

7 (a) AUTHORITY TO PROVIDE SUPPORT.—The Sec8 retary of Defense may provide logistical support and per9 sonnel services in connection with the 1995 Special Olym10 pics World Games to be held in New Haven, Connecticut.

11 (b) PAY AND NONTRAVEL-RELATED ALLOW12 ANCES.—(1) Except as provided in paragraph (2), the

13 costs for pay and nontravel-related allowances of members

14 of the Armed Forces for the support and services referred

15 to in subsection (a) may not be charged to appropriations

16 made pursuant to the authorization of appropriations in

17 subsection (c).

18 (2) Paragraph (1) does not apply in the case of mem19 bers of a reserve component called or ordered to active

20 duty to provide logistical support and personnel services

21 for the 1995 Special Olympics World Games.

22 (c) AUTHORIZATION OF APPROPRIATIONS.—There is

23 authorized to be appropriated $3,000,000 for the Depart24 ment of Defense for fiscal year 1995 to carry out sub25 section (a).
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1 Subtitle B—Defense Business

2 Operations Fund

3 SEC. 311. PERMANENT AUTHORITY FOR USE OF FUND FOR

4 MANAGING WORKING CAPITAL FUNDS AND

5 CERTAIN ACTIVITIES.

6 Section 316(a) of the National Defense Authorization

7 Act for Fiscal Years 1992 and 1993 (10 U.S.C. 2208

8 note) is amended by striking out ‘‘During’’ and all that

9 follows through ‘‘December 31, 1994, the’’ and inserting

10 in lieu thereof ‘‘The’’.

11 SEC. 312. IMPLEMENTATION OF IMPROVEMENT PLAN.

12 (a) PROGRESS REPORT ON IMPLEMENTATION.—Not

13 later than February 1, 1995, the Secretary of Defense

14 shall submit to the congressional defense committees a re15 port on the progress made in implementing the Defense

16 Business Operations Fund Improvement Plan, dated Sep17 tember, 1993. The report shall describe the progress made

18 in reaching the milestones established in the plan and pro19 vide an explanation for the failure to meet any of the mile20 stones. The Secretary shall submit a copy of the report

21 to the Comptroller General of the United States at the

22 same time the Secretary submits the report to the congres23 sional defense committees.

24 (b) RESPONSIBILITIES OF THE COMPTROLLER GEN25 ERAL.—(1) The Comptroller General shall monitor and
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1 evaluate the progress of the Department of Defense in de2 veloping and implementing the improvement plan referred

3 to in subsection (a).

4 (2) Not later than March 1, 1995, the Comptroller

5 General shall submit to the congressional defense commit6 tees a report containing the following:

7 (A) The findings and conclusions of the Comp8 troller General resulting from the monitoring and

9 evaluation conducted under paragraph (1).

10 (B) An evaluation of the progress report sub11 mitted to the congressional defense committees by

12 the Secretary of Defense pursuant to subsection (a).

13 (C) Any recommendations for legislation or ad14 ministrative action concerning the Fund that the

15 Comptroller General considers appropriate.

16 SEC. 313. LIMITATION ON OBLIGATIONS AGAINST THE CAP17 ITAL ASSET FUND.

18 The Secretary of Defense may not incur obligations

19 against funds in the capital asset subaccount of the De20 fense Business Operations Fund during fiscal year 1995

21 in a total amount in excess of $1,500,000.

22 SEC. 314. LIMITATION ON OBLIGATIONS AGAINST THE SUP23 PLY MANAGEMENT DIVISIONS.

24 (a) LIMITATION.—(1) The Secretary of Defense may

25 not incur obligations against the supply management divi-
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1 sions of the Defense Business Operations Fund during fis2 cal year 1995 in a total amount in excess of 65 percent

3 of the total amount derived from sales from such divisions

4 during that fiscal year.

5 (2) For purposes of determining the amount of obli6 gations incurred against, and sales from, such divisions

7 during fiscal year 1995, the Secretary shall exclude obliga8 tions and sales for fuel, commissary and subsistence items,

9 retail operations, repair of equipment and spare parts in

10 support of repair, direct vendor deliveries, foreign military

11 sales, initial outfitting requiring equipment furnished by

12 the Federal Government, and the cost of operations.

13 (b) WAIVER AUTHORITY.—The Secretary of Defense

14 may waive the limitation in subsection (a) if the Secretary

15 determines that such waiver is necessary in order to main16 tain the readiness and combat effectiveness of the Armed

17 Forces. The Secretary shall immediately notify Congress

18 of any such waiver and the reasons for such waiver.

19 (c) DETERMINATIONS OF EFFECTS OF LIMITATION

20 ON READINESS AND COMBAT EFFECTIVENESS.—Not

21 later than 60 days after the date of the enactment of this

22 Act, the secretaries of the military departments and the

23 Director of the Defense Logistics Agency shall each sub24 mit to the Secretary of Defense a report containing the

25 views of such official on the effects of the limitation in
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1 subsection (a) on the ability of the Department of Defense

2 to maintain the readiness and combat effectiveness of the

3 Armed Forces. If the Secretary of Defense determines,

4 after considering the reports, that the limitation will im5 pair the readiness and combat effectiveness of any of the

6 Armed Forces, the Secretary shall exercise the waiver au7 thority provided in subsection (b).

8 Subtitle C—Environmental Matters

9 SEC. 321. PROHIBITION ON THE PURCHASE OF SURETY

10 BONDS AND OTHER GUARANTEES FOR THE

11 DEPARTMENT OF DEFENSE.

12 No funds appropriated or otherwise made available

13 to the Department of Defense for fiscal year 1995 may

14 be obligated or expended for the purchase of surety bonds

15 or other guarantees of financial responsibility in order to

16 guarantee the performance of any direct function of the

17 Department of Defense.

18 SEC. 322. EXTENSION OF PROHIBITION ON USE OF ENVI19 RONMENTAL RESTORATION FUNDS FOR PAY20 MENT OF FINES AND PENALTIES.

21 None of the funds appropriated for fiscal year 1995

22 pursuant to the authorization of appropriations provided

23 in section 301(17) may be used for the payment of a fine

24 or penalty imposed against the Department of Defense un-
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1 less the act or omission for which the fine or penalty is

2 imposed arises out of activities funded by the account.

3 SEC. 323. PARTICIPATION OF INDIAN TRIBES IN AGREE4 MENTS FOR DEFENSE ENVIRONMENTAL RES5 TORATION.

6 Section 2701(d) of title 10, United States Code, is

7 amended—

8 (1) by striking out ‘‘SERVICE OF OTHER AGEN9 CIES.—The Secretary’’ and inserting in lieu thereof

10 the following: ‘‘SERVICE OF OTHER AGENCIES.—

11 ‘‘(1) IN GENERAL.—The Secretary’’;

12 (2) in paragraph (1), as so designated, by in13 serting ‘‘any Federally recognized Indian tribe or’’

14 before ‘‘any State or local government agency,’’; and

15 (3) by adding at the end the following:

16 ‘‘(2) DEFINITION.—For purposes of this sub17 section, the term ‘Indian tribe’ has the meaning

18 given such term in section 101(36) of the Com19 prehensive Environmental Response, Compensation,

20 and Liability Act of 1980 (42 U.S.C. 9701(36)).’’.
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1 Subtitle D—Matters Relating to De2 partment of Defense Civilian

3 Employees

4 SEC. 331. EXTENSION OF CERTAIN TRANSITION ASSIST5 ANCE AUTHORITIES.

6 (a) REDUCTION-IN-FORCE NOTIFICATION REQUIRE7 MENTS.—Section 4433(b)(2) of the Defense Conversion,

8 Reinvestment, and Transition Assistance Act of 1992 (di9 vision D of Public Law 102–484; 106 Stat. 2721; 5 U.S.C.

10 3502 note) is amended by striking out ‘‘February 1,

11 1998’’ and inserting in lieu thereof ‘‘February 1, 2000’’.

12 (b) SEPARATION PAY.—(1) Section 5597(e) of title

13 5, United States Code, is amended by striking out ‘‘Sep14 tember 30, 1997’’ and inserting in lieu thereof ‘‘Septem15 ber 30, 1999’’.

16 (2) Section 4436(d)(2) of the Defense Conversion,

17 Reinvestment, and Transition Assistance Act of 1992 (5

18 U.S.C. 8348 note) is amended by striking out ‘‘January

19 1, 1998’’ and inserting in lieu thereof ‘‘January 1, 2000’’.

20 (c) RESTORATION OF CERTAIN LEAVE.—Section

21 6304(d)(3) of title 5, United States Code, is amended by

22 striking out ‘‘the closure of an installation’’ and inserting

23 in lieu thereof ‘‘the closure of an installation of the De24 partment of Defense pursuant to the Defense Base Clo25 sure and Realignment Act of 1990 (part A of title XXIX
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1 of Public Law 101–510; 10 U.S.C. 2687 note) during any

2 period, and the closure of any other installation’’.

3 (d) CONTINUED HEALTH BENEFITS.—Section

4 8905a(d)(4)(B) of title 5, United States Code, is amend5 ed—

6 (1) by striking out ‘‘October 1, 1997’’ each

7 place it appears and inserting in lieu thereof ‘‘Octo8 ber 1, 1999’’; and

9 (2) in clause (ii), by striking out ‘‘February 1,

10 1998,’’ and inserting in lieu thereof ‘‘February 1,

11 2000,’’.

12 SEC. 332. EXTENSION AND EXPANSION OF AUTHORITY TO

13 CONDUCT PERSONNEL DEMONSTRATION

14 PROJECTS.

15 (a) CHINA LAKE DEMONSTRATION PROJECT.—(1)

16 Section 6 of the Civil Service Miscellaneous Amendments

17 Act of 1983 (Public Law 98–224; 98 Stat. 49) is amended

18 by striking out ‘‘September 30, 1995,’’.

19 (2) In the event of a reorganization of the organiza20 tion carrying out the personnel demonstration project re21 ferred to in section 6 of Public Law 98–224, such section

22 shall apply with respect to the successor to that organiza23 tion.

24 (b) DEFENSE LABORATORIES PERSONNEL DEM25 ONSTRATION PROJECTS.—(1) The Secretary of Defense
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1 may carry out personnel demonstration projects at De2 partment of Defense laboratories designated by the Sec3 retary as Department of Defense science and technology

4 reinvention laboratories.

5 (2) Each personnel demonstration project carried out

6 under the authority of paragraph (1) shall be similar to

7 the personnel demonstration project that is authorized by

8 section 6 of Public Law 98–224 to be continued at the

9 Naval Weapons Center, China Lake, California, and at the

10 Naval Ocean Systems Center, San Diego, California.

11 (3) If the Secretary carries out a demonstration

12 project at a laboratory pursuant to paragraph (1), section

13 4703 (other than subsection (d)) of title 5, United States

14 Code, shall apply to such demonstration project, except

15 that the authority of the Secretary to carry out the dem16 onstration project is that which is provided in paragraph

17 (1) rather than the authority that is provided in such sec18 tion 4703.
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1 SEC. 333. LIMITATION ON PAYMENT OF SEVERANCE PAY TO

2 CERTAIN EMPLOYEES TRANSFERRING TO

3 EMPLOYMENT POSITIONS IN

4 NONAPPROPRIATED FUND INSTRUMENTAL5 ITIES.

6 (a) IN GENERAL.—Section 5595 of title 5, United

7 States Code, is amended by adding at the end the follow8 ing:

9 ‘‘(h)(1) Severance pay under this section may not be

10 paid to—

11 ‘‘(A) a person described in paragraph (4)(A)

12 during any period in which the person is employed

13 in a defense nonappropriated fund instrumentality;

14 or

15 ‘‘(B) a person described in paragraph (4)(B)

16 during any period in which the person is employed

17 in a Coast Guard nonappropriated fund instrumen18 tality.

19 ‘‘(2)(A) Except as provided in subparagraph (B),

20 payment of severance pay to a person referred to in para21 graph (1) may be resumed upon any involuntary separa22 tion of the person from the position of employment in a

23 nonappropriated fund instrumentality, not by removal for

24 cause on charges of misconduct, delinquency, or ineffi25 ciency.
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1 ‘‘(B) Payment of severance pay may not be resumed

2 under subparagraph (A) in the case of a person who, upon

3 separation, is entitled to immediate payment of retired or

4 retainer pay as a member or former member of the uni5 formed services or to an immediate annuity under—

6 ‘‘(i) a retirement system for persons retiring

7 from employment by a nonappropriated fund instru8 mentality;

9 ‘‘(ii) subchapter III of chapter 83 of this title;

10 ‘‘(iii) subchapter II of chapter 84 of this title;

11 or

12 ‘‘(iv) any other retirement system of the Fed13 eral Government for persons retiring from employ14 ment by the Federal Government.

15 ‘‘(3) Upon resumption of payment of severance pay

16 under paragraph (2)(A) in the case of a person separated

17 as described in such paragraph, the amount of the sever18 ance pay so payable for a period shall be reduced (but

19 not below zero) by the portion (if any) of the amount of

20 any severance pay payable for such period to the person

21 by the nonappropriated fund instrumentality that is at22 tributable to credit for service taken into account under

23 subsection (c) in the computation of the amount of the

24 severance pay so resumed.
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1 ‘‘(4) Paragraph (1) applies to a person who, on or

2 after January 1, 1987, moves without a break in service—

3 ‘‘(A) from employment in the Department of

4 Defense that is not employment in a defense

5 nonappropriated fund instrumentality to employment

6 in a defense nonappropriated fund instrumentality;

7 or

8 ‘‘(B) from employment in the Coast Guard that

9 is not employment in a Coast Guard

10 nonappropriated fund instrumentality to employment

11 in a Coast Guard nonappropriated fund instrumen12 tality.

13 ‘‘(5) The Secretary of Defense, in consultation with

14 the Secretary of Transportation, shall prescribe regula15 tions to carry out this subsection.

16 ‘‘(6) In this subsection:

17 ‘‘(A) The term ‘defense nonappropriated fund

18 instrumentality’ means a nonappropriated fund in19 strumentality of the Department of Defense.

20 ‘‘(B) The term ‘Coast Guard nonappropriated

21 fund instrumentality’ means a nonappropriated fund

22 instrumentality of the Coast Guard.

23 ‘‘(C) The term ‘nonappropriated fund instru24 mentality’ means a nonappropriated fund instrumen25 tality described in section 2105(c) of this title.’’.
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1 (b) APPLICABILITY.—Subsection (h) of section 5595

2 of title 5, United States Code, as added by subsection (a),

3 shall take effect on the date of the enactment of this Act

4 and apply with respect to pay periods that begin on or

5 after such date.

6 SEC. 334. RETIREMENT CREDIT FOR CERTAIN SERVICE IN

7 NONAPPROPRIATED FUND INSTRUMENTAL8 ITIES BEFORE JANUARY 1, 1987.

9 (a) CIVIL SERVICE RETIREMENT AND DISABILITY

10 SYSTEM.—Section 8332(b) of title 5, United States Code,

11 is amended—

12 (1) in paragraph (15) by striking out ‘‘and’’ at

13 the end;

14 (2) in paragraph (16) by striking out the period

15 at the end and inserting in lieu thereof ‘‘; and’’;

16 (3) by inserting after paragraph (16) the fol17 lowing new paragraph:

18 ‘‘(17) service that an individual performed as

19 an employee described in section 2105(c) of this title

20 for at least 12 months during the period beginning

21 on January 1, 1966, and ending on December 31,

22 1986, other than service creditable under section

23 8411(b)(5) of this title, if—

24 ‘‘(A) such service involved conducting a

25 program described in paragraph (16)(A);
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1 ‘‘(B) such individual was an employee sub2 ject to this subchapter or chapter 84 of this

3 title on January 1, 1994;

4 ‘‘(C) within 14 months after the date of

5 the enactment of the National Defense Author6 ization Act for Fiscal Year 1995, and in accord7 ance with regulations issued by the Office of

8 Personnel Management, the individual files ap9 propriate written application with the Office of

10 Personnel Management; and

11 ‘‘(D) the individual deposits to the credit

12 of the Fund for each period of such service the

13 amount (including interest) determined in ac14 cordance with the provisions of section 8334(c)

15 of this title that relate to employees.’’; and

16 (4) in the last sentence—

17 (A) by striking out ‘‘described in para18 graph (16)’’ and inserting in lieu thereof ‘‘de19 scribed in paragraphs (16) and (17)’’; and

20 (B) by striking out ‘‘for such appropriated

21 fund instrumentality’’ and inserting in lieu

22 thereof ‘‘for such nonappropriated fund instru23 mentality’’.

24 (b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—

25 Section 8411 of such title is amended—
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1 (1) in subsection (b)—

2 (A) in paragraph (3), by striking out

3 ‘‘and’’ at the end;

4 (B) in paragraph (4), by striking out the

5 period at the end and inserting in lieu thereof

6 ‘‘; and’’; and

7 (C) by inserting after paragraph (4) the

8 following new paragraph:

9 ‘‘(5) a period of service that an individual per10 formed as an employee described in section 2105(c)

11 of this title for at least 12 months during the period

12 beginning on January 1, 1966, and ending on De13 cember 31, 1986, if—

14 ‘‘(A) such service involved conducting a

15 program described in section 8332(b)(16)(A) of

16 this title;

17 ‘‘(B) upon an election to become subject to

18 this chapter under section 301 of the Federal

19 Employees’ Retirement System Act of 1986 (5

20 U.S.C. 8331 note), such service would (subject

21 to the making of required deposits) have been

22 creditable under this chapter pursuant to sub23 paragraph (B)(i) or (C) of section 302(a)(1) of

24 such Act had the service been performed as an
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1 employee subject to subchapter III of chapter

2 83 of this title;

3 ‘‘(C) such individual was an employee sub4 ject to this chapter on January 1, 1994;

5 ‘‘(D) within 14 months after the date of

6 the enactment of the National Defense Author7 ization Act for Fiscal Year 1995, and in accord8 ance with regulations issued by the Office of

9 Personnel Management, the individual files ap10 propriate written application with the Office of

11 Personnel Management; and

12 ‘‘(E) the individual makes the deposit or

13 deposits required by subsection (f).’’;

14 (2) in subsection (f)(2), by striking out ‘‘sub15 section (b)(3)’’ and inserting in lieu thereof ‘‘para16 graph (3) or (5) of subsection (b)’’; and

17 (3) by adding at the end the following new sub18 sections:

19 ‘‘(i) The Office of Personnel Management shall ac20 cept, for the purposes of this chapter, the certification of

21 the head of a nonappropriated fund instrumentality of the

22 United States concerning service of the type described in

23 subsection (b)(5) which was performed for such

24 nonappropriated fund instrumentality.
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1 ‘‘(j) In the case of an individual who has creditable

2 service under subsection (b)(5) for purposes of this chap3 ter and creditable service under section 8332(b)(17) for

4 purposes of subchapter III of chapter 83 of this title, and

5 has not previously made an election under section 301 of

6 the Federal Employees’ Retirement Act of 1986 (5 U.S.C.

7 8331 note) to become subject to this chapter, section 302

8 of such Act shall apply to such individual as if the individ9 ual had made a timely election under section 301(a)(2)

10 of such Act to become subject to this chapter effective on

11 the date on which the individual became subject to this

12 chapter (without regard to whether that date is before,

13 on, or after June 30, 1987).’’.

14 SEC. 335. TRAVEL, TRANSPORTATION, AND RELOCATION

15 EXPENSES OF EMPLOYEES TRANSFERRING

16 TO THE UNITED STATES POSTAL SERVICE.

17 (a) IN GENERAL.—(1) Subchapter II of chapter 57

18 of title 5, United States Code, is amended by adding at

19 the end the following:

20 ‘‘§ 5735. Travel, transportation, and relocation ex21 penses of employees transferring to the

22 United States Postal Service

23 ‘‘(a) IN GENERAL.—Notwithstanding any other pro24 vision of law, employees of the Department of Defense de25 scribed in subsection (b) may be authorized travel, trans-
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1 portation, and relocation expenses and allowances in con2 nection with appointments referred to in such subsection

3 under the same conditions and to the same extent author4 ized by this subchapter for transferred employees.

5 ‘‘(b) COVERED EMPLOYEES.—Subsection (a) applies

6 to any employee of the Department of Defense who—

7 ‘‘(1) is scheduled for separation from the De8 partment, other than for cause;

9 ‘‘(2) is selected for appointment to a continuing

10 position with the United States Postal Service; and

11 ‘‘(3) accepts the appointment.’’.

12 (2) The table of sections at the beginning of such sub13 chapter is amended by adding at the end the following:

‘‘5735. Travel, transportation, and relocation expenses of employees transferring

to the United States Postal Service.’’.

14 (b) EFFECTIVE DATE.—The amendments made by

15 subsection (a) shall take effect on the date of the enact16 ment of this Act and apply to persons separated from em17 ployment by the Department of Defense on or after such

18 date.

19 SEC. 336. FOREIGN EMPLOYEES COVERED BY THE FOR20 EIGN NATIONAL EMPLOYEES SEPARATION

21 PAY ACCOUNT.

22 Section 1581 of title 10, United States Code, is

23 amended—
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1 (1) by striking out ‘‘foreign national employees

2 of the Department of Defense’’ each place it appears

3 in subsections (a) and (b) and inserting in lieu

4 thereof ‘‘foreign nationals referred to in subsection

5 (e)’’; and

6 (2) by striking out subsection (e) and inserting

7 in lieu thereof the following:

8 ‘‘(e) EMPLOYEES COVERED.—This section applies

9 only with respect to separation pay of foreign nationals

10 employed by the Department of Defense, and foreign na11 tionals employed by a foreign government for the benefit

12 of the Department of Defense, under any of the following

13 agreements that provide for payment of separation pay:

14 ‘‘(1) A contract.

15 ‘‘(2) A treaty.

16 ‘‘(3) A memorandum of understanding with a

17 foreign nation.’’.

18 SEC. 337. INCREASED AUTHORITY TO ACCEPT VOLUNTARY

19 SERVICES.

20 (a) EXPANSION OF AUTHORITY.—The text of section

21 1588 of title 10, United States Code, is amended to read

22 as follows:

23 ‘‘(a) AUTHORITY TO ACCEPT SERVICES.—Subject

24 subsection (b) and notwithstanding section 1342 of title
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1 31, the Secretary concerned may accept from any person

2 the following services:

3 ‘‘(1) Voluntary medical services, dental services,

4 nursing services, or other health-care related serv5 ices.

6 ‘‘(2) Voluntary services to be provided for a

7 museum or a natural resources program.

8 ‘‘(3) Voluntary services to be provided for pro9 grams providing services to members of the armed

10 forces and the families of such members, including

11 the following programs:

12 ‘‘(A) Family support programs.

13 ‘‘(B) Child development and youth services

14 programs.

15 ‘‘(C) Library and education programs.

16 ‘‘(D) Religious programs.

17 ‘‘(E) Housing referral programs.

18 ‘‘(F) Programs providing employment as19 sistance to spouses of such members.

20 ‘‘(b) REQUIREMENTS AND LIMITATIONS.—(1) The

21 Secretary concerned shall notify the person of the scope

22 of the services accepted.

23 ‘‘(2) With respect to a person providing voluntary

24 services accepted under subsection (a), the Secretary con25 cerned—
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1 ‘‘(A) shall—

2 ‘‘(i) supervise the person to the same ex3 tent as the Secretary would supervise a com4 pensated employee providing similar services;

5 and

6 ‘‘(ii) ensure that the person is licensed,

7 privileged, has appropriate credentials, or is

8 otherwise qualified under applicable law or reg9 ulations to provide such services; and

10 ‘‘(B) may not—

11 ‘‘(i) place the person in a policy-making

12 position; or

13 ‘‘(ii) except as provided subsection (e),

14 compensate the person for the provision of such

15 services.

16 ‘‘(c) AUTHORITY TO RECRUIT AND TRAIN PERSONS

17 PROVIDING SERVICES.—The Secretary concerned may re18 cruit and train persons to provide voluntary services ac19 cepted under subsection (a).

20 ‘‘(d) STATUS OF PERSONS PROVIDING SERVICES.—

21 (1) Subject to paragraph (3), while providing voluntary

22 services accepted under subsection (a) or receiving train23 ing under subsection (c) a person, other than a person

24 referred to in paragraph (2), shall be considered to be an
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1 employee of the Federal Government only for purposes of

2 the following provisions of law:

3 ‘‘(A) Subchapter I of chapter 81 of title 5, re4 lating to compensation for work-related injuries.

5 ‘‘(B) Section 2733 of this title and section 2733

6 of title 28, relating to claims for damages or loss.

7 ‘‘(C) Section 522a of title 5, relating to mainte8 nance of records on individuals.

9 ‘‘(D) Chapter 11 of title 18, relating to con10 flicts of interest.

11 ‘‘(2) Subject to paragraph (3), while providing a

12 nonappropriated fund instrumentality of the United

13 States with voluntary services accepted under subsection

14 (a), or receiving training under subsection (c) to provide

15 such an instrumentality with services accepted under sub16 section (a), a person shall be considered an employee of

17 that instrumentality only for the following purposes:

18 ‘‘(A) Subchapter II of chapter 81 of title 5, re19 lating to compensation of nonappropriated fund em20 ployees for work-related injuries.

21 ‘‘(B) Section 2733 of this title and section 2733

22 of title 28, relating to tort claims.

23 ‘‘(3) A person providing voluntary services accepted

24 under subsection (a) shall be considered to be an employee

25 of the Federal Government under paragraph (1) or (2)
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1 only with respect to services that are within the scope of

2 the services so accepted.

3 ‘‘(4) For purposes of determining the compensation

4 for work-related injuries payable under chapter 81 of title

5 5 (pursuant to this subsection) to a person providing vol6 untary services accepted under subsection (a), the monthly

7 pay of the person for such services shall be deemed to be

8 the amount determined by multiplying—

9 ‘‘(A) the average monthly number of hours that

10 the person provided the services, by

11 ‘‘(B) the minimum wage determined in accord12 ance with section 6(a)(1) of the Fair Labor Stand13 ards Act of 1938 (29 U.S.C. 206(a)(1)).

14 ‘‘(e) REIMBURSEMENT OF INCIDENTAL EXPENSES.—

15 The Secretary concerned may provide for reimbursement

16 of a person for incidental expenses incurred by the person

17 in providing voluntary services accepted under subsection

18 (a). The Secretary shall determine which expenses are eli19 gible for reimbursement under this subsection. Any such

20 reimbursement may be made from appropriated or

21 nonappropriated funds.’’.

22 (b) CONFORMING AND TECHNICAL AMENDMENTS.—

23 (1) Section 8171(a) of title 5, United States Code, is

24 amended by inserting ‘‘, or to a volunteer providing such

25 an instrumentality with services accepted under section
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1 1588 of title 10,’’ after ‘‘described by section 2105(c) of

2 this title’’.

3 (2) Subchapter II of chapter 81 of such title is

4 amended—

5 (A) in section 8171—

6 (i) in subsection (a)—

7 (I) by striking out ‘‘Chapter 18 of

8 title 33’’ in the first sentence and inserting

9 in lieu thereof ‘‘The Longshore and Har10 bor Workers’ Compensation Act (33

11 U.S.C. 901 et seq.)’’;

12 (II) by striking out ‘‘section 902(2) of

13 title 33’’ in the first sentence and inserting

14 in lieu thereof ‘‘section 2(2) of such Act

15 (33 U.S.C. 902(2))’’; and

16 (III) by striking out ‘‘section 903(a)

17 of title 33 which follows the first comma’’

18 in the second sentence and inserting in lieu

19 thereof ‘‘section 3(a) of such Act (33

20 U.S.C. 903(3)) which follows the second

21 comma’’;

22 (ii) in subsection (b), by striking out ‘‘sec23 tion 902(4) of title 33’’ and inserting in lieu

24 thereof ‘‘section 2(4) of the Longshore and
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1 Harbor Workers’ Compensation Act (33 U.S.C.

2 902(4))’’;

3 (iii) in subsection (c)(1), by striking out

4 ‘‘section 939(b) of title 33’’ and inserting in

5 lieu thereof ‘‘39(b) of the Longshore and Har6 bor Workers’ Compensation Act (33 U.S.C.

7 939(b))’’; and

8 (iv) in subsection (d), by striking out ‘‘sec9 tions 918 and 921 of title 33’’ and inserting in

10 lieu thereof ‘‘sections 18 and 21 of the

11 Longshore and Harbor Workers’ Compensation

12 Act (33 U.S.C. 18 and 21, respectively)’’; and

13 (B) by striking out ‘‘section 902(2) of title 33’’

14 in sections 8172 and 8173 and inserting in lieu

15 thereof ‘‘section 2(2) of the Longshore and Harbor

16 Workers’ Compensation Act (33 U.S.C. 2(2))’’.

17 Subtitle E—Other Matters

18 SEC. 341. CHANGE OF SOURCE FOR PERFORMANCE OF

19 DEPOT-LEVEL WORKLOADS.

20 The text of section 2469 of title 10, United States

21 Code, is amended to read as follows:

22 ‘‘(a) REQUIREMENT FOR COMPETITION.—The Sec23 retary of Defense shall ensure that the performance of a

24 depot-level maintenance workload described in subsection

25 (b) is not changed to performance by a contractor or by
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1 another depot-level maintenance activity of the Depart2 ment of Defense unless the change is made using—

3 ‘‘(1) merit-based selection procedures for com4 petitions among all depot-level maintenance activities

5 of the Department of Defense; or

6 ‘‘(2) competitive procedures for competitions

7 among private and public sector entities.

8 ‘‘(b) SCOPE.—Subsection (a) applies to any depot9 level maintenance workload that has a value of not less

10 than $3,000,000 and is being performed by a depot-level

11 activity of the Department of Defense.

12 ‘‘(c) INAPPLICABILITY OF OMB CIRCULAR A–76.—

13 Office of Managment and Budget Circular A–76 does not

14 apply to a performance change to which subsection (a) ap15 plies.’’.

16 SEC. 342. CIVIL AIR PATROL.

17 (a) PROVISION OF FUNDS.—Subsection (b) of section

18 9441 of title 10, United States Code, is amended—

19 (1) by redesignating paragraphs (8), (9), (10),

20 and (11) as paragraphs (9), (10), (11), and (12), re21 spectively; and

22 (2) by inserting after paragraph (7) the follow23 ing new paragraph (8):

24 ‘‘(8) provide funds for the national head25 quarters of the Civil Air Patrol, including funds for
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1 the payment of staff compensation and benefits, ad2 ministrative expenses, travel, per diem and allow3 ances, rent and utilities, and other operational ex4 penses;’’.

5 (b) LIAISONS.—Such section is further amended by

6 adding at the end the following new subsection:

7 ‘‘(d)(1) The Secretary of the Air Force may authorize

8 the Civil Air Patrol to employ, as administrators and liai9 son officers, persons retired from service in the Air Force

10 whose qualifications are approved under regulations pre11 scribed by the Secretary and who request such employ12 ment.

13 ‘‘(2) A person employed pursuant to paragraph (1)

14 may receive the person’s retired pay and an additional

15 amount for such employment that is not more than the

16 difference between the person’s retired pay and the pay

17 and allowances the person would be entitled to receive if

18 ordered to active duty in the grade in which the person

19 retired from service in the Air Force. The additional

20 amount shall be paid to the Civil Air Patrol by the Sec21 retary from funds appropriated for that purpose.

22 ‘‘(3) A person employed pursuant to paragraph (1)

23 may not, while so employed, be considered to be on active

24 duty or inactive-duty training for any purpose.’’.
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1 SEC. 343. ARMED FORCES RETIREMENT HOME.

2 (a) INCREASED MAXIMUM LIMITATION ON DEDUC3 TIONS FROM PAY.—Section 1007(i) of title 37, United

4 States Code, is amended—

5 (1) in paragraph (1), by striking out ‘‘50

6 cents’’ and inserting in lieu thereof ‘‘$2.00’’; and

7 (2) in paragraph (3), by adding at the end the

8 following: ‘‘The amount fixed for a grade or length

9 of service may not be increased by more than 50

10 cents during any 12-month period.’’.

11 (b) MODIFICATION OF FEES PAID BY RESIDENTS.—

12 (1) Paragraph (2) of section 1514(c) of the Armed Forces

13 Retirement Home Act of 1991 (24 U.S.C. 414(c)) is

14 amended to read as follows:

15 ‘‘(2) The fee shall be fixed as a percentage of the

16 monthly income and monthly payments (including Federal

17 payments) received by a resident, subject to such adjust18 ments in the fee as the Retirement Home Board may

19 make under paragraph (1). The percentage shall be the

20 same for each establishment of the Retirement Home.’’.

21 (2)(A) Subsections (d) and (e) of section 1514 of

22 such Act are repealed.

23 (B) Such section is further amended by adding after

24 subsection (c) the following new subsection (d):

25 ‘‘(d) APPLICATION OF FEES.—Subject to such ad26 justments in the fee as the Retirement Home Board may
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1 make under subsection (c), each resident of the Retire2 ment Home shall be required to pay a monthly fee equal

3 to the amount determined by multiplying the total amount

4 of all monthly income and monthly payments (including

5 Federal payments) received by the resident by a percent6 age as follows:

7 ‘‘(1) In the case of a permanent health care

8 resident—

9 ‘‘(A) in fiscal year 1998, 35 percent;

10 ‘‘(B) in fiscal year 1999, 45 percent; and

11 ‘‘(C) in fiscal year 2000, 65 percent.

12 ‘‘(2) In the case of a resident who is not a per13 manent health care resident—

14 ‘‘(A) in fiscal year 1998, 30 percent;

15 ‘‘(B) in fiscal year 1999, 35 percent; and

16 ‘‘(C) in fiscal year 2000, 40 percent.

17 (c) MODERNIZATION OF FACILITIES.—(1) The

18 Chairman of the Armed Forces Retirement Home Board

19 shall carry out a study to identify and evaluate alter20 natives for modernization of the facilities at the United

21 States Soldiers’ and Airmen’s Home.

22 (2) The Chairman shall submit an interim report and

23 a final report on the results of the study to the Commit24 tees on Armed Services of the Senate and House of Rep25 resentatives. The Chairman shall submit the interim re-
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1 port not later than April 1, 1995, and the final report

2 not later than December 31, 1995.

3 (d) EFFECTIVE DATES.—(1) The amendments made

4 by subsection (a) shall take effect on January 1, 1995,

5 and apply to years that begin on or after that date.

6 (2) The amendments made by subsection (b) shall

7 take effect October 1, 1997.

8 SEC. 344. CLARIFICATION OF AUTHORITY TO PROVIDE

9 MEDICAL TRANSPORTATION UNDER NA10 TIONAL GUARD PILOT PROGRAM.

11 Paragraph (1) of section 376(h) of the National De12 fense Authorization Act for Fiscal Year 1993 (32 U.S.C.

13 501 note) is amended to read as follows:

14 ‘‘(1) The term ‘health care’ includes the follow15 ing services:

16 ‘‘(A) Medical care services.

17 ‘‘(B) Dental care services.

18 ‘‘(C) Transportation, by air ambulance or

19 other means, for medical reasons.’’.

20 SEC. 345. ARMS INITIATIVE LOAN GUARANTEE PROGRAM.

21 (a) PROGRAM AUTHORIZED.—Subject to subsection

22 (b), the Secretary of the Army may carry out a loan guar23 antee program to encourage commercial firms to use am24 munition manufacturing facilities pursuant to section 193

25 of the Armament Retooling and Manufacturing Support
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1 Act of 1992 (subtitle H of title I of Public Law 102–484;

2 106 Stat. 2348). Under such program, the Secretary may

3 guarantee the repayment of any loan made to a commer4 cial firm to fund, in whole or in part, the establishment

5 of a commercial activity under the Act.

6 (b) ADVANCED BUDGET AUTHORITY.—Loan guaran7 tees under this section may not be committed except to

8 the extent that appropriations of budget authority to cover

9 their costs are made in advance, as required by section

10 504 of the Federal Credit Reform Act of 1990 (title V

11 of the Congressional Budget Act of 1974; 2 U.S.C. 661c).

12 (c) PROGRAM ADMINISTRATION.—(1) The Secretary

13 may enter into agreements with the Administrator of the

14 Small Business Administration, the Administrator of the

15 Farmers Home Administration, and the Administrator of

16 the Rural Development Administration under which such

17 Administrators may, under this section—

18 (A) process applications for loan guarantees;

19 (B) guarantee repayment of loans; and

20 (C) provide any other services to the Secretary

21 to administer the loan guarantee program.

22 (2) Each Administrator may guarantee loans under

23 this section to commercial firms of any size, notwithstand24 ing any size limitations imposed on other loan guarantee

25 programs that the Administrator administers.
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1 (3) To the extent practicable, each Administrator

2 shall use the same procedures for processing loan guaran3 tee applications under this section as the Administrator

4 uses for processing loan guarantee applications under

5 other loan guarantee programs that the Administrator

6 administers.

7 (d) LOAN LIMITS.—Loan guarantees under this sec8 tion may not exceed—

9 (1) $20,000,000 for any borrower; and

10 (2) $65,000,000 for all borrowers.

11 (e) TRANSFER OF FUNDS.—The Secretary of the

12 Army may transfer to an Administrator providing services

13 under subsection (c), and an Administrator may accept,

14 such funds as may be necessary to administer the loan

15 guarantee program under this section.

16 (f) REPORTING REQUIREMENT.—Not later than July

17 1 of each year in which a guarantee issued under this sec18 tion is in effect, the Secretary shall submit to the congres19 sional defense committees a report containing the amounts

20 of loans guaranteed under this section during the preced21 ing calendar year. No report is required after fiscal year

22 1997.

23 (g) AUTHORIZATION FOR USE OF EXISTING BUDGET

24 AUTHORITY.—Funds appropriated for the Armament Re25 tooling and Manufacturing Support Initiative by title III
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1 of Public Law 102–396 under the heading ‘‘PROCURE2 MENT OF AMMUNITION, ARMY’’ (106 Stat. 1887) may be

3 made available for loan guarantees under this section only

4 to the extent provided in an appropriations Act enacted

5 after the date of the enactment of this Act.

6 (h) EXTENSION OF AUTHORITY.—Section 193(a) of

7 the Armament Retooling and Manufacturing Support Act

8 of 1992 (subtitle H of title I of Public Law 102–484; 106

9 Stat. 2348) is amended by striking out ‘‘During fiscal

10 years 1993 and 1994,’’ and inserting in lieu thereof ‘‘Dur11 ing fiscal years 1993 through 1996,’’.

12 SEC. 346. REAUTHORIZATION OF DEPARTMENT OF DE13 FENSE DOMESTIC ELEMENTARY AND SEC14 ONDARY SCHOOLS FOR DEPENDENTS.

15 (a) CONTINUED AUTHORITY.—Chapter 108 of title

16 10, United States Code, is amended by adding at the end

17 the following new section:

18 ‘‘§ 2164. Department of Defense domestic dependent

19 elementary and secondary schools

20 ‘‘(a) AUTHORITY OF SECRETARY.—If the Secretary

21 of Defense makes a determination that appropriate edu22 cational programs are not available through a local edu23 cational agency for dependents of members of the armed

24 forces and dependents of civilian employees of the Federal

25 Government residing on a military installation in the Unit-
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1 ed States (including territories, commonwealths, and pos2 sessions of the United States), the Secretary may provide

3 for the elementary or secondary education of the depend4 ents of such members of the armed forces and, to the ex5 tent authorized in subsection (c), the dependents of such

6 civilian employees.

7 ‘‘(b) FACTORS FOR SECRETARY TO CONSIDER.—(1)

8 Factors to be considered by the Secretary of Defense in

9 making a determination under subsection (a) shall include

10 the following:

11 ‘‘(A) The extent to which such dependents are

12 eligible for free public education in the local area ad13 jacent to the military installation.

14 ‘‘(B) The extent to which the local educational

15 agency is able to provide a comparable educational

16 program for such dependents.

17 ‘‘(2) For purposes of paragraph (1)(B), an appro18 priate educational program is a program that, as deter19 mined by the Secretary, is comparable to a program of

20 free public education provided for children in the following

21 communities:

22 ‘‘(A) In the case of a military installation lo23 cated in a State (other than an installation referred

24 to in subparagraph (B)), similar communities in the

25 State.
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1 ‘‘(B) In the case of a military installation with

2 boundaries contiguous to two or more States, similar

3 communities in the contiguous States.

4 ‘‘(C) In the case of a military installation lo5 cated in a territory, commonwealth, or possession,

6 the District of Columbia, except that an educational

7 program determined comparable under this subpara8 graph may be considered appropriate for the pur9 poses of paragraph (1)(B) only if the program is

10 conducted in the English language.

11 ‘‘(c) ELIGIBILITY OF DEPENDENTS OF FEDERAL

12 EMPLOYEES.—(1) A dependent of a Federal employee re13 siding on a military installation at any time during the

14 school year may enroll in an educational program provided

15 by the Secretary of Defense pursuant to subsection (a)

16 for dependents residing on such installation.

17 ‘‘(2)(A) Except as provided in subparagraph (B), a

18 dependent of a Federal employee who is enrolled in an

19 educational program provided by the Secretary pursuant

20 to subsection (a) and who is not residing on a military

21 installation may be enrolled in the program for not more

22 than five consecutive school years.

23 ‘‘(B) A dependent referred to in subparagraph (A)

24 may be enrolled in the program for more than five con25 secutive school years if the Secretary determines that, in
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1 the interest of the dependent’s educational well-being,

2 there is good cause to extend the enrollment for more than

3 the five-year period described in such subparagraph. Any

4 such extension may be made for only one school year at

5 a time.

6 ‘‘(3) A dependent of a Federal employee may con7 tinue enrollment in a program under this subsection for

8 the remainder of a school year notwithstanding a change

9 during such school year in the status of the Federal em10 ployee that, except for this paragraph, would otherwise

11 terminate the eligibility of the dependent to be enrolled

12 in the program. The preceding sentence does not limit the

13 authority of the Secretary to remove the dependent from

14 enrollment in the program at any time for good cause de15 termined by the Secretary.

16 ‘‘(d) SCHOOL BOARDS.—(1) The Secretary of De17 fense shall provide for the establishment of a school board

18 for each Department of Defense elementary or secondary

19 school established for a military installation under this

20 section.

21 ‘‘(2) The school board shall be composed of the num22 ber of members, not less than three, prescribed by the

23 Secretary.
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1 ‘‘(3) The parents of the students attending the school

2 shall elect the school board in accordance with procedures

3 which the Secretary shall prescribe.

4 ‘‘(4) The elected school board shall be considered a

5 local civic group with a function of rendering a public serv6 ice of providing counsel through oversight of school ex7 penditures and operations. The Secretary shall prescribe

8 the oversight procedures and audit standards applicable

9 to the functions of the school board.

10 ‘‘(5) Meetings conducted by the school board shall be

11 open to the public.

12 ‘‘(6) A school board need not comply with the provi13 sions of the Federal Advisory Committee Act (5 U.S.C.

14 App.), but may close meetings in accordance with such

15 Act.

16 ‘‘(e) ADMINISTRATION AND STAFF.—(1) The Sec17 retary of Defense may enter into such arrangements as

18 may be necessary to provide educational programs at the

19 school.

20 ‘‘(2) The Secretary may, without regard to the provi21 sions of any other law relating to the number, classifica22 tion, or compensation of employees—

23 ‘‘(A) establish such positions for civilian em24 ployees in schools established under this section;

25 ‘‘(B) appoint individuals to such positions; and
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1 ‘‘(C) fix the compensation of such individuals

2 for service in such positions.

3 ‘‘(3)(A) Except as provided in subparagraph (B), in

4 fixing the compensation of employees appointed for a

5 school pursuant to paragraph (2), the Secretary shall con6 sider—

7 ‘‘(i) the compensation of comparable employees

8 of the local educational agency in the capital of the

9 State where the military installation is located;

10 ‘‘(ii) the compensation of comparable employees

11 in the local educational agency that provides public

12 education to students who reside adjacent to the

13 military installation; or

14 ‘‘(iii) the average compensation for similar posi15 tions in not more than three other local educational

16 agencies in the State in which the military installa17 tion is located.

18 ‘‘(B) In fixing the compensation of employees in

19 schools established in the territories, commonwealths, and

20 possessions pursuant to the authority of this section, the

21 Secretary shall determine the level of compensation re22 quired to attract qualified employees. For employees in

23 such schools, the Secretary, without regard to the provi24 sions of title 5, may provide for the tenure, leave, hours

25 of work, and other incidents of employment to be similar
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1 to that provided for comparable positions in the public

2 schools of the District of Columbia. For purposes of the

3 first sentence, a school shall be considered to have been

4 established pursuant to the authority of this section if the

5 school was established pursuant to other similar authority

6 before the date on which this section takes effect.

7 ‘‘(f) SUBSTANTIVE AND PROCEDURAL RIGHTS AND

8 PROTECTIONS FOR CHILDREN.—(1) The Secretary shall

9 provide the following substantive rights, protections, and

10 procedural safeguards (including due process procedures)

11 in the educational programs provided for under this

12 section:

13 ‘‘(A) In the case of children with disabilities

14 aged 3 to 5, inclusive, all substantive rights, protec15 tions, and procedural safeguards (including due

16 process procedures) available to children with dis17 abilities aged 3 to 5, inclusive, under part B of the

18 Individuals with Disabilities Education Act (20

19 U.S.C. 1411 et seq.).

20 ‘‘(B) In the case of infants and toddlers with

21 disabilities, all substantive rights, protections, and

22 procedural safeguards (including due process proce23 dures) available to infants and toddlers with disabil24 ities under part H of such Act (20 U.S.C. 1471 et

25 seq.).
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1 ‘‘(C) In the case of all other children with dis2 abilities, all substantive rights, protections, and pro3 cedural safeguards (including due process proce4 dures) available to children with disabilities who are

5 3 to 5 years old under part B of such Act.

6 ‘‘(2) Paragraph (1) may not be construed as dimin7 ishing for children with disabilities enrolled in day edu8 cational programs provided for under this section the ex9 tent of substantive rights, protections, and procedural

10 safeguards that were available under section 6(a) of Public

11 Law 81–874 (20 U.S.C. 241(a)) to children with disabil12 ities as of October 7, 1991.

13 ‘‘(3) In this subsection:

14 ‘‘(A) The term ‘children with disabilities’ has

15 the meaning given the term in section 602(a)(1) of

16 the Individuals with Disabilities Education Act (20

17 U.S.C. 1401(a)(1)).

18 ‘‘(B) The term ‘children with disabilities aged 3

19 to 5, inclusive’ means such term as used in such Act

20 (20 U.S.C. 1400 et seq.).

21 ‘‘(C) The term ‘infants and toddlers with dis22 abilities’ has the meaning given the term in section

23 672(1) of such Act (20 U.S.C. 1472(1)).

24 ‘‘(g) REIMBURSEMENT.—When the Secretary of De25 fense provides educational services under this section to
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1 an individual who is a dependent of an employee of a Fed2 eral agency outside the Department of Defense, the head

3 of the other Federal agency shall, upon request of the Sec4 retary of Defense, reimburse the Secretary for those serv5 ices at rates routinely prescribed by the Secretary for

6 those services. Any payments received by the Secretary

7 under this subsection shall be credited to the account des8 ignated by the Secretary for the operation of educational

9 programs under this section.’’.

10 (b) CLERICAL AMENDMENT.—The table of sections

11 at the beginning of such chapter is amended by adding

12 at the end the following new item:

‘‘2164. Department of Defense domestic dependent elementary and secondary

schools.’’.

13 SEC. 347. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES

14 THAT BENEFIT DEPENDENTS OF MEMBERS

15 OF THE ARMED FORCES AND DEPARTMENT

16 OF DEFENSE CIVILIAN EMPLOYEES.

17 (a) AVAILABILITY OF FUNDS.—Of the amounts au18 thorized to be appropriated pursuant to section 301(5)—

19 (1) $50,000,000 shall be available for providing

20 assistance to local educational agencies under sub21 section (b) of section 386 of Public Law 102–484;

22 and
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1 (2) $8,000,000 shall be available for making

2 payments to local educational agencies under sub3 section (d) of such section.

4 (b) NOTIFICATION AND DISBURSAL.—(1) On or be5 fore June 30, 1995, the Secretary of Defense (with respect

6 to assistance provided in subsection (b) of section 386 of

7 Public Law 102–484) and the Secretary of Education

8 (with respect to payments made under subsection (d) of

9 such section) shall notify each local educational agency eli10 gible for assistance under subsections (b) and (d) of such

11 section, respectively, for fiscal year 1995 of such agency’s

12 eligibility for such assistance and the amount of such

13 assistance.

14 (2) The Secretary of Defense (with respect to funds

15 made available under subsection (a)(1)) and the Secretary

16 of Education (with respect to funds made available under

17 subsection (a)(2)) shall disburse such funds not later than

18 30 days after notification to eligible local education

19 agencies.

20 SEC. 348. DISPOSITION OF PROCEEDS FROM OPERATION

21 OF THE NAVAL ACADEMY LAUNDRY.

22 Section 6971 of title 10, United States Code, is

23 amended—

24 (1) in subsection (a)—

25 (A) by striking out ‘‘(a)’’; and
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1 (B) in the first sentence, by striking out

2 ‘‘and the Academy dairy’’ and inserting in lieu

3 thereof ‘‘the Academy dairy, and the Academy

4 laundry’’; and

5 (2) by striking out subsection (b).

6 SEC. 349. REPEAL OF ANNUAL LIMITATION ON EXPENDI7 TURES FOR EMERGENCY AND EXTRAOR8 DINARY EXPENSES OF THE DEPARTMENT OF

9 DEFENSE INSPECTOR GENERAL.

10 Section 127(c) of title 10, United States Code, is

11 amended—

12 (1) by striking out ‘‘(1)’’ after ‘‘(c)’’; and

13 (2) by striking out paragraph (2).

14 SEC. 350. EXTENSION OF AUTHORITY FOR PROGRAM TO

15 COMMEMORATE WORLD WAR II.

16 Section 378 of the National Defense Authorization

17 Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat.

18 2387; 10 U.S.C. 113 note) is amended by striking out

19 ‘‘1995’’ each place it appears in subsections (a) and (b)

20 and inserting in lieu thereof ‘‘1996’’.
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1 SEC. 351. EXTENSION OF AUTHORITY FOR AVIATION DE2 POTS AND NAVAL SHIPYARDS TO ENGAGE IN

3 DEFENSE-RELATED PRODUCTION AND SERV4 ICES.

5 Section 1425(e) of the National Defense Authoriza6 tion Act for Fiscal Year 1991 (Public Law 101–510), as

7 amended by section 370(b) of Public Law 103–160 (107

8 Stat. 1634), is further amended by striking out ‘‘Septem9 ber 30, 1994’’ and inserting in lieu thereof ‘‘September

10 30, 1995’’.

11 SEC. 352. TRANSFER OF CERTAIN EXCESS DEPARTMENT OF

12 DEFENSE PROPERTY TO EDUCATIONAL IN13 STITUTIONS AND TRAINING SCHOOLS.

14 (a) AUTHORITY TO TRANSFER.—Subsection (b)(1)

15 of section 2535(b) of title 10, United States Code, is

16 amended—

17 (1) in subparagraph (F), by striking out ‘‘and’’;

18 (2) by redesignating subparagraph (G) as sub19 paragraph (H); and

20 (3) by inserting after subparagraph (F) the fol21 lowing new subparagraph (G):

22 ‘‘(G) notwithstanding title II of the Federal

23 Property and Administrative Services Act of 1949

24 (40 U.S.C. 481 et seq.) and any other provision of

25 law, authorize the transfer, on a nonreimbursable

26 basis, of any such property to any nonprofit edu-
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1 cational institution or training school whenever the

2 program proposed by such institution or school for

3 the use of such property will contribute materially to

4 national defense; and’’.

5 (b) TREATMENT OF PROPERTY LOANED BEFORE

6 SEPTEMBER 30, 1993.—Except for property determined

7 by the Secretary to be needed by the Department of De8 fense, property loaned before September 30, 1993, to an

9 educational institution or training school under section

10 2535(b) of title 10, United States Code, or section 4(a)(7)

11 of the Defense Industrial Reserve Act (as in effect before

12 October 23, 1992) shall be regarded as surplus property.

13 Upon certification by the Secretary to the Administrator

14 of General Services that the property is being used by the

15 borrowing educational institution or training school for a

16 purpose consistent with that for which the property was

17 loaned, the Administrator may authorize the conveyance

18 of all right, title, and interest of the United States in such

19 property to the borrower if the borrower agrees to accept

20 the property. The Administrator may require any addi21 tional terms and conditions in connection with a convey22 ance so authorized that the Administrator considers ap23 propriate to protect the interests of the United States.
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1 SEC. 353. SHIPS’ STORES.

2 Section 371 of the National Defense Authorization

3 Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

4 1634; 10 U.S.C. 7604 note) is amended—

5 (1) by striking out subsections (a), (b), and (d);

6 and

7 (2) in subsection (c), by striking out ‘‘(c) CODI8 FICATION.—Section 7604’’ and inserting in lieu

9 thereof ‘‘Effective as of November 30, 1993, section

10 7604’’.

11 SEC. 354. HUMANITARIAN PROGRAM FOR CLEARING LAND12 MINES.

13 (a) PROGRAM AUTHORIZED.—The Secretary of De14 fense may carry out a program for humanitarian purposes

15 to provide for the instruction, education, training, and ad16 vising of personnel of other nations in the various proce17 dures that have been determined effective for detecting

18 and clearing landmines.

19 (b) FORMS OF ASSISTANCE.—Under the program the

20 Secretary may provide personnel to conduct the instruc21 tion, education, or training or to furnish advice. In addi22 tion or alternatively, the Secretary may provide financial

23 assistance or in-kind assistance in support of such instruc24 tion, education, or training.
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1 (c) LIMITATIONS ON ACTIONS OF UNITED STATES

2 PERSONNEL.—The Secretary of Defense shall ensure that

3 no member of the Armed Forces of the United States—

4 (1) while providing assistance under subsection

5 (a), engages in the physical detection, lifting, or de6 stroying of landmines unless the member does so for

7 the concurrent purpose of supporting a United

8 States military operation; or

9 (2) provides such assistance as part of a mili10 tary operation that does not involve the Armed

11 Forces of the United States.

12 (d) FUNDING.—Of the funds authorized to be appro13 priated in section 301, not more than $10,000,000 shall

14 be available for a program carried out under subsection

15 (a).

16 SEC. 355. ASSISTANCE TO RED CROSS FOR EMERGENCY

17 COMMUNICATIONS SERVICES FOR MEMBERS

18 OF THE ARMED FORCES AND THEIR FAMI19 LIES.

20 (a) FISCAL YEAR 1995.—Of the funds authorized to

21 be appropriated by section 301(5), $14,500,000 shall be

22 available for obtaining emergency communications services

23 for members of the Armed Forces and their families from

24 the American National Red Cross.
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1 (b) FISCAL YEARS 1996 AND 1997.—Of the amounts

2 authorized to be appropriated for the Department of De3 fense for fiscal years 1996 and 1997 for operation and

4 maintenance for Defense-wide activities, $14,500,000

5 shall be available for each such fiscal year for obtaining

6 emergency communications services for members of the

7 Armed Forces and their families from the American Na8 tional Red Cross.

9 SEC. 356. MARITIME PREPOSITIONING SHIP ENHANCE10 MENT.

11 Section 2218 of title 10, United States Code, is

12 amended by adding at the end of subsection (f) the follow13 ing new paragraph:

14 ‘‘(3) Not more than three vessels built in foreign

15 shipyards may be purchased for the Marine Corps mari16 time prepositioning ship program with funds in the Na17 tional Defense Sealift Fund. Vessels purchased under the

18 authority of this paragraph may not be counted for pur19 poses of the limitation in paragraph (1).’’.

20 TITLE IV—MILITARY

21 PERSONNEL AUTHORIZATIONS

22 Subtitle A—Active Forces

23 SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

24 The Armed Forces are authorized strengths for active

25 duty personnel as of September 30, 1995, as follows:
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1 (1) The Army, 510,000.

2 (2) The Navy, 441,641.

3 (3) The Marine Corps, 174,000.

4 (4) The Air Force, 400,051.

5 SEC. 402. EXTENSION OF TEMPORARY VARIATION OF END

6 STRENGTH LIMITATIONS FOR MARINE CORPS

7 MAJORS AND LIEUTENANT COLONELS.

8 (a) EXTENSION OF AUTHORITY.—Subsection (a) of

9 section 402 of the National Defense Authorization Act for

10 Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1639;

11 10 U.S.C. 523 note) is amended by striking out ‘‘and

12 1995’’ and inserting in lieu thereof ‘‘through 1997’’

13 (b) LIMITATION.—The table in subsection (b) of such

14 section is amended to read as follows:

‘‘Fiscal year:

Number of officers who may be serving

on active duty in the grade of:

Major Lieutenant colonel

1994 .............................................. 3,023 1,578

1995 .............................................. 3,157 1,634

1996 .............................................. 3,157 1,634

1997 .............................................. 3,157 1,634.’’.

15 (c) CLERICAL AMENDMENT.—The caption of sub16 section (b) of such section is amended by striking out

17 ‘‘AND 1995.—’’ and inserting in lieu thereof ‘‘THROUGH

18 1997.—’’.
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1 SEC. 403. RETENTION OF AUTHORIZED STRENGTH OF GEN2 ERAL OFFICERS ON ACTIVE DUTY IN THE MA3 RINE CORPS FOR FISCAL YEARS AFTER FIS4 CAL YEAR 1995.

5 Section 526(a)(4) of title 10, United States Code, is

6 amended by striking out ‘‘before October 1, 1995,’’ and

7 all that follows through ‘‘that date’’.

8 SEC. 404. EXCEPTION TO LIMITATION ON NUMBER OF GEN9 ERAL OFFICERS AND FLAG OFFICERS SERV10 ING ON ACTIVE DUTY.

11 Section 525(b) of title 10, United States Code, is

12 amended by adding at the end the following new para13 graph:

14 ‘‘(5)(A) Subject to subparagraph (C), an officer while

15 serving in a position referred to in subparagraph (B), if

16 serving in the grade of general or admiral, is in addition

17 to the number that would otherwise be permitted for that

18 officer’s armed force for that grade under paragraph (1)

19 or (2).

20 ‘‘(B) Subparagraph (A) applies to the following posi21 tions:

22 ‘‘(i) Commander in Chief of a combatant com23 mand.

24 ‘‘(ii) Commander, United States Forces, Korea.

25 ‘‘(iii) Deputy Commander in Chief, United

26 States European Command, but only while the Com-
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1 mander in Chief of such command is also the Su2 preme Allied Commander Europe.

3 ‘‘(C) Subparagraph (A) does not apply to an officer

4 serving in a position referred to in subparagraph (B) un5 less the Secretary of Defense, when considering that offi6 cer for recommendation to the President for appointment

7 to such position, concurrently considered one officer from

8 each of the other armed forces (other than the Coast

9 Guard) for recommendation to the President for appoint10 ment to the position.

11 ‘‘(D) The Chairman of the Joint Chiefs of Staff may

12 recommend officers to the Secretary of Defense for consid13 eration by the President for appointment to any of the

14 positions referred to in subparagraph (B).

15 ‘‘(E) This paragraph shall cease to be effective at the

16 end of September 30, 1997.’’.

17 SEC. 405. TEMPORARY EXCLUSION OF SUPERINTENDENT

18 OF NAVAL ACADEMY FROM COUNTING TO19 WARD NUMBER OF SENIOR ADMIRALS AU20 THORIZED TO BE ON ACTIVE DUTY.

21 (a) GRADE RELIEF.—If the next officer appointed to

22 serve as Superintendent of the United States Naval Acad23 emy after April 1, 1994, is an officer described in sub24 section (b), that officer, while so serving, shall not be
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1 counted for purposes of the limitations contained in sec2 tion 525(b)(2) of title 10, United States Code.

3 (b) QUALIFYING OFFICER.—Subsection (a) applies in

4 the case of a retired officer who—

5 (1) holds the grade of admiral on the retired

6 list;

7 (2) is ordered to active duty pursuant to section

8 688 of title 10, United States Code, to serve as Su9 perintendent of the United States Naval Academy;

10 and

11 (3) is appointed pursuant to section 601 of that

12 title to have the grade of admiral while serving on

13 active duty in that position.

14 Subtitle B—Reserve Forces

15 SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

16 (a) IN GENERAL.—The Armed Forces are authorized

17 strengths for Selected Reserve personnel of the reserve

18 components as of September 30, 1995, as follows:

19 (1) The Army National Guard of the United

20 States, 400,000.

21 (2) The Army Reserve, 242,000.

22 (3) The Naval Reserve, 109,000.

23 (4) The Marine Corps Reserve, 42,000.

24 (5) The Air National Guard of the United

25 States, 115,581.
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1 (6) The Air Force Reserve, 78,706.

2 (7) The Coast Guard Reserve, 8,000.

3 (b) WAIVER AUTHORITY.—The Secretary of Defense

4 may increase the end strength authorized by subsection

5 (a) by not more than 2 percent.

6 (c) ADJUSTMENTS.—The end strengths prescribed by

7 subsection (a) for the Selected Reserve of any reserve com8 ponent shall be reduced proportionately by—

9 (1) the total authorized strength of units orga10 nized to serve as units of the Selected Reserve of

11 such component which are on active duty (other

12 than for training) at the end of the fiscal year, and

13 (2) the total number of individual members not

14 in units organized to serve as units of the Selected

15 Reserve of such component who are on active duty

16 (other than for training or for unsatisfactory partici17 pation in training) without their consent at the end

18 of the fiscal year.

19 Whenever such units or such individual members are re20 leased from active duty during any fiscal year, the end

21 strength prescribed for such fiscal year for the Selected

22 Reserve of such reserve component shall be increased pro23 portionately by the total authorized strengths of such

24 units and by the total number of such individual members.
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1 SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE

2 DUTY IN SUPPORT OF THE RESERVES.

3 Within the end strengths prescribed in section

4 411(a), the reserve components of the Armed Forces are

5 authorized, as of September 30, 1995, the following num6 ber of Reserves to be serving on full-time active duty or,

7 in the case of members of the National Guard, full-time

8 National Guard duty for the purpose of organizing, ad9 ministering, recruiting, instructing, or training the reserve

10 components:

11 (1) The Army National Guard of the United

12 States, 23,650.

13 (2) The Army Reserve, 11,940.

14 (3) The Naval Reserve, 17,510.

15 (4) The Marine Corps Reserve, 2,285.

16 (5) The Air National Guard of the United

17 States, 9,098.

18 (6) The Air Force Reserve, 648.

19 Subtitle C—Military Training

20 Student Loads

21 SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

22 (a) IN GENERAL.—For fiscal year 1995, the Armed

23 Forces are authorized average military training student

24 loads as follows:

25 (1) The Army, 69,420.

26 (2) The Navy, 43,064.
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1 (3) The Marine Corps, 25,377.

2 (4) The Air Force, 36,840.

3 (b) SCOPE.—The average military training student

4 load authorized for an armed force under subsection (a)

5 applies to the active and reserve components of that armed

6 force.

7 (c) ADJUSTMENTS.—The average military training

8 student loads authorized in subsection (a) shall be ad9 justed consistent with the end strengths authorized in sub10 titles A and B. The Secretary of Defense shall prescribe

11 the manner in which such adjustments shall be appor12 tioned.

13 Subtitle D—Authorization of

14 Appropriations

15 SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILI16 TARY PERSONNEL.

17 There is hereby authorized to be appropriated to the

18 Department of Defense for military personnel for fiscal

19 year 1995 a total of $70,790,397,000. The authorization

20 in the preceding sentence supersedes any other authoriza21 tion of appropriations (definite or indefinite) for such pur22 pose for fiscal year 1995.
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1 Subtitle E—Other Matters

2 SEC. 441. REPEAL OF REQUIRED REDUCTION IN RECRUIT3 ING PERSONNEL.

4 Section 431 of the National Defense Authorization

5 Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat.

6 2400) is repealed.

7 TITLE V—MILITARY PERSONNEL

8 POLICY

9 Subtitle A—Officer Personnel

10 Policy

11 SEC. 501. SERVICE ON SUCCESSIVE SELECTION BOARDS.

12 (a) SERVICE ON SUCCESSIVE BOARDS AUTHOR13 IZED.—Section 628 of title 10, United States Code, is

14 amended by adding at the end the following new sub15 section:

16 ‘‘(f)(1) A special selection board convened under this

17 section shall be composed in accordance with section 612

18 of this title or, in the case of a warrant officer, composed

19 in accordance with section 573 of this title and regulations

20 prescribed by the Secretary of the military department

21 concerned, except that the prohibitions on service on suc22 cessive selection boards set forth in sections 612(b) and

23 573(e) of this title do not apply to service on successive

24 selection boards authorized under paragraph (2).
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1 ‘‘(2) An officer may serve on a selection board con2 vened under section 611(a) of this title or, in the case of

3 a warrant officer, section 573(a) of this title and on a suc4 cessive special selection board convened under this section

5 if the service on the successive board is approved by the

6 Secretary of the military department concerned and the

7 successive board does not consider any officer who was

8 considered by the first board.’’.

9 (b) CONFORMING AMENDMENT.—Subsections (a)(1)

10 and (b)(1) of section 628 of such title are amended by

11 striking out ‘‘(composed in accordance with’’ and all that

12 follows through ‘‘concerned)’’ and inserting in lieu thereof

13 ‘‘(composed as provided in subsection (f))’’.

14 SEC. 502. PROMOTION AND OTHER CAREER MANAGEMENT

15 MATTERS RELATING TO WARRANT OFFICERS

16 ON ACTIVE-DUTY LISTS.

17 (a) EXCEPTION FROM MANDATORY CONSIDERATION

18 BY PROMOTION SELECTION BOARD.—Section 575(d) of

19 such title is amended by inserting ‘‘(except for warrant

20 officers precluded from consideration under regulations

21 prescribed by the Secretary concerned under section 577

22 of this title)’’ after ‘‘under consideration’’.

23 (b) SECRETARIAL SUBMISSION OF PROMOTION SE24 LECTION BOARD REPORT.—Section 576(f)(1) of such title

25 is amended by striking out the second sentence.
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1 (c) PROMOTION FORMALITIES DEEMED COM2 PLETED.—Section 578 of such title is amended by adding

3 at the end the following new subsections:

4 ‘‘(e) A warrant officer who is appointed to a higher

5 grade under this section is considered to have accepted

6 such appointment on the date on which the appointment

7 is made unless the officer expressly declines the appoint8 ment.

9 ‘‘(f) A warrant who has served continuously as an

10 officer since the officer took the oath of office set forth

11 under section 3331 of title 5 is not required to take a

12 new oath upon appointment to a higher grade under this

13 section.’’.

14 (d) WARRANT OFFICERS SUBJECT TO MANAGEMENT

15 AUTHORITIES.—Section 582(2) of such title is amended

16 by inserting before the period at the end the following:

17 ‘‘(other than such officers recalled to active duty before

18 February 1, 1992, who have served continuously on active

19 duty since such date)’’.
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1 SEC. 503. ENLISTMENT OR RETIREMENT OF NAVY AND MA2 RINE CORPS LIMITED DUTY OFFICERS HAV3 ING TWICE FAILED OF SELECTION FOR PRO4 MOTION.

5 (a) AUTHORITY.—Subsection (f) of section 6383 of

6 title 10, United States Code, is amended to read as

7 follows:

8 ‘‘(f)(1) An officer subject to discharge under sub9 section (b), (d), or (e) who is not eligible for retirement

10 or for retention under paragraph (2) may, upon the offi11 cer’s request and in the discretion of the Secretary of the

12 Navy, be enlisted in the grade prescribed by the Secretary.

13 ‘‘(2) If an officer subject to discharge under sub14 section (b) or (d) is within two years of qualifying for re15 tirement under section 6323 of this title as of the date

16 on which the officer is to be discharged, the officer shall

17 be retained on active duty until becoming qualified for re18 tirement under that section (unless sooner retired or dis19 charged under another provision of law) and shall then

20 be retired.’’.

21 (b) CONFORMING AMENDMENTS.—Section 6383 of

22 such title is amended—

23 (1) in subsection (i), by striking out ‘‘or the

24 discharge under subsection (d)’’ and inserting in lieu

25 thereof ‘‘or the discharge under subsection (b) or

26 (d)’’;
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1 (2) by striking out subsection (g);

2 (3) by redesignating subsections (h), (i), and (j)

3 as subsections (g), (h), and (i), respectively; and

4 (4) in subsections (a), (b), and (d), by striking

5 out ‘‘Except as provided in subsection (i),’’ each

6 place it appears and inserting in lieu thereof ‘‘Ex7 cept as provided in subsection (h),’’.

8 SEC. 504. EDUCATIONAL REQUIREMENTS FOR APPOINT9 MENT IN RESERVE COMPONENTS IN GRADES

10 ABOVE FIRST LIEUTENANT OR LIEUTENANT

11 (JUNIOR GRADE).

12 Section 596(a) of title 10, United States Code, is

13 amended—

14 (1) by inserting ‘‘(1)’’ after ‘‘(a) IN GEN15 ERAL.—’’;

16 (2) by striking out ‘‘an accredited educational

17 institution’’ and inserting in lieu thereof ‘‘an edu18 cational institution described in paragraph (2)’’; and

19 (3) by adding at the end the following new

20 paragraph:

21 ‘‘(2) An educational institution referred to in para22 graph (1) is—

23 ‘‘(A) an accredited educational institution; or

24 ‘‘(B) an unaccredited educational institution if

25 at least three accredited educational institutions gen-
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1 erally grant baccalaureate degree credit for comple2 tion of courses of the unaccredited institution equiv3 alent to the baccalaureate degree credit granted by

4 the unaccredited institution for the completion of

5 such courses.’’.

6 SEC. 505. LIMITED EXCEPTION FROM BACCALAUREATE DE7 GREE REQUIREMENT FOR ALASKA SCOUT OF8 FICERS.

9 Section 596 of title 10, United States Code, is

10 amended—

11 (1) by adding at the end of subsection (b) the

12 following new paragraph:

13 ‘‘(5) The appointment of an Alaska Native re14 ferred to in subsection (c) to, or recognition of such

15 a person in, a higher grade (not above major) of the

16 Alaska Army National Guard while such person is

17 serving in a Scout unit or a Scout supporting unit.’’;

18 and

19 (2) by adding at the end the following new sub20 section:

21 ‘‘(c) PERSONS COVERED BY ALASKA SCOUT EXCEP22 TION.—(1) Subsection (b)(5) applies to an Alaska Native

23 who resides permanently at a location in Alaska that is

24 more than 50 miles from the cities of Anchorage, Fair25 banks, and Juneau, Alaska.
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1 ‘‘(2) In paragraph (1), the term ‘Alaska Native’ has

2 the meaning given the term ‘Native’ in section 3(b) of the

3 Alaska Native Claims Settlement Act (43 U.S.C.

4 1602(b)).’’.

5 Subtitle B—Reserve Component

6 Matters

7 SEC. 511. REVIEW OF OPPORTUNITIES FOR ORDERING IN8 DIVIDUAL RESERVES TO ACTIVE DUTY WITH

9 CONSENT.

10 (a) REVIEW REQUIRED.—The Secretary of Defense

11 shall—

12 (1) review the opportunities for individual mem13 bers of the reserve components of the Armed Forces

14 to be ordered to active duty, with the consent of the

15 members concerned, during peacetime in positions

16 traditionally filled by active duty personnel; and

17 (2) identify and remove any impediments, in

18 regulations or other administrative rules, to increas19 ing such opportunities.

20 (b) REPORT.—Not later than 90 days after the date

21 of the enactment of this Act, the Secretary shall submit

22 to the Committees on Armed Services of the Senate and

23 the House of Representatives a report on the results of

24 the review. The report shall contain—
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1 (1) a plan for increasing the opportunities for

2 individual members of the reserve components of the

3 Armed Forces to be ordered to active duty, with the

4 consent of the members concerned, during peacetime

5 in positions traditionally filled by active duty person6 nel; and

7 (2) any additional legislation that the Secretary

8 considers necessary in order to increase such oppor9 tunities.

10 SEC. 512. INCREASED PERIOD OF ACTIVE DUTY SERVICE

11 FOR SELECTED RESERVE FORCES MOBI12 LIZED OTHER THAN DURING WAR OR NA13 TIONAL EMERGENCY.

14 (a) REVISION TO PERIOD OF EXTENSION OF ACTIVE

15 DUTY.—Section 673b of title 10, United States Code, is

16 amended—

17 (1) in subsection (a), by striking out ‘‘90 days.’’

18 and inserting in lieu thereof ‘‘180 days.’’; and

19 (2) by striking out subsection (i).

20 (b) REPORT REQUIRED.—(1) Not later than April 1,

21 1995, the Secretary of Defense shall submit to the con22 gressional defense committees a report on increasing the

23 authority of the President to order units and members of

24 the reserve components to active duty without the consent

25 of the members concerned.
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1 (2) The report shall include the following:

2 (A) An analysis of options for increased presi3 dential authority.

4 (B) An assessment of the effects of each option

5 on recruiting, retention, employer support for the re6 serve components, and the families of members of

7 the reserve components.

8 (C) Programs that the Secretary recommends

9 to mitigate any negative effects.

10 (D) Any option that the Secretary recommends.

11 (E) Any proposed legislation that the Secretary

12 considers necessary to implement any recommended

13 option.

14 SEC. 513. REPEAL OF OBSOLETE PROVISIONS PERTAINING

15 TO TRANSFER OF REGULAR ENLISTED MEM16 BERS TO RESERVE COMPONENTS.

17 (a) ARMY.—Section 3914 of title 10, United States

18 Code, is amended by striking out the second and third

19 sentences.

20 (b) AIR FORCE.—Section 8914 of such title, is

21 amended by striking out the second and third sentences.
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1 Subtitle C—Other Matters

2 SEC. 521. REVIEW OF CERTAIN DISMISSALS FROM THE

3 UNITED STATES MILITARY ACADEMY.

4 (a) REVIEW REQUIRED.—The Secretary of the Army

5 shall promptly carry out a thorough review of the dismis6 sals from the Corps of Cadets of the United States Mili7 tary Academy of James Webster Smith in 1874 and John8 son Chesnut Whittaker in 1882.

9 (b) PURPOSES OF REVIEW.—The purpose of each re10 view shall be to determine the validity of the original pro11 ceedings and the extent, if any, to which racial prejudice

12 or other improper factors now known may have tainted

13 the original proceedings.

14 (c) CORRECTION OF RECORDS.—If the Secretary de15 termines that the dismissal of James Webster Smith or

16 Johnson Chesnut Whittaker was in error or an injustice,

17 the Secretary may correct that person’s military records

18 (including the records of proceedings in such case).

19 (d) POSTHUMOUS COMMISSION.—Upon recommenda20 tion of the Secretary in the case of James Webster Smith

21 or Johnson Chesnut Whittaker, the President may issue

22 in the name of James Webster Smith or Johnson Chesnut

23 Whittaker, as the case may be, a posthumous commission

24 as an officer in the regular Army in the grade of second

25 lieutenant. Sections 1521(b) and 1523 of title 10, United
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1 States Code, shall apply with respect to a commission so

2 issued.

3 TITLE VI—COMPENSATION AND

4 OTHER PERSONNEL BENEFITS

5 Subtitle A—Pay and Allowances

6 SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1995.

7 (a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any

8 adjustment required by section 1009 of title 37, United

9 States Code, in elements of compensation of members of

10 the uniformed services to become effective during fiscal

11 year 1995 shall not be made.

12 (b) INCREASE IN BASIC PAY, BAS, AND BAQ.—Ef13 fective on January 1, 1995, the rates of basic pay, basic

14 allowance for subsistence, and basic allowance for quarters

15 of members of the uniformed services are increased by 2.6

16 percent.

17 Subtitle B—Bonuses and Special

18 and Incentive Pays

19 SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE

20 FORCES.

21 (a) SELECTED RESERVE REENLISTMENT BONUS.—

22 Section 308b(f) of title 37, United States Code, is amend23 ed by striking out ‘‘September 30, 1995’’ and inserting

24 in lieu thereof ‘‘September 30, 1996’’.
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1 (b) SELECTED RESERVE ENLISTMENT BONUS.—Sec2 tion 308c(e) of title 37, United States Code, is amended

3 by striking out ‘‘September 30, 1995’’ and inserting in

4 lieu thereof ‘‘September 30, 1996’’.

5 (c) SELECTED RESERVE AFFILIATION BONUS.—Sec6 tion 308e(e) of title 37, United States Code, is amended

7 by striking out ‘‘September 30, 1995’’ and inserting in

8 lieu thereof ‘‘September 30, 1996’’.

9 (d) READY RESERVE ENLISTMENT AND REENLIST10 MENT BONUS.—Section 308h(g) of title 37, United States

11 Code, is amended by striking out ‘‘September 30, 1995’’

12 and inserting in lieu thereof ‘‘September 30, 1996’’.

13 (e) PRIOR SERVICE ENLISTMENT BONUS.—Section

14 308i(i) of title 37, United States Code, is amended by

15 striking out ‘‘September 30, 1995’’ and inserting in lieu

16 thereof ‘‘September 30, 1996’’.

17 SEC. 612. EXTENSION AND MODIFICATION OF CERTAIN BO18 NUSES AND SPECIAL PAY FOR NURSE OFFI19 CER CANDIDATES, REGISTERED NURSES,

20 AND NURSE ANESTHETISTS.

21 (a) NURSE OFFICER CANDIDATE ACCESSION PRO22 GRAM.—Section 2130a(a)(1) of title 10, United States

23 Code, is amended by striking out ‘‘September 30, 1995,’’

24 and inserting in lieu thereof ‘‘September 30, 1998,’’.
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1 (b) ACCESSION BONUS FOR REGISTERED NURSES.—

2 Section 302d(a)(1) of title 37, United States Code, is

3 amended by striking out ‘‘September 30, 1995,’’ and in4 serting in lieu thereof ‘‘September 30, 1998,’’.

5 (c) INCENTIVE SPECIAL PAY FOR NURSE ANES6 THETISTS.—Section 302e(a)(1) of title 37, United States

7 Code, is amended—

8 (1) by striking out ‘‘September 30, 1995,’’ and

9 inserting in lieu thereof ‘‘September 30, 1998,’’; and

10 (2) by striking out ‘‘$6,000’’ and inserting in

11 lieu thereof ‘‘$15,000’’.

12 SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAY13 MENT OF OTHER BONUSES AND SPECIAL

14 PAYS.

15 (a) AVIATION OFFICER RETENTION BONUS.—Sec16 tion 301b(a) of title 37, United States Code, is amended

17 by striking out ‘‘September 30, 1994’’ and inserting in

18 lieu thereof ‘‘September 30, 1995’’.

19 (b) REENLISTMENT BONUS FOR ACTIVE MEM20 BERS.—Section 308(g) of title 37, United States Code, is

21 amended by striking out ‘‘September 30, 1995’’ and in22 serting in lieu thereof ‘‘September 30, 1996’’.

23 (c) ENLISTMENT BONUSES FOR CRITICAL SKILLS.—

24 Sections 308a(c) and 308f(c) of title 37, United States

25 Code, are each amended by striking out ‘‘September 30,
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1 1995’’ and inserting in lieu thereof ‘‘September 30,

2 1996’’.

3 (d) SPECIAL PAY FOR ENLISTED MEMBERS OF THE

4 SELECTED RESERVE ASSIGNED TO CERTAIN HIGH PRI5 ORITY UNITS.—Section 308d(c) of title 37, United States

6 Code, is amended by striking out ‘‘September 30, 1995’’

7 and inserting in lieu thereof ‘‘September 30, 1996’’.

8 (e) REPAYMENT OF EDUCATION LOANS FOR CER9 TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE10 LECTED RESERVE.—Section 2172(d) of title 10, United

11 States Code, is amended by striking out ‘‘October 1,

12 1995’’ and inserting in lieu thereof ‘‘October 1, 1996’’.

13 (f) SPECIAL PAY FOR CRITICALLY SHORT WARTIME

14 HEALTH SPECIALISTS IN THE SELECTED RESERVES.—

15 Section 613(d) of the National Defense Authorization Act,

16 Fiscal Year 1989 (37 U.S.C. 302 note) is amended by

17 striking out ‘‘September 30, 1995’’ and inserting in lieu

18 thereof ‘‘September 30, 1996’’.

19 (g) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI20 CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section

21 312(e) of title 37, United States Code, is amended by

22 striking out ‘‘September 30, 1995’’ and inserting in lieu

23 thereof ‘‘September 30, 1996’’.

24 (h) NUCLEAR CAREER ACCESSION BONUS.—Section

25 312b(c) of title 37, United States Code, is amended by
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1 striking out ‘‘September 30, 1995,’’ and inserting in lieu

2 thereof ‘‘September 30, 1996,’’.

3 (i) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—

4 Section 312c(d) of title 37, United States Code, is amend5 ed by striking out ‘‘October 1, 1995’’ and inserting in lieu

6 thereof ‘‘October 1, 1996’’.

7 Subtitle C—Travel and

8 Transportation Allowances

9 SEC. 621. RESPONSIBILITY FOR PREPARATION OF TRANS10 PORTATION MILEAGE TABLES.

11 Section 404(d)(1)(A) of title 37, United States Code,

12 is amended by striking out ‘‘the Secretary of the Army’’

13 and inserting in lieu thereof ‘‘the Secretary of Defense’’.

14 Subtitle D—Retired Pay and

15 Survivor Benefits

16 SEC. 631. CLARIFICATION OF CALCULATION OF RETIRED

17 PAY FOR OFFICERS WHO RETIRE IN A GRADE

18 LOWER THAN THE GRADE HELD AT RETIRE19 MENT.

20 (a) PREVENTION OF RETIRED PAY BASED ON

21 GRADE HIGHER THAN RETIRED GRADE.—Section

22 1401a(f) of title 10, United States Code, is amended—

23 (1) in the first sentence, by inserting ‘‘based on

24 the grade in which the member is retired’’ after ‘‘at

25 an earlier date’’;
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1 (2) in the second sentence, by inserting ‘‘, ex2 cept that such computation may not be based on a

3 rate of basic pay for a grade higher than the grade

4 in which the member is retired’’ before the period at

5 the end; and

6 (3) by striking out the third sentence.

7 (b) EFFECTIVE DATE.—The amendments made by

8 subsection (a) shall apply with respect to the computation

9 of the retired pay of a member of the armed forces who

10 retires on or after the date of the enactment of this Act.

11 SEC. 632. CREDITING OF RESERVE SERVICE OF ENLISTED

12 MEMBERS FOR COMPUTATION OF RETIRED

13 PAY.

14 (a) ARMY.—(1) Section 3925 of title 10, United

15 States Code, is amended—

16 (A) in subsection (a), by striking out ‘‘and of

17 computing his retired pay under section 3991 of this

18 title,’’; and

19 (B) by striking out subsection (c).

20 (2) Section 3991 of such title is amended—

21 (A) in subsection (a)—

22 (i) by striking out paragraph (1) and in23 serting in lieu thereof the following:

24 ‘‘(1) FORMULA.—The monthly retired pay of a

25 member entitled to such pay under this subtitle by
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1 reason of retirement under a provision of law re2 ferred to in paragraph (3) is computed by multiply3 ing the retired pay base (as computed under section

4 1406(c) or 1407 of this title) by the retired pay mul5 tiplier prescribed in section 1409 of this title for the

6 number of years credited to the member under sec7 tion 1405 of this title.’’; and

8 (ii) by adding at the end the following new

9 paragraph:

10 ‘‘(3) APPLICABILITY.—Paragraph (1) applies to

11 a member retired under the authority of section

12 3911, 3914, 3917, 3918, 3920, or 3924 of this

13 title.’’; and

14 (B) in subsection (b), by striking out paragraph

15 (3).

16 (3) The text of section 3992 of such title is amended

17 to read as follows:

18 ‘‘(a) RECOMPUTATION REQUIRED.—An enlisted

19 member or warrant officer of the Army who is advanced

20 on the retired list under section 3964 of this title is enti21 tled to recompute the member’s or officer’s retired pay in

22 accordance with this section.

23 ‘‘(b) FORMULA.—To recompute an enlisted member’s

24 retired pay or a warrant officer’s retired pay, multiply the

25 retired pay base (as computed under section 1406(c) or
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1 1407 of this title) by the retired pay multiplier prescribed

2 in section 1409 of this title for the number of years cred3 ited to the member or officer under section 1405 of this

4 title.

5 ‘‘(c) ROUNDING TO NEXT LOWER DOLLAR.—The

6 amount computed under subsection (b), if not a multiple

7 of $1, shall be rounded to the next lower multiple of $1.’’.

8 (b) NAVY AND MARINE CORPS.—The table in section

9 6333(a) of title 10, United States Code, is amended by

10 striking out ‘‘his years of active service in the armed

11 forces’’ in formula C under the column designated ‘‘Col12 umn 2’’ and inserting in lieu thereof ‘‘the years of service

13 credited to him under section 1405’’.

14 (c) AIR FORCE.—(1) Section 8925 of title 10, United

15 States Code, is amended—

16 (A) in subsection (a), by striking out ‘‘and of

17 computing his retired pay under section 8991 of this

18 title,’’; and

19 (B) by striking out subsection (c).

20 (2) Section 8991 of such title is amended—

21 (A) in subsection (a)—

22 (i) by striking out paragraph (1) and in23 serting in lieu thereof the following:

24 ‘‘(1) FORMULA.—The monthly retired pay of a

25 member entitled to such pay under this subtitle by
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1 reason of retirement under a provision of law re2 ferred to in paragraph (3) is computed by multiply3 ing the retired pay base (as computed under section

4 1406(e) or 1407 of this title) by the retired pay mul5 tiplier prescribed in section 1409 of this title for the

6 number of years credited to the member under sec7 tion 1405 of this title.’’; and

8 (ii) by adding at the end the following new

9 paragraph:

10 ‘‘(3) APPLICABILITY.—Paragraph (1) applies to

11 a member retired under the authority of section

12 8911, 8914, 8917, 8918, 8920, or 8924 of this

13 title.’’; and

14 (B) in subsection (b), by striking out paragraph

15 (3).

16 (3) The text of section 8992 of such title is amended

17 to read as follows:

18 ‘‘(a) RECOMPUTATION REQUIRED.—An enlisted

19 member or warrant officer of the Air Force who is ad20 vanced on the retired list under section 8964 of this title

21 is entitled to recompute the member’s or officer’s retired

22 pay in accordance with this section.

23 ‘‘(b) FORMULA.—To recompute an enlisted member’s

24 retired pay or a warrant officer’s retired pay, multiply the

25 retired pay base (as computed under section 1406(e) or
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1 1407 of this title) by the retired pay multiplier prescribed

2 in section 1409 of this title for the number of years cred3 ited to the member or officer under section 1405 of this

4 title.

5 ‘‘(c) ROUNDING TO NEXT LOWER DOLLAR.—The

6 amount computed under subsection (b), if not a multiple

7 of $1, shall be rounded to the next lower multiple of $1.’’.

8 (d) CONFORMING AMENDMENT.—Section 1405 of

9 such title is amended by adding at the end the following

10 new subsection:

11 ‘‘(c) EXCLUSION OF TIME REQUIRED TO BE MADE

12 UP.—Time required to be made up by an enlisted member

13 of the Army or Air Force under section 972 of this title

14 may not be counted in determining years of service under

15 subsection (a).’’.

16 (e) EFFECTIVE DATE.—This section shall apply to

17 the computation of the retired or retainer pay of any en18 listed member who retires or is transferred to the Fleet

19 Reserve or the Fleet Marine Corps Reserve on or after

20 the date of the enactment of this Act.

21 SEC. 633. FORFEITURE OF ANNUITY OR RETIRED PAY OF

22 MEMBERS CONVICTED OF ESPIONAGE.

23 (a) FORFEITURE.—Section 8312(b)(2)(A) of title 5,

24 United States Code, is amended—
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1 (1) by striking out ‘‘or article 106 (spies)’’ and

2 inserting in lieu thereof ‘‘, article 106 (spies), or ar3 ticle 106a (espionage)’’; and

4 (2) by striking out ‘‘or article 106’’ and insert5 ing in lieu thereof ‘‘, article 106, or article 106a’’.

6 (b) EFFECTIVE DATE.—The amendment made by

7 subsection (a) shall take effect on the date of the enact8 ment of this Act and shall apply to persons convicted of

9 espionage under section 906a of title 10, United States

10 Code (article 106a of the Uniform Code of Military Jus11 tice), on or after the date of the enactment of this Act.

12 Subtitle E—Defense Conversion,

13 Reinvestment, and Transition

14 Assistance Matters

15 SEC. 641. ELIGIBILITY OF MEMBERS RETIRED UNDER TEM16 PORARY SPECIAL RETIREMENT AUTHORITY

17 FOR SERVICEMEN’S GROUP LIFE INSURANCE.

18 (a) ELIGIBILITY.—Section 1965(5) of title 38,

19 United States Code, is amended—

20 (1) by striking out ‘‘and’’ at the end of sub21 paragraph (C);

22 (2) by redesignating subparagraph (D) as sub23 paragraph (E); and

24 (3) by inserting after subparagraph (C) the fol25 lowing new subparagraph (D):
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1 ‘‘(D) a person transferred to the Retired

2 Reserve of a uniformed service under the tem3 porary special retirement authority provided in

4 section 1331a of title 10 who has not received

5 the first increment of retirement pay or has not

6 reached sixty-one years of age; and’’.

7 (b) INSURANCE COVERAGE.—Section 1967(a) of such

8 title is amended—

9 (1) by striking out ‘‘and’’ at the end of para10 graph (2);

11 (2) by adding ‘‘and’’ at the end of paragraph

12 (3);

13 (3) by inserting after paragraph (3) the follow14 ing:

15 ‘‘(4) any member assigned to the Retired Re16 serve of a uniform service who meets the qualifica17 tions set forth in section 1965(5)(D) of this title;’’;

18 and

19 (4) in the second sentence, by inserting after

20 ‘‘section 1965(5)(C) of this title,’’ the following: ‘‘or

21 the first day a member of the Reserves meets the

22 qualifications of section 1965(5)(D) of this title,’’.

23 (c) DURATION OF COVERAGE.—Section 1968(a) of

24 such title is amended—
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1 (1) in the matter above paragraph (1), by strik2 ing out ‘‘section 1965(5)(B) or (C)’’ and inserting in

3 lieu thereof ‘‘subparagraphs (B), (C), or (D) of sec4 tion 1965(5)’’;

5 (2) in paragraph (4)—

6 (A) by striking out ‘‘or’’ at the end of sub7 paragraph (A);

8 (B) by striking out the period at the end

9 of subparagraph (B) and inserting in lieu there10 of ‘‘; or’’; and

11 (C) by adding at the end the following new

12 subparagraph:

13 ‘‘(C) unless on the date of such separation

14 or release the member is transferred to the Re15 tired Reserve of a uniformed service under the

16 temporary special retirement authority provided

17 in section 1331a of title 10, in which event the

18 insurance, unless converted to an individual pol19 icy under terms and conditions set forth in sec20 tion 1977(e) of this title, shall, upon timely

21 payment of premiums under terms prescribed

22 by the Secretary directly to the administrative

23 office established under section 1966(b) of this

24 title, continue in force until receipt of the first

25 increment of retirement pay by the member or
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1 the member’s sixty-first birthday, whichever oc2 curs earlier.’’; and

3 (3) by adding at the end the following:

4 ‘‘(6) with respect to a member of the Retired

5 Reserve who meets the qualifications of section

6 1965(5)(D) of this title, at such time as the member

7 receives the first increment of retirement pay, or the

8 member’s sixty-first birthday, whichever occurs ear9 lier, subject to the timely payment of the initial and

10 subsequent premiums, under terms prescribed by the

11 Secretary, directly to the administrative office estab12 lished under section 1966(b) of this title.’’.

13 (d) DEDUCTIONS.—Section 1969 of such title is

14 amended—

15 (1) in subsection (a)(2)—

16 (A) by striking out ‘‘or is assigned’’ and

17 inserting in lieu thereof ‘‘is assigned’’; and

18 (B) by inserting after ‘‘section 1965(5)(C)

19 of this title,’’ the following: ‘‘or is assigned to

20 the Retired Reserve and meets the qualifica21 tions of section 1965(5)(D) of this title,’’; and

22 (2) in subsection (e), by striking out ‘‘section

23 1965(5)(C)’’ in the first sentence and inserting in

24 lieu thereof ‘‘subparagraph (C) or (D) of section

25 1965(5)‘‘.
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1 SEC. 642. ANNUAL PAYMENTS FOR MEMBERS RETIRED

2 UNDER GUARD AND RESERVE TRANSITION

3 INITIATIVE.

4 (a) ANNUAL PAYMENT FOR ONE TO FIVE YEARS.—

5 Subsection (d) of section 4416 of the Defense Conversion,

6 Reinvestment, and Transition Assistance Act of 1992 (di7 vision D of Public Law 102–484; 10 U.S.C. 1162 note)

8 is amended—

9 (1) by striking out ‘‘for 5 years’’ and inserting

10 in lieu thereof ‘‘for a period of years prescribed by

11 the Secretary concerned’’;

12 (2) by striking out ‘‘5-year’’; and

13 (3) by adding at the end the following: ‘‘A pe14 riod prescribed for purposes of this subsection may

15 not be less than one year nor more than five years.’’.

16 (b) COMPUTATION OF ANNUAL PAYMENT.—Sub17 section (e) of such section is amended by adding at the

18 end the following:

19 ‘‘(3) In the case of a member who will attain 60 years

20 of age within one year after the date on which an annual

21 payment would otherwise be made to the member under

22 this section, the amount of the payment made on that date

23 shall be computed under this paragraph instead of para24 graph (1). The amount of such payment shall be equal

to 1 25 ⁄12 of the product of—
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1 ‘‘(A) the amount computed for the member

2 under paragraph (1); and

‘‘(B) the number equal to 1 3 ⁄30 of the total num4 ber of days in the period beginning on such date and

5 ending on the day before the date of the member’s

6 60th birthday.’’.

7 (c) COORDINATION WITH RETIRED PAY.—Such sec8 tion is further amended by adding at the end the following:

9 ‘‘(i) COORDINATION WITH RETIRED PAY.—Fifty per10 cent of the monthly amount of retired pay payable under

11 chapter 67 of this title to a member who receives one or

12 more annual payments under this section shall be de13 ducted and withheld from such monthly amount of retired

14 pay. The deductions shall be terminated when the total

15 amount so deducted and withheld equals the total amount

16 paid to the member under this section. The amount de17 ducted and withheld from the last monthly payment of re18 tired pay before termination of deductions may be less

19 than 50 percent of the monthly amount.’’.

20 SEC. 643. INCREASED ELIGIBILITY AND APPLICATION PERI21 ODS FOR TROOPS-TO-TEACHERS PROGRAM.

22 (a) PERIOD OF ELIGIBILITY.—Subsection (c) of sec23 tion 1151 of title 10, United States Code, is amended—

24 (1) in paragraph (1)(A), by striking out ‘‘seven25 year period beginning on October 1, 1992,’’ and in-
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1 serting in lieu thereof ‘‘nine-year period beginning

2 on October 1, 1990,’’; and

3 (2) by striking out paragraph (4).

4 (b) APPLICATION PERIOD.—Subsection (e)(1) of

5 such section is amended by striking out ‘‘submitted’’ in

6 the first sentence and all that follows through the end of

7 the second sentence and inserting in lieu thereof ‘‘timely

8 submitted to the Secretary of Defense. An application is

9 timely submitted if the application is submitted not later

10 than the latest date applicable to the applicant under this

11 paragraph. An application shall be submitted not later

12 than one year after the date of the discharge or release

13 of the applicant from active duty. In the case of an appli14 cant discharged or released from active duty before Janu15 ary 19, 1994, an application shall be submitted not later

16 than one year after the date of the enactment of the Na17 tional Defense Authorization Act for Fiscal Year 1995.

18 In the case of an applicant becoming educationally quali19 fied for teacher placement assistance in accordance with

20 subsection (c)(2), an application shall be submitted not

21 later than one year after the date on which the applicant

22 becomes educationally qualified.’’.
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1 SEC. 644. ASSISTANCE FOR ELIGIBLE MEMBERS TO OBTAIN

2 EMPLOYMENT WITH LAW ENFORCEMENT

3 AGENCIES.

4 (a) REVISED PROGRAM AUTHORITY.—Section 1152

5 of title 10, United States Code, is amended to read as

6 follows:

7 ‘‘§ 1152. Assistance to eligible members and former

8 members to obtain employment with law

9 enforcement agencies

10 ‘‘(a) PLACEMENT PROGRAM.—The Secretary of De11 fense may enter into an agreement with the Attorney Gen12 eral to establish or participate in a program to assist eligi13 ble members and former members of the armed forces to

14 obtain employment as law enforcement officers with State

15 law enforcement agencies, local law enforcement agencies,

16 or Indian tribes that perform law enforcement functions

17 (as determined by the Secretary of the Interior) following

18 the discharge or release of such members or former mem19 bers from active duty.

20 ‘‘(b) ELIGIBLE MEMBERS.—Any member or former

21 member who, during the 6-year period beginning on Octo22 ber 1, 1993, is separated from the armed forces with an

23 honorable discharge or is released from service on active

24 duty characterized as honorable by the Secretary con25 cerned shall be eligible to participate in a program covered

26 by an agreement referred to in subsection (a).
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1 ‘‘(c) SELECTION.—In the selection of applicants for

2 participation in a program covered by an agreement re3 ferred to in subsection (a), preference shall be given to

4 a member or former member who—

5 ‘‘(1) is selected for involuntary separation, is

6 approved for separation under section 1174a or

7 1175 of this title, or retires pursuant to the author8 ity provided in section 4403 of Public Law 102–484

9 (10 U.S.C. 1293 note); and

10 ‘‘(2) has a military occupational specialty,

11 training, or experience related to law enforcement

12 (such as service as a member of the military police)

13 or satisfies such other criteria for selection as, in ac14 cordance with the agreement, the Secretary, the At15 torney General, or a participating State or local law

16 enforcement agency or participating Indian tribe

17 may prescribe.

18 ‘‘(d) GRANTS TO FACILITATE EMPLOYMENT.—(1)

19 The Secretary may provide funds to the Attorney General

20 for grants under this section to reimburse State law en21 forcement agencies, local law enforcement agencies, or In22 dian tribes that perform law enforcement functions (as

23 determined by the Secretary of the Interior) for costs, in24 cluding salary and fringe benefits, of employing members
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1 or former members pursuant to a program referred to in

2 subsection (a).

3 ‘‘(2) No grant with respect to an eligible member or

4 former member may exceed a total of $50,000.

5 ‘‘(3) Any grant with respect to an eligible member

6 or former member shall be disbursed within 5 years after

7 the date of the placement of a member or former member

8 with a participating law enforcement agency or Indian

9 tribe.

10 ‘‘(4) Preference in awarding grants through existing

11 law enforcement hiring programs shall be given to State

12 or local law enforcement agencies or Indian tribes that

13 agree to hire eligible members and former members.

14 ‘‘(e) ADMINISTRATIVE EXPENSES.—Ten percent of

15 the amount, if any, appropriated for a fiscal year to carry

16 out a program established pursuant to subsection (a) may

17 be used to administer the program.

18 ‘‘(f) REQUIREMENT FOR APPROPRIATION.—No mem19 ber or former member may be selected to participate in

20 the program established by this section unless a sufficient

21 amount of appropriated funds are available at the time

22 of the selection to satisfy the obligations to be incurred

23 by the United States under an agreement referred to in

24 subsection (a) that applies with respect to such member

25 or former member.’’.
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1 (b) CLERICAL AMENDMENT.—The item relating to

2 such section in the table of sections at the beginning of

3 chapter 58 of title 10, United States Code, is amended

4 to read as follows:

‘‘1152. Assistance to eligible members and former members to obtain employment with law enforcement agencies.’’.

5 SEC. 645. TREATMENT OF RETIRED AND RETAINER PAY OF

6 MEMBERS OF CADRE OF CIVILIAN COMMU7 NITY CORPS.

8 Section 159(c)(3) of the National and Community

9 Service Act of 1990 (42 U.S.C. 12619(c)(3)) is amended

10 by adding at the end the following: ‘‘In the case of a mem11 ber of the permanent cadre who was recommended for ap12 pointment in accordance with section 162(a)(2)(A) and is

13 entitled to retired or retainer pay, section 5532 of title

14 5, United States Code, shall not apply to reduce the mem15 ber’s retired or retainer pay by reason of the member

16 being paid as a member of the cadre.’’.

17 Subtitle F—Other Matters

18 SEC. 651. DISABILITY COVERAGE FOR OFFICER CAN19 DIDATES GRANTED EXCESS LEAVE.

20 (a) ELIGIBILITY FOR RETIREMENT.—Section 1201

21 of title 10, United States Code, is amended—

22 (1) by inserting ‘‘(a) MEMBERS ON ACTIVE

23 DUTY ENTITLED TO PAY.—’’ before ‘‘Upon a deter24 mination’’; and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(b) MEMBERS ON EXCESS LEAVE.—(1) Upon a de4 termination by the Secretary concerned that a member re5 ferred to in paragraph (2) is unfit to perform the duties

6 of the member’s office, grade, rank, or rating because of

7 a physical disability incurred during a period described in

8 such paragraph, the Secretary may retire the member,

9 with retired pay computed under section 1401 of this title,

10 if the Secretary also makes the determinations described

11 in paragraphs (1), (2), and (3) of subsection (a) with re12 gard to such member.

13 ‘‘(2) Paragraph (1) applies to a member of the armed

14 forces who, during a period of authorized absence—

15 ‘‘(A) is participating in a program leading to

16 appointment, designation, or assignment in the

17 armed forces in an officer category; and

18 ‘‘(B) is not entitled to basic pay by reason of

19 the application of section 502(b) of title 37 to such

20 absence.’’.

21 (b) ELIGIBILITY FOR PLACEMENT ON TEMPORARY

22 DISABILITY RETIRED LIST.—Section 1202 of such title

23 is amended—

24 (1) by striking out ‘‘or any other members’’ and

25 inserting in lieu thereof ‘‘any other members’’; and
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1 (2) by inserting after ‘‘more than 30 days,’’ the

2 following: ‘‘or any member referred to in section

3 1201(b)(2) of this title’’.

4 (c) ELIGIBILITY FOR SEPARATION.—Section 1203 of

5 such title is amended—

6 (1) by inserting ‘‘(a) MEMBERS ON ACTIVE

7 DUTY ENTITLED TO PAY.—’’ before ‘‘Upon a deter8 mination’’;

9 (2) by striking out the second sentence (relating

10 to transfer to inactive status); and

11 (3) by adding at the end the following new sub12 sections:

13 ‘‘(b) MEMBERS ON EXCESS LEAVE.—Upon a deter14 mination by the Secretary concerned that a member re15 ferred to in paragraph (2) of section 1201(b) of this title

16 is unfit to perform the duties of the member’s office,

17 grade, rank, or rating because of a physical disability in18 curred during a period described in such paragraph, the

19 Secretary may separate the member, with severance pay

20 computed under section 1212 of this title, if the Secretary

21 also makes the determinations described in paragraphs

22 (1), (2), (3), and (4) of subsection (a) with regard to such

23 member.

24 ‘‘(c) TRANSFER TO INACTIVE STATUS LIST.—If a

25 member authorized to be separated under subsection (a)
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1 or (b) is eligible for transfer to the inactive status list

2 under section 1209 of this title, and so elects, the member

3 shall be transferred to that list instead of being sepa4 rated.’’.

5 (d) CONFORMING AMENDMENTS.—(1) Chapter 61 of

6 title 10, United States Code, is amended—

7 (A) by striking out the heading of section 1201

8 and inserting in lieu thereof the following:

9 ‘‘§ 1201. Regulars, members on active duty for more

10 than 30 days, certain members on excess

11 leave: retirement’’;

12 (B) by striking out the heading of section 1202

13 and inserting in lieu thereof the following:

14 ‘‘§ 1202. Regulars, members on active duty for more

15 than 30 days, certain members on excess

16 leave: temporary disability retired list’’;

17 and

18 (C) by striking out the heading of section 1203

19 and inserting in lieu thereof the following:

20 ‘‘§ 1203. Regulars, members on active duty for more

21 than 30 days, certain members on excess

22 leave: separation’’.

23 (2) The table of sections at the beginning of such

24 chapter is amended by striking out the items relating to
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1 sections 1201, 1202, and 1203 and inserting in lieu there2 of the following:

‘‘1201. Regulars, members on active duty for more than 30 days, certain members on excess leave: retirement.

‘‘1202. Regulars, members on active duty for more than 30 days, certain members on excess leave: temporary disability retired list.

‘‘1203. Regulars, members on active duty for more than 30 days, certain members on excess leave: separation.’’.

3 (e) EFFECTIVE DATE.—The amendments made by

4 this section shall take effect on the date of the enactment

5 of this Act and apply with respect to physical disabilities

6 incurred on or after such date.

7 SEC. 652. USE OF MORALE, WELFARE, AND RECREATION

8 FACILITIES BY MEMBERS OF RESERVE COM9 PONENTS AND DEPENDENTS.

10 Section 1065 of title 10, United States Code, is

11 amended to read as follows:

12 ‘‘§ 1065. Use of certain morale, welfare, and recre13 ation facilities by members of reserve

14 components and dependents

15 ‘‘(a) MEMBERS OF THE SELECTED RESERVE.—Mem16 bers of the Selected Reserve in good standing (as deter17 mined by the Secretary concerned) shall be permitted to

18 use MWR retail facilities on the same basis as members

19 on active duty.

20 ‘‘(b) RETIREES UNDER AGE 60.—Members of the re21 serve components who would be eligible for retired pay

22 under chapter 67 of this title but for the fact that the
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1 member is under 60 years of age shall be permitted to

2 use MWR retail facilities on the same basis as retired

3 members and retired former members of the Regular

4 Army, Regular Navy, Regular Air Force, and Regular Ma5 rine Corps.

6 ‘‘(c) MEMBERS OF READY RESERVE NOT IN SE7 LECTED RESERVE.—Subject to such regulations as the

8 Secretary of Defense may prescribe, members of the

9 Ready Reserve (other than members of the Selected Re10 serve) may be permitted to use MWR retail facilities on

11 the same basis as members serving on active duty.

12 ‘‘(d) DEPENDENTS.—(1) Dependents of members re13 ferred to in subsection (a) shall be permitted to use MWR

14 retail facilities on the same basis as dependents of mem15 bers on active duty.

16 ‘‘(2) Dependents of members referred to in sub17 section (b) shall be permitted to use MWR retail facilities

18 on the same basis as dependents of retired members and

19 retired former members of the Regular Army, Regular

20 Navy, Regular Air Force, and Regular Marine Corps.

21 ‘‘(e) MWR RETAIL FACILITY DEFINED.—In this sec22 tion, the term ‘MWR retail facilities’ means exchange

23 stores and other revenue generating facilities operated by

24 nonappropriated fund activities of the Department of De-
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1 fense for the morale, welfare, and recreation of members

2 of the armed forces.’’.

3 SEC. 653. SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR

4 DEPARTMENT OF DEFENSE PERSONNEL OUT5 SIDE THE UNITED STATES.

6 (a) IN GENERAL.—Chapter 53 of Title 10, United

7 States Code, is amended by adding at the end the follow8 ing new section:

9 ‘‘§ 1060a. Special supplemental food program

10 ‘‘(a) AUTHORITY.—The Secretary of Defense may

11 carry out a program to provide special supplemental food

12 benefits to members of the armed forces on duty at sta13 tions outside the United States (and its territories and

14 possessions) and to eligible civilians serving with, em15 ployed by, or accompanying the armed forces outside the

16 United States (and its territories and possessions).

17 ‘‘(b) FEDERAL PAYMENTS AND COMMODITIES.—For

18 the purpose of obtaining Federal payments and commod19 ities in order to carry out the program referred to in sub20 section (a), the Secretary of Agriculture shall make avail21 able to the Secretary of Defense from funds appropriated

22 for such purpose, the same payments and commodities as

23 are made for the special supplemental food program in

24 the United States under section 17 of the Child Nutrition

25 Act of 1966 (42 U.S.C. 1786).
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1 ‘‘(c) PROGRAM ADMINISTRATION.—(1)(A) The Sec2 retary of Defense shall administer the program referred

3 to in subsection (a) and, except as provided in subpara4 graph (B), shall determine eligibility for program benefits

5 under the criterion published by the Secretary of Agri6 culture under section 17 of the Child Nutrition Act of

7 1966 (42 U.S.C. 1786).

8 ‘‘(B) The Secretary of Defense shall prescribe regula9 tions governing computation of income eligibility stand10 ards for families of individuals participating in the pro11 gram under this section.

12 ‘‘(2) The program benefits provided under the pro13 gram shall be similar to benefits provided by State and

14 local agencies in the United States.

15 ‘‘(d) DEPARTURE FROM STANDARDS.—The Sec16 retary of Defense may authorize departures from stand17 ards prescribed by the Secretary of Agriculture regarding

18 the supplemental foods to be made available in the pro19 gram when local conditions preclude strict compliance or

20 when such compliance is highly impracticable.

21 ‘‘(e) REGULATIONS.—The Secretary of Defense shall

22 prescribe regulations to administer the program author23 ized by this section.

24 ‘‘(f) DEFINITIONS.—In this section:

25 ‘‘(1) The term ‘eligible civilian’ means—
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1 ‘‘(A) a dependent of a member of the

2 armed forces residing with the member outside

3 the United States;

4 ‘‘(B) an employee of a military department

5 who is a national of the United States and is

6 residing outside the United States in connection

7 with such individual’s employment or a depend8 ent of such individual residing with the em9 ployee outside the United States; or

10 ‘‘(C) an employee of a Department of De11 fense contractor who is a national of the United

12 States and is residing outside the United States

13 in connection with such individual’s employment

14 or a dependent of such individual residing with

15 the employee outside the United States.

16 ‘‘(2) The term ‘national of the United States’

17 means—

18 ‘‘(A) a citizen of the United States; or

19 ‘‘(B) a person who, though not a citizen of

20 the United States, owes permanent allegiance to

21 the United States (as defined in section

22 101(a)(22) of the Immigration and Nationality

23 Act (8 U.S.C. 1101(a)(22))).
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1 ‘‘(3) The term ‘dependent’ has the meaning

2 given such term in subparagraph (A), (D), (E), and

3 (I) of section 1072(2) of this title.’’.

4 (b) CLERICAL AMENDMENT.—The table of sections

5 at the beginning of chapter 53 of title 10, United States

6 Code, is amended by adding at the end the following new

7 item:

‘‘1060a. Special supplemental food program.’’.

8 SEC. 654. REIMBURSEMENT FOR CERTAIN LOSSES OF

9 HOUSEHOLD EFFECTS CAUSED BY HOSTILE

10 ACTION.

11 (a) AUTHORITY TO REIMBURSE.—Chapter 163 of

12 title 10, United States Code, is amended by adding at the

13 end the following new section:

14 ‘‘§ 2738. Reimbursement for certain losses of house15 hold effects caused by hostile action

16 ‘‘(a) AUTHORITY TO REIMBURSE.—The Secretary

17 concerned or, subject to appeal to the Secretary, the Judge

18 Advocate General of an armed force under the Secretary’s

19 jurisdiction, or the Chief Counsel of the Coast Guard, as

20 appropriate, if designated by the Secretary, may reim21 burse a member of the armed forces in an amount not

22 more than $100,000 for a loss described in subsection (b).

23 ‘‘(b) COVERED LOSSES.—This section applies with

24 respect to a loss of household effects sustained during a

25 move made incident to a change of permanent station
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1 when, as determined by the Secretary, the loss was caused

2 by a hostile action incident to war or a warlike action by

3 a military force.

4 ‘‘(c) LIMITATION.—The Secretary may provide reim5 bursement under this section for a loss described in sub6 section (b) only to the extent that the loss is not reim7 bursed under insurance or under the authority of another

8 provision of law.

9 ‘‘(d) APPLICABILITY OF OTHER AUTHORITIES AND

10 REQUIREMENTS.—Subsections (b), (d), (e), (f), and (g)

11 of section 2733 of this title shall apply to a request for

12 a reimbursement under this section as if the request were

13 a claim against the United States.’’.

14 (b) CLERICAL AMENDMENT.—The table of sections

15 at the beginning of such chapter is amended by adding

16 at the end the following:

‘‘2738. Reimbursement for certain losses of household effects caused by hostile

action.’’.

17 (c) EFFECTIVE DATE.—(1) Section 2738 of title 10,

18 United States Code, as added by subsection (a), applies

19 with respect to losses incurred after June 30, 1990.

20 (2) In the case of a loss incurred after June 30, 1990,

21 and before the date of the enactment of this Act, a request

22 for reimbursement shall be filed with the Secretary of the

23 military department concerned not later than two years

24 after such date of enactment.
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1 TITLE VII—HEALTH CARE

2 PROVISIONS

3 SEC. 701. REVISION OF DEFINITION OF DEPENDENTS TO IN4 CLUDE YOUNG PEOPLE BEING ADOPTED BY

5 MEMBERS OR FORMER MEMBERS.

6 (a) ELIGIBILITY FOR HEALTH BENEFITS.—Section

7 1072 of title 10, United States Code, is amended—

8 (1) in paragraph (2)(D), by striking out the

9 matter above clause (i) and inserting in lieu thereof

10 the following:

11 ‘‘(D) a child who—’’; and

12 (2) by adding at the end the following new

13 paragraph:

14 ‘‘(6) The term ‘child’, with respect to a member

15 or former member of a uniformed service, means the

16 following:

17 ‘‘(A) An unmarried natural child.

18 ‘‘(B) An unmarried adopted child.

19 ‘‘(C) An unmarried stepchild.

20 ‘‘(D) An unmarried person—

21 ‘‘(i) who is placed in the home of the

22 member or former member by a placement

23 agency (recognized by the Secretary of De24 fense) in anticipation of the legal adoption
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1 of the person by the member or former

2 member; and

3 ‘‘(ii) who otherwise meets the require4 ments specified in paragraph (2)(D).’’.

5 (b) CONFORMING AMENDMENT.—Section

6 401(b)(1)(B) of title 37, United States Code, is amended

7 by striking out ‘‘placement agency for the purpose of

8 adoption’’ and inserting in lieu thereof ‘‘placement agency

9 (recognized by the Secretary of Defense) in anticipation

10 of the legal adoption of the child by the member’’.

11 SEC. 702. AVAILABILITY OF DEPENDENTS’ DENTAL PRO12 GRAM OUTSIDE THE UNITED STATES.

13 Section 1076a of title 10, United States Code, is

14 amended—

15 (1) by redesignating subsection (g) as sub16 section (h); and

17 (2) by inserting after subsection (f) the follow18 ing new subsection (g):

19 ‘‘(g) CARE OUTSIDE THE UNITED STATES.—The

20 Secretary shall exercise the authority provided under sub21 section (a) to establish basic dental benefits plans for pro22 viding dental benefits outside the United States for

23 spouses and children of members of the uniformed services

24 accompanying the members on permanent assignments to

25 duty outside the United States.’’.
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1 SEC. 703. CONDITIONS UNDER WHICH MEDICAL AND DEN2 TAL CARE OF ABUSED DEPENDENTS IS AU3 THORIZED.

4 Section 1076(e)(1)(A) of title 10, United States

5 Code, is amended to read as follows:

6 ‘‘(A) a member of a uniformed service is con7 victed by a court-martial or a civil court for an of8 fense involving abuse of a dependent of the member,

9 as determined in accordance with regulations pre10 scribed by the administering Secretary for such uni11 formed service, and—

12 ‘‘(i) in the case of a court-martial convic13 tion, the member receives a dishonorable or

14 bad-conduct discharge or is dismissed or admin15 istratively discharged from a uniformed service

16 as a result of the conviction; or

17 ‘‘(ii) in the case of a civil court conviction,

18 the member is administratively discharged from

19 a uniformed service as a result of the convic20 tion; and’’.

21 SEC. 704. COORDINATION OF BENEFITS WITH MEDICARE.

22 Section 1086(d) of title 10, United States Code, is

23 amended by striking out paragraph (3) and inserting in

24 lieu thereof the following:

25 ‘‘(3)(A) Subject to subparagraph (B), if a person de26 scribed in paragraph (2) receives medical or dental care
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1 for which payment may be made under medicare and a

2 plan contracted for under subsection (a), the amount pay3 able for that care under the plan shall be the amount equal

4 to the excess of the total amount of the charges imposed

5 by the provider or providers of such care over the sum

6 of—

7 ‘‘(i) the amount paid for that care under medi8 care; and

9 ‘‘(ii) the total of all amounts paid or payable by

10 third party payers other than medicare.

11 ‘‘(B) The amount payable for care under a plan pur12 suant to subparagraph (A) may not exceed the total

13 amount that would be paid under the plan if payment for

14 that care were made solely under the plan.

15 ‘‘(C) In this paragraph:

16 ‘‘(i) The term ‘medicare’ means title XVIII of

17 the Social Security Act (42 U.S.C. 1395 et seq.).

18 ‘‘(ii) The term ‘third party payer’ has the

19 meaning given such term in section 1095(h)(1) of

20 this title.’’.

21 SEC. 705. AUTHORITY FOR REIMBURSEMENT OF PROFES22 SIONAL LICENSE FEES UNDER RESOURCE

23 SHARING AGREEMENTS.

24 Section 1096 of title 10, United States Code, is

25 amended by adding at the end the following:
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1 ‘‘(d) REIMBURSEMENT FOR LICENSE FEES.—In any

2 case in which it is necessary for a member of the uni3 formed services to pay a professional license fee imposed

4 by a government in order to provide health care services

5 at a facility of a civilian health care provider pursuant to

6 an agreement entered into under subsection (a), the Sec7 retary of Defense may reimburse the member for up to

8 $500 of the amount of the license fee paid by the

9 member.’’.

10 SEC. 706. CHIROPRACTIC HEALTH CARE DEMONSTRATION

11 PROGRAM.

12 (a) REQUIREMENT FOR PROGRAM.—(1) Not later

13 than 120 days after the date of enactment of this Act,

14 the Secretary of Defense, in consultation with the sec15 retaries of the military departments, shall develop and

16 carry out a demonstration program to evaluate the fea17 sibility and advisability of furnishing chiropractic care

18 through the medical care facilities of the Armed Forces.

19 (2) In carrying out the program, the Secretary of De20 fense shall—

21 (A) subject to paragraph (3), designate not less

22 than 10 major military medical treatment facilities

23 of the Department of Defense to furnish chiropractic

24 care under the program; and
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1 (B) enter into agreements with such number of

2 chiropractors as the Secretary determines sufficient

3 for the purposes of the program to furnish chiro4 practic care at such facilities under the program.

5 (3) The Secretary may not designate under para6 graph (2) any treatment facility that is located on a mili7 tary installation scheduled for closure or realignment

8 under a base closure law.

9 (b) PROGRAM PERIOD.—The Secretary shall carry

10 out the demonstration program in fiscal years 1995

11 through 1997.

12 (c) REPORTING REQUIREMENTS.—(1) Not later than

13 January 30, 1995, the Secretary of Defense shall submit

14 to the Committees on Armed Services of the Senate and

15 the House of Representatives a report on the demonstra16 tion program. The report shall—

17 (A) identify the treatment facilities designated

18 pursuant to subsection (a)(2)(A); and

19 (B) include a discussion of the plan for the con20 duct of the program.

21 (2) Not later than May 1, 1995, the Secretary of De22 fense shall submit to the committees referred to in para23 graph (1) a plan for evaluating the program, including a

24 schedule for conducting progress reviews and for submit25 ting a final report to the committees.
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1 (3) The Secretary shall submit to the committees re2 ferred to in paragraph (1) a final report in accordance

3 with the plan submitted to such committees pursuant to

4 paragraph (2).

5 (d) OVERSIGHT ADVISORY COMMITTEE.—(1)(A) Not

6 later than 30 days after the date of the enactment of this

7 Act, the Secretary of Defense shall establish an oversight

8 advisory committee to assist and advise the Secretary with

9 regard to the development and conduct of the demonstra10 tion program.

11 (B) The oversight advisory committee shall include

12 the following members:

13 (i) The Comptroller General of the United

14 States, or a designee from within the General Ac15 counting Office.

16 (ii) The Assistant Secretary of Defense for

17 Health Affairs, or a designee.

18 (iii) The Surgeon General of the Army, or a

19 designee.

20 (iv) The Surgeon General of the Navy, or a

21 designee.

22 (v) The Surgeon General of the Air Force, or

23 a designee.
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1 (vi) Not fewer than four independent represent2 atives of the chiropractic health care profession, ap3 pointed by the Secretary of Defense.

4 (2) The oversight advisory committee shall assist the

5 Secretary of Defense regarding—

6 (A) issues involving the professional credentials

7 of the chiropractors participating in the program;

8 (B) the granting of professional practice privi9 leges for the chiropractors at the treatment facilities

10 participating in the program;

11 (C) the preparation of the reports required

12 under subsection (c); and

13 (D) the evaluation of the program.

14 (e) DEFINITION.—For purposes of this section, the

15 term ‘‘base closure law’’ means each of the following:

16 (1) The Defense Base Closure and Realignment

17 Act of 1990 (part A of title XXIX of Public Law

18 101–510; 10 U.S.C. 2687 note).

19 (2) Title II of the Defense Authorization

20 Amendments and Base Closure and Realignment

21 Act (Public Law 100–526; 10 U.S.C. 2687 note).

22 (3) Section 2687 of title 10, United States

23 Code.
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1 SEC. 707. IMPLEMENTATION OF ANNUAL HEALTH CARE

2 SURVEY REQUIREMENT.

3 Section 724 of the National Defense Authorization

4 Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat.

5 2440; 10 U.S.C. 1071 note) is amended—

6 (1) by redesignating subsection (b) as sub7 section (c); and

8 (2) by inserting after subsection (a) the follow9 ing new subsection (b):

10 ‘‘(b) EXEMPTION.—An annual survey under sub11 section (a) shall be treated as not a collection of informa12 tion for the purposes for which such term is defined in

13 section 3502(4) of title 44.’’.

14 SEC. 708. ESTABLISHMENT OF MEDICARE SPECIAL EN15 ROLLMENT PERIOD FOR CERTAIN MILITARY

16 RETIREES AND DEPENDENTS AND PAYMENT

17 OF LATE ENROLLMENT PENALTY BY DEPART18 MENT OF DEFENSE.

19 (a) SPECIAL ENROLLMENT PERIOD.—Section 1837

20 of the Social Security Act (42 U.S.C. 1395p) is amended

21 by adding at the end the following new subsection:

22 ‘‘(j) In the case of an individual described in section

23 1839(g)(2), there shall be a special enrollment period—

24 ‘‘(1) beginning 45 days before the scheduled

25 date of the closure of the individual’s military treat26 ment facility (as defined in section 1839(g)(3)(C))
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1 and ending on the last day of the eighth month fol2 lowing the month in which the facility closed, or

3 ‘‘(2) in the case of a military treatment facility

4 that closed prior to January 1, 1995, beginning Jan5 uary 1, 1995, and ending at the end of August 31,

6 1995.’’.

7 (b) COVERAGE PERIOD FOR SPECIAL ENROLL8 MENTS.—Section 1838 of the Social Security Act (42

9 U.S.C. 1395q) is amended by adding at the end the follow10 ing new subsection:

11 ‘‘(f) Notwithstanding subsection (a), in the case of

12 an individual who enrolls during a special enrollment pe13 riod pursuant to section 1837(j), the coverage period shall

14 begin on the first day of the month following the month

15 in which the individual enrolls.’’.

16 (c) PAYMENT BY DEPARTMENT OF DEFENSE OF

17 MEDICARE PART B LATE ENROLLMENT PENALTY.—Sec18 tion 1839 of the Social Security Act (42 U.S.C. 1395r)

19 is amended by adding at the end the following new sub20 section:

21 ‘‘(g)(1) The increase in premiums under subsection

22 (b) due to late enrollment under this part by an individual

23 described in paragraph (2) who enrolls under this program

24 during a special enrollment period provided under section
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1 1837(j) shall be paid by the Secretary of the military de2 partment concerned.

3 ‘‘(2) An individual described in this paragraph is an

4 individual who, as of the date of the announcement of the

5 closure of the individual’s military treatment facility—

6 ‘‘(A) is 65 years of age or older;

7 ‘‘(B) is eligible for health care under section

8 1074(b) or 1076(b) of title 10, United States Code;

9 ‘‘(C) has never, since attaining the age of 65,

10 been enrolled under this part; and

11 ‘‘(D) has continuously maintained a primary

12 residence within 65 miles of a military treatment fa13 cility since attaining the age of 65.

14 ‘‘(3) For purposes of this subsection:

15 ‘‘(A) The date of the announcement of the clo16 sure of a military treatment facility is the date of

17 the submission to Congress under a base closure law

18 of a report recommending the closure of the military

19 base at which the facility is located.

20 ‘‘(B) The term ‘base closure law’ has the mean21 ing given such term in section 2825(d) of the Na22 tional Defense Authorization Act for Fiscal Years

23 1992 and 1993 (10 U.S.C. 2687 note).

24 ‘‘(C) The term ‘closure of the individual’s mili25 tary treatment facility’ means, with respect to an in-
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1 dividual, the closure under a base closure law of the

2 last military treatment facility within 65 miles of the

3 primary residence of the individual.

4 ‘‘(D) The term ‘military treatment facility’

5 means a facility of a uniformed service referred to

6 in section 1074(a) of title 10, United States Code,

7 in which health care is provided.’’.

8 SEC. 709. ELIGIBILITY FOR PARTICIPATION IN DEM9 ONSTRATION PROGRAMS FOR SALE OF PHAR10 MACEUTICALS.

11 Subparagraph (B) of section 702(c)(2) of the Na12 tional Defense Authorization Act for Fiscal Year 1993 (10

13 U.S.C. 1079 note) is amended to read as follows:

14 ‘‘(B) either—

15 ‘‘(i) resides in an area that is ad16 versely affected (as determined by the Sec17 retary) by the closure of a health care fa18 cility of the uniformed services as a result

19 of the closure or realignment of the mili20 tary installation at which such facility is

21 located; or

22 ‘‘(ii) can demonstrate to the satisfac23 tion of the Secretary that the person ob24 tained pharmaceuticals at a health care fa-
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1 cility referred to in clause (i) before the

2 closure of the facility.’’.

3 TITLE VIII—ACQUISITION POL4 ICY, ACQUISITION MANAGE5 MENT, AND RELATED MAT6 TERS

7 Subtitle A—Use of Merit Based

8 Selection Procedures

9 SEC. 801. POLICY FOR MERIT BASED AWARD OF CON10 TRACTS AND GRANTS.

11 (a) POLICY.—Section 2301 of title 10, United States

12 Code, is amended by adding at the end the following new

13 subsection:

14 ‘‘(e)(1) It is the policy of Congress that the Depart15 ment of Defense should not be required by legislation to

16 award a new contract or grant to a specific non-Federal

17 Government entity. It is further the policy of Congress

18 that any program, project, or technology identified in

19 legislation be procured through merit-based selection

20 procedures.

21 ‘‘(2) A provision of law may not be construed as re22 quiring the Department of Defense to award a new con23 tract or grant to a specific non-Federal Government entity

24 unless that provision of law—

25 ‘‘(A) specifically refers to this subsection;
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1 ‘‘(B) specifically identifies the particular non2 Federal Government entity to be awarded the con3 tract or grant; and

4 ‘‘(C) sets forth the national defense purpose to

5 be fulfilled by requiring the department to award a

6 new contract or grant to the specified non-Federal

7 Government entity.

8 ‘‘(3) The head of an agency may not award a contract

9 or make a grant pursuant to a provision of law that au10 thorizes or requires the awarding of the contract or the

11 making of the grant, as the case may be, in a manner

12 that is inconsistent with the policy set forth in paragraph

13 (1) until—

14 ‘‘(A) the Secretary of Defense submits to Con15 gress a notice in writing of the intent to award such

16 contract or to make such grant; and

17 ‘‘(B) a period of 180 days elapses after the date

18 on which the notice is received by Congress.

19 ‘‘(4) For purposes of this subsection—

20 ‘‘(A) a contract is a new contract unless the

21 work provided for in the contract is a continuation

22 of the work provided for in a preceding contract; and

23 ‘‘(B) a grant is a new grant unless the work

24 funded by the grant is substantially a continuation
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1 of the work for which funding is provided in a pre2 ceding grant.

3 ‘‘(4) Paragraph (3) does not apply to the Secretary

4 of Transportation or the Administrator of the National

5 Space and Aeronautics Administration.’’.

6 SEC. 802. CONTINUATION OF EXPIRING REQUIREMENT FOR

7 ANNUAL REPORT ON THE USE OF COMPETI8 TIVE PROCEDURES FOR AWARDING CERTAIN

9 CONTRACTS TO COLLEGES AND UNIVER10 SITIES.

11 Paragraph (3) of section 2361(c) of title 10, United

12 States Code, is repealed.

13 Subtitle B—Acquisition Assistance

14 Programs

15 SEC. 811. PROCUREMENT TECHNICAL ASSISTANCE PRO16 GRAMS.

17 (a) FUNDING.—Of the amount authorized to be ap18 propriated under section 301(5), $12,000,000 shall be

19 available for carrying out the provisions of chapter 142

20 of title 10, United States Code.

21 (b) SPECIFIC PROGRAMS.—Of the amounts made

22 available pursuant to subsection (a), $600,000 shall be

23 available for fiscal year 1995 for the purpose of carrying

24 out programs sponsored by eligible entities referred to in

25 subparagraph (D) of section 2411(1) of title 10, United
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1 States Code, that provide procurement technical assist2 ance in distressed areas referred to in subparagraph (B)

3 of section 2411(2) of such title. If there is an insufficient

4 number of satisfactory proposals for cooperative agree5 ments in such distressed areas to allow effective use of

6 the funds made available in accordance with this sub7 section in such areas, the funds shall be allocated among

8 the Defense Contract Administration Services regions in

9 accordance with section 2415 of such title.

10 SEC. 812. PILOT MENTOR-PROTEGE PROGRAM.

11 Of the amounts authorized to be appropriated for fis12 cal year 1995 pursuant to title I of this Act, $50,000,000

13 shall be available for conducting the pilot Mentor-Protege

14 Program established pursuant to section 831 of the Na15 tional Defense Authorization Act for Fiscal Year 1991

16 (Public Law 101–510; 10 U.S.C. 2301 note).

17 SEC. 813. INFRASTRUCTURE ASSISTANCE FOR HISTORI18 CALLY BLACK COLLEGES AND OTHER MINOR19 ITY INSTITUTIONS OF HIGHER EDUCATION.

20 Of the amounts authorized to be appropriated for fis21 cal year 1995 pursuant to title II of this Act, $35,000,000

22 shall be available for such fiscal year for infrastructure

23 assistance to historically Black colleges and universities

24 and minority institutions under section 2323(c)(3) of title

25 10, United States Code.
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1 SEC. 814. EXTENSION OF TEST PROGRAM FOR NEGOTIA2 TION OF COMPREHENSIVE SMALL BUSINESS

3 SUBCONTRACTING PLANS.

4 Section 834(e) of the National Defense Authorization

5 Act for Fiscal Years 1990 and 1991 (15 U.S.C. 637 note)

6 is amended by striking out ‘‘September 30, 1994’’ in the

7 second sentence and inserting in lieu thereof ‘‘September

8 30, 1998’’.

9 SEC. 815. LIMITATION REGARDING ACQUISITION ASSIST10 ANCE REGULATIONS REQUIRED BY PUBLIC

11 LAW 103–160 BUT NOT ISSUED.

12 (a) LIMITATION ON THE USE OF FUNDS.—None of

13 the funds authorized to be appropriated by this Act that

14 are made available for program element 65104D activities

15 may be expended until the Secretary of Defense takes the

16 actions required by the following provisions of the Na17 tional Defense Authorization Act for Fiscal Year 1994

18 (Public Law 103–160):

19 (1) Section 811(d)(1), relating to regulations

20 that address the matters described in subsections (g)

21 and (h)(2) of section 2323 of title 10, United States

22 Code.

23 (2) Section 813(b)(1), relating to the Depart24 ment of Defense policy regarding the pilot Mentor25 Protege Program.
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1 (b) ACTIONS REQUIRED.—(1) With respect to the

2 regulations referred to in subsection (a)(1), the Secretary

3 shall—

4 (A) publish proposed regulations within 15 days

5 after the date of the enactment of this Act in ac6 cordance with section 22 of the Office of Federal

7 Procurement Policy Act (41 U.S.C. 418b);

8 (B) provide a period of not less than 60 days

9 for public comment on the proposed regulations; and

10 (C) publish the final regulations not later than

11 120 days after the date of the enactment of this Act.

12 (2) With respect to the action referred to in sub13 section (a)(2), the Secretary shall ensure that—

14 (A) within 30 days after the date of the enact15 ment of this Act, the Department of Defense policy

16 regarding the pilot Mentor-Protege Program is in17 corporated into the Department of Defense Supple18 ment to the Federal Acquisition Regulation as an

19 appendix; and

20 (B) any subsequent revision to such policy (or

21 any successor to such policy) is published and main22 tained in such supplement as an appendix.

23 (c) PROGRAM ELEMENT 65104D ACTIVITIES DE24 FINED.—For purposes of this section, the program ele25 ment 65104D activities referred to in subsection (a) are
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1 the activities described as program element 65104D in the

2 materials submitted to Congress by the Secretary of De3 fense in support of the budget for fiscal year 1995 that

4 was submitted to Congress pursuant to section 1105(a)

5 of title 31, United States Code.

6 Subtitle C—Other Matters

7 SEC. 821. USE OF CERTAIN FUNDS PENDING SUBMISSION

8 OF A NATIONAL TECHNOLOGY AND INDUS9 TRIAL BASE PERIODIC DEFENSE CAPABILITY

10 ASSESSMENT AND A PERIODIC DEFENSE CA11 PABILITY PLAN.

12 (a) LIMITATION.—None of the funds authorized to

13 be appropriated by this Act that are made available for

14 program element 65104D activities may be expended until

15 the Secretary of Defense submits to Congress—

16 (1) a national technology and industrial base

17 periodic defense capability assessment required by

18 section 2505 of title 10, United States Code; and

19 (2) and a periodic defense capability plan re20 quired by section 2506 of such title.

21 (b) PROGRAM ELEMENT 65104D ACTIVITIES DE22 FINED.—For purposes of this section, the program ele23 ment 65104D activities referred to in subsection (a) are

24 the activities described as program element 65104D in the

25 materials submitted to Congress by the Secretary of De-
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1 fense in support of the budget for fiscal year 1995 that

2 was submitted to Congress pursuant to section 1105(a)

3 of title 31, United States Code.

4 SEC. 822. DELEGATION OF INDUSTRIAL MOBILIZATION AU5 THORITY.

6 Section 2538 of title 10, United States Code, is

7 amended—

8 (1) by striking out ‘‘through the Secretary of

9 Defense’’ each place it appears in subsections (a),

10 (c), and (d) and inserting in lieu thereof ‘‘through

11 the head of any department’’; and

12 (2) in subsection (c)—

13 (A) by striking out ‘‘in the opinion of the

14 Secretary of Defense’’ in the matter above

15 paragraph (1) and inserting in lieu thereof ‘‘in

16 the opinion of the head of any department’’;

17 and

18 (B) by striking out ‘‘Secretary’’ each place

19 it appears in paragraphs (2) and (3) and insert20 ing in lieu thereof ‘‘head of the department’’.
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1 SEC. 823. PERMANENT AUTHORITY FOR THE DEPARTMENT

2 OF DEFENSE TO SHARE EQUITABLY THE

3 COSTS OF CLAIMS UNDER INTERNATIONAL

4 ARMAMENTS COOPERATIVE PROGRAMS.

5 Subsection (c) of section 843 of the National Defense

6 Authorization Act for Fiscal Year 1993 (Public Law 102–

7 484; 106 Stat. 2469; 10 U.S.C. 2350a note) is repealed.

8 SEC. 824. DETERMINATIONS OF PUBLIC INTEREST UNDER

9 THE BUY AMERICAN ACT.

10 (a) CONSIDERATIONS.—Section 2533 of title 10,

11 United States Code, is amended—

12 (1) by striking out subsections (a) and (b) and

13 inserting in lieu thereof the following:

14 ‘‘(a) In determining under section 2 of title III of

15 the Act of March 3, 1993 (41 U.S.C. 10a), popularly

16 known as the ‘Buy American Act’, whether application of

17 title III of such Act is inconsistent with the public interest,

18 the Secretary of Defense shall consider the following:

19 ‘‘(1) The bids or proposals of small business

20 firms in the United States which have offered to fur21 nish American goods.

22 ‘‘(2) The bids or proposals of all other firms in

23 the United States which have offered to furnish

24 American goods.

25 ‘‘(3) The United States balance of payments.
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1 ‘‘(4) The cost of shipping goods which are other

2 than American goods.

3 ‘‘(5) Any duty, tariff, or surcharge which may

4 enter into the cost of using goods which are other

5 than American goods.

6 ‘‘(6) Any need to coordinate acquisition activi7 ties of the Department of Defense with obligations

8 contained in international agreements and with the

9 acquisition activities of major United States allies.

10 ‘‘(7) A need to ensure that the Department of

11 Defense has access to advanced state-of-the-art com12 mercial technology.

13 ‘‘(8) A need to protect the national technology

14 and industrial base and to provide for a defense mo15 bilization base.

16 ‘‘(9) A need to ensure that application of dif17 ferent rules of origin for United States end items

18 and foreign end items does not result in an award

19 to a firm other than a firm providing a product pro20 duced in the United States.

21 ‘‘(10) Any need—

22 ‘‘(A) to maintain the same source of sup23 ply for spare and replacement parts for an end

24 item that qualifies as an American good; or
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1 ‘‘(B) to maintain the same source of sup2 ply for spare and replacement parts in order

3 not to impair integration of the military and

4 commercial industrial base.

5 ‘‘(11) The national security interests of the

6 United States.’’; and

7 (2) by redesignating subsection (c) as sub8 section (b).

9 (b) CONFORMING AND CLERICAL AMENDMENTS.—

10 (1) The heading of section 2533 of such title is amended

11 to read as follows:

12 ‘‘§ 2533. Determinations of public interest under the

13 Buy American Act’’.

14 (2) The item relating to such section in the table of

15 sections at the beginning of subchapter V of chapter 148

16 of such title is amended to read as follows:

‘‘2533. Determinations of public interest under the Buy American Act.’’.

17 TITLE IX—DEPARTMENT OF DE18 FENSE ORGANIZATION AND

19 MANAGEMENT

20 Subtitle A—Secretarial Matters

21 SEC. 901. ADDITIONAL ASSISTANT SECRETARY OF DE22 FENSE.

23 (a) ESTABLISHMENT OF POSITION.—Section 138(a)

24 of title 10, United States Code, is amended by striking

25 out ‘‘ten’’ and inserting in lieu thereof ‘‘eleven’’.
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1 (b) EXECUTIVE LEVEL IV.—Section 5315 of title 5,

2 United States Code, is amended by striking out ‘‘Assistant

3 Secretaries of Defense (10).’’ and inserting in lieu thereof

4 the following:

5 ‘‘Assistant Secretaries of Defense (11).’’.

6 SEC. 902. ORDER OF SUCCESSION TO SECRETARIES OF THE

7 MILITARY DEPARTMENTS.

8 (a) ARMY.—Section 3017 of title 10, United States

9 Code, is amended—

10 (1) by redesignating paragraph (3) as para11 graph (4); and

12 (2) by inserting after paragraph (2) the follow13 ing new paragraph (3):

14 ‘‘(3) The General Counsel of the Department of

15 the Army.’’.

16 (b) NAVY.—Section 5017 of such title is amended—

17 (1) by redesignating paragraphs (3) and (4) as

18 paragraphs (5) and (6), respectively; and

19 (2) by inserting after paragraph (2) the follow20 ing new paragraph (3):

21 ‘‘(3) The General Counsel of the Department of

22 the Navy.’’.

23 (c) AIR FORCE.—Section 8017 of such title is amend24 ed—
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1 (1) by redesignating paragraph (3) as para2 graph (4); and

3 (2) by inserting after paragraph (2) the follow4 ing new paragraph (3):

5 ‘‘(3) The General Counsel of the Department of

6 the Air Force.’’.

7 Subtitle B—Commission on Roles

8 and Missions of the Armed Forces

9 SEC. 911. REVIEW OF RESERVE COMPONENTS.

10 Section 953(d) of the National Defense Authorization

11 Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

12 1739) is amended—

13 (1) in subsection (d)—

14 (A) by striking out ‘‘and’’ at the end of

15 paragraph (7);

16 (B) by striking out the period at the end

17 of paragraph (8) and inserting in lieu thereof ‘‘;

18 and’’; and

19 (C) by adding at the end the following new

20 paragraph:

21 ‘‘(9) the role of the National Guard and the

22 other reserve components.’’;

23 (2) in subsection (e)(3), by inserting after ‘‘De24 partment of Defense’’ the following: ‘‘, including the
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1 National Guard and the other reserve components’’;

2 and

3 (3) by adding at the end the following new sub4 section:

5 ‘‘(h) RECOMMENDATIONS CONCERNING RESERVE

6 COMPONENTS.—The Commission shall address the roles,

7 missions, and functions of the reserve components within

8 the total force of the armed forces, particularly in light

9 of lower budgetary resources that will be available to the

10 Department of Defense in the future. The Commission

11 should employ or consult private citizens with extensive

12 experience in matters concerning the National Guard and

13 other reserve components.’’.

14 SEC. 912. SUPPORT BY FEDERALLY FUNDED RESEARCH

15 AND DEVELOPMENT CENTERS.

16 Section 957 of the National Defense Authorization

17 Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

18 1741; 10 U.S.C. 111 note) is amended—

19 (1) by adding at the end the following new sub20 section:

21 ‘‘(f) SUPPORT FROM FEDERALLY FUNDED RE22 SEARCH AND DEVELOPMENT CENTERS.—Upon the re23 quest of the chairman of the Commission, the Secretary

24 of Defense shall make available to the Commission, with25 out reimbursement, the services of one or more federally
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1 funded research and development centers covered by spon2 soring agreements of the Department of Defense. The cost

3 of the services made available pursuant to this subsection

4 may not exceed $20,000,000.’’; and

5 (2) by striking out the section heading and in6 serting in lieu thereof the following:

7 ‘‘SEC. 957. PERSONNEL MATTERS; EXPERT SERVICES.’’.

8 Subtitle C—Other Matters

9 SEC. 921. COMPOSITION OF RESERVE FORCES POLICY

10 BOARD.

11 Section 175(a) of title 10, United States Code, is

12 amended—

13 (1) in paragraph (4), by striking out ‘‘or Regu14 lar Marine Corps’’ and inserting in lieu thereof ‘‘and

15 an officer of the Regular Marine Corps each’’;

16 (2) by striking out ‘‘and’’ at the end of para17 graph (8);

18 (3) by striking out the period at the end of

19 paragraph (9) and inserting in lieu thereof ‘‘; and’’;

20 and

21 (4) by adding at the end the following:

22 ‘‘(10) an officer of the Regular Army, Regular

23 Navy, Regular Air Force, or Regular Marine Corps

24 serving in a position on the Joint Staff who is des-
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1 ignated by the Chairman of the Joint Chiefs of

2 Staff.’’.

3 SEC. 922. CONTINUATION OF UNIFORMED SERVICES UNI4 VERSITY OF THE HEALTH SCIENCES.

5 (a) CLOSURE PROHIBITED.—The Uniformed Serv6 ices University of the Health Sciences may not be closed.

7 (b) BUDGETARY COMMITMENT TO CONTINUATION.—

8 It is the sense of Congress that the Secretary of Defense

9 should budget for the ongoing operation of the Uniformed

10 Services University of the Health Sciences as an institu11 tion of professional education that is vital to the education

12 and training each year of significant numbers of personnel

13 of the uniformed services for careers as uniformed services

14 health care providers.

15 SEC. 923. JOINT DUTY CREDIT FOR CERTAIN DUTY PER16 FORMED DURING MILITARY OPERATIONS IN

17 SUPPORT OF UNIFIED, COMBINED, OR UNIT18 ED NATIONS MILITARY OPERATIONS.

19 (a) CREDIT AUTHORIZED.—Section 664 of title 10,

20 United States Code, is amended by adding at the end the

21 following new subsection:

22 ‘‘(i) SPECIAL AUTHORITY.—(1) The Secretary of De23 fense, in consultation with the Chairman of the Joint

24 Chiefs of Staff, may give an officer who has completed

25 service described in paragraph (2) credit for having com-
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1 pleted a full tour of duty in a joint duty assignment, or

2 credit countable for determining cumulative service in

3 joint duty assignments, for the purposes of any provision

4 of this title, notwithstanding the length of such service or

5 whether such service is within the definition of the term

6 ‘joint duty assignment’ prescribed pursuant to section 668

7 of this title.

8 ‘‘(2) Service referred to in paragraph (1) is service

9 performed by an officer in combat or combat related mili10 tary operations, under the operational control of the com11 mander of a unified combatant command, the commander

12 of combined forces of allied nations, or the United Na13 tions, in which the officer gained significant experience in

14 joint matters, as determined by the Secretary.

15 ‘‘(3) Officers for whom joint duty credit is granted

16 pursuant to this subsection—

17 ‘‘(A) shall not be counted for the purposes of

18 paragraphs (7), (8), (9), (11), or (12) of section 667

19 of this title and subsections (a)(3) and (b) of section

20 662 of this title; and

21 ‘‘(B) are not subject to the requirements of sec22 tion 661(c) of this title relating to the sequence for

23 completion of a joint professional military education

24 school, completion of a full tour of duty in a joint
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1 duty assignment, and selection for a joint spe2 cialty.’’.

3 (b) APPLICABILITY.—Subsection (i) of section 664 of

4 title 10, United States Code, as added by subsection (a),

5 shall apply with respect to military operations conducted

6 after July 1, 1992.

7 TITLE X—GENERAL PROVISIONS

8 Subtitle A—Financial Matters

9 SEC. 1001. TRANSFER AUTHORITY.

10 (a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—

11 (1) Upon determination by the Secretary of Defense that

12 such action is necessary in the national interest, the Sec13 retary may transfer amounts of authorizations made avail14 able to the Department of Defense in this division for fis15 cal year 1995 between any such authorizations for that

16 fiscal year (or any subdivisions thereof). Amounts of au17 thorizations so transferred shall be merged with and be

18 available for the same purposes as the authorization to

19 which transferred.

20 (2) The total amount of authorizations that the Sec21 retary of Defense may transfer under the authority of this

22 section may not exceed $2,000,000,000.

23 (b) LIMITATIONS.—The authority provided by this

24 section to transfer authorizations—
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1 (1) may only be used to provide authority for

2 items that have a higher priority than the items

3 from which authority is transferred; and

4 (2) may not be used to provide authority for

5 an item that has been denied authorization by

6 Congress.

7 (c) EFFECT ON AUTHORIZATION AMOUNTS.—A

8 transfer made from one account to another under the au9 thority of this section shall be deemed to increase the

10 amount authorized for the account to which the amount

11 is transferred by an amount equal to the amount trans12 ferred.

13 (d) NOTICE TO CONGRESS.—The Secretary of De14 fense shall promptly notify Congress of transfers made

15 under the authority of this section.

16 SEC. 1002. EMERGENCY SUPPLEMENTAL AUTHORIZATION

17 OF APPROPRIATIONS FOR FISCAL YEAR 1994.

18 There is authorized to be appropriated as emergency

19 supplemental appropriations for fiscal year 1994 for the

20 incremental costs arising from ongoing United States op21 erations in Somalia, Bosnia, Southwest Asia, and Haiti,

22 $1,198,300,000 as follows:

23 (1) For Military Personnel:

24 (A) For the Army, $6,600,000.

25 (B) For the Navy, $19,400,000.
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1 (C) For the Air Force, $18,400,000.

2 (2) For Operation and Maintenance:

3 (A) For the Army, $420,100,000.

4 (B) For the Navy, $104,800,000.

5 (C) For the Air Force, $560,100,000.

6 (D) For Defense-wide activities,

7 $21,600,000.

8 (3) For Procurement:

9 (A) For Aircraft Procurement, Army,

10 $20,300,000.

11 (B) For Other Procurement, Army,

12 $200,000.

13 (C) For Other Procurement, Air Force,

14 $26,800,000.

15 SEC. 1003. DATE FOR SUBMISSION OF FUTURE-YEARS MIS16 SION BUDGET.

17 Section 222(a) of title 10, United States Code, is

18 amended by striking out ‘‘at the same time’’ in the second

19 sentence and inserting in lieu thereof ‘‘not later than 60

20 days after the date on which’’.
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1 Subtitle B—Matters Relating to

2 Allies and Other Nations

3 SEC. 1011. REPEAL OF LIMITATION ON OVERSEAS MILI4 TARY END STRENGTH.

5 Section 1302 of the National Defense Authorization

6 Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat.

7 2545; 10 U.S.C. 113 note) is repealed.

8 SEC. 1012. AUTHORIZED END STRENGTH FOR MILITARY

9 PERSONNEL IN EUROPE.

10 (a) END STRENGTH.—Paragraph (1) of section

11 1002(c) of the National Defense Authorization Act, 1985

12 (22 U.S.C. 1928 note) is amended to read as follows:

13 ‘‘(1) The end strength level of members of the Armed

14 Forces of the United States assigned to permanent duty

15 ashore in European member nations of NATO may not

16 exceed a permanent ceiling of approximately 100,000 in

17 any fiscal year.

18 ‘‘(2) Notwithstanding paragraph (1), the end

19 strength level of members of the Armed Forces of the

20 United States assigned to permanent duty ashore in Euro21 pean member nations of NATO may exceed 100,000 in

22 a fiscal year if, before September 1 of that fiscal year,

23 the President certifies to Congress that it is essential for

24 the end strength level to exceed 100,000 in that fiscal year

25 in order to attain national security objectives of the United
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1 States in Europe and that the number of personnel in ex2 cess of 100,000 does not exceed the number of additional

3 personnel necessary to attain such objectives. In no event

4 may the end strength level exceed 113,000 in any fiscal

5 year.’’.

6 (b) CONFORMING AMENDMENT.—Section 1303 of the

7 National Defense Authorization Act for Fiscal Year 1993

8 (Public Law 102–484; 106 Stat. 2546) is repealed.

9 (c) EFFECTIVE DATE.—The amendments made by

10 subsection (a) shall take effect on October 1, 1995.

11 SEC. 1013. EXTENSION AND REVISION OF AUTHORITIES RE12 LATING TO COOPERATIVE THREAT REDUC13 TION.

14 (a) FUNDING FOR FISCAL YEAR 1995.—Funds au15 thorized to be appropriated under section 301(19) shall

16 be available for cooperative threat reduction with states

17 of the former Soviet Union under the Cooperative Threat

18 Reduction Act of 1993 (title XII of Public Law 103–160;

19 22 U.S.C. 5951 et seq.).

20 (b) SEMI-ANNUAL REPORTS.—Section 1207 of such

21 Act (22 U.S.C. 5956) is amended by striking out ‘‘and

22 not later than October 30, 1994,’’ and inserting in lieu

23 thereof ‘‘October 30, 1994, April 30, 1995, and October

24 30, 1995,’’.
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1 SEC. 1014. DEFENSE COOPERATION BETWEEN THE UNITED

2 STATES AND ISRAEL.

3 (a) FINDINGS.—Congress makes the following find4 ings:

5 (1) The President has made a commitment to

6 maintaining the qualitative superiority of the Israeli

7 Defense Force over any potential combination of po8 tential adversaries.

9 (2) Despite the peace process in which Israel is

10 engaged, Israel continues to face difficult threats to

11 its national security.

12 (3) The threats are compounded by the pro13 liferation of weapons of mass destruction and ballis14 tic missiles.

15 (4) Congress recognizes the many benefits to

16 the United States resulting from the strategic rela17 tionship that exists between the United States and

18 Israel.

19 (5) Congress is supportive of the objective of

20 the President to enhance United States-Israel mili21 tary and technical cooperation, particularly in the

22 areas of missile defense and counter-proliferation.

23 (6) Congress is supportive of the establishment

24 of the United States-Israel Science and Technology

25 Commission in 1993.
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1 (7) Maintaining the qualitative superiority of

2 the Israeli Defense Force and strengthening the de3 fense ties and science and technology cooperation be4 tween the United States and Israel will help ensure

5 that Israel has the military strength and political

6 support necessary to take risks for peace while pro7 viding Arab states with an incentive to pursue nego8 tiations instead of war.

9 (8) Israel continues to cooperate with the

10 United States on numerous theater missile defense

11 programs, including the Arrow Tactical Anti-Missile

12 program and the boost phase intercept technology

13 program.

14 (9) It is in the national interests of the United

15 States and Israel to strengthen existing mechanisms

16 for cooperation and to eliminate unnecessary bar17 riers to further collaboration between the United

18 States and Israel.

19 (b) SENSE OF CONGRESS.—It is the sense of Con20 gress that Congress—

21 (1) encourages the President to ensure that any

22 conventional defense system or technology offered

23 for release to any NATO or other major non-NATO

24 ally should concurrently be available for purchase by
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1 Israel unless such action would contravene United

2 States national interests; and

3 (2) urges the President to make available to Is4 rael, within existing technology transfer laws, regula5 tions, and policies, advanced United States tech6 nology necessary for continued progress in coopera7 tive United States-Israel research and development

8 of theater missile defenses.

9 SEC. 1015. MILITARY-TO-MILITARY CONTACTS AND COM10 PARABLE ACTIVITIES.

11 (a) ACTIVITIES AUTHORIZED.—(1) Chapter 6 of title

12 10, United States Code, is amended by adding at the end

13 the following new section:

14 ‘‘§ 166b. Military-to-military contacts and comparable

15 activities

16 ‘‘(a) AUTHORITY.—The Secretary of Defense may

17 conduct military-to-military contacts and comparable ac18 tivities that are designed to encourage a democratic ori19 entation of defense establishments and military forces of

20 other countries.

21 ‘‘(b) ADMINISTRATION.—The Secretary may provide

22 funds appropriated for carrying out subsection (a) to the

23 following officials for use as provided in subsection (c):

24 ‘‘(1) The commander of a combatant command,

25 upon the request of the commander.
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1 ‘‘(2) An officer designated by the Chairman of

2 the Joint Chiefs of Staff, with respect to an area or

3 areas not under the area of responsibility of a com4 mander of a combatant command.

5 ‘‘(3) The head of any Department of Defense

6 component.

7 ‘‘(c) AUTHORIZED ACTIVITIES.—An official provided

8 funds under subsection (b) may use such funds for the

9 following activities and expenses:

10 ‘‘(1) The activities of traveling contact teams,

11 including any transportation expenses, translation

12 services expenses, and administrative expenses that

13 are related to such activities.

14 ‘‘(2) The activities of military liaison teams.

15 ‘‘(3) Exchanges of—

16 ‘‘(A) civilian or military personnel between

17 the Department of Defense and defense min18 istries of foreign governments; and

19 ‘‘(B) military personnel between units of

20 the armed forces and units of foreign armed

21 forces.

22 ‘‘(4) Seminars and conferences held primarily

23 in a theater of operations.

24 ‘‘(5) Distribution of publications primarily in a

25 theater of operations.
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1 ‘‘(6) Personnel expenses for Department of De2 fense civilian and military personnel to the extent

3 that such expenses relate to participation in activi4 ties described in paragraphs (3), (4), and (5).

5 ‘‘(7) Reimbursement of military personnel ap6 propriations accounts for the pay and allowances

7 paid to National Guard personnel and other reserve

8 components personnel for service while engaged in

9 activities referred to in other paragraphs of this sub10 section.

11 ‘‘(d) RELATIONSHIP TO OTHER FUNDING.—Any

12 amount provided during any fiscal year to an official

13 under subsection (b) for activities or expenses referred to

14 in subsection (c) shall be in addition to amounts otherwise

15 available for such activities and expenses for that fiscal

16 year.

17 ‘‘(e) LIMITATIONS.—(1) Funds may not be provided

18 under this section for a fiscal year for any activity for

19 which—

20 ‘‘(A) funding was proposed in the budget sub21 mitted to Congress for such fiscal year pursuant to

22 section 1105(a) of title 31; and

23 ‘‘(B) Congress did not authorize appropriations.

24 ‘‘(2) An activity may not be conducted under this sec25 tion with a foreign country unless the Secretary of State
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1 approves the conduct of such activity in that foreign coun2 try.

3 ‘‘(f) MILITARY-TO-MILITARY CONTACTS DEFINED.—

4 In this section, the term ‘military-to-military contacts’

5 means contacts between members of the armed forces and

6 members of foreign armed forces through activities de7 scribed in subsection (c).’’.

8 (2) The table of sections at the beginning of chapter

9 6 of such title is amended by adding at the end the follow10 ing new item:

‘‘166b. Military-to-military contacts and comparable activities.’’.

11 (b) FUNDING.—Of the amount authorized to be ap12 propriated under section 301(5) for operation and mainte13 nance for Defense-wide activities, $46,300,000 shall be

14 available to the Secretary of Defense for the purposes of

15 carrying out activities under section 166b of title 10,

16 United States Code, as added by subsection (a).

17 SEC. 1016. FOREIGN DISASTER RELIEF.

18 (a) AUTHORITY.—(1) Subchapter I of chapter 20 of

19 title 10, United States Code, is amended by adding at the

20 end the following new section:

21 ‘‘§ 404. Foreign disaster relief

22 ‘‘(a) IN GENERAL.—The President may conduct dis23 aster relief activities outside the United States to respond

24 to manmade or natural disasters when necessary to pre25 vent loss of lives.
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1 ‘‘(b) FORMS OF ASSISTANCE.—Assistance provided

2 under this section may include transportation, supplies,

3 services, and equipment.

4 ‘‘(c) DETERMINATION REQUIRED.—No assistance

5 may be furnished pursuant to this section unless the

6 President determines that the provision of disaster relief

7 is in the national interest of the United States and is nec8 essary to prevent loss of lives.

9 ‘‘(d) REPORT REQUIRED.—Not later than 48 hours

10 after the commencement of disaster relief activities, the

11 President shall transmit to the Congress a report contain12 ing the determination required by subsection (c) and a de13 scription of the following:

14 ‘‘(1) The manmade or natural disaster for

15 which disaster relief is necessary.

16 ‘‘(2) The threat to human lives presented by

17 the disaster.

18 ‘‘(3) The United States military personnel and

19 material resources that are involved or expected to

20 be involved.

21 ‘‘(4) The disaster relief that is being provided

22 or is expected to be provided by other nations or

23 public or private relief organizations.

24 ‘‘(5) The anticipated duration of the disaster

25 relief activities.’’.
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1 (2) The table of sections at the beginning of such sub2 chapter is amended by adding at the end the following:

‘‘404. Foreign disaster relief.’’.

3 (b) FUNDING OF ACTIVITIES.—Of the amount au4 thorized to be appropriated under subsection 301(5),

5 $46,300,000 shall be available to the Secretary of Defense

6 for the purpose of carrying out disaster relief activities

7 under section 404 of title 10, United States Code, as

8 added by subsection (a).

9 Subtitle C—Nonproliferation and

10 Counterproliferation of Weapon

11 Systems and Related Systems

12 SEC. 1021. EXTENSION AND REVISION OF NONPROLIFERA13 TION AUTHORITIES.

14 (a) EXTENSION OF NONPROLIFERATION AUTHORI15 TIES.—Section 1505 of the National Defense Authoriza16 tion Act for Fiscal Year 1993 (22 U.S.C. 5859a) is

17 amended—

18 (1) in subsection (a), by striking out ‘‘during

19 fiscal year 1994’’ and inserting in lieu thereof ‘‘dur20 ing fiscal years 1994 and 1995’’; and

21 (2) in subsection (e), by striking out ‘‘fiscal

22 year 1994’’ and inserting in lieu thereof ‘‘fiscal

23 years 1994 and 1995’’.

24 (b) ACTIVITIES FOR WHICH ASSISTANCE MAY BE

25 PROVIDED.—Subsection (b)(4) of such section is amended
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1 by striking out ‘‘nuclear proliferation through joint tech2 nical projects and improved intelligence sharing’’ and in3 serting in lieu thereof ‘‘nuclear, biological, chemical, and

4 missile proliferation through technical projects and im5 proved information sharing’’.

6 (c) SOURCES OF ASSISTANCE.—Subsection (d) of

7 such section is amended—

8 (1) in paragraph (1)—

9 (A) by inserting ‘‘for fiscal year 1994’’

10 after ‘‘under this section’’; and

11 (B) by striking out ‘‘fiscal year 1994 or’’

12 and inserting in lieu thereof ‘‘fiscal year 1994.

13 Funds provided as assistance under this section

14 for fiscal year 1995 shall be derived from

15 amounts made available to the Department of

16 Defense for fiscal year 1995. Alternatively,

17 funds provided as assistance under this section

18 for a fiscal year referred to in this paragraph

19 may be derived’’; and

20 (2) in paragraph (3), by inserting after

21 ‘‘$25,000,000’’ the following: ‘‘for fiscal year 1994

22 or $15,000,000 for fiscal year 1995’’.
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1 SEC. 1022. JOINT COMMITTEE FOR THE REVIEW OF

2 COUNTERPROLIFERATION PROGRAMS OF

3 THE UNITED STATES.

4 (a) COMPOSITION.—Subsection (a) of section 1605 of

5 the National Defense Authorization Act for Fiscal Year

6 1994 (Public Law 103–160; 107 Stat 1845) is amended—

7 (1) in paragraph (1)—

8 (A) by striking out ‘‘Non-Proliferation’’ in

9 the matter above subparagraph (A) and insert10 ing in lieu thereof ‘‘Counterproliferation’’;

11 (B) by striking out subparagraphs (B) and

12 (E); and

13 (C) by redesignating subparagraphs (C),

14 (D), and (F) as subparagraphs (B), (C), and

15 (D), respectively;

16 (2) in paragraph (2), by adding at the end the

17 following: ‘‘The Secretary of Energy shall serve as

18 the Vice Chairman of the committee.’’;

19 (3) in paragraph (4), by adding at the end the

20 following: ‘‘The Secretary of Energy may delegate to

21 the Under Secretary of Energy responsible for na22 tional security programs of the Department of En23 ergy the performance of the duties of the Vice

24 Chairman of the committee.’’; and

25 (4) by striking out paragraph (5).
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1 (b) PURPOSES OF COMMITTEE.—Subsection (b) of

2 such section is amended—

3 (1) in paragraph (1)(A), by striking out ‘‘non4 proliferation policy’’ and inserting in lieu thereof

5 ‘‘counterproliferation policy’’; and

6 (2) by adding at the end the following new

7 paragraphs:

8 ‘‘(3) To prioritize programs and funding.

9 ‘‘(4) To encourage and facilitate interagency

10 and interdepartmental funding of programs in order

11 to ensure necessary levels of funding to develop, op12 erate, and field highly-capable systems.

13 ‘‘(5) To insure that Department of Energy pro14 grams are integrated with the operational needs of

15 other departments and agencies of the Federal Gov16 ernment.

17 ‘‘(6) To ensure that Department of Energy na18 tional security programs include development of sys19 tems for deployment as well as research.’’.

20 (c) DUTIES.—Subsection (c) of such section is

21 amended—

22 (1) in paragraph (1)—

23 (A) by striking out ‘‘(including

24 counterproliferation capabilities) and tech25 nologies for support of United States non-
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1 proliferation policy’’ in the matter above sub2 paragraph (A) and inserting in lieu thereof

3 ‘‘and technologies for support of United States

4 nonproliferation policy and counterproliferation

5 policy’’;

6 (B) by inserting ‘‘and’’ at the end of sub7 paragraph (D); and

8 (C) by striking out subparagraphs (F) and

9 (G);

10 (2) by striking out paragraphs (2), (3), and (7);

11 (3) in paragraph (4), by striking out ‘‘to sup12 port fully the nonproliferation policy of the United

13 States’’;

14 (4) by redesignating paragraphs (4), (5), and

15 (6) as paragraphs (2), (3), and (4), respectively; and

16 (5) by adding at the end the following new

17 paragraph (5):

18 ‘‘(5) assess each fiscal year the effectiveness of

19 the committee actions during the preceding fiscal

20 year, including, particularly, the status of rec21 ommendations made during such preceding fiscal

22 year that were reflected in the budget submitted to

23 Congress pursuant to section 1105(a) of title 31,

24 United States Code, for the fiscal year following the

25 fiscal year in which the assessment is made.’’.
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1 (d) COMMITTEE RECOMMENDATIONS.—Subsection

2 (e) of such section is amended to read as follows:

3 ‘‘(e) RECOMMENDATIONS.—The committee shall sub4 mit to the President and the heads of all appropriate de5 partments and agencies of the Federal Government such

6 programmatic recommendations regarding existing,

7 planned, or new programs as the committee considers ap8 propriate to encourage funding for capabilities and tech9 nologies at the level necessary to support United States

10 counterproliferation policy.’’.

11 (e) EXTENSION OF COMMITTEE.—Subsection (f) of

12 such section is amended by striking out ‘‘six months after

13 the date on which the report of the Secretary of Defense

14 under section 1606 is submitted to Congress’’ and insert15 ing in lieu thereof ‘‘at the end of September 30, 1996’’.

16 SEC. 1023. REPORT ON COUNTERPROLIFERATION ACTIVI17 TIES AND PROGRAMS.

18 (a) REPORT REQUIRED.—Not later than May 1,

19 1995, and not later than May 1 of each year thereafter,

20 the Secretary of Defense shall submit to the appropriate

21 committees of Congress a report of the findings of the

22 Counterproliferation Program Review Committee estab23 lished by section 1605 of the National Defense Authoriza24 tion Act for Fiscal Year 1994 (Public Law 103–160; 107

25 Stat 1845). The Secretary shall submit any special annex
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1 of the report to the committees of Congress that tradition2 ally receive information in the annex in the performance

3 of oversight functions of such committees.

4 (b) CONTENT OF THE REPORT.—The report shall in5 clude the following matters:

6 (1) A complete list, by specific program ele7 ment, of the existing, planned, or newly proposed ca8 pabilities and technologies reviewed by the commit9 tee pursuant to section 1605(c) of Public Law 103–

10 160.

11 (2) A complete description of the requirements

12 and priorities established by the Counterproliferation

13 Program Review Committee.

14 (3) A comprehensive discussion of the near15 term, mid-term, and long-term programmatic op16 tions formulated by the committee for meeting re17 quirements prescribed by the committee and for

18 eliminating deficiencies identified by the committee,

19 including the annual funding requirements and com20 pletion dates established for each such option.

21 (4) An explanation of the recommendations

22 made pursuant to section 1605(c) of Public Law

23 103–160, together with a full discussion of the ac24 tions taken to implement such recommendations or

25 otherwise taken on the recommendations.
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1 (5) A discussion and assessment of the status

2 of each committee recommendation during the fiscal

3 year preceding the fiscal year in which the report is

4 submitted, including, particularly, the status of rec5 ommendations made during such preceding fiscal

6 year that were reflected in the budget submitted to

7 Congress pursuant to section 1105(a) of title 31,

8 United States Code, in the fiscal year of the report.

9 (6) Each specific Department of Energy pro10 gram that the Secretary of Energy plans to develop

11 to initial operating capability and each such program

12 that the Secretary does not plan to develop to initial

13 operating capability.

14 (7) For each technology program scheduled to

15 reach initial operational capability, a recommenda16 tion from the Chairman of the Joint Chiefs of Staff

17 that represents the views of the commanders of the

18 unified and specified commands regarding the utility

19 and requirement of the program.

20 (c) FORMS OF REPORT.—The report shall be submit21 ted in both unclassified and classified forms, including an

22 annex to the classified report for special compartmented

23 information programs, special access programs, and spe24 cial activities programs.

25 (d) DEFINITIONS.—In this section:
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1 (1) The term ‘‘appropriate committees of Con2 gress’’ means—

3 (A) the Committee on Armed Services, the

4 Committee on Appropriations, and the Select

5 Committee on Intelligence of the Senate; and

6 (B) the Committee on Armed Services, the

7 Committee on Appropriations, and the Select

8 Committee on Intelligence of the House of Rep9 resentatives.

10 (2) The term ‘‘intelligence community’’ has the

11 meaning given such term in section 3 of the Na12 tional Security Act of 1947 (50 U.S.C. 401a).

13 SEC. 1024. AMOUNTS FOR COUNTERPROLIFERATION AC14 TIVITIES.

15 (a) COUNTERPROLIFERATION ACTIVITIES.—Of the

16 amount authorized to be appropriated in section 201(4),

17 $12,500,000 shall be available for counterproliferation ac18 tivities.

19 (b) EDUCATION IN SUPPORT OF

20 COUNTERPROLIFERATION ACTIVITIES.—Of the amount

21 authorized to be appropriated in section 301(5), not more

22 than $1,000,000 shall be available for providing education

23 to members of the Armed Forces in matters relating to

24 counterproliferation.
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1 SEC. 1025. RESTRICTION RELATING TO REPORT ON PRO2 LIFERATION OF FOREIGN MILITARY SAT3 ELLITES.

4 None of the funds available to the Department of De5 fense for travel may be expended for travel by the Assist6 ant Secretary of Defense for International Security Policy

7 until the Secretary of Defense submits to Congress the

8 report required by section 1363 of the National Defense

9 Authorization Act for Fiscal Year 1993 (Public Law 102–

10 484; 106 Stat. 2560) together with the certification re11 quired by section 211(d) of the National Defense Author12 ization Act for Fiscal Year 1994 (Public Law 103–160;

13 107 Stat. 1584).

14 Subtitle D—Peace Operations

15 SEC. 1031. REPORTS ON REFORMING MULTILATERAL

16 PEACE OPERATIONS.

17 (a) REPORTS REQUIRED.—The Secretary of Defense

18 shall submit to the congressional defense committees two

19 reports on United States proposals for improving United

20 Nations management of peace operations. The Secretary

21 shall submit the first report not later than December 1,

22 1994, and the second report not later than June 1, 1995.

23 (b) CONTENT OF REPORTS.—(1) Each report shall

24 contain—

25 (A) a discussion of the status of implementation

26 of United States proposals contained in section IV
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1 (relating to strengthening the United Nations) of the

2 document entitled ‘‘The Clinton Administration’s

3 Policy on Reforming Multilateral Peace Operations’’

4 that was issued by the Executive Office of the Presi5 dent in May 1994; and

6 (B) an analysis of the results of such implemen7 tation.

8 (2) Each report shall cover, at a minimum, the fol9 lowing matters:

10 (A) The reconfiguration and expansion of the

11 staff for the United Nations Department of Peace12 keeping Operations.

13 (B) The elimination by the United Nations of

14 lengthy, potentially disastrous delays after a peace

15 operation has been authorized.

16 (C) The establishment by the United Nations of

17 a professional peace operations training program for

18 commanders and other military and civilian person19 nel.

20 (D) United States assistance to facilitate im21 provements by the United Nations in the matters

22 described in subparagraphs (A) and (C) and the

23 terms under which such assistance has been or is

24 being provided.
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1 (c) DEFINITION.—Is this section, the term ‘‘peace op2 eration’’ means an operation to maintain or restore inter3 national peace and security under chapter VI or chapter

4 VII of the Charter of the United Nations.

5 SEC. 1032. SUPPORT FOR INTERNATIONAL PEACEKEEPING

6 AND PEACE ENFORCEMENT.

7 (a) SENSE OF CONGRESS.—It is the sense of Con8 gress that—

9 (1) the President should initiate consultations

10 with the bipartisan leadership of Congress, including

11 the leadership of the relevant committees, as far in

12 advance as possible regarding international peace13 keeping or peace enforcement activities of the Unit14 ed Nations that would involve the participation of

15 United States combat forces and such consultations

16 should continue throughout the duration of such ac17 tivities;

18 (2) the consultations should take place prior to

19 the vote by the United States on United Nations Se20 curity Council resolutions authorizing, extending, or

21 revising the mandates for these types of activities;

22 (3) United Nations Security Council resolutions

23 authorizing peacekeeping or peace enforcement ac24 tivities should clearly state the threat to inter25 national peace and security presented by the conflict
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1 in question, as well as the political and military ob2 jectives, the anticipated duration, and an exit strat3 egy for each activity;

4 (4) the United States should be fully reim5 bursed for troop contributions and assistance pro6 vided to United Nations peacekeeping and peace en7 forcement activities;

8 (5) the United Nations should rarely conduct

9 peace enforcement operations in view of the complex10 ity of such operations and the difficulty of achieving

11 unity of command and expeditious decisionmaking

12 through the United Nations;

13 (6) United States combat forces should be

14 under the operational control of qualified command15 ers and should have clear and effective command

16 and control arrangements, appropriate rules of en17 gagement, and clear and unambiguous mission state18 ments;

19 (7) United States combat forces should not be

20 under the command and control of foreign com21 manders in peace enforcement operations conducted

22 by the United Nations except in the most extraor23 dinary circumstances; and

24 (8) the Secretary of Defense should have the

25 lead responsibility within the executive branch for
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1 the management of peacekeeping and peace enforce2 ment activities of the United Nations in which

3 United States combat forces participate.

4 (b) SUPPORT AUTHORIZED.—(1) Section 403 of title

5 10, United States Code, is amended to read as follows:

6 ‘‘§ 403. International peacekeeping and international

7 peace enforcement: support involving

8 United States combat forces

9 ‘‘(a) AUTHORITY.—Notwithstanding any other provi10 sion of law, the Secretary of Defense may—

11 ‘‘(1) pay, out of funds in the Contributions for

12 International Peacekeeping and Peace Enforcement

13 Activities Fund established by subsection (g), the

14 United States fair share (as determined by the Sec15 retary) of assessments for international peacekeep16 ing or international peace enforcement activities of

17 the United Nations in which United States combat

18 forces participate; and

19 ‘‘(2) furnish assistance, on a reimbursable

20 basis, in support of such activities.

21 ‘‘(b) FORMS OF ASSISTANCE.—Assistance provided

22 under this section may include supplies, services, and

23 equipment.

24 ‘‘(c) DETERMINATION REQUIRED.—No assessment

25 may be paid and no assistance may be furnished pursuant
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1 to this section unless the President determines that the

2 provision of assistance is in the national interest of the

3 United States.

4 ‘‘(d) ADVANCE NOTICE.—(1) In the case of any inter5 national peacekeeping or international peace enforcement

6 operation of the United Nations in which United States

7 combat forces are to participate, not less than 15 days

8 before an initial deployment of United States combat

9 forces, payment of a United Nations assessment, furnish10 ing of assistance of a value in excess of $14,000,000, or

11 waiver of reimbursement to the United States under sub12 section (e), the President shall transmit to the designated

13 congressional committees a report, which may be classified

14 in whole or in part, that contains the determination re15 quired by subsection (c) and the following matters:

16 ‘‘(A) A description of the threat to international

17 peace and security presented by the conflict involved.

18 ‘‘(B) The United States interests that will be

19 advanced by the operation and by the United States

20 action.

21 ‘‘(C) The political and military objectives of the

22 operation.

23 ‘‘(D) The exit criteria and likely duration of the

24 operation.
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1 ‘‘(E) The personnel and material resources that

2 have been pledged, or are otherwise expected to be

3 made available, by other nations to the United Na4 tions for the operation.

5 ‘‘(F) The units of the armed forces that will

6 participate.

7 ‘‘(G) The necessity for involvement of United

8 States forces.

9 ‘‘(H) The command arrangements for those

10 forces and, if any of the United States forces are to

11 be placed under the operational control of foreign

12 commanders, the justification for doing so.

13 ‘‘(I) The rules of engagement for the operation.

14 ‘‘(J) An assessment of the risks involved in the

15 operation.

16 ‘‘(K) In the case of payment of an assessment,

17 the amount to be paid and the terms under which

18 the payment is to be made.

19 ‘‘(L) In the case of assistance, the supplies,

20 services, or equipment to be provided by the United

21 States and the terms under which such supplies,

22 services, or equipment are to be provided.

23 ‘‘(M) In the case of a waiver of reimbursement,

24 the justification for the waiver.
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1 ‘‘(2) If the President determines that an unforeseen

2 emergency requires the immediate deployment of United

3 States combat troops or the immediate furnishing of as4 sistance of a value in excess of $14,000,000 under this

5 section, the President—

6 ‘‘(A) may waive the requirement of paragraph

7 (1) that a report be transmitted at least 15 days in

8 advance of the action; and

9 ‘‘(B) shall promptly notify the designated com10 mittees of such waiver and such deployment or

11 transfer.

12 ‘‘(e) REIMBURSEMENT.—(1) The President shall re13 quire reimbursement from the United Nations or from any

14 other source for the participation of any force of the

15 armed forces in support of international peacekeeping or

16 international peace enforcement activities of the United

17 Nations or for the provision of assistance by the Secretary

18 of Defense in support of such activities.

19 ‘‘(2) Any funds received as reimbursements shall be

20 used as follows:

21 ‘‘(A) As a first priority, for the payment of the

22 incremental costs of the military departments and

23 Defense Agencies providing the participating United

24 States forces or the supplies, services, or equipment

25 involved.
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1 ‘‘(B) As a second priority, for the payment of

2 the incremental costs of any other United States

3 forces that are operating in support of international

4 peacekeeping or international peace enforcement ac5 tivities but for which reimbursement is not possible.

6 ‘‘(3) After use of reimbursement funds for the pur7 poses specified in paragraph (2), any remainder of such

8 funds shall be credited to the Contributions for Inter9 national Peacekeeping and Peace Enforcement Activities

10 Fund established by subsection (g).

11 ‘‘(4) Reimbursements utilized for the payment of in12 cremental costs shall be credited, at the option of the Sec13 retary of the military department concerned or the head

14 of the Defense Agency concerned, either to an appropria15 tion, fund, or other account obligated to pay such costs

16 or to an appropriate appropriation, fund, or other account

17 available for paying such costs.

18 ‘‘(f) WAIVER OF REIMBURSEMENT.—The President

19 may waive, in whole or in part, any reimbursement re20 quired under subsection (a)(2) or (e) in exceptional cir21 cumstances upon determining that such waiver is in the

22 national interest of the United States.

23 ‘‘(g) ESTABLISHMENT OF ACCOUNT.—There is here24 by established in the Treasury of the United States a fund

25 to be known as the ‘Contributions for International Peace-
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1 keeping and Peace Enforcement Activities Fund’.

2 Amounts appropriated or otherwise credited to the Fund

3 shall be available until expended for, and shall be used

4 for, paying assessments for United Nations operations

5 under this section.

6 ‘‘(h) AUTHORITY INAPPLICABLE WHEN UNITED

7 STATES COMBAT FORCES NOT INVOLVED.—The author8 ity in subsection (a) to pay United Nations assessments

9 for international peacekeeping and international peace en10 forcement activities of the United Nations may not be con11 strued as authorizing payment of United Nations assess12 ments for any such activity in which United States combat

13 forces do not participate.

14 ‘‘(i) COORDINATION WITH OTHER LAWS.—This sec15 tion may not be construed as superseding any provision

16 of the War Powers Resolution. This section does not pro17 vide authority for the participation of United States com18 bat forces in any international peacekeeping or inter19 national peace enforcement operation.

20 ‘‘(j) DEFINITIONS.—In this section:

21 ‘‘(1) The term ‘designated congressional com22 mittees’ means the Committees on Armed Services,

23 Appropriations, and Foreign Relations of the Senate

24 and the Committees on Armed Services, Appropria-
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1 tions, and Foreign Affairs of the House of Rep2 resentatives.

3 ‘‘(2) The term ‘combat forces’ means forces of

4 the armed forces that have combat missions as pri5 mary missions.

6 ‘‘(3) The term ‘international peacekeeping’

7 means those activities performed pursuant to Chap8 ter VI of the United Nations Charter.

9 ‘‘(4) The term ‘international peace enforcement’

10 means those activities performed pursuant to Chap11 ter VII of the United Nations Charter.’’.

12 (2) The item relating to section 403 in the table of

13 sections at the beginning of subchapter I of chapter 20

14 of such title is amended to read as follows:

‘‘403. International peacekeeping and international peace enforcement: support

involving United States combat forces.’’.

15 (c) AUTHORIZED SUPPORT FOR FISCAL YEAR

16 1995.—Not more than $300,000,000 is authorized to be

17 appropriated for fiscal year 1995 for the Contributions for

18 International Peacekeeping and Peace Enforcement Ac19 tivities Fund under section 301(20).
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1 Subtitle E—Reporting

2 Requirements

3 SEC. 1041. REPORT ON OFFENSIVE BIOLOGICAL WARFARE

4 PROGRAM OF THE STATES OF THE FORMER

5 SOVIET UNION.

6 (a) FINDINGS.—Congress makes the following find7 ings:

8 (1) The United States has identified non9 proliferation as a high priority in the conduct of

10 United States national security policy.

11 (2) The United States is seeking universal ad12 herence to global regimes that control nuclear, chem13 ical, and biological weapons and is promoting new

14 measures that provide increased transparency of bio15 logical weapons-related activities and facilities in an

16 effort to help deter violations of and enhance compli17 ance with the Biological Weapons Convention

18 (BWC).

19 (3) Questions continue to arise regarding offen20 sive biological weapons research, development, test21 ing production, and storage in the countries of the

22 former Soviet Union as well as in other countries.

23 (b) SENSE OF CONGRESS.—It is the sense of Con24 gress that—
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1 (1) the President should continue to urge all

2 signatories to the Biological Weapons Convention to

3 comply fully with the terms of that convention and

4 with other international agreements relating to the

5 control of biological weapons; and

6 (2) as the President encourages increased

7 transparency of biological weapons-related activities

8 and facilities to deter violations of and enhance com9 pliance with the Biological Weapons Convention, the

10 President should also take appropriate actions to en11 sure that the United States is prepared to counter

12 the effects of use of biological weapons by others.

13 (c) REPORT REQUIRED.—Not later than 120 days

14 after the enactment of this Act, the Secretary of Defense

15 shall submit to the congressional defense committees a re16 port on the status of the offensive biological warfare pro17 gram in the Russian Federation and the other independ18 ent states of the former Soviet Union.

19 (d) CONTENT OF REPORT.—The report shall include

20 the following matters:

21 (1) An assessment of the extent of compliance

22 of the independent states of the former Soviet Union

23 with the Biological Weapons Convention and other

24 international agreements relating to the control of

25 biological weapons.
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1 (2) An evaluation of the extent of control and

2 oversight by the government of the Russian Federa3 tion over the former Soviet military and dual civil4 ian-military biological warfare programs.

5 (3) The extent, if any, of the biological warfare

6 agent stockpile in any of the independent states of

7 the former Soviet Union.

8 (4) The extent and scope, if any, of continued

9 biological warfare research, development, testing,

10 and production by such state, including the sites and

11 types of activity at those sites.

12 (5) An evaluation of the effectiveness of pos13 sible delivery systems of biological weapons, includ14 ing tube and rocket artillery, bomber aircraft, and

15 ballistic missiles.

16 (6) An evaluation of United States capabilities

17 to detect and monitor biological warfare research,

18 development, testing, production, and storage.

19 (7) On the basis of the assessment and evalua20 tions referred to in other paragraphs of this sub21 section, recommendations by the Secretary of De22 fense and Chairman of the Joint Chiefs of Staff for

23 the improvement of United States biological warfare

24 defense and counter-measures.
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1 (e) FORM OF REPORT.—The Secretary shall submit

2 the report in classified and unclassified versions.

3 (f) DEFINITIONS.—In this section:

4 (1) The term ‘‘Biological Weapons Convention’’

5 means the Convention on the Prohibition, Produc6 tion, and Stockpiling of Bacteriological (Biological)

7 and Toxin Weapons and on Their Destruction, done

8 at Washington, London, and Moscow on April 10,

9 1972.

10 (2) The term ‘‘independent states of the former

11 Soviet Union’’ has the same meaning given that

12 term in section 3 of the FREEDOM Support Act

13 (22 U.S.C. 5801).

14 SEC. 1042. CONTINUATION OF REQUIREMENTS FOR SUB15 MITTAL OF CERTAIN REPORTS TO CON16 GRESS.

17 (a) PRESERVATION OF REQUIREMENTS.—The re18 porting requirements set forth in the provisions of law re19 ferred to in subsection (b) shall not terminate under sub20 section (a) of section 1151 of the National Defense Au21 thorization Act for Fiscal Year 1994 (Public Law 103–

22 160; 107 Stat. 1758; 10 U.S.C. 113 note).

23 (b) COVERED REPORTS.—Subsection (a) applies to

24 the reports required under the following provisions of law:
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1 (1) Section 2662 of title 10, United States

2 Code, relating to reports on real property trans3 actions.

4 (2) Section 2672a(b) of title 10, United States

5 Code, relating to reports on urgent acquisitions of

6 land.

7 (3) Section 2687(b)(1) of title 10, United

8 States Code, relating to notifications of certain base

9 closures and realignments.

10 (4) Section 2690(b)(2) of title 10, United

11 States Code, relating to notifications of proposed

12 conversions of heating facilities at United States in13 stallations in Europe.

14 (5) Section 2804(b) of title 10, United States

15 Code, relating to reports on contingency military

16 construction projects.

17 (6) Section 2806(c)(2) of title 10, United

18 States Code, relating to reports on contributions for

19 NATO infrastructure in excess of amounts appro20 priated for such contributions.

21 (7) Subsections (b) and (c) of section 2807 of

22 title 10, United States Code, relating to notifications

23 and reports on architectural and engineering services

24 and construction design.
232

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1 (8) Section 2823(b) of title 10, United States

2 Code, relating to notifications regarding disagree3 ments between certain officials on the availability of

4 locations for suitable alternative housing for the De5 partment of Defense.

6 (9) Subsections (b) and (c) of section 2825 of

7 title 10, United States Code, relating to notifications

8 regarding improvements of family housing or con9 struction of replacement family housing.

10 (10) Section 2827(b) of title 10, United States

11 Code, relating to notifications regarding relocation of

12 military family housing units.

13 (11) Section 2835(g)(1) of title 10, United

14 States Code, relating to economic analyses on the

15 cost effectiveness of leasing family housing to be

16 constructed or rehabilitated.

17 (12) Section 2861(a) of title 10, United States

18 Code, relating to the annual report on military con19 struction activities and family housing activities.

20 (13) Subsections (e) and (f) of section 2865 of

21 title 10, United States Code, relating to notifications

22 regarding unauthorized energy conservation con23 struction projects and an annual report regarding

24 energy conservation actions.
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1 (14) Section 406(i) of title 37, United States

2 Code, relating to the annual report regarding de3 pendents accompanying members stationed outside

4 the United States in relation to the eligibility of such

5 members to receive travel and transportation allow6 ances.

7 (15) Section 1008(a) of title 37, United States

8 Code, relating to the annual report by the President

9 on adjustments of rates of pay and allowances for

10 members of the uniformed services.

11 (16) Section 326(a)(5) of the National Defense

12 Authorization Act for Fiscal Year 1993 (Public Law

13 102–484; 106 Stat. 2368; 10 U.S.C. 2301 note), re14 lating to reports on use of certain ozone-depleting

15 substances.

16 (17) Subsections (e) and (f) of section 2921 of

17 the National Defense Authorization Act for Fiscal

18 Year 1991 (10 U.S.C. 2687 note), relating to notifi19 cations regarding negotiations for payments-in-kind

20 for the release of improvements at overseas military

21 installations to host countries and an annual report

22 on the status and use of the Department of Defense

23 Overseas Military Facility Investment Recovery Ac24 count.
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1 (18) Section 1505(f)(3) of the Military Child

2 Care Act of 1989 (title XV of Public Law 101–189;

3 103 Stat. 1594; 10 U.S.C. 113 note), relating to re4 ports on closures of military child development cen5 ters.

6 (19) Subsections (a) and (d) of section 7 of the

7 Organotin Antifouling Paint Control Act of 1988

8 (Public Law 100–133; 102 Stat. 607; 33 U.S.C.

9 2406), relating to the annual report on the monitor10 ing of estuaries and near-coastal waters for con11 centrations of organotin.

12 Subtitle F—Acceptance of Pre-re13 lease Services of Nonviolent Of14 fenders

15 SEC. 1051. USE OF INMATE LABOR AT MILITARY INSTALLA16 TIONS.

17 (a) USE OF INMATE LABOR AUTHORIZED.—Chapter

18 155 of title 10, United States Code, is amended by adding

19 at the end the following new section:

20 ‘‘§ 2610. Acceptance of services of inmates of State

21 and local correctional facilities

22 ‘‘(a) USE OF INMATE LABOR.—Subject to subsection

23 (c), the Secretary of a military department may accept in

24 accordance with this section the services of nonviolent of25 fenders incarcerated in a correctional facility of a State
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1 or local government. Services so accepted shall be per2 formed at a military installation in the vicinity of the cor3 rectional facility pursuant to an agreement entered into

4 by the Secretary and the chief executive of the State or

5 local government.

6 ‘‘(b) AUTHORIZED SERVICES.—The services author7 ized to be accepted are as follows:

8 ‘‘(1) Construction, maintenance, or repair of

9 roads.

10 ‘‘(2) Construction of levees or other flood pre11 vention structures.

12 ‘‘(3) Construction, maintenance, or repair of

13 any other public ways or works.

14 ‘‘(4) Clearance, maintenance, or reforesting of

15 public lands.

16 ‘‘(5) Custodial services.

17 ‘‘(c) CONDITIONS FOR ACCEPTANCE OF SERVICES.—

18 The Secretary may accept the services of nonviolent of19 fenders for a military installation under this section only

20 if the Secretary finds that—

21 ‘‘(1) Federal Government employees and con22 tractor employees performing services at the installa23 tion will not be displaced;

24 ‘‘(2) no contract for the provision of services at

25 the installation will otherwise be impaired; and
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1 ‘‘(3) in the case of services in any skill, craft,

2 or trade, there is no surplus of labor for hire in such

3 skill, craft, or trade in the vicinity of the installa4 tion.

5 ‘‘(d) LIMITATION ON PAYMENTS TO CUSTODIAL GOV6 ERNMENTS.—(1) Except as provided in paragraph (2), the

7 Secretary of a military department may not compensate

8 a State or local government for the costs incurred by such

9 government in the provision of services accepted under

10 this section.

11 ‘‘(2) The Secretary may—

12 ‘‘(A) reimburse a State or local government for

13 administrative and other costs directly incurred by

14 that government in making available and supervising

15 offenders as they provide services accepted under

16 this section; and

17 ‘‘(B) pay a nominal amount to the State or

18 local government in order to support any alcohol and

19 drug abuse treatment programs conducted by that

20 government for the offenders who provide such serv21 ices.

22 ‘‘(e) PROHIBITION ON COMPENSATION OF IN23 MATES.—The Secretary may not compensate any offender

24 for services accepted under this section.
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1 ‘‘(f) SUPPORT AUTHORIZED.—The Secretary may

2 provide equipment, supplies, or other materials to be used

3 by offenders in the provision of services accepted under

4 this section.

5 ‘‘(g) INAPPLICABILITY OF OTHER LAWS.—The fol6 lowing provisions of law shall not apply with respect to

7 services accepted under this section:

8 ‘‘(1) Section 1342 of title 31.

9 ‘‘(2) The Fair Labor Standards Act of 1938

10 (29 U.S.C. 201 et seq.).

11 ‘‘(3) The Act entitled ‘An Act relating to the

12 rate of wages for laborers and mechanics employed

13 on public buildings of the United States and the

14 District of Columbia by contractors and subcontrac15 tors, and for other purposes’, approved March 3,

16 1931 (46 Stat. 1494; 40 U.S.C. 276a et seq.), com17 monly referred to as the ‘Davis-Bacon Act’.

18 ‘‘(4) The Act entitled ‘An Act to provide condi19 tions for the purchases of supplies and the making

20 of contracts by the United States, and for other pur21 poses’, approved June 30, 1936 (49 Stat. 2036; 41

22 U.S.C. 35 et seq.), commonly referred to as the

23 ‘Walsh-Healey Act’.

24 ‘‘(5) The Service Contract Act of 1965 (41

25 U.S.C. 351 et seq.).’’.
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of such chapter is amended by adding

3 at the end the following:

‘‘2610. Acceptance of services of inmates of State and local correctional facilities.’’.

4 SEC. 1052. REVISION OF AUTHORITY FOR USE OF NAVY IN5 STALLATIONS TO PROVIDE EMPLOYMENT

6 TRAINING TO NONVIOLENT OFFENDERS IN

7 STATE PENAL SYSTEMS.

8 (a) SOURCES OF TRAINING.—Subsection (b) of sec9 tion 1374 of the National Defense Authorization Act for

10 Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1821;

11 10 U.S.C. 5013 note) is amended—

12 (1) by striking out the subsection caption and

13 inserting in lieu thereof ‘‘SOURCES OF TRAIN14 ING.—’’; and

15 (2) by inserting before the period at the end the

16 following: ‘‘or may provide such training directly at

17 such installations by agreement with the State con18 cerned’’.

19 (b) LIABILITY AND INDEMNIFICATION.—Subsection

20 (e) of such section is amended—

21 (1) by inserting ‘‘(1)’’ before ‘‘A nonprofit orga22 nization’’; and

23 (2) by adding at the end the following:
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1 ‘‘(2) In any case in which the Secretary provides

2 prerelease employment training directly by agreement with

3 the State concerned, the State shall—

4 ‘‘(A) be liable for any loss or damage to Federal

5 Government property that may result from, or in

6 connection with, the provision of the training except

7 to the extent that the loss or damage results from

8 a wrongful act or omission of Federal Government

9 personnel; and

10 ‘‘(B) hold harmless and indemnify the United

11 States from and against any suit, claim, demand, ac12 tion, or liability arising out of any claim for personal

13 injury or property damage that may result from, or

14 in connection with, the provision of the training ex15 cept to the extent that the personal injury or prop16 erty damage results from a wrongful act or omission

17 of Federal Government personnel.’’.

18 SEC. 1053. USE OF ARMY INSTALLATIONS TO PROVIDE EM19 PLOYMENT TRAINING TO NONVIOLENT OF20 FENDERS IN STATE PENAL SYSTEMS.

21 (a) DEMONSTRATION PROJECT AUTHORIZED.—The

22 Secretary of the Army may conduct a demonstration

23 project to test the feasibility of using Army facilities to

24 provide employment training to nonviolent offenders in a

25 State penal system prior to their release from incarcer-
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1 ation. The demonstration project shall be limited to not

2 more than three military installations under the jurisdic3 tion of the Secretary.

4 (b) SOURCES OF TRAINING.—The Secretary may

5 enter into a cooperative agreement with one or more pri6 vate, nonprofit organizations for purposes of providing at

7 the military installations included in the demonstration

8 project the prerelease employment training authorized

9 under subsection (a) or may provide such training directly

10 at such installations by agreement with the State con11 cerned.

12 (c) USE OF FACILITIES.—Under a cooperative agree13 ment entered into under subsection (b), the Secretary may

14 lease or otherwise make available to a nonprofit organiza15 tion participating in the demonstration project at a mili16 tary installation included in the demonstration project any

17 real property or facilities at the installation that the Sec18 retary considers to be appropriate for use to provide the

19 prerelease employment training authorized under sub20 section (a). Notwithstanding section 2667(b)(4) of title

21 10, United States Code, the use of such real property or

22 facilities may be permitted with or without reimburse23 ment.

24 (d) ACCEPTANCE OF SERVICES.—Notwithstanding

25 section 1342 of title 31, United States Code, the Secretary
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1 may accept voluntary services provided by persons partici2 pating in the prerelease employment training authorized

3 under subsection (a).

4 (e) LIABILITY AND INDEMNIFICATION.—(1) A non5 profit organization participating in the demonstration

6 project shall—

7 (A) be liable for any loss or damage to Federal

8 Government property that may result from, or in

9 connection with, the provision of prerelease employ10 ment training by the organization under the dem11 onstration project; and

12 (B) hold harmless and indemnify the United

13 States from and against any suit, claim, demand, ac14 tion, or liability arising out of any claim for personal

15 injury or property damage that may result from or

16 in connection with the demonstration project.

17 (2) In any case in which the Secretary provides

18 prerelease employment training directly by agreement with

19 the State concerned, the State shall—

20 (A) be liable for any loss or damage to Federal

21 Government property that may result from, or in

22 connection with, the provision of the training except

23 to the extent that the loss or damage results from

24 a wrongful act or omission of Federal Government

25 personnel; and
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1 (B) hold harmless and indemnify the United

2 States from and against any suit, claim, demand, ac3 tion, or liability arising out of any claim for personal

4 injury or property damage that may result from, or

5 in connection with, the provision of the training ex6 cept to the extent that the personal injury or prop7 erty damage results from a wrongful act or omission

8 of Federal Government personnel.

9 (f) REPORT.—Not later than two years after the date

10 of the enactment of this Act, the Secretary shall submit

11 to Congress a report evaluating the success of the dem12 onstration project and containing such recommendations

13 with regard to the termination, continuation, or expansion

14 of the demonstration project as the Secretary considers

15 appropriate.

16 Subtitle G—Other Matters

17 SEC. 1061. REDESIGNATION OF UNITED STATES COURT OF

18 MILITARY APPEALS AND THE COURTS OF

19 MILITARY REVIEW.

20 (a) UNITED STATES COURT OF APPEALS FOR THE

21 ARMED SERVICES.—Section 941 of title 10, United States

22 Code (article 141 of the Uniform Code of Military Jus23 tice), is amended by striking out ‘‘United States Court of

24 Military Appeals’’ and inserting in lieu thereof ‘‘United

25 States Court of Appeals for the Armed Services’’.
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1 (b) COURTS OF MILITARY CRIMINAL APPEALS.—Sec2 tion 866 of title 10, United States Code (article 66 of the

3 Uniform Code of Military Justice), is amended by striking

4 out ‘‘Court of Military Review’’ each place it appears and

5 inserting in lieu thereof ‘‘Court of Military Criminal Ap6 peals’’.

7 (c) CONFORMING AMENDMENTS TO TITLE 10.—(1)

8 The following sections of title 10, United States Code, are

9 amended by striking out ‘‘Court of Military Appeals’’ each

10 place it appears and inserting in lieu thereof ‘‘Court of

11 Appeals for the Armed Services’’: sections 707(a)(2),

12 866(e), 867, 867a(a), 870, 871(c)(1), 873, 942, 943, 944,

13 945, and 946(b)(1).

14 (2) The following sections of title 10, United States

15 Code, are amended by striking out ‘‘Court of Military Re16 view’’ each place it appears and inserting in lieu thereof

17 ‘‘Court of Military Criminal Appeals’’: sections 707(a)(2),

18 862(b), 867, 868, 869, 870, 871, and 873.

19 (3)(A) The heading of subchapter XII of chapter 47

20 of such title is amended to read as follows:

21 ‘‘SUBCHAPTER XII—UNITED STATES COURT OF

22 APPEALS FOR THE ARMED SERVICES’’.

23 (B) The table of subchapters at the beginning of

24 chapter 47 of such title is amended by striking out the
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1 item relating to subchapter XII and inserting in lieu there2 of the following:

‘‘XII. United States Court of Appeals for the Armed Services ....... 941 141’’.

3 (4)(A) The heading of section 866 of such title is

4 amended to read as follows:

5 ‘‘§ 867. Art. 66. Review by Court of Military Criminal

6 Appeals’’.

7 (B) The heading of section 867 of such title is

8 amended to read as follows:

9 ‘‘§ 867. Art. 67. Review by the Court of Appeals for the

10 Armed Services’’.

11 (C) The table of sections at the beginning of sub12 chapter IX of chapter 47 of such title is amended by strik13 ing out the items relating to sections 866 and 867 (articles

14 66 and 67) and inserting in lieu thereof the following:

‘‘866. 66. Review by Court of Military Criminal Appeals.

‘‘867. 67. Review by the Court of Appeals for the Armed Services.’’.

15 (d) CONFORMING AMENDMENTS TO OTHER UNITED

16 STATES CODE TITLES.—(1) The following provisions of

17 the United States Code are amended by striking out

18 ‘‘Court of Military Appeals’’ each place it appears and in19 serting in lieu thereof ‘‘Court of Appeals for the Armed

20 Services’’:

21 (A) In title 5, sections 8334(a)(1), 8336(l),

22 8337(a), 8338(c), 8339(d)(7), and 8339(h) and the

23 table in 8334(c).
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1 (B) In title 18, sections 202(e)(2) and 6001(4).

2 (C) In title 28, sections 1259 and 2101(g).

3 (D) In title 44, section 906.

4 (2)(A) The heading of section 1259 of title 28,

5 United States Code, is amended to read as follows:

6 ‘‘§ 1259. Court of Appeals for the Armed Services; cer7 tiorari’’.

8 (B) The table of sections at the beginning of chapter

9 81 of such title is amended by striking out the item relat10 ing to section 1259 and inserting in lieu thereof the follow11 ing:

‘‘1259. Court of Appeals for the Armed Services; certiorari.’’.

12 (e) CONFORMING AMENDMENT TO OTHER LAW.—

13 Section 109 of the Ethics in Government Act of 1978 (5

14 U.S.C. App.) is amended by striking out ‘‘Court of Mili15 tary Appeals’’ each place it appears in paragraphs (8) and

16 (10) and inserting in lieu thereof ‘‘Court of Appeals for

17 the Armed Services’’.

18 SEC. 1062. ASSISTANCE TO FAMILY MEMBERS OF CERTAIN

19 POW/MIAS WHO REMAIN UNACCOUNTED FOR.

20 (a) SINGLE POINT OF CONTACT.—The Secretary of

21 Defense shall designate an official of the Department of

22 Defense to serve as a single point of contact within the

23 department—
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1 (1) for the immediate family members (or their

2 designees) of any unaccounted-for Korean conflict

3 POW/MIA; and

4 (2) for the immediate family members (or their

5 designees) of any unaccounted-for Cold War POW/

6 MIA.

7 (b) FUNCTIONS.—The official designated under sub8 section (a) shall serve as a liaison between the family

9 members of unaccounted-for Korean conflict POW/MIAs

10 and unaccounted-for Cold War POW/MIAs and the De11 partment of Defense and other Federal departments and

12 agencies that may hold information that may related to

13 such POW/MIAs. The functions of that official shall in14 clude assisting family members—

15 (1) with the procedures the family may follow

16 in their search for information about the unac17 counted-for Korean conflict POW/MIA or unac18 counted-for Cold War POW/MIA, as the case may

19 be;

20 (2) in learning where they may locate informa21 tion about the unaccounted-for POW/MIA; and

22 (3) in learning how and where to identify classi23 fied records that contain pertinent information and

24 that will be declassified.
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1 (c) ASSISTANCE IN OBTAINING DECLASSIFICA2 TION.—The official designated under subsection (a) shall

3 seek to obtain the rapid declassification of any relevant

4 classified records that are identified.

5 (d) REPOSITORY.—The official designated under sub6 section (a) shall provide for a centralized repository for

7 all documents relating to unaccounted-for Korean conflict

8 POW/MIAs and unaccounted-for Cold War POW/MIAs

9 that are located as a result of the official’s efforts.

10 (e) DEFINITIONS.—For purposes of this section:

11 (1) The term ‘‘unaccounted-for Korean conflict

12 POW/MIA’’ means a member of the Armed Forces

13 or civilian employee of the United States who, as a

14 result of service during the Korean conflict, was at

15 any time classified as a prisoner of war or missing16 in-action or otherwise unaccounted for and whose

17 person or remains have not been returned to the

18 United States and who remains unaccounted for.

19 (2) The term ‘‘unaccounted-for Cold War POW/

20 MIA’’ means a member of the Armed Forces or ci21 vilian employee of the United States who, as a result

22 of service during the period from September 2,

23 1945, to August 21, 1991, was at any time classified

24 as a prisoner of war or missing-in-action or other25 wise unaccounted for and whose person or remains
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1 have not been returned to the United States and

2 who remains unaccounted for.

3 (3) The term ‘‘Korean conflict’’ has the mean4 ing given such term in section 101(9) of title 38,

5 United States Code.

6 SEC. 1063. NATIONAL GUARD ASSISTANCE FOR CERTAIN

7 YOUTH AND CHARITABLE ORGANIZATIONS.

8 (a) AUTHORITY TO PROVIDE ASSISTANCE.—Chapter

9 5 of title 32, United States Code, is amended by adding

10 at the end the following:

11 ‘‘§ 508. Assistance for certain youth and charitable or12 ganizations

13 ‘‘(a) AUTHORITY TO PROVIDE SERVICES.—Members

14 and units of the National Guard may provide the services

15 described in subsection (b) to an eligible organization in

16 conjunction with training required under this chapter in

17 any case in which—

18 ‘‘(1) the provision of such services does not ad19 versely affect the quality of that training or other20 wise interfere with the ability of a member or unit

21 of the National Guard to perform the military func22 tions of the member or unit;

23 ‘‘(2) the services to be provided are not com24 mercially available, or any commercial entity that

25 would otherwise provide such services has approved,
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1 in writing, the provision of such services by the Na2 tional Guard;

3 ‘‘(3) National Guard personnel will enhance

4 their military skills as a result of providing such

5 services; and

6 ‘‘(4) the provision of the services will not result

7 in a significant increase in the cost of the training.

8 ‘‘(b) AUTHORIZED SERVICES.—The services author9 ized to be provided under subsection (a) are as follows:

10 ‘‘(1) Ground transportation.

11 ‘‘(2) Air transportation in support of Special

12 Olympics.

13 ‘‘(3) Administrative support services.

14 ‘‘(4) Technical training services.

15 ‘‘(5) Emergency medical assistance and serv16 ices.

17 ‘‘(6) Communications services.

18 ‘‘(7) Security services.

19 ‘‘(c) OTHER AUTHORIZED ASSISTANCE.—Facilities

20 and equipment of the National Guard, including military

21 property of the United States issued to the National

22 Guard and General Services Administration vehicles

23 leased to the National Guard, and General Services Ad24 ministration vehicles leased to the Department of Defense,
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1 may be used in connection with providing services to any

2 eligible organization under this section.

3 ‘‘(d) ELIGIBLE ORGANIZATIONS.—The organizations

4 eligible to receive services under this section are as follows:

5 ‘‘(1) The Boy Scouts of America.

6 ‘‘(2) The Girl Scouts of America.

7 ‘‘(3) The Boys Clubs of America.

8 ‘‘(4) The Girls Clubs of America.

9 ‘‘(5) The Young Men’s Christian Association.

10 ‘‘(6) The Young Women’s Christian Associa11 tion.

12 ‘‘(7) The Civil Air Patrol.

13 ‘‘(8) The United States Olympic Committee.

14 ‘‘(9) The Special Olympics.

15 ‘‘(10) The Campfire Boys.

16 ‘‘(11) The Campfire Girls.

17 ‘‘(12) The 4–H Club.

18 ‘‘(13) The Police Athletic League.

19 ‘‘(14) Any other youth or charitable organiza20 tion designated by the Secretary of Defense.’’.

21 (b) CLERICAL AMENDMENT.—The table of sections

22 at the beginning of such chapter is amended by adding

23 at the end the following:

‘‘508. Assistance for certain youth and charitable organizations.’’.
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1 SEC. 1064. DEFENSE MAPPING AGENCY.

2 (a) UNAUTHORIZED USE OF NAME.—Chapter 167 of

3 title 10, United States Code, is amended by adding at the

4 end the following new section:

5 ‘‘§ 2798. Unauthorized use of Defense Mapping Agen6 cy name, initials, or seal

7 ‘‘(a) No person may, except with the written permis8 sion of the Secretary of Defense, knowingly use the words

9 ‘Defense Mapping Agency’, the initials ‘DMA’, the seal of

10 the Defense Mapping Agency, or any colorable imitation

11 of such words, initials, or seal in connection with any mer12 chandise, retail product, impersonation, solicitation or

13 commercial activity in a manner reasonably calculated to

14 convey the impression that such use is approved, endorsed,

15 or authorized by the Secretary of Defense.

16 ‘‘(b) Whenever it appears to the Attorney General

17 that any person is engaged or about to engage in an act

18 or practice which constitutes or will constitute conduct

19 prohibited by subsection (a), the Attorney General may

20 initiate a civil proceeding in a district court of the United

21 States to enjoin such act or practice. Such court shall pro22 ceed as soon as practicable to hearing and determination

23 of such action and may, at any time before such final de24 termination, enter such restraining orders or prohibitions,

25 or take such other action as is warranted, to prevent in-
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1 jury to the United States or to any person or class of per2 sons for whose protection the action is brought.’’.

3 (b) LIMITATION ON LIABILITY RELATING TO NAVI4 GATIONAL AIDS.—Chapter 167 of such title, as amended

5 by subsection (a), is further amended by adding at the

6 end the following new section:

7 ‘‘§ 2799. Civil actions barred

8 ‘‘(a) CLAIMS BARRED.—No civil action may be

9 brought against the United States on the basis of the con10 tent of a navigational aid prepared or disseminated by the

11 Defense Mapping Agency.

12 ‘‘(b) NAVIGATIONAL AIDS COVERED.—Subsection (a)

13 applies with respect to a navigational aid in the form of

14 a map, a chart, or a publication and any other form or

15 medium of product or information in which the Defense

16 Mapping Agency prepares or disseminates navigational

17 aids.’’.

18 (c) CLERICAL AMENDMENT.—The table of sections

19 at the beginning of such chapter is amended by adding

20 at the end the following new item:

‘‘2798. Unauthorized use of Defense Mapping Agency name, initials, or seal.

‘‘2799. Civil actions barred.’’.

21 (d) EFFECTIVE DATE.—Section 2799 of title 10,

22 United States Code, as added by subsection (b), shall take

23 effect on the date of the enactment of this Act and shall

24 apply with respect to (1) civil actions brought before such
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1 date that are pending adjudication on such date, and (2)

2 civil actions brought on or after such date.

3 SEC. 1065. TRANSFER OF NAVAL VESSELS TO BRAZIL.

4 (a) AUTHORITY.—The Secretary of the Navy is au5 thorized to transfer to the Government of Brazil the

6 ‘‘KNOX’’ class frigates, MILLER (FF 1091) and

7 VALDEZ (FF 1096). Such transfers shall be on a lease

8 basis under chapter 6 of the Arms Export Control Act

9 (22 U.S.C. 2796 et seq.).

10 (b) WAIVER OF REQUIREMENTS FOR NOTIFICATION

11 TO CONGRESS.—Section 62 of the Arms Export Control

12 Act does not apply with respect to a lease authorized by

13 subsection (a), except that section 62 of such Act shall

14 apply to any renewal of the lease.

15 (c) COSTS OF TRANSFERS.—Any expense of the

16 United States in connection with a transfer authorized by

17 subsection (a) shall be charged to the Government of

18 Brazil.

19 (d) EXPIRATION OF AUTHORITY.—The authority

20 granted by subsection (a) shall expire at the end of the

21 2-year period beginning on the date of the enactment of

22 this Act, except that leases entered into during that period

23 may be renewed.
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1 SEC. 1066. TRANSFERS OF M1A1 TANKS TO THE MARINE

2 CORPS.

3 (a) TRANSFER REQUIRED.—Subject to subsection

4 (b), as M1A1 tanks of the Army become excess to the re5 quirements of the active component of the Army, the Sec6 retary of the Army shall transfer to the Marine Corps as

7 many of such tanks as are necessary to satisfy the require8 ments of the Marine Corps for tanks, as determined by

9 the Secretary of Defense.

10 (b) TRANSFER LIMITS.—The Secretary shall transfer

11 under subsection (a) not less than 84 M1A1 common

12 tanks and not more than 124 such tanks.

13 (c) EXCLUSION OF CERTAIN TRANSFERS.—If any of

14 the tanks transferred under subsection (a) are transferred

15 to the Marine Corps Reserve, the number of tanks not

16 in excess of 48 that are so transferred shall not be counted

17 for purposes of subsection (b).

18 (d) LIMITATION ON TRANSFERS TO ARMY NATIONAL

19 GUARD.—After the date of the enactment of this Act, the

20 Secretary of the Army may not transfer any additional

21 M1A1 tanks to the Army National Guard until the re22 quirements of the Marine Corps referred to in subsection

23 (a) are satisfied within the limits provided in subsection

24 (b).

25 (e) TREATMENT OF CERTAIN TRANSFERRED TANKS

26 UNDER LIMITATIONS.—The transfer of a tank under sec-
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1 tion 112 shall not be counted for purposes of subsection

2 (a), (b), (c), or (d).

3 SEC. 1067. LIMITATION REGARDING MERGER OF TELE4 COMMUNICATIONS SYSTEMS.

5 (a) LIMITATION.—Funds available to the Depart6 ment of Defense may not be expended to merge defense

7 telecommunications systems with the telecommunications

8 system known as ‘‘FTS–2000’’ or with any other civil tele9 communications system until—

10 (1) the Secretary of Defense submits to the

11 congressional defense committees a report contain12 ing—

13 (A) a certification by the Secretary that

14 the merged telecommunications systems, includ15 ing the associated services, will provide assured,

16 secure telecommunications support for Depart17 ment of Defense activities; and

18 (B) a description of how the merger of the

19 systems will be implemented and the merged

20 systems will be managed to meet defense infor21 mation infrastructure requirements, including

22 requirements to support deployed forces and in23 telligence activities; and

24 (2) 30 days elapse after the date on which such

25 report is received by the committees.
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1 (b) DEFENSE TELECOMMUNICATIONS ACTIVITY DE2 FINED.—In this section, the term ‘‘defense telecommuni3 cations system’’ means a system of telecommunications

4 equipment and services that, pursuant to section 2315 of

5 title 10, United States Code, is exempt from the require6 ments of section 111 of the Federal Property and Admin7 istrative Services Act of 1949.

8 DIVISION B—MILITARY CON9 STRUCTION AUTHORIZA10 TIONS

11 SEC. 2001. SHORT TITLE.

12 This division may be cited as the ‘‘Military Construc13 tion Authorization Act for Fiscal Year 1995’’.

14 TITLE XXI—ARMY

15 SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND

16 ACQUISITION PROJECTS.

17 (a) INSIDE THE UNITED STATES.—Using amounts

18 appropriated pursuant to the authorization of appropria19 tions in section 2104(a)(1), the Secretary of the Army

20 may acquire real property and carry out military construc21 tion projects in the total amount of $393,550,000 for the

22 installations and locations inside the United States, and

23 in the amounts for such installations and locations, set

24 forth in the following table:
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Army: Inside the United States

State Installation or location Amount

Alabama .................. Redstone Arsenal ......................... $2,600,000

Georgia ................... Fort Benning ............................... $6,550,000

Fort Gordon ................................. $44,750,000

Hawaii ..................... Schofield Barracks ....................... $25,000,000

Kentucky ................. Fort Campbell .............................. $67,400,000

Fort Knox .................................... $5,300,000

Maryland ................. Adelphi Laboratory Center .......... $6,600,000

Fort Ritchie .................................. $3,600,000

New Jersey ............. Bayonne Military Ocean Terminal $4,050,000

New York ................ United States Military Academy,

West Point .................................. $28,000,000

North Carolina ........ Fort Bragg ................................... $29,000,000

Sunny Point Military Ocean Terminal ........................................... $22,200,000

Oklahoma ................ Fort Sill ........................................ $18,000,000

South Carolina ........ Charleston Naval Weapons Station.$24,000,000

Texas ...................... Fort Hood .................................... $29,000,000

Fort Sam Houston ....................... $4,300,000

Virginia ................... Fort Myer ..................................... $7,300,000

Washington ............. Fort Lewis .................................... $64,000,000

CONUS Classified .. Classified Location ....................... $1,900,000

1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2104(a)(2), the Secretary of the Army

4 may acquire real property and carry out military construc5 tion projects in the total amount of $31,400,000 for the

6 installation and location outside the United States, and

7 in the amount, set forth in the following table:

Army: Outside the United States

Country or other Installation or location Amount

Kwajalein Atoll ........... Kwajalein ................................... $6,400,000

Worldwide ................... Host Nation Support ................ $25,000,000
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1 SEC. 2102. FAMILY HOUSING.

2 (a) CONSTRUCTION AND ACQUISITION.—Using

3 amounts appropriated pursuant to the authorization of ap4 propriations in section 2104(a)(5)(A), the Secretary of the

5 Army may construct or acquire family housing units (in6 cluding land acquisition) in the total amount of

7 $117,750,000 at the installations, for the purposes, and

8 in the amounts for such installations set forth in the fol9 lowing table:

Army: Family Housing

State Installation Purpose Amount

Alaska ............. Fort Richardson .. 72 units ........... $5,000,000

Colorado .......... Fort Carson ........ 145 units ......... $16,500,000

Georgia ............ Fort Stewart ........ 128 units ......... $10,600,000

Hawaii ............. Helemano Military Reservation Roadway improvements

for family

housing.

$3,500,000

Schofield Barracks ................ 190 units ......... $26,000,000

Kansas ............. Fort Riley ........... 126 units ......... $12,600,000

Massachusetts . Natick Research

Center .............. 35 units ........... $4,150,000

New York ........ United States

Military Academy, West Point.

56 units ........... $8,000,000

Texas ............... Fort Bliss ............ 215 units ......... $21,400,000

Fort Sam Houston .................... 100 units ......... $10,000,000

10 (b) PLANNING AND DESIGN.—Using amounts appro11 priated pursuant to the authorization of appropriations in

12 section 2104(a)(5)(A), the Secretary of the Army may

13 carry out architectural and engineering services and con14 struction design activities with respect to the construction
259

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1 or improvement of family housing units in an amount not

2 to exceed $5,992,000.

3 SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING

4 UNITS.

5 Subject to section 2825 of title 10, United States

6 Code, and using amounts appropriated pursuant to the

7 authorization of appropriations in section 2104(a)(5)(A),

8 the Secretary of the Army may improve existing military

9 family housing in an amount not to exceed $49,760,000.

10 SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

11 (a) IN GENERAL.—Funds are hereby authorized to

12 be appropriated for fiscal years beginning after September

13 30, 1994, for military construction, land acquisition, and

14 military family housing functions of the Department of the

15 Army in the total amount of $1,668,086,000 as follows:

16 (1) For military construction projects inside the

17 United States authorized by section 2101(a),

18 $393,550,000.

19 (2) For military construction projects outside

20 the United States authorized by section 2101(b),

21 $31,400,000.

22 (3) For unspecified minor military construction

23 projects authorized by section 2805 of title 10,

24 United States Code, $12,000,000.
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1 (4) For architectural and engineering services

2 and construction design under section 2807 of title

3 10, United States Code, $63,926,000.

4 (5) For military family housing functions:

5 (A) For construction and acquisition of

6 military family housing and facilities,

7 $173,502,000.

8 (B) For support of military family housing

9 (including the functions described in section

10 2833 of title 10, United States Code),

11 $1,007,708,000, of which not more than

12 $243,442,000 may be obligated or expended for

13 the leasing of military family housing world14 wide.

15 (b) LIMITATION ON TOTAL COST OF CONSTRUCTION

16 PROJECTS.—Notwithstanding the cost variations author17 ized by section 2853 of title 10, United States Code, and

18 any other cost variation authorized by law, the total cost

19 of all projects carried out under section 2101 of this Act

20 may not exceed the total amount authorized to be appro21 priated under paragraphs (1) and (2) of subsection (a).
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1 SEC. 2105. RELOCATION OF ARMY FAMILY HOUSING UNITS

2 FROM FORT HUNTER LIGGETT, CALIFORNIA,

3 TO FORT STEWART, GEORGIA.

4 Section 2102(a) of the Military Construction Author5 ization Act for Fiscal Year 1992 (division B of Public Law

6 102–190; 105 Stat. 1511) is amended—

7 (1) by striking out paragraph (1) and inserting

8 in lieu thereof the following new paragraph (1):

9 ‘‘(1) Fort Hunter Liggett, California, one hun10 dred fifty-four units, $12,300,000.’’; and

11 (2) by striking out paragraph (5) and inserting

12 in lieu thereof the following new paragraph (5):

13 ‘‘(5) Fort Stewart, Georgia, one hundred twen14 ty-one units, $9,890,000.’’.

15 TITLE XXII—NAVY

16 SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND

17 ACQUISITION PROJECTS.

18 (a) INSIDE THE UNITED STATES.—Using amounts

19 appropriated pursuant to the authorization of appropria20 tions in section 2204(a)(1), the Secretary of the Navy may

21 acquire real property and carry out military construction

22 projects in the total amount of $224,180,000 for the in23 stallations and locations inside the United States, and in

24 the amounts for such installations and locations, set forth

25 in the following table:
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Navy: Inside the United States

State Installation or location Amount

California ................ Camp Pendleton Amphibious Task

Force .................................................. $10,700,000

Camp Pendleton Marine Corp Base .... $570,000

China Lake Naval Air Warfare Center $6,000,000

El Centro Naval Air Facility ............... $3,000,000

Lemoore Naval Air Station ................. $7,000,000

North Island Naval Air Station ........... $18,830,000

Port Hueneme Naval Construction

Battalion Center ................................ $9,650,000

San Diego Marine Corps Recruit

Depot .................................................. $1,090,000

San Diego Naval Station ..................... $4,100,000

Twentynine Palms Marine Corps AirGround Combat Center ...................... $2,900,000

Florida .................... Jacksonville Fleet and Industrial Supply Center ........................................... $2,200,000

Pensacola Naval Air Station ................ $2,100,000

Hawaii ..................... Kaneohe Bay ........................................ $4,900,000

Illinois ..................... Great Lakes Navy Public Works Center ....................................................... $13,000,000

New Jersey ............. Lakehurst Naval Air Warfare Center .. $2,950,000

New Mexico ............. White Sands Naval Ordnance Missile

Test Station ....................................... $1,390,000

North Carolina ........ Cherry Point Marine Corps Air Station ..................................................... $2,100,000

Camp Lejeune Marine Corp Base ....... $14,850,000

Rhode Island ........... Newport Naval Education and Training Center .......................................... $14,500,000

South Carolina ........ Parris Island Marine Corps Recruit

Depot .................................................. $2,550,000

Texas ...................... Ingleside Naval Station ....................... $14,110,000

Virginia ................... Chesapeake Naval Security Group Activity ................................................... $1,150,000

Dam Neck Fleet Combat Training

Center ................................................. $1,600,000

Norfolk Marine Corps Security Force

Battalion Atlantic .............................. $6,480,000

Norfolk Naval Station ......................... $16,430,000

Quantico Marine Corps Combat Development Command .............................. $19,900,000

Washington ............. Bremerton Puget Sound Naval Shipyard .................................................... $11,040,000

Everett Naval Station .......................... $21,690,000

Whidbey Island Naval Air Station ...... $5,200,000

Various Locations ... Aircraft Fire Rescue and Vehicle

Maintenance Facilities ....................... $2,200,000

1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2204(a)(2), the Secretary of the Navy may
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1 acquire real property and carry out military construction

2 projects in the total amount of $50,810,000 for the instal3 lations and locations outside the United States, and in the

4 amounts for such installations and locations, set forth in

5 the following table:

Navy: Outside the United States

Country Installation or location Amount

Greece ...................... Souda Bay, Crete Naval Support

Activity ....................................... $3,050,000

Italy .......................... Naples Naval Support Activity .... $28,460,000

Sigonella Naval Air Station ......... $13,750,000

Puerto Rico .............. Sabana Seca Naval Security

Group Activity ............................ $1,650,000

United Kingdom ...... Saint Mawgan Joint Maritime

Communications Center ............. $3,900,000

6 SEC. 2202. FAMILY HOUSING.

7 (a) CONSTRUCTION AND ACQUISITION.—Using

8 amounts appropriated pursuant to the authorization of ap9 propriations in section 2204(a)(5)(A), the Secretary of the

10 Navy may construct or acquire family housing units (in11 cluding land acquisition) in the total amount of

12 $49,012,000 at the installations, for the purposes, and in

13 the amounts for such installations and purposes set forth

14 in the following table:

Navy: Family Housing

State Installation Purpose Amount

California ......... Camp Pendleton

Marine Corps

Base ................. 196 units .......... $28,552,000

San Diego Naval

Public Works

Center .............. 136 units .......... $18,262,000
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Navy: Family Housing—Continued

State Installation Purpose Amount

Maryland .......... Patuxent River

Naval Air Station ................... Housing Office . $863,000

Virginia ............ Norfolk Naval

Public Works

Center .............. Warehouse/Self

Help Center. $555,000

Washington ...... Everett Naval Station ................... Housing Office . $780,000

1 (b) PLANNING AND DESIGN.—Using amounts appro2 priated pursuant to the authorization of appropriations in

3 section 2204(a)(5)(A), the Secretary of the Navy may

4 carry out architectural and engineering services and con5 struction design activities with respect to the construction

6 or improvement of military family housing units in an

7 amount not to exceed $24,681,000.

8 SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING

9 UNITS.

10 Subject to section 2825 of title 10, United States

11 Code, and using amounts appropriated pursuant to the

12 authorization of appropriations in section 2204(a)(5)(A),

13 the Secretary of the Navy may improve existing military

14 family housing units in the amount of $155,602,000.

15 SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

16 (a) IN GENERAL.—Funds are hereby authorized to

17 be appropriated for fiscal years beginning after September

18 30, 1994, for military construction, land acquisition, and
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1 military family housing functions of the Department of the

2 Navy in the total amount of $1,492,264,000 as follows:

3 (1) For military construction projects inside the

4 United States authorized by section 2201(a),

5 $224,180,000.

6 (2) For military construction projects outside

7 the United States authorized by section 2201(b),

8 $50,810,000.

9 (3) For unspecified minor construction projects

10 authorized by section 2805 of title 10, United States

11 Code, $7,000,000.

12 (4) For architectural and engineering services

13 and construction design under section 2807 of title

14 10, United States Code, $43,380,000.

15 (5) For military family housing functions:

16 (A) For construction and acquisition of

17 military family housing and facilities,

18 $229,295,000.

19 (B) For support of military family housing

20 (including functions described in section 2833

21 of title 10, United States Code), $937,599,000,

22 of which not more than $114,336,000 may be

23 obligated or expended for the leasing of military

24 family housing units worldwide.
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1 (b) LIMITATION OF TOTAL COST OF CONSTRUCTION

2 PROJECTS.—Notwithstanding the cost variations author3 ized by section 2853 of title 10, United States Code, and

4 any other cost variation authorized by law, the total cost

5 of all projects carried out under section 2201 of this Act

6 may not exceed the total amount authorized to be appro7 priated under paragraphs (1) and (2) of subsection (a).

8 SEC. 2205. AUTHORITY TO CARRY OUT CONSTRUCTION

9 PROJECT, NAVAL SUPPLY CENTER, PENSA10 COLA, FLORIDA.

11 Funds appropriated by the Military Construction Ap12 propriations Act, 1994 (Public Law 103–110; 107 Stat.

13 1037) that are available for construction of a cold storage

14 facility at Naval Supply Center, Pensacola, Florida, in ac15 cordance with authorizations provided in section 2201(a)

16 of the Military Construction Authorization Act for Fiscal

17 Year 1992 (division B of Public Law 102–190; 105 Stat.

18 1514), as enacted, may be expended for the portion of the

19 construction of such facility that is associated with De20 partment of the Navy contract N62467–86–C–0421.

21 SEC. 2206. RELOCATION OF PASCAGOULA COAST GUARD

22 STATION, MISSISSIPPI.

23 (a) AGREEMENT ON RELOCATION.—Not later than

24 90 days after the date of the enactment of this Act, the

25 Secretary of the Navy and the Secretary of Transportation
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1 shall enter into an agreement that provides for the reloca2 tion of the activities and functions of Pascagoula Coast

3 Guard Station to Pascagoula Naval Station, Pascagoula,

4 Mississippi.

5 (b) CONDITIONS.—The agreement under subsection

6 (a) shall include the following provisions:

7 (1) That the Navy not incur any construction

8 costs relating to the relocation.

9 (2) That the design, construction, and location

10 of Coast Guard facilities, and the conduct of activi11 ties by the Coast Guard, at Pascagoula Naval Sta12 tion not interfere with the performance of the mis13 sion of the Navy.

14 SEC. 2207. AUTHORITY TO CARRY OUT CONSTRUCTION DE15 SIGN FOR MAYPORT NAVAL STATION, FLOR16 IDA.

17 (a) AUTHORITY TO CARRY OUT CONSTRUCTION DE18 SIGN.—Subject to subsection (b), the Secretary of the

19 Navy may carry out construction design activities in con20 nection with the military construction projects that the

21 Secretary identifies as necessary for the improvement of

22 the facilities located at Mayport Naval Station, Florida,

23 so that such facilities may be used as the homeport of

24 a nuclear powered aircraft carrier.
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1 (b) REQUIREMENT RELATING TO COMMENCEMENT

2 OF DESIGN.—The Secretary may not carry out the con3 struction design activities authorized under subsection (a)

4 until the Secretary—

5 (1) completes a study that identifies the im6 provements to the facilities referred to in that sub7 section that are necessary so that such facilities may

8 be used as the homeport of a nuclear powered air9 craft carrier; and

10 (2) completes a programmatic environmental

11 impact study on the effect of such improvements on

12 the environment.

13 (c) CONSTRUCTION OF AUTHORITY.—This section

14 may not be construed or interpreted as an authorization

15 for the Secretary to commence or proceed with any mili16 tary construction project relating to the improvement of

17 the facilities of Mayport Naval Station, Florida, for the

18 purpose referred to in subsection (a).

19 TITLE XXIII—AIR FORCE

20 SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND

21 LAND ACQUISITION PROJECTS.

22 (a) INSIDE THE UNITED STATES.—Using amounts

23 appropriated pursuant to the authorization of appropria24 tions in section 2304(a)(1), the Secretary of the Air Force

25 may acquire real property and carry out military construc-
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1 tion projects in the total amount of $398,904,000 for the

2 installations and locations inside the United States, and

3 in the amounts for such installations and locations, set

4 forth in the following table:

Air Force: Inside the United States

State Installation or location Amount

Alabama ................... Maxwell Air Force Base ................. $9,600,000

Alaska ...................... Cape Lisburne Long Range Radar

Site.

$2,800,000

Eielson Air Force Base .................. $3,300,000

Arizona ..................... Luke Air Force Base ..................... $4,900,000

Arkansas .................. Little Rock Air Force Base ........... $4,800,000

California ................. Beale Air Force Base ..................... $1,450,000

Edwards Air Force Base ................ $7,050,000

Travis Air Force Base ................... $3,600,000

Vandenberg Air Force Base ........... $6,550,000

Colorado ................... Peterson Air Force Base ................ $1,750,000

Delaware .................. Dover Air Force Base .................... $10,500,000

Florida ..................... Cape Canaveral Air Force Station . $10,450,000

Georgia ..................... Moody Air Force Base ................... $14,300,000

Robins Air Force Base ................... $21,200,000

Idaho ........................ Mountain Home Air Force Base .... $15,950,000

Illinois ...................... Scott Air Force Base ..................... $2,700,000

Kansas ..................... McConnell Air Force Base ............. $500,000

Louisiana ................. Barksdale Air Force Base .............. $27,100,000

Maryland .................. Andrews Air Force Base ................ $10,800,000

Mississippi ................ Columbus Air Force Base .............. $3,400,000

Keesler Air Force Base .................. $11,240,000

Missouri ................... Whiteman Air Force Base ............. $24,290,000

Montana ................... Malmstrom Air Force Base ........... $7,200,000

Nebraska .................. Offutt Air Force Base .................... $2,260,000

Nevada ..................... Nellis Air Force Base ..................... $10,500,000

New Jersey .............. McGuire Air Force Base ................ $17,000,000

New Mexico .............. Holloman Air Force Base .............. $10,950,000

Kirtland Air Force Base ................ $31,000,000

North Carolina ......... Pope Air Force Base ...................... $2,600,000

North Dakota ........... Grand Forks Air Force Base ......... $5,200,000

Minot Air Force Base .................... $10,350,000

Ohio .......................... Wright-Patterson Air Force Base .. $32,700,000

Oklahoma ................. Altus Air Force Base ..................... $3,750,000

Tinker Air Force Base ................... $9,643,000

Vance Air Force Base .................... $11,680,000

South Carolina ......... Charleston Air Force Base ............ $11,400,000

South Dakota ........... Ellsworth Air Force Base .............. $1,450,000
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Air Force: Inside the United States—Continued

State Installation or location Amount

Tennessee ................. Arnold Air Force Base ................... $1,900,000

Texas ........................ Kelly Air Force Base ..................... $8,950,000

Lackland Air Force Base ............... $5,200,000

Sheppard Air Force Base .............. $3,300,000

Washington .............. Fairchild Air Force Base ............... $8,850,000

Wyoming .................. F.E. Warren Air Force Base ......... $2,650,000

CONUS Classified ... Classified Location ......................... $2,141,000

1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2304(a)(2), the Secretary of the Air Force

4 may acquire real property and may carry out military con5 struction projects in the total amount of $38,273,000 for

6 the installations and locations outside the United States,

7 and in the amounts for such installations and locations,

8 set forth in the following table:

Air Force: Outside the United States

Country Installation or location Amount

Germany ................... Ramstein Air Base ......................... $12,350,000

Spangdahlem Air Base ................... $9,473,000

Greenland ................. Thule Air Base ............................... $2,450,000

Portugal ................... Lajes Field ..................................... $2,850,000

United Kingdom ...... RAF Lakenheath ........................... $7,100,000

Overseas Classified .. Classified Location ......................... $4,050,000

9 SEC. 2302. FAMILY HOUSING.

10 (a) CONSTRUCTION AND ACQUISITION.—Using

11 amounts appropriated pursuant to the authorization of ap12 propriations in section 2304(a)(6)(A), the Secretary of the

13 Air Force may construct or acquire family housing units

14 (including land acquisition) in the total amount of
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1 $163,348,000 at the installations, for the purposes, and

2 in the amounts for such installations and purposes set

3 forth in the following table:

Air Force: Family Housing

State or Country Installation Purpose Amount

Alabama ........... Maxwell Air Force

Base ................. 25 units ............ $2,100,000

Arizona ............. Davis-Monthan

Air Force Base 60 units ............ $5,940,000

California ......... Beale Air Force

Base ................. 76 units ............ $8,842,000

Edwards Air

Force Base ....... 34 units ............ $4,629,000

Vandenberg Air

Force Base ....... 128 units .......... $16,460,000

District of Columbia.Bolling Air Force

Base ................. 100 units .......... $9,000,000

Florida ............. Patrick Air Force

Base ................. 75 units ............ $7,145,000

Idaho ................ Mountain Home

Air Force Base 4 unit ............... $881,000

Mountain Home

Air Force Base 60 units ............ $5,712,000

Kansas ............. McConnell Air

Force Base ....... 70 units ............ $8,322,000

Louisiana ......... Barksdale Air

Force Base ....... 82 units ............ $8,236,000

Missouri ........... Whiteman Air

Force Base ....... Housing Office . $567,000

New Mexico ...... Cannon Air Force

Base ................. 1 unit ............... $230,000

Holloman Air

Force Base ....... 76 units ............ $7,733,000

Kirtland Air Force

Base ................. 106 units .......... $10,058,000

North Carolina . Pope Air Force

Base ................. 120 units .......... $14,874,000

Seymour Johnson

Air Force Base 74 units ............ $6,025,000

North Dakota .. Grand Forks Air

Force Base ....... Housing Office . $709,000

South Carolina . Shaw Air Force

Base ................. 3 units .............. $631,000

Texas ............... Dyess Air Force

Base ................. 59 units ............ $7,077,000

Utah ................. Hill Air Force

Base ................. 138 units .......... $11,400,000

Virginia ............ Langley Air Force

Base ................. 148 units .......... $14,421,000
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Air Force: Family Housing—Continued

State or Country Installation Purpose Amount

Washington ...... Fairchild Air

Force Base ....... 6 units .............. $1,035,000

Wyoming .......... F.E. Warren Air

Force Base ....... 106 units .......... $11,321,000

1 (b) PLANNING AND DESIGN.—Using amounts appro2 priated pursuant to the authorization of appropriations in

3 section 2304(a)(6)(A), the Secretary of the Air Force may

4 carry out architectural and engineering services and con5 struction design activities with respect to the construction

6 or improvement of military family housing units in an

7 amount not to exceed $9,275,000.

8 SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING

9 UNITS.

10 Subject to section 2825 of title 10, United States

11 Code, and using amounts appropriated pursuant to the

12 authorization of appropriations in section 2304(a)(6)(A),

13 the Secretary of the Air Force may improve existing mili14 tary family housing units in an amount not to exceed

15 $61,770,000.

16 SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR

17 FORCE.

18 (a) IN GENERAL.—Funds are hereby authorized to

19 be appropriated for fiscal years beginning after September

20 30, 1994, for military construction, land acquisition, and

21 military family housing functions of the Department of the
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1 Air Force in the total amount of $1,572,801,000 as

2 follows:

3 (1) For military construction projects inside the

4 United States authorized by section 2301(a),

5 $398,904,000.

6 (2) For military construction projects outside

7 the United States authorized by section 2301(b),

8 $38,273,000.

9 (3) For unspecified minor construction projects

10 authorized by section 2805 of title 10, United States

11 Code, $7,000,000.

12 (4) For architectural and engineering services

13 and construction design under section 2807 of title

14 10, United States Code, $49,386,000.

15 (5) For the balance of the amount authorized

16 under section 2301(a) of the Military Construction

17 Authorization Act for Fiscal Year 1993 (division B

18 of Public Law 102–484; 106 Stat. 2593) for the

19 construction of the climatic test chamber at Eglin

20 Air Force Base, Florida, $20,000,000.

21 (6) For military family housing functions:

22 (A) For construction and acquisition of

23 military family housing and facilities,

24 $234,393,000.
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1 (B) For support of military family housing

2 (including functions described in section 2833

3 of title 10, United States Code), $824,845,000

4 of which not more than $112,757,000 may be

5 obligated or expended for leasing of military

6 family housing units worldwide.

7 (b) LIMITATION ON TOTAL COST OF CONSTRUCTION

8 PROJECTS.—Notwithstanding the cost variations author9 ized by section 2853 of title 10, United States Code, and

10 any other cost variation authorized by law, the total cost

11 of all projects carried out under section 2301 of this Act

12 may not exceed the total amount authorized to be appro13 priated under paragraphs (1) and (2) of subsection (a).

14 SEC. 2305. AUTHORIZATION OF MILITARY CONSTRUCTION

15 PROJECTS AT TYNDALL AIR FORCE BASE,

16 FLORIDA, FOR WHICH FUNDS HAVE BEEN AP17 PROPRIATED.

18 The table in section 2301 of the Military Construc19 tion Authorization Act for Fiscal Year 1994 (division B

20 of Public Law 103–160; 107 Stat. 1866) is amended in

21 the item relating to Tyndall Air Force Base, Florida, by

22 striking out ‘‘$2,600,000’’ in the column under the head23 ing ‘‘Amount’’ and inserting in lieu thereof ‘‘$8,200,000’’.
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1 SEC. 2306. REVISION OF AUTHORIZED FAMILY HOUSING

2 PROJECT, TYNDALL AIR FORCE BASE, FLOR3 IDA.

4 The table in section 2302(a) of the Military Construc5 tion Authorization Act for Fiscal Year 1994 (division B

6 of Public Law 103–160; 107 Stat. 1869) is amended in

7 the item relating to Tyndall Air Force Base, Florida, by

8 striking out ‘‘Infrastructure’’ in the third column and in9 serting in lieu thereof ‘‘45 units’’.

10 TITLE XXIV—DEFENSE

11 AGENCIES

12 SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUC13 TION AND LAND ACQUISITION PROJECTS.

14 Using amounts appropriated pursuant to the author15 ization of appropriations in section 2405(a)(1), the Sec16 retary of Defense may acquire real property and carry out

17 military construction projects in the total amount of

18 $397,700,000 for the installations and locations inside the

19 United States, and in the amounts for such installations

20 and locations, set forth in the following table:

Defense Agencies: Inside the United States

Agency Installation or location Amount

Chemical Agents and

Munitions Destruction ........................ Anniston Army Depot, Alabama ... $5,000,000 ...

Pine Bluff Arsenal, Arkansas ........ $102,000,000 ...

Umatilla Army Depot, Oregon ...... $183,000,000 ...

Tooele Army Depot, Utah ............. $4,000,000 ...

Defense Intelligence

Agency ................... Bolling Air Force Base, Washington, District of Columbia.$600,000 ...
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Defense Agencies: Inside the United States—Continued

Agency Installation or location Amount

Defense Logistics

Agency ................... Defense Contract Management Office, El Segundo, California.$5,100,000 ...

Defense Construction Supply Center, Columbus, Ohio ................... $2,200,000 ...

Defense Fuel Support Point,

Craney Island, Virginia .............. $3,652,000 ...

Headquarters, Defense Logistics

Agency, Fort Belvoir, Virginia ... $4,600,000 ...

Defense Medical Facilities Office ......... McClellan Air Force Base, California.

$10,280,000 ...

Fort McPherson, Georgia .............. $13,400,000 ...

Fort Dix, New Jersey .................... $2,000,000 ...

National Security

Agency ................... Fort Meade, Maryland .................. $20,258,000 ...

Office of Secretary of

Defense ................. Various Locations, Special Activities, Air Force.$5,300,000 ...

Section 6 Schools ..... Naval Surface Warfare Center,

Virginia.

$1,560,000 ...

Special Operations

Force ..................... Eglin Auxiliary Field No. 9, Florida.$21,750,000 ...

Kirtland Air Force Base, New

Mexico ........................................ $9,600,000 ...

Naval Amphibious Base, Coronado, San Diego, California ....... $3,400,000 ...

1 SEC. 2402. FAMILY HOUSING.

2 (a) CONSTRUCTION AND ACQUISITION.—Using

3 amounts appropriated pursuant to the authorization of ap4 propriations in section 2405(a)(11)(A), the Secretary of

5 Defense may construct or acquire family housing units

6 (including land acquisition) at the installation, for the pur7 pose, and in the amount set forth in the following table:

Defense Agencies: Family Housing

Location Installation Purpose Amount

Belgium ............ National Security

Agency ............. 1 unit ............... $300,000
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1 SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING

2 UNITS.

3 Subject to section 2825 of title 10, United States

4 Code, and using amounts appropriated pursuant to the

5 authorization of appropriations in section 2405(a)(11)(A),

6 the Secretary of Defense may improve existing military

7 family housing units in an amount not to exceed $50,000.

8 SEC. 2404. ENERGY CONSERVATION PROJECTS.

9 Using amounts appropriated pursuant to the author10 ization of appropriations in section 2405(a)(8), the Sec11 retary of Defense may carry out energy conservation

12 projects under section 2865 of title 10, United States

13 Code.

14 SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DE15 FENSE AGENCIES.

16 (a) IN GENERAL.—Funds are hereby authorized to

17 be appropriated for fiscal years beginning after September

18 30, 1994, for military construction, land acquisition, and

19 military family housing functions of the Department of

20 Defense (other than the military departments) in the total

21 amount of $3,230,058,000 as follows:

22 (1) For military construction projects inside the

23 United States authorized by section 2401(a),

24 $136,700,000.

25 (2) For military construction projects at Ports26 mouth Naval Hospital, Virginia, authorized by sec-
278

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1 tion 2401(a) of the Military Construction Authoriza2 tion Act for Fiscal Years 1990 and 1991 (division

3 B of Public Law 101–189; 103 Stat. 1640),

4 $120,000,000.

5 (3) For military construction projects at El6 mendorf Air Force Base, Alaska, hospital replace7 ment, authorized by section 2401(a) of the Military

8 Construction Authorization Act for Fiscal Year 1993

9 (division B of Public Law 102–484; 106 Stat.

10 2599), $66,000,000.

11 (4) For military construction projects at Fort

12 Bragg, North Carolina, hospital replacement, au13 thorized by section 2401(a) of the Military Construc14 tion Authorization Act for Fiscal Year 1993 (divi15 sion B of Public Law 102–484; 106 Stat. 2599),

16 $75,000,000.

17 (5) For unspecified minor construction projects

18 under section 2805 of title 10, United States Code,

19 $22,348,000.

20 (6) For contingency construction projects of the

21 Secretary of Defense under section 2804 of title 10,

22 United States Code, $8,511,000.

23 (7) For architectural and engineering services

24 and for construction design under section 2807 of

25 title 10, United States Code, $45,960,000.
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1 (8) For energy conservation projects authorized

2 by section 2404, $50,000,000.

3 (9) For base closure and realignment activities

4 as authorized by the Defense Authorization Amend5 ments and Base Closure and Realignment Act (title

6 II of Public Law 100–526; 10 U.S.C. 2687 note),

7 $87,600,000.

8 (10) For base closure and realignment activities

9 as authorized by the Defense Base Closure and

10 Realignment Act of 1990 (part A of title XXIX of

11 Public Law 101–510; 10 U.S.C. 2687 note):

12 (A) For military installations approved for

13 closure or realignment in 1991, $398,700,000.

14 (B) For military installations approved for

15 closure or realignment in 1993,

16 $2,189,858,000.

17 (11) For military family housing functions:

18 (A) For construction and acquisition of

19 military family housing and facilities, $350,000.

20 (B) For support of military housing (in21 cluding functions described in section 2833 of

22 title 10, United States Code), $29,031,000, of

23 which not more than $24,051,000 may be obli24 gated or expended for the leasing of military

25 family housing units worldwide.
280

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1 (b) LIMITATION OF TOTAL COST OF CONSTRUCTION

2 PROJECTS.—Notwithstanding the cost variations author3 ized by section 2853 of title 10, United States Code, and

4 any other cost variations authorized by law, the total cost

5 of all projects carried out under section 2401 of this Act

6 may not exceed—

7 (1) the total amount authorized to be appro8 priated under paragraphs (1) and (2) of subsection

9 (a) and subsection (b);

10 (2) $94,000,000 (the balance of the amount au11 thorized for construction of a chemical munitions de12 militarization facility at Pine Bluff Arsenal, Arkan13 sas); and

14 (3) $167,000,000 (the balance of the amount

15 authorized for construction of a chemical munitions

16 demilitarization facility at Umatilla Army Depot,

17 Oregon).

18 SEC. 2406. TERMINATION OF AUTHORITY TO CARRY OUT

19 FISCAL YEAR 1993 PROJECT.

20 (a) TERMINATION OF AUTHORITY.—The table in sec21 tion 2401(a) of the Military Construction Authorization

22 Act for Fiscal Year 1993 (division B of Public Law 102–

23 484; 106 Stat. 2599) is amended by striking out the item

24 relating to Fitzsimons Army Medical Center, Colorado.
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1 (b) CONFORMING AMENDMENTS.—(1) Subsection (a)

2 of section 2403 of such Act (106 Stat. 2600) is amend3 ed—

4 (A) in the matter above paragraph (1), by strik5 ing out ‘‘$2,567,146,000’’ and inserting in lieu

6 thereof ‘‘$2,565,146,000’’; and

7 (B) in paragraph (1), by striking out

8 ‘‘$87,950,000’’ and inserting in lieu thereof

9 ‘‘$85,950,000’’.

10 (2) Subsection (c) of such section is amended—

11 (A) by inserting ‘‘and’’ at the end of paragraph

12 (4);

13 (B) by striking out ‘‘; and’’ at the end of para14 graph (5) and inserting lieu thereof a period; and

15 (C) by striking out paragraph (6).

16 SEC. 2407. COMMUNITY IMPACT ASSISTANCE WITH REGARD

17 TO NAVAL WEAPONS STATION, CHARLESTON,

18 SOUTH CAROLINA.

19 Of the amount appropriated pursuant to the author20 ization of appropriations in section 2405(a)(10)(B), the

21 Secretary of the Navy shall transfer $3,000,000 to the

22 South Carolina Department of Highways and Public

23 Transportation. Funds transferred pursuant to this sec24 tion shall be used for making improvements to North

25 Rhett Avenue, Charleston, South Carolina.
282

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1 TITLE XXV—NORTH ATLANTIC

2 TREATY ORGANIZATION IN3 FRASTRUCTURE

4 SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND

5 ACQUISITION PROJECTS.

6 The Secretary of Defense may make contributions for

7 the North Atlantic Treaty Organization Infrastructure

8 Program as provided in section 2806 of title 10, United

9 States Code, in an amount not to exceed the sum of the

10 amount authorized to be appropriated for this purpose in

11 section 2502 and the amount collected from the North At12 lantic Treaty Organization as a result of construction pre13 viously financed by the United States.

14 SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

15 Funds are hereby authorized to be appropriated for

16 fiscal years beginning after September 30, 1994, for con17 tributions by the Secretary of Defense under section 2806

18 of title 10, United States Code, for the share of the United

19 States of the cost of projects for the North Atlantic Treaty

20 Organization Infrastructure Program as authorized by

21 section 2501, in the amount of $219,000,000.
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1 TITLE XXVI—GUARD AND

2 RESERVE FORCES FACILITIES

3 SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUC4 TION AND LAND ACQUISITION PROJECTS.

5 There are authorized to be appropriated for fiscal

6 years beginning after September 30, 1994, for the costs

7 of acquisition, architectural and engineering services, and

8 construction of facilities for the Guard and Reserve

9 Forces, and for contributions therefor, under chapter 133

10 of title 10, United States Code (including the cost of ac11 quisition of land for those facilities), the following

12 amounts:

13 (1) For the Department of the Army—

14 (A) for the Army National Guard of the

15 United States, $146,447,000; and

16 (B) for the Army Reserve, $16,470,000.

17 (2) For the Department of the Navy, for the

18 Naval and Marine Corps Reserve, $6,955,000.

19 (3) For the Department of the Air Force—

20 (A) for the Air National Guard of the

21 United States, $224,053,000; and

22 (B) for the Air Force Reserve,

23 $28,190,000.
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1 SEC. 2602. AUTHORIZATION OF CERTAIN NATIONAL GUARD

2 AND RESERVE PROJECTS FOR WHICH FUNDS

3 HAVE BEEN APPROPRIATED.

4 (a) FISCAL YEAR 1994 GUARD AND RESERVE

5 PROJECTS.—Section 2601 of the Military Construction

6 Authorization Act for Fiscal Year 1994 (division B of

7 Public Law 103–160; 107 Stat. 1878) is amended—

8 (1) in paragraph (1)(A), by striking out

9 ‘‘$283,483,000’’ and inserting in lieu thereof

10 ‘‘$286,693,000’’; and

11 (2) in paragraph (2), by striking out

12 ‘‘$25,013,000’’ and inserting in lieu thereof

13 ‘‘$33,713,000’’.

14 (b) FISCAL YEAR 1993 AIR NATIONAL GUARD

15 PROJECT.—Section 2601(3)(A) of the Military Construc16 tion Authorization Act for Fiscal Year 1993 (division B

17 of Public Law 102–484; 106 Stat. 2602) is amended by

18 striking out ‘‘$305,759,000’’ and inserting in lieu thereof

19 ‘‘$306,959,000’’.

20 TITLE XXVII—EXPIRATION OF

21 AUTHORIZATIONS

22 SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND

23 AMOUNTS REQUIRED TO BE SPECIFIED BY

24 LAW.

25 (a) EXPIRATION OF AUTHORIZATIONS AFTER THREE

26 YEARS.—Except as provided in subsection (b), all author-
285

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1 izations contained in titles XXI through XXVI for military

2 construction projects, land acquisition, family housing

3 projects and facilities, and contributions to the North At4 lantic Treaty Organization Infrastructure program (and

5 authorizations of appropriations therefor) shall expire on

6 the later of—

7 (1) October 1, 1997; or

8 (2) the date of the enactment of an Act author9 izing funds for military construction for fiscal year

10 1998.

11 (b) EXCEPTION.—Subsection (a) shall not apply to

12 authorizations for military construction projects, land ac13 quisition, family housing projects and facilities, and con14 tributions to the North Atlantic Treaty Organization In15 frastructure program (and authorizations of appropria16 tions therefor), for which appropriated funds have been

17 obligated before the later of—

18 (1) October 1, 1997; or

19 (2) the date of the enactment of an Act author20 izing funds for fiscal year 1998 for military con21 struction projects, land acquisition, family housing

22 projects and facilities, or contributions to the North

23 Atlantic Treaty Organization Infrastructure pro24 gram.
286

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1 SEC. 2702. EXTENSION OF AUTHORIZATION OF CERTAIN

2 FISCAL YEAR 1992 PROJECTS.

3 (a) EXTENSIONS.—Notwithstanding section 2701(b)

4 of the Military Construction Authorization Act for Fiscal

5 Year 1992 (division B of Public Law 102–190; 105 Stat.

6 1535) authorizations for the projects set forth in the ta7 bles in subsection (b), as provided in section 2101, 2301,

8 or 2601 of that Act, shall remain in effect until October

9 1, 1995, or the date of the enactment of an Act authoriz10 ing funds for military construction for fiscal year 1996,

11 whichever is later.

12 (b) TABLES.—The tables referred to in subsection (a)

13 are as follows:

Army: Extension of 1992 Project Authorizations

State Installation or

location Project Amount

Colorado.. Fort Carson ........ Family Housing New

Construction (1 Unit) .... $150,000 ...

Georgia .. Fort Benning ...... General Instruction Facility .................................. $2,150,000 ...

Camp Merrill ...... Family Housing New

Construction (40 units) . $4,550,000 ...

Fort Stewart ....... Family Housing New

Construction (120 units) $9,700,000 ...

Oregon ... Umatilla Depot Activity .................. Ammunition Demilitarization Support Facility.

$3,600,000 ...

Umatilla Depot

Activity ............. Ammunition Demilitarization Utilities.$7,500,000 ...
287

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Air Force: Extension of 1992 Project Authorization

State Installation or

location Project Amount

Alaska .... Eareckson Air

Force Station

(formerly

Shemya Air

Force Station) .. Hazardous Materials

Storage.

$4,000,000 ...

Army National Guard: Extension of 1992 Project Authorizations

State Installation or

location Project Amount

California Stockton .............. Add/Alter Combined Support Maintenance Shop . $1,613,000 ...

District

of Columbia .. Fort Belvoir ........ Army Aviation Support

Facility .......................... $2,765,000 ...

Maryland Towson ............... Direct Logistics Warehouse.$373,000 ...

Cheltenham ......... Armory ............................ $3,300,000 ...

Mississippi ..... West Point .......... Organizational Maintenance Shop .................... $1,270,000 ...

Tupelo ................. Organizational Maintenance Shop .................... $992,000 ...

Senatobia ............ Organizational Maintenance Shop .................... $723,000 ...

Nevada ... Washoe County ... Organizational Maintenance Shop .................... $1,050,000 ...

North

Carolina Camp Butler ....... Range, Modified Record

Fire ................................ $986,000 ...

Rhode Island ...... Camp Varnum .... Sewer and Water System $578,000 ...

Camp Fogarty .... Armory ............................ $5,151,000 ...

West Virginia ..... Huntington ......... Guard/Reserve Center ..... $2,983,000 ...

Army Reserve: Extension of 1992 Project Authorizations

State Installation or

location Project Amount

Massachusetts ..... Taunton ................ Reserve Center ................ $3,526,000 ...

Ohio ....... Perrysburg .......... Reserve Center Addition . $2,749,000 ...

Pennsylvania ........ Johnstown ............ Army/Marine Corps Aviation Facility ................... $30,224,000 ...
288

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Army Reserve: Extension of 1992 Project Authorizations—

Continued

State Installation or

location Project Amount

Tennessee Jackson ............... Joint Training Facility .... $1,537,000 ...

West Virginia ..... Huntington ......... Guard and Reserve Center .................................. $6,617,000 ...

1 SEC. 2703. CLARIFICATION OF EXTENSION OF AUTHORIZA2 TIONS OF CERTAIN FISCAL YEAR 1991

3 PROJECTS.

4 (a) CLARIFICATION.—The table relating to the exten5 sion of authorization of certain fiscal year 1991 projects

6 of the Defense Agencies in section 2702(b) of the Military

7 Construction Authorization Act for Fiscal Year 1994 (di8 vision B of Public Law 103–160; 107 Stat. 1882) is

9 amended by inserting before the item relating to the De10 fense Logistics Agency, Defense Reutilization and Market11 ing Office, Fort Meade, Maryland, the following:
289

•S 2211 PCSCalifornia Defense Lan- guage Institute,

Monterey ........... Audio Visual Facility ...... $2,322,000 ...

Defense Language Institute,

Monterey ........... Print Plant ...................... $1,860,000 ...
290

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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall take effect as if included in the provi3 sions of the Military Construction Authorization Act for

4 Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1822)

5 to which such amendment relates.

6 SEC. 2704. EXTENSION OF CERTAIN FISCAL YEAR 1991

7 PROJECTS.

8 (a) EXTENSIONS.—Notwithstanding section 2701(b)

9 of the Military Construction Authorization Act for Fiscal

10 Year 1991 (division B of Public Law 101–510; 104 Stat.

11 1782), authorizations for the projects set forth in the table

12 in subsection (b) as provided in section 2401(a) of that

13 Act and extended by section 2702(a) of the Military Con14 struction Authorization Act for Fiscal Year 1992 (division

15 B of Public Law 102–190; 105 Stat. 1535) and section

16 2702 of the Military Construction Authorization Act for

17 Fiscal Year 1994 (division B of Public Law 103–160; 107

18 Stat. 1880), as amended by section 2703 of this Act, shall

19 remain in effect until October 1, 1995, or the date of the

20 enactment of an Act authorizing funds for military con21 struction for fiscal year 1995, whichever is later.

22 (b) TABLE.—The table referred to in subsection (a)

23 is as follows:
291

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Monterey.

Audio Visual Instructional Media Facility ..... $2,322,000 ...

Defense Language Institute,

Monterey.

Print Plant ...................... $1,860,000 ...

Maryland Defense Logistics

Agency, DefenseReutilization andMarketing Office, Fort Meade Covered Storage .............. $9,500,000 ...
292

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1 SEC. 2705. EFFECTIVE DATE.

2 Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI

3 shall take effect on the later of—

4 (1) October 1, 1994; or

5 (2) the date of the enactment of this Act.

6 TITLE XXVIII—GENERAL

7 PROVISIONS

8 Subtitle A—Military Construction

9 Program and Military Family

10 Housing Changes

11 SEC. 2801. CLARIFICATION OF REQUIREMENT FOR NOTIFI12 CATION OF CONGRESS OF IMPROVEMENTS IN

13 FAMILY HOUSING UNITS.

14 Section 2825(b) of title 10, United States Code, is

15 amended by adding at the end the following new para16 graph:

17 ‘‘(3) The limitation contained in the first sentence of

18 paragraph (1) does not apply to a project for the improve19 ment of a family housing unit or units referred to in that

20 sentence if the project (including the amount requested

21 for the project) is identified in the budget materials sub22 mitted to Congress by the Secretary of Defense in connec23 tion with the submission to Congress of the budget for

24 a fiscal year pursuant to section 1105 of title 31.’’.
293

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1 SEC. 2802. AUTHORITY TO PAY CLOSING COSTS UNDER

2 HOMEOWNERS ASSISTANCE PROGRAM.

3 Section 1013(c) of the Demonstration Cities and

4 Metropolitan Development Act of 1966 (42 U.S.C.

5 3374(c)) is amended by inserting after the first sentence

6 the following: ‘‘The Secretary may also pay a person who

7 elects to receive a cash payment under clause (1) of the

8 preceding sentence an amount that the Secretary deter9 mines appropriate to reimburse the person for the costs

10 incurred by the person in the sale of the property if the

11 Secretary determines that such payment will benefit the

12 person and is in the best interest of the Federal Govern13 ment.’’.

14 Subtitle B—Base Closure Matters

15 SEC. 2811. PROHIBITION AGAINST CONSIDERATION IN

16 BASE CLOSURE PROCESS OF ADVANCE CON17 VERSION PLANNING UNDERTAKEN BY PO18 TENTIAL AFFECTED COMMUNITIES.

19 (a) DEPARTMENT OF DEFENSE RECOMMENDA20 TIONS.—Subsection (c)(3) of section 2903 of the Defense

21 Base Closure and Realignment Act of 1990 (part A of title

22 XXIX of Public Law 101–510; 10 U.S.C. 2687 note) is

23 amended—

24 (1) by inserting ‘‘(A)’’ before ‘‘In considering’’;

25 and
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1 (2) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) In considering military installations for closure

4 or realignment, the Secretary may not take into account

5 for any purpose any advance conversion planning under6 taken by an affected community with respect to the antici7 pated closure or realignment of an installation.

8 ‘‘(C) For purposes of subparagraph (B), in the case

9 of a community anticipating the economic effects of a clo10 sure or realignment of a military installation, advance con11 version planning—

12 ‘‘(i) shall include community adjustment and

13 economic diversification planning undertaken by the

14 community before an anticipated selection of a mili15 tary installation in or near the community for clo16 sure or realignment; and

17 ‘‘(ii) may include the development of contin18 gency redevelopment plans, plans for economic devel19 opment and diversification, and plans for the joint

20 use (including civilian and military use, public and

21 private use, civilian dual use, and civilian shared

22 use) of the property or facilities of the installation

23 after the anticipated closure or realignment.’’.
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1 (b) COMMISSION RECOMMENDATIONS.—Subsection

2 (d)(2) of such section is amended by adding at the end

3 the following:

4 ‘‘(E) In making recommendations under this para5 graph, the Commission may not take into account for any

6 purpose any advance conversion planning undertaken by

7 an affected community with respect to the anticipated clo8 sure or realignment of a military installation.’’.

9 SEC. 2812. CLARIFYING AND TECHNICAL AMENDMENTS TO

10 BASE CLOSURE LAWS.

11 (a) CLARIFICATION OF SCOPE OF TERMINATION OF

12 AUTHORITY UNDER 1988 ACT.—Section 202(c) of the

13 Defense Authorization Amendments and Base Closure and

14 Realignment Act (Public Law 100–526; 10 U.S.C. 2687

15 note) is amended—

16 (1) by striking out ‘‘The authority’’ and insert17 ing in lieu thereof ‘‘(1) Except as provided in para18 graph (2), the authority’’; and

19 (2) by adding at the end the following new

20 paragraph:

21 ‘‘(2) The termination of authority set forth in para22 graph (1) shall not apply to the authority of the Secretary

23 to carry out environmental restoration and waste manage24 ment at, or disposal of property of, military installations

25 closed or realigned under this title.’’.
296

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1 (b) USE OF UNOBLIGATED FUNDS IN 1988 ACCOUNT

2 FOR ENVIRONMENTAL RESTORATION AND PROPERTY

3 DISPOSAL.—Section 207(a)(5) of such Act is amended—

4 (1) by striking out ‘‘Unobligated funds’’ and in5 serting in lieu thereof ‘‘(A) Except as provided in

6 subparagraph (B), unobligated funds’’; and

7 (2) by adding at the end the following new sub8 paragraph:

9 ‘‘(B) The Secretary may, after the termination of au10 thority referred to in subparagraph (A), use any unobli11 gated funds referred to in that subparagraph that are not

12 transferred in accordance with that subparagraph to carry

13 out environmental restoration and waste management at,

14 or disposal of property of, military installations closed or

15 realigned under this title.’’.

16 (c) CLARIFICATION OF DISPOSAL AUTHORITY.—

17 (1) UNDER 1988 ACT.—Section 204(b)(1) of

18 such Act is amended in the matter above paragraph

19 (1) by striking out ‘‘real property and facilities’’ and

20 inserting in lieu thereof ‘‘real property, facilities,

21 and personal property’’.

22 (2) UNDER 1990 ACT.—Section 2905(b)(1) of

23 the Defense Base Closure and Realignment Act of

24 1990 (part A of title XXIX of Public Law 101–510;

25 10 U.S.C. 2687 note) is amended in the matter
297

•S 2211 PCS

1 above paragraph (1) by striking out ‘‘real property

2 and facilities’’ and inserting in lieu thereof ‘‘real

3 property, facilities, and personal property’’.

4 (d) DEFINITION OF REDEVELOPMENT AUTHOR5 ITY.—

6 (1) UNDER 1988 ACT.—Section 209(10) of the

7 Defense Authorization Amendments and Base Clo8 sure and Realignment Act (Public Law 100–526; 10

9 U.S.C. 2687 note) is amended by striking out ‘‘and

10 for’’ and inserting in lieu thereof ‘‘or for’’.

11 (2) UNDER 1990 ACT.—Section 2910(9) of the

12 Defense Base Closure and Realignment Act of 1990

13 (part A of title XXIX of Public Law 101–510; 10

14 U.S.C. 2687 note) is amended by striking out ‘‘and

15 for’’ and inserting in lieu thereof ‘‘or for’’.

16 (3) EFFECTIVE DATE.—The amendments made

17 by paragraphs (1) and (2) shall take effect as if in18 cluded in the amendments made by 2918 of the Na19 tional Defense Authorization Act for Fiscal Year

20 1994 (Public Law 103–160; 107 Stat. 1927).

21 (e) TECHNICAL AMENDMENTS FOR INTERNAL CON22 SISTENCY.—

23 (1) 1988 ACT.—Section 204(b)(3) of the De24 fense Authorization Amendments and Base Closure
298

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1 and Realignment Act (Public Law 100–526; 10

2 U.S.C. 2687 note) is amended—

3 (A) in subparagraph (A)(ii), by striking

4 out ‘‘determines to be related to real property

5 and’’; and

6 (B) in subparagraph (E), by striking out

7 ‘‘related’’ in the matter above clause (i).

8 (2) 1990 ACT.—Section 2905(b)(3)(A)(ii) of the

9 Defense Base Closure and Realignment Act of 1990

10 (part A of title XXIX of Public Law 101–510; 10

11 U.S.C. 2687 note) is amended by striking out ‘‘de12 termines to be related to real property and’’.

13 (3) EFFECTIVE DATE.—The amendments made

14 by paragraphs (1) and (2) shall take effect as if in15 cluded in the amendments made by 2902 of the Na16 tional Defense Authorization Act for Fiscal Year

17 1994 (Public Law 103–160; 107 Stat. 1909).

18 Subtitle C—Land Transactions

19 Generally

20 SEC. 2821. LAND TRANSFER, HOLLOMAN AIR FORCE BASE,

21 NEW MEXICO.

22 (a) IN GENERAL.—Subject to subsections (c) through

23 (g), not later than 90 days after the date of enactment

24 of this Act, the Secretary of the Interior shall transfer

25 to the Department of the Air Force, without reimburse-
299

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1 ment, jurisdiction and control of approximately 1,262

2 acres of public lands described in subsection (b). Such

3 public lands are located in Otero County, New Mexico, and

4 are contiguous to Holloman Air Force Base.

5 (b) DESCRIPTION OF LANDS TRANSFERRED.—The

6 lands described in this subsection are as follows:

(1) T17S, R8E, Section 21: S1⁄2 N1⁄2: 160 acres

E1⁄2 NW1⁄4 NE1⁄4: 20 acres

NE1⁄4 NE1⁄4: 40 acres

(2) T17S, R8E, Section 22: W1⁄2: 320 acres

W1⁄2 E1⁄2: 160 acres

(3) T17S, R8E, Section 27: All that part north of New Mexico

Highway 70 except for the E1⁄2

E1⁄2

192 acres

more or

less

(4) T17S, R8E, Section 28: NE1⁄4: 160 acres

N1⁄2 SE1⁄4: 80 acres

SW1⁄4 SE1⁄4: 40 acres

W1⁄2 SE1⁄4 SE1⁄4: 20 acres

(5) T17S, R8E, Section 33: NW1⁄4 NE1⁄4: 40 acres

NW1⁄4 NE1⁄4 NE1⁄4: 10 acres

W1⁄2 SW1⁄4 NE1⁄4: 20 acres

7 (c) USE OF TRANSFERRED LAND.—The lands trans8 ferred to the Department of the Air Force under sub9 section (a) shall be used by the Secretary of the Air Force

10 for the construction of new evaporation ponds to support

11 a wastewater treatment facility that the Secretary shall

12 construct at Holloman Air Force Base.

13 (d) CATTLE GRAZING RIGHTS.—

14 (1) IN GENERAL.—The United States recog15 nizes a grazing preference on the lands transferred

16 to the Department of the Air Force under subsection

17 (a).

18 (2) ADJUSTMENT OF GRAZING ALLOTMENT.—

19 (A) The Secretary of the Air Force shall take such

20 action as is necessary to ensure that—
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1 (i) the boundary of the grazing allotment

2 that contains the lands transferred to the De3 partment of the Air Force is adjusted in such

4 manner as to retain the portion of the allotment

5 located south of United States Highway 70 in

6 New Mexico and remove the portion of the

7 lands that is located north of such highway; and

8 (ii) the grazing preference referred to in

9 paragraph (1) is retained by means of transfer10 ring the preference for the area removed from

11 the allotment under subparagraph (A) to public

12 lands located south of such highway.

13 (B) The Secretary of the Air Force shall offer

14 to enter into an agreement with each person who

15 holds a permit for grazing on the lands transferred

16 to the Department of the Air Force at the time of

17 the transfer to provide for the continued grazing by

18 livestock on the portion of the lands located south of

19 such highway.

20 (e) ADDITIONAL REQUIREMENTS.—

21 (1) NATIONAL ENVIRONMENTAL POLICY ACT OF

22 1969.—The Secretary of the Air Force shall ensure

23 that the transfer made pursuant to subsection (a)

24 and the use specified in subsection (c) meet any ap-
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•S 2211 PCS

1 plicable requirements of the National Environmental

2 Policy Act of 1969 (42 U.S.C. 4321 et seq.).

3 (2) ENVIRONMENTAL LAWS.—The Secretary of

4 the Air Force shall use and manage the lands trans5 ferred under the authority in subsection (a) in such

6 manner as to ensure compliance with applicable en7 vironmental laws (including regulations) of the Fed8 eral Government and State of New Mexico, and po9 litical subdivisions thereof.

10 (3) RESPONSIBILITY FOR CLEANUP OF HAZARD11 OUS SUBSTANCES.—Notwithstanding any other pro12 vision of law, the Secretary of the Air Force shall,

13 upon the transfer of the lands under subsection (a),

14 assume any existing or subsequent responsibility and

15 liability for the cleanup of hazardous substances (as

16 defined in section 101(14) of the Comprehensive En17 vironmental Response, Compensation, and Liability

18 Act of 1980 (42 U.S.C. 9601(14))) located on or

19 within the lands transferred.

20 (4) MINING.—The transfer of lands under sub21 section (a) shall be made in such manner as to en22 sure the continuation of valid, existing rights under

23 the mining laws and the mineral leasing and geo24 thermal leasing laws of the United States. Subject to

25 the preceding sentence, upon the transfer of the
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•S 2211 PCS

1 lands, mining and mineral management activities

2 shall be carried out in the lands in a manner consist3 ent with the policies of the Department of Defense

4 concerning mineral exploration and extraction on

5 lands under the jurisdiction of the Department.

6 (f) RIGHTS-OF-WAY.—The transfer of lands under

7 subsection (a) shall not affect the following rights-of-way:

8 (1) The right-of-way granted to the Otero

9 County Electric Cooperative, numbered NMNM

10 58293.

11 (2) The right-of-way granted to U.S. West

12 Corporation, numbered NMNM 59261.

13 (3) The right-of-way granted to the High14 way Department of the State of New Mexico,

15 numbered LC0 54403.

16 (g) PUBLIC ACCESS.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the Secretary of the Air Force shall per19 mit public access to the lands transferred under sub20 section (a).

21 (2) CONSTRUCTION SITE.—The Secretary of the

22 Air Force may not permit public access to the imme23 diate area affected by the construction of a

24 wastewater treatment facility in the area with the

25 legal description of T17S, R8E, Section 22, except
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•S 2211 PCS

1 that the Secretary of the Air Force shall permit pub2 lic access on an adjoining unfenced parcel of land—

3 (A) located along the west boundary of

4 such area; and

5 (B) that is 50 feet in width.

6 (3) PUBLIC USES.—Except as provided in para7 graph (2), the Secretary of the Air Force shall per8 mit, on the lands transferred under subsection (a),

9 public uses that are consistent with the public uses

10 on adjacent lands under the jurisdiction of the Sec11 retary of the Interior.

12 (4) PERMIT NOT REQUIRED.—The Secretary of

13 the Air Force may not require a permit for access

14 authorized under this subsection to the lands trans15 ferred under subsection (a).

16 (5) ENTRY GATE.—The Secretary of the Air

17 Force shall ensure that the entry gate to the lands

18 transferred under subsection (a) that is located

19 along United States Highway 70 shall be open to

20 the public.

21 SEC. 2822. JOINT USE OF PROPERTY, PORT HUENEME,

22 CALIFORNIA.

23 (a) AGREEMENT AUTHORIZED.—The Secretary of

24 the Navy may enter into an agreement with the Oxnard

25 Harbor District, Port Hueneme, California, a special dis-
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•S 2211 PCS

1 trict of the State of California (in this section referred

2 to as the ‘‘District’’), to provide for the joint use by Sec3 retary and the District of a parcel of real property consist4 ing of approximately 25 acres, together with improvements

5 thereto, that comprises United States Navy Wharf Num6 ber 3, the location of the Naval Construction Battalion

7 Center, Port Hueneme, California.

8 (b) PERIOD.—The agreement authorized under sub9 section (a) shall—

10 (1) be for an initial period of not more than 15

11 years; and

12 (2) contain an option for the District to extend

13 the agreement for three additional periods of 5 years

14 each.

15 (c) CONDITIONS.—The agreement authorized under

16 subsection (a) shall be subject to the following conditions:

17 (1) That the District suspend operations in the

18 joint use area during the periods when the Navy

19 conducts operations at the Naval Construction Bat20 talion Center.

21 (2) That the District carry out activities in the

22 joint use area in a manner that does not interfere

23 with the capability of the Secretary to carry out con24 tingency operations at the Naval Construction Bat25 talion Center.
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•S 2211 PCS

1 (d) CONSIDERATION.—(1) As consideration for the

2 use of the real property under subsection (a), the Dis3 trict—

4 (A) shall pay to the Secretary the fair market

5 rental value (as determined by the Secretary) of the

6 District’s interest in the property; and

7 (B) may be required to furnish additional con8 sideration as provided in paragraph (2).

9 (2) The Secretary may require that the agreement

10 include a provision that the District—

11 (A) either—

12 (i) pay the Secretary an amount (as deter13 mined by the Secretary) equal to the cost to the

14 Navy of replacing at the Naval Construction

15 Battalion Center the facilities vacated by the

16 Navy in the joint use area; or

17 (ii) construct the replacement facilities for

18 the Navy; and

19 (B) pay the Secretary an amount (as deter20 mined by the Secretary) equal to the cost to the

21 Navy of relocating Navy operations from the vacated

22 facilities to the replacement facilities.

23 (e) NOTICE AND WAIT REQUIREMENTS.—The Sec24 retary may not enter into the agreement authorized by

25 subsection (a) until 21 days after the date on which the
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•S 2211 PCS

1 Secretary submits to the Committees on Armed Services

2 of the Senate and the House of Representatives a report

3 containing an explanation of the terms of the proposed

4 agreement and a description of the consideration that the

5 Secretary expects to receive under the agreement.

6 (f) USE OF PROCEEDS.—(1) The Secretary may use

7 amounts received under subsection (d)(1)(A) to pay for

8 general supervision, administration and overhead expenses

9 incurred by the Secretary under the agreement and for

10 improvement, maintenance, repair, construction, or res11 toration of the port operations area or of roads and rail12 ways serving the area at the Naval Construction Battalion

13 Center.

14 (2) The Secretary may use amounts received under

15 subsection (d)(2) to pay for constructing new facilities, or

16 making modifications to existing facilities, that are nec17 essary to replace facilities vacated by the Navy in the joint

18 use area and for relocating operations of the Navy from

19 the vacated facilities to the replacement facilities.

20 (g) AUTHORITY TO REPLACE FACILITIES.—The Sec21 retary may authorize the District to demolish existing fa22 cilities in the joint use area and, consistent with the re23 strictions required by subsection (c)(2), construct new fa24 cilities on the property for the joint use of the Navy and

25 the District.
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•S 2211 PCS

1 (h) DESCRIPTION OF PROPERTY.—The exact acreage

2 and legal description of the real property subject to the

3 agreement authorized under this section shall be deter4 mined by a survey that is satisfactory to the Secretary.

5 The cost of the survey shall be borne by the District.

6 (i) ADDITIONAL TERMS AND CONDITIONS.—The Sec7 retary may require such additional terms and conditions

8 in connection with the agreement authorized under this

9 section as the Secretary considers appropriate to protect

10 the interests of the United States.

11 SEC. 2823. LEASE OF PROPERTY, NAVAL RADIO RECEIVING

12 FACILITY, IMPERIAL BEACH, CORONADO,

13 CALIFORNIA.

14 (a) LEASE AUTHORIZED.—The Secretary of the

15 Navy may lease to the Young Men’s Christian Association

16 of San Diego County, a California nonprofit public benefit

17 corporation (in this section referred to as the ‘‘YMCA’’),

18 such interests in a parcel of real property (including any

19 improvements thereon) consisting of approximately 45

20 acres at the Naval Radio Receiving Facility, Imperial

21 Beach, Coronado, California, as the Secretary considers

22 appropriate for the YMCA to operate and maintain a sum23 mer youth residence camp known as the YMCA San Diego

24 Unified Recreational Facility (Camp SURF). Pursuant to
308

•S 2211 PCS

1 the lease, the Secretary may authorize the YMCA to con2 struct facilities on the parcel.

3 (b) LEASE TERMS.—The lease authorized in sub4 section (a) shall be for a period of 50 years, or such longer

5 period as the Secretary determines to be in the best inter6 ests of the United States.

7 (c) CONSIDERATION.—As consideration for the lease

8 of real property under subsection (a), the YMCA shall—

9 (1) agree to maintain and enhance the natural

10 resources of the leased premises; and

11 (2) pay to the United States an amount in cash

12 equal to the difference between the rental price pre13 scribed by the Secretary under subsection (d) and

14 the value of natural resources maintenance and en15 hancements performed by the YMCA, as determined

16 by the Secretary.

17 (d) DETERMINATION OF RENTAL PRICE.—The Sec18 retary may prescribe a rental price for the real property

19 leased under subsection (a) that is less than the fair mar20 ket rental value of such property.

21 (e) ADDITIONAL TERMS AND CONDITIONS.—The

22 Secretary may require such additional terms and condi23 tions in connection with the lease under subsection (a) as

24 the Secretary considers necessary to protect the operation

25 of the Naval Radio Receiving Facility, Imperial Beach,
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•S 2211 PCS

1 Coronado, California, and to protect the interests of the

2 United States.

3 SEC. 2824. RELEASE OF REVERSIONARY INTEREST ON CER4 TAIN PROPERTY IN YORK COUNTY AND

5 JAMES CITY COUNTY, VIRGINIA, AND NEW6 PORT NEWS, VIRGINIA.

7 (a) RELEASE AUTHORIZED.—The Secretary of the

8 Navy may release the reversionary interest of the United

9 States in the real property conveyed by the deed described

10 in subsection (b).

11 (b) DEED DESCRIPTION.—The deed referred to in

12 subsection (a) is a deed between the United States and

13 the Commonwealth of Virginia dated August 17, 1966,

14 which conveyed to the Commonwealth of Virginia certain

15 parcels of land located in York County and James City

16 County, Virginia, and the city of Newport News, Virginia.

17 (c) ADDITIONAL TERMS.—The Secretary may require

18 such terms or conditions in connection with the release

19 under this section as the Secretary considers appropriate

20 to protect the interests of the United States and to ensure

21 that the real property will continue to be used for public

22 purposes.

23 (d) INSTRUMENT OF RELEASE.—The Secretary may

24 execute and file in the appropriate office or offices a deed

25 of release, amended deed, or other appropriate instrument
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•S 2211 PCS

1 effectuating the release of the reversionary interest under

2 this section.

3 SEC. 2825. LAND TRANSFER, FORT DEVENS, MASSACHU4 SETTS.

5 (a) TRANSFER.—Notwithstanding any other provi6 sion of law and subject to subsection (b), the Secretary

7 of the Army shall transfer administrative jurisdiction of

8 approximately 800 acres of land at Fort Devens, Massa9 chusetts, to the Secretary of the Interior for inclusion in

10 the Oxbow National Wildlife Refuge, Massachusetts.

11 (b) LIMITATION ON TRANSFER.—The Secretary of

12 the Army may not carry out the transfer referred to in

13 subsection (a) unless the Secretary and the reuse author14 ity for Fort Devens for the purposes of the Defense Base

15 Closure and Realignment Act of 1990 (part A of title

16 XXIX of Public Law 101–510; 10 U.S.C. 2687 note),

17 jointly determine that the transfer of the land under this

18 section is consistent with the redevelopment plan prepared

19 under section 2905(b) of such Act.

20 (c) ADMINISTRATION OF LAND.—The Secretary of

21 the Interior shall administer the land transferred under

22 this section in accordance with all laws applicable to areas

23 in the National Wildlife Refuge System.

24 (d) DESCRIPTION OF PROPERTY.—The exact acreage

25 and legal description of the property to be transferred
311

•S 2211 PCS

1 under this section shall be determined by a survey satis2 factory to the Secretary of the Army and the Secretary

3 of the Interior.

4 SEC. 2826. LAND CONVEYANCE, CORNHUSKER ARMY AMMU5 NITION PLANT, HALL COUNTY, NEBRASKA.

6 (a) CONVEYANCE AUTHORIZED.—Subject to sub7 section (b), the Secretary of the Army may convey to the

8 Hall County, Nebraska, Board of Supervisors (in this sec9 tion referred to as the ‘‘Board’’), or the designee of the

10 Board, all right, title and interest of the United States

11 in and to the real property, together with any improve12 ments thereon, located in Hall County, Nebraska, the site

13 of the Cornhusker Army Ammunition Plant.

14 (b) REQUIREMENT RELATING TO CONVEYANCE.—

15 The Secretary may not carry out the conveyance author16 ized under subsection (a) until the Secretary completes

17 any environmental restoration required with respect to the

18 property to be conveyed.

19 (c) UTILIZATION OF PROPERTY.—The Board or its

20 designee, as the case may be, shall utilize the real property

21 conveyed under subsection (a) in a manner consistent with

22 the Cornhusker Army Ammunition Plant Reuse Commit23 tee Comprehensive Reuse Plan.

24 (d) CONSIDERATION.—In consideration for the con25 veyance under subsection (a), the Board or its designee,
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•S 2211 PCS

1 as the case may be, shall pay to the United States an

2 amount equal to the fair market value of the real property

3 to be conveyed, as determined by the Secretary.

4 (e) USE OF PROCEEDS.—(1) The Secretary shall de5 posit in the special account established under section

6 204(h)(2) of the Federal Property and Administrative

7 Services Act of 1949 (40 U.S.C. 485(h)) the amount re8 ceived from the Board or its designee under subsection

9 (d).

10 (2) Notwithstanding subparagraph (A) of such sec11 tion 204(h)(2), the Secretary may use the entire amount

12 deposited in the account under paragraph (1) for the pur13 poses set forth in subparagraph (B) of such section

14 204(h)(2).

15 (f) DESCRIPTION OF PROPERTY.—The exact acreage

16 and legal description of the property conveyed under this

17 section shall be determined by a survey satisfactory to the

18 Secretary. The cost of the survey shall be borne by the

19 Board or its designee, as the case may be.

20 (g) ADDITIONAL TERMS AND CONDITIONS.—The

21 Secretary may require such additional terms and condi22 tions in connection with the conveyance under this section

23 as the Secretary considers appropriate to protect the inter24 ests of the United States.
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1 SEC. 2827. TRANSFER OR CONVEYANCE OF CERTAIN PAR2 CELS OF PROPERTY THROUGH GENERAL

3 SERVICES ADMINISTRATION.

4 (a) IN GENERAL.—(1) Subject to paragraph (2), the

5 Administrator of General Services shall—

6 (A) transfer jurisdiction over all or a portion of

7 a parcel of real property described in subsection (b)

8 to another executive agency if the Administrator de9 termines under subsection (c) that the transfer of

10 jurisdiction to the agency is appropriate;

11 (B) convey all or a portion of such a parcel to

12 a State or local government or nonprofit organiza13 tion if the Administrator determines under sub14 section (d) that the conveyance to the government or

15 organization is appropriate; or

16 (C) convey all or a portion of such a parcel to

17 the entity specified to receive the conveyance under

18 subsection (e) in accordance with that subsection.

19 (2) The Administrator shall carry out an action re20 ferred to in subparagraph (A), (B), or (C) of paragraph

21 (1) only upon direction by the Secretary of Defense. The

22 Secretary shall make the direction, if at all, in accordance

23 with subsection (g).

24 (3) Upon the direction of the Secretary of Defense,

25 the Secretary of the military department concerned shall

26 transfer jurisdiction over an appropriate portion of a par-
314

•S 2211 PCS

1 cel of real property referred to in paragraph (1) to the

2 Administrator in order to permit the Administrator to

3 carry out the transfer of jurisdiction over or conveyance

4 of the portion of the parcel under this section.

5 (b) COVERED PROPERTY.—(1) The parcels of real

6 property referred to in subsection (a)(1) are the following:

7 (A) A parcel of real property, including any im8 provements thereon, consisting of approximately 337

9 acres and located in Tulsa, Oklahoma, the location

10 of Air Force Plant No. 3.

11 (B) A parcel of real property, including any im12 provements thereon, consisting of approximately

13 2,900 acres and located in Calverton, New York, the

14 location of the Naval Weapons Industrial Reserve

15 Plant.

16 (C) A parcel of real property, including any im17 provements thereon, located in Johnson City

18 (Westover), New York, the location of Air Force

19 Plant No. 59.

20 (D) A parcel of real property, including any im21 provements thereon, consisting of approximately 4

22 acres and located in Dickinson, North Dakota, the

23 location of a support complex, recreational facilities,

24 and housing facilities for the Radar Bomb Scoring

25 Site, Dickinson, North Dakota.
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•S 2211 PCS

1 (E) A parcel of real property, including any im2 provements thereon, consisting of approximately 12

3 acres and located west of Finley, North Dakota, the

4 location of a support complex, recreational facilities,

5 and housing facilities for the Finley Air Force Sta6 tion and Radar Bomb Scoring Site, Finley, North

7 Dakota.

8 (2) The exact acreage and legal description of the real

9 property referred to in paragraph (1) that is transferred

10 or conveyed under this section shall be determined by a

11 survey satisfactory to the Secretary of the military depart12 ment concerned. The cost of the survey shall be borne by

13 the Secretary concerned. The transferee or conveyee, if

14 any, of the property under this section shall reimburse the

15 Secretary concerned for the cost borne by that Secretary

16 for the survey of the property.

17 (c) DETERMINATION OF TRANSFEREES.—(1) Subject

18 to subsection (a)(2), the Administrator shall transfer ju19 risdiction over all or a portion of a parcel of real property

20 referred to in subsection (b)(1) to an executive agency if

21 the Administrator determines under this subsection that

22 the transfer is appropriate.

23 (2) Not later than 5 days after the date of the enact24 ment of this Act, the Administrator shall inform the heads
316

•S 2211 PCS

1 of the executive agencies of the availability of the parcels

2 of real property referred to in subsection (b)(1).

3 (3) The head of an executive agency having an inter4 est in obtaining jurisdiction over any portion of a parcel

5 of real property referred to in paragraph (2) shall notify

6 the Administrator, in writing, of the interest within such

7 time as the Administrator shall specify with respect to the

8 parcel in order to permit the Administrator to determine

9 under paragraph (4) whether the transfer of jurisdiction

10 to the agency is appropriate.

11 (4)(A) The Administrator shall—

12 (i) evaluate in accordance with section 202(a)

13 of the Federal Property and Administrative Services

14 Act of 1949 (40 U.S.C. 483(a)) the notifications of

15 interest, if any, received under paragraph (3) with

16 respect to a parcel of real property; and

17 (ii) determine in accordance with that section

18 the executive agency, if any, to which the transfer of

19 jurisdiction is appropriate.

20 (B) The Administrator shall complete the determina21 tion under subparagraph (A) with respect to a parcel not

22 later than 30 days after informing the heads of the execu23 tive agencies of the availability of the parcel.

24 (d) DETERMINATION OF CONVEYEES.—(1) Subject

25 to subsection (a)(2), the Administrator shall convey all
317

•S 2211 PCS

1 right, title, and interest of the United States in and to

2 all or a portion of a parcel of real property referred to

3 in paragraph (2) to a government or organization referred

4 to in paragraph (3) if the Administrator determines under

5 this subsection that the conveyance is appropriate.

6 (2) Paragraph (2) applies to any portion of a parcel

7 of real property referred to in subsection (b)(1)—

8 (A) for which the Administrator receives no no9 tification of interest from the head of an executive

10 agency under subsection (c); or

11 (B) with respect to which the Administrator de12 termines under paragraph (4)(B) of that subsection

13 that a transfer of jurisdiction under this section

14 would not be appropriate.

15 (3)(A) In the case of the property referred to in para16 graph (2), the governments and organizations referred to

17 in that paragraph are the following:

18 (i) The State government of the State in which

19 the property is located.

20 (ii) Local governments affected (as determined

21 by the Administrator) by operations of the Depart22 ment of Defense at the property.

23 (iii) Nonprofit organizations located in the vi24 cinity of the property and eligible under Federal law
318

•S 2211 PCS

1 to be supported through the use of Federal surplus

2 real property.

3 (B) In this paragraph, the term ‘‘nonprofit organiza4 tion’’ means any organization listed in subsection (c)(3)

5 of section 501 of the Internal Revenue Code of 1986 (26

6 U.S.C. 501) that is exempt from taxation under sub7 section (a) of that section.

8 (4) Not later than 5 days after completing the deter9 mination under subsection (c)(4)(B), the Administrator

10 shall determine what, if any, parcels of property referred

11 to in subsection (b)(1) are available for conveyance under

12 this subsection and shall inform the appropriate govern13 ments and organizations of the availability of the parcels

14 for conveyance under this section.

15 (5) A government or organization referred to in para16 graph (4) shall notify the Administrator, in writing, of the

17 interest of the government or organization, as the case

18 may be, in the conveyance of all or a portion of the parcel

19 of real property concerned to the government or organiza20 tion. The government or organization shall notify the Ad21 ministrator within such time as the Administrator shall

22 specify with respect to the parcel in order to permit the

23 Administrator to determine under paragraph (6) whether

24 the conveyance of the parcel to the government or organi25 zation, as the case may be, is appropriate.
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•S 2211 PCS

1 (6)(A) The Administrator shall—

2 (i) evaluate in accordance with section 203 of

3 the Federal Property and Administrative Services

4 Act of 1949 (40 U.S.C. 484) the notifications, if

5 any, received under paragraph (5) with respect to a

6 parcel of real property; and

7 (ii) determine in accordance with that section

8 the government or organization, if any, to which the

9 conveyance is appropriate.

10 (B) The Administrator shall complete the determina11 tion under subparagraph (A) with respect to a parcel not

12 later than 70 days after notifying the governments and

13 organizations concerned of the availability of the parcel

14 for conveyance.

15 (e) ADDITIONAL CONVEYANCE AUTHORITY.—(1)

16 Subject to subsection (g)(2), the Administrator shall, in

17 lieu of transferring jurisdiction over or conveying the par18 cels of real property referred to in subsection (b)(1) in

19 accordance with subsections (c) and (d), convey all or a

20 portion of such parcels as follows:

21 (A) In the case of the parcel referred to in sub22 paragraph (A) of subsection (b)(1), by conveying

23 without consideration all right, title, and interest of

24 the United States in and to the parcel to the City

25 of Tulsa, Oklahoma.
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•S 2211 PCS

1 (B) In the case of the parcel referred to in sub2 paragraph (B) of that subsection, by conveying with3 out consideration all right, title, and interest of the

4 United States in and to the parcel to any economic

5 development authority that the Governor of New

6 York determines appropriate and identifies as such

7 for the Administrator.

8 (C) In the case of the parcel referred to in sub9 paragraph (C) of that subsection, by conveying with10 out consideration all right, title, and interest of the

11 United States in and to the parcel to the Broome

12 County Industrial Development Authority.

13 (D) In the case of the parcel referred to in sub14 paragraph (D) of that subsection, by conveying with15 out consideration all right, title, and interest of the

16 United States in and to the parcel to the North Da17 kota Board of Higher Education.

18 (E) In the case of the parcel referred to in sub19 paragraph (E) of that subsection, by conveying with20 out consideration all right, title, and interest of the

21 United States in and to the parcel to the City of

22 Finley, North Dakota.

23 (2) The Administrator may require such additional

24 terms and conditions in connection with a conveyance

25 under this subsection as the Administrator and the Sec-
321

•S 2211 PCS

1 retary of Defense jointly consider appropriate to protect

2 the interests of the United States.

3 (f) REPORT BY ADMINISTRATOR.—(1) Not later than

4 125 days after the date of the enactment of this Act, the

5 Administrator shall submit to the Committees on Armed

6 Services of the Senate and House of Representatives and

7 to the Secretary of Defense a report on the activities of

8 the Administrator under this section.

9 (2) The report shall include with respect to each par10 cel of real property referred to in subsection (b)(1) the

11 following information:

12 (A) The interest, if any, for all or a portion of

13 the parcel that was expressed by executive agencies

14 under subsection (c) or by governments or nonprofit

15 organizations under subsection (d).

16 (B) The use, if any, proposed for the portion of

17 the parcel under each expression of interest.

18 (C) The determination of the Administrator

19 whether a transfer or conveyance of all or a portion

20 of the parcel, as the case may be, to the agency, gov21 ernment, or organization was appropriate.

22 (D) The other disposal options, if any, that the

23 Administrator has identified for the parcel.

24 (E) Any other matters that the Administrator

25 considers appropriate.
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1 (g) DESIGNATION OF AUTHORITY TO BE USED.—(1)

2 If the Administrator submits the report required under

3 subsection (f) within the time specified in that subsection,

4 the Secretary of Defense may direct the Administrator

5 under subsection (a)(2) to carry out the transfer or con6 veyance under subsection (c) or (d) of all or a portion of

7 a parcel of property referred to in subsection (b)(1) in ac8 cordance with the determinations made by the Adminis9 trator with respect to the transfer or conveyance of the

10 parcel under subsection (c) or (d), respectively.

11 (2) If the Administrator does not submit the report

12 required under subsection (f) within the time specified in

13 that subsection, the Secretary may direct the Adminis14 trator to carry out the conveyances of the parcels of prop15 erty that are authorized under subsection (e) in accord16 ance with such subsection (e).

17 Subtitle D—Changes to Existing

18 Land Transaction Authority

19 SEC. 2831. MODIFICATIONS OF LAND CONVEYANCE, FORT

20 A.P. HILL MILITARY RESERVATION, VIRGINIA.

21 (a) PARTICIPATION OF ADDITIONAL POLITICAL SUB22 DIVISIONS IN REGIONAL CORRECTIONAL FACILITY.—Sub23 paragraph (B) of subsection (c)(3) of section 603 of the

24 Persian Gulf Conflict Supplemental Authorization and
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1 Personnel Benefits Act of 1991 (Public Law 102–25; 105

2 Stat. 108) is amended to read as follows:

3 ‘‘(B) Subparagraph (A) shall not be construed to pro4 hibit any political subdivision not named in such subpara5 graph from—

6 ‘‘(i) participating initially in the written agree7 ment referred to in paragraph (2); or

8 ‘‘(ii) agreeing at a later date to participate as

9 a member of the governmental entity referred to in

10 paragraph (2)(A), or by contract with such entity, in

11 the construction or operation of the regional facility

12 to be constructed on the parcel of land conveyed

13 under this section.’’.

14 (b) TIME FOR CONSTRUCTION AND OPERATION OF

15 CORRECTIONAL FACILITY.—(1) Subsection (d)(1)(A)(i) of

16 such section is amended by striking out ‘‘not later than

17 24 months after the date of the enactment of this Act’’

18 and inserting in lieu thereof ‘‘not later than April 1,

19 1997’’.

20 (2) The Secretary of the Army shall provide the recip21 ient of the conveyance of property under section 603 of

22 such Act with such legal instrument as is appropriate to

23 modify, in accordance with the amendment made by para24 graph (1), any statement of conditions contained in any

25 existing instrument which conveyed the property to that
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1 recipient. The Secretary shall record the instrument in the

2 appropriate office or officers of the Commonwealth of Vir3 ginia or political subdivision within the Commonwealth.

4 SEC. 2832. MODIFICATION OF CONVEYANCE OF ELEC5 TRICITY DISTRIBUTION SYSTEM, FORT DIX,

6 NEW JERSEY.

7 Section 2846 of the Military Construction Authoriza8 tion Act for Fiscal Year 1994 (division B of Public Law

9 103–160; 107 Stat. 1904) is amended—

10 (1) by striking out subsection (f); and

11 (2) by redesignating subsections (g) and (h) as

12 subsections (f) and (g), respectively.

13 SEC. 2833. MODIFICATION OF LAND CONVEYANCE, FORT

14 KNOX, KENTUCKY.

15 Section 2816 of the Military Construction Authoriza16 tion Act for Fiscal Years 1990 and 1991 (division B of

17 Public Law 101–189; 103 Stat. 1655) is amended—

18 (1) in subsection (c), by striking out ‘‘for the

19 construction of up to four units of military family

20 housing at Fort Knox, Kentucky’’ and inserting in

21 lieu thereof ‘‘for improvements to military family

22 housing at Fort Knox, Kentucky, in an amount not

23 to exceed $255,000’’;

24 (2) by striking out subsection (d); and
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1 (3) by redesignating subsections (e) and (f) as

2 subsections (d) and (e), respectively.

3 SEC. 2834. PRESERVATION OF CALVERTON PINE BARRENS,

4 NAVAL WEAPONS INDUSTRIAL RESERVE

5 PLANT, NEW YORK, AS NATURE PRESERVE.

6 (a) PRESERVATION AS NATURE PRESERVE RE7 QUIRED.—Section 2854 of the Military Construction Au8 thorization Act for Fiscal Year 1993 (division B of Public

9 Law 102–484; 106 Stat. 2626) is amended—

10 (1) by redesignating subsections (a) and (b) as

11 subsections (c) and (d); and

12 (2) by inserting before subsection (c), as so re13 designated, the following new subsections (a) and

14 (b):

15 ‘‘(a) PURPOSE.—It is the purpose of this section to

16 ensure that the Calverton Pine Barrens is maintained and

17 preserved, in perpetuity, as a nature preserve in its cur18 rent undeveloped state.

19 ‘‘(b) PROHIBITION ON INCONSISTENT DEVELOP20 MENT.—(1) The Secretary of the Navy may not carry out

21 or permit any commercial or residential development of

22 the property referred to in paragraph (2) that is inconsist23 ent with the purpose specified in subsection (a).
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1 ‘‘(2) Paragraph (1) applies to any parcel of real prop2 erty within the Calverton Pine Barrens that is under the

3 jurisdiction of the Secretary.’’.

4 (b) CONFORMING AMENDMENTS.—Subsection (c) of

5 such section, as redesignated by subsection (a)(1), is

6 amended—

7 (1) by striking out ‘‘PROHIBITION.—’’ and in8 serting in lieu thereof ‘‘REVERSIONARY INTER9 EST.—’’; and

10 (2) by striking out ‘‘for commercial purposes’’

11 and all that follows through the period and inserting

12 in lieu thereof ‘‘in a manner inconsistent with the

13 purpose specified in subsection (a) (as determined by

14 the head of the department or agency making the

15 conveyance).’’.

16 Subtitle E—Other Matters

17 SEC. 2841. JOINT CONSTRUCTION CONTRACTING FOR COM18 MISSARIES AND NONAPPROPRIATED FUND

19 INSTRUMENTALITY FACILITIES.

20 (a) SINGLE CONTRACT CONSTRUCTION.—Section

21 2685 of title 10, United States Code, is amended by add22 ing at the end the following new subsection:

23 ‘‘(d)(1) The Secretary of a military department may

24 authorize a nonappropriated fund instrumentality of the

25 United States to enter into a contract for construction of
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1 a shopping mall or similar facility for a commissary store

2 and one or more nonappropriated fund instrumentality ac3 tivities. The Secretary may use the proceeds of adjust4 ments or surcharges authorized by subsection (a) to reim5 burse the nonappropriated fund instrumentality for the

6 portion of the cost of the contract that is attributable to

7 construction of the commissary store or to pay the con8 tractor directly for that portion of such cost.

9 ‘‘(2) In paragraph (1), the term ‘construction’, with

10 respect to a facility, includes acquisition, conversion, ex11 pansion, installation, or other improvement of the facil12 ity.’’.

13 (b) OBLIGATION OF ANTICIPATED PROCEEDS.—Sub14 section (c) of such section is amended by inserting ‘‘or

15 (d)’’ after ‘‘subsection (b)’’ both places it appears.

16 SEC. 2842. NATIONAL GUARD FACILITY CONTRACTS SUB17 JECT TO PERFORMANCE SUPERVISION BY

18 THE ARMY OR THE NAVY.

19 (a) CONTRACTS SUBJECT TO SUPERVISION.—Sub20 section (a) of section 2237 of title 10, United States Code,

21 is amended by striking out ‘‘under any provision’’ and all

22 that follows through ‘‘and (4)’’ and inserting in lieu there23 of ‘‘under section 2233(a)(1)’’.
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1 (b) CONFORMING AMENDMENT.—Subsection (b) of

2 such section is amended by striking out ‘‘or (4)’’ and in3 serting in lieu thereof ‘‘(4), (5), or (6)’’.

4 SEC. 2843. WAIVER OF REPORTING REQUIREMENTS FOR

5 CERTAIN REAL PROPERTY TRANSACTIONS IN

6 THE EVENT OF WAR OR NATIONAL EMER7 GENCY.

8 Section 2662 of title 10, United States Code, is

9 amended by adding at the end the following:

10 ‘‘(g)(1) Subsections (a) and (e) do not apply—

11 ‘‘(A) during a period described in paragraph

12 (2); or

13 ‘‘(B) to transactions described in such sub14 sections that are undertaken to restore Federal Gov15 ernment operations, to provide public assistance or

16 relief, or to restore public order in relation to a

17 major disaster declared in accordance with the Rob18 ert T. Stafford Disaster Relief and Emergency As19 sistance Act (42 U.S.C. 5121 et seq.).

20 ‘‘(2) The periods referred to in paragraph (1)(A) are

21 as follows:

22 ‘‘(A) A period of war declared by Congress.

23 ‘‘(B) A period of national emergency declared

24 by the President in accordance with the National

25 Emergencies Act (50 U.S.C. 1601 et seq.)
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1 ‘‘(3) Not later than 30 days after taking an action

2 for which prior notification would, except for this sub3 section, otherwise be required under subsection (a) or (e),

4 the Secretary of the military department concerned or, in

5 the case of an element of the Department of Defense not

6 within a military department, the Secretary of Defense

7 shall submit to the Committees on Armed Services of the

8 Senate and the House of Representatives a report on the

9 action taken.’’.

10 SEC. 2844. REPORT ON USE OF FUNDS FOR ENVIRON11 MENTAL RESTORATION AT CORNHUSKER

12 ARMY AMMUNITION PLANT, HALL COUNTY,

13 NEBRASKA.

14 (a) REPORT REQUIRED.—The Secretary of the Army

15 shall submit to Congress a report describing the manner

16 in which funds available to the Army for operation and

17 maintenance (including funds in the Defense Environ18 mental Restoration Account established under section

19 2703(a)(1) of title 10, United States Code) will be used

20 by the Secretary for environmental restoration and main21 tenance of the real property that comprises the

22 Cornhusker Army Ammunition Plant, Hall County, Ne23 braska.

24 (b) CONTENTS.—The report shall include the follow25 ing:
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1 (1) The funding plan for environmental restora2 tion at the Cornhusker Army Ammunition Plant.

3 (2) A legal opinion stating whether any portion

4 of the funds to be used for such environmental res5 toration may be used for the repair of the roads at

6 the Plant in order to bring such roads into compli7 ance with applicable State and local public works

8 codes.

9 (3) A survey of the roads at the Plant that

10 identifies which roads, if any, are in need of repair

11 in order to bring the roads at the Plant into compli12 ance with such codes.

13 (4) An estimate of the cost of the repair of the

14 roads referred to in paragraph (3) in order to bring

15 the roads into compliance.

16 (5) An explanation of the purpose, cost, and

17 source of funds for any proposed preservation of

18 documents or other materials relating to the cul19 tural, historical, and natural resources associated

20 with the Plant.

21 (c) SUBMISSION OF REPORT.—The Secretary shall

22 submit the report required by this section not later than

23 May 1, 1995.
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1 SEC. 2845. DEPARTMENT OF DEFENSE LABORATORY REVI2 TALIZATION DEMONSTRATION PROGRAM.

3 (a) PROGRAM REQUIRED.—The Secretary of Defense

4 shall carry out a Department of Defense Laboratory Revi5 talization Demonstration Program. Under the program

6 the Secretary may carry out minor military construction

7 projects in accordance with subsection (b) and other appli8 cable law to improve Department of Defense laboratories

9 covered by the program.

10 (b) INCREASED MAXIMUM AMOUNTS APPLICABLE TO

11 MINOR CONSTRUCTION PROJECTS.—For purpose of any

12 military construction project carried out under the pro13 gram—

14 (1) the amount provided in subsection (a)(1) of

15 section 2805 of title 10, United States Code, shall

16 be deemed to be $3,000,000;

17 (2) the amount provided in subsection (b)(1) of

18 such section shall be deemed to be $1,500,000; and

19 (3) the amount provided in subsection (c)(1) of

20 such section shall be deemed to be $1,000,000.

21 (c) DESIGNATION OF COVERED LABORATORIES.—

22 Not later than 30 days before commencing the program,

23 the Secretary shall designate the Department of Defense

24 laboratories that are to be covered by the program and

25 notify Congress of the laboratories so designated. Only the

26 designated laboratories may be covered by the program.
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1 (d) REPORT.—Not later than September 30, 1998,

2 the Secretary shall submit to Congress a report on the

3 program. The report shall include the Secretary’s conclu4 sions and recommendations regarding the desirability and

5 feasibility of extending the authority set forth in sub6 section (b) to cover all Department of Defense labora7 tories.

8 (e) EXCLUSIVITY OF PROGRAM.—Nothing in this sec9 tion may be construed to limit any other authority pro10 vided by law for any military construction project at a De11 partment of Defense laboratory covered by the program.

12 (f) DEFINITIONS.—In this section:

13 (1) The term ‘‘laboratory’’ includes—

14 (A) a research, engineering, and develop15 ment center;

16 (B) a test and evaluation activity owned,

17 funded, and operated by the Federal Govern18 ment through the Department of Defense; and

19 (C) a supporting facility of a laboratory.

20 (2) The term ‘‘supporting facility’’, with respect

21 to a laboratory, means any building or structure

22 that is used in support of research, development,

23 test, and evaluation at a laboratory.
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1 (3) The term ‘‘Department of Defense labora2 tory’’ does not include a contractor owned labora3 tory.

4 (g) EXPIRATION OF AUTHORITY.—The Secretary

5 may not carry out the program after September 30, 1999.

6 SEC. 2846. AGREEMENTS OF SETTLEMENT FOR RELEASE

7 OF IMPROVEMENTS AT OVERSEAS MILITARY

8 INSTALLATIONS.

9 (a) AGREEMENTS SUBJECT TO OMB REVIEW.—Sub10 section (g) of section 2921 of the Military Construction

11 Authorization Act for Fiscal Year 1991 (division B of

12 Public Law 101–510; 10 U.S.C. 2687 note) is amended

13 by inserting after the first sentence the following: ‘‘The

14 prohibition set forth in the preceding sentence shall apply

15 only to agreements of settlement for improvements having

16 a value in excess of $10,000,000.’’.

17 (b) REPORTS TO CONGRESS.—Such subsection, as

18 amended by subsection (a), is further amended—

19 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary of

20 Defense’’; and

21 (2) by adding at the end the following:

22 ‘‘(2) Each year, the Secretary shall submit to the

23 Committees on Armed Services of the Senate and the

24 House of Representatives a report on each proposed agree25 ment of settlement that was not submitted by the Sec-
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1 retary to the Director of the Office of Management and

2 Budget in the previous year under paragraph (1) because

3 the value of the improvements to be released pursuant to

4 the proposed agreement did not exceed $10,000,000.’’.

5 DIVISION C—DEPARTMENT OF

6 ENERGY NATIONAL SECURITY

7 AUTHORIZATIONS AND

8 OTHER AUTHORIZATIONS

9 TITLE XXXI—DEPARTMENT OF

10 ENERGY NATIONAL SECURITY

11 PROGRAMS

12 Subtitle A—National Security

13 Programs Authorizations

14 SEC. 3101. WEAPONS ACTIVITIES.

15 (a) RESEARCH AND DEVELOPMENT.—Subject to sub16 section (f), funds are hereby authorized to be appropriated

17 to the Department of Energy for fiscal year 1995 for re18 search and development in carrying out weapons activities

19 necessary for national security programs in the amount

20 of $1,187,818,000, to be allocated as follows:

21 (1) For core research and development,

22 $795,551,000, to be allocated as follows:

23 (A) For operating expenses, $649,341,000.

24 (B) For capital equipment, $69,420,000.
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1 (C) For plant projects (including mainte2 nance, restoration, planning, construction, ac3 quisition, modification of facilities, and the con4 tinuation of projects authorized in prior years,

5 and land acquisition related thereto),

6 $76,790,000, to be allocated as follows:

7 Project GPD–101, general plant

8 projects, various locations, $8,500,000.

9 Project 95–D–102, Chemical and

10 Metallurgy Research Building upgrades,

11 Los Alamos National Laboratory, New

12 Mexico, $3,300,000.

13 Project 94–D–102, nuclear weapons

14 research, development, and testing facili15 ties revitalization, Phase V, various loca16 tions, $13,000,000.

17 Project 92–D–102, nuclear weapons

18 research, development, and testing facili19 ties revitalization, Phase IV, various loca20 tions, $21,810,000.

21 Project 90–D–102, nuclear weapons

22 research, development, and testing facili23 ties revitalization, Phase III, various loca24 tions, $7,700,000.
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1 Project 88–D–106, nuclear weapons

2 research, development, and testing facili3 ties revitalization, Phase II, various loca4 tions, $22,480,000.

5 (2) For inertial fusion, $176,473,000, to be al6 located as follows:

7 (A) For operating expenses, $166,755,000.

8 (B) For capital equipment, $9,718,000.

9 (3) For technology transfer, $215,794,000, to

10 be allocated as follows:

11 (A) For operating expenses, $209,794,000.

12 (B) For capital equipment, $6,000,000.

13 (b) TESTING.—Subject to subsection (f), funds are

14 hereby authorized to be appropriated to the Department

15 of Energy for fiscal year 1995 for testing in carrying out

16 weapons activities necessary for national security pro17 grams in the amount of $384,719,000, to be allocated as

18 follows:

19 (1) For testing capabilities and readiness

20 $374,719,000, to be allocated as follows:

21 (A) For operating expenses, $338,249,000.

22 (B) For capital equipment, $15,470,000.

23 (C) For plant projects (including mainte24 nance, restoration, planning, construction, ac25 quisition, modification of facilities, and the con-
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1 tinuation of projects authorized in prior years,

2 and land acquisition related thereto),

3 $21,000,000, to be allocated as follows:

4 Project GPD–101, general plant

5 projects, various locations, $4,000,000.

6 Project 93–D–102, Nevada support

7 facility, North Las Vegas, Nevada,

8 $17,000,000.

9 (2) For operating expenses for solar energy de10 velopment, $10,000,000.

11 (c) STOCKPILE SUPPORT.—Subject to subsection (f),

12 funds are hereby authorized to be appropriated to the De13 partment of Energy for fiscal year 1995 for stockpile sup14 port in carrying out weapons activities necessary for na15 tional security programs in the amount of

16 $1,557,085,000, to be allocated as follows:

17 (1) For operating expenses for stockpile sup18 port, $1,487,085,000.

19 (2) For capital equipment, $15,880,000.

20 (3) For plant projects (including maintenance,

21 restoration, planning, construction, acquisition,

22 modification of facilities, and the continuation of

23 projects authorized in prior years, and land acquisi24 tion related thereto), $54,120,000, to be allocated as

25 follows:
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1 Project GPD–121, general plant projects,

2 various locations, $1,000,000.

3 Project 95–D–122, sanitary sewer upgrade

4 Oak Ridge Y-12 Plant, Oak Ridge, Tennessee,

5 $2,200,000.

6 Project 95–D–123, replace transportation

7 safeguards, aviation facility, Albuquerque, New

8 Mexico, $2,000,000.

9 Project 94–D–124, hydrogen fluoride sup10 ply system, Oak Ridge Y–12 Plant, Oak Ridge,

11 Tennessee, $6,300,000.

12 Project 94–D–125, upgrade life safety,

13 Kansas City Plant, Kansas City, Missouri,

14 $1,000,000.

15 Project 94–D–127, emergency notification

16 system, Pantex Plant, Amarillo, Texas,

17 $1,000,000.

18 Project 94–D–128, environmental safety

19 and health analytical laboratory, Pantex Plant,

20 Amarillo, Texas, $1,000,000.

21 Project 93–D–122, life safety upgrades,

22 Y–12 Plant, Oak Ridge, Tennessee,

23 $5,000,000.
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1 Project 88–D–122, facilities capability as2 surance program, various locations,

3 $19,620,000.

4 Project 88–D–123, security enhancements,

5 Pantex Plant, Amarillo, Texas, $15,000,000.

6 (d) PROGRAM DIRECTION.—Subject to subsection (f),

7 funds are hereby authorized to be appropriated to the De8 partment of Energy for fiscal year 1995 for program di9 rection in carrying out weapons activities necessary for na10 tional security programs in the amount of $169,852,000,

11 to be allocated as follows:

12 (1) For operating expenses for weapons pro13 gram direction, $167,498,000.

14 (2) For capital equipment, $2,354,000.

15 (e) RECONFIGURATION.—Subject to subsection (f),

16 funds are hereby authorized to be appropriated to the De17 partment of Energy for fiscal year 1995 for nuclear weap18 ons complex reconfiguration in carrying out weapons ac19 tivities necessary for national security programs in the

20 amount of $152,271,000, to be allocated as follows:

21 (1) For operating expenses for reconfiguration,

22 $94,271,000.

23 (2) For plant projects (including maintenance,

24 restoration, planning, construction, acquisition,

25 modification of facilities, and the continuation of
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1 projects authorized in prior years, and land acquisi2 tion related thereto), $58,000,000, all of which to be

3 allocated as follows:

4 Project 93–D–123, complex-21, various lo5 cations.

6 (f) ADJUSTMENTS.—Subject to section 3105, the

7 total amount authorized to be appropriated pursuant to

8 this section is the sum of the amounts authorized to be

9 appropriated in subsections (a) through (e) reduced by the

10 sum of—

11 (1) $131,077,000, for use of prior year bal12 ances; and

13 (2) $11,000,000, for savings resulting from

14 procurement reform.

15 SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE

16 MANAGEMENT.

17 (a) CORRECTIVE ACTIVITIES.—Subject to subsection

18 (h), funds are hereby authorized to be appropriated to the

19 Department of Energy for fiscal year 1995 for corrective

20 activities in carrying out environmental restoration and

21 waste management activities necessary for national secu22 rity programs in the amount of $1,012,000, all of which

23 to be allocated to a plant project (including maintenance,

24 restoration, planning, construction, acquisition, modifica25 tion of facilities, and the continuation of projects author-
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1 ized in prior years, and land acquisition related thereto)

2 as follows:

3 Project 92–D–403, tank upgrades project, Law4 rence Livermore National Laboratory, California.

5 (b) ENVIRONMENTAL RESTORATION.—(1) Subject to

6 paragraph (2), funds are hereby authorized to be appro7 priated to the Department of Energy for fiscal year 1995

8 for environmental restoration for operating expenses in

9 carrying out environmental restoration and waste manage10 ment activities necessary for national security programs

11 in the amount of $1,531,969,000.

12 (2) Subject to subsection (h), the amount authorized

13 to be appropriated pursuant to this subsection is the

14 amount authorized to be appropriated in paragraph (1)

15 reduced by $133,900,000, as a result of the productivity

16 savings initiative.

17 (c) WASTE MANAGEMENT.—(1) Subject to paragraph

18 (2), funds are hereby authorized to be appropriated to the

19 Department of Energy for fiscal year 1995 for waste man20 agement in carrying out environmental restoration and

21 waste management activities necessary for national secu22 rity programs in the amount of $2,913,045,000, to be allo23 cated as follows:

24 (A) For operating expenses, $2,408,029,000.

25 (B) For capital equipment, $104,790,000.
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1 (C) For plant projects (including maintenance,

2 restoration, planning, construction, acquisition,

3 modification of facilities, and the continuation of

4 projects authorized in prior years, and land acquisi5 tion related thereto), $400,226,000, to be allocated

6 as follows:

7 Project GPD–171, general plant projects,

8 various locations, $23,742,000.

9 Project 95–D–401, radiological support fa10 cilities, Richland, Washington, $1,585,000.

11 Project 95–D–402, install permanent elec12 trical service, Waste Isolation Pilot Plant, New

13 Mexico, $700,000.

14 Project 95–D–403, hazardous waste stor15 age facility, Mound Plant, Miamisburg, Ohio,

16 $597,000.

17 Project 95–D–405, industrial landfill V

18 and construction demolition landfill VII, Oak

19 Ridge Y–12 Plant, Oak Ridge, Tennessee,

20 $1,000,000.

21 Project 95–D–406, road 5–01 reconstruc22 tion, area 5, Nevada Test Site, Nevada,

23 $2,338,000.
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1 Project 95–D–407, 219-S secondary con2 tainment upgrade, Richland, Washington,

3 $2,000,000.

4 Project 95–D–408, Phase II liquid effluent

5 treatment and disposal, Richland, Washington,

6 $7,100,000.

7 Project 94–D–400, high explosive

8 wastewater treatment system, Los Alamos Na9 tional Laboratory, Los Alamos, New Mexico,

10 $1,000,000.

11 Project 94–D–402, liquid waste treatment

12 system, Nevada Test Site, Nevada, $3,292,000.

13 Project 94–D–404, Melton Valley storage

14 tank capacity increase, Oak Ridge National

15 Laboratory, Oak Ridge, Tennessee,

16 $21,373,000.

17 Project 94–D–406, low-level waste disposal

18 facilities, K–25, Oak Ridge, Tennessee,

19 $6,000,000.

20 Project 94–D–407, initial tank retrieval

21 systems, Richland, Washington, $17,700,000.

22 Project 94–D–408, office facilities—200

23 East, Richland, Washington, $4,000,000.

24 Project 94–D–411, solid waste operation

25 complex, Richland, Washington, $42,200,000.
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1 Project 94–D–416, solvent storage tanks

2 installation, Savannah River, South Carolina,

3 $1,700,000.

4 Project 94–D–417, intermediate-level and

5 low-activity waste vaults, Savannah River,

6 South Carolina, $300,000.

7 Project 93–D–174, plant drain waste

8 water treatment upgrades, Y–12 Plant, Oak

9 Ridge, Tennessee, $1,400,000.

10 Project 93–D–178, building 374 liquid

11 waste treatment facility, Rocky Flats, Golden,

12 Colorado, $3,300,000.

13 Project 93–D–181, radioactive liquid waste

14 line replacement, Richland, Washington,

15 $3,300,000.

16 Project 93–D–182, replacement of cross17 site transfer system, Richland, Washington,

18 $18,910,000.

19 Project 93–D–183, multi-tank waste stor20 age facility, Richland, Washington,

21 $95,305,000.

22 Project 93–D–187, high-level waste re23 moval from filled waste tanks, Savannah River,

24 Aiken, South Carolina, $26,525,000.
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1 Project 92–D–177, tank 101–AZ waste re2 trieval system, Richland, Washington,

3 $5,000,000.

4 Project 92–D–188, waste management

5 ES&H, and compliance activities, various loca6 tions, $2,846,000.

7 Project 91–D–171, waste receiving and

8 processing facility, module 1, Richland, Wash9 ington, $3,995,000.

10 Project 90–D–172, aging waste transfer

11 line, Richland, Washington, $3,819,000.

12 Project 90–D–177, RWMC transuranic

13 (TRU) waste characterization and storage facil14 ity, Idaho National Engineering Laboratory,

15 Idaho, $11,747,000.

16 Project 90–D–178, TSA retrieval contain17 ment building, Idaho National Engineering

18 Laboratory, Idaho, $7,594,000.

19 Project 89–D–173, tank farm ventilation

20 upgrade, Richland, Washington, $800,000.

21 Project 89–D–174, replacement high-level

22 waste evaporator, Savannah River, South Caro23 lina, $18,000,000.
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1 Project 89–D–175, hazardous waste/mixed

2 waste disposal facility, Savannah River, South

3 Carolina, $500,000.

4 Project 86–D–103, decontamination and

5 waste treatment facility, Lawrence Livermore

6 National Laboratory, California, $9,500,000.

7 Project 83–D–148, nonradioactive hazard8 ous waste management, Savannah River, South

9 Carolina, $6,000,000.

10 Project 81–T–105, defense waste process11 ing facility, Savannah River, South Carolina,

12 $45,058,000.

13 (2) Subject to subsection (h), the total amount au14 thorized to be appropriated pursuant to this subsection is

15 the sum of the amounts authorized to be appropriated in

16 paragraph (1) reduced by $160,800,000, as a result of the

17 productivity savings initiative.

18 (d) TECHNOLOGY DEVELOPMENT.—Subject to sub19 section (h), funds are hereby authorized to be appro20 priated to the Department of Energy for fiscal year 1995

21 for technology development in carrying out environmental

22 restoration and waste management activities necessary for

23 national security programs in the amount of

24 $426,409,000, to be allocated as follows:

25 (1) For operating expenses, $400,974,000.
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1 (2) For capital equipment, $25,435,000.

2 (e) TRANSPORTATION MANAGEMENT.—Subject to

3 subsection (h), funds are hereby authorized to be appro4 priated to the Department of Energy for fiscal year 1995

5 for transportation management in carrying out environ6 mental restoration and waste management activities nec7 essary for national security programs in the amount of

8 $20,684,000, to be allocated as follows:

9 (1) For operating expenses, $20,240,000.

10 (2) For capital equipment, $444,000.

11 (f) PROGRAM DIRECTION.—Subject to subsection (h),

12 funds are hereby authorized to be appropriated to the De13 partment of Energy for fiscal year 1995 for program di14 rection in carrying out environmental restoration and

15 waste management activities necessary for national secu16 rity programs in the amount of $84,948,000, to be allo17 cated as follows:

18 (1) For operating expenses, $83,748,000.

19 (2) For capital equipment, $1,200,000.

20 (g) FACILITY TRANSITION AND MANAGEMENT.—(1)

21 Subject to paragraph (2), funds are hereby authorized to

22 be appropriated to the Department of Energy for fiscal

23 year 1995 for facility transition and management in carry24 ing out environmental restoration and waste management
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1 activities necessary for national security programs in the

2 amount of $791,857,000, to be allocated as follows:

3 (A) For operating expenses, $681,550,000.

4 (B) For capital equipment, $23,947,000.

5 (C) For plant projects (including maintenance,

6 restoration, planning, construction, acquisition,

7 modification of facilities, and the continuation of

8 projects authorized in prior years, and land acquisi9 tion related thereto), $86,360,000, to be allocated as

10 follows:

11 Project GPD–171, general plant projects,

12 various locations, $20,495,000.

13 Project 95–D–453, primary highway route

14 north of the Wye Barricade, Richland, Wash15 ington, $2,500,000.

16 Project 95–D–454, 324 facility compliance/

17 renovation, Richland, Washington, $1,500,000.

18 Project 95–D–455, Idaho National Engi19 neering Laboratory radio communications up20 grade, Idaho National Engineering Laboratory,

21 Idaho, $1,440,000.

22 Project 95–D–456, security facilities up23 grade, Idaho Chemical Processing Plant, Idaho

24 National Engineering Laboratory, Idaho,

25 $986,000.
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1 Project 94–D–122, underground storage

2 tanks, Rocky Flats, Colorado, $2,500,000.

3 Project 94–D–401, emergency response fa4 cility, Idaho National Engineering Laboratory,

5 Idaho, $5,219,000.

6 Project 94–D–412, 300 area process sewer

7 piping upgrade, Richland, Washington,

8 $7,800,000.

9 Project 94–D–415, medical facilities, Idaho

10 National Engineering Laboratory, Idaho,

11 $4,920,000.

12 Project 94–D–451, infrastructure replace13 ment, Rocky Flats Plant, Golden, Colorado,

14 $10,600,000.

15 Project 93–D–172, electrical upgrade,

16 Idaho National Engineering Laboratory, Idaho,

17 $7,800,000.

18 Project 93–D–184, 325 facility compliance/

19 renovation, Richland, Washington, $1,000,000.

20 Project 93–D–186, 200 area unsecured

21 core area fabrication shop, Richland, Washing22 ton, $4,000,000.

23 Project 92–D–125, master safeguards and

24 security agreement/materials surveillance task
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1 force security upgrades, Rocky Flats Plant,

2 Golden, Colorado, $2,100,000.

3 Project 92–D–181, INEL fire and life

4 safety improvements, Idaho National Engineer5 ing Laboratory, Idaho, $6,000,000.

6 Project 92–D–182, INEL sewer system

7 upgrade, Idaho National Engineering Labora8 tory, Idaho, $1,900,000.

9 Project 92–D–186, steam system rehabili10 tation, Phase II, Richland, Washington,

11 $5,600,000.

12 (2) Subject to subsection (h), the total amount au13 thorized to be appropriated pursuant to this subsection is

14 the sum of the amounts authorized to be appropriated in

15 paragraph (1) reduced by $5,000,000, as a result of the

16 productivity savings initiative.

17 (h) PRIOR YEAR BALANCES.—Subject to section

18 3105, the total amount authorized to be appropriated pur19 suant to this section is the sum of the amounts authorized

20 to be appropriated in subsections (a), (b)(2), (c)(2), (d),

21 (e), (f), and (g)(2) reduced by the sum of—

22 (1) $240,300,000 for use of prior year bal23 ances; and

24 (2) $17,500,000 for savings resulting from pro25 curement reform.
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1 SEC. 3103. NUCLEAR MATERIALS SUPPORT AND OTHER DE2 FENSE PROGRAMS.

3 (a) MATERIALS SUPPORT.—Subject to subsection

4 (d), funds are hereby authorized to be appropriated to the

5 Department of Energy for fiscal year 1995 for materials

6 support in carrying out nuclear materials support nec7 essary for national security programs in the amount of

8 $887,225,000, to be allocated as follows:

9 (1) For reactor operations, $163,634,000.

10 (2) For processing of nuclear materials,

11 $369,468,000.

12 (3) For support services, $167,776,000.

13 (4) For capital equipment, $39,427,000.

14 (5) For plant projects (including maintenance,

15 restoration, planning, construction, acquisition,

16 modification of facilities, and the continuation of

17 projects authorized in prior years, and land acquisi18 tion related thereto), $88,950,000, to be allocated as

19 follows:

20 Project GPD–146, general plant projects,

21 various locations, $21,000,000.

22 Project 95–D–154, health physics site sup23 port facility, Savannah River, South Carolina,

24 $2,000,000.
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1 Project 95–D–155, upgrade site road in2 frastructure, Savannah River, South Carolina,

3 $750,000.

4 Project 95–D–156, radio trunking system,

5 Savannah River, South Carolina, $2,100,000.

6 Project 95–D–157, D–area powerhouse life

7 extension, Savannah River, South Carolina,

8 $4,000,000.

9 Project 95–D–158, disassembly basin up10 grades K, L, and P, Savannah River, South

11 Carolina, $13,000,000.

12 Project 93–D–147, domestic water system

13 upgrade, Phases I and II, Savannah River,

14 South Carolina, $11,300,000.

15 Project 93–D–148, replace high-level drain

16 lines, Savannah River, South Carolina,

17 $2,700,000.

18 Project 93–D–152, environmental modi19 fication for production facilities, Savannah

20 River, South Carolina, $2,900,000.

21 Project 92–D–143, health protection in22 strument calibration facility, Savannah River,

23 South Carolina, $3,000,000.
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1 Project 90–D–149, plantwide fire protec2 tion, Phases I and II, Savannah River, South

3 Carolina, $21,000,000.

4 Project 92–D–150, operations support fa5 cilities, Savannah River, South Carolina,

6 $2,000,000.

7 Project 92–D–153, engineering support fa8 cility, Savannah River, South Carolina,

9 $3,200,000.

10 (6) For program direction, $58,000,000.

11 (b) OTHER DEFENSE PROGRAMS.—Subject to sub12 section (d), funds are hereby authorized to be appro13 priated to the Department of Energy for fiscal year 1995

14 for other defense programs in carrying out defense pro15 grams necessary for national security programs in the

16 amount of $692,204,000, to be allocated as follows:

17 (1) For verification and control technology,

18 $358,102,000, to be allocated as follows:

19 (A) For operating expenses, $342,229,000.

20 (B) For capital equipment, $15,873,000.

21 (2) For nuclear safeguards and security,

22 $85,816,000, to be allocated as follows:

23 (A) For operating expenses, $82,421,000.

24 (B) For capital equipment, $3,395,000.

25 (3) For security investigations, $38,827,000.
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1 (4) For security evaluations, $14,780,000.

2 (5) For the Office of Nuclear Safety,

3 $24,679,000, to be allocated as follows:

4 (A) For operating expenses, $24,629,000.

5 (B) For capital equipment, $50,000.

6 (6) For worker and community transition,

7 $120,000,000.

8 (7) For fissile material control and disposition,

9 $50,000,000.

10 (c) NAVAL REACTORS.—Subject to subsection (d),

11 funds are hereby authorized to be appropriated to the De12 partment of Energy for fiscal year 1995 for naval reactors

13 in carrying out nuclear materials support and other de14 fense programs necessary for national security programs

15 in the amount of $730,651,000, to be allocated as follows:

16 (1) For naval reactors development,

17 $698,651,000, to be allocated as follows:

18 (A) For operating expenses:

19 (i) For plant development,

20 $146,700,000.

21 (ii) For reactor development,

22 $348,951,000.

23 (iii) For reactor operation and evalua24 tion, $136,000,000.
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1 (iv) For program direction,

2 $18,800,000.

3 (B) For capital equipment, $28,200,000.

4 (C) For plant projects (including mainte5 nance, restoration, planning, construction, ac6 quisition, modification of facilities, and the con7 tinuation of projects authorized in prior years,

8 and land acquisition related thereto),

9 $20,000,000, to be allocated as follows:

10 Project GPN–101, general plant

11 projects, various locations, $6,200,000.

12 Project 95–D–200, laboratory systems

13 and hot cell upgrades, various locations,

14 $2,400,000.

15 Project 95–D–201, advanced test re16 actor radioactive waste system upgrades,

17 Idaho National Engineering Laboratory,

18 Idaho, $700,000.

19 Project 93–D–200, engineering serv20 ices facilities, Knolls Atomic Power Lab21 oratory, Niskayuna, New York,

22 $7,900,000.

23 Project 92–D–200, laboratories facili24 ties upgrades, various locations,

25 $2,800,000.
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1 (2) For enrichment materials, for operating ex2 penses, $32,000,000.

3 (d) ADJUSTMENTS.—Subject to section 3105, the

4 total amount that may be appropriated pursuant to this

5 section is the sum of the amounts authorized to be appro6 priated in subsections (a), (b), and (c) reduced by the sum

7 of —

8 (1) $40,000,000, for recovery of overpayment to

9 the Savannah River Pension Fund;

10 (2) $6,500,000, for savings resulting from pro11 curement reform; and

12 (3) $369,700,000, for transfer and use of prior

13 year balances for materials support and other de14 fense programs.

15 SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

16 Funds are hereby authorized to be appropriated to

17 the Department of Energy for fiscal year 1995 for pay18 ment to the Nuclear Waste Fund established in section

19 302(c) of the Nuclear Waste Policy Act of 1982 (42

20 U.S.C. 10222(c)) in the amount of $129,430,000.

21 SEC. 3105. GENERAL REDUCTION IN AUTHORIZATION OF

22 APPROPRIATIONS.

23 The total amount authorized to be appropriated pur24 suant to sections 3101, 3102, 3103, and 3104 is the sum

25 of the amounts authorized to be appropriated in such sec-
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1 tions reduced by $220,000,000 for use of prior year bal2 ances from fiscal year 1994.

3 Subtitle B—Recurring General

4 Provisions

5 SEC. 3121. REPROGRAMMING.

6 (a) NOTICE TO CONGRESS.—(1) Except as otherwise

7 provided in this title—

8 (A) no amount appropriated pursuant to this

9 title may be used for any program in excess of the

10 lesser of—

11 (i) 105 percent of the amount authorized

12 for that program by this title; or

13 (ii) $10,000,000 more than the amount

14 authorized for that program by this title; and

15 (B) no amount appropriated pursuant to this

16 title may be used for any program which has not

17 been presented to, or requested of, the Congress.

18 (2) An action described in paragraph (1) may not be

19 taken until—

20 (A) the Secretary of Energy has submitted to

21 the congressional defense committees a report con22 taining a full and complete statement of the action

23 proposed to be taken and the facts and cir24 cumstances relied upon in support of the proposed

25 action; and
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1 (B) a period of 30 days has elapsed after the

2 date on which the report is received by the commit3 tees.

4 (3) In the computation of the 30-day period under

5 paragraph (2), there shall be excluded any day on which

6 either House of Congress is not in session because of an

7 adjournment of more than 3 calendar days to a day cer8 tain.

9 (b) LIMITATION ON AMOUNT OBLIGATED.—In no

10 event may the total amount of funds obligated pursuant

11 to this title exceed the total amount authorized to be ap12 propriated by this title.

13 SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

14 (a) IN GENERAL.—The Secretary of Energy may

15 carry out any construction project under the general plant

16 projects authorized by this title if the total estimated cost

17 of the construction project does not exceed $2,000,000.

18 (b) REPORT TO CONGRESS.—If, at any time during

19 the construction of any general plant project authorized

20 by this title, the estimated cost of the project is revised

21 because of unforeseen cost variations and the revised cost

22 of the project exceeds $2,000,000, the Secretary shall im23 mediately furnish a complete report to the congressional

24 defense committees explaining the reasons for the cost

25 variation.
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1 SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

2 (a) IN GENERAL.—(1) Except as provided in para3 graph (2), construction on a construction project may not

4 be started or additional obligations incurred in connection

5 with the project above the total estimated cost, whenever

6 the current estimated cost of the construction project,

7 which is authorized by section 3101, 3102, or 3103, or

8 which is in support of national security programs of the

9 Department of Energy and was authorized by any pre10 vious Act, exceeds by more than 25 percent the higher

11 of—

12 (A) the amount authorized for the project; or

13 (B) the amount of the total estimated cost for

14 the project as shown in the most recent budget jus15 tification data submitted to the Congress.

16 (2) An action described in paragraph (1) may be

17 taken if—

18 (A) the Secretary of Energy has submitted to

19 the congressional defense committees a report on the

20 action and the circumstances making such action

21 necessary; and

22 (B) a period of 30 days has elapsed after the

23 date on which the report is received by the commit24 tees.

25 (3) In the computation of the 30-day period under

26 paragraph (2), there shall be excluded any day on which
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1 either House of Congress is not in session because of an

2 adjournment of more than 3 calendar days to a day cer3 tain.

4 (b) EXCEPTION.—Subsection (a) shall not apply to

5 any construction project which has a current estimated

6 cost of less than $5,000,000.

7 SEC. 3124. FUNDS TRANSFER AUTHORITY.

8 The Secretary of Energy may transfer funds appro9 priated pursuant to this title to other agencies of the Fed10 eral Government for the performance of the work for

11 which the funds were appropriated, and funds so trans12 ferred may be merged with the appropriations of the agen13 cy to which the funds are transferred.

14 SEC. 3125. AUTHORITY FOR CONSTRUCTION DESIGN.

15 (a) IN GENERAL.—(1) Within the amounts author16 ized by this title, the Secretary of Energy may carry out

17 advance planning and construction design (including ar18 chitectural and engineering services) in connection with

19 any proposed construction project if the total estimated

20 cost for such planning and design does not exceed

21 $3,000,000.

22 (2) In the case of any project in which the total esti23 mated cost for advance planning and design exceeds

24 $600,000, the Secretary shall notify the congressional de25 fense committees in writing of the details of such project
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1 at least 30 days before any funds are obligated for design

2 services for such project.

3 (b) SPECIFIC AUTHORITY REQUIRED.—In any case

4 in which the total estimated cost for advance planning and

5 construction design in connection with any construction

6 project exceeds $3,000,000, funds for such planning and

7 design must be specifically authorized by law.

8 SEC. 3126. REQUIREMENT FOR COMPLETION OF CONCEP9 TUAL DESIGN TO PRECEDE REQUEST FOR

10 CONSTRUCTION FUNDS.

11 (a) REQUIREMENT.—Before submitting to Congress

12 a request for funds for a construction project that is in

13 support of a national security program of the Department

14 of Energy, the Secretary of Energy shall complete a con15 ceptual design for that project.

16 (b) EXCEPTIONS.—The requirement in subsection (a)

17 does not apply to requests for funds—

18 (1) for the costs of preparing a conceptual de19 sign for a construction project referred to in that

20 subsection; or

21 (2) for emergency planning, design, and con22 struction activities under section 3127.
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1 SEC. 3127. AUTHORITY FOR EMERGENCY PLANNING, DE2 SIGN, AND CONSTRUCTION ACTIVITIES.

3 (a) AUTHORITY.—The Secretary of Energy may use

4 any funds available to the Department of Energy under

5 sections 3101, 3102, and 3103, including those funds au6 thorized to be appropriated for advance planning and con7 struction design, to perform planning, design, and con8 struction activities for any Department of Energy national

9 security program construction project that, as determined

10 by the Secretary, must proceed expeditiously in order to

11 protect public health and safety, meet the needs of na12 tional defense, or protect property.

13 (b) LIMITATION.—The Secretary may not exercise

14 the authority under subsection (a) in the case of any con15 struction project until the Secretary has submitted to the

16 congressional defense committees a report on the activities

17 that the Secretary intends to carry out under this section

18 and the circumstances making such activities necessary.

19 (c) SPECIFIC AUTHORITY.—The requirement of sec20 tion 3125(b) does not apply to emergency planning, de21 sign, and construction activities conducted under this sec22 tion.

23 (d) REPORT.—The Secretary of Energy shall prompt24 ly report to the congressional defense committees any ex25 ercise of authority under this section.
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1 SEC. 3128. FUNDS AVAILABLE FOR ALL NATIONAL SECU2 RITY PROGRAMS OF THE DEPARTMENT OF

3 ENERGY.

4 Subject to the provisions of appropriation Acts and

5 section 3121, amounts appropriated pursuant to this title

6 that are made available for management and support ac7 tivities and for general plant projects are available for use,

8 when necessary, in connection with all national security

9 programs of the Department of Energy.

10 SEC. 3129. AVAILABILITY OF FUNDS.

11 When so specified in an appropriation Act, amounts

12 appropriated for operating expenses, plant projects, and

13 capital equipment may remain available until expended.

14 Subtitle C—Program Authoriza15 tions, Restrictions, and Limita16 tions

17 SEC. 3131. STOCKPILE STEWARDSHIP RECRUITMENT AND

18 TRAINING PROGRAM.

19 (a) CONDUCT OF PROGRAM.—(1) As part of the

20 stockpile stewardship program established pursuant to

21 section 3138 of the National Defense Authorization Act

22 for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

23 1946; 42 U.S.C. 2121 note), the Secretary of Energy shall

24 conduct a stockpile stewardship recruitment and training

25 program at the Sandia National Laboratories, the Law-
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1 rence Livermore National Laboratory, and the Los Ala2 mos National Laboratory.

3 (2) The recruitment and training program shall be

4 conducted in coordination with the Chairman of the Joint

5 Nuclear Weapons Council established by section 179 of

6 title 10, United States Code, and the directors of the lab7 oratories referred to in paragraph (1).

8 (b) SUPPORT OF DUAL-USE PROGRAMS.—(1) As

9 part of the recruitment and training program, the direc10 tors of the laboratories referred to in subsection (a)(1)

11 may employ undergraduate students, graduate students,

12 and postdoctoral fellows to carry out research sponsored

13 by such laboratories for military or nonmilitary dual-use

14 programs related to nuclear weapons stockpile steward15 ship.

16 (2) Of the amounts authorized to be appropriated to

17 the Secretary of Energy pursuant to section 3101(a)(1)

18 for weapons activities for core research and development

19 and allocated by the Secretary for education initiatives,

20 $4,000,000 shall be available for carrying out paragraph

21 (1). The amount available under this paragraph shall be

22 allocated equally among the laboratories referred to in

23 subsection (a)(1).

24 (c) ESTABLISHMENT OF RETIREE CORPS.—As part

25 of the training and recruitment program, the Secretary,
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1 in coordination with the directors of the laboratories re2 ferred to in subsection (a)(1), shall establish for the lab3 oratories a retiree corps of retired scientists who have ex4 pertise in research and development of nuclear weapons.

5 The directors may employ the retired scientists on a part6 time basis to provide appropriate assistance on nuclear

7 weapons issues, to contribute relevant information to be

8 archived, and to help to provide training to other sci9 entists.

10 (d) REPORT.—(1) Not later than February 1, 1995,

11 the Secretary of Energy shall submit to the congressional

12 defense committees a report on the demographic trends

13 of the personnel of the laboratories referred to in sub14 section (a)(1) and on actions taken by the Department

15 of Energy to remedy identified deficiencies in various skill

16 areas.

17 (2) The report shall be prepared in coordination with

18 the Chairman of the Joint Nuclear Weapons Council and

19 the directors of the laboratories. Information included in

20 the report shall be aggregated and compiled into statistical

21 categories.

22 (3) The report shall include the following:

23 (A) An inventory of the weapons-related tasks

24 that the laboratories need to perform to support

25 their nuclear weapons responsibilities.
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1 (B) An inventory of the skills necessary to com2 plete the weapons-related tasks referred to in sub3 paragraph (A).

4 (C) For each laboratory, the number of sci5 entists needed in each skill area to perform such

6 tasks.

7 (D) The number of the scientists providing

8 services in each skill area at each laboratory, stated

9 by age.

10 (E) An assessment of which skill areas are

11 understaffed.

12 (F) The number of scientists entering the weap13 ons program at each laboratory, and their skill

14 areas.

15 (G) The number of full-time equivalent person16 nel with weapon skills, their distribution by skill

17 and, for each such skill, their distribution by age.

18 (H) The number of scientists retiring from the

19 weapons program in the 5- year period ending on

20 the date of the report and the skill areas in which

21 they worked in the year preceding their retirement.

22 (I) Based on the information contained in sub23 paragraphs (A) through (H), a projection of the

24 skills areas that will become understaffed in the five

25 years following the date of the report.
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1 (J) Alternative actions that may be taken to re2 tain and recruit scientists for the weapons programs

3 at the laboratories in order to preserve a sufficient

4 skill base and to fulfill stockpile stewardship respon5 sibilities.

6 (K) Any plans of the Secretary to take any of

7 the alternative actions referred to in subparagraph

8 (J).

9 SEC. 3132. DEFENSE INERTIAL CONFINEMENT FUSION PRO10 GRAM.

11 Of the funds authorized to be appropriated by this

12 title to the Department of Energy for fiscal year 1995,

13 $176,473,000 shall be available for the defense inertial

14 confinement fusion program.

15 SEC. 3133. PAYMENT OF PENALTIES.

16 The Secretary of Energy may pay to the Hazardous

17 Substance Superfund established under section 9507 of

18 the Internal Revenue Code of 1986 (26 U.S.C. 9507),

19 from funds appropriated to the Department of Energy for

20 environmental restoration and waste management activi21 ties pursuant to section 3102, stipulated civil penalties as22 sessed under the Comprehensive Environmental Response,

23 Compensation and Liability Act of 1980 (42 U.S.C. 9601

24 et seq.) in amounts as follows:
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1 (1) $50,000, assessed against the Fernald En2 vironmental Management Project, Ohio, under such

3 Act.

4 (2) $50,000, assessed against the Portsmouth

5 Gaseous Diffusion Plant, Ohio, under such Act.

6 SEC. 3134. WATER MANAGEMENT PROGRAMS.

7 From funds authorized to be appropriated pursuant

8 to section 3102 to the Department of Energy for environ9 mental restoration and waste management activities, the

10 Secretary of Energy may reimburse the cities of West11 minster, Broomfield, Thornton, and Northglenn, in the

12 State of Colorado, $11,415,000 for the cost of implement13 ing water management programs. Reimbursements for the

14 water management programs shall not be considered a

15 major Federal action for purposes of section 102(2) of the

16 National Environmental Policy Act of 1969 (42 U.S.C.

17 4332(2)).

18 SEC. 3135. LIMITATION ON USE OF FUNDS FOR SPECIAL AC19 CESS PROGRAMS.

20 Not more than 20 percent of the funds appropriated

21 or otherwise made available to the Department of Energy

22 for fiscal year 1995 pursuant to this title that are avail23 able for limited access programs and special access pro24 gram may be obligated for a limited access program or

25 special access program until the Secretary of Energy sub-
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1 mits to the congressional defense committees the annual

2 reports required to be submitted in that fiscal year under

3 subsections (a) and (b) of section 93 of the Atomic Energy

4 Act of 1954 (42 U.S.C. 2122a).

5 SEC. 3136. PROTECTION OF NUCLEAR WEAPONS FACILI6 TIES WORKERS.

7 Of the funds authorized to be appropriated by section

8 310(2) for environmental restoration and waste manage9 ment activities, $11,000,000 shall be available to carry out

10 activities authorized under section 3131 of the National

11 Defense Authorization Act for Fiscal Years 1992 and

12 1993 (Public Law 102–190; 105 Stat. 1571; 42 U.S.C.

13 7274d), relating to worker protection at nuclear weapons

14 facilities.

15 SEC. 3137. NATIONAL SECURITY PROGRAMS.

16 Notwithstanding any other provision of law, not more

17 than 90 percent of the funds appropriated to the Depart18 ment of Energy for national security programs under this

19 title may be obligated for such programs until the Sec20 retary of Energy submits to the congressional defense

21 committees the five-year budget plan with respect to fiscal

22 year 1995 required under section 3144 of the National

23 Defense Authorization Act for Fiscal Years 1990 and

24 1991 (Public Law 101–189; 103 Stat. 1681; 42 U.S.C.

25 7271b).
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1 SEC. 3138. SCHOLARSHIP AND FELLOWSHIP PROGRAM FOR

2 ENVIRONMENTAL RESTORATION AND WASTE

3 MANAGEMENT.

4 Of the funds authorized to be appropriated to the De5 partment of Energy for fiscal year 1995 for environmental

6 restoration and waste management, $1,000,000 shall be

7 available for the Scholarship and Fellowship Program for

8 Environmental Restoration and Waste Management car9 ried out under section 3123 of the National Defense Au10 thorization Act for Fiscal Years 1992 and 1993 (Public

11 Law 102–190; 105 Stat. 1572; 42 U.S.C. 7274e).

12 SEC. 3139. HAZARDOUS MATERIALS MANAGEMENT AND

13 HAZARDOUS MATERIALS EMERGENCY RE14 SPONSE TRAINING PROGRAM.

15 Of the funds authorized to be appropriated to the De16 partment of Energy for fiscal year 1995 under section

17 3102(d), not more than $14,000,000 shall be available to

18 carry out a hazardous materials management and hazard19 ous materials emergency response training program at

20 Hanford Nuclear Reservation, Richland, Washington.

21 SEC. 3140. PROGRAMS FOR PERSONS WHO MAY HAVE BEEN

22 EXPOSED TO RADIATION RELEASED FROM

23 HANFORD NUCLEAR RESERVATION.

24 (a) FUNDING.—Of the funds authorized to be appro25 priated to the Department of Energy under section 3101

26 for fiscal year 1995, $3,295,591 shall be available for ac-
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1 tivities relating to the Hanford Health Information Net2 work established pursuant to the authority set forth in

3 section 3138 of the National Defense Authorization Act

4 for Fiscal Year 1991 (Public Law 101–510; 104 Stat.

5 1834).

6 (b) LIMITATION ON RELEASE OF CERTAIN PER7 SONAL INFORMATION.—(1) Information referred to in

8 paragraph (2) that is collected from an individual pursu9 ant to operation of the Hanford Health Information Net10 work shall be used only by the Network unless the individ11 ual, or a designated legal representative of the individual,

12 authorizes in writing the use of the information for an13 other purpose.

14 (2) Paragraph (1) applies to the following informa15 tion:

16 (A) The name, address, telephone number, and

17 medical information and records of each individual

18 requesting assistance and information from the Net19 work.

20 (B) Such other information or categories of in21 formation as the chief officers of the health depart22 ments of the States of Washington, Oregon, and

23 Idaho jointly designate as information covered by

24 this subsection.
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1 SEC. 3141. SOLAR ENERGY ACTIVITIES AT NEVADA TEST

2 SITE, NEVADA.

3 Of the funds authorized to be appropriated to the De4 partment of Energy under section 3101, $10,000,000

5 shall be available for development of solar energy at the

6 Nevada Test Site, Nevada.

7 Subtitle D—Other Matters

8 SEC. 3151. ACCOUNTING PROCEDURES FOR DEPARTMENT

9 OF ENERGY FUNDS.

10 (a) IN GENERAL.—The Secretary of Energy shall

11 prescribe procedures to account for the use of funds for

12 the performance of the programs and activities of the De13 partment of Energy for which funds are appropriated for

14 national security programs of the Department of Energy.

15 The procedures shall provide for such accounting for fiscal

16 years beginning after fiscal year 1996.

17 (b) COVERED MATTERS.—The Secretary shall pre18 scribe procedures under subsection (a)—

19 (1) to account for the funds appropriated to the

20 Department for national security programs and ac21 tivities of the Department that are not used for the

22 purpose for which such funds were appropriated;

23 and

24 (2) to provide an accounting for all encumbered

25 funds, unencumbered funds, unobligated funds,
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1 costed funds, and uncosted obligations of the De2 partment in that fiscal year.

3 SEC. 3152. APPROVAL FOR CERTAIN NUCLEAR WEAPONS

4 ACTIVITIES.

5 (a) APPROVAL BY JOINT NUCLEAR WEAPONS COUN6 CIL.—Subsection (d) of section 179 of title 10, United

7 States Code, is amended—

8 (1) by redesignating paragraphs (8) and (9) as

9 paragraphs (9) and (10), respectively; and

10 (2) by inserting after paragraph (7) the follow11 ing new paragraph (8):

12 ‘‘(8) Coordinating and approving activities initi13 ated or conducted by the Department of Energy for

14 the study, development, and production of nuclear

15 warheads, including concept definition studies, fea16 sibility studies, engineering development, hardware

17 component fabrication, warhead production, and

18 warhead retirement.’’.

19 (b) TECHNICAL AMENDMENTS.—Subsections (a)(3)

20 and (b) of such section are amended by striking out ‘‘ap21 pointed’’ each place it appears and inserting in lieu thereof

22 ‘‘designated’’.
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1 SEC. 3153. STUDY OF FEASIBILITY OF CONDUCTING CER2 TAIN ACTIVITIES AT THE NEVADA TEST SITE,

3 NEVADA.

4 Not later than April 1, 1995, the Secretary of Energy

5 shall submit to Congress a report on the feasibility of con6 ducting the following activities at the Nevada Test Site,

7 Nevada:

8 (1) The demilitarization of large rocket motors,

9 high energetic explosives and conventional ordnance.

10 (2) Disarmament and demilitarization of con11 ventional weapons and components, generally.

12 (3) The conduct of experiments that assist in

13 monitoring compliance with international agreements

14 on the nonproliferation of nuclear weapons.

15 (4) The conduct of programs for the Depart16 ment of Energy and the Department of Defense to

17 develop simulator technologies for nuclear weapons

18 design and effects, including advanced hydrodynamic

19 simulators, fusion test facilities, and nuclear weap20 ons effects simulators (such as the Decade and Jupi21 ter simulators).

22 (5) The conduct of the stockpile stewardship

23 program established pursuant to section 3138 of the

24 National Defense Authorization Act for Fiscal Year

25 1994 (42 U.S.C. 2121 note).
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1 (6) Experiments related to the nonproliferation

2 of nuclear weapons, including experiments with re3 spect to disablement of such weapons, nuclear

4 forensics, sensors, and verification and monitoring.

5 SEC. 3154. TRITIUM PRODUCTION.

6 (a) ASSUMPTION OF RESPONSIBILITY FOR PRODUC7 TION.—Notwithstanding any other provision of law, the

8 Defense Nuclear Agency shall, effective October 1, 1995,

9 undertake responsibility for the production of tritium to

10 meet the tritium requirements of the United States after

11 2008.

12 (b) BUDGETARY MATTERS.—(1) The Secretary of

13 Defense shall identify in the defense budget documents

14 submitted to Congress for fiscal year 1996 the amount

15 that the Secretary proposes to make available to the De16 fense Nuclear Agency for that fiscal year in order to fund

17 the activities of the agency undertaken pursuant to sub18 section (a).

19 (2) The amount included in the budget documents

20 shall be the amount that the Secretary determines nec21 essary to ensure that the Defense Nuclear Agency has suf22 ficient resources—

23 (A) to identify and study tritium production

24 technologies necessary to meet the tritium require25 ments of the United States after 2008;
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1 (B) to meet any requirement under Federal law

2 for the preparation of assessments of the affects of

3 the utilization of technologies identified under sub4 paragraph (A) on the environment; and

5 (C) to select a tritium production technology to

6 meet the requirements referred to in that subpara7 graph.

8 (c) DEFENSE BUDGET DOCUMENTS DEFINED.—For

9 purposes of this section, the defense budget documents for

10 fiscal year 1996 are the documents relating to the budget

11 for the Department of Defense for such fiscal year that

12 the Secretary of Defense submits to Congress in support

13 of the budget for fiscal year 1996 that the President sub14 mits to Congress pursuant to section 1105(a) of title 31,

15 United States Code.

16 SEC. 3155. OFFICE OF FISSILE MATERIALS DISPOSITION.

17 (a) ESTABLISHMENT.—Title II of the Department of

18 Energy Organization Act (42 U.S.C. 7131 et seq.) is

19 amended by adding at the end the following:

20 ‘‘OFFICE OF FISSILE MATERIALS DISPOSITION

21 ‘‘SEC. 212. (a) There shall be within the Department

22 an Office of Fissile Materials Disposition.

23 ‘‘(b) The Secretary shall designate the head of the

24 Office. The head of the Office shall report to the Under

25 Secretary.
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1 ‘‘(c) The head of the Office shall be responsible for

2 all activities of the Department relating to the manage3 ment, storage, and disposition of fissile materials from

4 weapons and weapons systems that are excess to the na5 tional security needs of the United States.’’.

6 (b) CONFORMING AMENDMENT.—The table of con7 tents in the first section of such Act is amended by insert8 ing after the item relating to section 210 the following

9 new items:

‘‘Sec. 211. Office of Minority Economic Impact.

‘‘Sec. 212. Office of Fissile Materials Disposition.’’.

10 SEC. 3156. EXTENSION OF AUTHORITY TO LOAN PERSON11 NEL AND FACILITIES AT IDAHO NATIONAL

12 ENGINEERING LABORATORY.

13 Section 1434 of the National Defense Authorization

14 Act, Fiscal Year 1989 (Public Law 100–456; 102 Stat.

15 2074), as amended by section 3136 of the National De16 fense Authorization Act for Fiscal Year 1993 (Public Law

17 102–484; 106 Stat. 2641), is further amended—

18 (1) in the third sentence of subsection (a)(3),

19 by striking out ‘‘fiscal years 1993 and 1994’’ and in20 serting in lieu thereof ‘‘fiscal years 1993, 1994,

21 1995, 1996, and 1997’’; and

22 (2) in subsection (c), by striking out ‘‘Septem23 ber 30, 1994, with respect to the Idaho National

24 Engineering Laboratory’’ and inserting in lieu there-
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1 of ‘‘September 30, 1997, with respect to the Idaho

2 National Engineering Laboratory’’.

3 SEC. 3157. ELIMINATION OF REQUIREMENT FOR FIVE-YEAR

4 PLAN FOR DEFENSE NUCLEAR FACILITIES.

5 Subsection (a) section 3135 of the National Defense

6 Authorization Act for Fiscal Years 1992 and 1993 (Public

7 Law 102–190; 105 Stat. 1575; 42 U.S.C. 7274g(a)) is

8 amended—

9 (1) in paragraph (1)—

10 (A) by striking out ‘‘(A) defense nuclear

11 facilities and (B) all other facilities owned or

12 operated by the Department of Energy’’ in the

13 first sentence and inserting in lieu thereof ‘‘all

14 facilities owned or operated by the Department

15 of Energy except defense nuclear facilities’’;

16 and

17 (B) by inserting ‘‘such’’ in the third sen18 tence after ‘‘restoration at all’’;

19 (2) in paragraph (4), by striking out ‘‘The plan

20 shall contain the following matter:’’ and inserting in

21 lieu thereof ‘‘The plan shall include, with respect to

22 the Department of Energy facilities required by

23 paragraph (1) to be covered by the plan, the follow24 ing matters:’’;

25 (3) by striking out paragraph (6); and
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1 (4) by redesignating paragraph (7) as para2 graph (6).

3 SEC. 3158. INCREASE IN NUMBER OF POSITIONS FOR ENVI4 RONMENTAL RESTORATION AND WASTE MAN5 AGEMENT PERSONNEL EXCEPTED FROM

6 CIVIL SERVICE LAWS.

7 Subsection (d) of section 621 of the Department of

8 Energy Organization Act (42 U.S.C. 7231) is amended

9 to read as follows:

10 ‘‘(d)(1) In addition to the number of positions which

11 may be placed above GS–15 under section 5108 of title

12 5, United States Code, under existing law, or under this

13 Act, and to the extent the Secretary considers necessary

14 to the discharge of the Secretary’s functions, the Secretary

15 may appoint personnel as follows:

16 ‘‘(A) Not more than 350 scientific, engineering,

17 professional, and administrative personnel who shall

18 perform environmental restoration and waste man19 agement functions and safety-related functions at

20 defense nuclear facilities.

21 ‘‘(B) Not more than 200 scientific, engineering,

22 professional, and administrative personnel who shall

23 perform such other functions as the Secretary shall

24 designate.

25 ‘‘(2) The Secretary may—
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1 ‘‘(A) appoint personnel under paragraph (1)

2 without regard to the civil service laws; and

3 ‘‘(B) fix the compensation of such personnel not

4 in excess of the maximum rate payable for positions

5 the rate of basic pay for which is fixed under section

6 5376 of title 5, United States Code.’’.

7 TITLE XXXII—DEFENSE NU8 CLEAR FACILITIES SAFETY

9 BOARD AUTHORIZATION

10 SEC. 3201. AUTHORIZATION.

11 There are authorized to be appropriated for fiscal

12 year 1995, $17,933,000 for the operation of the Defense

13 Nuclear Facilities Safety Board under chapter 21 of the

14 Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.).

15 TITLE XXXIII—NATIONAL

16 DEFENSE STOCKPILE

17 SEC. 3301. DISPOSAL OF OBSOLETE AND EXCESS MATE18 RIALS CONTAINED IN THE NATIONAL DE19 FENSE STOCKPILE.

20 (a) DISPOSAL AUTHORIZED.—Subject to the condi21 tions specified in subsection (b), the President may dis22 pose of obsolete and excess materials currently contained

23 in the National Defense Stockpile in order to modernize

24 the stockpile. The materials subject to disposal under this

25 subsection and the quantity of each material authorized
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1 to be disposed of by the President are set forth in the

2 following table:

Authorized Stockpile Disposals

Material for disposal Quantity

Aluminum ...................................................................................... 62,843 short tons

Tungsten Group ............................................................................. 51,336,478 pounds

of contained tungsten

3 (b) CONDITIONS ON DISPOSAL.—The authority of the

4 President under subsection (a) to dispose of materials

5 stored in the stockpile may not be used unless and until

6 the Secretary of Defense certifies that the disposal of such

7 materials will not adversely affect the capability of the Na8 tional Defense Stockpile to supply the strategic and criti9 cal materials necessary to meet the needs of the United

10 States during a period of national emergency that requires

11 a significant level of mobilization of the economy of the

12 United States, including any reconstitution of the military

13 and industrial capabilities necessary to meet the planning

14 assumptions used by the Secretary of Defense under sec15 tion 14(b) of the Strategic and Critical Materials Stock

16 Piling Act (50 U.S.C. 98h–5(b)).

17 SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

18 Subject to such limitations as may be provided in ap19 propriations Acts, during fiscal year 1995, the National

20 Defense Stockpile Manager may obligate up to

21 $54,200,000 of the funds in the National Defense Stock-
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1 pile Transaction Fund established under subsection (a) of

2 section 9 of the Strategic and Critical Materials Stock Pil3 ing Act (50 U.S.C. 98h) for the authorized uses of such

4 funds under subsection (b)(2) of such section.

5 SEC. 3303. REPEAL OF ADVISORY COMMITTEE REQUIRE6 MENT.

7 Section 3306 of the National Defense Authorization

8 Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat.

9 2652; 50 U.S.C. 98h–1 note) is repealed.

10 SEC. 3304. ROTATION OF MATERIALS TO PREVENT TECHNO11 LOGICAL OBSOLESCENCE.

12 Section 6(a)(4) of the Strategic and Critical Mate13 rials Stock Piling Act (50 U.S.C. 98e(a)(4)) is amended

14 by inserting ‘‘or technological obsolescence’’ after ‘‘dete15 rioration’’.

16 TITLE XXXIV—CIVIL DEFENSE

17 SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

18 There is hereby authorized to be appropriated

19 $129,658,000 for fiscal year 1995 for the purpose of car20 rying out the Federal Civil Defense Act of 1950 (50

21 U.S.C. 2251 et seq.).
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1 TITLE XXXV—PANAMA CANAL

2 COMMISSION

3 SEC. 3501. SHORT TITLE.

4 This title may be cited as the ‘‘Panama Canal Com5 mission Authorization Act for Fiscal Year 1995’’.

6 SEC. 3502. AUTHORIZATION OF EXPENDITURES.

7 (a) IN GENERAL.—Subject to subsection (b), the

8 Panama Canal Commission is authorized to make such ex9 penditures within the limits of funds and borrowing au10 thority available to it in accordance with law, and to make

11 such contracts and commitments without regard to fiscal

12 year limitations, as may be necessary under the Panama

13 Canal Act of 1979 (22 U.S.C. 3601) for the operation,

14 maintenance, and improvement of the Panama Canal for

15 fiscal year 1995.

16 (b) LIMITATIONS.—For fiscal year 1995, the Panama

17 Canal Commission may expend from funds in the Panama

18 Canal Revolving Fund not more than $50,030,000 for ad19 ministrative expenses, of which not more than—

20 (1) $11,000 may be used for official reception

21 and representation expenses of the Supervisory

22 Board of the Commission;

23 (2) $5,000 may be used for official reception

24 and representation expenses of the Secretary of the

25 Commission; and
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1 (3) $30,000 may be used for official reception

2 and representation expenses of the Administrator of

3 the Commission.

4 (c) REPLACEMENT VEHICLES.—Funds available to

5 the Panama Canal Commission shall be available for the

6 purchase of not to exceed 43 passenger motor vehicles (in7 cluding large heavy-duty vehicles to be used to transport

8 Commission personnel across the isthmus of Panama). A

9 vehicle may be purchased with such funds only as nec10 essary to replace another passenger motor vehicle of the

11 Commission. The purchase price of each vehicle may not

12 exceed $19,500.

13 SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER

14 LAWS.

15 Expenditures authorized under this Act may be made

16 only in accordance with the Panama Canal Treaties of

17 1977 and any law of the United States implementing

18 those treaties.

19 SEC. 3504. COSTS OF EDUCATIONAL SERVICES OBTAINED

20 IN THE UNITED STATES.

21 Section 1321(e)(2) of the Panama Canal Act of 1979

22 (22 U.S.C. 3731(e)(2)) is amended by inserting ‘‘or the

23 United States’’ after ‘‘schools in the Republic of Panama’’.
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1 SEC. 3505. SPECIAL IMMIGRANT STATUS OF PANAMANIANS

2 EMPLOYED BY THE UNITED STATES IN THE

3 FORMER CANAL ZONE.

4 Section 101(a)(27)(F) of the Immigration and Na5 tionality Act (8 U.S.C. 1101(a)(27)(F)) is amended in

6 clause (ii) by inserting ‘‘or continues to be employed by

7 the United States Government in an area of the former

8 Canal Zone’’ after ‘‘employment’’.

9 DIVISION D—FEDERAL

10 ACQUISITION STREAMLINING

11 SEC. 40001. SHORT TITLE.

12 This division may be cited as the ‘‘Federal Acquisi13 tion Streamlining Act of 1994’’.

14 TITLE XLI—CONTRACT

15 FORMATION

16 Subtitle A—Competition Statutes

17 PART I—ARMED SERVICES ACQUISITIONS

18 Subpart A—Competition Requirements

19 SEC. 41001. REFERENCES TO FEDERAL ACQUISITION REGU20 LATION.

21 Section 2304 of title 10, United States Code, is

22 amended—

23 (1) in subsection (a)(1)(A), by striking out

24 ‘‘modifications’’ and all that follows through ‘‘note)’’

25 and inserting in lieu thereof ‘‘Federal Acquisition

26 Regulation’’; and
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1 (2) in subsection (g)(1), by striking out ‘‘regu2 lations modified’’ and all that follows through

3 ‘‘note)’’ and inserting in lieu thereof ‘‘Federal Ac4 quisition Regulation’’.

5 SEC. 41002. ESTABLISHMENT OR MAINTENANCE OF ALTER6 NATIVE SOURCES OF SUPPLY.

7 Section 2304(b) of title 10, United States Code, is

8 amended—

9 (1) in paragraph (1)—

10 (A) by striking out ‘‘or’’ at the end of sub11 paragraph (B);

12 (B) by striking out the period at the end

13 of subparagraph (C) and inserting in lieu there14 of a semicolon; and

15 (C) by adding at the end the following new

16 subparagraphs:

17 ‘‘(D) would ensure the continuous availability of

18 a reliable source of supply of such property or serv19 ice;

20 ‘‘(E) would satisfy projected needs for such

21 property or service determined on the basis of a his22 tory of high demand for the property or service; or

23 ‘‘(F) in the case of medical supplies, safety sup24 plies, or emergency supplies, would satisfy a critical

25 need for such supplies.’’;
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1 (2) by redesignating paragraphs (2) and (3) as

2 paragraphs (3) and (4), respectively;

3 (3) by inserting after paragraph (1) the follow4 ing new paragraph (2):

5 ‘‘(2) The determination required of the agency head

6 in paragraph (1) may not be made for a class of purchases

7 or contracts.’’; and

8 (4) in paragraph (4), as redesignated by para9 graph (2), by striking out ‘‘paragraphs (1) and (2)’’

10 and inserting in lieu thereof ‘‘paragraphs (1) and

11 (3)’’.

12 SEC. 41003. CLARIFICATION OF APPROVAL AUTHORITY FOR

13 USE OF PROCEDURES OTHER THAN FULL

14 AND OPEN COMPETITION.

15 Section 2304(f)(1)(B)(i) of title 10, United States

16 Code, is amended by inserting before the semicolon at the

17 end the following: ‘‘or by an official referred to in clause

18 (ii), (iii), or (iv)’’.

19 SEC. 41004. TASK ORDER CONTRACTS FOR ADVISORY AND

20 ASSISTANCE SERVICES.

21 (a) AUTHORITY.—

22 (1) IN GENERAL.—Chapter 137 of title 10,

23 United States Code, is amended by inserting after

24 section 2304 the following new section:
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1 ‘‘§ 2304a. Task order contracts for advisory and as2 sistance services

3 ‘‘(a) AUTHORITY TO AWARD.—(1) Subject to the re4 quirements of this section, the head of an agency may

5 enter into a contract for advisory and assistance services

6 that does not procure or specify a firm quantity of services

7 (other than a minimum or maximum quantity) and that

8 provides for the issuance of task orders during the speci9 fied period of the contract.

10 ‘‘(2) Except as provided in subsection (h), the head

11 of an agency may enter into a contract described in para12 graph (1) only under the authority of this section.

13 ‘‘(b) LIMITATION ON CONTRACT PERIOD.—The pe14 riod of a contract referred to in subsection (a), including

15 all periods of extensions of the contract under options,

16 modifications, or otherwise, may not exceed 5 years unless

17 a longer period is specifically authorized in a law that is

18 applicable to such contract.

19 ‘‘(c) CONTRACT PROCEDURES.—(1) The head of an

20 agency may use procedures other than competitive proce21 dures to enter into a contract referred to in subsection

22 (a) only if an exception in subsection (c) of section 2304

23 of this title applies to the contract and the use of such

24 procedures is approved in accordance with subsection (f)

25 of such section.
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1 ‘‘(2) The notice required by section 18 of the Office

2 of Federal Procurement Policy Act (41 U.S.C. 416) and

3 section 8(e) of the Small Business Act (15 U.S.C. 637(e))

4 shall reasonably and fairly describe the general scope,

5 magnitude, and duration of the proposed contract in a

6 manner that would reasonably enable a potential offeror

7 to decide whether to request the solicitation and consider

8 submitting an offer.

9 ‘‘(3) The solicitation shall include the following:

10 ‘‘(A) The period of the contract, including the

11 number of options to extend the contract and the pe12 riod for which the contract may be extended under

13 each option, if any.

14 ‘‘(B) The maximum quantity or dollar value of

15 services to be procured under the contract.

16 ‘‘(C) A statement of work, specifications, or

17 other description that reasonably describes the gen18 eral scope, nature, complexity, and purposes of the

19 services to be procured under the contract.

20 ‘‘(4)(A) The head of an agency may, on the basis of

21 one solicitation, award separate contracts under this sec22 tion for the same or similar services to two or more

23 sources if the solicitation states that the head of the agen24 cy has the option to do so.
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1 ‘‘(B) If, in the case of a contract for advisory and

2 assistance services to be entered into under the authority

3 of this section, the contract period is to exceed 3 years

4 and the contract amount is estimated to exceed

5 $10,000,000 (including all options), the solicitation

6 shall—

7 ‘‘(i) provide for a multiple award authorized

8 under subparagraph (A); and

9 ‘‘(ii) include a statement that the head of the

10 agency may also elect to award only one contract if

11 the head of the agency determines in writing that

12 only one of the offerers is capable of providing the

13 services required at the level of quality required.

14 ‘‘(C) Subparagraph (B) does not apply in the case

15 of a solicitation for which the head of an agency deter16 mines in writing that, because the services required under

17 the contract are unique or highly specialized, it is not

18 practicable to award more than one contract.

19 ‘‘(5) A contract referred to in subsection (a) shall

20 contain the same information that is required by para21 graph (3) to be included in the solicitation of offers for

22 that contract.

23 ‘‘(d) ORDER PROCEDURES.—(1) The following ac24 tions are not required for a task order issued under a con25 tract entered into in accordance with this section:
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1 ‘‘(A) A separate notice for such order under

2 section 18 of the Office of Federal Procurement Pol3 icy Act (41 U.S.C. 416) or section 8(e) of the Small

4 Business Act (15 U.S.C. 637(e)).

5 ‘‘(B) Except as provided in paragraph (2), a

6 competition (or a waiver of competition approved in

7 accordance with section 2304(f) of this title) that is

8 separate from that used for entering into the con9 tract.

10 ‘‘(2)(A) When multiple contracts are awarded pursu11 ant to subsection (c)(4), all contractors awarded such con12 tracts shall be provided a fair opportunity to be consid13 ered, pursuant to procedures set forth in the contracts,

14 for each task order in excess of $2,500 that is to be issued

15 under any of the contracts unless—

16 ‘‘(i) the agency’s need for the services ordered

17 is of such unusual urgency that competition would

18 result in unacceptable delays in fulfilling the agen19 cy’s needs;

20 ‘‘(ii) only one such contractor is capable of pro21 viding the services required at the level of quality re22 quired because the services ordered are unique or so

23 highly specialized;

24 ‘‘(iii) the task order should be issued on a sole25 source basis in the interest of economy and effi-
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1 ciency because it is a logical follow-on to a task

2 order already issued on a competitive basis; or

3 ‘‘(iv) the order must be placed with a particular

4 contractor in order to satisfy a minimum guarantee.

5 ‘‘(B) When a task order is issued in accordance with

6 subparagraph (A), the order shall include a statement of

7 work that clearly specifies all tasks to be performed under

8 the order.

9 ‘‘(3) A protest is not authorized in connection with

10 the issuance or proposed issuance of a task order except

11 for a protest on the ground that the order increases the

12 scope, period, or maximum value of the contract under

13 which the order is issued.

14 ‘‘(e) INCREASES IN SCOPE, PERIOD, OR MAXIMUM

15 VALUE OF CONTRACT.—(1) A task order may not increase

16 the scope, period, or maximum value of the contract under

17 which the order is issued. The scope, period, or maximum

18 value of the contract may be increased only by modifica19 tion of the contract.

20 ‘‘(2) Unless use of procedures other than competitive

21 procedures is authorized by an exception in subsection (c)

22 of section 2304 of this title and approved in accordance

23 with subsection (f) of such section, competitive procedures

24 shall be used for making such a modification.
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1 ‘‘(3) Notice regarding the modification shall be pro2 vided in accordance with section 18 of the Office of Fed3 eral Procurement Policy Act (41 U.S.C. 416) and section

4 8(e) of the Small Business Act (15 U.S.C. 637(e)).

5 ‘‘(4)(A) Notwithstanding the limitation on the con6 tract period set forth in subsection (b) or in a solicitation

7 or contract pursuant to subsection (c), a contract entered

8 into by the head of an agency under this section may be

9 extended on a sole-source basis for a period not exceeding

10 6 months if the agency head determines that—

11 ‘‘(i) the award of a follow-on contract has been

12 delayed by circumstances that were not reasonably

13 foreseeable at the time the initial contract was en14 tered into; and

15 ‘‘(ii) the extension is necessary in order to en16 sure continuity of the receipt of services pending the

17 award of, and commencement of performance under,

18 the follow-on contract.

19 ‘‘(B) A contract may be extended under the authority

20 of subparagraph (A) only once and only in accordance

21 with the limitations and requirements of this subsection.

22 ‘‘(f) TASK ORDER OMBUDSMAN.—Each head of an

23 agency who awards multiple contracts pursuant to sub24 section (c)(4) shall appoint or designate a task order om25 budsman who shall be responsible for reviewing complaints
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1 from the contractors on such contracts and ensuring that

2 all of the contractors are afforded a fair opportunity to

3 be considered for task orders when required under sub4 section (d)(2). The task order ombudsman shall be a sen5 ior agency official who is independent of the contracting

6 officer for the contracts and may be the agency’s competi7 tion advocate.

8 ‘‘(g) INAPPLICABILITY TO CERTAIN CONTRACTS.—

9 This section does not apply to a contract for the acquisi10 tion of property or services that includes acquisition of ad11 visory and assistance services if the head of an agency en12 tering into such contract determines that, under the con13 tract, advisory and assistance services are necessarily inci14 dent to, and not a significant component of, the contract.

15 ‘‘(h) RELATIONSHIP TO OTHER CONTRACTING AU16 THORITY.—Nothing in this section may be construed to

17 limit the authority of the head of an agency to enter into

18 single or multiple task order contracts, or single or mul19 tiple delivery order contracts, for property or services

20 (other than advisory and assistance services) under other

21 provisions of this chapter or under any other provision of

22 law.

23 ‘‘(i) ADVISORY AND ASSISTANCE SERVICES DE24 FINED.—In this section, the term ‘advisory and assistance
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1 services’ has the meaning given such term in section

2 1105(g) of title 31.’’.

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of such chapter is amended

5 by inserting after the item relating to section 2304

6 the following new item:

‘‘2304a. Task order contracts for advisory and assistance services.’’.

7 (b) REPEAL OF SUPERSEDED PROVISION.—Section

8 2304 of title 10, United States Code, is amended by strik9 ing out subsection (j).

10 (c) CONFORMING AMENDMENT FOR PROFESSIONAL

11 AND TECHNICAL SERVICES.—Section 2331 of title 10,

12 United States Code, is amended by striking out subsection

13 (c).

14 SEC. 41005. ACQUISITION OF EXPERT SERVICES.

15 Section 2304(c)(3) of title 10, United States Code,

16 is amended—

17 (1) by striking out ‘‘or (B)’’ and inserting in

18 lieu thereof ‘‘(B)’’; and

19 (2) by inserting before the semicolon at the end

20 the following: ‘‘, or (C) to procure the services of an

21 expert for use, in any litigation or dispute (including

22 any reasonably foreseeable litigation or dispute) in23 volving the Federal Government, in any trial, hear24 ing, or proceeding before any court, administrative

25 tribunal, or agency, or in any part of an alternative
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1 dispute resolution process, whether or not the expert

2 is expected to testify’’.

3 Subpart B—Planning, Solicitation, Evaluation, and

4 Award

5 SEC. 41011. SOURCE SELECTION FACTORS.

6 Section 2305(a) of title 10, United States Code, is

7 amended—

8 (1) in paragraph (2)—

9 (A) in subparagraph (A)(i), by striking out

10 ‘‘nonprice-related factors)’’ and inserting in lieu

11 thereof ‘‘nonprice-related factors and

12 subfactors)’’; and

13 (B) in subparagraph (B)(ii), by striking

14 out subclause (I) and inserting in lieu thereof

15 the following:

16 ‘‘(I) either a statement that the pro17 posals are intended to be evaluated with,

18 and award made after, discussions with the

19 offerors, or a statement that the proposals

20 are intended to be evaluated, and award

21 made, without discussions with the offerors

22 (other than discussions conducted for the

23 purpose of minor clarification) unless dis24 cussions are determined to be necessary;

25 and’’; and
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1 (2) by striking out paragraph (3) and inserting

2 in lieu thereof the following:

3 ‘‘(3)(A) In prescribing the evaluation factors to be

4 included in each solicitation for competitive proposals, the

5 head of an agency—

6 ‘‘(i) shall clearly establish the relative impor7 tance assigned to the evaluation factors and

8 subfactors, including the quality of the product or

9 services to be provided (including technical capabil10 ity, management capability, prior experience, and

11 past performance of the offeror);

12 ‘‘(ii) shall include cost or price to the Govern13 ment as an evaluation factor that must be consid14 ered in the evaluation of proposals; and

15 ‘‘(iii) shall disclose to offerors whether all eval16 uation factors other than cost or price, when com17 bined, are—

18 ‘‘(I) significantly more important than cost

19 or price;

20 ‘‘(II) approximately equal in importance to

21 cost or price; or

22 ‘‘(III) significantly less important than

23 cost or price.

24 ‘‘(B) Nothing in this paragraph prohibits an agency

25 from—
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1 ‘‘(i) providing additional information in a solici2 tation, including numeric weights for all evaluation

3 factors; or

4 ‘‘(ii) stating in a solicitation that award will be

5 made to the offeror that meets the solicitation’s

6 mandatory requirements at the lowest cost or

7 price.’’.

8 SEC. 41012. SOLICITATION PROVISION REGARDING EVAL9 UATION OF PURCHASE OPTIONS.

10 (a) OPTIONS FOR ADDITIONAL PURCHASES.—Sub11 section (a) of section 2305 of title 10, United States Code,

12 as amended by section 41011, is further amended by add13 ing at the end the following new paragraph:

14 ‘‘(4) The head of an agency, in issuing a solicitation

15 for a contract to be awarded using sealed bid procedures,

16 may not include in such solicitation a clause providing for

17 the evaluation of prices for options to purchase additional

18 property or services under the contract unless the head

19 of the agency has determined that there is a reasonable

20 likelihood that the options will be exercised.’’.

21 (b) REPEAL OF SUPERSEDED PROVISION.—Section

22 2301(a) of such title is amended—

23 (1) by striking out paragraph (7);

24 (2) by inserting ‘‘and’’ at the end of paragraph

25 (5); and
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1 (3) by striking out ‘‘; and’’ at the end of para2 graph (6) and inserting in lieu thereof a period.

3 SEC. 41013. PROMPT NOTICE OF AWARD.

4 (a) SEALED BID PROCEDURES.—Section 2305(b)(3)

5 of title 10, United States Code, is amended by adding at

6 the end the following: ‘‘As soon as practicable after the

7 date of contract award, the head of the agency shall, in

8 accordance with procedures prescribed in the Federal Ac9 quisition Regulation, notify all offerors not awarded the

10 contract that the contract has been awarded.’’.

11 (b) COMPETITIVE PROPOSALS PROCEDURES.—Sec12 tion 2305(b)(4)(B) of title 10, United States Code, is

13 amended in the second sentence by striking out ‘‘source

14 and shall promptly notify’’ and inserting in lieu thereof

15 ‘‘source. As soon as practicable after the date of contract

16 award, the head of the agency shall, in accordance with

17 procedures prescribed in the Federal Acquisition Regula18 tion, notify’’.

19 SEC. 41014. POST-AWARD DEBRIEFINGS.

20 Section 2305(b) of title 10, United States Code, is

21 amended—

22 (1) by redesignating paragraph (5) as para23 graph (6); and

24 (2) by inserting after paragraph (4) the follow25 ing new paragraph (5):
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1 ‘‘(5)(A) When a contract is awarded by the head of

2 an agency on the basis of competitive proposals, an unsuc3 cessful offeror, upon written request received by the agen4 cy within 3 days after the date on which the unsuccessful

5 offeror receives the notification of the contract award,

6 shall be debriefed and furnished the basis for the selection

7 decision and contract award. An employee of the agency

8 shall debrief the offeror promptly after receipt of the re9 quest by the agency.

10 ‘‘(B) The debriefing shall include, at a minimum—

11 ‘‘(i) the agency’s evaluation of the significant

12 weak or deficient factors in the offeror’s offer;

13 ‘‘(ii) the overall evaluated cost and technical

14 rating of the offer of the contractor awarded the

15 contract and the overall evaluated cost and technical

16 rating of the offer of the debriefed offeror;

17 ‘‘(iii) the overall ranking of all offers;

18 ‘‘(iv) a summary of the rationale for the award;

19 ‘‘(v) in the case of a proposal for a commercial

20 item other than a commercial component, the make

21 and model of the item being provided in accordance

22 with the offer of the contractor awarded the con23 tract; and

24 ‘‘(vi) reasonable responses to questions posed by

25 the debriefed offeror as to whether source selection
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1 procedures set forth in the solicitation, applicable

2 regulations, and other applicable authorities were

3 followed by the agency.

4 ‘‘(C) The debriefing may not include point-by-point

5 comparisons of the debriefed offeror’s offer with other of6 fers and may not disclose any information that is exempt

7 from disclosure under section 552 of title 5, including in8 formation relating to—

9 ‘‘(i) trade secrets;

10 ‘‘(ii) privileged or confidential manufacturing

11 processes and techniques; and

12 ‘‘(iii) commercial and financial information that

13 is privileged or confidential, including cost break14 downs, profit, indirect cost rates, and similar infor15 mation.

16 ‘‘(D) Each solicitation for competitive proposals shall

17 include a statement that information described in subpara18 graph (B) may be disclosed in post-award debriefings.

19 ‘‘(E) If, within one year after the date of the contract

20 award and as a result of a successful procurement protest

21 or otherwise, the agency seeks to fulfill the requirement

22 under the contract either on the basis of a new solicitation

23 of offers or on the basis of new best and final offers re24 quested for that contract, the agency shall make available

25 to all offerors—
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1 ‘‘(i) the information provided in debriefings

2 under this paragraph regarding the offer of the con3 tractor awarded the contract; and

4 ‘‘(ii) the same information that would have been

5 provided to the original offerors.

6 ‘‘(F) The contracting officer shall include a summary

7 of the debriefing in the contract file.’’.

8 SEC. 41015. PROTEST FILE.

9 Section 2305 of title 10, United States Code, is

10 amended by adding at the end the following:

11 ‘‘(e)(1) If, in the case of a solicitation for a contract

12 issued by, or an award or proposed award of a contract

13 by, the head of an agency, a protest is filed pursuant to

14 the procedures in subchapter V of chapter 35 of title 31

15 and an actual or prospective offeror so requests, a file of

16 the protest shall be established by the procuring activity

17 and reasonable access shall be provided to actual or pro18 spective offerors.

19 ‘‘(2) Information exempt from disclosure under the

20 section 552 of title 5 may be redacted in a file established

21 pursuant to paragraph (1) unless an applicable protective

22 order provides otherwise.

23 ‘‘(3) Regulations implementing this subsection shall

24 be consistent with the regulations regarding the prepara25 tion and submission of an agency’s protest file (the so-
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1 called ‘rule 4 file’) for protests to the General Services

2 Board of Contract Appeals under section 111 of the Fed3 eral Property and Administrative Services Act of 1949 (41

4 U.S.C. 759).’’.

5 SEC. 41016. AWARD OF COSTS AND FEES IN AGENCY SET6 TLEMENT OF PROTESTS.

7 Section 2305 of title 10, United States Code, as

8 amended by section 41015, is further amended by adding

9 at the end the following new subsection:

10 ‘‘(f) If, in connection with a protest, the head of an

11 agency determines that a solicitation, proposed award, or

12 award does not comply with the requirements of law or

13 regulation, the head of the agency may take—

14 ‘‘(1) any action set out in subparagraphs (A)

15 through (F) of subsection (b)(1) of section 3554 of

16 title 31; and

17 ‘‘(2) may pay costs described in paragraph (1)

18 of section 3554(c) of title 31 within the limits re19 ferred to in paragraph (2) of such section.’’.

20 SEC. 41017. TWO-PHASE SELECTION PROCEDURES.

21 (a) PROCEDURES AUTHORIZED.—Chapter 137 of

22 title 10, United States Code, is amended by inserting after

23 section 2305 the following new section:
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1 ‘‘§ 2305a. Two-phase selection procedures

2 ‘‘(a) PROCEDURES AUTHORIZED.—The head of an

3 agency may use two-phase selection procedures for enter4 ing into a contract for the acquisition of property or serv5 ices (other than a construction contract) when the head

6 of the agency determines that three or more offers will

7 be received for such contract, substantial design work

8 must be performed before an offeror can develop a price

9 or cost proposal for such contract, and the offerors will

10 incur a substantial amount of expenses in preparing the

11 offers.

12 ‘‘(b) PROCEDURES DESCRIBED.—Two-phase selec13 tion procedures consist of the following:

14 ‘‘(1) The head of the agency solicits proposals

15 that—

16 ‘‘(A) include information on the offerors’—

17 ‘‘(i) technical approach; and

18 ‘‘(ii) technical qualifications; and

19 ‘‘(B) do not include—

20 ‘‘(i) detailed design information; or

21 ‘‘(ii) cost or price information.

22 ‘‘(2) The head of the agency evaluates the pro23 posals on the basis of evaluation criteria set forth in

24 the solicitation, except that the head of the agency

25 does not consider cost-related or price-related eval26 uation factors.
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1 ‘‘(3) The head of the agency selects at least

2 three offerors as the most highly qualified to provide

3 the property or services under the contract and re4 quests the selected offerors to submit competitive

5 proposals that include cost or price information.

6 ‘‘(4) The head of the agency awards the con7 tract in accordance with section 2305(b)(4) of this

8 title.

9 ‘‘(c) SOLICITATION TO STATE NUMBER OF

10 OFFERORS TO BE SELECTED FOR PHASE TWO RE11 QUESTS FOR COMPETITIVE PROPOSALS.—A solicitation

12 issued pursuant to subsection (b)(1) shall state the maxi13 mum number of offerors that are to be selected to submit

14 competitive proposals pursuant to subsection (b)(3).

15 ‘‘(d) RESOURCE COMPARISON CRITERION RE16 QUIRED.—In using two-phase selection procedures for en17 tering into a contract, the head of the agency shall estab18 lish a resource criterion or a financial criterion applicable

19 to the contract in order to provide a consistent basis for

20 comparing the offerors and their proposals.’’.

21 (b) CLERICAL AMENDMENT.—The table of sections

22 at the beginning of such chapter is amended by inserting

23 after the item relating to section 2305 the following:

‘‘2305a. Two-phase selection procedures.’’.
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1 Subpart C—Kinds of Contracts

2 SEC. 41021. SECRETARIAL DETERMINATION REGARDING

3 USE OF COST TYPE OR INCENTIVE CON4 TRACT.

5 Subsection (c) of section 2306 of title 10, United

6 States Code, is repealed.

7 SEC. 41022. TECHNICAL AND CONFORMING AMENDMENTS.

8 (a) REPEAL OF UNNECESSARY CROSS REF9 ERENCE.—Subsection (f) of section 2306 of title 10, Unit10 ed States Code, is repealed.

11 (b) CONFORMING AMENDMENT.—Such section is

12 amended by redesignating subsections (d), (e), (g), and

13 (h) as subsections (c), (d), (e), and (f), respectively.

14 (c) NEUTERIZATION OF REFERENCE.—Subsection

15 (e)(1) of such section, as redesignated by subsection (b),

16 is amended in the matter above clause (i) by striking out

17 ‘‘whenever he finds’’ and inserting in lieu thereof ‘‘when18 ever the head of the agency finds’’.

19 Subpart D—Miscellaneous Provisions for the

20 Encouragement of Competition

21 SEC. 41031. REPEAL OF REQUIREMENT FOR ANNUAL RE22 PORT BY ADVOCATES FOR COMPETITION.

23 Subsection (c) of section 2318 of title 10, United

24 States Code, is repealed.
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1 PART II—CIVILIAN AGENCY ACQUISITIONS

2 Subpart A—Competition Requirements

3 SEC. 41051. REFERENCES TO FEDERAL ACQUISITION REGU4 LATION.

5 Section 303 of the Federal Property and Administra6 tive Services Act of 1949 (41 U.S.C. 253) is amended—

7 (1) in subsection (a)(1)(A), by striking out

8 ‘‘modifications’’ and all that follows through ‘‘of

9 1984’’ and inserting in lieu thereof ‘‘Federal Acqui10 sition Regulation’’; and

11 (2) in subsection (g)(1), by striking out ‘‘regu12 lations modified’’ and all that follows through ‘‘of

13 1984,’’ and inserting in lieu thereof ‘‘Federal Acqui14 sition Regulation’’.

15 SEC. 41052. ESTABLISHMENT OR MAINTENANCE OF ALTER16 NATIVE SOURCES OF SUPPLY.

17 Section 303(b) of the Federal Property and Adminis18 trative Services Act of 1949 (41 U.S.C. 253(b)) is amend19 ed—

20 (1) in paragraph (1)—

21 (A) by striking out ‘‘or’’ at the end of sub22 paragraph (B);

23 (B) by striking out the period at the end

24 of subparagraph (C) and inserting in lieu there25 of a semicolon; and
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1 (C) by adding at the end the following new

2 subparagraphs:

3 ‘‘(D) would ensure the continuous availability of

4 a reliable source of supply of such property or serv5 ice;

6 ‘‘(E) would satisfy projected needs for such

7 property or service determined on the basis of a his8 tory of high demand for the property or service; or

9 ‘‘(F) in the case of medical supplies, safety sup10 plies, or emergency supplies, would satisfy a critical

11 need for such supplies.’’;

12 (2) by redesignating paragraphs (2) and (3) as

13 paragraphs (3) and (4), respectively;

14 (3) by inserting after paragraph (1) the follow15 ing new paragraph (2):

16 ‘‘(2) The determination required of the agency head

17 in paragraph (1) may not be made for a class of purchases

18 or contracts.’’; and

19 (4) in paragraph (4), as redesignated by para20 graph (2), by striking out ‘‘paragraphs (1) and (2)’’

21 and inserting in lieu thereof ‘‘paragraphs (1) and

22 (3)’’.
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1 SEC. 41053. CLARIFICATION OF APPROVAL AUTHORITY FOR

2 USE OF PROCEDURES OTHER THAN FULL

3 AND OPEN COMPETITION.

4 Section 303(f)(1)(B)(i) of the Federal Property and

5 Administrative Services Act of 1949 (41 U.S.C.

6 253(f)(1)(B)(i)) is amended by inserting before the semi7 colon at the end the following: ‘‘or by an official referred

8 to in clause (ii), (iii), or (iv)’’.

9 SEC. 41054. TASK ORDER CONTRACTS FOR ADVISORY AND

10 ASSISTANCE SERVICES.

11 (a) AUTHORITY.—Title III of the Federal Property

12 and Administrative Services Act of 1949 (41 U.S.C. 251

13 et seq.) is amended by inserting after section 303G the

14 following new section:

15 ‘‘TASK ORDER CONTRACTS FOR ADVISORY AND

16 ASSISTANCE SERVICES

17 ‘‘SEC. 303H. (a) AUTHORITY TO AWARD.—(1) Sub18 ject to the requirements of this section, the head of an

19 executive agency may enter into a contract for advisory

20 and assistance services that does not procure or specify

21 a firm quantity of services (other than a minimum or max22 imum quantity) and that provides for the issuance of task

23 orders during the specified period of the contract.

24 ‘‘(2) Except as provided in subsection (h), the agency

25 head may enter into a contract described in paragraph (1)

26 only under the authority of this section.
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1 ‘‘(b) LIMITATION ON CONTRACT PERIOD.—The pe2 riod of a contract referred to in subsection (a), including

3 all periods of extensions of the contract under options,

4 modifications, or otherwise, may not exceed 5 years unless

5 a longer period is specifically authorized in a law that is

6 applicable to such contract.

7 ‘‘(c) CONTRACT PROCEDURES.—(1) An agency head

8 may use procedures other than competitive procedures to

9 enter into a contract referred to in subsection (a) only if

10 an exception in subsection (c) of section 303 applies to

11 the contract and the use of such procedures is approved

12 in accordance with subsection (f) of such section.

13 ‘‘(2) The notice required by section 18 of the Office

14 of Federal Procurement Policy Act (41 U.S.C. 416) and

15 section 8(e) of the Small Business Act (15 U.S.C. 637(e))

16 shall reasonably and fairly describe the general scope,

17 magnitude, and duration of the proposed contract in a

18 manner that would reasonably enable a potential offeror

19 to decide whether to request the solicitation and consider

20 submitting an offer.

21 ‘‘(3) The solicitation shall include the following:

22 ‘‘(A) The period of the contract, including the

23 number of options to extend the contract and the pe24 riod for which the contract may be extended under

25 each option, if any.
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1 ‘‘(B) The maximum quantity or dollar value of

2 the services to be procured under the contract.

3 ‘‘(C) A statement of work, specifications, or

4 other description that reasonably describes the gen5 eral scope, nature, complexity, and purposes of the

6 services to be procured under the contract.

7 ‘‘(4)(A) An agency head may, on the basis of one so8 licitation, award separate contracts under this section for

9 the same or similar services to two or more sources if the

10 solicitation states that the agency head has the option to

11 do so.

12 ‘‘(B) If, in the case of a contract for advisory and

13 assistance services to be entered into under the authority

14 of this section, the contract period is to exceed 3 years

15 and the contract amount is estimated to exceed

16 $10,000,000 (including all options), the solicitation

17 shall—

18 ‘‘(i) provide for a multiple award authorized

19 under subparagraph (A); and

20 ‘‘(ii) include a statement that the agency head

21 may also elect to award only one contract if the

22 agency head determines in writing that only one of

23 the offerers is capable of providing the services re24 quired at the level of quality required.
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1 ‘‘(C) Subparagraph (B) does not apply in the case

2 of a solicitation for which the agency head determines in

3 writing that, because the services required under the con4 tract are unique or highly specialized, it is not practicable

5 to award more than one contract.

6 ‘‘(5) A contract referred to in subsection (a) shall

7 contain the same information that is required by para8 graph (3) to be included in the solicitation of offers for

9 that contract.

10 ‘‘(d) ORDER PROCEDURES.—(1) The following ac11 tions are not required for a task order issued under a con12 tract entered into in accordance with this section:

13 ‘‘(A) A separate notice for such order under

14 section 18 of the Office of Federal Procurement Pol15 icy Act (41 U.S.C. 416) or section 8(e) of the Small

16 Business Act (15 U.S.C. 637(e)).

17 ‘‘(B) Except as provided in paragraph (2), a

18 competition (or a waiver of competition approved in

19 accordance with section 303(f)) that is separate

20 from that used for entering into the contract.

21 ‘‘(2)(A) When multiple contracts are awarded pursu22 ant to subsection (c)(4), all contractors awarded such con23 tracts shall be provided a fair opportunity to be consid24 ered, pursuant to procedures set forth in the contracts,
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1 for each task order in excess of $2,500 that is to be issued

2 under any of the contracts unless—

3 ‘‘(i) the agency’s need for the services ordered

4 is of such unusual urgency that competition would

5 result in unacceptable delays in fulfilling the agen6 cy’s needs;

7 ‘‘(ii) only one such contractor is capable of pro8 viding the services required at the level of quality re9 quired because the services ordered are unique or

10 highly specialized;

11 ‘‘(iii) the task order should be issued on a sole12 source basis in the interest of economy and effi13 ciency because it is a logical follow-on to a task

14 order already issued on a competitive basis; or

15 ‘‘(iv) the order must be placed with a particular

16 contractor in order to satisfy a minimum guarantee.

17 ‘‘(B) When a task order is issued in accordance with

18 subparagraph (A), the order shall include a statement of

19 work that clearly specifies all tasks to be performed under

20 the order.

21 ‘‘(3) A protest is not authorized in connection with

22 the issuance or proposed issuance of a task order except

23 for a protest on the ground that the order increases the

24 scope, period, or maximum value of the contract under

25 which the order is issued.
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1 ‘‘(e) INCREASES IN SCOPE, PERIOD, OR MAXIMUM

2 VALUE OF CONTRACT.—(1) A task order may not increase

3 the scope, period, or maximum value of the contract under

4 which the order is issued. The scope, period, or maximum

5 value of the contract may be increased only by modifica6 tion of the contract.

7 ‘‘(2) Unless use of procedures other than competitive

8 procedures is authorized by an exception in subsection (c)

9 of section 303 and approved in accordance with subsection

10 (f) of such section, competitive procedures shall be used

11 for making such a modification.

12 ‘‘(3) Notice regarding the modification shall be pro13 vided in accordance with section 18 of the Office of Fed14 eral Procurement Policy Act (41 U.S.C. 416) and section

15 8(e) of the Small Business Act (15 U.S.C. 637(e)).

16 ‘‘(4)(A) Notwithstanding the limitation on the con17 tract period set forth in subsection (b) or in a solicitation

18 or contract pursuant to subsection (c), a contract entered

19 into by the head of an agency under this section may be

20 extended on a sole-source basis for a period not exceeding

21 6 months if the agency head determines that—

22 ‘‘(i) the award of a follow-on contract has been

23 delayed by circumstances that were not reasonably

24 foreseeable at the time the initial contract was en25 tered into; and
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1 ‘‘(ii) the extension is necessary in order to en2 sure continuity of the receipt of services pending the

3 award of, and commencement of performance under,

4 the follow-on contract.

5 ‘‘(B) A contract may be extended under the authority

6 of subparagraph (A) only once and only in accordance

7 with the limitations and requirements of this subsection.

8 ‘‘(f) TASK ORDER OMBUDSMAN.—Each agency head

9 who awards multiple contracts pursuant to subsection

10 (c)(4) shall appoint or designate a task order ombudsman

11 who shall be responsible for reviewing complaints from the

12 contractors on such contracts and ensuring that all of the

13 contractors are afforded a fair opportunity to be consid14 ered for task orders when required under subsection

15 (d)(2). The task order ombudsman shall be a senior agen16 cy official who is independent of the contracting officer

17 for the contracts and may be the agency’s competition ad18 vocate.

19 ‘‘(g) INAPPLICABILITY TO CERTAIN CONTRACTS.—

20 This section does not apply to a contract for the acquisi21 tion of property or services that includes acquisition of ad22 visory and assistance services if the agency head entering

23 into such contract determines that, under the contract, ad24 visory and assistance services are necessarily incident to,

25 and not a significant component of, the contract.
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1 ‘‘(h) RELATIONSHIP TO OTHER CONTRACTING AU2 THORITY.—Nothing in this section may be construed to

3 limit the authority of the head of an agency to enter into

4 single or multiple task order contracts, or single or mul5 tiple delivery order contracts, for goods or services (other

6 than advisory and assistance services) under other provi7 sions of this title or under any other provision of law.

8 ‘‘(i) ADVISORY AND ASSISTANCE SERVICES DE9 FINED.—In this section, the term ‘advisory and assistance

10 services’ has the meaning given such term in section

11 1105(g) of title 31, United States Code.’’.

12 (b) CLERICAL AMENDMENT.—The table of contents

13 in the first section is amended by inserting after the item

14 relating to section 303G the following new item:

‘‘Sec. 303H. Task order contracts for advisory and assistance services.’’.

15 SEC. 41055. ACQUISITION OF EXPERT SERVICES.

16 (a) EXCEPTION TO REQUIREMENT FOR USE OF COM17 PETITIVE PROCEDURES.—Section 303(c)(3) of the Fed18 eral Property and Administrative Services Act of 1949 (41

19 U.S.C. 253(c)) is amended—

20 (1) by striking out ‘‘or (B)’’ and inserting in

21 lieu thereof ‘‘(B)’’; and

22 (2) by inserting before the semicolon at the end

23 the following: ‘‘, or (C) to procure the services of an

24 expert for use, in any litigation or dispute (including

25 any reasonably foreseeable litigation or dispute) in-
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1 volving the Federal Government, in any trial, hear2 ing, or proceeding before any court, administrative

3 tribunal, or agency, or in any part of an alternative

4 dispute resolution process, whether or not the expert

5 is expected to testify’’.

6 (b) PROCUREMENT NOTICE.—

7 (1) AMENDMENT OF OFFICE OF FEDERAL PRO8 CUREMENT POLICY ACT.—Section 18(c) of the Office

9 of Federal Procurement Policy Act (41 U.S.C.

10 416(c)) is amended—

11 (A) by striking out ‘‘or’’ at the end of sub12 paragraph (D);

13 (B) by striking out the period at the end

14 of subparagraph (E) and inserting in lieu there15 of ‘‘; or’’; and

16 (C) by adding at the end the following:

17 ‘‘(F) the procurement is for the services of an

18 expert for use in any litigation or dispute (including

19 any reasonably foreseeable litigation or dispute) in20 volving the Federal Government in any trial, hear21 ing, or proceeding before any court, administrative

22 tribunal, or agency, or in any part of an alternative

23 dispute resolution process, whether or not the expert

24 is expected to testify.’’.
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1 (2) AMENDMENT OF SMALL BUSINESS ACT.—

2 Section 8(g) of the Small Business Act (15 U.S.C.

3 637(c)) is amended—

4 (A) by striking out ‘‘or’’ at the end of sub5 paragraph (D);

6 (B) by striking out the period at the end

7 of subparagraph (E) and inserting in lieu there8 of ‘‘; or’’; and

9 (C) by adding at the end the following:

10 ‘‘(F) the procurement is for the services of an

11 expert for use in any litigation or dispute (including

12 preparation for any foreseeable litigation or dispute)

13 that involves or could involve the Federal Govern14 ment in any trial, hearing, or proceeding before any

15 court, administrative tribunal, or agency, or in any

16 part of an alternative dispute resolution process,

17 whether or not the expert is expected to testify.’’.

18 (c) REPEAL OF AMENDMENTS TO UNCODIFIED

19 TITLE.—The following provisions of law are repealed:

20 (1) Section 532 of Public Law 101–509 (104

21 Stat. 1470) and the provision of law set out in

22 quotes in that section.

23 (2) Section 529 of Public Law 102–393 (106

24 Stat. 1761) and the matters inserted and added by

25 that section.
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1 SEC. 41056. CONTINUED OCCUPANCY OF LEASED SPACE.

2 Section 303(d) of the Federal Property and Adminis3 trative Services Act of 1949 (41 U.S.C. 253(d)) is amend4 ed—

5 (1) by redesignating paragraph (2) as para6 graph (3); and

7 (2) by inserting after paragraph (1) the follow8 ing new paragraph (2):

9 ‘‘(2)(A) For the purposes of applying subsection

10 (c)(1) in the case of a follow-on lease to be entered into

11 for the purpose of providing for continued occupancy of

12 particular space in leased real property by a Federal agen13 cy, space may be treated as being available only from the

14 lessor of such space and may be acquired through the use

15 of procedures other than competitive procedures (without

16 the justification otherwise required by subsection (f)) if

17 a written determination is made by the contracting officer

18 that—

19 ‘‘(i) the occupying agency has a continuing need

20 for the space;

21 ‘‘(ii) the space meets the needs of the agency;

22 and

23 ‘‘(iii) the lessor is willing to continue to provide

24 the space at a fair market price determined by the

25 contracting officer on the basis of a market survey
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1 or an appraisal conducted in accordance with gen2 erally accepted real property appraisal standards.

3 ‘‘(B) The authority under subparagraph (A) to use

4 procedures other than competitive procedures to enter into

5 a follow-on lease may be exercised not more than once to

6 provide for continued occupancy of particular space in real

7 property by a particular Federal agency. The period of

8 such follow-on lease may not exceed 5 years.

9 ‘‘(C) Nothing in this paragraph may be construed to

10 prohibit the use of procedures other than competitive pro11 cedures to enter into a follow-on lease of real property for

12 continued occupancy of particular space in real property

13 by a Federal agency when an exception set forth in sub14 section (c) applies and the use of such procedures is justi15 fied and approved in accordance with subsection (f).’’.

16 Subpart B—Planning, Solicitation, Evaluation, and

17 Award

18 SEC. 41061. SOLICITATION, EVALUATION, AND AWARD.

19 (a) CONTENT OF SOLICITATION.—Section 303A of

20 the Federal Property and Administrative Services Act of

21 1949 (41 U.S.C. 253a) is amended—

22 (1) in subsection (b)(1)(A)—

23 (A) by inserting ‘‘and significant

24 subfactors’’ after ‘‘all significant factors’’; and
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1 (B) by striking out ‘‘(including price)’’ and

2 inserting ‘‘(including cost or price, cost-related

3 or price-related factors and subfactors, and

4 noncost-related or nonprice-related factors and

5 subfactors)’’;

6 (2) in subsection (b)(1)(B), by inserting ‘‘and

7 subfactors’’ after ‘‘factors’’;

8 (3) in subsection (b)(2)(B), by striking out

9 clause (i) and inserting in lieu thereof the following:

10 ‘‘(i) either a statement that the pro11 posals are intended to be evaluated with,

12 and award made after, discussions with the

13 offerors, or a statement that the proposals

14 are intended to be evaluated, and award

15 made, without discussions with the offerors

16 (other than discussions conducted for the

17 purpose of minor clarification) unless dis18 cussions are determined to be necessary;

19 and’’; and

20 (4) by adding at the end the following new sub21 section:

22 ‘‘(c)(1) In prescribing the evaluation factors to be in23 cluded in each solicitation for competitive proposals, an

24 agency head—
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1 ‘‘(A) shall clearly establish the relative impor2 tance assigned to the evaluation factors and

3 subfactors, including the quality of the product or

4 services to be provided (including technical capabil5 ity, management capability, prior experience, and

6 past performance of the offeror);

7 ‘‘(B) shall include cost or price to the Govern8 ment as an evaluation factor that must be consid9 ered in the evaluation of proposals; and

10 ‘‘(C) shall disclose to offerors whether all eval11 uation factors other than cost or price, when com12 bined, are—

13 ‘‘(i) significantly more important than cost

14 or price;

15 ‘‘(ii) approximately equal in importance to

16 cost or price; or

17 ‘‘(iii) significantly less important than cost

18 or price.

19 ‘‘(2) Nothing in this subsection prohibits an agency

20 from—

21 ‘‘(A) providing additional information in a solic22 itation, including numeric weights for all evaluation

23 factors; or

24 ‘‘(B) stating in a solicitation that award will be

25 made to the offeror that meets the solicitation’s
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1 mandatory requirements at the lowest price or

2 cost.’’.

3 (b) EVALUATION AND AWARD.—Section 303B of the

4 Federal Property and Administrative Services Act of 1949

5 (41 U.S.C. 253b) is amended—

6 (1) in subsection (a), by inserting ‘‘, and award

7 a contract,’’ after ‘‘competitive proposals’’;

8 (2) in subsection (c), by inserting ‘‘in accord9 ance with subsection (a)’’ in the second sentence

10 after ‘‘shall evaluate the bids’’; and

11 (3) in subsection (d)—

12 (A) by striking out paragraph (1) and in13 serting in lieu thereof the following:

14 ‘‘(1) An agency head shall evaluate competitive pro15 posals in accordance with subsection (a) and may award

16 a contract—

17 ‘‘(A) after discussions with the offerors, pro18 vided that written or oral discussions have been con19 ducted with all responsible offerors who submit pro20 posals within the competitive range; or

21 ‘‘(B) based on the proposals received and with22 out discussions with the offerors (other than discus23 sions conducted for the purpose of minor clarifica24 tion), provided that, as required by section

25 303A(b)(2)(B)(i), the solicitation included a state-
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1 ment that proposals are intended to be evaluated,

2 and award made, without discussions, unless discus3 sions are determined to be necessary.’’;

4 (B) by striking out paragraphs (2) and (3)

5 and by redesignating paragraph (4) as para6 graph (2); and

7 (C) in paragraph (2), as redesignated by

8 subparagraph (B), by inserting ‘‘cost or’’ before

9 ‘‘price’’ in the first sentence.

10 (c) APPLICABILITY.—

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendments made by this section

13 shall apply to—

14 (A) solicitations for sealed bids or competi15 tive proposals issued after the end of the 180-

16 day period beginning on the date of the enact17 ment of this Act; and

18 (B) contracts awarded pursuant to those

19 solicitations.

20 (2) AUTHORITY TO APPLY AMENDMENTS

21 EARLY.—The head of an executive agency may apply

22 the amendments made by this section to solicitations

23 issued before the end of the period referred to in

24 paragraph (1). The head of the executive agency

25 shall publish in the Federal Register notice of any
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1 such earlier date of application at least 10 days be2 fore that date.

3 SEC. 41062. SOLICITATION PROVISION REGARDING EVAL4 UATION OF PURCHASE OPTIONS.

5 Section 303A of the Federal Property and Adminis6 trative Services Act of 1949 (41 U.S.C. 253a), as amend7 ed by section 41061(a)(4), is further amended by adding

8 at the end the following new subsection:

9 ‘‘(d) An agency head, in issuing a solicitation for a

10 contract to be awarded using sealed bid procedures, may

11 not include in such solicitation a clause providing for the

12 evaluation of prices for options to purchase additional

13 property or services under the contract unless the agency

14 head has determined that there is a reasonable likelihood

15 that the options will be exercised.’’.

16 SEC. 41063. PROMPT NOTICE OF AWARD.

17 (a) SEALED BID PROCEDURES.—Subsection (c) of

18 section 303B of the Federal Property and Administrative

19 Services Act of 1949 (41 U.S.C. 253b) is amended by add20 ing at the end the following: ‘‘As soon as practicable after

21 the date of contract award, the agency head shall, in ac22 cordance with procedures prescribed in the Federal Acqui23 sition Regulation, notify all offerors not awarded the con24 tract that the contract has been awarded.’’.
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1 (b) COMPETITIVE PROPOSALS PROCEDURES.—Para2 graph (2) of section 303B(d) of the Federal Property and

3 Administrative Services Act of 1949 (41 U.S.C. 253b(d)),

4 as redesignated by section 41061(b)(3)(B), is amended in

5 the second sentence by striking out ‘‘source and shall

6 promptly notify’’ and inserting in lieu thereof ‘‘source. As

7 soon as practicable after the date of contract award, the

8 agency head shall, in accordance with procedures pre9 scribed in the Federal Acquisition Regulation, notify’’.

10 SEC. 41064. POST-AWARD DEBRIEFINGS.

11 Section 303B of the Federal Property and Adminis12 trative Services Act of 1949 (41 U.S.C. 253b) is amend13 ed—

14 (1) by redesignating subsections (e) and (f) as

15 subsections (f) and (g), respectively; and

16 (2) by inserting after subsection (d) the follow17 ing new subsection (e):

18 ‘‘(e)(1) When a contract is awarded by the head of

19 an executive agency on the basis of competitive proposals,

20 an unsuccessful offeror, upon written request received by

21 the agency within 3 days after the date on which the un22 successful offeror receives the notification of the contract

23 award, shall be debriefed and furnished the basis for the

24 selection decision and contract award. An employee of the
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1 executive agency shall debrief the offeror promptly after

2 receipt of the request by the agency.

3 ‘‘(2) The debriefing shall include, at a minimum—

4 ‘‘(A) the executive agency’s evaluation of the

5 significant weak or deficient factors in the offeror’s

6 offer;

7 ‘‘(B) the overall evaluated cost and technical

8 rating of the offer of the contractor awarded the

9 contract and the overall evaluated cost and technical

10 rating of the offer of the debriefed offeror;

11 ‘‘(C) the overall ranking of all offers;

12 ‘‘(D) a summary of the rationale for the award;

13 ‘‘(E) in the case of a proposal for a commercial

14 item other than a commercial component, the make

15 and model of the item being provided in accordance

16 with the offer of the contractor awarded the con17 tract; and

18 ‘‘(F) reasonable responses to questions posed by

19 the debriefed offeror as to whether source selection

20 procedures set forth in the solicitation, applicable

21 regulations, and other applicable authorities were

22 followed by the executive agency.

23 ‘‘(3) The debriefing may not include point-by-point

24 comparisons of the debriefed offeror’s offer with other of25 fers and may not disclose any information that is exempt
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1 from disclosure under section 552 of title 5, United States

2 Code, including information relating to—

3 ‘‘(A) trade secrets;

4 ‘‘(B) privileged or confidential manufacturing

5 processes and techniques; and

6 ‘‘(C) commercial and financial information that

7 is privileged or confidential, including cost break8 downs, profit, indirect cost rates, and similar infor9 mation.

10 ‘‘(4) Each solicitation for competitive proposals shall

11 include a statement that information described in para12 graph (2) may be disclosed in post-award debriefings.

13 ‘‘(5) If, within one year after the date of the contract

14 award and as a result of a successful procurement protest

15 or otherwise, the executive agency seeks to fulfill the re16 quirement under the contract either on the basis of a new

17 solicitation of offers or on the basis of new best and final

18 offers requested for that contract, the agency head shall

19 make available to all offerors—

20 ‘‘(A) the information provided in debriefings

21 under this subsection regarding the offer of the con22 tractor awarded the contract; and

23 ‘‘(B) the same information that would have

24 been provided to the original offerors.
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1 ‘‘(6) The contracting officer shall include a summary

2 of the debriefing in the contract file.’’.

3 SEC. 41065. PROTEST FILE.

4 Section 303B of the Federal Property and Adminis5 trative Services Act of 1949 (41 U.S.C. 253b), as amend6 ed by section 41064(1), is further amended by adding at

7 the end the following:

8 ‘‘(h)(1) If, in the case of a solicitation for a contract

9 issued by, or an award or proposed award of a contract

10 by, an agency head, a protest is filed pursuant to the pro11 cedures in subchapter V of chapter 35 of title 31, United

12 States Code, and an actual or prospective offeror so re13 quests, a file of the protest shall be established by the pro14 curing activity and reasonable access shall be provided to

15 actual or prospective offerors.

16 ‘‘(2) Information exempt from disclosure under sec17 tion 552 of title 5, United States Code, may be redacted

18 in a file established pursuant to paragraph (1) unless an

19 applicable protective order provides otherwise.

20 ‘‘(3) Regulations implementing this subsection shall

21 be consistent with the regulations regarding the prepara22 tion and submission of an agency’s protest file (the so23 called ‘rule 4 file’) for protests to the General Services

24 Board of Contract Appeals under section 111 of the Fed-
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1 eral Property and Administrative Services Act of 1949 (41

2 U.S.C. 759).’’.

3 SEC. 41066. AWARD OF COSTS AND FEES IN AGENCY SET4 TLEMENT OF PROTESTS.

5 Section 303B of the Federal Property and Adminis6 trative Services Act of 1949 (41 U.S.C. 253b), as amend7 ed by section 41065, is further amended by adding at the

8 end the following new subsection:

9 ‘‘(i) If, in connection with a protest, an agency head

10 determines that a solicitation, proposed award, or award

11 does not comply with the requirements of law or regula12 tion, the agency head may take—

13 ‘‘(1) any action set out in subparagraphs (A)

14 through (F) of subsection (b)(1) of section 3554 of

15 title 31, United States Code; and

16 ‘‘(2) may pay costs described in paragraph (1)

17 of section 3554(c) of such title within the limits re18 ferred to in paragraph (2) of such section.’’.

19 SEC. 41067. TWO-PHASE SELECTION PROCEDURES.

20 (a) PROCEDURES AUTHORIZED.—Title III of the

21 Federal Property and Administrative Services Act of 1949

22 (41 U.S.C. 251 et seq.), as amended by section 41054,

23 is further amended by inserting after section 303H the

24 following new section:
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1 ‘‘TWO-PHASE SELECTION PROCEDURES

2 ‘‘SEC. 303I. (a) PROCEDURES AUTHORIZED.—The

3 head of an executive agency may use two-phase selection

4 procedures for entering into a contract for the acquisition

5 of property or services (other than a construction con6 tract) when the agency head determines that three or

7 more offers will be received for such contract, substantial

8 design work must be performed before an offeror can de9 velop a price or cost proposal for such contract, and the

10 offerors will incur a substantial amount of expenses in pre11 paring the offers.

12 ‘‘(b) PROCEDURES DESCRIBED.—Two-phase selec13 tion procedures consist of the following:

14 ‘‘(1) The agency head solicits proposals that—

15 ‘‘(A) include information on the offerors’—

16 ‘‘(i) technical approach; and

17 ‘‘(ii) technical qualifications; and

18 ‘‘(B) do not include—

19 ‘‘(i) detailed design information; or

20 ‘‘(ii) cost or price information.

21 ‘‘(2) The agency head evaluates the proposals

22 on the basis of evaluation criteria set forth in the so23 licitation, except that the agency head does not con24 sider cost-related or price-related evaluation factors.
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1 ‘‘(3) The agency head selects at least three

2 offerors as the most highly qualified to provide the

3 property or services under the contract and requests

4 the selected offerors to submit competitive proposals

5 that include cost or price information.

6 ‘‘(4) The agency head awards the contract in

7 accordance with section 303B(d).

8 ‘‘(c) SOLICITATION TO STATE NUMBER OF

9 OFFERORS TO BE SELECTED FOR PHASE TWO RE10 QUESTS FOR COMPETITIVE PROPOSALS.—A solicitation

11 issued pursuant to subsection (b)(1) shall state the maxi12 mum number of offerors that are to be selected to submit

13 competitive proposals pursuant to subsection (b)(3).

14 ‘‘(d) RESOURCE COMPARISON CRITERION RE15 QUIRED.—In using two-phase selection procedures for en16 tering into a contract, the agency head shall establish a

17 resource criterion or a financial criterion applicable to the

18 contract in order to provide a consistent basis for compar19 ing the offerors and their proposals.’’.

20 (b) CLERICAL AMENDMENT.—The table of contents

21 in the first section of such Act, as amended by section

22 41054, is further amended by inserting after the item re23 lating to section 303H the following new item:

‘‘Sec. 303I. Two-phase selection procedures.’’.
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1 Subpart C—Kinds of Contracts

2 SEC. 41071. AGENCY HEAD DETERMINATION REGARDING

3 USE OF COST TYPE OR INCENTIVE CON4 TRACT.

5 Section 304(b) of the Federal Property and Adminis6 trative Services Act of 1949 (41 U.S.C. 254(b)) is amend7 ed by striking out the second sentence.

8 SEC. 41072. MULTIYEAR CONTRACTING AUTHORITY.

9 (a) AUTHORITY.—Title III of the Federal Property

10 and Administrative Services Act of 1949 (41 U.S.C. 251

11 et seq.), as amended by section 41067, is further amended

12 by inserting after section 303I the following new section:

13 ‘‘MULTIYEAR CONTRACTS

14 ‘‘SEC. 303J. (a) AUTHORITY.—The head of an execu15 tive agency may enter into a multiyear contract for the

16 acquisition of property or services if—

17 ‘‘(1) funds are available and obligated for such

18 contract, for the full period of the contract or for the

19 first fiscal year in which the contract is in effect,

20 and for the estimated costs associated with any nec21 essary termination of such contract; and

22 ‘‘(2) the agency head determines that—

23 ‘‘(A) the need for the property or services

24 is reasonably firm and continuing over the pe25 riod of the contract; and
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1 ‘‘(B) a multiyear contract will serve the

2 best interests of the United States by encourag3 ing effective competition or promoting economy

4 in administration, performance, and operation

5 of the agency’s programs.

6 ‘‘(b) TERMINATION CLAUSE.—A multiyear contract

7 entered into under the authority of this section shall in8 clude a clause that provides that the contract shall be ter9 minated if funds are not made available for the continu10 ation of such contract in any fiscal year covered by the

11 contract. Amounts available for paying termination costs

12 shall remain available for such purpose until the costs as13 sociated with termination of the contract are paid.

14 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec15 tion is intended to modify or affect any other provision

16 of law that authorizes multiyear contracts.’’.

17 (b) CLERICAL AMENDMENT.—The table of contents

18 in the first section of such Act, as amended by section

19 41067, is further amended by inserting after the item re20 lating to section 303I the following new item:

‘‘Sec. 303J. Multiyear contracts.’’.

21 SEC. 41073. SEVERABLE SERVICES CONTRACTS CROSSING

22 FISCAL YEARS.

23 (a) AUTHORITY.—Title III of the Federal Property

24 and Administrative Services Act of 1949 (41 U.S.C. 251
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1 et seq.), as amended by section 41072, is further amended

2 by inserting after section 303J the following new section:

3 ‘‘SEVERABLE SERVICES CONTRACTS FOR PERIODS

4 CROSSING FISCAL YEARS

5 ‘‘SEC. 303K. (a) AUTHORITY.—The head of an exec6 utive agency may enter into a contract for procurement

7 of severable services for a period that begins in one fiscal

8 year and ends in the next fiscal year if (without regard

9 to any option to extend the period of the contract) the

10 contract period does not exceed one year.

11 ‘‘(b) OBLIGATION OF FUNDS.—Funds made available

12 for a fiscal year may be obligated for the total amount

13 of a contract entered into under the authority of sub14 section (a).’’.

15 (b) CLERICAL AMENDMENT.—The table of contents

16 in the first section of such Act, as amended by section

17 41072, is further amended by inserting after the item re18 lating to section 303J the following new item:

‘‘Sec. 303K. Severable services contracts for periods crossing fiscal years.’’.

19 SEC. 41074. ECONOMY ACT PURCHASES.

20 (a) REGULATIONS REQUIRED.—Not later than six

21 months after the date of the enactment of this Act, the

22 Federal Acquisition Regulation shall be revised to include

23 regulations governing the exercise of the authority under

24 section 1535 of title 31, United States Code, for Federal
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1 agencies to purchase goods and services under contracts

2 entered into or administered by other agencies.

3 (b) CONTENT OF REGULATIONS.—The regulations

4 prescribed pursuant to subsection (a) shall—

5 (1) require that each purchase described in sub6 section (a) be approved in advance by a contracting

7 officer of the ordering agency with authority to con8 tract for the goods or services to be purchased or by

9 another official in a position specifically designated

10 by regulation to approve such purchase;

11 (2) provide that such a purchase of goods or

12 services may be made only if—

13 (A) the purchase is appropriately made

14 under a contract that the agency filling the pur15 chase order entered into, before the purchase

16 order, in order to meet the requirements of

17 such agency for the same or similar goods or

18 services;

19 (B) the agency filling the purchase order is

20 better qualified to enter into or administer the

21 contract for such goods or services by reason of

22 capabilities or expertise that is not available

23 within the ordering agency; or

24 (C) the agency or unit filling the order is

25 specifically authorized by law or regulations to
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1 purchase such goods or services on behalf of

2 other agencies;

3 (3) prohibit any such purchase under a contract

4 or other agreement entered into or administered by

5 an agency not covered by the provisions of chapter

6 137 of title 10, United States Code, or title III of

7 the Federal Property and Administrative Services

8 Act of 1949 (41 U.S.C. 251 et seq.) and not covered

9 by the Federal Acquisition Regulation unless the

10 purchase is approved in advance by the senior pro11 curement official responsible for purchasing by the

12 ordering agency; and

13 (4) prohibit any payment to the agency filling

14 a purchase order of any fee that exceeds the actual

15 cost or, if the actual cost is not known, the esti16 mated cost of entering into and administering the

17 contract or other agreement under which the order

18 is filled.

19 (c) MONITORING SYSTEM REQUIRED.—The Adminis20 trator for Federal Procurement Policy shall ensure that,

21 not later than one year after the date of the enactment

22 of this Act, systems for collecting and evaluating procure23 ment data are capable of collecting and evaluating appro24 priate data on procurements conducted under the regula25 tions prescribed pursuant to subsection (a).
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1 (d) TERMINATION.—This section shall cease to be ef2 fective one year after the date on which final regulations

3 prescribed pursuant to subsection (a) take effect.

4 PART III—ACQUISITIONS GENERALLY

5 SEC. 41091. POLICY REGARDING CONSIDERATION OF CON6 TRACTOR PAST PERFORMANCE.

7 (a) POLICY.—Section 2 of the Office of Federal Pro8 curement Policy Act (41 U.S.C. 401) is amended—

9 (1) by striking out ‘‘and’’ at the end of para10 graph (12);

11 (2) by striking out the period at the end of

12 paragraph (13) and inserting in lieu thereof ‘‘; and’’;

13 and

14 (3) by adding at the end the following new

15 paragraph:

16 ‘‘(14) establishing policies and procedures that

17 encourage the consideration of contractors’ past per18 formance in the selection of contractors.’’.

19 (b) GUIDANCE REQUIRED.—Section 6 of the Office

20 of Federal Procurement Policy Act (41 U.S.C. 405) is

21 amended by adding at the end the following:

22 ‘‘(j)(1) Congress makes the following findings:

23 ‘‘(A) Past contract performance of an offeror is

24 one of the relevant factors that contracting officials
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1 of executive agencies should consider in entering into

2 contracts.

3 ‘‘(B) It is appropriate for a contracting official

4 to consider past contract performance of an offeror

5 as an indicator of the likelihood that the offeror will

6 successfully perform a contract to be entered into by

7 that official.

8 ‘‘(2) The Administrator shall prescribe for executive

9 agencies guidance regarding consideration of the past con10 tract performance of offerors in awarding contracts. The

11 guidance shall include—

12 ‘‘(A) standards for evaluating past performance

13 with respect to cost (when appropriate), schedule,

14 compliance with technical or functional specifica15 tions, and other relevant performance factors that

16 facilitate consistent and fair evaluation by all execu17 tive agencies;

18 ‘‘(B) policies for the collection and maintenance

19 of information on past contract performance that, to

20 the maximum extent practicable, facilitate auto21 mated collection, maintenance, and dissemination of

22 information and provide for ease of collection, main23 tenance, and dissemination of information by other

24 methods, as necessary; and

25 ‘‘(C) policies for ensuring that—
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1 ‘‘(i) offerors are afforded an opportunity to

2 submit relevant information on past contract

3 performance, including performance under con4 tracts entered into by the executive agency con5 cerned, contracts entered into by other depart6 ments and agencies of the Federal Government,

7 contracts entered into by agencies of State and

8 local governments, and contracts entered into

9 by commercial customers; and

10 ‘‘(ii) such information submitted by

11 offerors is considered.

12 ‘‘(3) The Administrator shall prescribe for all execu13 tive agencies guidance regarding the period for which in14 formation on past performance of offerors should be main15 tained and considered.

16 ‘‘(4) In the case of an offeror regarding whom there

17 is no information on past contract performance or regard18 ing whom information on past contract performance is not

19 available, the offeror may not be evaluated favorably or

20 unfavorably on the factor of past contract performance.’’.

21 SEC. 41092. REPEAL OF REQUIREMENT FOR ANNUAL RE22 PORT ON COMPETITION.

23 Section 23 of the Office of Federal Procurement Pol24 icy Act (41 U.S.C. 419) is repealed.
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1 Subtitle B—Truth in Negotiations

2 PART I—ARMED SERVICES ACQUISITIONS

3 SEC. 41101. STABILIZATION OF DOLLAR THRESHOLD OF AP4 PLICABILITY.

5 (a) REPEAL OF REVERSION TO LOWER THRESH6 OLD.—Paragraph (1)(A) of section 2306a(a) of title 10,

7 United States Code, is amended—

8 (1) in clause (i), by striking out ‘‘and before

9 January 1, 1996,’’; and

10 (2) in clause (ii), by striking out ‘‘or after De11 cember 31, 1995,’’.

12 (b) ADJUSTMENTS FOR CHANGES IN DOLLAR VAL13 UES.—Section 2306a(a) of such title is amended by add14 ing at the end the following new subparagraph:

15 ‘‘(7) Effective on October 1 of each year that is divis16 ible by 5, each amount set forth in paragraph (1) shall

17 be adjusted to the amount that is equal to the fiscal year

18 1994 constant dollar value of the amount set forth. Any

19 amount, as so adjusted, that is not evenly divisible by

20 $50,000 shall be rounded to the nearest multiple of

21 $50,000. In the case of an amount that is evenly divisible

22 by $25,000 but not evenly divisible by $50,000, the

23 amount shall be rounded to the next higher multiple of

24 $50,000.’’.
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1 SEC. 41102. EXCEPTIONS TO COST OR PRICING DATA RE2 QUIREMENTS.

3 (a) EXCEPTIONS STATED.—Subsection (b) of section

4 2306a of title 10, United States Code, is amended to read

5 as follows:

6 ‘‘(b) EXCEPTIONS.—(1) Submission of cost and pric7 ing data shall not be required under subsection (a)—

8 ‘‘(A) in the case of a contract, a subcontract,

9 or a contract or subcontract modification, for which

10 the price agreed upon is based on—

11 ‘‘(i) adequate price competition;

12 ‘‘(ii) established catalog or market prices

13 of commercial items or of services customarily

14 used for other than Government purposes, as

15 the case may be, that are sold in substantial

16 quantities to the general public; or

17 ‘‘(iii) prices set by law or regulation; or

18 ‘‘(B) in an exceptional case when the head of

19 the agency concerned determines that the require20 ments of this section may be waived and states in

21 writing the reasons for such determination.

22 ‘‘(2) Submission of cost and pricing data shall not

23 be required under subsection (a) in the case of a modifica24 tion of a contract or subcontract for a commercial item

25 if—
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1 ‘‘(A) the contract or subcontract being modified

2 is a contract or subcontract for which submission of

3 cost and pricing data may not be required by reason

4 of paragraph (1)(A);

5 ‘‘(B) the modification is not a case in which

6 paragraph (1)(A) prohibits the head of an agency

7 from requiring submission of cost and pricing data;

8 and

9 ‘‘(C) the modification would not change the

10 contract or subcontract, as the case may be, from a

11 contract or subcontract for the acquisition of a com12 mercial item to a contract or subcontract for the ac13 quisition of a noncommercial item.’’.

14 (b) CONFORMING AMENDMENT TO REFERENCE.—

15 Subsection (a)(5) of such section is amended by striking

16 out ‘‘subsection (b)(2)’’ and inserting in lieu thereof ‘‘sub17 section (b)(1)(B)’’.

18 SEC. 41103. LIMITATION ON AUTHORITY TO REQUIRE A

19 SUBMISSION NOT OTHERWISE REQUIRED.

20 Subsection (c) of section 2306a of title 10, United

21 States Code, is amended to read as follows:

22 ‘‘(c) LIMITATION ON AUTHORITY TO REQUIRE COST

23 OR PRICING DATA.—When cost or pricing data are not

24 required to be submitted under this section by reason of

25 a $500,000 threshold set forth in subsection (a) (as ad-
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1 justed pursuant to paragraph (7) of such subsection) or

2 by reason of an exception set forth in paragraph (1)(A)

3 or (2) of subsection (b), submission of such data may not

4 be required unless the head of an agency concerned deter5 mines that such data are necessary for the evaluation by

6 the agency of the reasonableness of the price of the con7 tract or subcontract to which the data relate. In any case

8 in which the head of an agency requires such data to be

9 submitted in accordance with the preceding sentence, the

10 agency head shall document in writing the reasons for

11 such requirement.’’.

12 SEC. 41104. ADDITIONAL SPECIAL RULES FOR COMMER13 CIAL ITEMS.

14 Section 2306a of title 10, United States Code, is

15 amended—

16 (1) by redesignating subsections (d), (e), (f),

17 and (g) as subsections (e), (f), (g), and (i), respec18 tively; and

19 (2) by inserting after subsection (c) the follow20 ing new subsection (d):

21 ‘‘(d) ADDITIONAL EXCEPTION PROVISIONS REGARD22 ING COMMERCIAL ITEMS.—(1) To the maximum extent

23 practicable, the head of an agency shall conduct procure24 ments of commercial items on a competitive basis.
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1 ‘‘(2) In any case in which it is not practicable to con2 duct a procurement of a commercial item on a competitive

3 basis and the procurement is not covered by an exception

4 in subsection (b), the contracting officer shall nonetheless

5 exempt a contract, subcontract, or modification of a con6 tract or subcontract under the procurement from the re7 quirements of subsection (a) if the contracting officer ob8 tains, in accordance with standards and procedures set

9 forth in the Federal Acquisition Regulation, information

10 on prices at which the same or similar items have been

11 sold in the commercial market that is adequate for evalu12 ating the reasonableness of the price of the contract or

13 subcontract for a commercial item, or the contract or sub14 contract modification, as the case may be. The contracting

15 officer may obtain such information from the offeror or

16 contractor or, when such information is not available from

17 that source, from another source or sources.

18 ‘‘(3)(A) In accordance with procedures prescribed in

19 the Federal Acquisition Regulation, the head of an agency

20 shall have the right to examine all information provided

21 by an offeror, contractor, or subcontractor pursuant to

22 paragraph (2) and all books and records of such offeror,

23 contractor, or subcontractor that directly relate to such

24 information in order to determine whether the agency is

25 receiving accurate information required under this section.
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1 ‘‘(B) The right under subparagraph (A) shall expire

2 3 years after the date of award of the contract, or 3 years

3 after the date of the modification of the contract, with

4 respect to which the information was provided.’’.

5 SEC. 41105. RIGHT OF UNITED STATES TO EXAMINE CON6 TRACTOR RECORDS.

7 Section 2306a of title 10, United States Code, is

8 amended by striking out subsection (g), as redesignated

9 by section 41104(1), and inserting in lieu thereof the fol10 lowing:

11 ‘‘(g) RIGHT OF UNITED STATES TO EXAMINE CON12 TRACTOR RECORDS.—For the purpose of evaluating the

13 accuracy, completeness, and currency of cost or pricing

14 data required to be submitted by this section, the head

15 of an agency shall have the rights provided by section

16 2313 of this title.’’.

17 SEC. 41106. REQUIRED REGULATIONS.

18 Section 2306a of title 10, United States Code, as

19 amended by sections 41104 and 41105, is further amend20 ed by inserting after subsection (g) the following new sub21 section:

22 ‘‘(h) REQUIRED REGULATIONS.—The Secretary shall

23 prescribe regulations concerning the types of information

24 that offerors must submit for a contracting officer to con25 sider in determining whether the price of a procurement
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1 to the Government is fair and reasonable when certified

2 cost or pricing data are not required to be submitted

3 under this section because the price of the procurement

4 to the United States is not expected to exceed an applica5 ble $500,000 threshold set forth in subsection (a) (as ad6 justed pursuant to paragraph (7) of such subsection).

7 Such information, at a minimum, shall include appropriate

8 information on the prices at which the same or similar

9 items have previously been sold that is adequate for evalu10 ating the reasonableness of the price of the proposed con11 tract or subcontract for the procurement.’’.

12 SEC. 41107. CONSISTENCY OF TIME REFERENCES.

13 Section 2306a of title 10, United States Code, as

14 amended by section 41104(1), is further amended—

15 (1) in subparagraphs (A)(ii) and (B)(ii) of sub16 section (e)(4), by inserting ‘‘or, if applicable consist17 ent with paragraph (1)(B), another date agreed

18 upon between the parties,’’ after ‘‘(or price of the

19 modification)’’; and

20 (2) in subsection (i), by inserting ‘‘or, if appli21 cable consistent with subsection (d)(1)(B), another

22 date agreed upon between the parties’’ after ‘‘(or the

23 price of a contract modification)’’.
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1 SEC. 41108. EXCEPTION FOR TRANSFERS BETWEEN DIVI2 SIONS, SUBSIDIARIES, AND AFFILIATES.

3 Subsection (i) of section 2306a of title 10, United

4 States Code, as redesignated by section 41104(1), is

5 amended to read as follows:

6 ‘‘(i) DEFINITIONS.—In this section:

7 ‘‘(1) The term ‘cost or pricing data’ means all

8 facts that, as of the date of agreement on the price

9 of a contract (or the price of a contract modifica10 tion), a prudent buyer or seller would reasonably ex11 pect to affect price negotiations significantly. Such

12 term does not include information that is

13 judgmental, but does include the factual information

14 from which a judgment was derived.

15 ‘‘(2) The term ‘subcontract’ includes a transfer

16 of commercial items between divisions, subsidiaries,

17 or affiliates of a contractor.’’.

18 SEC. 41109. REPEAL OF SUPERSEDED PROVISION.

19 Subsections (b) and (c) of section 803 of Public Law

20 101–510 (10 U.S.C. 2306a note) are repealed.
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1 PART II—CIVILIAN AGENCY ACQUISITIONS

2 SEC. 41151. REVISION OF CIVILIAN AGENCY PROVISIONS TO

3 ENSURE UNIFORM TREATMENT OF COST OR

4 PRICING DATA.

5 (a) IN GENERAL.—Title III of the Federal Property

6 and Administrative Services Act of 1949 (41 U.S.C. 251

7 et seq.) is amended—

8 (1) in section 304, by striking out subsection

9 (d); and

10 (2) by inserting after section 304 the following

11 new section:

12 ‘‘COST OR PRICING DATA: TRUTH IN NEGOTIATIONS

13 ‘‘SEC. 304A. (a) REQUIRED COST OR PRICING DATA

14 AND CERTIFICATION.—(1) An agency head shall require

15 offerors, contractors, and subcontractors to make cost or

16 pricing data available as follows:

17 ‘‘(A) An offeror for a prime contract under this

18 title to be entered into using procedures other than

19 sealed-bid procedures shall be required to submit

20 cost or pricing data before the award of a contract

21 if—

22 ‘‘(i) in the case of a prime contract entered

23 into after the date of the enactment of the Fed24 eral Acquisition Streamlining Act of 1994, the

25 price of the contract to the United States is ex26 pected to exceed $500,000; and
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1 ‘‘(ii) in the case of a prime contract en2 tered into on or before the date of the enact3 ment of the Federal Acquisition Streamlining

4 Act of 1994, the price of the contract to the

5 United States is expected to exceed $100,000.

6 ‘‘(B) The contractor for a prime contract under

7 this chapter shall be required to submit cost or pric8 ing data before the pricing of a change or modifica9 tion to the contract if—

10 ‘‘(i) in the case of a change or modification

11 made to a prime contract referred to in sub12 paragraph (A)(i), the price adjustment is ex13 pected to exceed $500,000;

14 ‘‘(ii) in the case of a change or modifica15 tion made to a prime contract that was entered

16 into on or before the date of the enactment of

17 the Federal Acquisition Streamlining Act of

18 1994, and that has been modified pursuant to

19 paragraph (6), the price adjustment is expected

20 to exceed $500,000; and

21 ‘‘(iii) in the case of a change or modifica22 tion not covered by clause (i) or (ii), the price

23 adjustment is expected to exceed $100,000.

24 ‘‘(C) An offeror for a subcontract (at any tier)

25 of a contract under this title shall be required to
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1 submit cost or pricing data before the award of the

2 subcontract if the prime contractor and each higher3 tier subcontractor have been required to make avail4 able cost or pricing data under this section and—

5 ‘‘(i) in the case of a subcontract under a

6 prime contract referred to in subparagraph

7 (A)(i), the price of the subcontract is expected

8 to exceed $500,000;

9 ‘‘(ii) in the case of a subcontract entered

10 into under a prime contract that was entered

11 into on or before the date of the enactment of

12 the Federal Acquisition Streamlining Act of

13 1994, and that has been modified pursuant to

14 paragraph (6), the price of the subcontract is

15 expected to exceed $500,000; and

16 ‘‘(iii) in the case of a subcontract not cov17 ered by clause (i) or (ii), the price of the sub18 contract is expected to exceed $100,000.

19 ‘‘(D) The subcontractor for a subcontract cov20 ered by subparagraph (C) shall be required to sub21 mit cost or pricing data before the pricing of a

22 change or modification to the subcontract if—

23 ‘‘(i) in the case of a change or modification

24 to a subcontract referred to in subparagraph
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•S 2211 PCS

1 (C)(i) or (C)(ii), the price adjustment is ex2 pected to exceed $500,000; and

3 ‘‘(ii) in the case of a change or modifica4 tion to a subcontract referred to in subpara5 graph (C)(iii), the price adjustment is expected

6 to exceed $100,000.

7 ‘‘(2) A person required, as an offeror, contractor, or

8 subcontractor, to submit cost or pricing data under para9 graph (1) (or required by the agency head concerned to

10 submit such data in accordance with subsection (c)) shall

11 be required to certify that, to the best of the person’s

12 knowledge and belief, the cost or pricing data submitted

13 are accurate, complete, and current.

14 ‘‘(3) Cost or pricing data required to be submitted

15 under paragraph (1) (or in accordance with subsection

16 (c)), and a certification required to be submitted under

17 paragraph (2), shall be submitted—

18 ‘‘(A) in the case of a submission by a prime

19 contractor (or an offeror for a prime contract), to

20 the contracting officer for the contract (or to a des21 ignated representative of the contracting officer); or

22 ‘‘(B) in the case of a submission by a sub23 contractor (or an offeror for a subcontract), to the

24 prime contractor.
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1 ‘‘(4) Except as provided under subsection (b), this

2 section applies to contracts entered into by an agency head

3 on behalf of a foreign government.

4 ‘‘(5) For purposes of paragraph (1)(C), a contractor

5 or subcontractor granted a waiver under subsection

6 (b)(1)(B) shall be considered as having been required to

7 make available cost or pricing data under this section.

8 ‘‘(6)(A) Upon the request of a contractor that was

9 required to submit cost or pricing data under paragraph

10 (1) in connection with a prime contract entered into on

11 or before the date of the enactment of the Federal Acquisi12 tion Streamlining Act of 1994, the agency head that en13 tered into such contract shall modify the contract to re14 flect subparagraphs (B)(ii) and (C)(ii) of paragraph (1).

15 All such modifications shall be made without requiring

16 consideration.

17 ‘‘(B) An agency head is not required to modify a con18 tract under subparagraph (A) if that agency head deter19 mines that the submission of cost or pricing data with re20 spect to that contract should be required in accordance

21 with subsection (c).

22 ‘‘(7) Effective on October 1 of each year that is divis23 ible by 5, each amount set forth in paragraph (1) shall

24 be adjusted to the amount that is equal to the fiscal year

25 1994 constant dollar value of the amount set forth. Any
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1 amount, as so adjusted, that is not evenly divisible by

2 $50,000 shall be rounded to the nearest multiple of

3 $50,000. In the case of an amount that is evenly divisible

4 by $25,000 but not evenly divisible by $50,000, the

5 amount shall be rounded to the next higher multiple of

6 $50,000.

7 ‘‘(b) EXCEPTIONS.—(1) Submission of cost and pric8 ing data shall not be required under subsection (a)—

9 ‘‘(A) in the case of a contract, a subcontract,

10 or a contract or subcontract modification, for which

11 the price agreed upon is based on—

12 ‘‘(i) adequate price competition;

13 ‘‘(ii) established catalog or market prices

14 of commercial items or of services customarily

15 used for other than Government purposes, as

16 the case may be, that are sold in substantial

17 quantities to the general public; or

18 ‘‘(iii) prices set by law or regulation; or

19 ‘‘(B) in an exceptional case when the agency

20 head concerned determines that the requirements of

21 this section may be waived and states in writing the

22 reasons for such determination.

23 ‘‘(2) Submission of cost and pricing data shall not

24 be required under subsection (a) in the case of a modifica-
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1 tion of a contract or subcontract for a commercial item

2 if—

3 ‘‘(A) the contract or subcontract being modified

4 is a contract or subcontract for which submission of

5 cost and pricing data may not be required by reason

6 of paragraph (1)(A);

7 ‘‘(B) the modification is not a case in which

8 paragraph (1)(A) prohibits the agency head from re9 quiring submission of cost and pricing data; and

10 ‘‘(C) the modification would not change the

11 contract or subcontract, as the case may be, from a

12 contract or subcontract for the acquisition of a com13 mercial item to a contract or subcontract for the ac14 quisition of a noncommercial item.

15 ‘‘(c) LIMITATION ON AUTHORITY TO REQUIRE COST

16 OR PRICING DATA.—When cost or pricing data are not

17 required to be submitted under this section by reason of

18 a $500,000 threshold set forth in subsection (a) (as ad19 justed pursuant to paragraph (7) of such subsection) or

20 by reason of an exception in paragraph (1)(A) or (2) of

21 subsection (b), submission of such data may not be re22 quired unless the agency head concerned determines that

23 such data are necessary for the evaluation by the agency

24 of the reasonableness of the price of the contract or sub25 contract to which the data relate. In any case in which
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1 the agency head requires such data to be submitted in ac2 cordance with the preceding sentence, the agency head

3 shall document in writing the reasons for such require4 ment.

5 ‘‘(d) ADDITIONAL EXCEPTION PROVISIONS REGARD6 ING COMMERCIAL ITEMS.—(1) To the maximum extent

7 practicable, an agency head shall conduct procurements

8 of commercial items on a competitive basis.

9 ‘‘(2) In any case in which it is not practicable to con10 duct a procurement of a commercial item on a competitive

11 basis and the procurement is not covered by an exception

12 in subsection (b), the contracting officer shall nonetheless

13 exempt a contract, subcontract, or modification of a con14 tract or subcontract under the procurement from the re15 quirements of subsection (a) if the contracting officer ob16 tains, in accordance with standards and procedures set

17 forth in the Federal Acquisition Regulation, information

18 on prices at which the same or similar items have been

19 sold in the commercial market that is adequate for evalu20 ating the reasonableness of the price of the contract or

21 subcontract for a commercial item, or the contract or sub22 contract modification, as the case may be. The contracting

23 officer may obtain such information from the offeror or

24 contractor or, when such information is not available from

25 that source, from another source or sources.
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1 ‘‘(3)(A) In accordance with procedures prescribed in

2 the Federal Acquisition Regulation, an agency head shall

3 have the right to examine all information provided by an

4 offeror, contractor, or subcontractor pursuant to para5 graph (2) and all books and records of such offeror, con6 tractor, or subcontractor that directly relate to such infor7 mation in order to determine whether the agency is receiv8 ing accurate information required under this section.

9 ‘‘(B) The right under subparagraph (A) shall expire

10 3 years after the date of award of the contract, or 3 years

11 after the date of the modification of the contract, with

12 respect to which the information was provided.

13 ‘‘(e) PRICE REDUCTIONS FOR DEFECTIVE COST OR

14 PRICING DATA.—(1)(A) A prime contract (or change or

15 modification to a prime contract) under which a certificate

16 under subsection (a)(2) is required shall contain a provi17 sion that the price of the contract to the United States,

18 including profit or fee, shall be adjusted to exclude any

19 significant amount by which it may be determined by the

20 agency head that such price was increased because the

21 contractor (or any subcontractor required to make avail22 able such a certificate) submitted defective cost or pricing

23 data.

24 ‘‘(B) For the purposes of this section, defective cost

25 or pricing data are cost or pricing data which, as of the
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1 date of agreement on the price of the contract (or another

2 date agreed upon between the parties), were inaccurate,

3 incomplete, or noncurrent. If for purposes of the preceding

4 sentence the parties agree upon a date other than the date

5 of agreement on the price of the contract, the date agreed

6 upon by the parties shall be as close to the date of agree7 ment on the price of the contract as is practicable.

8 ‘‘(2) In determining for purposes of a contract price

9 adjustment under a contract provision required by para10 graph (1) whether, and to what extent, a contract price

11 was increased because the contractor (or a subcontractor)

12 submitted defective cost or pricing data, it shall be a de13 fense that the United States did not rely on the defective

14 data submitted by the contractor or subcontractor.

15 ‘‘(3) It is not a defense to an adjustment of the price

16 of a contract under a contract provision required by para17 graph (1) that—

18 ‘‘(A) the price of the contract would not have

19 been modified even if accurate, complete, and cur20 rent cost or pricing data had been submitted by the

21 contractor or subcontractor because the contractor

22 or subcontractor—

23 ‘‘(i) was the sole source of the property or

24 services procured; or
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1 ‘‘(ii) otherwise was in a superior bargain2 ing position with respect to the property or

3 services procured;

4 ‘‘(B) the contracting officer should have known

5 that the cost and pricing data in issue were defective

6 even though the contractor or subcontractor took no

7 affirmative action to bring the character of the data

8 to the attention of the contracting officer;

9 ‘‘(C) the contract was based on an agreement

10 between the contractor and the United States about

11 the total cost of the contract and there was no

12 agreement about the cost of each item procured

13 under such contract; or

14 ‘‘(D) the prime contractor or subcontractor did

15 not submit a certification of cost and pricing data

16 relating to the contract as required under subsection

17 (a)(2).

18 ‘‘(4)(A) A contractor shall be allowed to offset an

19 amount against the amount of a contract price adjustment

20 under a contract provision required by paragraph (1) if—

21 ‘‘(i) the contractor certifies to the contracting

22 officer (or to a designated representative of the con23 tracting officer) that, to the best of the contractor’s

24 knowledge and belief, the contractor is entitled to

25 the offset; and
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1 ‘‘(ii) the contractor proves that the cost or pric2 ing data were available before the date of agreement

3 on the price of the contract (or price of the modi4 fication), or, if applicable consistent with paragraph

5 (1)(B), another date agreed upon between the par6 ties, and that the data were not submitted as speci7 fied in subsection (a)(3) before such date.

8 ‘‘(B) A contractor shall not be allowed to offset an

9 amount otherwise authorized to be offset under subpara10 graph (A) if—

11 ‘‘(i) the certification under subsection (a)(2)

12 with respect to the cost or pricing data involved was

13 known to be false when signed; or

14 ‘‘(ii) the United States proves that, had the cost

15 or pricing data referred to in subparagraph (A)(ii)

16 been submitted to the United States before the date

17 of agreement on the price of the contract (or price

18 of the modification) or, if applicable under para19 graph (1)(B), another date agreed upon between the

20 parties, the submission of such cost or pricing data

21 would not have resulted in an increase in that price

22 in the amount to be offset.

23 ‘‘(f) INTEREST AND PENALTIES FOR CERTAIN OVER24 PAYMENTS.—(1) If the United States makes an overpay25 ment to a contractor under a contract with an executive
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1 agency subject to this section and the overpayment was

2 due to the submission by the contractor of defective cost

3 or pricing data, the contractor shall be liable to the United

4 States—

5 ‘‘(A) for interest on the amount of such over6 payment, to be computed—

7 ‘‘(i) for the period beginning on the date

8 the overpayment was made to the contractor

9 and ending on the date the contractor repays

10 the amount of such overpayment to the United

11 States; and

12 ‘‘(ii) at the current rate prescribed by the

13 Secretary of the Treasury under section 6621

14 of the Internal Revenue Code of 1986; and

15 ‘‘(B) if the submission of such defective data

16 was a knowing submission, for an additional amount

17 equal to the amount of the overpayment.

18 ‘‘(2) Any liability under this subsection of a contrac19 tor that submits cost or pricing data but refuses to submit

20 the certification required by subsection (a)(2) with respect

21 to the cost or pricing data shall not be affected by the

22 refusal to submit such certification.

23 ‘‘(g) RIGHT OF UNITED STATES TO EXAMINE CON24 TRACTOR RECORDS.—For the purpose of evaluating the

25 accuracy, completeness, and currency of cost or pricing
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1 data required to be submitted by this section, the head

2 of an agency shall have the rights provided by section

3 304B(a)(2).

4 ‘‘(h) REQUIRED REGULATIONS.—The Federal Acqui5 sition Regulation shall include regulations concerning the

6 types of information that offerors must submit for a con7 tracting officer to consider in determining whether the

8 price of a procurement to the Government is fair and rea9 sonable when certified cost or pricing data are not re10 quired to be submitted under this section because the price

11 of the procurement to the United States is not expected

12 to exceed an applicable $500,000 threshold set forth in

13 subsection (a) (as adjusted pursuant to paragraph (7) of

14 such subsection). Such information, at a minimum, shall

15 include appropriate information on the prices at which the

16 same or similar items have previously been sold that is

17 adequate for evaluating the reasonableness of the price of

18 a proposed contract or subcontract for the procurement.

19 ‘‘(i) DEFINITIONS.—In this section:

20 ‘‘(1) The term ‘cost or pricing data’ means all

21 facts that, as of the date of agreement on the price

22 of a contract (or the price of a contract modifica23 tion) or, if applicable consistent with subsection

24 (e)(1)(B), another date agreed upon between the

25 parties, a prudent buyer or seller would reasonably
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1 expect to affect price negotiations significantly. Such

2 term does not include information that is

3 judgmental, but does include the factual information

4 from which a judgment was derived.

5 ‘‘(2) The term ‘subcontract’ includes a transfer

6 of commercial items between divisions, subsidiaries,

7 or affiliates of a contractor.’’.

8 (b) TABLE OF CONTENTS.—The table of contents in

9 the first section of such Act is amended by inserting after

10 the item relating to section 304 the following:

‘‘Sec. 304A. Cost or pricing data: truth in negotiations.’’.

11 SEC. 41152. REPEAL OF OBSOLETE PROVISION.

12 (a) REPEAL.—Section 303E of the Federal Property

13 and Administrative Services Act of 1949 (41 U.S.C. 253e)

14 is repealed.

15 (b) CLERICAL AMENDMENT.—The table of contents

16 in the first section of such Act is amended by striking out

17 the item relating to section 303E.

18 Subtitle C—Research and

19 Development

20 SEC. 41201. RESEARCH PROJECTS.

21 (a) AUTHORIZED MEANS.—Subsection (b) of section

22 2358 of title 10, United States Code, is amended to read

23 as follows:
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1 ‘‘(b) AUTHORIZED MEANS.—The Secretary of De2 fense or the Secretary of a military department may per3 form research and development projects—

4 ‘‘(1) by contract entered into with, grant made

5 to, or cooperative agreement entered into with edu6 cational or research institutions, private businesses,

7 or other persons in accordance with the provisions of

8 chapter 63 of title 31;

9 ‘‘(2) through one or more military departments;

10 ‘‘(3) by using employees and consultants of the

11 Department of Defense; or

12 ‘‘(4) by mutual agreement with the head of any

13 other department or agency of the Federal Govern14 ment.’’.

15 (b) CAPTION AMENDMENT.—The caption of sub16 section (c) of such section is amended by striking out

17 ‘‘MILITARY’’ and inserting in lieu thereof ‘‘DEPARTMENT

18 OF DEFENSE’’.

19 (c) ADVANCED RESEARCH PROJECTS.—

20 (1) RESTORATION AND REVISION OF FORMER

21 STATEMENT OF AUTHORITY.—Section 2371 of title

22 10, United States Code, is amended—

23 (A) by redesignating subsections (a), (b),

24 (c), (d), (e), and (f) as subsections (b), (c), (d),

25 (e), (f), and (g), respectively; and
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1 (B) by inserting before subsection (b), as

2 so redesignated, the following new subsection

3 (a):

4 ‘‘(a) The Secretary of Defense, acting through the

5 Advanced Research Projects Agency and such other ele6 ments of the Department of Defense as the Secretary may

7 designate, and the Secretary of each military department,

8 in carrying out basic, applied, and advanced research

9 projects, may enter into other transactions, in addition to

10 contracts, grants, and cooperative agreements authorized

11 by section 2358 of this title.’’.

12 (2) CONFORMING AMENDMENTS.—Such section,

13 as amended by paragraph (1), is further amended—

14 (A) in subsection (b)—

15 (i) in paragraph (1), by inserting ‘‘or

16 subsection (a)’’ after ‘‘section 2358 of this

17 title’’; and

18 (ii) in paragraph (2), by striking out

19 ‘‘subsection (d)’’ and inserting in lieu

20 thereof ‘‘subsection (e)’’;

21 (B) in subsection (c), by inserting ‘‘section

22 2358 of this title or’’ after ‘‘under’’;

23 (C) in subsection (d)—

24 (i) in paragraph (1), by striking out

25 ‘‘this section’’ and inserting in lieu thereof
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1 ‘‘section 2358 of this title or subsection

2 (a)’’; and

3 (ii) in paragraph (3), by striking out

4 ‘‘this section’’ and inserting in lieu thereof

5 ‘‘section 2358 of this title or subsection

6 (a)’’;

7 (D) in subsection (e), by inserting ‘‘or sub8 section (a)’’ in the first sentence after ‘‘section

9 2358 of this title’’; and

10 (E) in subsection (f)—

11 (i) in the first sentence, by striking

12 out ‘‘under this section’’ and inserting in

13 lieu thereof ‘‘under section 2358 of this

14 title or subsection (a)’’;

15 (ii) in paragraph (4), by striking out

16 ‘‘subsection (a)’’ and inserting in lieu

17 thereof ‘‘subsection (b)’’; and

18 (iii) in paragraph (5), by striking out

19 ‘‘subsection (d)’’ and inserting in lieu

20 thereof ‘‘subsection (e)’’.
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1 SEC. 41202. ELIMINATION OF INFLEXIBLE TERMINOLOGY

2 REGARDING COORDINATION AND COMMU3 NICATION OF DEFENSE RESEARCH ACTIVI4 TIES.

5 Section 2364 of title 10, United States Code, is

6 amended—

7 (1) in subsection (b)(5), by striking out ‘‘mile8 stone 0, milestone I, and milestone II decisions’’ and

9 inserting in lieu thereof ‘‘acquisition program deci10 sions’’; and

11 (2) in subsection (c), by striking out para12 graphs (2), (3), and (4) and inserting in lieu thereof

13 the following:

14 ‘‘(2) The term ‘acquisition program decisions’

15 has the meaning given such term in regulations pre16 scribed by the Secretary of Defense for the purposes

17 of this section.’’.

18 Subtitle D—Procurement Protests

19 PART I—PROTESTS TO THE COMPTROLLER

20 GENERAL

21 SEC. 41301. PROTEST DEFINED.

22 Paragraph (1) of section 3551 of title 31, United

23 States Code, is amended to read as follows:

24 ‘‘(1) ‘protest’ means a written objection by an

25 interested party—
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1 ‘‘(i) to a solicitation or other request by a

2 Federal agency for offers for a contract for the

3 procurement of property or services;

4 ‘‘(ii) to the cancellation of such a solicita5 tion or other request;

6 ‘‘(iii) to an award or proposed award of

7 such a contract; or

8 ‘‘(iv) to a termination or cancellation of an

9 award of such a contract, if the written objec10 tion contains an allegation that the termination

11 or cancellation is based in whole or in part on

12 improprieties concerning the award of the con13 tract;’’.

14 SEC. 41302. REVIEW OF PROTESTS AND EFFECT ON CON15 TRACTS PENDING DECISION.

16 (a) PERIODS FOR CERTAIN ACTIONS.—Section 3553

17 of title 31, United States Code, is amended—

18 (1) in subsection (b)—

19 (A) in paragraph (1), by striking out ‘‘one

20 working day of’’ and inserting in lieu thereof

21 ‘‘one day after’’; and

22 (B) in paragraph (2)—

23 (i) in subparagraph (A), by striking

24 out ‘‘25 working days from’’ and inserting

25 in lieu thereof ‘‘35 days after’’; and
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1 (ii) in subparagraph (C), by striking

2 out ‘‘10 working days from’’ and inserting

3 in lieu thereof ‘‘25 days after’’; and

4 (2) in subsection (c)(3), by striking out ‘‘there5 after’’ and inserting in lieu thereof ‘‘after the mak6 ing of such finding’’.

7 (b) SUSPENSION OF PERFORMANCE.—Subsection (d)

8 of such section is amended to read as follows:

9 ‘‘(d)(1) A contractor awarded a Federal agency con10 tract may, during the period described in paragraph (4),

11 begin performance of the contract and engage in any relat12 ed activities that result in obligations being incurred by

13 the United States under the contract unless the contract14 ing officer responsible for the award of the contract with15 holds authorization to proceed with performance of the

16 contract.

17 ‘‘(2) The contracting officer may withhold an author18 ization to proceed with performance of the contract during

19 the period described in paragraph (4) if the contracting

20 officer determines in writing that—

21 ‘‘(A) a protest is likely to be filed; and

22 ‘‘(B) the immediate performance of the contract

23 is not in the best interests of the United States.
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1 ‘‘(3)(A) If the Federal agency awarding the contract

2 receives notice of a protest in accordance with this section

3 during the period described in paragraph (4)—

4 ‘‘(i) the contracting officer may not authorize

5 performance of the contract to begin while the pro6 test is pending; or

7 ‘‘(ii) if contract performance authorization to

8 proceed was not withheld in accordance with para9 graph (2) before receipt of the notice, the contract10 ing officer shall immediately direct the contractor to

11 cease performance under the contract and to sus12 pend any related activities that may result in addi13 tional obligations being incurred by the United

14 States under that contract.

15 ‘‘(B) Performance and related activities suspended

16 pursuant to subparagraph (A)(ii) by reason of a protest

17 may not be resumed while the protest is pending.

18 ‘‘(C) The head of the procuring activity may author19 ize the performance of the contract (notwithstanding a

20 protest of which the Federal agency has notice under this

21 section)—

22 ‘‘(i) upon a written finding that—

23 ‘‘(I) performance of the contract is in the

24 best interests of the United States; or
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1 ‘‘(II) urgent and compelling circumstances

2 that significantly affect interests of the United

3 States will not permit waiting for the decision

4 of the Comptroller General concerning the pro5 test; and

6 ‘‘(ii) after the Comptroller General is notified of

7 that finding.

8 ‘‘(4) The period referred to in paragraphs (2) and

9 (3)(A), with respect to a contract, is the period beginning

10 on the date of the contract award and ending on the later

11 of—

12 ‘‘(A) the date that is 10 days after the date of

13 the contract award; or

14 ‘‘(B) the date that is 5 days after—

15 ‘‘(i) the debriefing date offered to an un16 successful offeror for any debriefing that is re17 quested and, when requested, is required; or

18 ‘‘(ii) in the case of a contract for which no

19 debriefing is required, the date on which the

20 unsuccessful offeror receives the notification of

21 contract award.’’.

22 SEC. 41303. DECISIONS ON PROTESTS.

23 (a) PERIODS FOR CERTAIN ACTIONS.—Section

24 3554(a) of title 31, United States Code, is amended—
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1 (1) in paragraph (1), by striking out ‘‘90 work2 ing days from’’ and inserting in lieu thereof ‘‘125

3 days after’’;

4 (2) in paragraph (2), by striking out ‘‘45 cal5 endar days from’’ and inserting ‘‘65 days after’’;

6 (3) by redesignating paragraph (3) as para7 graph (4); and

8 (4) by inserting after paragraph (2) the follow9 ing new paragraph (3):

10 ‘‘(3) An amendment to a protest that adds a new

11 ground of protest, if timely made, should be resolved, to

12 the maximum extent practicable, within the time limit es13 tablished under paragraph (1) of this subsection for final

14 decision of the initial protest. If an amended protest can15 not be resolved within such time limit, the Comptroller

16 General may resolve the amended protest through the ex17 press option under paragraph (2) of this subsection.’’.

18 (b) GAO RECOMMENDATIONS ON PROTESTS.—

19 (1) IMPLEMENTATION OF RECOMMENDA20 TIONS.—Section 3554 of title 31, United States

21 Code, is amended—

22 (A) in subsection (b), by adding at the end

23 the following new paragraph:

24 ‘‘(3) If the Federal agency fails to implement fully

25 the recommendations of the Comptroller General under
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1 this subsection with respect to a solicitation for a contract

2 or an award or proposed award of a contract within 60

3 days after receiving the recommendations, the head of the

4 procuring activity responsible for that contract shall re5 port such failure to the Comptroller General not later than

6 5 working days after the end of such 60-day period.’’;

7 (B) by striking out subsection (c) and in8 serting in lieu thereof the following:

9 ‘‘(c)(1) If the Comptroller General determines that

10 a solicitation for a contract or a proposed award or the

11 award of a contract does not comply with a statute or reg12 ulation, the Comptroller General may recommend that the

13 Federal agency conducting the procurement pay to an ap14 propriate interested party the costs of—

15 ‘‘(A) filing and pursuing the protest, including

16 reasonable attorney’s fees and consultant and expert

17 witness fees; and

18 ‘‘(B) bid and proposal preparation.

19 ‘‘(2) No party (other than a small business concern

20 (within the meaning of section 3(a) of the Small Business

21 Act)) may be paid, pursuant to a recommendation made

22 under the authority of paragraph (1)—

23 ‘‘(A) costs for consultant and expert witness

24 fees that exceed the rates provided under section

25 504(b)(1)(A) of title 5 for expert witnesses; or
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1 ‘‘(B) costs for attorney’s fees that exceed the

2 rates provided for attorneys under section

3 504(b)(1)(A) of title 5.

4 ‘‘(3) If the Comptroller General recommends under

5 paragraph (1) that a Federal agency pay costs to an inter6 ested party, the Federal agency shall—

7 ‘‘(A) pay the costs promptly; or

8 ‘‘(B) if the Federal agency does not make such

9 payment, promptly report to the Comptroller Gen10 eral the reasons for the failure to follow the Comp11 troller General’s recommendation.

12 ‘‘(4) If the Comptroller General recommends under

13 paragraph (1) that a Federal agency pay costs to an inter14 ested party, the Federal agency and the interested party

15 shall attempt to reach an agreement on the amount of the

16 costs to be paid. If the Federal agency and the interested

17 party are unable to agree on the amount to be paid, the

18 Comptroller General may, upon the request of the inter19 ested party, recommend to the Federal agency the amount

20 of the costs that the Federal agency should pay.’’; and

21 (C) by striking out subsection (e) and in22 serting in lieu thereof the following:

23 ‘‘(e)(1) The Comptroller General shall report prompt24 ly to the Committee on Governmental Affairs and the

25 Committee on Appropriations of the Senate and to the
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1 Committee on Government Operations and the Committee

2 on Appropriations of the House of Representatives any

3 case in which a Federal agency fails to implement fully

4 a recommendation of the Comptroller General under sub5 section (b) or (c). The report shall include—

6 ‘‘(A) a comprehensive review of the pertinent

7 procurement, including the circumstances of the fail8 ure of the Federal agency to implement a rec9 ommendation of the Comptroller General; and

10 ‘‘(B) a recommendation regarding whether, in

11 order to correct an inequity or to preserve the integ12 rity of the procurement process, the Congress should

13 consider—

14 ‘‘(i) private relief legislation;

15 ‘‘(ii) legislative rescission or cancellation of

16 funds;

17 ‘‘(iii) further investigation by Congress; or

18 ‘‘(iv) other action.

19 ‘‘(2) Not later than January 31 of each year, the

20 Comptroller General shall transmit to the Congress a re21 port containing a summary of each instance in which a

22 Federal agency did not fully implement a recommendation

23 of the Comptroller General under subsection (b) or (c)

24 during the preceding year. The report shall also describe

25 each instance in which a final decision in a protest was
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1 not rendered within 125 days after the date the protest

2 is submitted to the Comptroller General.’’.

3 (2) REQUIREMENT FOR PAYMENT IN ACCORD4 ANCE WITH PRIOR GAO DETERMINATIONS.—Costs to

5 which the Comptroller General declared an inter6 ested party to be entitled under section 3554 of title

7 31, United States Code, as in effect immediately be8 fore the enactment of this Act, shall, if not paid or

9 otherwise satisfied by the Federal agency concerned

10 before the date of the enactment of this Act, be paid

11 promptly.

12 SEC. 41304. REGULATIONS.

13 (a) COMPUTATION OF PERIODS.—Section 3555 of

14 title 31, United States Code, is amended—

15 (1) by redesignating subsection (b) as sub16 section (d); and

17 (2) by inserting after subsection (a) the follow18 ing new subsection (b):

19 ‘‘(b) The procedures shall provide that, in the com20 putation of any period described in this subchapter—

21 ‘‘(1) the day of the act, event, or default from

22 which the designated period of time begins to run

23 not be included; and

24 ‘‘(2) the last day after such act, event, or de25 fault be included, unless—
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1 ‘‘(A) such last day is a Saturday, a Sun2 day, or a legal holiday; or

3 ‘‘(B) in the case of a filing of a paper at

4 the General Accounting Office or a Federal

5 agency, such last day is a day on which weather

6 or other conditions cause the closing of the

7 General Accounting Office or Federal agency,

8 in which event the next day that is not a Satur9 day, Sunday, or legal holiday shall be in10 cluded.’’.

11 (b) ELECTRONIC FILINGS AND DISSEMINATIONS.—

12 Such section, as amended by subsection (a), is further

13 amended by inserting after subsection (b) the following

14 new subsection:

15 ‘‘(c) The Comptroller General may prescribe proce16 dures for the electronic filing and dissemination of docu17 ments and information required under this subchapter. In

18 prescribing such procedures, the Comptroller General shall

19 consider the ability of all parties to achieve electronic ac20 cess to such documents and records.’’.

21 (c) REPEAL OF OBSOLETE DEADLINE.—Subsection

22 (a) of such section is amended by striking out ‘‘Not later

23 than January 15, 1985, the’’ and inserting in lieu thereof

24 ‘‘The’’.
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1 PART II—PROTESTS IN THE FEDERAL COURTS

2 SEC. 41321. NONEXCLUSIVITY OF REMEDIES.

3 Section 3556 of title 31, United States Code, is

4 amended by striking out ‘‘a district court of the United

5 States or the United States Claims Court’’ in the first sen6 tence and inserting in lieu thereof ‘‘the United States

7 Court of Federal Claims’’.

8 SEC. 41322. JURISDICTION OF THE UNITED STATES COURT

9 OF FEDERAL CLAIMS.

10 (a) CLAIMS AGAINST THE UNITED STATES AND BID

11 PROTESTS.—Section 1491 of title 28, United States Code,

12 is amended—

13 (1) by redesignating subsection (b) as sub14 section (e);

15 (2) in subsection (a)—

16 (A) by striking out ‘‘(a)(1)’’ and inserting

17 in lieu thereof ‘‘(a) CLAIMS AGAINST THE

18 UNITED STATES.—’’;

19 (B) in paragraph (2), by striking out ‘‘(2)

20 To’’ and inserting in lieu thereof ‘‘(b) REMEDY

21 AND RELIEF.—To’’; and

22 (C) by striking out paragraph (3); and

23 (3) by inserting after subsection (b), as des24 ignated by paragraph (2)(B), the following new sub25 section (c):
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1 ‘‘(c) BID PROTESTS.—(1) The United States Court

2 of Federal Claims has jurisdiction to render judgment on

3 an action by an interested party objecting to a solicitation

4 by a Federal agency for bids or proposals for a proposed

5 contract or to a proposed award or the award of a con6 tract. The court has jurisdiction to entertain such an ac7 tion without regard to whether suit is instituted before or

8 after the contract is awarded.

9 ‘‘(2) To afford relief in such an action, the court may

10 award any relief that the court considers proper, including

11 declaratory and injunctive relief.

12 ‘‘(3) In exercising jurisdiction under this subsection,

13 the court shall give due regard to the interests of national

14 defense and national security and the need for expeditious

15 resolution of the action.

16 ‘‘(4) The district courts of the United States do not

17 have jurisdiction of any action referred to in paragraph

18 (1).’’.

19 (b) CLERICAL AMENDMENTS.—

20 (1) SECTION HEADING.—The heading of such

21 section is amended by inserting ‘‘BID PROTESTS;’’

22 after ‘‘GENERALLY;’’.

23 (2) TABLE OF SECTIONS.—The table of sections

24 at the beginning of chapter 91 of title 28, United

25 States Code, is amended by striking out the item re-
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1 lating to section 1491 and inserting in lieu thereof

2 the following:

‘‘1491. Claims against United States generally; bid protests; actions involving

Tennessee Valley Authority.’’.

3 PART III—PROTESTS IN PROCUREMENTS OF

4 AUTOMATIC DATA PROCESSING

5 SEC. 41331. REVOCATION OF DELEGATIONS OF PROCURE6 MENT AUTHORITY.

7 Section 111(b)(3) of the Federal Property and Ad8 ministrative Services Act of 1949 (40 U.S.C. 759(b)(3))

9 is amended by inserting after the third sentence the fol10 lowing: ‘‘The Administrator may revoke a delegation of

11 authority with respect to a particular contract before or

12 after award of the contract, except that the Administrator

13 may revoke a delegation after the contract is awarded only

14 when there is a finding of a violation of law or regulation

15 in connection with the contract award.’’.

16 SEC. 41332. AUTHORITY OF THE GENERAL SERVICES AD17 MINISTRATION BOARD OF CONTRACT AP18 PEALS.

19 The first sentence of section 111(f)(1) of the Federal

20 Property and Administrative Services Act of 1949 (40

21 U.S.C. 759(f)(1)) is amended to read as follows: ‘‘Upon

22 request of an interested party in connection with any pro23 curement that is subject to this section (including any

24 such procurement that is subject to delegation of procure-
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1 ment authority), the board of contract appeals of the Gen2 eral Services Administration (hereafter in this subsection

3 referred to as the ‘board’) shall review, as provided in this

4 subsection, any decision by a contracting officer that is

5 alleged to violate a statute, a regulation, or the conditions

6 of a delegation of procurement authority.’’.

7 SEC. 41333. PERIODS FOR CERTAIN ACTIONS.

8 (a) SUSPENSION OF PROCUREMENT AUTHORITY.—

9 Section 111(f) of the Federal Property and Administrative

10 Services Act of 1949 (40 U.S.C. 759(f)) is amended—

11 (1) in paragraph (2) by adding at the end the

12 following new subparagraph:

13 ‘‘(C) If, in the case of a preaward protest, the board

14 suspends the procurement authority of the Administrator

15 or the Administrator’s delegation of procurement author16 ity, the Administrator or the delegate, as the case may

17 be, may continue with the procurement action up to, but

18 not including, the awarding of the contract if the Adminis19 trator or the delegate, as the case may be, determines that

20 it is in the best interests of the United States to do so.’’;

21 and

22 (2) in paragraph (3) by striking out subpara23 graph (A) and inserting in lieu thereof the following:

24 ‘‘(A)(i) If, with respect to an award of a contract,

25 the board receives notice of a protest under this subsection
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1 within the period described in clause (ii), the board shall,

2 at the request of an interested party, hold a hearing to

3 determine whether the board should suspend the procure4 ment authority of the Administrator or the Administra5 tor’s delegation of procurement authority for the protested

6 procurement on an interim basis until the board can de7 cide the protest.

8 ‘‘(ii) The period referred to in clause (i) is the period

9 beginning on the date on which the contract is awarded

10 and ending on the date that is 10 days after the date of

11 the contract award or, if later, the date that is 5 days

12 after—

13 ‘‘(I) the debriefing date offered to an unsuc14 cessful offeror for any debriefing that is requested

15 and, when requested, is required; or

16 ‘‘(II) in the case of a contract for which no de17 briefing is required, the date on which the unsuc18 cessful offeror receives the notification of contract

19 award.

20 ‘‘(iii) The board shall hold the requested hearing

21 within 5 days after the date of the filing of the protest

22 or, in the case of a request for debriefing under the provi23 sions of section 2305(b)(5) of title 10, United States Code,

24 or section 303B(e) of this Act, within 5 days after the
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1 later of the date of the filing of the protest or the date

2 of the debriefing.’’.

3 (b) FINAL DECISION.—Paragraph (4)(B) of such sec4 tion 111(f) is amended—

5 (1) by striking out ‘‘45 working days’’ and in6 serting in lieu thereof ‘‘65 days’’; and

7 (2) by adding at the end the following: ‘‘An

8 amendment which adds a new ground of protest

9 should be resolved, to the maximum extent prac10 ticable, within the time limits established for resolu11 tion of the initial protest.’’.

12 SEC. 41334. DISMISSALS OF PROTESTS.

13 Section 111(f)(4) of the Federal Property and Ad14 ministrative Services Act of 1949 (40 U.S.C. 759(f)(4))

15 is amended by striking out subparagraph (C) and insert16 ing in lieu thereof the following:

17 ‘‘(C) The board may dismiss a protest that the board

18 determines—

19 ‘‘(i) is frivolous;

20 ‘‘(ii) has been brought in bad faith; or

21 ‘‘(iii) does not state on its face a valid basis for

22 protest.’’.

23 SEC. 41335. AWARD OF COSTS.

24 Section 111(f)(5) is amended by striking out sub25 paragraph (C) and inserting in lieu thereof the following:
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1 ‘‘(C) Whenever the board makes such a determina2 tion, it may, in accordance with section 1304 of title 31,

3 United States Code, further declare an appropriate pre4 vailing party to be entitled to the cost of filing and pursu5 ing the protest (including reasonable attorney’s fees and

6 consultant and expert witness fees), and bid and proposal

7 preparation. However, no party (other than a small busi8 ness concern (within the meaning of section 3(a) of the

9 Small Business Act)) may be declared entitled to costs for

10 consultant and expert witness fees that exceed the rates

11 provided under section 504(b)(1)(A) of title 5, United

12 States Code, for expert witnesses or to costs for attorney’s

13 fees that exceed the rates provided for attorneys under

14 section 504(b)(1)(A) of title 5, United States Code.’’.

15 SEC. 41336. DISMISSAL AGREEMENTS.

16 Section 111(f)(5) of the Federal Property and Ad17 ministrative Services Act of 1949 (40 U.S.C. 759(f)(5))

18 is amended by adding at the end the following new sub19 paragraphs:

20 ‘‘(D) Any agreement that provides for the dismissal

21 of a protest and involves a direct or indirect expenditure

22 of appropriated funds shall be submitted to the board and

23 shall be made a part of the public record (subject to any

24 protective order considered appropriate by the board) be25 fore dismissal of the protest. If a Federal agency is a party
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1 to a settlement agreement, the submission of the agree2 ment submitted to the board shall include a memorandum,

3 signed by the contracting officer concerned, that describes

4 in detail the procurement, the grounds for protest, the

5 Federal Government’s position regarding the grounds for

6 protest, the terms of the settlement, and the agency’s posi7 tion regarding the propriety of the award or proposed

8 award of the contract at issue in the protest.

9 ‘‘(E) Payment of amounts due from an agency under

10 subparagraph (C) or under the terms of a settlement

11 agreement under subparagraph (D) shall be made from

12 the appropriation made by section 1304 of title 31, United

13 States Code, for the payment of judgments. The Federal

14 agency concerned shall reimburse that appropriation ac15 count out of funds available for the procurement.’’.

16 SEC. 41337. JURISDICTION OF DISTRICT COURTS.

17 Section 111(f)(6)(C) of the Federal Property and Ad18 ministrative Services Act of 1949 (40 U.S.C.

19 759(f)(6)(C)) is amended by striking out ‘‘a district court

20 of the United States or’’.

21 SEC. 41338. MATTERS TO BE COVERED IN REGULATIONS.

22 Section 111(f) of the Federal Property and Adminis23 trative Services Act of 1949 (40 U.S.C. 759(f)) is amend24 ed by striking out paragraph (8) and inserting in lieu

25 thereof the following:
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1 ‘‘(7)(A) The board shall adopt and issue such rules

2 and procedures as may be necessary to the expeditious dis3 position of protests filed under the authority of this sub4 section.

5 ‘‘(B) The procedures shall provide that, in the com6 putation of any period described in this subsection—

7 ‘‘(i) the day of the act, event, or default from

8 which the designated period of time begins to run

9 not be included; and

10 ‘‘(ii) the last day after such act, event, or de11 fault be included, unless—

12 ‘‘(I) such last day is a Saturday, a Sunday,

13 or a legal holiday; or

14 ‘‘(II) in the case of a filing of a paper at

15 the board, such last day is a day on which

16 weather or other conditions cause the closing of

17 the board or Federal agency, in which event the

18 next day that is not a Saturday, Sunday, or

19 legal holiday shall be included.

20 ‘‘(C) The procedures may provide for electronic filing

21 and dissemination of documents and information required

22 under this subsection and in so providing shall consider

23 the ability of all parties to achieve electronic access to such

24 documents and records.
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1 ‘‘(D) The procedures shall provide that if the board

2 expressly finds that a protest or a portion of a protest

3 is frivolous or has not been brought or pursued in good

4 faith, or that any person has willfully abused the board’s

5 process during the course of a protest, the board may im6 pose appropriate procedural sanctions, including dismissal

7 of the protest.’’.

8 SEC. 41339. DEFINITIONS.

9 (a) PROTEST.—Section 111(f)(9)(A) of the Federal

10 Property and Administrative Services Act of 1949 (40

11 U.S.C. 759(f)(9)(A)) is amended to read as follows:

12 ‘‘(A) the term ‘protest’ means a written objec13 tion by an interested party—

14 ‘‘(i) to a solicitation or other request by a

15 Federal agency for offers for a contract for the

16 procurement of property or services;

17 ‘‘(ii) to the cancellation of such a solicita18 tion or other request;

19 ‘‘(iii) to an award or proposed award of

20 such a contract; or

21 ‘‘(iv) to a termination or cancellation of an

22 award of such a contract, if the written objec23 tion contains an allegation that the termination

24 or cancellation is based in whole or in part on
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1 improprieties concerning the award of the con2 tract;’’.

3 (b) PREVAILING PARTY.—Section 111(f)(9) of such

4 Act is amended—

5 (1) by striking out ‘‘and’’ at the end of sub6 paragraph (A);

7 (2) by striking out the period at the end of sub8 paragraph (B) and inserting in lieu thereof ‘‘; and’’;

9 and

10 (3) by adding at the end the following new sub11 paragraph:

12 ‘‘(C) the term ‘prevailing party’, with respect to

13 a determination of the board under paragraph

14 (5)(B) that a challenged action of a Federal agency

15 violates a statute or regulation or the conditions of

16 a delegation of procurement authority issued pursu17 ant to this section, means a party that demonstrated

18 such violation.’’.

19 Subtitle E—Definitions and Other

20 Matters

21 PART I—ARMED SERVICES ACQUISITIONS

22 SEC. 41401. DEFINITIONS.

23 Section 2302 of title 10, United States Code, is

24 amended—
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1 (1) by striking out paragraphs (3), (4), (5), and

2 (7);

3 (2) by redesignating paragraph (6) as para4 graph (5); and

5 (3) by inserting after paragraph (2) the follow6 ing:

7 ‘‘(3) The terms ‘commercial item’, ‘commercial

8 component’, ‘full and open competition’, ‘major sys9 tem’, ‘nondevelopmental item’, ‘procurement’, ‘pro10 curement system’, ‘responsible source’, ‘standards’,

11 and ‘technical data’, have the meanings given such

12 terms in section 4 of the Office of Federal Procure13 ment Policy Act (41 U.S.C. 403).

14 ‘‘(4) The term ‘simplified acquisition threshold’

15 has the meaning given that term in section 4 of the

16 Office of Federal Procurement Policy Act (41 U.S.C.

17 403), except that, in the case of any contract to be

18 awarded and performed, or purchase to be made,

19 outside the United States in support of a contin20 gency operation, the term means an amount equal to

21 two times the amount specified for that term in sec22 tion 4 of such Act.’’.
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1 SEC. 41402. DELEGATION OF PROCUREMENT FUNCTIONS.

2 (a) CONSOLIDATION OF DELEGATION AUTHORITY.—

3 Section 2311 of title 10, United States Code, is amended

4 to read as follows:

5 ‘‘§ 2311. Delegation

6 ‘‘(a) IN GENERAL.—Except to the extent expressly

7 prohibited by another provision of law, the head of an

8 agency may delegate, subject to his direction, to any other

9 officer or official of that agency, any power under this

10 chapter.

11 ‘‘(b) PROCUREMENTS FOR OR WITH OTHER AGEN12 CIES.—Subject to subsection (a), to facilitate the procure13 ment of property and services covered by this chapter by

14 each agency named in section 2303 of this title for any

15 other agency, and to facilitate joint procurement by those

16 agencies—

17 ‘‘(1) the head of an agency may, within his

18 agency, delegate functions and assign responsibilities

19 relating to procurement;

20 ‘‘(2) the heads of two or more agencies may by

21 agreement delegate procurement functions and as22 sign procurement responsibilities from one agency to

23 another of those agencies or to an officer or civilian

24 employee of another of those agencies; and
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1 ‘‘(3) the heads of two or more agencies may

2 create joint or combined offices to exercise procure3 ment functions and responsibilities.

4 ‘‘(c) APPROVAL OF TERMINATIONS AND REDUCTIONS

5 OF JOINT ACQUISITION PROGRAMS.—(1) The Secretary

6 of Defense shall prescribe regulations that prohibit each

7 military department participating in a joint acquisition

8 program approved by the Under Secretary of Defense for

9 Acquisition and Technology from terminating or substan10 tially reducing its participation in such program without

11 the approval of the Under Secretary.

12 ‘‘(2) The regulations shall include the following provi13 sions:

14 ‘‘(A) A requirement that, before any such ter15 mination or substantial reduction in participation is

16 approved, the proposed termination or reduction be

17 reviewed by the Joint Requirements Oversight Coun18 cil of the Department of Defense.

19 ‘‘(B) A provision that authorizes the Under

20 Secretary of Defense for Acquisition and Technology

21 to require a military department approved for termi22 nation or substantial reduction in participation in a

23 joint acquisition program to continue to provide

24 some or all of the funding necessary for the acquisi-
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1 tion program to be continued in an efficient man2 ner.’’.

3 (b) CONFORMING REPEAL.—(1) Section 2308 of title

4 10, United States Code, is repealed.

5 (2) The table of sections at the beginning of chapter

6 137 of such title is amended by striking out the item relat7 ed to section 2308.

8 SEC. 41403. DETERMINATIONS AND DECISIONS.

9 Section 2310 of title 10, United States Code, is

10 amended to read as follows:

11 ‘‘§ 2310. Determinations and decisions

12 ‘‘(a) INDIVIDUAL OR CLASS DETERMINATIONS AND

13 DECISIONS AUTHORIZED.—Determinations and decisions

14 required to be made under this chapter by the head of

15 an agency may be made for an individual purchase or con16 tract or for a class of purchases or contracts. Such deter17 minations and decisions are final.

18 ‘‘(b) WRITTEN FINDINGS REQUIRED.—(1) Each de19 termination or decision under section 2306(e)(1), 2307(e),

20 or 2313(d)(2) of this title shall be based on a written find21 ing by the person making the determination or decision.

22 The finding shall set out facts and circumstances that sup23 port the determination or decision.

24 ‘‘(2) Each finding referred to in paragraph (1) shall

25 be final. The head of the agency making such finding shall
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1 maintain a copy of the finding for not less than 6 years

2 after the date of the determination or decision.’’.

3 SEC. 41404. UNDEFINITIZED CONTRACTUAL ACTIONS: RE4 STRICTIONS.

5 (a) CLARIFICATION OF LIMITATION.—Subsection (b)

6 of section 2326 of title 10, United States Code, is amend7 ed—

8 (1) in the subsection caption, by striking out

9 ‘‘AND EXPENDITURE’’;

10 (2) in paragraph (1)(B), by striking out ‘‘or ex11 pended’’;

12 (3) in paragraph (2), by striking out ‘‘expend’’

13 and inserting in lieu thereof ‘‘obligate’’; and

14 (4) in paragraph (3)—

15 (A) by striking out ‘‘expended’’ and insert16 ing in lieu thereof ‘‘obligated’’; and

17 (B) by striking out ‘‘expend’’ and inserting

18 in lieu thereof ‘‘obligate’’.

19 (b) WAIVER AUTHORITY.—Such subsection is amend20 ed—

21 (1) by redesignating paragraph (4) as para22 graph (5); and

23 (2) by inserting after paragraph (3) the follow24 ing new paragraph (4):
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1 ‘‘(4) The head of an agency may waive the provisions

2 of this subsection with respect to a contract of that agency

3 if such head of an agency determines that the waiver is

4 necessary in order to support a contingency operation.’’.

5 (c) INAPPLICABILITY OF RESTRICTIONS TO CON6 TRACTS WITHIN THE SIMPLIFIED ACQUISITION THRESH7 OLD.—Section 2326(g)(1)(B) of title 10, United States

8 Code, is amended by striking out ‘‘small purchase thresh9 old’’ and inserting in lieu thereof ‘‘simplified acquisition

10 threshold’’.

11 SEC. 41405. PRODUCTION SPECIAL TOOLING AND PRODUC12 TION SPECIAL TEST EQUIPMENT: CONTRACT

13 TERMS AND CONDITIONS.

14 (a) REPEAL.—Section 2329 of title 10, United States

15 Code, is repealed.

16 (b) TECHNICAL AMENDMENT.—The table of sections

17 at the beginning of chapter 137 of such title is amended

18 by striking out the item related to section 2329.

19 SEC. 41406. REGULATIONS FOR BIDS.

20 Section 2381(a) of title 10, United States Code, is

21 amended by striking out ‘‘(a) The Secretary’’ and all that

22 follows through the end of paragraph (1) and inserting

23 in lieu thereof the following:

24 ‘‘(a) The Secretary of Defense or the Secretary of

25 a military department may—
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1 ‘‘(1) prescribe regulations for the preparation,

2 submission, and opening of bids for contracts; and’’.

3 PART II—CIVILIAN AGENCY ACQUISITIONS

4 SEC. 41451. DEFINITIONS.

5 Section 309(c) of the Federal Property and Adminis6 trative Services Act of 1949 (41 U.S.C. 259(c)) is amend7 ed by striking out ‘‘and ‘supplies’ ’’ and inserting in lieu

8 thereof ‘‘ ‘supplies’, ‘commercial item’, ‘commercial compo9 nent’, ‘nondevelopmental item’, and ‘simplified acquisition

10 threshold’ ’’.

11 SEC. 41452. DELEGATION OF PROCUREMENT FUNCTIONS.

12 (a) AUTHORITY.—Title III of the Federal Property

13 and Administrative Services Act of 1949 (41 U.S.C. 251

14 et seq.) is amended—

15 (1) by redesignating sections 309 and 310 as

16 sections 312 and 313, respectively; and

17 (2) by inserting after section 308 the following

18 new section 309:

19 ‘‘DELEGATION

20 ‘‘SEC. 309. (a) IN GENERAL.—Except to the extent

21 expressly prohibited by another provision of law, an agen22 cy head may delegate, subject to his direction, to any other

23 officer or official of that agency, any power under this

24 title.

25 ‘‘(b) PROCUREMENTS FOR OR WITH OTHER AGEN26 CIES.—Subject to subsection (a), to facilitate the procure-
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1 ment of property and services covered by this title by each

2 executive agency for any other executive agency, and to

3 facilitate joint procurement by those executive agencies—

4 ‘‘(1) an agency head may, within his executive

5 agency, delegate functions and assign responsibilities

6 relating to procurement;

7 ‘‘(2) the heads of two or more executive agen8 cies may by agreement delegate procurement func9 tions and assign procurement responsibilities from

10 one executive agency to another of those executive

11 agencies or to an officer or civilian employee of an12 other of those executive agencies; and

13 ‘‘(3) the heads of two or more executive agen14 cies may create joint or combined offices to exercise

15 procurement functions and responsibilities.’’.

16 (b) CLERICAL AMENDMENT.—The table of contents

17 in the first section of such Act is amended by striking out

18 the items relating to sections 309 and 310 and inserting

19 in lieu thereof the following:

‘‘Sec. 309. Delegation.

‘‘Sec. 312. Definitions.

‘‘Sec. 313. Statutes not applicable.’’.

20 SEC. 41453. DETERMINATIONS AND DECISIONS.

21 (a) IN GENERAL.—Title III of the Federal Property

22 and Administrative Services Act of 1949 (41 U.S.C. 251

23 et seq.), as amended by section 41452, is further amended
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1 by inserting after section 309 the following new section

2 310:

3 ‘‘DETERMINATIONS AND DECISIONS

4 ‘‘SEC. 310. (a) INDIVIDUAL OR CLASS DETERMINA5 TIONS AND DECISIONS AUTHORIZED.—Determinations

6 and decisions required to be made under this title by an

7 agency head may be made for an individual purchase or

8 contract or for a class of purchases or contracts. Such de9 terminations and decisions are final.

10 ‘‘(b) WRITTEN FINDINGS REQUIRED.—(1) Each de11 termination under section 305(e) shall be based on a writ12 ten finding by the person making the determination or de13 cision. The finding shall set out facts and circumstances

14 that support the determination or decision.

15 ‘‘(2) Each finding referred to in paragraph (1) shall

16 be final. The agency head making such finding shall main17 tain a copy of the finding for not less than 6 years after

18 the date of the determination or decision.’’.

19 (b) CLERICAL AMENDMENT.—The table of contents

20 in the first section of such Act, as amended by section

21 41452, is further amended by inserting after the item re22 lating to section 309 the following:

‘‘Sec. 310. Determinations and decisions.’’.
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1 SEC. 41454. COOPERATIVE PURCHASING.

2 Subsection (b) of section 201 of the Federal Property

3 and Administrative Services Act of 1949 (40 U.S.C. 481),

4 is amended to read as follows:

5 ‘‘(b)(1) The Administrator shall, as far as prac6 ticable, provide any of the services specified in subsection

7 (a) of this section to any other Federal agency, mixed8 ownership Government corporation (as defined in section

9 9101 of title 31, United States Code), or the District of

10 Columbia, upon its request.

11 ‘‘(2)(A) The Administrator may provide for the use

12 of Federal supply schedules or other contracts by any of

13 the following entities upon request:

14 ‘‘(i) A State, any department or agency of a

15 State, and any political subdivision of a State, in16 cluding a local government.

17 ‘‘(ii) The District of Columbia.

18 ‘‘(iii) The Commonwealth of Puerto Rico.

19 ‘‘(iv) The government of an Indian tribe (as de20 fined in section 4(e) of the Indian Self-Determina21 tion and Education Assistance Act (25 U.S.C.

22 450b(e))).

23 ‘‘(B) Subparagraph (A) may not be construed to au24 thorize an entity referred to in that subparagraph to order

25 existing stock or inventory from federally owned and oper-
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1 ated, or federally owned and contractor operated, supply

2 depots, warehouses, or similar facilities.

3 ‘‘(3)(A) Upon the request of a qualified nonprofit

4 agency for the blind or other severely handicapped that

5 is to provide a commodity or service to the Federal Gov6 ernment under the Javits-Wagner-O’Day Act, the Admin7 istrator may provide any of the services specified in sub8 section (a) to such agency to the extent practicable.

9 ‘‘(B) A nonprofit agency receiving services under the

10 authority of subparagraph (A) shall use the services di11 rectly in making or providing an approved commodity or

12 approved service to the Federal Government.

13 ‘‘(C) In this paragraph:

14 ‘‘(i) The term ‘qualified nonprofit agency for

15 the blind or other severely handicapped’ means—

16 ‘‘(I) a qualified nonprofit agency for the

17 blind, as defined in section 5(3) of the Javits18 Wagner-O’Day Act (41 U.S.C. 48b(3)); and

19 ‘‘(II) a qualified nonprofit agency for other

20 severely handicapped, as defined in section 5(4)

21 of such Act (41 U.S.C. 48b(4)).

22 ‘‘(ii) The terms ‘approved commodity’ and ‘ap23 proved service’ mean a commodity and a service, re24 spectively, that has been determined by the Commit25 tee for Purchase from the Blind and Other Severely
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1 Handicapped under section 2 of the Javits-Wagner2 O’Day Act (41 U.S.C. 47) to be suitable for pro3 curement by the Federal Government.

4 ‘‘(iii) The term ‘Javits-Wagner-O’Day Act’

5 means the Act entitled ‘An Act to create a Commit6 tee on Purchases of Blind-made Products, and for

7 other purposes’, approved June 25, 1938 (41 U.S.C.

8 46–48c), commonly referred to as the Wagner9 O’Day Act, that was revised and reenacted in the

10 Act of June 23, 1971 (85 Stat. 77), commonly re11 ferred to as the Javits-Wagner-O’Day Act.’’.

12 TITLE XLII—CONTRACT

13 ADMINISTRATION

14 Subtitle A—Contract Payment

15 PART I—ARMED SERVICES ACQUISITIONS

16 SEC. 42001. CONTRACT FINANCING.

17 (a) REORGANIZATION OF PRINCIPAL AUTHORITY

18 PROVISION.—Section 2307 of title 10, United States

19 Code, is amended—

20 (1) by striking out the section heading and in21 serting in lieu thereof the following:

22 ‘‘§ 2307. Contract financing’’;

23 (2) by striking out ‘‘(a) The head of an agency’’

24 and inserting in lieu thereof ‘‘(b) PAYMENT AU25 THORITY.—The head of an agency’’;
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1 (3) by striking out ‘‘(b) Payments’’ and insert2 ing in lieu thereof ‘‘(d) PAYMENT AMOUNT.—Pay3 ments’’;

4 (4) by striking out ‘‘(c) Advance payments’’ and

5 inserting in lieu thereof ‘‘(e) SECURITY FOR AD6 VANCE PAYMENTS.—Advance payments’’;

7 (5) by striking out ‘‘(d)(1) The Secretary of

8 Defense’’ and inserting in lieu thereof ‘‘(f) CONDI9 TIONS FOR PROGRESS PAYMENTS.—(1) The Sec10 retary of Defense’’; and

11 (6) by striking out ‘‘(e)(1) In any case’’ and in12 serting in lieu thereof ‘‘(h) ACTION IN CASE OF

13 FRAUD.—(1) In any case’’.

14 (b) FINANCING POLICY.—Such section, as amended

15 by subsection (a), is further amended by inserting after

16 the section heading the following new subsection (a):

17 ‘‘(a) POLICY.—Payments authorized under this sec18 tion and made for financing purposes should be made peri19 odically or, when appropriate, on an advance basis and

20 should be so made in a timely manner to facilitate contract

21 performance while protecting the security interests of the

22 Government. Government financing shall be provided only

23 to the extent necessary to ensure prompt and efficient per24 formance and only after the availability of private financ25 ing is considered. A contractor’s use of funds received as
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1 contract financing and the contractor’s financial condition

2 shall be monitored. If the contractor is a small business

3 concern, special attention shall be given to meeting the

4 contractor’s financial need.’’.

5 (c) PERFORMANCE-BASED PAYMENTS.—Such sec6 tion, as amended by subsection (a), is further amended

7 by inserting after subsection (b) the following new sub8 section (c):

9 ‘‘(c) PERFORMANCE-BASED PAYMENTS.—Whenever

10 practicable, payments under subsection (b) shall be made

11 on any of the following bases:

12 ‘‘(1) Performance measured by objective, quan13 tifiable methods such as receipt of items by the Fed14 eral Government, work measurement, or statistical

15 process controls.

16 ‘‘(2) Accomplishment of events defined in the

17 program management plan.

18 ‘‘(3) Other quantifiable measures of results.’’.

19 (d) TERMINOLOGY CORRECTION.—Such section, as

20 amended by subsection (a)(2), is further amended in sub21 section (b)(2) by striking out ‘‘bid’’.

22 (e) EFFECTIVE DATE OF LIEN RELATED TO AD23 VANCE PAYMENTS.—Such section, as amended by sub24 section (a)(4), is further amended in subsection (e) by in25 serting before the period at the end of the third sentence
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1 the following: ‘‘and is effective immediately upon the first

2 advancement of funds without filing, notice, or any other

3 action by the United States’’.

4 (f) CONDITIONS FOR PROGRESS PAYMENTS.—Such

5 section, as amended by subsection (a)(5), is further

6 amended in subsection (f)—

7 (1) in the first sentence of paragraph (1), by

8 striking out ‘‘work, which’’ and all that follows

9 through ‘‘accomplished’’ and inserting in lieu thereof

10 ‘‘work accomplished that meets standards estab11 lished under the contract’’; and

12 (2) by striking out paragraph (3) and inserting

13 in lieu thereof the following:

14 ‘‘(3) This subsection applies to a contract for an

15 amount equal to or greater than the simplified acquisition

16 threshold.’’.

17 (g) NAVY CONTRACTS.—Such section, as amended by

18 subsection (a)(5), is further amended by inserting after

19 subsection (f) the following new subsection (g):

20 ‘‘(g) CERTAIN NAVY CONTRACTS.—(1) The Sec21 retary of the Navy shall provide that the rate for progress

22 payments on any contract awarded by the Secretary for

23 repair, maintenance, or overhaul of a naval vessel shall

24 be not less than—
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1 ‘‘(A) 95 percent, in the case of firms considered

2 to be small businesses; and

3 ‘‘(B) 90 percent, in the case of all other firms.

4 ‘‘(2) The Secretary of the Navy may advance to pri5 vate salvage companies such funds as the Secretary con6 siders necessary to provide for the immediate financing

7 of salvage operations. Advances under this paragraph shall

8 be made on terms that the Secretary considers adequate

9 for the protection of the United States.

10 ‘‘(3) The Secretary of the Navy shall ensure that,

11 when partial, progress, or other payments are made under

12 a contract for construction or conversion of a naval vessel,

13 the United States is secured by a lien upon work in

14 progress and on property acquired for performance of the

15 contract on account of all payments so made. The lien is

16 paramount to all other liens.’’.

17 (h) RELATIONSHIP TO PROMPT PAYMENT REQUIRE18 MENTS.—Section 2307(f) of title 10, United States Code,

19 as amended by subsection (f), is not intended to impair

20 or modify procedures required by the provisions of chapter

21 39 of title 31, United States Code, and the regulations

22 issued pursuant to such provisions of law, that relate to

23 progress payment requests, as such procedures are in ef24 fect on the date of the enactment of this Act.

25 (i) CONFORMING AND CLERICAL AMENDMENTS.—
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1 (1) CROSS REFERENCE.—Such section, as

2 amended by subsection (a), is further amended in

3 subsections (d) and (e) by striking out ‘‘subsection

4 (a)’’ and inserting in lieu thereof ‘‘subsection (b)’’.

5 (2) TABLE OF CONTENTS.—The table of sec6 tions at the beginning of chapter 137 of title 10,

7 United States Code, is amended by striking out the

8 item relating to section 2307 and inserting in lieu

9 thereof the following:

‘‘2307. Contract financing.’’.

10 (j) REPEAL OF SUPERSEDED PROVISIONS.—

11 (1) PROGRESS PAYMENTS UNDER CERTAIN

12 NAVY CONTRACTS.—

13 (A) REPEAL.—Section 7312 of title 10,

14 United States Code, is repealed.

15 (B) CLERICAL AMENDMENT.—The table of

16 sections at the beginning of chapter 633 of such

17 title is amended by striking out the item relat18 ing to section 7312.

19 (2) ADVANCEMENT OF PAYMENTS FOR NAVY

20 SALVAGE OPERATIONS.—

21 (A) REPEAL.—Section 7364 of such title is

22 repealed.

23 (B) CLERICAL AMENDMENT.—The table of

24 sections at the beginning of chapter 637 of such
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1 title is amended by striking out the item relat2 ing to section 7364.

3 (3) PARTIAL PAYMENTS UNDER NAVY CON4 TRACTS.—

5 (A) REPEAL.—Section 7521 of such title is

6 repealed.

7 (B) CLERICAL AMENDMENT.—The table of

8 sections at the beginning of chapter 645 of such

9 title is amended by striking out the item relat10 ing to section 7521.

11 SEC. 42002. CONTRACTS: VOUCHERING PROCEDURES.

12 (a) REPEAL.—Section 2355 of title 10, United States

13 Code, is repealed.

14 (b) CLERICAL AMENDMENT.—The table of sections

15 at the beginning of chapter 139 of such title is amended

16 by striking out the item relating to section 2355.

17 PART II—CIVILIAN AGENCY ACQUISITIONS

18 SEC. 42051. CONTRACT FINANCING.

19 (a) REORGANIZATION OF PRINCIPAL AUTHORITY

20 PROVISION.—Section 305 of the Federal Property and

21 Administrative Services Act of 1949 (41 U.S.C. 255) is

22 amended—

23 (1) by striking out the section heading and in24 serting in lieu thereof the following:
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1 ‘‘CONTRACT FINANCING’’;

2 (2) by striking out ‘‘(a) Any executive agency’’

3 and inserting in lieu thereof ‘‘(b) PAYMENT AU4 THORITY.—Any executive agency’’;

5 (3) by striking out ‘‘(b) Payments’’ and insert6 ing in lieu thereof ‘‘(d) PAYMENT AMOUNT.—Pay7 ments’’; and

8 (4) by striking out ‘‘(c) Advance payments’’ and

9 inserting in lieu thereof ‘‘(e) SECURITY FOR AD10 VANCE PAYMENTS.—Advance payments’’.

11 (b) FINANCING POLICY.—Such section, as amended

12 by subsection (a), is further amended by inserting after

13 the section heading the following new subsection (a):

14 ‘‘(a) POLICY.—Payments authorized under this sec15 tion and made for financing purposes should be made peri16 odically or, when appropriate, on an advance basis and

17 should be so made in a timely manner to facilitate contract

18 performance while protecting the security interests of the

19 Government. Government financing shall be provided only

20 to the extent necessary to ensure prompt and efficient per21 formance and only after the availability of private financ22 ing is considered. A contractor’s use of funds received as

23 contract financing and the contractor’s financial condition

24 shall be monitored. If the contractor is a small business
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1 concern, special attention shall be given to meeting the

2 contractor’s financial need.’’.

3 (c) PERFORMANCE-BASED PAYMENTS.—Such sec4 tion, as amended by subsection (a), is further amended

5 by inserting after subsection (b) the following new sub6 section (c):

7 ‘‘(c) PERFORMANCE-BASED PAYMENTS.—Whenever

8 practicable, payments under subsection (b) shall be made

9 on any of the following bases:

10 ‘‘(1) Performance measured by objective, quan11 tifiable methods such as receipt of items by the Fed12 eral Government, work measurement, or statistical

13 process controls.

14 ‘‘(2) Accomplishment of events defined in the

15 program management plan.

16 ‘‘(3) Other quantifiable measures of results.’’.

17 (d) TERMINOLOGY CORRECTION.—Such section, as

18 amended by subsection (a)(2), is further amended in sub19 section (b)(2) by striking out ‘‘bid’’.

20 (e) EFFECTIVE DATE OF LIEN RELATED TO AD21 VANCE PAYMENTS.—Such section, as amended by sub22 section (a)(4), is further amended in subsection (e) by in23 serting before the period at the end of the third sentence

24 the following: ‘‘and is effective immediately upon the first
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1 advancement of funds without filing, notice, or any other

2 action by the United States’’.

3 (f) REVISION OF CIVILIAN AGENCY PROVISION TO

4 ENSURE UNIFORM REQUIREMENTS FOR PROGRESS PAY5 MENTS.—

6 (1) IN GENERAL.—Such section, as amended by

7 subsection (a), is further amended by adding at the

8 end the following:

9 ‘‘(f) CONDITIONS FOR PROGRESS PAYMENTS.—(1)

10 The agency head shall ensure that any payment for work

11 in progress (including materials, labor, and other items)

12 under a contract of an executive agency that provides for

13 such payments is commensurate with the work accom14 plished that meets standards established under the con15 tract. The contractor shall provide such information and

16 evidence as the agency head determines necessary to per17 mit the agency head to carry out the preceding sentence.

18 ‘‘(2) The agency head shall ensure that progress pay19 ments referred to in paragraph (1) are not made for more

20 than 80 percent of the work accomplished under the con21 tract so long as the agency head has not made the contrac22 tual terms, specifications, and price definite.

23 ‘‘(3) This subsection applies to a contract for an

24 amount equal to or greater than the simplified acquisition

25 threshold.
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1 ‘‘(g) ACTION IN CASE OF FRAUD.—(1) In any case

2 in which the remedy coordination official of an executive

3 agency finds that there is substantial evidence that the

4 request of a contractor for advance, partial, or progress

5 payment under a contract awarded by that executive agen6 cy is based on fraud, the remedy coordination official shall

7 recommend that the agency head reduce or suspend fur8 ther payments to such contractor.

9 ‘‘(2) An agency head receiving a recommendation

10 under paragraph (1) in the case of a contractor’s request

11 for payment under a contract shall determine whether

12 there is substantial evidence that the request is based on

13 fraud. Upon making such a determination, the agency

14 head may reduce or suspend further payments to the con15 tractor under such contract.

16 ‘‘(3) The extent of any reduction or suspension of

17 payments by an agency head under paragraph (2) on the

18 basis of fraud shall be reasonably commensurate with the

19 anticipated loss to the United States resulting from the

20 fraud.

21 ‘‘(4) A written justification for each decision of the

22 agency head whether to reduce or suspend payments

23 under paragraph (2), and for each recommendation re24 ceived by the agency head in connection with such deci-
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1 sion, shall be prepared and be retained in the files of the

2 executive agency.

3 ‘‘(5) Each agency head shall prescribe procedures to

4 ensure that, before the agency head decides to reduce or

5 suspend payments in the case of a contractor under para6 graph (2), the contractor is afforded notice of the pro7 posed reduction or suspension and an opportunity to sub8 mit matters to the head of the agency in response to such

9 proposed reduction or suspension.

10 ‘‘(6) Not later than 180 days after the date on which

11 an agency head reduces or suspends payments to a con12 tractor under paragraph (2), the remedy coordination offi13 cial of the executive agency shall—

14 ‘‘(A) review the determination of fraud on

15 which the reduction or suspension is based; and

16 ‘‘(B) transmit a recommendation to the agency

17 head whether the suspension or reduction should

18 continue.

19 ‘‘(7) Each agency head who receives recommenda20 tions made by a remedy coordination official of the execu21 tive agency to reduce or suspend payments under para22 graph (2) during a fiscal year shall prepare for such year

23 a report that contains the recommendations, the actions

24 taken on the recommendations and the reasons for such

25 actions, and an assessment of the effects of such actions
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1 on the Federal Government. Any such report shall be

2 available to any Member of Congress upon request.

3 ‘‘(8) An agency head may not delegate responsibilities

4 under this subsection to any person in a position below

5 level IV of the Executive Schedule.

6 ‘‘(9) In this subsection, the term ‘remedy coordina7 tion official’, with respect to an executive agency, means

8 the person or entity in that executive agency who coordi9 nates within that executive agency the administration of

10 criminal, civil, administrative, and contractual remedies

11 resulting from investigations of fraud or corruption related

12 to procurement activities.’’.

13 (2) RELATIONSHIP TO PROMPT PAYMENT RE14 QUIREMENTS.—The amendment made by paragraph

15 (1) is not intended to impair or modify procedures

16 required by the provisions of chapter 39 of title 31,

17 United States Code, and the regulations issued pur18 suant to such provisions of law, that relate to

19 progress payment requests, as such procedures are

20 in effect on the date of the enactment of this Act.

21 (g) CONFORMING AND CLERICAL AMENDMENTS.—

22 (1) REFERENCE.—Section 305 of the Federal

23 Property and Administrative Services Act of 1949,

24 as amended by subsection (a), is further amended in
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1 subsections (d) and (e) by striking out ‘‘subsection

2 (a)’’ and inserting in lieu thereof ‘‘subsection (b)’’.

3 (2) TABLE OF CONTENTS.—The table of con4 tents in the first section of such Act is amended by

5 striking out the item relating to section 305 and in6 serting in lieu thereof the following:

‘‘Sec. 305. Contract financing.’’.

7 Subtitle B—Cost Principles

8 PART I—ARMED SERVICES ACQUISITIONS

9 SEC. 42101. ALLOWABLE CONTRACT COSTS.

10 (a) UNALLOWABILITY OF COSTS TO INFLUENCE

11 LOCAL LEGISLATIVE BODIES.—Subsection (e)(1)(B) of

12 section 2324 of title 10, United States Code, is amended

13 by striking out ‘‘or a State legislature’’ and inserting in

14 lieu thereof ‘‘, a State legislature, or a legislative body of

15 a political subdivision of a State’’.

16 (b) COMPTROLLER GENERAL EVALUATION.—Section

17 2324 of such title is amended by striking out subsection

18 (l).

19 (c) COVERED CONTRACT DEFINED.—Subsection (m)

20 of such section is amended to read as follows:

21 ‘‘(l)(1) In this section, the term ‘covered contract’

22 means a contract for an amount in excess of $500,000

23 that is entered into by the Department of Defense, except

24 that such term does not include a fixed-price contract

25 without cost incentives.
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1 ‘‘(2) Effective on October 1 of each year that is divis2 ible by 5, the amount set forth in paragraph (1) shall be

3 adjusted to the amount that is equal to the fiscal year

4 1994 constant dollar value of the amount set forth. An

5 amount, as so adjusted, that is not evenly divisible by

6 $50,000 shall be rounded to the nearest multiple of

7 $50,000. In the case of an amount that is evenly divisible

8 by $25,000 but is not evenly divisible by $50,000, the

9 amount shall be rounded to the next higher multiple of

10 $50,000.’’.

11 SEC. 42102. CONTRACT PROFIT CONTROLS DURING EMER12 GENCY PERIODS.

13 (a) REPEAL.—Section 2382 of title 10, United States

14 Code, is repealed.

15 (b) CLERICAL AMENDMENT.—The table of sections

16 at the beginning of chapter 141 of such title is amended

17 by striking out the item relating to section 2382.

18 PART II—CIVILIAN AGENCY ACQUISITIONS

19 SEC. 42151. ALLOWABLE CONTRACT COSTS.

20 (a) REVISION OF CIVILIAN AGENCY PROVISION TO

21 ENSURE UNIFORM TREATMENT OF CONTRACT COSTS.—

22 Section 306 of the Federal Property and Administrative

23 Services Act of 1949 (41 U.S.C. 256) is amended to read

24 as follows:
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1 ‘‘ALLOWABLE COSTS

2 ‘‘SEC. 306. (a) INDIRECT COST THAT VIOLATES A

3 FAR COST PRINCIPLE.—The head of an executive agency

4 shall require that a covered contract provide that if the

5 contractor submits to the executive agency a proposal for

6 settlement of indirect costs incurred by the contractor for

7 any period after such costs have been accrued and if that

8 proposal includes the submission of a cost which is unal9 lowable because the cost violates a cost principle in the

10 Federal Acquisition Regulation or an executive agency’s

11 supplement to the Federal Acquisition Regulation, the cost

12 shall be disallowed.

13 ‘‘(b) PENALTY FOR VIOLATION OF COST PRIN14 CIPLE.—(1) If the agency head determines that a cost

15 submitted by a contractor in its proposal for settlement

16 is expressly unallowable under a cost principle referred to

17 in subsection (a) that defines the allowability of specific

18 selected costs, the agency head shall assess a penalty

19 against the contractor in an amount equal to—

20 ‘‘(A) the amount of the disallowed cost allo21 cated to covered contracts for which a proposal for

22 settlement of indirect costs has been submitted; plus

23 ‘‘(B) interest (to be computed based on regula24 tions issued by the agency head) to compensate the

25 United States for the use of any funds which a con-
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•S 2211 PCS

1 tractor has been paid in excess of the amount to

2 which the contractor was entitled.

3 ‘‘(2) If the agency head determines that a proposal

4 for settlement of indirect costs submitted by a contractor

5 includes a cost determined to be unallowable in the case

6 of such contractor before the submission of such proposal,

7 the agency head shall assess a penalty against the contrac8 tor in an amount equal to two times the amount of the

9 disallowed cost allocated to covered contracts for which a

10 proposal for settlement of indirect costs has been submit11 ted.

12 ‘‘(c) WAIVER OF PENALTY.—In accordance with the

13 Federal Acquisition Regulation, the agency head may

14 waive a penalty under subsection (b) in the case of a con15 tractor’s proposal for settlement of indirect costs when—

16 ‘‘(1) the contractor withdraws the proposal be17 fore the formal initiation of an audit of the proposal

18 by the Federal Government and resubmits a revised

19 proposal;

20 ‘‘(2) the amount of unallowable costs subject to

21 the penalty is insignificant; or

22 ‘‘(3) the contractor demonstrates, to the con23 tracting officer’s satisfaction, that—

24 ‘‘(A) it has established appropriate policies

25 and personnel training and an internal control
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•S 2211 PCS

1 and review system that provide assurances that

2 unallowable costs subject to penalties are pre3 cluded from being included in the contractor’s

4 proposal for settlement of indirect costs; and

5 ‘‘(B) the unallowable costs subject to the

6 penalty were inadvertently incorporated into the

7 proposal.

8 ‘‘(d) APPLICABILITY OF CONTRACT DISPUTES PRO9 CEDURE TO DISALLOWANCE OF COST AND ASSESSMENT

10 OF PENALTY.—An action of an agency head under sub11 section (a) or (b)—

12 ‘‘(1) shall be considered a final decision for the

13 purposes of section 6 of the Contract Disputes Act

14 of 1978 (41 U.S.C. 605); and

15 ‘‘(2) is appealable in the manner provided in

16 section 7 of such Act.

17 ‘‘(e) SPECIFIC COSTS NOT ALLOWABLE.—(1) The

18 following costs are not allowable under a covered contract:

19 ‘‘(A) Costs of entertainment, including amuse20 ment, diversion, and social activities, and any costs

21 directly associated with such costs (such as tickets

22 to shows or sports events, meals, lodging, rentals,

23 transportation, and gratuities).

24 ‘‘(B) Costs incurred to influence (directly or in25 directly) legislative action on any matter pending be-
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•S 2211 PCS

1 fore Congress, a State legislature, or a legislative

2 body of a political subdivision of a State.

3 ‘‘(C) Costs incurred in defense of any civil or

4 criminal fraud proceeding or similar proceeding (in5 cluding filing of any false certification) brought by

6 the United States where the contractor is found lia7 ble or had pleaded nolo contendere to a charge of

8 fraud or similar proceeding (including filing of a

9 false certification).

10 ‘‘(D) Payments of fines and penalties resulting

11 from violations of, or failure to comply with, Fed12 eral, State, local, or foreign laws and regulations, ex13 cept when incurred as a result of compliance with

14 specific terms and conditions of the contract or spe15 cific written instructions from the contracting officer

16 authorizing in advance such payments in accordance

17 with the Federal Acquisition Regulation.

18 ‘‘(E) Costs of membership in any social, dining,

19 or country club or organization.

20 ‘‘(F) Costs of alcoholic beverages.

21 ‘‘(G) Contributions or donations, regardless of

22 the recipient.

23 ‘‘(H) Costs of advertising designed to promote

24 the contractor or its products.
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•S 2211 PCS

1 ‘‘(I) Costs of promotional items and memora2 bilia, including models, gifts, and souvenirs.

3 ‘‘(J) Costs for travel by commercial aircraft

4 which exceed the amount of the standard commercial

5 fare.

6 ‘‘(K) Costs incurred in making any payment

7 (commonly known as a ‘golden parachute payment’)

8 which is—

9 ‘‘(i) in an amount in excess of the normal

10 severance pay paid by the contractor to an em11 ployee upon termination of employment; and

12 ‘‘(ii) is paid to the employee contingent

13 upon, and following, a change in management

14 control over, or ownership of, the contractor or

15 a substantial portion of the contractor’s assets.

16 ‘‘(L) Costs of commercial insurance that pro17 tects against the costs of the contractor for correc18 tion of the contractor’s own defects in materials or

19 workmanship.

20 ‘‘(M) Costs of severance pay paid by the con21 tractor to foreign nationals employed by the contrac22 tor under a service contract performed outside the

23 United States, to the extent that the amount of sev24 erance pay paid in any case exceeds the amount paid

25 in the industry involved under the customary or pre-
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•S 2211 PCS

1 vailing practice for firms in that industry providing

2 similar services in the United States, as determined

3 in accordance with the Federal Acquisition Regula4 tion.

5 ‘‘(N) Costs of severance pay paid by the con6 tractor to a foreign national employed by the con7 tractor under a service contract performed in a for8 eign country if the termination of the employment of

9 the foreign national is the result of the closing of,

10 or the curtailment of activities at, a United States

11 facility in that country at the request of the govern12 ment of that country.

13 ‘‘(O) Costs incurred by a contractor in connec14 tion with any criminal, civil, or administrative pro15 ceeding commenced by the United States or a State,

16 to the extent provided in subsection (k).

17 ‘‘(2)(A) Subject to the availability of appropriations,

18 the head of an executive agency, in awarding a covered

19 contract, may waive in accordance with the Federal Acqui20 sition Regulation the application of the provisions of para21 graphs (1)(M) and (1)(N) to that contract if the agency

22 head determines that—

23 ‘‘(i) the application of such provisions to the

24 contract would adversely affect the continuation of a

25 program, project, or activity that provides significant
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•S 2211 PCS

1 support services for employees of the executive agen2 cy posted outside the United States;

3 ‘‘(ii) the contractor has taken (or has estab4 lished plans to take) appropriate actions within the

5 contractor’s control to minimize the amount and

6 number of incidents of the payment of severance pay

7 by the contractor to employees under the contract

8 who are foreign nationals; and

9 ‘‘(iii) the payment of severance pay is necessary

10 in order to comply with a law that is generally appli11 cable to a significant number of businesses in the

12 country in which the foreign national receiving the

13 payment performed services under the contract or is

14 necessary to comply with a collective bargaining

15 agreement.

16 ‘‘(B) The head of the executive agency concerned

17 shall include in the solicitation for a covered contract a

18 statement indicating—

19 ‘‘(i) that a waiver has been granted under sub20 paragraph (A) for the contract; or

21 ‘‘(ii) whether the agency head will consider

22 granting such a waiver, and, if the agency head will

23 consider granting a waiver, the criteria to be used in

24 granting the waiver.
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•S 2211 PCS

1 ‘‘(C) The agency head shall make the final determina2 tion regarding whether to grant a waiver under subpara3 graph (A) with respect to a covered contract before award

4 of the contract.

5 ‘‘(3) The head of each executive agency shall imple6 ment this section with respect to contracts of that execu7 tive agency in accordance with the Federal Acquisition

8 Regulation. The provisions of the Federal Acquisition ap9 plicable to the implementation of this section may include

10 definitions, exclusions, limitations, and qualifications.

11 ‘‘(f) REQUIRED REGULATIONS.—(1) The Federal Ac12 quisition Regulation referred to in section 25(c)(1) of the

13 Office of Federal Procurement Policy Act (41 U.S.C.

14 421(c)(1)) shall contain provisions on the allowability of

15 contractor costs. Such provisions shall define in detail and

16 in specific terms those costs which are unallowable, in

17 whole or in part, under covered contracts. The regulations

18 shall, at a minimum, clarify the cost principles applicable

19 to contractor costs of the following:

20 ‘‘(A) Air shows.

21 ‘‘(B) Membership in civic, community, and pro22 fessional organizations.

23 ‘‘(C) Recruitment.

24 ‘‘(D) Employee morale and welfare.
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•S 2211 PCS

1 ‘‘(E) Actions to influence (directly or indirectly)

2 executive branch action on regulatory and contract

3 matters (other than costs incurred in regard to con4 tract proposals pursuant to solicited or unsolicited

5 bids).

6 ‘‘(F) Community relations.

7 ‘‘(G) Dining facilities.

8 ‘‘(H) Professional and consulting services, in9 cluding legal services.

10 ‘‘(I) Compensation.

11 ‘‘(J) Selling and marketing.

12 ‘‘(K) Travel.

13 ‘‘(L) Public relations.

14 ‘‘(M) Hotel and meal expenses.

15 ‘‘(N) Expense of corporate aircraft.

16 ‘‘(O) Company-furnished automobiles.

17 ‘‘(P) Advertising.

18 ‘‘(2) The Federal Acquisition Regulation shall require

19 that a contracting officer not resolve any questioned costs

20 until the contracting officer has obtained—

21 ‘‘(A) adequate documentation with respect to

22 such costs; and

23 ‘‘(B) the opinion of the executive agency’s con24 tract auditor on the allowability of such costs.
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•S 2211 PCS

1 ‘‘(3) The Federal Acquisition Regulation shall pro2 vide that, to the maximum extent practicable, an executive

3 agency’s contract auditor be present at any negotiation or

4 meeting with the contractor regarding a determination of

5 the allowability of indirect costs of the contractor.

6 ‘‘(4) The Federal Acquisition Regulation shall require

7 that all categories of costs designated in the report of an

8 executive agency’s contract auditor as questioned with re9 spect to a proposal for settlement be resolved in such a

10 manner that the amount of the individual questioned costs

11 that are paid will be reflected in the settlement.

12 ‘‘(g) APPLICABILITY OF REQUIRED REGULATIONS TO

13 SUBCONTRACTORS.—The regulations prescribed to carry

14 out subsections (e) and (f)(1) shall require, to the maxi15 mum extent practicable, that such regulations apply to all

16 subcontractors of a covered contract.

17 ‘‘(h) CONTRACTOR CERTIFICATION REQUIRED.—(1)

18 A proposal for settlement of indirect costs applicable to

19 a covered contract shall include a certification by an offi20 cial of the contractor that, to the best of the certifying

21 official’s knowledge and belief, all indirect costs included

22 in the proposal are allowable. Any such certification shall

23 be in a form prescribed by the agency head concerned.

24 ‘‘(2) The agency head concerned may, in an excep25 tional case, waive the requirement for certification under
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•S 2211 PCS

1 paragraph (1) in the case of any contract if the agency

2 head—

3 ‘‘(A) determines in such case that it would be

4 in the interest of the United States to waive such

5 certification; and

6 ‘‘(B) states in writing the reasons for that de7 termination and makes such determination available

8 to the public.

9 ‘‘(i) PENALTIES FOR SUBMISSION OF COST KNOWN

10 AS NOT ALLOWABLE.—The submission to an executive

11 agency of a proposal for settlement of costs for any period

12 after such costs have been accrued that includes a cost

13 that is expressly specified by statute or regulation as being

14 unallowable, with the knowledge that such cost is unallow15 able, shall be subject to the provisions of section 287 of

16 title 18, United States Code, and section 3729 of title 31,

17 United States Code.

18 ‘‘(j) CONTRACTOR TO HAVE BURDEN OF PROOF.—

19 In a proceeding before a board of contract appeals, the

20 United States Court of Federal Claims, or any other Fed21 eral court in which the reasonableness of indirect costs for

22 which a contractor seeks reimbursement from the United

23 States is in issue, the burden of proof shall be upon the

24 contractor to establish that those costs are reasonable.
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•S 2211 PCS

1 ‘‘(k) PROCEEDING COSTS NOT ALLOWABLE.—(1)

2 Except as otherwise provided in this subsection, costs in3 curred by a contractor in connection with any criminal,

4 civil, or administrative proceeding commenced by the

5 United States or a State are not allowable as reimbursable

6 costs under a covered contract if the proceeding (A) re7 lates to a violation of, or failure to comply with, a Federal

8 or State statute or regulation, and (B) results in a disposi9 tion described in paragraph (2).

10 ‘‘(2) A disposition referred to in paragraph (1)(B) is

11 any of the following:

12 ‘‘(A) In the case of a criminal proceeding, a

13 conviction (including a conviction pursuant to a plea

14 of nolo contendere) by reason of the violation or fail15 ure referred to in paragraph (1).

16 ‘‘(B) In the case of a civil or administrative

17 proceeding involving an allegation of fraud or similar

18 misconduct, a determination of contractor liability

19 on the basis of the violation or failure referred to in

20 paragraph (1).

21 ‘‘(C) In the case of any civil or administrative

22 proceeding, the imposition of a monetary penalty by

23 reason of the violation or failure referred to in para24 graph (1).

25 ‘‘(D) A final decision—
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•S 2211 PCS

1 ‘‘(i) to debar or suspend the contractor,

2 ‘‘(ii) to rescind or void the contract, or

3 ‘‘(iii) to terminate the contract for default,

4 by reason of the violation or failure referred to in

5 paragraph (1).

6 ‘‘(E) A disposition of the proceeding by consent

7 or compromise if such action could have resulted in

8 a disposition described in subparagraph (A), (B),

9 (C), or (D).

10 ‘‘(3) In the case of a proceeding referred to in para11 graph (1) that is commenced by the United States and

12 is resolved by consent or compromise pursuant to an

13 agreement entered into by a contractor and the United

14 States, the costs incurred by the contractor in connection

15 with such proceeding that are otherwise not allowable as

16 reimbursable costs under such paragraph may be allowed

17 to the extent specifically provided in such agreement.

18 ‘‘(4) In the case of a proceeding referred to in para19 graph (1) that is commenced by a State, the agency head

20 that awarded the covered contract involved in the proceed21 ing may allow the costs incurred by the contractor in con22 nection with such proceeding as reimbursable costs if the

23 agency head determines, under regulations prescribed by

24 such agency head, that the costs were incurred as a result
528

•S 2211 PCS

1 of (A) a specific term or condition of the contract, or (B)

2 specific written instructions of the agency.

3 ‘‘(5)(A) Except as provided in subparagraph (C),

4 costs incurred by a contractor in connection with a crimi5 nal, civil, or administrative proceeding commenced by the

6 United States or a State in connection with a covered con7 tract may be allowed as reimbursable costs under the con8 tract if such costs are not disallowable under paragraph

9 (1), but only to the extent provided in subparagraph (B).

10 ‘‘(B)(i) The amount of the costs allowable under sub11 paragraph (A) in any case may not exceed the amount

12 equal to 80 percent of the amount of the costs incurred,

13 to the extent that such costs are determined to be other14 wise allowable and allocable under the Federal Acquisition

15 Regulations.

16 ‘‘(ii) Regulations issued for the purpose of clause (i)

17 shall provide for appropriate consideration of the complex18 ity of procurement litigation, generally accepted principles

19 governing the award of legal fees in civil actions involving

20 the United States as a party, and such other factors as

21 may be appropriate.

22 ‘‘(C) In the case of a proceeding referred to in sub23 paragraph (A), contractor costs otherwise allowable as re24 imbursable costs under this paragraph are not allowable

25 if (i) such proceeding involves the same contractor mis-
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•S 2211 PCS

1 conduct alleged as the basis of another criminal, civil, or

2 administrative proceeding, and (ii) the costs of such other

3 proceeding are not allowable under paragraph (1).

4 ‘‘(6) In this subsection:

5 ‘‘(A) The term ‘proceeding’ includes an inves6 tigation.

7 ‘‘(B) The term ‘costs’, with respect to a pro8 ceeding—

9 ‘‘(i) means all costs incurred by a contrac10 tor, whether before or after the commencement

11 of any such proceeding; and

12 ‘‘(ii) includes—

13 ‘‘(I) administrative and clerical ex14 penses;

15 ‘‘(II) the cost of legal services, includ16 ing legal services performed by an em17 ployee of the contractor;

18 ‘‘(III) the cost of the services of ac19 countants and consultants retained by the

20 contractor; and

21 ‘‘(IV) the pay of directors, officers,

22 and employees of the contractor for time

23 devoted by such directors, officers, and em24 ployees to such proceeding.
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1 ‘‘(C) The term ‘penalty’ does not include res2 titution, reimbursement, or compensatory damages.

3 ‘‘(l) COVERED CONTRACT DEFINED.—(1) In this sec4 tion, the term ‘covered contract’ means a contract for an

5 amount in excess of $500,000 that is entered into by an

6 executive agency, except that such term does not include

7 a fixed-price contract without cost incentives.

8 ‘‘(2) Effective on October 1 of each year that is divis9 ible by 5, the amount set forth in paragraph (1) shall be

10 adjusted to the amount that is equal to the fiscal year

11 1994 constant dollar value of the amount set forth. An

12 amount, as so adjusted, that is not evenly divisible by

13 $50,000 shall be rounded to the nearest multiple of

14 $50,000. In the case of an amount that is evenly divisible

15 by $25,000 but is not evenly divisible by $50,000, the

16 amount shall be rounded to the next higher multiple of

17 $50,000.’’.

18 (b) CLERICAL AMENDMENT.—The table of contents

19 in the first section of such Act is amended by striking out

20 the item relating to section 306 and inserting in lieu there21 of the following:

‘‘Sec. 306. Allowable costs.’’.
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1 PART III—ACQUISITIONS GENERALLY

2 SEC. 42191. TRAVEL EXPENSES OF GOVERNMENT CONTRAC3 TORS.

4 Section 24 of the Office of Federal Procurement Pol5 icy Act (41 U.S.C. 420) is repealed.

6 SEC. 42192. UNALLOWABILITY OF ENTERTAINMENT COSTS

7 UNDER COVERED CONTRACTS.

8 Not later than 90 days after the date of the enact9 ment of this Act, the Federal Acquisition Regulatory

10 Council shall amend the cost principle in the Federal Ac11 quisition Regulation that is set out in section 31.205–14

12 of title 48, Code of Federal Regulations, relating to

13 unallowability of entertainment costs—

14 (1) by inserting in the cost principle a state15 ment that costs made specifically unallowable under

16 that cost principle are not allowable under any other

17 cost principle; and

18 (2) by striking out ‘‘(but see 31.205–1 and

19 31.205–13)’’.

20 Subtitle C—Audit and Access to

21 Records

22 PART I—ARMED SERVICES ACQUISITIONS

23 SEC. 42201. CONSOLIDATION AND REVISION OF AUTHORITY

24 TO EXAMINE RECORDS OF CONTRACTORS.

25 (a) AUTHORITY.—
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1 (1) IN GENERAL.—Section 2313 of title 10,

2 United States Code, is amended to read as follows:

3 ‘‘§ 2313. Examination of records of contractor

4 ‘‘(a) AGENCY AUTHORITY.—The head of an agency,

5 acting through an authorized representative—

6 ‘‘(1) is entitled to inspect the plant and audit

7 the records of—

8 ‘‘(A) a contractor performing a cost-reim9 bursement, incentive, time-and-materials, labor10 hour, or price-redeterminable contract, or any

11 combination of such contracts, made by that

12 agency under this chapter; and

13 ‘‘(B) a subcontractor performing any cost14 reimbursement, incentive, time-and-materials,

15 labor-hour, or price-redeterminable subcontract

16 under a contract referred to in subparagraph

17 (A) or under any combination of such contracts;

18 and

19 ‘‘(2) shall, for the purpose of evaluating the ac20 curacy, completeness, and currency of cost or pricing

21 data required to be submitted pursuant to section

22 2306a of this title with respect to a contract or sub23 contract, have the right to examine all records of the

24 contractor or subcontractor related to—
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1 ‘‘(A) the proposal for the contract or sub2 contract;

3 ‘‘(B) the discussions conducted on the pro4 posal;

5 ‘‘(C) pricing of the contract or subcontract;

6 or

7 ‘‘(D) performance of the contract or sub8 contract.

9 ‘‘(b) LIMITATION ON PREAWARD AUDITS RELATING

10 TO INDIRECT COSTS.—The head of an agency may not

11 perform a preaward audit to evaluate proposed indirect

12 costs under any contract, subcontract, or modification to

13 be entered into in accordance with this chapter in any case

14 in which the contracting officer determines that the objec15 tives of the audit can reasonably be met by accepting the

16 results of an audit conducted by any other department or

17 agency of the Federal Government within one year preced18 ing the date of the contracting officer’s determination.

19 ‘‘(c) SUBPOENA POWER.—(1) The Director of the

20 Defense Contract Audit Agency (or any successor agency)

21 may require by subpoena the production of records of a

22 contractor, access to which is provided to the Secretary

23 of Defense or Secretary of a military department by sub24 section (a).
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•S 2211 PCS

1 ‘‘(2) Any such subpoena, in the case of contumacy

2 or refusal to obey, shall be enforceable by order of an ap3 propriate United States district court.

4 ‘‘(3) The authority provided by paragraph (1) may

5 not be redelegated.

6 ‘‘(4) The Director (or any successor official) shall

7 submit an annual report to the Secretary of Defense on

8 the exercise of such authority during the preceding year

9 and the reasons why such authority was exercised in any

10 instance. The Secretary shall forward a copy of each such

11 report to the Committees on Armed Services of the Senate

12 and House of Representatives.

13 ‘‘(d) COMPTROLLER GENERAL AUTHORITY.—(1) Ex14 cept as provided in paragraph (2), each contract awarded

15 after using procedures other than sealed bid procedures

16 shall provide that the Comptroller General and his rep17 resentatives are entitled to examine any records of the

18 contractor, or any of its subcontractors, that directly per19 tain to, and involve transactions relating to, the contract

20 or subcontract.

21 ‘‘(2) Paragraph (1) does not apply to a contract or

22 subcontract with a foreign contractor or foreign sub23 contractor if the head of the agency concerned determines,

24 with the concurrence of the Comptroller General or his

25 designee, that the application of that paragraph to the
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1 contract or subcontract would not be in the public interest.

2 However, the concurrence of the Comptroller General or

3 his designee is not required—

4 ‘‘(A) where the contractor or subcontractor is a

5 foreign government or agency thereof or is precluded

6 by the laws of the country involved from making its

7 records available for examination; and

8 ‘‘(B) where the head of the agency determines,

9 after taking into account the price and availability of

10 the property and services from United States

11 sources, that the public interest would be best served

12 by not applying paragraph (1).

13 ‘‘(3) Paragraph (1) may not be construed to require

14 a contractor or subcontractor to create or maintain any

15 record that the contractor or subcontractor does not main16 tain in the ordinary course of business or pursuant to an17 other provision of law.

18 ‘‘(e) LIMITATION.—The right of the head of an agen19 cy under subsection (a), and the right of the Comptroller

20 General under subsection (d), with respect to a contract

21 or subcontract shall expire three years after final payment

22 under such contract or subcontract.

23 ‘‘(f) INAPPLICABILITY TO CERTAIN CONTRACTS.—

24 This section is inapplicable with respect to the following

25 contracts:
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•S 2211 PCS

1 ‘‘(1) Contracts for utility services at rates not

2 exceeding those established to apply uniformly to the

3 public, plus any applicable reasonable connection

4 charge.

5 ‘‘(g) RECORDS DEFINED.—In this section, the term

6 ‘records’ includes books, documents, accounting proce7 dures and practices, and other data, regardless of type and

8 regardless of whether such items are in written form, in

9 the form of computer data, or in any other form.’’.

10 (2) CLERICAL AMENDMENT.—The item relating

11 to such section in the table of sections at the begin12 ning of chapter 137 of title 10, United States Code,

13 is amended to read as follows:

‘‘2313. Examination of records of contractor.’’.

14 (b) REPEAL OF SUPERSEDED PROVISION.—

15 (1) REPEAL.—Section 2406 of title 10, United

16 States Code, is repealed.

17 (2) CLERICAL AMENDMENT.—The table of sec18 tions at the beginning of chapter 141 of such title

19 is amended by striking out the item relating to sec20 tion 2406.

21 PART II—CIVILIAN AGENCY ACQUISITIONS

22 SEC. 42251. AUTHORITY TO EXAMINE RECORDS OF CON23 TRACTORS.

24 (a) AUTHORITY.—
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1 (1) IN GENERAL.—Title III of the Federal

2 Property and Administrative Services Act of 1949

3 (41 U.S.C. 251 et seq.), as amended by section

4 41151(a), is further amended by inserting after sec5 tion 304A the following new section:

6 ‘‘EXAMINATION OF RECORDS OF CONTRACTOR

7 ‘‘SEC. 304B. (a) AGENCY AUTHORITY.—The head of

8 an executive agency, acting through an authorized rep9 resentative—

10 ‘‘(1) is entitled to inspect the plant and audit

11 the records of—

12 ‘‘(A) a contractor performing a cost-reim13 bursement, incentive, time-and-materials, labor14 hour, or price-redeterminable contract, or any

15 combination of such contracts, made by that ex16 ecutive agency under this title; and

17 ‘‘(B) a subcontractor performing any cost18 reimbursement, incentive, time-and-materials,

19 labor-hour, or price-redeterminable subcontract

20 under a contract referred to in subparagraph

21 (A) or under any combination of such contracts;

22 and

23 ‘‘(2) shall, for the purpose of evaluating the ac24 curacy, completeness, and currency of cost or pricing

25 data required to be submitted pursuant to section

26 304A with respect to a contract or subcontract, have
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•S 2211 PCS

1 the right to examine all records of the contractor or

2 subcontractor related to—

3 ‘‘(A) the proposal for the contract or sub4 contract;

5 ‘‘(B) the discussions conducted on the pro6 posal;

7 ‘‘(C) pricing of the contract or subcontract;

8 or

9 ‘‘(D) performance of the contract or sub10 contract.

11 ‘‘(b) LIMITATION ON PREAWARD AUDITS RELATING

12 TO INDIRECT COSTS.—The agency head may not perform

13 a preaward audit to evaluate proposed indirect costs under

14 any contract, subcontract, or modification to be entered

15 into in accordance with this title in any case in which the

16 contracting officer determines that the objectives of the

17 audit can reasonably be met by accepting the results of

18 an audit conducted by any other department or agency

19 of the Federal Government within one year preceding the

20 date of the contracting officer’s determination.

21 ‘‘(c) SUBPOENA POWER.—(1) The agency head may

22 require by subpoena the production of records of a con23 tractor, access to which is provided by subsection (a).
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•S 2211 PCS

1 ‘‘(2) Any such subpoena, in the case of contumacy

2 or refusal to obey, shall be enforceable by order of an ap3 propriate United States district court.

4 ‘‘(3) The authority provided by paragraph (1) may

5 not be delegated.

6 ‘‘(4) In the year following a year in which the head

7 of an executive agency exercises the authority provided in

8 paragraph (1), the agency head shall submit to the Com9 mittee on Governmental Affairs of the Senate and the

10 Committee on Government Operations of the House of

11 Representatives a report on the exercise of such authority

12 during such preceding year and the reasons why such au13 thority was exercised in any instance.

14 ‘‘(d) COMPTROLLER GENERAL AUTHORITY.—(1) Ex15 cept as provided in paragraph (2), each contract awarded

16 after using procedures other than sealed bid procedures

17 shall provide that the Comptroller General and his rep18 resentatives are entitled to examine any records of the

19 contractor, or any of its subcontractors, that directly per20 tain to, and involve transactions relating to, the contract

21 or subcontract.

22 ‘‘(2) Paragraph (1) does not apply to a contract or

23 subcontract with a foreign contractor or foreign sub24 contractor if the agency head concerned determines, with

25 the concurrence of the Comptroller General or his des-
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•S 2211 PCS

1 ignee, that the application of that paragraph to the con2 tract or subcontract would not be in the public interest.

3 However, the concurrence of the Comptroller General or

4 his designee is not required—

5 ‘‘(A) where the contractor or subcontractor is a

6 foreign government or agency thereof or is precluded

7 by the laws of the country involved from making its

8 records available for examination; and

9 ‘‘(B) where the agency head determines, after

10 taking into account the price and availability of the

11 property and services from United States sources,

12 that the public interest would be best served by not

13 applying paragraph (1).

14 ‘‘(3) Paragraph (1) may not be construed to require

15 a contractor or subcontractor to create or maintain any

16 record that the contractor or subcontractor does not main17 tain in the ordinary course of business or pursuant to an18 other provision of law.

19 ‘‘(e) LIMITATION.—The right of an agency head

20 under subsection (a), and the right of the Comptroller

21 General under subsection (d), with respect to a contract

22 or subcontract shall expire three years after final payment

23 under such contract or subcontract.
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1 ‘‘(f) INAPPLICABILITY TO CERTAIN CONTRACTS.—

2 This section is inapplicable with respect to the following

3 contracts:

4 ‘‘(1) CONTRACTS.—For utility services at rates

5 not exceeding those established to apply uniformly to

6 the public, plus any applicable reasonable connection

7 charge.

8 ‘‘(g) RECORDS DEFINED.—In this section, the term

9 ‘records’ includes books, documents, accounting proce10 dures and practices, and other data, regardless of type and

11 regardless of whether such items are in written form, in

12 the form of computer data, or in any other form.’’.

13 (2) CLERICAL AMENDMENT.—The table of con14 tents in the first section of such Act, as amended by

15 section 41151(b), is further amended by inserting

16 after the item relating to section 304A the following:

‘‘Sec. 304B. Examination of records of contractor.’’.

17 (b) REPEAL OF SUPERSEDED PROVISION.—Section

18 304 of the Federal Property and Administrative Services

19 Act of 1949 (41 U.S.C. 254) is amended by striking out

20 subsection (c).

21 Subtitle D—Cost Accounting

22 Standards

23 SEC. 42301. EXCEPTIONS TO COVERAGE.

24 Section 26(f)(2) of the Office of Federal Procurement

25 Policy Act (41 U.S.C. 422(f)(2)) is amended—
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1 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’;

2 (2) by striking out ‘‘, other than contracts or

3 subcontracts’’ and all that follows and inserting in

4 lieu thereof a period; and

5 (3) by inserting at the end the following:

6 ‘‘(B) Subparagraph (A) does not apply to the follow7 ing contracts or subcontracts:

8 ‘‘(i) Contracts or subcontracts where the price

9 negotiated is based on established catalog or market

10 prices of commercial items sold in substantial quan11 tities to the general public.

12 ‘‘(ii) Contracts or subcontracts where the price

13 negotiated is based on prices set by law or regula14 tion.

15 ‘‘(iii) Any other firm fixed-price contract or

16 subcontract for commercial items which is excepted

17 from the requirement to provide cost or pricing data

18 pursuant to subsection (b) or (d) of section 2306a

19 of title 10, United States Code, or subsection (b) or

20 (d) of section 304A of the Federal Property and Ad21 ministrative Services Act of 1949.

22 ‘‘(C) In this paragraph, the term ‘subcontract’ in23 cludes a transfer of commercial items between divisions,

24 subsidiaries, or affiliates of a contractor.’’.
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1 SEC. 42302. REPEAL OF OBSOLETE DEADLINE REGARDING

2 PROCEDURAL REGULATIONS FOR THE COST

3 ACCOUNTING STANDARDS BOARD.

4 Section 26(f)(3) of the Office of Federal Procurement

5 Policy Act (41 U.S.C. 422(f)(3)) is amended in the first

6 sentence by striking out ‘‘Not later than 180 days after

7 the date of the enactment of this section, the Adminis8 trator’’ and inserting in lieu thereof ‘‘The Administrator’’.

9 Subtitle E—Administration of Con10 tract Provisions Relating to

11 Price, Delivery, and Product

12 Quality

13 PART I—ARMED SERVICES ACQUISITIONS

14 SEC. 42401. PROCUREMENT OF CRITICAL AIRCRAFT AND

15 SHIP SPARE PARTS; QUALITY CONTROL.

16 (a) REPEAL.—Section 2383 of title 10, United States

17 Code, is repealed.

18 (b) CLERICAL AMENDMENT.—The table of sections

19 at the beginning of chapter 141 of such title is amended

20 by striking out the item relating to section 2383.

21 SEC. 42402. CONTRACTOR GUARANTEES REGARDING WEAP22 ON SYSTEMS.

23 Section 2403(h) of title 10, United States Code, is

24 amended—

25 (1) by redesignating paragraph (2) as para26 graph (3); and
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1 (2) by inserting after paragraph (1) the follow2 ing new paragraph (2):

3 ‘‘(2) The regulations shall include the following:

4 ‘‘(A) Guidelines for negotiating contractor guar5 antees that are reasonable and cost effective, as de6 termined on the basis of the likelihood of defects and

7 the estimated cost of correcting such defects.

8 ‘‘(B) Procedures for administering contractor

9 guarantees.

10 ‘‘(C) Guidelines for determining the cases in

11 which it may be appropriate to waive the require12 ments of this section.’’.

13 PART II—ACQUISITIONS GENERALLY

14 SEC. 42451. SECTION 3737 OF THE REVISED STATUTES: EX15 PANSION OF AUTHORITY TO PROHIBIT

16 SETOFFS AGAINST ASSIGNEES; REORGANIZA17 TION OF SECTION; REVISION OF OBSOLETE

18 PROVISIONS.

19 Section 3737 of the Revised Statutes (41 U.S.C. 15)

20 is amended to read as follows:

21 ‘‘SEC. 3737. (a) No contract or order, or any interest

22 therein, shall be transferred by the party to whom such

23 contract or order is given to any other party, and any such

24 transfer shall cause the annulment of the contract or order

25 transferred, so far as the United States is concerned. All
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1 rights of action, however, for any breach of such contract

2 by the contracting parties, are reserved to the United

3 States.

4 ‘‘(b) The provisions of subsection (a) shall not apply

5 in any case in which the moneys due or to become due

6 from the United States or from any agency or department

7 thereof, under a contract providing for payments aggre8 gating $1,000 or more, are assigned to a bank, trust com9 pany, or other financing institution, including any Federal

10 lending agency, provided:

11 ‘‘(1) That, in the case of any contract entered

12 into after October 9, 1940, no claim shall be as13 signed if it arises under a contract which forbids

14 such assignment.

15 ‘‘(2) That, unless otherwise expressly permitted

16 by such contract, any such assignment shall cover all

17 amounts payable under such contract and not al18 ready paid, shall not be made to more than one

19 party, and shall not be subject to further assign20 ment, except that any such assignment may be made

21 to one party as agent or trustee for two or more

22 parties participating in such financing.

23 ‘‘(3) That, in the event of any such assignment,

24 the assignee thereof shall file written notice of the
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1 assignment together with a true copy of the instru2 ment of the assignment with—

3 ‘‘(A) the contracting officer or the head of

4 his department or agency;

5 ‘‘(B) the surety or sureties upon the bond

6 or bonds, if any, in connection with such con7 tract; and

8 ‘‘(C) the disbursing officer, if any, des9 ignated in such contract to make payment.

10 ‘‘(c) Notwithstanding any law to the contrary govern11 ing the validity of assignments, any assignment pursuant

12 to this section shall constitute a valid assignment for all

13 purposes.

14 ‘‘(d) In any case in which moneys due or to become

15 due under any contract are or have been assigned pursu16 ant to this section, no liability of any nature of the as17 signor to the United States or any department or agency

18 thereof, whether arising from or independently of such

19 contract, shall create or impose any liability on the part

20 of the assignee to make restitution, refund, or repayment

21 to the United States of any amount heretofore since July

22 1, 1950, or hereafter received under the assignment.

23 ‘‘(e) Any contract of the Department of Defense, the

24 General Services Administration, the Department of En25 ergy, or any other department or agency of the United
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1 States designated by the President, except any such con2 tract under which full payment has been made, may, upon

3 a determination of need by the President, provide or be

4 amended without consideration to provide that payments

5 to be made to the assignee of any moneys due or to become

6 due under such contract shall not be subject to reduction

7 or setoff. Each such determination of need shall be pub8 lished in the Federal Register.

9 ‘‘(f) If a provision described in subsection (e) or a

10 provision to the same general effect has been at any time

11 heretofore or is hereafter included or inserted in any such

12 contract, payments to be made thereafter to an assignee

13 of any moneys due or to become due under such contract

14 shall not be subject to reduction or setoff for any liability

15 of any nature of the assignor to the United States or any

16 department or agency thereof which arises independently

17 of such contract, or hereafter for any liability of the as18 signor on account of—

19 ‘‘(1) renegotiation under any renegotiation stat20 ute or under any statutory renegotiation article in

21 the contract;

22 ‘‘(2) fines;

23 ‘‘(3) penalties (which term does not include

24 amounts which may be collected or withheld from
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1 the assignor in accordance with or for failure to

2 comply with the terms of the contract); or

3 ‘‘(4) taxes, social security contributions, or the

4 withholding or non withholding of taxes or social se5 curity contributions, whether arising from or inde6 pendently of such contract.

7 ‘‘(g) Except as herein otherwise provided, nothing in

8 this section shall be deemed to affect or impair rights of

9 obligations heretofore accrued.’’.

10 SEC. 42452. REPEAL OF REQUIREMENT FOR DEPOSIT OF

11 CONTRACTS WITH GAO.

12 Section 3743 of the Revised Statutes (41 U.S.C. 20)

13 is repealed.

14 Subtitle F—Claims and Disputes

15 PART I—ARMED SERVICES ACQUISITIONS

16 SEC. 42501. CERTIFICATION OF CONTRACT CLAIMS.

17 (a) DOD CERTIFICATION REQUIREMENT IN CON18 FLICT WITH GOVERNMENTWIDE REQUIREMENT.—

19 (1) INAPPLICABILITY OF REQUIREMENT TO

20 CONTRACT CLAIMS.—Section 2410 of title 10,

21 United States Code, is amended to read as follows:

22 ‘‘§ 2410. Requests for equitable adjustment or other

23 relief: certification

24 ‘‘(a) CERTIFICATION REQUIREMENT.—A request for

25 equitable adjustment to contract terms or request for re-
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1 lief under Public Law 85–804 (50 U.S.C. 1431 et seq.)

2 that exceeds the simplified acquisition threshold may not

3 be paid unless a person authorized to certify the request

4 on behalf of the contractor certifies, at the time the re5 quest is submitted, that—

6 ‘‘(1) the request is made in good faith, and

7 ‘‘(2) the supporting data are accurate and com8 plete to the best of that person’s knowledge and be9 lief.’’.

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions at the beginning of chapter 141 of such title

12 is amended by striking out the item relating to sec13 tion 2410 and inserting in lieu thereof the following:

‘‘2410. Requests for equitable adjustment or other relief: certification.’’.

14 (b) RESTRICTION ON LEGISLATIVE PAYMENT OF

15 CLAIMS.—Section 2410 of title 10, United States Code,

16 as amended by subsection (a), is further amended by add17 ing at the end the following new subsection:

18 ‘‘(b) RESTRICTION ON LEGISLATIVE PAYMENT OF

19 CLAIMS.—In the case of a contract of an agency named

20 in section 2303(a) of this title, no provision of a law en21 acted after September 30, 1994, that directs the payment

22 of a particular claim under such contract, a particular re23 quest for equitable adjustment to any term of such con24 tract, or a particular request for relief under Public Law
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1 85–804 (50 U.S.C. 1431 et seq.) regarding such contract

2 may be implemented unless such provision of law—

3 ‘‘(1) specifically refers to this subsection; and

4 ‘‘(2) specifically states that this subsection does

5 not apply with respect to the payment directed by

6 that provision of law.’’.

7 (c) DEFINITION.—Section 2410, as amended by sub8 sections (a) and (b), is further amended by adding at the

9 end the following:

10 ‘‘(c) DEFINITION.—In this section, the term ‘sim11 plified acquisition threshold’ has the meaning given that

12 term in section 2302(4) of this title.’’.

13 (d) REPEAL OF RELATED PROVISIONS.—

14 (1) CERTIFICATION REGULATIONS FOR CON15 TRACT CLAIMS EXCEEDING $100,000.—

16 (A) REPEAL.—Section 2410e of title 10,

17 United States Code, is repealed.

18 (B) CLERICAL AMENDMENT.—The table of

19 sections at the beginning of chapter 141 of such

20 title is amended by striking out the item relat21 ing to section 2410e.

22 (2) CONFORMING REPEAL.—Section 813(b) of

23 the National Defense Authorization Act for Fiscal

24 Year 1993 (Public Law 102–484, 106 Stat. 2453),

25 is repealed.
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1 SEC. 42502. SHIPBUILDING CLAIMS.

2 (a) LIMITATION ON PERIOD FOR SUBMISSION.—

3 (1) INCREASED PERIOD.—Subsection (a) of sec4 tion 2405 of title 10, United States Code, is amend5 ed—

6 (A) by striking out ‘‘after December 7,

7 1983,’’ and inserting in lieu thereof ‘‘on or

8 after the date of the enactment of the Federal

9 Acquisition Streamlining Act of 1994’’; and

10 (B) by striking out ‘‘18 months’’ and in11 serting in lieu thereof ‘‘6 years’’.

12 (2) SAVINGS PROVISION.—Notwithstanding the

13 6-year period provided in subsection (a) of section

14 2405 of title 10, United States Code, as amended by

15 paragraph (1), the period applicable under such sub16 section in the case of a shipbuilding contract entered

17 into after December 7, 1983, and before the date of

18 the enactment of the Federal Acquisition Streamlin19 ing Act of 1994 shall continue to be 18 months.

20 (b) RESUBMISSION WITH CORRECTED CERTIFI21 CATION.—Subsection (c) of such section is repealed.
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1 PART II—ACQUISITIONS GENERALLY

2 SEC. 42551. CLAIMS JURISDICTION OF UNITED STATES DIS3 TRICT COURTS AND THE UNITED STATES

4 COURT OF FEDERAL CLAIMS.

5 (a) CONCURRENT JURISDICTION OF UNITED STATES

6 DISTRICT COURTS UNDER THE LITTLE TUCKER ACT.—

7 Subsection (a) of section 1346 of title 28, United States

8 Code, is amended to read as follows:

9 ‘‘(a)(1) The district courts shall have original juris10 diction, concurrent with the United States Court of Fed11 eral Claims, of any civil action against the United States

12 for the recovery of any internal-revenue tax alleged to have

13 been erroneously or illegally assessed or collected, or any

14 penalty claimed to have been collected without authority

15 or any sum alleged to have been excessive or in any man16 ner wrongfully collected under the internal-revenue laws.

17 ‘‘(2)(A) Except as provided in subparagraph (B), the

18 district courts shall have original jurisdiction, concurrent

19 with the United States Court of Federal Claims, of any

20 other civil action or claim against the United States, not

21 exceeding $10,000 in amount, founded either upon the

22 Constitution, or any Act of Congress, or any regulation

23 of an executive department, or upon any express or im24 plied contract with the United States, or for liquidated or

25 unliquidated damages in cases not sounding in tort.
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1 ‘‘(B) The district courts shall not have jurisdiction

2 over any civil action or claim against the United States

3 or any Federal entity which relates in any manner to a

4 contract to which the Contract Disputes Act of 1978 (41

5 U.S.C. 601 et seq.) applies, including a claim that seeks

6 to establish the existence or nonexistence of such a con7 tract, seeks to establish that such a contract is void, or

8 seeks to determine and construe the terms of such a con9 tract. The district courts do not have jurisdiction over any

10 civil action or claim described in the preceding sentence

11 pursuant to section 1331, 1334, or 1346(a)(2)(B) of this

12 title, any provision of law giving a Federal entity the right

13 to sue or be sued in its own name, or any other provision

14 of law.’’.

15 (b) JURISDICTION OF THE UNITED STATES COURT

16 OF FEDERAL CLAIMS UNDER THE TUCKER ACT.—Sec17 tion 1491 of title 28, United States Code, as amended by

18 section 41322, is further amended by inserting after sub19 section (c) the following:

20 ‘‘(d)(1) The United States Court of Federal Claims

21 shall have jurisdiction over any civil action or claim

22 against the United States which relates in any manner to

23 a contract to which the Contract Disputes Act of 1978

24 (41 U.S.C. 601 et seq.) applies, including a civil action

25 or claim that seeks to establish the existence or
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1 nonexistence of such a contract, seeks to establish that

2 such contract is void, or seeks to determine and construe

3 the terms of any such contract.

4 ‘‘(2) The jurisdiction of the United States Court of

5 Federal Claims is, pursuant to section 1346(a)(2)(B) of

6 this title, exclusive as to the district courts of the United

7 States.’’.

8 SEC. 42552. CONTRACT DISPUTES ACT IMPROVEMENTS.

9 (a) PERIOD FOR FILING CLAIMS.—

10 (1) SIX-YEAR LIMITATION.—Section 6 of the

11 Contract Disputes Act of 1978 (41 U.S.C. 605) is

12 amended in subsection (a) by inserting after the sec13 ond sentence the following: ‘‘Each claim by a con14 tractor against the government relating to a contract

15 and each claim by the government against a contrac16 tor relating to a contract shall be submitted within

17 6 years after the occurrence of the event or events

18 giving rise to the claim. The preceding sentence does

19 not apply to a claim by the government against a

20 contractor that is based on a claim by the contractor

21 involving fraud.’’.

22 (2) LIMITATION ON APPLICABILITY TO EXIST23 ING CONTRACTS.—Notwithstanding the third sen24 tence of section 6(a) of the Contract Disputes Act

25 of 1978, as added by paragraph (1), if a contract in
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1 existence on the date of the enactment of this Act

2 requires that a claim referred to in that sentence be

3 submitted earlier than 6 years after the occurrence

4 of the event or events giving rise to the claim, then

5 the claim shall be submitted within the period re6 quired by the contract. The preceding sentence does

7 not apply to a claim by the Federal Government

8 against a contractor that is based on a claim by the

9 contractor involving fraud.

10 (b) INCREASED THRESHOLD FOR CERTIFICATION,

11 DECISION, AND NOTIFICATION REQUIREMENTS.—Sub12 section (c) of such section is amended by striking out

13 ‘‘$50,000’’ each place it appears and inserting in lieu

14 thereof ‘‘$100,000’’.

15 (c) INCREASED MAXIMUM FOR APPLICABILITY OF

16 ACCELERATED PROCEDURES.—Section 8(f) of the Con17 tract Disputes Act of 1978 (41 U.S.C. 607(f)) is amended

18 by striking out ‘‘$50,000’’ in the first sentence and insert19 ing in lieu thereof ‘‘$150,000’’.

20 (d) INCREASED MAXIMUM FOR APPLICABILITY OF

21 SMALL CLAIMS PROCEDURE.—Section 9(a) of the Con22 tract Disputes Act of 1978 (41 U.S.C. 608(a)) is amended

23 by striking out ‘‘$10,000’’ in the first sentence and insert24 ing in lieu thereof ‘‘$50,000’’.
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1 (e) REDUCED PERIOD FOR FILING ACTION IN COURT

2 OF FEDERAL CLAIMS.—Section 10(a)(3) of such Act (41

3 U.S.C. 609(a)(3)) is amended by striking out ‘‘twelve

4 months’’ and inserting in lieu thereof ‘‘90 days’’.

5 SEC. 42553. EXTENSION OF ALTERNATIVE DISPUTE RESO6 LUTION AUTHORITY.

7 (a) EXTENSION OF AUTHORITY.—Section 6(e) of the

8 Contracts Disputes Act of 1978 (41 U.S.C. 605(e)) is

9 amended by striking out ‘‘October 1, 1995’’ and inserting

10 in lieu thereof ‘‘October 1, 1999’’.

11 (b) AVAILABILITY OF PROCEDURES TO SMALL BUSI12 NESS GOVERNMENT CONTRACTORS.—Section 6(e) of such

13 Act is amended by inserting after the first sentence the

14 following: ‘‘In any case in which the contracting officer

15 rejects a contractor’s request for alternative dispute reso16 lution proceedings, the contracting officer shall provide the

17 contractor with a written explanation, citing one or more

18 of the conditions in section 572(b) of title V, United States

19 Code, or such other specific reasons that alternative dis20 pute resolution procedures are inappropriate for the reso21 lution of the dispute. In any case in which a contractor

22 rejects a request of an agency for alternative dispute reso23 lution proceedings, the contractor shall inform the agency

24 in writing of the contractor’s specific reasons for rejecting

25 the request.’’.
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1 SEC. 42554. EXPEDITED RESOLUTION OF CONTRACT AD2 MINISTRATION COMPLAINTS.

3 (a) REGULATIONS REQUIRED.—The Federal Acquisi4 tion Regulation shall include provisions that require a con5 tracting officer—

6 (1) to make every reasonable effort to respond

7 in writing within 30 days to any written request

8 made to a contracting officer with respect to a mat9 ter relating to the administration of a contract that

10 is received from a small business concern; and

11 (2) in the event that the contracting officer is

12 unable to reply within the 30-day period, to transmit

13 to the contractor within such period a written notifi14 cation of a specific date by which the contracting of15 ficer expects to respond.

16 The provisions shall not apply to a request for a contract17 ing officer’s decision under the Contract Disputes Act of

18 1978 (41 U.S.C. 601 et seq.).

19 (b) RULE OF CONSTRUCTION.—Nothing in this pro20 vision shall be considered as creating any rights under the

21 Contract Disputes Act (41 U.S.C. 601 et seq.).

22 (c) DEFINITION.—In this section, the term ‘‘small

23 business concern’’ means a business concern that meets

24 the requirements of section 3(a) of the Small Business Act

25 (15 U.S.C. 632(a)) and the regulations promulgated pur26 suant to that section.
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1 SEC. 42555. AUTHORITY FOR DISTRICT COURTS TO OBTAIN

2 ADVISORY OPINIONS FROM BOARDS OF CON3 TRACT APPEALS IN CERTAIN CASES.

4 Section 10 of the Contract Disputes Act of 1978 (41

5 U.S.C. 609) is amended by adding at the end the following

6 new paragraph:

7 ‘‘(f)(1) Whenever an action involving an issue de8 scribed in paragraph (2) is pending in a district court of

9 the United States, the district court may request a board

10 of contract appeals to provide the court with an advisory

11 opinion on the matters of contract interpretation at issue.

12 ‘‘(2) An issue referred to in paragraph (1) is any

13 issue that could be the proper subject of a final decision

14 of a contracting officer appealable under this Act.

15 ‘‘(3) A district court shall direct any request under

16 paragraph (1) to the board of contract appeals having ju17 risdiction under this Act to adjudicate appeals of contract

18 claims under the contract or contracts being interpreted

19 by the court.

20 ‘‘(4) Within ninety days after receiving a request for

21 an advisory opinion under paragraph (1), a board of con22 tract appeals shall provide the advisory opinion to the dis23 trict court making the request.’’.
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1 TITLE XLIII—SERVICE SPECIFIC

2 AND MAJOR SYSTEMS STATUTES

3 Subtitle A—Major Systems Statutes

4 SEC. 43001. REQUIREMENT FOR INDEPENDENT COST ESTI5 MATES AND MANPOWER ESTIMATES BEFORE

6 DEVELOPMENT OR PRODUCTION.

7 (a) CONTENT AND SUBMISSION OF ESTIMATES.—

8 Section 2434 of title 10, United States Code, is amended

9 by striking out subsection (b) and inserting in lieu thereof

10 the following:

11 ‘‘(b) REGULATIONS.—The Secretary of Defense shall

12 prescribe regulations governing the content and submis13 sion of the estimates required by subsection (a). The regu14 lations shall require—

15 ‘‘(1) that the independent estimate of the cost

16 of a program—

17 ‘‘(A) be prepared by an office or other en18 tity that is not under the supervision, direction,

19 or control of the military department, Defense

20 Agency, or other component of the Department

21 of Defense that is directly responsible for carry22 ing out the development or acquisition of the

23 program; and

24 ‘‘(B) include all costs of development, pro25 curement, and operations and support, without
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1 regard to funding source or management con2 trol; and

3 ‘‘(2) that the manpower estimate include the

4 total personnel required to train for, operate, main5 tain, and support the program upon full operational

6 deployment.’’.

7 (b) TERMINOLOGY CORRECTION.—Subsection (a) of

8 such section is amended by striking out ‘‘full-scale engi9 neering development’’ and inserting in lieu thereof ‘‘engi10 neering and manufacturing development’’.

11 SEC. 43002. ENHANCED PROGRAM STABILITY.

12 (a) BASELINE DESCRIPTIONS AND DEVIATION RE13 PORTING.—Section 2435 of title 10, United States Code,

14 is amended—

15 (1) in subsection (a)—

16 (A) by striking out paragraph (2); and

17 (B) in paragraph (1)—

18 (i) by striking out ‘‘(1)’’; and

19 (ii) by redesignating subparagraphs

20 (A) and (B) as paragraphs (1) and (2), re21 spectively; and

22 (2) by striking out subsection (b) and inserting

23 in lieu thereof the following:

24 ‘‘(b) REGULATIONS.—The Secretary of Defense shall

25 prescribe regulations governing—
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1 ‘‘(1) the content of baseline descriptions, which

2 shall include the program cost, the program sched3 ule, and a program performance description;

4 ‘‘(2) the submission of reports on deviations of

5 a program from the baseline description by the pro6 gram manager to the Secretary of the military de7 partment concerned and the Under Secretary of De8 fense for Acquisition and Technology;

9 ‘‘(3) procedures for review of deviation reports

10 within the Department of Defense; and

11 ‘‘(4) procedures for submission and approval of

12 revised baseline descriptions.

13 ‘‘(c) BASELINE DESCRIPTION REQUIRED BEFORE

14 OBLIGATION OF FUNDS.—(1) Except as provided in para15 graph (2), no amount appropriated or otherwise made

16 available to the Department of Defense may be obligated

17 for a major defense acquisition program before a baseline

18 description for the program is approved in accordance with

19 the procedures prescribed pursuant to subsection (b)(4).

20 ‘‘(2) An obligation otherwise prohibited by paragraph

21 (1) may be incurred if approved in advance by the Under

22 Secretary of Defense for Acquisition and Technology.’’.

23 (b) TERMINOLOGY CORRECTION.—Subsection (a)(1)

24 of such section, as redesignated by subsection

25 (a)(1)(B)(ii), is amended by striking out ‘‘full-scale engi-
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1 neering development’’ and inserting in lieu thereof ‘‘engi2 neering and manufacturing development’’.

3 SEC. 43003. REPEAL OF REQUIREMENT TO DESIGNATE CER4 TAIN MAJOR DEFENSE ACQUISITION PRO5 GRAMS AS DEFENSE ENTERPRISE PRO6 GRAMS.

7 Section 809 of the National Defense Authorization

8 Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C.

9 2430 note) is amended—

10 (1) by striking out subsection (d); and

11 (2) by redesignating subsections (e), (f), (g),

12 and (h) as subsections (d), (e), (f), and (g), respec13 tively.

14 SEC. 43004. REPEAL OF REQUIREMENT FOR COMPETITIVE

15 PROTOTYPING IN MAJOR PROGRAMS.

16 (a) REPEAL.—Section 2438 of title 10, United States

17 Code, is repealed.

18 (b) CLERICAL AMENDMENT.—The table of sections

19 at the beginning of chapter 144 of such title is amended

20 by striking out the item relating to section 2438.

21 SEC. 43005. REPEAL OF REQUIREMENT FOR COMPETITIVE

22 ALTERNATIVE SOURCES IN MAJOR PRO23 GRAMS.

24 (a) REPEAL.—Section 2439 of title 10, United States

25 Code, is repealed.
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of chapter 144 of such title is amended

3 by striking out the item relating to section 2439.

4 Subtitle B—Testing Statutes

5 SEC. 43011. DIRECTOR OF OPERATIONAL TEST AND EVAL6 UATION TO REPORT DIRECTLY TO SEC7 RETARY OF DEFENSE.

8 Section 139(c) of title 10, United States Code, is

9 amended by inserting after ‘‘(c)’’ the following: ‘‘The Di10 rector reports directly, without intervening review or ap11 proval, to the Secretary of Defense and Deputy Secretary

12 of Defense personally.’’.

13 SEC. 43012. RESPONSIBILITY OF DIRECTOR OF OPER14 ATIONAL TEST AND EVALUATION FOR LIVE

15 FIRE TESTING.

16 (a) CONDUCT OF LIVE FIRE TESTING.—Subsection

17 (b) of section 139 of title 10, United States Code, is

18 amended—

19 (1) by striking out ‘‘and’’ at the end of para20 graph (4);

21 (2) by striking out the period at the end of

22 paragraph (5) and inserting in lieu thereof ‘‘; and’’;

23 and

24 (3) by adding at the end the following new

25 paragraph:
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1 ‘‘(6) conduct the live fire testing activities of

2 the Department of Defense provided for under sec3 tion 2366 of this title.’’.

4 (b) ANNUAL REPORT ON LIVE FIRE TESTING.—Sub5 section (f) of such section is amended by inserting ‘‘(in6 cluding live fire testing activities)’’ in the first sentence

7 after ‘‘operational test and evaluation activities’’.

8 SEC. 43013. REQUIREMENT FOR UNCLASSIFIED VERSION

9 OF ANNUAL REPORT ON OPERATIONAL TEST

10 AND EVALUATION.

11 Section 139(f) of title 10, United States Code, is

12 amended by inserting after the second sentence the follow13 ing new sentence: ‘‘If the Director submits the report to

14 Congress in a classified form, the Director shall concur15 rently submit an unclassified version of the report to Con16 gress.’’.

17 Subtitle C—Service Specific Laws

18 SEC. 43021. GRATUITOUS SERVICES OF OFFICERS OF CER19 TAIN RESERVE COMPONENTS.

20 Section 279 of title 10, United States Code, is

21 amended—

22 (1) by striking out ‘‘Notwithstanding’’ and in23 serting in lieu thereof ‘‘(a) ACCEPTANCE BY SEC24 RETARY OF A MILITARY DEPARTMENT.—Notwith25 standing’’; and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(b) ACCEPTANCE BY SECRETARY OF DEFENSE.—

4 Notwithstanding section 1342 of title 31, the Secretary

5 of Defense may accept the gratuitous services of an officer

6 of a reserve component (other than an officer of the Army

7 National Guard of the United States or the Air National

8 Guard of the United States) in consultation upon matters

9 relating to the armed forces.’’.

10 SEC. 43022. AUTHORITY TO RENT SAMPLES, DRAWINGS,

11 AND OTHER INFORMATION TO OTHERS.

12 Subchapter V of chapter 148 of title 10, United

13 States Code, is amended in section 2541(a) by inserting

14 ‘‘rent,’’ after ‘‘sell,’’ each place it appears in paragraphs

15 (1) and (2).

16 SEC. 43023. CIVIL RESERVE AIR FLEET.

17 (a) DEFINITIONS.—Section 9511 of title 10, United

18 States Code, is amended—

19 (1) in paragraph (1)—

20 (A) by inserting ‘‘ ‘civil aircraft’,’’ after

21 ‘‘ ‘person’,’’;

22 (B) by striking out ‘‘meaning’’ and insert23 ing in lieu thereof ‘‘meanings’’; and
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1 (C) by striking out ‘‘(49 U.S.C. 1301)’’

2 and inserting in lieu thereof ‘‘(49 U.S.C. App.

3 1301)’’;

4 (2) in paragraph (2), by striking out ‘‘pas5 senger-cargo’’ and inserting in lieu thereof ‘‘pas6 senger cargo’’;

7 (3) in paragraph (3), by striking out ‘‘cargo-ca8 pable’’ and inserting in lieu thereof ‘‘cargo capable’’;

9 (4) by striking out paragraph (5) and inserting

10 in lieu thereof the following:

11 ‘‘(5) The term ‘cargo convertible aircraft’

12 means a passenger aircraft equipped or designed so

13 that all or substantially all of the main deck of the

14 aircraft can be readily converted for the carriage of

15 property or mail.’’;

16 (5) by striking out paragraph (6);

17 (6) by redesignating paragraph (7) as para18 graph (6);

19 (7) by redesignating paragraph (8) as para20 graph (7) and—

21 (A) in subparagraph (A) of such para22 graph, by inserting ‘‘under section 9512 of this

23 title’’ after ‘‘and who contracts with the Sec24 retary’’;
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1 (B) by striking out ‘‘or’’ at the end of such

2 subparagraph (A); and

3 (C) by inserting before the period at the

4 end of such paragraph the following: ‘‘, or (C)

5 who owns or controls existing aircraft, or will

6 own or control new aircraft, and who contrac7 tually commits all or some of such aircraft to

8 the Civil Reserve Air Fleet’’;

9 (8) by redesignating paragraphs (9), (10), (11),

10 and (12) as paragraphs (8), (9), (10), and (11), re11 spectively; and

12 (9) in paragraph (11), as so redesignated—

13 (A) by striking out ‘‘interoperability’’ and

14 inserting in lieu thereof ‘‘compatibility’’; and

15 (B) by striking out ‘‘a cargo-convertible,

16 cargo-capable, or passenger-cargo combined air17 craft’’ and inserting in lieu thereof ‘‘an

18 aeromedical aircraft or a cargo convertible,

19 cargo capable, or passenger cargo combined air20 craft’’.

21 (b) CONSOLIDATION OF PROVISIONS RELATING TO

22 CONTRACTUAL COMMITMENT OF AIRCRAFT.—Chapter

23 931 of such title is amended—

24 (1) by redesignating subsections (b) and (c) of

25 section 9512 as subsections (c) and (d), respectively;
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1 (2) by redesignating subsection (a) of section

2 9513 as subsection (b), transferring such subsection

3 (as so redesignated) to section 9512, and inserting

4 such subsection after subsection (a);

5 (3) by redesignating subsection (b) of section

6 9513 as subsection (e) and transferring such sub7 section (as so redesignated) to the end of section

8 9512;

9 (4) in subsection (c) of section 9512, as redes10 ignated by paragraph (1), by striking out ‘‘the terms

11 required by section 9513 of this title and’’;

12 (5) in subsection (e) of section 9512, as redes13 ignated and transferred to such section by para14 graph (3), by striking out ‘‘under section 9512 of

15 this title’’ and inserting in lieu thereof ‘‘entered into

16 under this section’’; and

17 (6) by striking out the heading of section 9513.

18 (c) USE OF MILITARY INSTALLATIONS BY CONTRAC19 TORS.—

20 (1) AUTHORITY.—Such chapter, as amended by

21 subsection (b), is further amended by adding at the

22 end the following new section 9513:
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1 ‘‘§ 9513. Use of military installations by Civil Reserve

2 Air Fleet contractors

3 ‘‘(a) CONTRACT AUTHORITY.—(1) The Secretary of

4 the Air Force—

5 ‘‘(A) may, by contract entered into with any

6 contractor, authorize such contractor to use one or

7 more Air Force installations designated by the Sec8 retary; and

9 ‘‘(B) with the consent of the Secretary of an10 other military department, may, by contract entered

11 into with any contractor, authorize the contractor to

12 use one or more installations, designated by the Sec13 retary of the Air Force, that is under the jurisdic14 tion of the Secretary of such other military depart15 ment.

16 ‘‘(2) The Secretary of the Air Force may include in

17 the contract such terms and conditions as the Secretary

18 determines appropriate to promote the national defense or

19 to protect the interests of the United States.

20 ‘‘(b) PURPOSES OF USE.—A contract entered into

21 under subsection (a) may authorize use of a designated

22 installation as a weather alternate, a service stop not in23 volving the enplaning or deplaning of passengers or cargo,

24 or, in the case of an installation within the United States,

25 for other commercial purposes. Notwithstanding any other

26 provision of the law, the Secretary may establish different
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1 levels and types of uses for different installations for com2 mercial operations not required by the Department of De3 fense and may provide in contracts under subsection (a)

4 for different levels and types of uses by different contrac5 tors.

6 ‘‘(c) DISPOSITION OF PAYMENTS FOR USE.—Not7 withstanding any other provision of law, amounts collected

8 from the contractor for landing fees, services, supplies, or

9 other charges authorized to be collected under the contract

10 shall be credited to the appropriations of the armed forces

11 having jurisdiction over the military installation to which

12 the contract pertains. Amounts so credited to an appro13 priation shall be available for obligation for the same pe14 riod as the appropriation to which credited.

15 ‘‘(d) HOLD HARMLESS REQUIREMENT.—A contract

16 entered into under subsection (a) shall provide that the

17 contractor agrees to indemnify and hold harmless the

18 United States from all actions, suits, or claims of any sort

19 resulting from, relating to, or arising out of any activities

20 conducted, or services or supplies furnished, in connection

21 with the contract.

22 ‘‘(e) RESERVATION OF RIGHT TO EXCLUDE CON23 TRACTOR.—A contract entered into under subsection (a)

24 shall provide that the Secretary or, in the case of an instal25 lation under the jurisdiction of an armed force other than
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1 the Air Force, the Secretary concerned may at any time

2 and without prior notice deny access to an installation des3 ignated under the contract if military exigencies require

4 such action.’’.

5 (2) CLERICAL AMENDMENT.—The table of sec6 tions at the beginning of such chapter is amended

7 by striking out the item relating to section 9513 and

8 inserting in lieu thereof the following:

‘‘9513. Use of military installations by Civil Reserve Air Fleet contractors.’’.

9 SEC. 43024. EXCHANGE OF PERSONNEL.

10 (a) EXCHANGE AUTHORITY.—Subchapter II of chap11 ter 138 of title 10, United States Code, is amended by

12 adding at the end the following new section:

13 ‘‘§ 2350k. Exchange of personnel

14 ‘‘(a) INTERNATIONAL EXCHANGE AGREEMENTS AU15 THORIZED.—Under regulations prescribed by the Sec16 retary of Defense, the Secretary and the secretaries of the

17 military departments are each authorized to enter into

18 agreements with the governments of foreign countries for

19 the exchange of military and civilian personnel of the De20 partment of Defense and military and civilian personnel

21 of the defense departments or ministries of such foreign

22 governments.

23 ‘‘(b) ASSIGNMENT OF PERSONNEL.—Pursuant to

24 such agreements, personnel of the foreign defense depart25 ments or ministries may be assigned to positions in the
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1 Department of Defense, and personnel of the Department

2 of Defense may be assigned to positions in foreign defense

3 departments or ministries. Agreements for the exchange

4 of personnel engaged in research and development activi5 ties may provide for assignments to positions in private

6 industry that support the defense departments or min7 istries. The specific positions and the individuals to be as8 signed must be acceptable to both the sending government

9 and the host government.

10 ‘‘(c) RECIPROCITY OF PERSONNEL QUALIFICATIONS

11 REQUIRED.—Each government shall be required under an

12 agreement authorized by subsection (a) to provide person13 nel having qualifications, training, and skills that are es14 sentially equal to those of the personnel provided by the

15 other government.

16 ‘‘(d) PAYMENT OF PERSONNEL COSTS.—Each gov17 ernment shall pay the salary, per diem, cost of living, trav18 el, cost of language or other training, and other costs (ex19 cept for cost of temporary duty directed by the host gov20 ernment and costs incident to the use of host government

21 facilities in the performance of assigned duties) for its own

22 personnel in accordance with the laws and regulations of

23 such government that pertain to such matters.’’.
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of subchapter II of such chapter is

3 amended by adding at the end the following new item:

‘‘2350k. Exchange of personnel.’’.

4 SEC. 43025. SCIENTIFIC INVESTIGATION AND RESEARCH

5 FOR THE NAVY.

6 (a) REPEAL.—Section 7203 of title 10, United States

7 Code, is repealed.

8 (b) CLERICAL AMENDMENT.—The table of sections

9 at the beginning of chapter 631 of such title is amended

10 by striking out the item relating to section 7203.

11 SEC. 43026. CONSTRUCTION OF COMBATANT AND ESCORT

12 VESSELS AND ASSIGNMENT OF VESSEL

13 PROJECTS.

14 (a) REPEAL OF OBSOLETE AND INTERNALLY INCON15 SISTENT PROVISIONS.—Section 7299a of title 10, United

16 States Code, is amended—

17 (1) by striking out subsection (a); and

18 (2) by redesignating subsections (b) and (c) as

19 subsections (a) and (b), respectively.

20 (b) CONFORMING AMENDMENT.—Subsection (b) of

21 such section, as redesignated by subsection (a)(2), is

22 amended in paragraph (2) by striking out ‘‘subsection (a)

23 or’’.
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1 SEC. 43027. REPEAL OF REQUIREMENT FOR CONSTRUC2 TION OF VESSELS ON PACIFIC COAST.

3 (a) REPEAL.—Section 7302 of title 10, United States

4 Code, is repealed.

5 (b) CLERICAL AMENDMENT.—The table of sections

6 at the beginning of chapter 633 of such title is amended

7 by striking out the item relating to section 7302.

8 SEC. 43028. AUTHORITY TO TRANSFER BY GIFT A VESSEL

9 STRICKEN FROM NAVAL VESSEL REGISTER.

10 Section 7306(a)(1) of title 10, United States Code,

11 is amended by inserting ‘‘Territory,’’ after ‘‘State,’’.

12 SEC. 43029. NAVAL SALVAGE FACILITIES.

13 Chapter 637 of title 10, United States Code, is

14 amended—

15 (1) in section 7361—

16 (A) in subsection (a), by inserting ‘‘AU17 THORITY TO PROVIDE FACILITIES BY CON18 TRACT OR OTHERWISE.—’’ after ‘‘(a)’’;

19 (B) in subsection (b), by inserting ‘‘CON20 TRACTS AFFECTING THE DEPARTMENT OF

21 TRANSPORTATION.—’’ after ‘‘(b)’’; and

22 (C) by striking out subsection (c) and in23 serting in lieu thereof the following new sub24 section (c):
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1 ‘‘(c) LIMITATION ON TERM CONTRACTS.—Term con2 tracts may be entered into for purposes of this section only

3 after—

4 ‘‘(1) it has been demonstrated to the satisfac5 tion of the Secretary of the Navy that available com6 mercial salvage facilities are inadequate to meet na7 tional defense requirements; and

8 ‘‘(2) the Secretary of the Navy determines that

9 adequate public notice of intent to exercise the au10 thority under this subsection has been provided.’’;

11 (2) by designating the text of section 7362 as

12 subsection (d) and transferring such text, as so des13 ignated, to the end of section 7361 of title 10,

14 United States Code;

15 (3) in subsection (d) of section 7361 of such

16 title, as so designated and transferred, by inserting

17 before ‘‘The Secretary’’ the following: ‘‘COMMERCIAL

18 USE OF NAVAL VESSELS AND EQUIPMENT.—’’;

19 (4) by designating the text of section 7363 as

20 subsection (e) and transferring such text, as so des21 ignated, to the end of section 7361 of title 10,

22 United States Code;

23 (5) in subsection (e) of section 7361 of such

24 title, as so designated and transferred, by inserting
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1 before ‘‘Before any salvage vessel’’ the following:

2 ‘‘CONDITIONS FOR TRANSFER OF EQUIPMENT.—’’;

3 (6) by designating the text of section 7365 as

4 subsection (f) and transferring such text, as so des5 ignated, to the end of section 7361 of title 10,

6 United States Code;

7 (7) in subsection (f) of section 7361 of such

8 title, as so designated and transferred, by inserting

9 before ‘‘The Secretary’’ the following: ‘‘SETTLE10 MENT OF CLAIMS.—’’;

11 (8) by designating the text of section 7367 as

12 subsection (g) and transferring such text, as so des13 ignated, to the end of section 7361 of title 10,

14 United States Code;

15 (9) in subsection (g) of section 7361 of such

16 title, as so designated and transferred—

17 (A) by inserting before ‘‘Money received’’

18 the following: ‘‘DISPOSITION OF RECEIPTS.—’’;

19 and

20 (B) by striking out ‘‘this chapter’’ in the

21 first sentence and inserting in lieu thereof ‘‘this

22 section’’;

23 (10) by striking out the section headings for

24 sections 7362, 7363, 7365, and 7367;
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1 (11) by striking out the heading for section

2 7361 and inserting in lieu thereof the following:

3 ‘‘§ 7361. Navy support for salvage operations’’;

4 and

5 (12) in the table of sections at the beginning of

6 such chapter—

7 (A) by striking out the item relating to

8 section 7361 and inserting in lieu thereof the

9 following:

‘‘7361. Navy support for salvage operations.’’;

10 and

11 (B) by striking out the items relating to

12 sections 7362, 7363, 7365, and 7367.

13 Subtitle D—Department of Defense

14 Commercial and Industrial Ac15 tivities

16 SEC. 43051. ACCOUNTING REQUIREMENT FOR CON17 TRACTED ADVISORY AND ASSISTANCE SERV18 ICES.

19 (a) FUNDING TO BE IDENTIFIED IN BUDGET.—Sec20 tion 1105 of title 31, United States Code, is amended by

21 adding at the end the following new subsection:

22 ‘‘(g)(1) The Director of the Office of Management

23 and Budget shall establish the funding for advisory and

24 assistance services for each department and agency as a
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1 separate object class in each budget annually submitted

2 to the Congress under this section.

3 ‘‘(2)(A) In paragraph (1), except as provided in sub4 paragraph (B), the term ‘advisory and assistance services’

5 means the following services when provided by nongovern6 mental sources:

7 ‘‘(i) Management and professional support serv8 ices.

9 ‘‘(ii) Studies, analyses, and evaluations.

10 ‘‘(iii) Engineering and technical services.

11 ‘‘(B) In paragraph (1), the term ‘advisory and assist12 ance services’ does not include the following services:

13 ‘‘(i) Routine automated data processing and

14 telecommunications services unless such services are

15 an integral part of a contract for the procurement

16 of advisory and assistance services.

17 ‘‘(ii) Architectural and engineering services.

18 ‘‘(iii) Technical support of research and devel19 opment activities.

20 ‘‘(iv) Research on basic mathematics or medi21 cal, biological, physical, social, psychological, or

22 other phenomena.’’.

23 (b) REPEAL OF SOURCE LAW.—Section 512 of Pub24 lic Law 102–394 (106 Stat. 1826) is repealed.

25 (c) REPEAL OF SUPERSEDED PROVISIONS.—
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1 (1) TITLE 10.—

2 (A) REPEAL.—Section 2212 of title 10,

3 United States Code, is repealed.

4 (B) CLERICAL AMENDMENT.—The table of

5 sections at the beginning of chapter 131 of such

6 title is amended by striking out the item relat7 ing to section 2212.

8 (2) TITLE 31.—

9 (A) REPEAL.—Section 1114 of title 31,

10 United States Code, is repealed.

11 (B) CLERICAL AMENDMENT.—The table of

12 sections at the beginning of chapter 11 of such

13 title is amended by striking out the item relat14 ing to section 1114.

15 Subtitle E—Fuel- and Energy16 Related Laws

17 SEC. 43061. LIQUID FUELS AND NATURAL GAS: CONTRACTS

18 FOR STORAGE, HANDLING, OR DISTRIBU19 TION.

20 Section 2388(a) of title 10, United States Code, is

21 amended by striking out ‘‘liquid fuels and natural gas’’

22 and inserting in lieu thereof ‘‘liquid fuels or natural gas’’.
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1 Subtitle F—Fiscal Statutes

2 SEC. 43071. DISBURSEMENT OF FUNDS OF MILITARY DE3 PARTMENT TO COVER OBLIGATIONS OF AN4 OTHER AGENCY OF DEPARTMENT OF DE5 FENSE.

6 Subsection (c)(2) of section 3321 of title 31, United

7 States Code, is amended by striking out ‘‘military depart8 ments of the’’ and inserting in lieu thereof ‘‘The’’.

9 Subtitle G—Miscellaneous

10 SEC. 43081. OBLIGATION OF FUNDS: LIMITATION.

11 Section 2202 of title 10, United States Code, is

12 amended to read as follows:

13 ‘‘§ 2202. Obligation of funds: limitation

14 ‘‘The Secretary of Defense shall prescribe regulations

15 governing the performance within the Department of De16 fense of the procurement, production, warehousing, and

17 supply distribution functions, and related functions, of the

18 Department of Defense.’’.

19 SEC. 43082. REPEAL OF REQUIREMENTS REGARDING PROD20 UCT EVALUATION ACTIVITIES.

21 (a) REPEAL.—Section 2369 of title 10, United States

22 Code, is repealed.

23 (b) CLERICAL AMENDMENT.—The table of sections

24 at the beginning of chapter 139 of such title is amended

25 by striking out the item related to section 2369.
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1 SEC. 43083. CODIFICATION AND REVISION OF LIMITATION

2 ON LEASE OF VESSELS, AIRCRAFT, AND VEHI3 CLES.

4 (a) LIMITATION.—

5 (1) IN GENERAL.—Chapter 141 of title 10,

6 United States Code, is amended by adding at the

7 end the following new section:

8 ‘‘§ 2410l. Lease of vessels, aircraft, and vehicles

9 ‘‘The head of an agency named in paragraph (1), (2),

10 (3), or (4) of section 2303(a) of this title may not enter

11 into any contract with a term of 18 months or more, or

12 extend or renew any contract for a term of 18 months

13 or more, for any vessel, aircraft, or vehicle, through a

14 lease, charter, or similar agreement without previously

15 having considered all costs of such lease (including esti16 mated termination liability) and determined in writing

17 that such lease is in the best interest of the Government.’’.

18 (2) CLERICAL AMENDMENT.—The table of sec19 tions at the beginning of such chapter is amended

20 by adding at the end the following:

‘‘2410l. Lease of vessels, aircraft, and vehicles.’’.

21 (b) REPEAL OF SUPERSEDED PROVISION.—Section

22 9081 of Public Law 101–165 (103 Stat. 1147; 10 U.S.C.

23 2401 note) is repealed.
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1 SEC. 43084. SOFT DRINK SUPPLIES FOR EXCHANGE

2 STORES.

3 Section 2424 of title 10, United States Code, is

4 amended by adding at the end the following new sub5 section:

6 ‘‘(c) Paragraphs (1) and (2) of subsection (b) do not

7 apply to contracts for the procurement of soft drinks that

8 are manufactured in the United States. The Secretary of

9 Defense shall prescribe in regulations the standards and

10 procedures for determining whether a particular drink is

11 a soft drink and whether the drink was manufactured in

12 the United States.’’.

13 SEC. 43085. REPEAL OF PREFERENCE FOR RECYCLED

14 TONER CARTRIDGES.

15 The following provisions of law, relating to a pref16 erence for procurement of recycled toner cartridges, are

17 repealed:

18 (1) Section 630 of Public Law 102–393 (106

19 Stat. 1773) and the provision of law set out in

20 quotes in that section (42 U.S.C. 6962(j)).

21 (2) Section 401 of Public Law 103–123 (107

22 Stat. 1238).
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1 TITLE XLIV—SIMPLIFIED ACQUI2 SITION THRESHOLD AND SO3 CIOECONOMIC, SMALL BUSI4 NESS, AND MISCELLANEOUS

5 LAWS

6 Subtitle A—Simplified Acquisition

7 Threshold

8 PART I—ESTABLISHMENT OF THRESHOLD

9 SEC. 44001. SIMPLIFIED ACQUISITION THRESHOLD.

10 (a) TERM DEFINED.—Section 4(11) of the Office of

11 Federal Procurement Policy Act (41 U.S.C. 403(11)) is

12 amended to read as follows:

13 ‘‘(11) The term ‘simplified acquisition thresh14 old’ means $100,000.’’.

15 (b) INTERIM REPORTING RULE.—Until October 1,

16 1999, procuring activities shall continue to report procure17 ment awards with a dollar value of at least $25,000, but

18 less than $100,000, in conformity with the procedures for

19 the reporting of a contract award in excess of $25,000

20 that were in effect on October 1, 1992.

21 PART II—SIMPLIFICATION OF PROCEDURES

22 SEC. 44011. SIMPLIFIED ACQUISITION PROCEDURES.

23 The Office of Federal Procurement Policy Act (41

24 U.S.C. 401 et seq.) is amended by adding at the end the

25 following new section:
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1 ‘‘SIMPLIFIED ACQUISITION PROCEDURES

2 ‘‘SEC. 29. (a) In order to promote efficiency and

3 economy in contracting and to avoid unnecessary burdens

4 for agencies and contractors, the Federal Acquisition Reg5 ulation shall provide for special simplified procedures for

6 contracts for acquisition of property and services that are

7 not in excess of the simplified acquisition threshold.

8 ‘‘(b) Regulations prescribed pursuant to subsection

9 (a) shall include the following provisions:

10 ‘‘(1) A provision that a contract with an antici11 pated value not in excess of $2,500 is not subject to

12 section 15(j) of the Small Business Act (15 U.S.C.

13 644(j)) and section 2 of title III of the Act of March

14 3, 1933 (commonly known as the ‘Buy America

15 Act’) (41 U.S.C. 10a et seq.).

16 ‘‘(2) A provision that a civilian or military offi17 cial, or employee of an agency, whose contracting

18 authority does not exceed $2,500 is not a procure19 ment official for the purposes of section 27 of this

20 Act.

21 ‘‘(3) A provision that a purchase not in excess

22 of $2,500 may be made without obtaining competi23 tive quotations if the contracting officer determines

24 that the price for the purchase is reasonable.
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1 ‘‘(4) A requirement that purchases not in ex2 cess of $2,500 be distributed equitably among quali3 fied suppliers.

4 ‘‘(5) A requirement that a contracting officer

5 consider each responsive offer timely received from

6 an eligible offeror.

7 ‘‘(c) A proposed purchase or contract for an amount

8 above the simplified acquisition threshold may not be di9 vided into several purchases or contracts for lesser

10 amounts in order to use the simplified acquisition proce11 dures required by subsection (a).

12 ‘‘(d) In using simplified acquisition procedures, the

13 head of an executive agency shall promote competition to

14 the maximum extent practicable.’’.

15 SEC. 44012. SMALL BUSINESS RESERVATION.

16 Section 15(j) of the Small Business Act (15 U.S.C.

17 644(j)) is amended to read as follows:

18 ‘‘(j)(1) Each contract for the purchase of goods and

19 services that has an anticipated value in excess of $2,500

20 but not in excess of the simplified acquisition threshold

21 and that is subject to simplified acquisition procedures

22 prescribed pursuant to section 29 of the Office of Federal

23 Procurement Policy Act shall be reserved exclusively for

24 small business concerns unless the contracting officer is

25 unable to obtain offers from two or more small business
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1 concerns that are competitive with market prices and are

2 competitive with regard to the quality and delivery of the

3 goods or services being purchased.

4 ‘‘(2) In carrying out paragraph (1), a contracting of5 ficer shall consider a responsive offer timely received from

6 an eligible small business offeror.

7 ‘‘(3) Nothing in paragraph (1) shall be construed as

8 precluding an award of a contract with a value not in ex9 cess of the simplified acquisition threshold under the au10 thority of subsection (a) or (c) of section 8 of this Act,

11 section 2323 of title 10, United States Code, or section

12 712 of the Business Opportunity Development Reform Act

13 of 1988 (Public Law 100–656; 15 U.S.C. 644 note).’’.

14 SEC. 44013. FAST PAYMENT UNDER SIMPLIFIED ACQUISI15 TION PROCEDURES.

16 (a) PAYMENT PROCEDURES.—The simplified acquisi17 tion procedures described in section 29(a) of the Office

18 of Federal Procurement Policy Act (as added by section

19 44011) shall provide for use of the payment terms de20 scribed in subsection (b), and for the disbursement of pay21 ment through electronic fund transfer, whenever cir22 cumstances permit.

23 (b) REQUIRED PAYMENT TERMS.—The payment

24 terms for a purchase made pursuant to simplified acquisi25 tion procedures shall require payment, in accordance with
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1 the provisions of chapter 39 of title 31, United States

2 Code, within 15 days after the date of the receipt of a

3 proper invoice for products delivered or services per4 formed, if—

5 (1) in the case of a purchase of property, title

6 to the property vests in the Government upon deliv7 ery of the property to the Government or to a com8 mon carrier;

9 (2) in the case of property or services for which

10 payment is due before the Government’s acceptance

11 of the property or services, the vendor provides com12 mercial or other appropriate warranties assuring

13 that the property or services purchased conform to

14 the requirements set forth in the Government’s pur15 chase offer; and

16 (3) funds are available for making the payment.

17 (c) DISBURSEMENTS TO BE MATCHED WITH OBLI18 GATIONS.—The simplified acquisition procedures shall in19 clude procedures that ensure that each request for a dis20 bursement is matched with a particular obligation before

21 the disbursement is made under the payment terms pro22 vided for under subsection (a).

23 SEC. 44014. PROCUREMENT NOTICE.

24 (a) CONTINUATION OF EXISTING NOTICE THRESH25 OLDS.—Subsection (a) of section 18 of the Office of Fed-
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1 eral Procurement Policy Act (41 U.S.C. 416) is amend2 ed—

3 (1) in paragraph (1), by striking out ‘‘the small

4 purchase threshold’’ each place it appears and in5 serting in lieu thereof ‘‘$25,000’’; and

6 (2) in paragraph (3)(B), by inserting after

7 ‘‘(B)’’ the following: ‘‘in the case of a contract or

8 order expected to exceed the simplified acquisition

9 threshold,’’.

10 (b) CONTENT OF NOTICE.—Subsection (b) of such

11 section is amended—

12 (1) by striking out ‘‘and’’ at the end of para13 graph (4);

14 (2) by striking out the period at the end of

15 paragraph (5) and inserting in lieu thereof a semi16 colon; and

17 (3) by adding at the end the following:

18 ‘‘(6) in the case of a contract in an amount es19 timated to exceed $25,000 but not to exceed the

20 simplified acquisition threshold—

21 ‘‘(A) a description of the procedures to be

22 used in awarding the contract; and

23 ‘‘(B) a statement specifying the periods for

24 prospective offerors and the contracting officer
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1 to take the necessary preaward and award ac2 tions.’’.

3 (c) NOTICE NOT REQUIRED IN ELECTRONIC COM4 MERCE.—Subsection (c)(1) of such section, as amended

5 by section 41055(b), is further amended—

6 (1) by redesignating subparagraphs (A), (B),

7 (C), (D), (E) and (F) as subparagraphs (B), (C),

8 (D), (E), (F), and (G), respectively; and

9 (2) by inserting above subparagraph (B), as so

10 redesignated, the following new subparagraph (A):

11 ‘‘(A) the proposed procurement is conducted by

12 means of electronic commerce pursuant to a system

13 that, as determined by the Administrator for Fed14 eral Procurement Policy, has the capabilities de15 scribed in subsections (a) and (b) of section 44015

16 of the Federal Acquisition Streamlining Act of

17 1994;’’.

18 (d) NOTICE UNDER THE SMALL BUSINESS ACT.—

19 (1) CONTINUATION OF EXISTING NOTICE

20 THRESHOLDS.—Subsection (e) of section 8 of the

21 Small Business Act (15 U.S.C. 637) is amended—

22 (A) in paragraph (1), by striking out ‘‘the

23 small purchase threshold’’ each place it appears

24 and inserting in lieu thereof ‘‘$25,000’’; and
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1 (B) in paragraph (3)(B), by inserting after

2 ‘‘(B)’’ the following: ‘‘in the case of a contract

3 or order estimated to exceed the simplified ac4 quisition threshold,’’.

5 (2) CONTENT OF NOTICE.—Subsection (f) of

6 such section is amended—

7 (A) by striking out ‘‘and’’ at the end of

8 paragraph (4);

9 (B) by striking out the period at the end

10 of paragraph (5) and inserting in lieu thereof a

11 semicolon; and

12 (C) by adding at the end the following:

13 ‘‘(6) in the case of a contract in an amount es14 timated to exceed the $25,000 but not to exceed the

15 simplified acquisition threshold—

16 ‘‘(A) a description of the procedures to be

17 used in awarding the contract; and

18 ‘‘(B) a statement specifying the periods for

19 prospective offerors and the contracting officer

20 to take the necessary preaward and award ac21 tions.’’.

22 SEC. 44015. ELECTRONIC COMMERCE FOR FEDERAL GOV23 ERNMENT PROCUREMENTS.

24 (a) DEVELOPMENT AND IMPLEMENTATION OF SYS25 TEM.—The Administrator for Federal Procurement Pol-
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1 icy, in consultation with the heads of appropriate Federal

2 Government agencies having applicable technical and

3 functional expertise, may take appropriate steps to develop

4 and implement a Federal Governmentwide architecture or

5 design for electronic commerce that provides interoper6 ability among users.

7 (b) REQUIRED CAPABILITIES.—The requirements

8 analysis prepared to implement the architecture or design

9 of a system of electronic commerce referred to in sub10 section (a) shall have the following capabilities:

11 (1) The maximum practicable capability for

12 electronic exchange of such procurement information

13 as solicitations, offers, contracts, purchase orders,

14 invoices, payments, and other contractual documents

15 between the private sector and the Federal Govern16 ment.

17 (2) Capabilities that increase the access of busi18 nesses, including small business concerns, socially

19 and economically disadvantaged small business con20 cerns, and businesses owned predominantly by

21 women, to Federal Government procurement oppor22 tunities.

23 (3) Easy access for potential Federal Govern24 ment contractors.
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1 (4) Use of nationally and internationally recog2 nized data formats that broaden and ease electronic

3 interchange of data.

4 (5) Use of Federal Government systems and

5 networks and industry systems and networks.

6 (c) NOTICE AND SOLICITATION REGULATIONS.—In

7 connection with implementation of the architecture or de8 sign referred to in subsection (a), the Federal Acquisition

9 Regulatory Council shall ensure that the Federal Acquisi10 tion Regulation contains appropriate notice and solicita11 tion provisions applicable to acquisitions conducted

12 through such architecture or design. The provisions shall

13 specify the required form and content of notices of acquisi14 tions and the minimum periods for notifications of solicita15 tions and for deadlines for the submission of offers under

16 solicitations. Each minimum period specified for a notifi17 cation of solicitation and each deadline for the submission

18 of offers under a solicitation shall afford potential offerors

19 a reasonable opportunity to respond.

20 (d) LIMITATION OF PUBLICATION REQUIREMENT.—

21 The requirement in section 18(a) of the Office of Federal

22 Procurement Policy Act (41 U.S.C. 416(a)) and section

23 8(e) of the Small Business Act (15 U.S.C. 637(e)) for

24 publishing notice of a solicitation in the Commerce Busi25 ness Daily shall not apply to acquisitions of a Federal
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1 agency or a component of a Federal agency that are made

2 through electronic commerce and have a value not in ex3 cess of the simplified acquisition threshold if the Federal

4 Acquisition Regulation contains the provisions specifically

5 required by subsection (c) and the Administrator for Fed6 eral Procurement Policy certifies that such agency or com7 ponent—

8 (1) has fully implemented the architecture or

9 design referred to in subsection (a); and

10 (2) has procedures in place—

11 (A) to provide notice to potential offerors

12 in accordance with the requirements of the Fed13 eral Acquisition Regulation prescribed pursuant

14 to subsection (c); and

15 (B) to ensure that small business concerns

16 are afforded an opportunity to respond to a so17 licitation of contract offers within the period

18 specified in the solicitation.

19 (e) DEFINITION.—In this section, the term ‘‘sim20 plified acquisition threshold’’ has the meaning given that

21 term is section 4(11) of the Office of Federal Procurement

22 Policy Act (41 U.S.C. 403(11)).
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1 PART III—APPLICABILITY OF LAWS TO ACQUISI2 TIONS NOT IN EXCESS OF SIMPLIFIED AC3 QUISITION THRESHOLD

4 SEC. 44021. FUTURE ENACTED PROCUREMENT LAWS.

5 The Office of Federal Procurement Policy Act (41

6 U.S.C. 401 et seq.), as amended by section 44011, is fur7 ther amended by adding at the end the following new sec8 tion:

9 ‘‘APPLICABILITY OF CERTAIN LAWS TO CONTRACTS NOT

10 EXCEEDING SIMPLIFIED ACQUISITION THRESHOLD

11 ‘‘SEC. 30. (a) IN GENERAL.—The applicability of a

12 provision of law described in subsection (b) to contracts

13 not in excess of the simplified acquisition threshold may

14 be waived on a class basis in the Federal Acquisition Reg15 ulation. Such a waiver shall not apply to a provision of

16 law that expressly refers to this section and prohibits the

17 waiver of that provision of law.

18 ‘‘(b) REFERENCED LAW.—A provision of law referred

19 to in subsection (a) is any provision of law enacted after

20 the date of the enactment of the Federal Acquisition

21 Streamlining Act of 1994 that, as determined by the Ad22 ministrator for Federal Procurement Policy, sets forth

23 policies, procedures, requirements, or restrictions for the

24 procurement of property or services by the Federal Gov25 ernment.’’.
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1 SEC. 44022. ARMED SERVICES ACQUISITIONS.

2 (a) REQUIREMENT FOR CONTRACT CLAUSE REGARD3 ING CONTINGENT FEES.—Section 2306(b) of title 10,

4 United States Code, is amended by adding at the end the

5 following: ‘‘This subsection does not apply to a contract

6 that is not in excess of the simplified acquisition thresh7 old.’’.

8 (b) PROHIBITION ON LIMITING SUBCONTRACTOR DI9 RECT SALES TO THE UNITED STATES.—Section 2402 of

10 title 10, United States Code, is amended by adding at the

11 end the following new subsection:

12 ‘‘(c) This section does not apply to a contract that

13 is not in excess of the simplified acquisition threshold (as

14 defined in section 4(11) of the Office of Federal Procure15 ment Policy Act (41 U.S.C. 403(11))).’’.

16 (c) AUTHORITY TO EXAMINE BOOKS AND RECORDS

17 OF CONTRACTORS.—Section 2313 of title 10, United

18 States Code, as amended by section 42201, is further

19 amended by adding at the end of subsection (f) the follow20 ing:

21 ‘‘(2) A contract that is not in excess of the sim22 plified acquisition threshold.’’.

23 (d) REQUIREMENT TO IDENTIFY SUPPLIERS AND

24 SOURCES OF SUPPLIES.—Section 2384(b) of title 10,

25 United States Code, is amended by adding at the end the

26 following new paragraph:
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1 ‘‘(3) The regulations prescribed pursuant to para2 graph (1) do not apply to a contract that does not exceed

3 the simplified acquisition threshold (as defined in section

4 4(11) of the Office of Federal Procurement Policy Act (41

5 U.S.C. 403(11))).’’.

6 (e) PROHIBITION AGAINST DOING BUSINESS WITH

7 CERTAIN OFFERORS OR CONTRACTORS.—Section 2393(d)

8 of title 10, United States Code, is amended in the second

9 sentence by striking out ‘‘above’’ and all that follows and

10 inserting in lieu thereof ‘‘in excess of the simplified acqui11 sition threshold (as defined in section 4(11) of the Office

12 of Federal Procurement Policy Act (41 U.S.C.

13 403(11))).’’.

14 (f) PROHIBITION ON PERSONS CONVICTED OF DE15 FENSE-CONTRACT RELATED FELONIES.—Section

16 2408(a) of title 10, United States Code, is amended by

17 adding at the end the following new paragraph:

18 ‘‘(4) The prohibition in paragraph (1) does not apply

19 with respect to the following:

20 ‘‘(A) A contract referred to in subparagraph

21 (A), (B), (C), or (D) of such paragraph that is not

22 in excess of the simplified acquisition threshold (as

23 defined in section 4(11) of the Office of Federal

24 Procurement Policy Act (41 U.S.C. 403(11))).
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1 ‘‘(B) A subcontract referred to in such subpara2 graph that is under a contract described in subpara3 graph (A).’’.

4 SEC. 44023. CIVILIAN AGENCY ACQUISITIONS.

5 (a) REQUIREMENT FOR CONTRACT CLAUSE REGARD6 ING CONTINGENT FEES.—Section 304(a) of the Federal

7 Property and Administrative Services Act of 1949 (41

8 U.S.C. 254(a)) is amended by adding at the end the fol9 lowing: ‘‘The preceding sentence does not apply to a con10 tract that is not in excess of the simplified acquisition

11 threshold.’’.

12 (b) PROHIBITION ON LIMITING SUBCONTRACTOR DI13 RECT SALES TO THE UNITED STATES.—Section 303G of

14 the Federal Property and Administrative Services Act of

15 1949 (41 U.S.C. 253g) is amended by adding at the end

16 the following new subsection:

17 ‘‘(c) This section does not apply to a contract that

18 is not in excess of the simplified acquisition threshold.’’.

19 (c) AUTHORITY TO EXAMINE BOOKS AND RECORDS

20 OF CONTRACTORS.—Section 304B of the Federal Prop21 erty and Administrative Services Act of 1949, as added

22 by section 42251(a), is amended by adding at the end of

23 subsection (f) the following:

24 ‘‘(2) A contract that is not in excess of the sim25 plified acquisition threshold.’’.
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1 SEC. 44024. ACQUISITIONS GENERALLY.

2 (a) LIMITATION ON USE OF FUNDS TO INFLUENCE

3 CERTAIN FEDERAL ACTIONS.—Section 1352(e)(2)(B) of

4 title 31, United States Code, is amended by striking out

5 ‘‘$100,000’’ and inserting in lieu thereof ‘‘the simplified

6 acquisition threshold (as defined in section 4(11) of the

7 Office of Federal Procurement Policy Act (41 U.S.C.

8 403(11)))’’.

9 (b) REQUIREMENT FOR CONTRACT CLAUSE RELAT10 ING TO KICKBACKS.—Section 7 of the Anti-Kickback Act

11 of 1986 (41 U.S.C. 57) is amended by adding at the end

12 the following new subsection:

13 ‘‘(d) Subsections (a) and (b) do not apply to a prime

14 contract that is not in excess of the simplified acquisition

15 threshold (as defined in section 4(11) of the Office of Fed16 eral Procurement Policy Act (41 U.S.C. 403(11))).’’.

17 (c) MILLER ACT.—

18 (1) IN GENERAL.—

19 (A) CONTRACTS NOT EXCEEDING SIM20 PLIFIED ACQUISITION THRESHOLD.—The Act

21 of August 24, 1935 (40 U.S.C. 270a et seq.),

22 commonly referred to as the ‘‘Miller Act’’, is

23 amended by adding at the end the following

24 new section:

25 ‘‘SEC. 5. This Act does not apply to a contract in

26 an amount that is not in excess of the simplified acquisi-
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1 tion threshold (as defined in section 4(11) of the Office

2 of Federal Procurement Policy Act (41 U.S.C.

3 403(11))).’’.

4 (B) CONFORMING AMENDMENT.—Sub5 section (a) of the first section of such Act is

6 amended by striking out ‘‘, exceeding $25,000

7 in amount,’’.

8 (2) ALTERNATIVE PAYMENT PROTECTIONS.—

9 (A) PROTECTIONS TO BE SPECIFIED IN

10 THE FAR.—The Federal Acquisition Regulation

11 shall provide alternatives to payment bonds as

12 payment protections for suppliers of labor and

13 materials under contracts referred to in sub14 paragraph (C).

15 (B) USE OF AUTHORIZED PROTECTIONS.—

16 The contracting officer for a contract shall—

17 (i) select, from among the payment

18 protections provided for in the Federal Ac19 quisition Regulation pursuant to subpara20 graph (A), one or more payment protec21 tions which the offeror awarded the con22 tract is to submit to the Federal Govern23 ment for the protection of suppliers of

24 labor and materials for such contract; and
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1 (ii) specify in the solicitation of offers

2 for such contract the payment protection

3 or protections so selected.

4 (C) COVERED CONTRACTS.—

5 (i) APPLICABILITY.—The regulations

6 required under subparagraph (A) and the

7 requirements of subparagraph (B) apply

8 with respect to contracts referred to in

9 subsection (a) of the first section of the

10 Miller Act that are in excess of $25,000

11 but not in excess of the simplified acquisi12 tion threshold (as defined in section 4(11)

13 of the Office of Federal Procurement Pol14 icy Act (41 U.S.C. 403(11))).

15 (ii) MILLER ACT REFERENCE.—The

16 Miller Act referred to in subparagraph (A)

17 is the Act of August 24, 1935 (40 U.S.C.

18 270a et seq.), commonly referred to as the

19 ‘‘Miller Act’’.

20 (d) CONTRACT WORK HOURS AND SAFETY STAND21 ARDS ACT.—

22 (1) IN GENERAL.—Section 103 of the Contract

23 Work Hours and Safety Standards Act (40 U.S.C.

24 329) is amended by adding at the end the following

25 new subsection:
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1 ‘‘(c) This title does not apply to a contract in an

2 amount that is not in excess of the simplified acquisition

3 threshold (as defined in section 4(11) of the Office of Fed4 eral Procurement Policy Act (41 U.S.C. 403(11))).’’.

5 (2) CONFORMING AMENDMENT.—Section

6 107(a) of such Act (40 U.S.C. 333(a)) is amended

7 by inserting after ‘‘It shall be a condition of each

8 contract’’ the following: ‘‘(other than a contract re9 ferred to in section 103(c))’’.

10 (e) DRUG-FREE WORKPLACE ACT OF 1988.—Section

11 5152(a)(1) of the Drug-Free Workplace Act of 1988 (sub12 title D of title V of the Anti-Drug Abuse Act of 1988;

13 Public Law 100–690; 41 U.S.C. 701(a)(1)) is amended

14 by striking out ‘‘of $25,000 or more from any Federal

15 agency’’ and inserting in lieu thereof ‘‘in excess of the sim16 plified acquisition threshold (as defined in section 4(11)

17 of such Act (41 U.S.C. 403(11))) by any Federal agency’’.

18 (f) CERTAIN PROCUREMENT INTEGRITY REQUIRE19 MENTS.—

20 (1) CERTIFICATION REQUIREMENT.—Sub21 section (e)(7)(A) of section 27 of the Office of Fed22 eral Procurement Policy Act (41 U.S.C. 423) is

23 amended by striking out ‘‘$100,000’’ and inserting

24 in lieu thereof ‘‘the simplified acquisition threshold’’.
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1 (2) CONTRACT CLAUSE REQUIREMENT.—Sub2 section (g)(1) of such section is amended by insert3 ing after ‘‘awarded by a Federal agency’’ the follow4 ing: ‘‘(other than a contract in an amount that is

5 not in excess of the simplified acquisition thresh6 old)’’.

7 (g) SOLID WASTE DISPOSAL ACT.—Section 6002(a)

8 of the Solid Waste Disposal Act (42 U.S.C. 6962(a)) is

9 amended by striking out all that follows ‘‘with respect to

10 any’’ and inserting in lieu thereof ‘‘contract in excess of

11 the simplified acquisition threshold (as defined in section

12 4(11) of the Office of Federal Procurement Policy Act (41

13 U.S.C. 403(11))).’’.

14 PART IV—CONFORMING AMENDMENTS

15 SEC. 44071. ARMED SERVICES ACQUISITIONS.

16 (a) SIMPLIFIED ACQUISITION PROCEDURES.—Sec17 tion 2304(g) of title 10, United States Code, is amended—

18 (1) in paragraph (1), by striking out ‘‘small

19 purchases of property and services’’ and inserting in

20 lieu thereof ‘‘purchases of property and services not

21 in excess of the simplified acquisition threshold’’;

22 (2) by striking out paragraph (2);

23 (3) by redesignating paragraphs (3) and (4) as

24 paragraphs (2) and (3), respectively;

25 (4) in paragraph (2), as so redesignated—
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1 (A) by striking out ‘‘small purchase

2 threshold’’ and inserting in lieu thereof ‘‘sim3 plified acquisition threshold’’; and

4 (B) by striking out ‘‘small purchase proce5 dures’’ and inserting in lieu thereof ‘‘simplified

6 procedures’’; and

7 (5) in paragraph (3), as redesignated by para8 graph (3), by striking out ‘‘small purchase proce9 dures’’ and inserting in lieu thereof ‘‘the simplified

10 procedures’’.

11 (b) SOLICITATION CONTENT REQUIREMENT.—Sec12 tion 2305(a)(2) of title 10, United States Code, is amend13 ed by striking out ‘‘small purchases)’’ in the matter above

14 subparagraph (A) and inserting in lieu thereof ‘‘purchases

15 not in excess of the simplified acquisition threshold)’’.

16 (c) COST TYPE CONTRACTS.—Section 2306(e)(2)(A)

17 of title 10, United States Code, is amended by striking

18 out ‘‘small purchase threshold’’ and inserting in lieu there19 of ‘‘simplified acquisition threshold’’.

20 SEC. 44072. CIVILIAN AGENCY ACQUISITIONS.

21 (a) SIMPLIFIED ACQUISITION PROCEDURES.—

22 (1) PROPERTY AND SERVICES GENERALLY.—

23 Section 303(g) of the Federal Property and Admin24 istrative Services Act of 1949 (41 U.S.C. 253(g)) is

25 amended—
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1 (A) in paragraph (1), by striking out

2 ‘‘small purchases of property and services’’ and

3 inserting in lieu thereof ‘‘purchases of property

4 and services not in excess of the simplified ac5 quisition threshold’’;

6 (B) by striking out paragraphs (2) and

7 (5);

8 (C) in paragraph (3)—

9 (i) by striking out ‘‘small purchase

10 threshold’’ and inserting in lieu thereof

11 ‘‘simplified acquisition threshold’’; and

12 (ii) by striking out ‘‘small purchase

13 procedures’’ and inserting in lieu thereof

14 ‘‘simplified procedures’’;

15 (D) in paragraph (4), by striking out

16 ‘‘small purchase procedures’’ and inserting in

17 lieu thereof ‘‘the simplified procedures’’; and

18 (E) by inserting after paragraph (1) the

19 following new paragraph (2):

20 ‘‘(2)(A) The Administrator of General Services shall

21 prescribe regulations that provide special simplified proce22 dures for acquisitions of leasehold interests in real prop23 erty at rental rates that do not exceed the simplified acqui24 sition threshold.
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1 ‘‘(B) For purposes of subparagraph (A), the rental

2 rate or rates under a multiyear lease do not exceed the

3 simplified acquisition threshold if the average annual

4 amount of the rent payable for the period of the lease does

5 not exceed the simplified acquisition threshold.’’.

6 (b) SOLICITATION CONTENT REQUIREMENT.—Sec7 tion 303A(b) of the Federal Property and Administrative

8 Services Act of 1949 (41 U.S.C. 253a(b)) is amended by

9 striking out ‘‘small purchases)’’ in the matter above para10 graph (1) and inserting in lieu thereof ‘‘purchases not in

11 excess of the simplified acquisition threshold)’’.

12 (c) COST TYPE CONTRACTS.—Section 304(b) of the

13 Federal Property and Administrative Services Act of 1949

14 (41 U.S.C. 254(b)), as amended by section 41071, is fur15 ther amended in the second sentence by striking out ‘‘ei16 ther $25,000’’ and inserting in lieu thereof ‘‘either the

17 simplified acquisition threshold’’.

18 SEC. 44073. OFFICE OF FEDERAL PROCUREMENT POLICY

19 ACT.

20 Section 19(a) of the Office of Federal Procurement

21 Policy Act (41 U.S.C. 417(a)) is amended by striking out

22 ‘‘procurements, other than small purchases,’’ and insert23 ing in lieu thereof ‘‘procurements in excess of the sim24 plified acquisition threshold’’.
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1 SEC. 44074. SMALL BUSINESS ACT.

2 (a) DEFINITION.—Section 3(m) of the Small Busi3 ness Act (15 U.S.C. 632(m)) is amended by striking out

4 ‘‘ ‘small purchase threshold’ ’’ and inserting in lieu thereof

5 ‘‘ ‘simplified acquisition threshold’ ’’.

6 (b) USE OF SIMPLIFIED ACQUISITION THRESHOLD

7 TERM.—Section 8(d)(2)(A) of the Small Business Act (15

8 U.S.C. 637(d)(2)(A)) is amended by striking out ‘‘small

9 purchase threshold’’ and inserting in lieu thereof ‘‘sim10 plified acquisition threshold’’.

11 PART V—REVISION OF REGULATIONS

12 SEC. 44081. REVISION REQUIRED.

13 (a) FEDERAL ACQUISITION REGULATION.—The Fed14 eral Acquisition Regulatory Council established by section

15 25(a) of the Office of Federal Procurement Policy Act (41

16 U.S.C. 421(a)) shall review the Federal Acquisition Regu17 lation to identify regulations that are applicable to acquisi18 tions in excess of a specified amount that is less than

19 $100,000. The Council shall amend the regulations so

20 identified as necessary to provide that such regulations do

21 not apply to acquisitions that are not in excess of the sim22 plified acquisition threshold. The preceding sentence does

23 not apply in the case of a regulation for which such an

24 amendment would not be in the national interest, as deter25 mined by the Council.
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1 (b) SUPPLEMENTAL REGULATIONS.—The head of

2 each Federal agency that has issued regulations, policies,

3 or procedures referred to in section 25(c)(2) of the Office

4 of Federal Procurement Policy Act (41 U.S.C. 421(c)(2))

5 shall identify any such regulations, policies, or procedures

6 that are applicable to acquisitions in excess of a specified

7 amount that is less than $100,000. The agency head shall

8 amend the regulations so identified as necessary to provide

9 that such regulations, policies, and procedures do not

10 apply to acquisitions that are not in excess of the sim11 plified acquisition threshold. The preceding sentence does

12 not apply in the case of a regulation, policy, or procedure

13 for which such an amendment would not be in the national

14 interest, as determined by the agency head.

15 (c) COMPLETION OF ACTIONS.—All actions under

16 this section shall be completed not later than 180 days

17 after the date of the enactment of this Act.

18 (d) DEFINITIONS.—In this section:

19 (1) The term ‘‘simplified acquisition threshold’’

20 has the meaning given such term in section 4(11) of

21 the Office of Federal Procurement Policy Act (41

22 U.S.C. 403(11)), as amended by section 44001.

23 (2) The term ‘‘Federal agency’’ has the mean24 ing given such term in section 3(b) of the Federal
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1 Property and Administrative Services Act of 1949

2 (41 U.S.C. 472(b)).

3 Subtitle B—Socioeconomic and

4 Small Business Laws

5 SEC. 44101. ACQUISITIONS GENERALLY.

6 (a) REPEAL OF EXECUTED REPORTING REQUIRE7 MENT.—Section 306 of the Trade Agreements Act of 1979

8 (19 U.S.C. 2516) is repealed.

9 (b) WALSH-HEALEY ACT.—

10 (1) REPEAL OTHER THAN FOR CERTAIN DEFI11 NITIONAL PURPOSES.—The Act of June 30, 1936

12 (41 U.S.C. 35 et seq.), commonly referred to as the

13 ‘‘Walsh-Healey Act’’, is amended to read as follows:

14 ‘‘SECTION 1. (a) The Secretary of Labor may pre15 scribe in regulations the standards for determining wheth16 er a contractor is a manufacturer of or a regular dealer

17 in materials, supplies, articles, or equipment to be manu18 factured or used in the performance of a contract entered

19 into by any executive department, independent establish20 ment, or other agency or instrumentality of the United

21 States, or by the District of Columbia, or by any corpora22 tion all the stock of which is beneficially owned by the

23 United States, for the manufacture or furnishing of mate24 rials, supplies, articles, and equipment.
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1 ‘‘(b) Any interested person shall have the right of ju2 dicial review of any legal question regarding the interpre3 tation of the terms ‘regular dealer’ and ‘manufacturer’,

4 as defined pursuant to subsection (a).’’

5 (2) CONFORMING AMENDMENT.—Section

6 2304(h) of title 10, United States Code, is amended

7 to read as follows:

8 ‘‘(h) For the purposes of the Act entitled ‘An Act

9 relating to the rate of wages for laborers and mechanics

10 employed on public buildings of the United States and the

11 District of Columbia by contractors and subcontractors,

12 and for other purposes’, approved March 3, 1931 (com13 monly referred to as the ‘Davis-Bacon Act’) (40 U.S.C.

14 276a et seq.), purchases or contracts awarded after using

15 procedures other than sealed-bid procedures shall be treat16 ed as if they were made with sealed-bid procedures.’’.

17 (c) REPEAL OF REDUNDANT REQUIREMENT RE18 GARDING APPLICABILITY OF THE DAVIS-BACON ACT AND

19 THE WALSH-HEALEY ACT.—Section 308 of the Federal

20 Property and Administrative Services Act of 1949 (41

21 U.S.C. 258) is repealed.

22 SEC. 44102. ACQUISITIONS FROM SMALL BUSINESSES.

23 (a) SET-ASIDE PRIORITY.—Section 15 of the Small

24 Business Act (15 U.S.C. 644) is amended by striking out

25 subsections (e) and (f).
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1 (b) CERTIFICATE OF COMPETENCE.—Section 804 of

2 Public Law 103–484 (106 Stat. 2447; 10 U.S.C. 2305

3 note) is repealed.

4 SEC. 44103. CONTRACTING PROGRAM FOR CERTAIN SMALL

5 BUSINESS CONCERNS.

6 (a) PROCUREMENT PROCEDURES AUTHORIZED.—

7 Section 8 of the Small Business Act (15 U.S.C. 637) is

8 amended by inserting after subsection (b) the following

9 new subsection:

10 ‘‘(c)(1) To facilitate the attainment of a goal for the

11 participation of small business concerns owned and con12 trolled by socially and economically disadvantaged individ13 uals that is established for a Federal agency pursuant to

14 section 15(g)(1), the head of the agency may enter into

15 contracts using—

16 ‘‘(A) less than full and open competition by re17 stricting the competition for such awards to small

18 business concerns owned and controlled by socially

19 and economically disadvantaged individuals de20 scribed in subsection (d)(3)(C) of this section; and

21 ‘‘(B) a price evaluation preference not in excess

22 of 10 percent when evaluating an offer received from

23 such a small business concern as the result of an un24 restricted solicitation.
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1 ‘‘(2) Paragraph (1) does not apply to the Department

2 of Defense.’’.

3 (b) IMPLEMENTATION THROUGH THE FEDERAL AC4 QUISITION REGULATION.—

5 (1) IN GENERAL.—The Federal Acquisition

6 Regulation shall be amended to provide for uniform

7 implementation of the authority provided in section

8 8(c) of the Small Business Act, as added by sub9 section (a).

10 (2) MATTERS TO BE ADDRESSED.—The provi11 sions of the Federal Acquisition Regulation pre12 scribed pursuant to paragraph (1) shall include—

13 (A) conditions for the use of advance pay14 ments;

15 (B) provisions for contract payment terms

16 that provide for—

17 (i) accelerated payment for work per18 formed during the period for contract per19 formance; and

20 (ii) full payment for work performed;

21 (C) guidance on how contracting officers

22 may use, in solicitations for various classes of

23 products or services, a price evaluation pref24 erence pursuant to section 8(c)(1)(B) of the

25 Small Business Act, as added by subsection (a),
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1 to provide a reasonable advantage to small busi2 ness concerns owned and controlled by socially

3 and economically disadvantaged individuals

4 without effectively eliminating any participation

5 of other small business concerns; and

6 (D)(i) procedures for a person to request

7 the head of Federal agency to determine wheth8 er the use of competitions restricted to small

9 business concerns owned and controlled by so10 cially and economically disadvantaged individ11 uals at a contracting activity of such agency

12 has caused a particular industry category to

13 bear a disproportionate share of the contracts

14 awarded to attain the goal established for that

15 contracting activity; and

16 (ii) guidance for limiting the use of such

17 restricted competitions in the case of any con18 tracting activity and class of contracts deter19 mined in accordance with such procedures to

20 have caused a particular industry category to

21 bear a disproportionate share of the contracts

22 awarded to attain the goal established for that

23 contracting activity.
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1 (c) TERMINATION.—Section 8(c) of the Small Busi2 ness Act, as added by subsection (a), shall cease to be

3 effective at the end of September 30, 1999.

4 SEC. 44104. PROCUREMENT GOALS FOR SMALL BUSINESS

5 CONCERNS OWNED BY WOMEN.

6 (a) GOALS.—Section 15 of the Small Business Act

7 (15 U.S.C. 644) is amended—

8 (1) by striking out ‘‘and small business con9 cerns owned and controlled by socially and economi10 cally disadvantaged individuals’’ each place it ap11 pears in the first sentence and fourth sentences of

12 subsection (g)(1), the second sentence of subsection

13 (g)(2), and paragraphs (1), (2)(A), (2)(D), and

14 (2)(E) of subsection (h) and inserting in lieu thereof

15 ‘‘, small business concerns owned and controlled by

16 socially and economically disadvantaged individuals,

17 and small business concerns owned and controlled by

18 women’’;

19 (2) in subsection (g)—

20 (A) by inserting after the third sentence of

21 paragraph (1) the following: ‘‘The Government22 wide goal for participation by small business

23 concerns owned and controlled by women shall

24 be established at not less than 5 percent of the
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1 total value of all prime contract and sub2 contract awards for each fiscal year.’’;

3 (B) in the first sentence of paragraph (2),

4 by striking out ‘‘and by small business concerns

5 owned and controlled by socially and economi6 cally disadvantaged individuals,’’ and inserting

7 in lieu thereof ‘‘, by small business concerns

8 owned and controlled by socially and economi9 cally disadvantaged individuals, and by small

10 business concerns owned and controlled by

11 women’’; and

12 (C) in the fourth sentence of paragraph

13 (2), by inserting after ‘‘including participation

14 by small business concerns owned and con15 trolled by socially and economically disadvan16 taged individuals’’ the following: ‘‘and by par17 ticipation small business concerns owned and

18 controlled by women’’; and

19 (3) in subsection (h)(2)(F), by striking out

20 ‘‘women-owned small business enterprises’’ and in21 serting in lieu thereof ‘‘small business concerns

22 owned and controlled by women’’.

23 (b) SUBCONTRACT PARTICIPATION.—Section 8(d) of

24 such Act (15 U.S.C. 637(d)) is amended—
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1 (1) by striking out ‘‘and small business con2 cerns owned and controlled by socially and economi3 cally disadvantaged individuals’’ both places it ap4 pears in paragraph (1), both places it appears in

5 paragraph (3)(A), in paragraph (4)(D), in subpara6 graphs (A), (C), and (F) of paragraph (6), and in

7 paragraph (10)(B) and inserting in lieu thereof ‘‘,

8 small business concerns owned and controlled by so9 cially and economically disadvantaged individuals,

10 and small business concerns owned and controlled by

11 women’’;

12 (2) by striking out subparagraph (D) in para13 graph (3) and inserting in lieu thereof the following:

14 ‘‘(E) Contractors acting in good faith may rely

15 on written representations by their subcontractors

16 regarding their status as either a small business con17 cern, a small business concern owned and controlled

18 by socially and economically disadvantaged individ19 uals, or a small business concern owned and con20 trolled by women.’’;

21 (3) in paragraph (3), by inserting after sub22 paragraph (C) the following new subparagraph (D):

23 ‘‘(D) The term ‘small business concern owned

24 and controlled by women’ shall mean a small busi25 ness concern—
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1 ‘‘(i) which is at least 51 per centum owned

2 by one or more women; or, in the case of any

3 publicly owned business, at least 51 per centum

4 of the stock of which is owned by one or more

5 women; and

6 ‘‘(ii) whose management and daily business

7 operations are controlled by one or more

8 women.’’; and

9 (4) in paragraph (4)(E), by inserting ‘‘and for

10 small business concerns owned and controlled by

11 women’’ after ‘‘as defined in paragraph (3) of this

12 subsection’’.

13 (c) MISREPRESENTATIONS OF STATUS.—(1) Sub14 section (d)(1) of section 16 of such Act (15 U.S.C. 645)

15 is amended by striking out ‘‘or ‘small business concern

16 owned and controlled by socially and economically dis17 advantaged individuals’ ’’ and inserting in lieu thereof ‘‘,

18 a ‘small business concern owned and controlled by socially

19 and economically disadvantaged individuals’, or a ‘small

20 business concerns owned and controlled by women’ ’’.

21 (2) Subsection (e) of such section is amended by

22 striking out ‘‘or ‘small business concern owned and con23 trolled by socially and economically disadvantaged individ24 uals’ ’’ and inserting in lieu thereof ‘‘, a ‘small business

25 concern owned and controlled by socially and economically
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1 disadvantaged individuals’, or a ‘small business concerns

2 owned and controlled by women’ ’’.

3 (d) DEFINITION.—Section 3 of such Act (15 U.S.C.

4 632) is amended by adding at the end the following new

5 subsection:

6 ‘‘(n) For the purposes of this Act, a small business

7 concern is a small business concern owned and controlled

8 by women if—

9 ‘‘(1) at least 51 percent of small business con10 cern is owned by one or more women or, in the case

11 of any publicly owned business, at least 51 percent

12 of the stock of which is owned by one or more

13 women; and

14 ‘‘(2) the management and daily business oper15 ations of the business are controlled by one or more

16 women.’’.

17 SEC. 44105. DEVELOPMENT OF DEFINITIONS REGARDING

18 CERTAIN SMALL BUSINESS CONCERNS.

19 (a) REVIEW REQUIRED.—

20 (1) DEFINITIONS TO BE IDENTIFIED.—The Ad21 ministrator for Federal Procurement Policy shall

22 conduct a comprehensive review of Federal laws, as

23 in effect on November 1, 1994, to identify and cata24 logue all of the provisions in such laws that define

25 (or describe for definitional purposes) the small busi-
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1 ness concerns set forth in paragraph (2) for pur2 poses of authorizing the participation of such small

3 business concerns as prime contractors or sub4 contractors in—

5 (A) contracts awarded directly by the Fed6 eral Government or subcontracts awarded under

7 such contracts; or

8 (B) contracts and subcontracts funded, in

9 whole or in part, by Federal financial assistance

10 under grants, cooperative agreements, or other

11 forms of Federal assistance.

12 (2) COVERED SMALL BUSINESS CONCERNS.—

13 The small business concerns referred to in para14 graph (1) are as follows:

15 (A) Small business concerns owned and

16 controlled by socially and economically dis17 advantaged individuals.

18 (B) Minority-owned small business con19 cerns.

20 (C) Small business concerns owned and

21 controlled by women.

22 (D) Woman-owned small business con23 cerns.

24 (b) MATTERS TO BE DEVELOPED.—On the basis of

25 the results of the review carried out under subsection (a),
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1 the Administrator for Federal Procurement Policy shall

2 develop—

3 (1) uniform definitions for the small business

4 concerns referred to in subsection (a)(2);

5 (2) uniform agency certification standards and

6 procedures for—

7 (A) determinations of whether a small

8 business concern qualifies as a small business

9 concern referred to in subsection (a)(2) under

10 an applicable standard for purposes contracts

11 and subcontracts referred to in subsection

12 (a)(1); and

13 (B) reciprocal recognition by an agency of

14 a decision of another agency regarding whether

15 a small business concern qualifies as a small

16 business concern referred to in subsection

17 (a)(2) for such purposes; and

18 (3) such other related recommendations as the

19 Administrator determines appropriate consistent

20 with the review results.

21 (c) PROCEDURES AND SCHEDULE.—

22 (1) PARTICIPATION BY CERTAIN INTERESTED

23 PARTIES.—The Administrator for Federal Procure24 ment Policy shall provide for the participation in the
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1 review and activities under subsections (a) and (b)

2 by representatives of—

3 (A) the Small Business Administration (in4 cluding the Office of the Chief Counsel for Ad5 vocacy);

6 (B) the Minority Business Development

7 Agency of the Department of Commerce;

8 (C) the Department of Transportation;

9 (D) the Environmental Protection Agency;

10 and

11 (E) such other executive departments and

12 agencies as the Administrator considers appro13 priate.

14 (2) CONSULTATION WITH CERTAIN INTERESTED

15 PARTIES.—In carrying out subsections (a) and (b),

16 the Administrator shall consult with representatives

17 of organizations representing—

18 (A) minority-owned business enterprises;

19 (B) women-owned business enterprises;

20 and

21 (C) other organizations that the Adminis22 trator considers appropriate.

23 (3) SCHEDULE.—Not later than 60 days after

24 the date of the enactment of this Act, the Adminis-
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1 trator shall publish in the Federal Register a notice

2 which—

3 (A) lists the provisions of law identified in

4 the review carried out under subsection (a);

5 (B) describes the matters to be developed

6 on the basis of the results of the review pursu7 ant to subsection (b);

8 (C) solicits public comment regarding the

9 matters described in the notice pursuant to sub10 paragraphs (A) and (B) for a period of not less

11 than 60 days; and

12 (D) addresses such other matters as the

13 Administrator considers appropriate to ensure

14 the comprehensiveness of the review and activi15 ties under subsections (a) and (b).

16 (d) REPORT.—Not later than May 1, 1995, the Ad17 ministrator for Federal Procurement Policy shall submit

18 to the Committees on Small Business of the Senate and

19 the House of Representatives a report on the results of

20 the review carried out under subsection (a) and the actions

21 taken under subsection (b). The report shall include a dis22 cussion of the results of the review, a description of the

23 consultations conducted and public comments received,

24 and the Administrator’s recommendations with regard to

25 the matters identified under subsection (b).
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1 Subtitle C—Miscellaneous

2 Acquisition Laws

3 SEC. 44151. PROHIBITION ON USE OF FUNDS FOR DOCU4 MENTING ECONOMIC OR EMPLOYMENT IM5 PACT OF CERTAIN ACQUISITION PROGRAMS.

6 (a) REVISION AND CODIFICATION.—

7 (1) IN GENERAL.—Subchapter I of chapter 134

8 of title 10, United States Code, is amended by add9 ing at the end the following new section:

10 ‘‘§ 2247. Prohibition on use of funds for documenting

11 economic or employment impact of cer12 tain acquisition programs

13 ‘‘No funds appropriated by the Congress may be obli14 gated or expended to assist any contractor of the Depart15 ment of Defense in preparing any material, report, lists,

16 or analysis with respect to the actual or projected eco17 nomic or employment impact in a particular State or con18 gressional district of an acquisition program for which all

19 research, development, testing, and evaluation has not

20 been completed.’’.

21 (2) CLERICAL AMENDMENT.—The table of sec22 tions at the beginning of such subchapter is amend23 ed by adding at the end the following new item:

‘‘2247. Prohibition on use of funds for documenting economic or employment

impact of certain acquisition programs.’’.
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1 (b) REPEAL OF SUPERSEDED LAW.—Section 9048 of

2 Public Law 102–396 (106 Stat. 1913) is repealed.

3 SEC. 44152. RESTRICTION ON USE OF NONCOMPETITIVE

4 PROCEDURES FOR PROCUREMENT FROM A

5 PARTICULAR SOURCE.

6 (a) ARMED SERVICES ACQUISITIONS.—Section 2304

7 of title 10, United States Code, as amended by section

8 41005(b), is further amended—

9 (1) in subsection (c)(5), by inserting ‘‘subject to

10 subsection (j),’’ after ‘‘(5)’’; and

11 (2) by adding at the end the following new sub12 section:

13 ‘‘(j)(1) It is the policy of Congress that no legislation

14 should be enacted that requires a procurement to be made

15 from a specified non-Federal Government source.

16 ‘‘(2) A provision of law may not be construed as re17 quiring a procurement to be made from a specified non18 Federal Government source unless that provision of law—

19 ‘‘(A) specifically refers to this subsection;

20 ‘‘(B) specifically identifies the particular non21 Federal Government source involved; and

22 ‘‘(C) specifically states that the procurement

23 from that source is required by such provision of law

24 in contravention of the policy set forth in paragraph

25 (1).’’.
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1 (b) CIVILIAN AGENCY ACQUISITIONS.—Section 303

2 of the Federal Property and Administrative Services Act

3 of 1949 (41 U.S.C. 253) is amended—

4 (1) in subsection (c)(5), by inserting ‘‘subject to

5 subsection (h),’’ after ‘‘(5)’’; and

6 (2) by adding at the end the following new sub7 section:

8 ‘‘(h)(1) It is the policy of Congress that no legislation

9 should be enacted that requires a procurement to be made

10 from a specified non-Federal Government source.

11 ‘‘(2) A provision of law may not be construed as re12 quiring a procurement to be made from a specified non13 Federal Government source unless that provision of law—

14 ‘‘(A) specifically refers to this subsection;

15 ‘‘(B) specifically identifies the particular non16 Federal Government source involved; and

17 ‘‘(C) specifically states that the procurement

18 from that source is required by such provision of law

19 in contravention of the policy set forth in paragraph

20 (1).’’.
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1 TITLE XLV—ACQUISITION

2 MANAGEMENT

3 Subtitle A—Armed Services

4 Acquisitions

5 SEC. 45001. PERFORMANCE BASED MANAGEMENT.

6 (a) POLICY AND GOALS FOR PERFORMANCE BASED

7 MANAGEMENT OF PROGRAMS.—

8 (1) IN GENERAL.—Chapter 131 of title 10,

9 United States Code, is amended by adding at the

10 end the following new section:

11 ‘‘§ 2219. Performance based management: acquisition

12 programs

13 ‘‘(a) CONGRESSIONAL POLICY.—It is the policy of

14 Congress that—

15 ‘‘(1) the Department of Defense should achieve,

16 on average, 90 percent of the cost and schedule

17 goals established for the research and development

18 programs and acquisition programs of the Depart19 ment of Defense without reducing the performance

20 or capabilities of the items being acquired; and

21 ‘‘(2) the average period necessary for converting

22 an emerging technology into initial operational capa23 bility for the Department of Defense should not ex24 ceed 8 years.
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1 ‘‘(b) ESTABLISHMENT OF GOALS.—(1) The Sec2 retary of Defense shall approve or define the cost, per3 formance, and schedule goals for major defense acquisition

4 programs of the Department of Defense.

5 ‘‘(2) The Comptroller of the Department of Defense

6 shall evaluate the cost goals proposed for each major de7 fense acquisition program of the Department.

8 ‘‘(c) IDENTIFICATION OF NONCOMPLIANT PRO9 GRAMS.—Whenever it is necessary to do so in order to

10 implement the policy set out in subsection (a), the Sec11 retary of Defense shall—

12 ‘‘(1) identify and consider whether there is a

13 continuing need for programs that are significantly

14 behind schedule, over budget, or not in compliance

15 with performance or capability requirements taking

16 into consideration—

17 ‘‘(A) the needs of the Department known

18 as of the time of consideration;

19 ‘‘(B) the state of the technology or tech20 nologies relevant to the programs and to the

21 needs of the Department;

22 ‘‘(C) the estimated costs and projected

23 schedules necessary for the completion of such

24 programs; and

25 ‘‘(D) other pertinent information; and
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1 ‘‘(2) identify existing and potential research

2 and development programs and acquisition programs

3 that are suitable alternatives for programs consid4 ered pursuant to paragraph (1).

5 ‘‘(d) ANNUAL REPORTING REQUIREMENT.—The Sec6 retary of Defense shall include in the annual report sub7 mitted to Congress pursuant to section 113(c) of this title

8 an assessment of the progress made in implementing the

9 policy stated in subsection (a). The Secretary shall use

10 data from existing management systems in making the as11 sessment.’’.

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions at the beginning of such chapter is amended

14 by adding at the end the following new item:

‘‘2219. Performance based management: acquisition programs.’’.

15 (b) ENHANCED SYSTEM OF PERFORMANCE INCEN16 TIVES.—Within one year after the date of the enactment

17 of this Act, the Secretary of Defense shall review the in18 centives and personnel actions available to the Secretary

19 for encouraging excellence in the defense acquisition

20 workforce and provide an enhanced system of incentives

21 for the encouragement of excellence in such workforce.

22 The enhanced system of incentives shall, to the maximum

23 extent consistent with applicable law—

24 (1) relate pay to performance (including the ex25 tent to which the performance of personnel in such
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1 workforce contributes to achieving the cost goals,

2 schedule goals, and performance goals established

3 for acquisition programs of the department pursuant

4 to section 2219(b) of title 10, as added by sub5 section (a)); and

6 (2) provide for consideration, in personnel eval7 uations and promotion decisions, of the extent to

8 which the performance of personnel in such

9 workforce contributes to achieving the cost goals,

10 schedule goals, and performance goals established

11 for acquisition programs of the department pursuant

12 to section 2219(b) of title 10, United States Code,

13 as added by subsection (a).

14 (c) RECOMMENDED LEGISLATION.—Not later than

15 one year after the date of the enactment of this Act, the

16 Secretary of Defense shall submit to Congress any rec17 ommended legislation that the Secretary considers nec18 essary to carry out section 2219 of title 10, United States

19 Code, as added by subsection (a), and otherwise to facili20 tate and enhance management of Department of Defense

21 acquisition programs and the defense acquisition

22 workforce on the basis of performance.
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1 SEC. 45002. RESULTS ORIENTED ACQUISITION PROGRAM

2 CYCLE.

3 The Secretary of Defense shall define in regulations

4 a simplified acquisition program cycle that is results-ori5 ented. The Secretary shall consider including in the regu6 lations provisions for the following:

7 (1) Program phases as follows:

8 (A) An integrated decision team meeting

9 which—

10 (i) may be requested by a potential

11 user of the system or component to be ac12 quired, the head of a laboratory, or a pro13 gram office on such bases as the emer14 gence of a new military requirement, cost

15 savings opportunity, or new technology op16 portunity;

17 (ii) is conducted by an acquisition

18 program executive officer; and

19 (iii) is usually completed within 1 to 3

20 months.

21 (B) A prototype development and testing

22 phase which—

23 (i) includes operational tests and con24 cerns relating to manufacturing operations

25 and life cycle support;
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1 (ii) is usually completed within 6 to

2 36 months; and

3 (iii) produces sufficient numbers of

4 prototypes to assess operational utility.

5 (C) Product integration, development, and

6 testing which—

7 (i) includes full-scale development,

8 operational testing, and integration of

9 components; and

10 (ii) is usually completed within 1 to 5

11 years.

12 (D) Production, integration into existing

13 systems, or production and integration into ex14 isting systems.

15 (2) An acquisition program approval process for

16 major program decisions which consists of the fol17 lowing:

18 (A) One major decision point—

19 (i) which occurs for an acquisition

20 program before the program proceeds into

21 product integration and development; and

22 (ii) at which the Under Secretary of

23 Defense for Acquisition and Technology, in

24 consultation with the Vice Chairman of the

25 Joint Chiefs of Staff reviews the program,
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1 determines whether the program should

2 continue to be carried out beyond product

3 integration and development, and decides

4 whether to commit to further development,

5 to require further prototyping, or to termi6 nate the program.

7 (B) Consideration of the potential benefits,

8 affordability, needs, and risks of an acquisition

9 program in the review of the acquisition pro10 gram.

11 SEC. 45003. DEFENSE ACQUISITION PILOT PROGRAM DES12 IGNATIONS.

13 (a) PROGRAMS AND WAIVERS.—The National De14 fense Authorization Act for Fiscal Year 1994 (Public Law

15 103–160) is amended by inserting the following new sec16 tion at the end of subtitle D of title VIII:

17 ‘‘SEC. 4840. DEFENSE ACQUISITION PILOT PROGRAM DES18 IGNATIONS.

19 ‘‘(a) ELIGIBLE PROGRAMS.—The Secretary of De20 fense is authorized to designate the following defense ac21 quisition programs for participation in the defense acquisi22 tion pilot program authorized by section 809 of the Na23 tional Defense Authorization Act for Fiscal Year 1991 (10

24 U.S.C. 2430 note):
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1 ‘‘(1) Defense Personnel Support Center medi2 cal, clothing and textile, and subsistence programs

3 with respect to the following:

4 ‘‘(A) All contracts for processed fruits and

5 vegetables and frozen seafood items for both

6 depot stock and direct vendor delivery.

7 ‘‘(B) All contracts in the subsistence prime

8 vendor program for grocery items.

9 ‘‘(C) All contracts in the Mail Order Phar10 macy Program, the prime vendor programs for

11 pharmaceuticals and for medical surgical items

12 for delivery to military hospitals.

13 ‘‘(D) All contracts in the medical electronic

14 commerce program for acquisition for depot

15 stock and direct vendor delivery.

16 ‘‘(E) All contracts for the following items:

17 dress coats (small lots), dress coats, duffel

18 bags, Navy work clothing, general purpose

19 tents, suitcases, gloves for electrical workers,

20 boot flyers, socks, drawers, undershirts, and

21 items offered under the Broad Agency An22 nouncements for Clothing and Textiles Ad23 vanced Business Practices Demonstration Pro24 gram.
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1 ‘‘(2) The Fire Support Combined Arms Tactical

2 Trainer program with respect to all contracts di3 rectly related to the procurement of a training sys4 tem (including related hardware, software, and sub5 systems) to perform collective training of field artil6 lery gunnery team components with development of

7 software as required to generate the training exer8 cises and component interfaces.

9 ‘‘(3) The Joint Direct Attack Munition pro10 gram (JDAM I) with respect to all contracts directly

11 related to the development and procurement of a

12 strap-on guidance kit, using an inertially guided,

13 Global Positioning System updated guidance kit for

14 inventory 1,000 and 2,000 pound bombs.

15 ‘‘(4) The Joint Primary Aircraft Training Sys16 tem (JPATS) with respect to all contracts directly

17 related to the acquisition of a new primary trainer

18 aircraft to fulfill Air Force and Navy joint under19 graduate aviation training requirements, and an as20 sociated ground-based training system consisting of

21 air crew training devices (simulators), courseware, a

22 Training Management System, and contractor sup23 port for the life of the system.

24 ‘‘(5) The Commercial Derivatives Aircraft pro25 gram with respect to all contracts directly related to
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1 the acquisition or upgrading of civil-derivative air2 craft for use in (A) foreign military sales of Airborne

3 Warning and Control Systems to foreign govern4 ments with modifications of a type customarily pro5 vided to commercial customers, or (B) future Air

6 Force airlift and tanker requirements.

7 ‘‘(6) The Commercial Derivative Engine pro8 gram with respect to all contracts directly related to

9 the acquisition of (A) commercially derived engines

10 (including spare engines), logistics support equip11 ment, technical orders, management data, and initial

12 spare parts for use in the C–17A production line,

13 and (B) commercially derived engines to support the

14 purchase of commercial-derivative aircraft to meet

15 future Air Force airlift and tanker requirements, in16 cluding engine replacement and upgrades.

17 ‘‘(b) WAIVER AUTHORITY.—Subject to section 809(c)

18 of the National Defense Authorization Act for Fiscal Year

19 1991, the Secretary of Defense is authorized—

20 ‘‘(1) to apply any amendment or repeal of a

21 provision of law made in the Federal Acquisition

22 Streamlining Act of 1994 to the programs described

23 in subsection (a) before the effective date of such

24 amendment or repeal; and
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1 ‘‘(2) to apply to a procurement of noncommer2 cial items under such programs—

3 ‘‘(A) any authority provided in such Act

4 (or in an amendment made by a provision of

5 such Act) to waive a provision of law in the

6 case of commercial items, and

7 ‘‘(B) any exception applicable under such

8 Act (or an amendment made by a provision of

9 such Act) in the case of commercial items,

10 before the effective date of such provision (or

11 amendment) to the extent that the Secretary deter12 mines necessary to test the application of such waiv13 er or exception to procurements of noncommercial

14 items.

15 ‘‘(c) PILOT PROGRAM IMPLEMENTATION.—In exer16 cising the authority provided in section 809 of the Na17 tional Defense Authorization Act for 1991, and in accord18 ance with sections 833 through 839 of this Act, the Sec19 retary of Defense, shall take the following actions:

20 ‘‘(1) MISSION-ORIENTED PROGRAM MANAGE21 MENT.—For one or more of the defense acquisition

22 programs designated for participation in the defense

23 acquisition pilot program, prescribe and implement

24 procedures which—
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1 ‘‘(A) provide for interaction between the

2 program manager and the commander of the

3 operational command responsible for the re4 quirement for the equipment acquired;

5 ‘‘(B) include provisions for a determination

6 by the commander that items proposed for pro7 curement fulfill the need defined in approved

8 requirements documents; and

9 ‘‘(C) may include a role for the operational

10 commander in decision making for program

11 milestone decisions and performance of accept12 ance testing of items acquired.

13 ‘‘(2) SAVINGS OBJECTIVES.—Not later than 45

14 days after the date of enactment of the Federal Ac15 quisition Streamlining Act of 1994, identify for each

16 defense acquisition program participating in the

17 pilot program quantitative measures and goals for

18 reducing acquisition management costs.

19 ‘‘(3) PROGRAM PHASES.—For each defense ac20 quisition program participating in the pilot program,

21 incorporate in an approved acquisition strategy a

22 program review process that provides senior acquisi23 tion officials with reports that—

24 ‘‘(A) contain essential information on pro25 gram results at quarterly intervals;
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1 ‘‘(B) reduce data requirements from the

2 current major program review reporting re3 quirements; and

4 ‘‘(C) include data on program costs esti5 mates, actual expenditures, performance esti6 mates, performance data from tests, and, con7 sistent with existing statutes, the minimum nec8 essary other data items required to ensure the

9 appropriate expenditure of funds appropriated

10 for that program.

11 ‘‘(4) PROGRAM WORK FORCE POLICIES.—With

12 regard to the review of incentives and personnel ac13 tions required under section 836 of this Act—

14 ‘‘(A) not later than 60 days after the date

15 of the enactment of the Federal Acquisition

16 Streamlining Act of 1994—

17 ‘‘(i) complete the review; and

18 ‘‘(ii) on the basis of the review, define

19 one or more systems that relate incentives,

20 including pay, to achievement of budgets,

21 schedules, and performance requirements;

22 ‘‘(B) not later than 120 days after the

23 date of the enactment of the Federal Acquisi24 tion Streamlining Act of 1994—
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1 ‘‘(i) apply such a system of incentives

2 to not less than one defense acquisition

3 program participating in the pilot pro4 gram; and

5 ‘‘(ii) provide for an assessment of the

6 effectiveness of that system; and

7 ‘‘(C) incorporate the results of actions

8 taken pursuant to this paragraph into the de9 velopment of regulations for the implementation

10 of section 45001(b) of the Federal Acquisition

11 Streamlining Act of 1994.

12 ‘‘(5) EFFICIENT CONTRACTING PROCESS.—

13 Take any additional actions that the Secretary con14 siders necessary to waive regulations, not required

15 by statute, that affect the efficiency of the contract16 ing process, including, in the Secretary’s discretion,

17 defining alternative techniques to reduce reliance on

18 military specifications and standards in contracts for

19 the defense acquisition programs participating in the

20 pilot program.

21 ‘‘(6) CONTRACT ADMINISTRATION: PERFORM22 ANCE BASED CONTRACT MANAGEMENT.—For at

23 least one participating defense acquisition program

24 for which a determination is made to make pay25 ments for work in progress under the authority of
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1 section 2307 of title 10, United States Code, define

2 payment milestones on the basis of quantitative

3 measures of results.

4 ‘‘(7) CONTRACTOR PERFORMANCE ASSESS5 MENT.—Collect and evaluate performance informa6 tion on each contract entered into for a defense ac7 quisition program participating in the pilot program,

8 including information on cost, schedule, and tech9 nical performance for each contractor supporting a

10 participating program.

11 ‘‘(d) APPLICABILITY.—(1) Subsection (b) applies

12 with respect to—

13 ‘‘(A) a contract that is awarded or modified

14 during the period described in paragraph (2); and

15 ‘‘(B) a contract that is awarded before the be16 ginning of such period and is to be performed (or

17 may be performed), in whole or in part, during such

18 period.

19 ‘‘(2) The period referred to in paragraph (1) is the

20 period that begins 45 days after the date of the enactment

21 of the Federal Acquisition Streamlining Act of 1994 and

22 ends on September 30, 1998.’’.

23 (b) RULE OF CONSTRUCTION.—Nothing in section

24 840 of the National Defense Authorization Act for Fiscal

25 Year 1994, as added by subsection (a), shall be construed
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1 as authorizing the appropriation or obligation of funds for

2 the programs designated for participation in the defense

3 acquisition pilot program under the authority of sub4 section (a) of such section 840.

5 Subtitle B—Civilian Agency

6 Acquisitions

7 SEC. 45051. PERFORMANCE BASED MANAGEMENT.

8 (a) POLICY AND GOALS FOR PERFORMANCE BASED

9 MANAGEMENT OF PROGRAMS.—

10 (1) IN GENERAL.—Title III of the Federal

11 Property and Administrative Services Act of 1949

12 (41 U.S.C. 301 et seq.), as amended by sections

13 1552 and 1553, is further amended by adding at the

14 end the following new section:

15 ‘‘PERFORMANCE BASED MANAGEMENT: ACQUISITION

16 PROGRAMS

17 ‘‘SEC. 311. (a) CONGRESSIONAL POLICY.—It is the

18 policy of Congress that the head of each executive agency

19 should achieve, on average, 90 percent of the cost and

20 schedule goals established for the research and develop21 ment programs and acquisition programs of the agency

22 without reducing the performance or capabilities of the

23 items being acquired.

24 ‘‘(b) ESTABLISHMENT OF GOALS.—(1) The head of

25 each executive agency shall approve or define the cost, per-
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1 formance, and schedule goals for major acquisition pro2 grams of the agency.

3 ‘‘(2) The chief financial officer of an executive agency

4 shall evaluate the cost goals proposed for each major de5 fense acquisition program of the agency.

6 ‘‘(c) IDENTIFICATION OF NONCOMPLIANT PRO7 GRAMS.—Whenever it is necessary to do so in order to

8 implement the policy set out in subsection (a), the head

9 of an executive agency shall—

10 ‘‘(1) identify and consider whether there is a

11 continuing need for programs that are significantly

12 behind schedule, over budget, or not in compliance

13 with performance or capability requirements taking

14 into consideration—

15 ‘‘(A) the needs of the agency known as of

16 the time of consideration;

17 ‘‘(B) the state of the technology or tech18 nologies relevant to the programs and to the

19 needs of the agency;

20 ‘‘(C) the estimated costs and projected

21 schedules necessary for the completion of such

22 programs; and

23 ‘‘(D) other pertinent information; and

24 ‘‘(2) identify existing and potential research

25 and development programs and acquisition programs
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1 that are suitable alternatives for programs consid2 ered pursuant to paragraph (1).’’.

3 (2) CLERICAL AMENDMENT.—The table of con4 tents in the first section of such Act, as amended by

5 sections 1552 and 1553, is further amended by in6 serting after the item relating to section 310 the fol7 lowing new item:

‘‘Sec. 311. Performance based management: acquisition programs.’’.

8 (b) ANNUAL REPORTING REQUIREMENT.—Section 6

9 of the Office of Federal Procurement Policy Act (41

10 U.S.C. 405), as amended by section 41091, is further

11 amended by adding at the end the following new sub12 section:

13 ‘‘(k) The Administrator shall submit to Congress, on

14 an annual basis, an assessment of the progress made in

15 executive agencies in implementing the policy stated in

16 section 311(a) of the Federal Property and Administrative

17 Services Act of 1949. The Administrator shall use data

18 from existing management systems in making the assess19 ment.’’.

20 (c) ENHANCED SYSTEM OF PERFORMANCE INCEN21 TIVES.—Within one year after the date of the enactment

22 of this Act, the Administrator for Federal Procurement

23 Policy, in consultation with appropriate officials in other

24 departments and agencies of the Federal Government,
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1 shall, to the maximum extent consistent with applicable

2 law—

3 (1) establish policies and procedures for the

4 heads of such departments and agencies to designate

5 acquisition positions and manage employees (includ6 ing the accession, education, training and career de7 velopment of employees) in the designated acquisi8 tion positions;

9 (2) extend to the acquisition workforce of the

10 entire executive branch the acquisition workforce

11 policies contained in chapter 87 of title 10, United

12 States Code, relating to the acquisition workforce of

13 the Department of Defense; and

14 (3) review the incentives and personnel actions

15 available to the heads of department and agencies of

16 the Federal Government for encouraging excellence

17 in the acquisition workforce of the Federal Govern18 ment and provide an enhanced system of incentives

19 for the encouragement of excellence in such

20 workforce which—

21 (A) relates pay to performance (including

22 the extent to which the performance of person23 nel in such workforce contributes to achieving

24 the cost goals, schedule goals, and performance

25 goals established for acquisition programs pur-
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1 suant to section 311(b) of the Federal Property

2 and Administrative Services Act of 1949, as

3 added by subsection (a)); and

4 (B) provides for consideration, in personnel

5 evaluations and promotion decisions, of the ex6 tent to which the performance of personnel in

7 such workforce contributes to achieving such

8 cost goals, schedule goals, and performance

9 goals.

10 (d) RECOMMENDED LEGISLATION.—Not later than

11 one year after the date of the enactment of this Act, the

12 Administrator for Federal Procurement Policy shall sub13 mit to Congress any recommended legislation that the Sec14 retary considers necessary to carry out section 311 of the

15 Federal Property and Administrative Services Act of

16 1949, as added by subsection (a), and otherwise to facili17 tate and enhance management of Federal Government ac18 quisition programs and the acquisition workforce of the

19 Federal Government on the basis of performance.

20 SEC. 45052. RESULTS-ORIENTED ACQUISITION PROCESS.

21 (a) DEVELOPMENT OF PROCESS REQUIRED.—The

22 Administrator for Federal Procurement Policy, in con23 sultation with the heads of appropriate Federal agencies,

24 shall develop a results-oriented acquisition process for im25 plementation by agencies in acquisitions of property and
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1 services by the Federal agencies. The process shall include

2 the identification of quantitative measures and standards

3 for determining the extent to which an acquisition of non4 commercial items by a Federal agency satisfies the needs

5 for which the items are being acquired.

6 (b) INAPPLICABILITY OF PROCESS TO DEPARTMENT

7 OF DEFENSE.—The process developed pursuant to sub8 section (a) may not be applied to the Department of De9 fense.

10 Subtitle C—Miscellaneous

11 SEC. 45091. CONTRACTOR EXCEPTIONAL PERFORMANCE

12 AWARDS.

13 The Office of Federal Procurement Policy Act, as

14 amended by section 44021, is further amended by adding

15 at the end the following:

16 ‘‘CONTRACTOR EXCEPTIONAL PERFORMANCE AWARDS

17 ‘‘SEC. 31. (a) ESTABLISHMENT.—There is hereby es18 tablished an executive branch program to recognize and

19 promote exceptional contract performance by Federal Gov20 ernment contractors.

21 ‘‘(b) SELECTION.—(1) The Administrator shall en22 sure the establishment of criteria for selection of contrac23 tors to receive exceptional performance awards under the

24 program.
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1 ‘‘(2) The head of an executive agency may select one

2 or more agency contractors to receive an exceptional per3 formance award under the program.

4 ‘‘(c) AWARD CEREMONY.—The Vice President, or the

5 head of the executive agency selecting a contractor for an

6 exceptional performance award, shall present the award

7 to the contractor with such ceremony as the Vice Presi8 dent or head of the agency, as the case may be, considers

9 appropriate.’’.

10 SEC. 45092. DEPARTMENT OF DEFENSE ACQUISITION OF IN11 TELLECTUAL PROPERTY RIGHTS.

12 Section 2386 of title 410, United States Code, is

13 amended by striking out paragraphs (3) and (4) and in14 serting in lieu thereof the following:

15 ‘‘(3) Technical data and computer software.

16 ‘‘(4) Releases for past infringement of patents

17 or copyrights or for unauthorized use of technical

18 data or computer software.’’.
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1 TITLE XLVI—STANDARDS OF

2 CONDUCT

3 Subtitle A—Ethics Provisions

4 SEC. 46001. AMENDMENTS TO OFFICE OF FEDERAL PRO5 CUREMENT POLICY ACT.

6 (a) RECUSAL.—Subsection (c) of section 27 of the

7 Office of Federal Procurement Policy Act (41 U.S.C. 423)

8 is amended—

9 (1) in paragraph (1)—

10 (A) in the matter above subparagraph (A),

11 by inserting ‘‘only’’ after ‘‘subsection (b)(1)’’;

12 and

13 (B) in subparagraph (A), by inserting

14 ‘‘(including the modification or extension of a

15 contract)’’ after ‘‘any procurement’’;

16 (2) by striking out paragraphs (2) and (3) and

17 inserting in lieu thereof:

18 ‘‘(2) Whenever the head of a procuring activity ap19 proves a recusal under paragraph (1), a copy of the

20 recusal request and the approval of the request shall be

21 retained by such official for a period (not less than five

22 years) specified in regulations prescribed in accordance

23 with subsection (o).

24 ‘‘(3)(A) Except as provided in subparagraph (B), all

25 recusal requests and approvals of recusal requests pursu-
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1 ant to this subsection shall be made available to the public

2 on request.

3 ‘‘(B) Any part of a recusal request or an approval

4 of a recusal request that is exempt from the disclosure

5 requirements of section 552 of title 5, United States Code,

6 under subsection (b)(1) of such section may be withheld

7 from disclosure to the public otherwise required under

8 subparagraph (A).’’; and

9 (3) in paragraph (4), by striking out ‘‘compet10 ing contractor’’ and inserting in lieu thereof ‘‘per11 son’’.

12 (b) APPLICABILITY OF CERTIFICATION REQUIRE13 MENT.—Subsection (e)(7)(A) of such section is amended

14 by adding at the end the following: ‘‘However, paragraph

15 (1)(B) does not apply with respect to a contract for less

16 than $500,000.’’.

17 (c) RESTRICTIONS RESULTING FROM PROCUREMENT

18 ACTIVITIES OF PROCUREMENT OFFICIALS.—Subsection

19 (f) of such section is amended—

20 (1) by redesignating paragraph (3) as para21 graph (4); and

22 (2) by striking out paragraphs (1) and (2) and

23 inserting in lieu thereof the following:

24 ‘‘(1) No individual who, in the year prior to separa25 tion from service as an officer or employee of the Govern-
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1 ment or an officer of the uniformed services in a covered

2 position, participated personally and substantially in ac3 quisition functions related to a contract, subcontract, or

4 claim of $500,000 or more and—

5 ‘‘(A) engaged in repeated direct contact with

6 the contractor or subcontractor on matters relating

7 to such contract, subcontract, or claim; or

8 ‘‘(B) exercised significant ongoing decisionmak9 ing responsibility with respect to the contractor or

10 subcontractor on matters relating to such contract,

11 subcontract, or claim,

12 shall knowingly accept or continue employment with such

13 contractor or subcontractor for a period of 1 year follow14 ing the individual’s separation from service, except that

15 such individual may accept or continue employment with

16 any division or affiliate of such contractor or subcontrac17 tor that does not produce the same or similar products

18 as the entity involved in the negotiation or performance

19 of the contract or subcontract or the adjustment of the

20 claim.

21 ‘‘(2) No contractor or subcontractor, or any officer,

22 employee, agent, or consultant of such contractor or sub23 contractor shall knowingly offer, provide, or continue any

24 employment for another person, if such contractor, sub25 contractor, officer, employee, agent, or consultant knows
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1 or should know that the acceptance of such employment

2 is or would be in violation of paragraph (1).

3 ‘‘(3) The head of each Federal agency shall designate

4 in writing as a ‘covered position’ under this section each

5 of the following positions in that agency:

6 ‘‘(A) The position of source selection authority,

7 member of a source selection evaluation board, or

8 chief of a financial or technical evaluation team, or

9 any other position, if the officer or employee in that

10 position is likely personally to exercise substantial

11 responsibility for ongoing discretionary functions in

12 the evaluation of proposals or the selection of a

13 source for a contract in excess of $500,000.

14 ‘‘(B) The position of procuring contracting offi15 cer, or any other position, if the officer or employee

16 in that position is likely personally to exercise sub17 stantial responsibility for ongoing discretionary func18 tions in the negotiation of a contract in excess of

19 $500,000 or the negotiation or settlement of a claim

20 in excess of $500,000.

21 ‘‘(C) The position of program executive officer,

22 program manager, or deputy program manager, or

23 any other position, if the officer or employee in that

24 position is likely personally to exercise similar sub25 stantial responsibility for ongoing discretionary func-
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1 tions in the management or administration of a con2 tract in excess of $500,000.

3 ‘‘(D) The position of administrative contracting

4 officer, the position of an officer or employee as5 signed on a permanent basis to a Government Plant

6 Representative’s Office, the position of auditor, a

7 quality assurance position, or any other position, if

8 the officer or employee in that position is likely per9 sonally to exercise substantial responsibility for on10 going discretionary functions in the on-site oversight

11 of a contractor’s operations with respect to a con12 tract in excess of $500,000.

13 ‘‘(E) A position in which the incumbent is likely

14 personally to exercise substantial responsibility for

15 ongoing discretionary functions in operational or de16 velopmental testing activities involving repeated di17 rect contact with a contractor regarding a contract

18 in excess of $500,000.’’.

19 (d) DISCLOSURE OF PROPRIETARY OR SOURCE SE20 LECTION INFORMATION TO UNAUTHORIZED PERSONS.—

21 Subsection (l) of such section is amended—

22 (1) by inserting ‘‘who are likely to be involved

23 in contracts, modifications, or extensions in excess of

24 $25,000’’ in the first sentence after ‘‘its procure25 ment officials’’; and
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1 (2) by striking out ‘‘(e)’’ each place it appears

2 and inserting in each such place ‘‘(f)’’.

3 (e) RULES OF CONSTRUCTION.—Subsection (n) of

4 such section is amended to read as follows:

5 ‘‘(n) RULES OF CONSTRUCTION.—Nothing in this

6 section shall be construed to—

7 ‘‘(1) authorize the withholding of any informa8 tion from the Congress, any committee or sub9 committee thereof, a Federal agency, any board of

10 contract appeals of a Federal agency, the Comptrol11 ler General, or an inspector general of a Federal

12 agency;

13 ‘‘(2) restrict the disclosure of information to, or

14 receipt of information by, any person or class of per15 sons authorized, in accordance with applicable agen16 cy regulations or procedures, to receive that infor17 mation;

18 ‘‘(3) restrict a contractor from disclosing its

19 own proprietary information or the recipient of in20 formation so disclosed by a contractor from receiving

21 such information; or

22 ‘‘(4) restrict the disclosure or receipt of infor23 mation relating to a Federal agency procurement

24 that has been canceled by the agency and that the
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1 contracting officer concerned determines in writing

2 is not likely to be resumed.’’.

3 (f) TERM TO BE DEFINED IN REGULATIONS.—Sub4 section (o)(2)(A) of such section is amended—

5 (1) by inserting ‘‘money, gratuity, or other’’ be6 fore ‘‘thing of value’ ’’; and

7 (2) by inserting before the semicolon ‘‘and such

8 other exceptions as may be adopted on a Govern9 mentwide basis under section 7353 of title 5, United

10 States Code’’.

11 (g) TERMS DEFINED IN LAW.—Subsection (p) of

12 such section is amended—

13 (1) in paragraph (1) by striking out ‘‘clauses

14 (i)–(viii)’’ and inserting in lieu thereof ‘‘clauses (i)

15 through (vii)’’;

16 (2) in paragraph (3)—

17 (A) in subparagraph (A)—

18 (i) by striking out clause (i);

19 (ii) by redesignating clauses (ii), (iii),

20 (iv), (v), (vi), (vii), and (viii) as clauses (i),

21 (ii), (iii), (iv), (v), (vi), and (vii), respec22 tively; and

23 (iii) in clause (i) (as redesignated by

24 subclause (II) of this clause), by striking

25 out ‘‘review and approval of a specifica-
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1 tion’’ and inserting in lieu thereof ‘‘ap2 proval or issuance of a specification, acqui3 sition plan, procurement request, or req4 uisition’’; and

5 (B) in subparagraph (B), by striking out

6 all after ‘‘includes’’ and inserting in lieu thereof

7 the following: ‘‘any individual acting on behalf

8 of, or providing advice to, the agency with re9 spect to any phase of the agency procurement

10 concerned, regardless of whether such individ11 ual is a consultant, expert, or adviser, or an of12 ficer or employee of a contractor or subcontrac13 tor (other than a competing contractor).’’; and

14 (3) in paragraph (6)(A), by inserting

15 ‘‘nonpublic’’ before ‘‘information’’.

16 SEC. 46002. AMENDMENTS TO TITLE 18, UNITED STATES

17 CODE.

18 Section 208(a) of title 18, United States Code, is

19 amended—

20 (1) by inserting ‘‘(1)’’ before ‘‘Except as per21 mitted’’; and

22 (2) by adding at the end the following new

23 paragraph:

24 ‘‘(2) Whoever knowingly aids, abets, counsels, com25 mands, induces, or procures conduct prohibited by this
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1 section shall be subject to the penalties set forth in section

2 216 of this title.’’.

3 SEC. 46003. REPEAL OF SUPERSEDED AND OBSOLETE

4 LAWS.

5 (a) REPEAL.—The following provisions of law are re6 pealed:

7 (1) Sections 2207, 2397, 2397a, 2397b, and

8 2397c of title 10, United States Code.

9 (2) Section 281 of title 18, United States Code.

10 (3) Section 801 of title 37, United States Code.

11 (4) Part A of title VI of the Department of En12 ergy Organization Act (42 U.S.C. 7211 through

13 7218).

14 (b) CLERICAL AMENDMENTS.—

15 (1) TITLE 10.—Part IV of subtitle A of title 10,

16 United States Code, is amended—

17 (A) in the table of sections at the begin18 ning of chapter 131, by striking out the item

19 relating to section 2207; and

20 (B) in the table of sections for chapter

21 141, by striking out the items relating to sec22 tions 2397, 2397a, 2397b, and 2397c.

23 (2) TITLE 18.—The table of sections for chap24 ter 15 of title 18, United States Code, is amended

25 by striking out the item relating to section 281.
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1 (3) TITLE 37.—The table of sections for chap2 ter 15 of title 37, United States Code, is amended

3 by striking out the item relating to section 801.

4 (4) DEPARTMENT OF ENERGY ORGANIZATION

5 ACT.—The table of contents for the Department of

6 Energy Organization Act is amended by striking out

7 the matter relating to part A of title VI.

8 SEC. 46004. IMPLEMENTATION.

9 (a) REGULATIONS.—Not later than 180 days after

10 the date of the enactment of this Act, regulations imple11 menting the amendments made by section 46001 to sec12 tion 27 of the Office of Federal Procurement Policy Act

13 (41 U.S.C. 423), including definitions of the terms used

14 in subsection (f) of such section, shall be issued in accord15 ance with sections 6 and 25 of such Act (41 U.S.C. 405

16 and 521) after coordination with the Director of the Office

17 of Government Ethics.

18 (b) SAVINGS PROVISIONS.—

19 (1) CONTRACTOR CERTIFICATIONS.—No officer,

20 employee, agent, representative, or consultant of a

21 contractor who has signed a certification under sec22 tion 27(e)(1)(B) of the Office of Federal Procure23 ment Policy Act (41 U.S.C. 423(e)(1)(B)) before the

24 effective date of this division shall be required to
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1 sign a new certification as a result of the enactment

2 of this Act.

3 (2) FEDERAL PROCUREMENT OFFICIAL CER4 TIFICATIONS.—No procurement official of a Federal

5 agency who has signed a certification under section

6 27(l) of the Office of Federal Procurement Policy

7 Act (41 U.S.C. 423(l)) before the date of enactment

8 of this Act shall be required to sign a new certifi9 cation as a result of the enactment of this Act.

10 (c) INSPECTOR GENERAL REPORTS.—Not later than

11 May 31 of each of the years 1995 through 1998, the In12 spector General of each Federal agency (or, in the case

13 of a Federal agency that does not have an Inspector Gen14 eral, the head of such agency) shall submit to Congress

15 a report on the compliance by the agency during the pre16 ceding year with the requirement for the head of the agen17 cy to designate covered procurement positions under sec18 tion 27(f)(3) of the Office of Federal Procurement Policy

19 Act (as added by section 46001(c)).

20 Subtitle B—Additional

21 Amendments

22 SEC. 46051. CONTRACTING FUNCTIONS PERFORMED BY

23 FEDERAL PERSONNEL.

24 (a) AMENDMENT OF OFPP ACT.—The Office of Fed25 eral Procurement Policy Act, as amended by section
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1 41092, is further amended by inserting after section 22

2 the following new section 23:

3 ‘‘CONTRACTING FUNCTIONS PERFORMED BY FEDERAL

4 PERSONNEL

5 ‘‘SEC. 23. (a) LIMITATION ON PAYMENT FOR ADVI6 SORY AND ASSISTANCE SERVICES.—(1) No person who is

7 not a person described in subsection (b) may be paid by

8 an agency for services to conduct evaluations or analyses

9 of any aspect of a proposal submitted for an acquisition

10 unless personnel described in subsection (b) with adequate

11 training and capabilities to perform such evaluations and

12 analyses are not readily available within the agency or an13 other Federal agency, as determined in accordance with

14 standards and procedures prescribed in the Federal Acqui15 sition Regulation.

16 ‘‘(2) In the administration of this subsection, the

17 head of each agency shall determine in accordance with

18 the standards and procedures set forth in the Federal Ac19 quisition Regulation whether—

20 ‘‘(A) a sufficient number of personnel described

21 in subsection (b) within the agency or another Fed22 eral agency are readily available to perform a par23 ticular evaluation or analysis for the agency head

24 making the determination; and
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1 ‘‘(B) the readily available personnel have the

2 training and capabilities necessary to perform the

3 evaluation or analysis.

4 ‘‘(b) COVERED PERSONNEL.—For purposes of sub5 section (a), the personnel described in this subsection are

6 as follows:

7 ‘‘(1) An employee, as defined in section 2105 of

8 title 5, United States Code.

9 ‘‘(2) A member of the Armed Forces of the

10 United States.

11 ‘‘(3) A person assigned to a Federal agency

12 pursuant to subchapter VI of chapter 33 of title 5,

13 United States Code.

14 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec15 tion is intended to affect the relationship between the Fed16 eral Government and a federally funded research and de17 velopment center.’’.

18 (b) REQUIREMENT FOR GUIDANCE AND REGULA19 TIONS.—Not later than 90 days after the date of the en20 actment of this Act, the Federal Acquisition Regulatory

21 Council established by section 25(a) of the Office of Fed22 eral Procurement Policy Act (41 U.S.C. 421(a)) shall—

23 (1) review part 37 of title 48 of the Code of

24 Federal Regulations as it relates to the use of advi25 sory and assistance services; and
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1 (2) provide guidance and promulgate regula2 tions regarding—

3 (A) what actions Federal agencies are re4 quired to take to determine whether expertise is

5 readily available within the Federal Government

6 before contracting for advisory and technical

7 services to conduct acquisitions; and

8 (B) the manner in which personnel with

9 expertise may be shared with agencies needing

10 expertise for such acquisitions.

11 SEC. 46052. REPEAL OF EXECUTED REQUIREMENT FOR

12 STUDY AND REPORT.

13 Section 17 of the Office of Federal Procurement Pol14 icy Act (41 U.S.C. 415) is repealed.

15 SEC. 46053. INTERESTS OF MEMBERS OF CONGRESS.

16 Section 3741 of the Revised Statutes (41 U.S.C. 22)

17 is amended to read as follows:

18 ‘‘No member of Congress shall be admitted to any

19 share or part of any contract or agreement made, entered

20 into, or accepted by or on behalf of the United States,

21 or to any benefit to arise thereupon.’’.
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1 SEC. 46054. WAITING PERIOD FOR SIGNIFICANT CHANGES

2 PROPOSED FOR ACQUISITION REGULATIONS.

3 (a) INCREASED PERIOD.—Section 22(a) of the Office

4 of Federal Procurement Policy Act (41 U.S.C. 418b) is

5 amended—

6 (1) by striking out ‘‘30 days’’ and inserting in

7 lieu thereof ‘‘60 days’’; and

8 (2) by adding at the end the following: ‘‘Not9 withstanding the preceding sentence, such a policy,

10 regulation, procedure, or form may take effect ear11 lier than 60 days after the publication date when

12 there are compelling circumstances for the earlier

13 effective date, but in no event may that effective

14 date be less than 30 days after the publication

15 date.’’.

16 (b) TECHNICAL AMENDMENT.—Section 22(d) of such

17 Act is amended by designating the second sentence as

18 paragraph (3).

19 Subtitle C—Whistleblower

20 Protection

21 SEC. 46101. ARMED SERVICES PROCUREMENTS.

22 (a) WHISTLEBLOWER PROTECTIONS FOR CONTRAC23 TOR EMPLOYEES.—Section 2409 of title 10, United

24 States Code, is amended—

25 (1) by striking out subsection (d);
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1 (2) by redesignating subsection (c) as sub2 section (d); and

3 (3) by inserting after subsection (b) the follow4 ing new subsection (c):

5 ‘‘(c) REMEDY AND ENFORCEMENT AUTHORITY.—(1)

6 If the Secretary of Defense determines that a defense con7 tractor has subjected a person to a reprisal prohibited by

8 subsection (a), the Secretary may take one or more of the

9 following actions:

10 ‘‘(A) Order the defense contractor to take af11 firmative action to abate the reprisal.

12 ‘‘(B) Order the defense contractor to reinstate

13 the person to the position that the person held be14 fore the reprisal, together with the compensation (in15 cluding back pay), employment benefits, and other

16 terms and conditions of employment that would

17 apply to the person in that position if the reprisal

18 had not been taken.

19 ‘‘(C) Order the defense contractor to pay the

20 complainant an amount equal to the aggregate

21 amount of all costs and expenses (including attor22 ney’s fees and expert witnesses’ fees) that were rea23 sonably incurred by the complainant for, or in con24 nection with, bringing the complaint regarding the

25 reprisal, as determined by the Secretary.
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1 ‘‘(2) Whenever a person fails to comply with an order

2 issued under paragraph (1), the Secretary shall file an ac3 tion for enforcement of such order in the United States

4 district court for a district in which the reprisal was found

5 to have occurred. In any action brought under this para6 graph, the court may grant appropriate relief, including

7 injunctive relief and compensatory and exemplary dam8 ages.

9 ‘‘(3) Any person adversely affected or aggrieved by

10 an order issued under paragraph (1) may obtain review

11 of the order’s conformance with this subsection, and any

12 regulations issued to carry out this section, in the United

13 States court of appeals for a circuit in which the reprisal

14 is alleged in the order to have occurred. No petition seek15 ing such review may be filed more than 60 days after issu16 ance of the Secretary’s order. Review shall conform to

17 chapter 7 of title 5.’’.

18 (b) RELATED LAW.—

19 (1) REPEAL.—Section 2409a of title 10, United

20 States Code, is repealed.

21 (2) CLERICAL AMENDMENT.—The table of sec22 tions at the beginning of chapter 141 of such title

23 is amended by striking out the item relating to sec24 tion 2409a.
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1 SEC. 46102. GOVERNMENTWIDE WHISTLEBLOWER PROTEC2 TIONS FOR CONTRACTOR EMPLOYEES.

3 The Office of Federal Procurement Policy Act (41

4 U.S.C. 401 et seq.), as amended by section 45091, is fur5 ther amended by adding at the end the following new sec6 tion:

7 ‘‘CONTRACTOR EMPLOYEES: PROTECTION FROM REPRISAL

8 FOR DISCLOSURE OF CERTAIN INFORMATION

9 ‘‘SEC. 32. (a) PROHIBITION OF REPRISALS.—An em10 ployee of an executive agency contractor may not be dis11 charged, demoted, or otherwise discriminated against as

12 a reprisal for disclosing to a Member of Congress or an

13 authorized official of the agency or the Department of

14 Justice information relating to a substantial violation of

15 law related to an agency contract (including the competi16 tion for or negotiation of an agency contract).

17 ‘‘(b) INVESTIGATION OF COMPLAINTS.—A person

18 who believes that the person has been subjected to a re19 prisal prohibited by subsection (a) may submit a complaint

20 to the Inspector General of the executive agency. Unless

21 the Inspector General determines that the complaint is

22 frivolous, the Inspector General shall investigate the com23 plaint and, upon completion of such investigation, submit

24 a report of the findings of the investigation to the person,

25 the contractor concerned, and the head of the agency. In

26 the case of an executive agency that does not have an in-
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1 spector general, the duties of the inspector general under

2 this section shall be performed by an official designated

3 by the agency head.

4 ‘‘(c) REMEDY AND ENFORCEMENT AUTHORITY.—(1)

5 If the head of an executive agency determines that an

6 agency contractor has subjected a person to a reprisal pro7 hibited by subsection (a), the agency head may take one

8 or more of the following actions:

9 ‘‘(A) Order the contractor to take affirmative

10 action to abate the reprisal.

11 ‘‘(B) Order the contractor to reinstate the per12 son to the position that the person held before the

13 reprisal, together with the compensation (including

14 back pay), employment benefits, and other terms

15 and conditions of employment that would apply to

16 the person in that position if the reprisal had not

17 been taken.

18 ‘‘(C) Order the contractor to pay the complain19 ant an amount equal to the aggregate amount of all

20 costs and expenses (including attorney’s fees and ex21 pert witnesses’ fees) that were reasonably incurred

22 by the complainant for, or in connection with, bring23 ing the complaint regarding the reprisal, as deter24 mined by the Secretary.
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1 ‘‘(2) Whenever a person fails to comply with an order

2 issued under paragraph (1), the agency head shall file an

3 action for enforcement of such order in the United States

4 district court for a district in which the reprisal was found

5 to have occurred. In any action brought under this para6 graph, the court may grant appropriate relief, including

7 injunctive relief and compensatory and exemplary dam8 ages.

9 ‘‘(3) Any person adversely affected or aggrieved by

10 an order issued under paragraph (1) may obtain review

11 of the order’s conformance with this subsection, and any

12 regulations issued to carry out this section, in the United

13 States court of appeals for a circuit in which the reprisal

14 is alleged in the order to have occurred. No petition seek15 ing such review may be filed more than 60 days after issu16 ance of the agency head’s order. Review shall conform to

17 chapter 7 of title 5, United States Code.

18 ‘‘(d) CONSTRUCTION.—Nothing in this section may

19 be construed to authorize the discharge of, demotion of,

20 or discrimination against an employee for a disclosure

21 other than a disclosure protected by subsection (a) or to

22 modify or derogate from a right or remedy otherwise avail23 able to the employee.

24 ‘‘(e) COORDINATION WITH OTHER LAW.—This sec25 tion does not apply with respect to the Department of De-
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1 fense. For the corresponding provision of law applicable

2 to the Department of Defense, see section 2409 of title

3 10, United States Code.

4 ‘‘(f) DEFINITION.—In this section, the term ‘Inspec5 tor General’ means an Inspector General appointed under

6 the Inspector General Act of 1978.’’.

7 TITLE XLVII—DEFENSE TRADE

8 AND COOPERATION

9 SEC. 47001. PURCHASES OF FOREIGN GOODS.

10 (a) REPEAL OF EXECUTED REQUIREMENTS.—

11 (1) REQUIREMENT FOR POLICY GUIDANCE.—

12 Title III of the Act of March 3, 1933 (41 U.S.C.

13 10a et seq.), commonly referred to as the ‘‘Buy

14 American Act’’, is amended in section 4(g) (41

15 U.S.C. 10b–1(g)) by striking out paragraphs (2)(C)

16 and (3).

17 (2) REPORTING REQUIREMENT.—Section

18 9096(b) of Public Law 102–396 (106 Stat. 1924; 41

19 U.S.C. 10b–2(b)) is repealed.

20 (b) REPEAL OF REDUNDANT PROVISION.—

21 (1) CONSIDERATION OF NATIONAL SECURITY

22 OBJECTIVES.—Section 2327 of title 10, United

23 States Code, is repealed.

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions at the beginning of chapter 137 of such title
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1 is amended by striking out the item relating to sec2 tion 2327.

3 SEC. 47002. INTERNATIONAL COOPERATIVE AGREEMENTS.

4 (a) TERMINOLOGY REVISIONS.—Section 2531 of title

5 10, United States Code, is amended—

6 (1) in the subsection captions for subsections

7 (a) and (c), by striking out ‘‘MOUS AND RELATED’’

8 and inserting in lieu thereof ‘‘INTERNATIONAL’’;

9 (2) in subsection (a), by striking out ‘‘proposed

10 memorandum of understanding, or any existing or

11 proposed agreement related to a memorandum of

12 understanding,’’ in the matter above paragraph (1)

13 and inserting in lieu thereof ‘‘proposed international

14 agreement, including a memorandum of understand15 ing,’’;

16 (3) by striking out ‘‘memorandum of under17 standing or related agreement’’ each place it appears

18 and inserting in lieu thereof ‘‘international agree19 ment’’;

20 (4) in subsection (b), by striking out ‘‘memo21 randum or related agreement’’ each place it appears

22 in the second sentence and inserting in lieu thereof

23 ‘‘international agreement’’; and

24 (5) in subsection (c)—
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1 (A) by striking out ‘‘A’’ after ‘‘AGREE2 MENTS.—’’ and inserting in lieu thereof ‘‘An’’;

3 and

4 (B) by striking out ‘‘memorandum or

5 agreement’’ and inserting in lieu thereof ‘‘inter6 national agreement’’.

7 (b) EXPANDED SCOPE OF AGREEMENTS.—Section

8 2531(a) of title 10, United States Code, is amended by

9 striking out ‘‘research, development, or production’’ in the

10 matter above paragraph (1) and inserting in lieu thereof

11 ‘‘research, development, production, or logistics support’’.

12 (c) CLERICAL AMENDMENTS.—

13 (1) SECTION HEADING.—The heading of section

14 2531 of title 10, United States Code, is amended to

15 read as follows:

16 ‘‘§ 2531. Defense international agreements’’.

17 (2) TABLE OF SECTIONS.—The item relating to

18 such section in the table of sections at the beginning

19 of subchapter V of chapter 148 of such title is

20 amended to read as follows:

‘‘2531. Defense international agreements.’’.

21 SEC. 47003. ACQUISITION, CROSS-SERVICING AGREEMENTS,

22 AND STANDARDIZATION.

23 (a) LIMITED WAIVER OF RESTRICTIONS ON AC24 CRUED REIMBURSABLE LIABILITIES AND CREDITS FOR

25 CONTINGENCY OPERATIONS.—Section 2347 of title 10,
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•S 2211 PCS

1 United States Code, is amended by adding at the end the

2 following new subsection:

3 ‘‘(c) The Secretary of Defense may waive the restric4 tions in subsections (a) and (b) for a period not to exceed

5 180 days upon a written determination that the armed

6 forces are involved in a contingency operation or that in7 volvement of the armed forces in a contingency operation

8 is imminent. Upon making such a determination, the Sec9 retary shall transmit a copy of the determination to the

10 Committees on Armed Services of the Senate and House

11 of Representatives.’’.

12 (b) COMMUNICATIONS SUPPORT.—Section 2350f of

13 title 10, United States Code, is amended—

14 (1) by redesignating subsection (d) as sub15 section (e); and

16 (2) by inserting after subsection (c) the follow17 ing new subsection:

18 ‘‘(d)(1) Nothing in this section shall be construed to

19 limit the authority of the Secretary of Defense, without

20 a formal bilateral agreement or multilateral arrangement,

21 to furnish communications support and related supplies

22 to, or receive communications support and related supplies

23 from, an allied country in accordance with this subsection.
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•S 2211 PCS

1 ‘‘(2) The Secretary of Defense may furnish or receive

2 such support and supplies on a reciprocal basis for a pe3 riod not to exceed 90 days—

4 ‘‘(A) in order to meet emerging operational re5 quirements of the United States and the allied coun6 try; or

7 ‘‘(B) incident to a joint military exercise with

8 the allied country.

9 ‘‘(3) If interconnection of communication circuits is

10 maintained for joint or multilateral defense purposes

11 under the authority of this subsection, the costs of main12 taining such circuits may be allocated among the various

13 users.’’.

14 TITLE XLVIII—COMMERCIAL

15 ITEMS

16 SEC. 48001. DEFINITIONS.

17 Section 4 of the Office of Federal Procurement Policy

18 Act (41 U.S.C. 403), as amended by section 44001(a), is

19 further amended—

20 (1) by striking out ‘‘Act—’’and inserting in lieu

21 thereof ‘‘Act:’’;

22 (2) by capitalizing the initial letter in the first

23 word of each paragraph;
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1 (3) by striking out the semicolon at the end of

2 each of paragraphs (1), (2), (3), (5), (6), (7), (8),

3 and (9) and inserting in lieu thereof a period;

4 (4) in paragraphs (4) and (10), by striking out

5 ‘‘; and’’ at the end and inserting in lieu thereof a

6 period; and

7 (5) by adding at the end the following new

8 paragraphs:

9 ‘‘(12) The term ‘commercial item’ means—

10 ‘‘(A) property, other than real property,

11 that is of a type customarily used by the gen12 eral public or by nongovernmental entities in

13 the course of normal business operations for

14 purposes other than governmental purposes

15 and—

16 ‘‘(i) has been sold, leased, or licensed

17 to the general public;

18 ‘‘(ii) has not been sold, leased, or li19 censed to the general public but has been

20 offered for sale, lease, or license to the

21 general public; or

22 ‘‘(iii) is not yet available in the com23 mercial marketplace but will be made

24 available for commercial delivery within a

25 reasonable period;
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1 ‘‘(B) any item that, but for—

2 ‘‘(i) modifications of a type customar3 ily available in the commercial market4 place, or

5 ‘‘(ii) minor modifications made to

6 meet Federal Government requirements,

7 would satisfy the criteria in subparagraph (A);

8 ‘‘(C) any combination of items meeting the

9 requirements of subparagraph (A), (B), or (D)

10 that are of a type customarily combined and

11 sold in combination to the general public;

12 ‘‘(D) installation services, maintenance

13 services, repair services, training services, and

14 other services if such services are procured for

15 support of an item referred to in subparagraph

16 (A), (B), or (C) and if the source of such serv17 ices—

18 ‘‘(i) offers such services to the general

19 public and the Federal Government con20 temporaneously and under similar terms

21 and conditions; and

22 ‘‘(ii) offers to use the same work force

23 for providing the Federal Government with

24 such services as the source uses for provid25 ing such services to the general public; and
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1 ‘‘(E) any item, combination of items, or

2 service referred to in subparagraph (A), (B),

3 (C), or (D), regardless of whether the item,

4 combination of items, or service is transferred

5 between or among separate divisions, subsidi6 aries, or affiliates of a contractor.

7 ‘‘(13) The term ‘nondevelopmental item’

8 means—

9 ‘‘(A) any commercial item;

10 ‘‘(B) any previously developed item of sup11 ply that is in use by a department or agency of

12 the United States, a State or local government,

13 or a foreign government with which the United

14 States has a mutual defense cooperation agree15 ment;

16 ‘‘(C) any item of supply described in sub17 paragraph (A) or (B) that requires only minor

18 modification of the type normally available in

19 the commercial marketplace in order to meet

20 the requirements of the procuring department

21 or agency; or

22 ‘‘(D) any item of supply currently being

23 produced that does not meet the requirements

24 of subparagraph (A), (B), or (C) solely because

25 the item—
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1 ‘‘(i) is not yet in use; or

2 ‘‘(ii) is not yet available in the com3 mercial marketplace.

4 ‘‘(14) The term ‘component’ means any item

5 supplied to the Federal Government as part of an

6 end item or of another component.

7 ‘‘(15) The term ‘commercial component’ means

8 any component that is a commercial item.’’.

9 SEC. 48002. PREFERENCE FOR ACQUISITION OF COMMER10 CIAL ITEMS AND NONDEVELOPMENTAL

11 ITEMS.

12 (a) PREFERENCE REQUIRED.—The Office of Federal

13 Procurement Policy Act (41 U.S.C. 401 et seq.), as

14 amended by section 46102, is further amended by adding

15 at the end the following new section:

16 ‘‘PREFERENCE FOR ACQUISITION OF COMMERCIAL ITEMS

17 AND NONDEVELOPMENTAL ITEMS

18 ‘‘SEC. 33. (a) PREFERENCE.—The head of each exec19 utive agency shall ensure that, to the maximum extent

20 practicable—

21 ‘‘(1) requirements of the executive agency with

22 respect to a procurement of supplies are stated in

23 terms of—

24 ‘‘(A) functions to be performed;

25 ‘‘(B) performance required; or

26 ‘‘(C) essential physical characteristics;
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1 ‘‘(2) such requirements are defined so that

2 commercial items or, to the extent that commercial

3 items suitable to meet the agency’s needs are not

4 available, other nondevelopmental items may be pro5 cured to fulfill such requirements; and

6 ‘‘(3) offerors of commercial items and other

7 nondevelopmental items are provided an opportunity

8 to compete in any procurement to fill such require9 ments.

10 ‘‘(b) IMPLEMENTATION.—The head of each executive

11 agency shall ensure that procurement officials in that ex12 ecutive agency, to the maximum extent practicable—

13 ‘‘(1) acquire commercial items or other

14 nondevelopmental items to meet the needs of the ex15 ecutive agency;

16 ‘‘(2) require prime contractors and subcontrac17 tors at all levels under the executive agency con18 tracts to incorporate commercial items or other

19 nondevelopmental items as components of items sup20 plied to the executive agency;

21 ‘‘(3) modify requirements in appropriate cases

22 to ensure that the requirements can be met by com23 mercial items or, to the extent that commercial

24 items suitable to meet the agency’s needs are not

25 available, other nondevelopmental items;
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1 ‘‘(4) state specifications in terms that enable

2 and encourage bidders and offerors to supply com3 mercial items or, to the extent that commercial

4 items suitable to meet the agency’s needs are not

5 available, other nondevelopmental items in response

6 to the executive agency solicitations;

7 ‘‘(5) revise the executive agency’s procurement

8 policies, practices, and procedures not required by

9 law to reduce any impediments in those policies,

10 practices, and procedures to the acquisition of com11 mercial items; and

12 ‘‘(6) require training of appropriate personnel

13 in the acquisition of commercial items.

14 ‘‘(c) PRELIMINARY MARKET RESEARCH.—(1) The

15 head of an executive agency shall conduct market research

16 appropriate to the circumstances—

17 ‘‘(A) before developing new specifications for a

18 procurement by that executive agency; and

19 ‘‘(B) before soliciting bids or proposals for a

20 contract in excess of the simplified acquisition

21 threshold.

22 ‘‘(2) The head of an executive agency shall use the

23 results of market research to determine whether there are

24 commercial items or, to the extent that commercial items
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1 suitable to meet the agency’s needs are not available, other

2 nondevelopmental items available that—

3 ‘‘(A) meet the executive agency’s requirements;

4 ‘‘(B) could be modified to meet the executive

5 agency’s requirements; or

6 ‘‘(C) could meet the executive agency’s require7 ments if those requirements were modified to a rea8 sonable extent.

9 ‘‘(3) In conducting market research, the head of an

10 executive agency should not require potential sources to

11 submit more than the minimum information that is nec12 essary to make the determinations required in paragraph

13 (2).’’.

14 (b) REPEAL OF SUPERSEDED PROVISION.—

15 (1) SEPARATE STATEMENT OF PREFERENCE

16 FOR DEPARTMENT OF DEFENSE.—Section 2325 of

17 title 10, United States Code, is repealed.

18 (2) CLERICAL AMENDMENT.—The table of sec19 tions at the beginning of chapter 137 of such title

20 is amended by striking out the item relating to sec21 tion 2325.

22 SEC. 48003. ACQUISITION OF COMMERCIAL ITEMS.

23 (a) REQUIRED FAR PROVISIONS.—The Office of

24 Federal Procurement Policy Act (41 U.S.C. 401 et seq.),
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1 as amended by section 48002, is further amended by add2 ing at the end the following:

3 ‘‘FEDERAL ACQUISITION REGULATION PROVISIONS RE4 GARDING ACQUISITIONS OF COMMERCIAL ITEMS AND

5 COMPONENTS

6 ‘‘SEC. 34. (a) CONTRACT CLAUSES AND OTHER

7 CLAUSES.—(1)(A) The Federal Acquisition Regulation

8 shall include one or more sets of contract clauses contain9 ing the required terms and conditions for the acquisition

10 of commercial items and commercial components by execu11 tive agencies and by contractors in the performance of

12 contracts of executive agencies.

13 ‘‘(B) The contract clauses referred to in subpara14 graph (A) shall include only—

15 ‘‘(i) those clauses that are required to imple16 ment provisions of law or executive orders applicable

17 to acquisitions of commercial items or commercial

18 components, as the case may be;

19 ‘‘(ii) those contract clauses that are essential

20 for the protection of the Federal Government’s inter21 est in an acquisition of commercial items or commer22 cial components, as the case may be; and

23 ‘‘(iii) those contract clauses that are determined

24 to be consistent with standard commercial practice.

25 ‘‘(2) Subject to paragraph (3), the Federal Acquisi26 tion Regulation shall require that, to the maximum extent
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1 practicable, only the contract clauses referred to in para2 graph (1) be used in a contract, or be required to be used

3 in a subcontract, for the acquisition of commercial items

4 or commercial components by or for an executive agency.

5 ‘‘(3) The Federal Acquisition Regulation shall pro6 vide that a contract or subcontract referred to in para7 graph (2) may contain contract clauses other than the

8 contract clauses referred to in that paragraph only if the

9 other clauses are essential for the protection of the Fed10 eral Government’s interest in—

11 ‘‘(A) that contract or subcontract, as deter12 mined in writing by the contracting officer for such

13 contract; or

14 ‘‘(B) a class of contracts or subcontracts, as de15 termined by the head of an agency concerned, unless

16 the determination of that head of an agency is dis17 approved by the Administrator.

18 ‘‘(4) The Federal Acquisition Regulation shall pro19 vide standards and procedures for waiving the use of con20 tract clauses required pursuant to paragraph (1), other

21 than those required by law, including standards for deter22 mining the cases in which a waiver is appropriate.

23 ‘‘(b) MARKET ACCEPTANCE.—(1) The Federal Ac24 quisition Regulation shall provide that under appropriate
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1 conditions the head of an executive agency may require

2 offerors to demonstrate that the items offered—

3 ‘‘(A) have either—

4 ‘‘(i) achieved commercial market accept5 ance; or

6 ‘‘(ii) been satisfactorily supplied to an ex7 ecutive agency under current or recent con8 tracts for the same or similar requirements; and

9 ‘‘(B) otherwise meet the item description, speci10 fications, or other criteria prescribed in the public

11 notice and solicitation relating to the contract.

12 ‘‘(2) The Federal Acquisition Regulation shall pro13 vide guidance to ensure that the criteria for determining

14 commercial market acceptance include the consideration

15 of—

16 ‘‘(A) the minimum needs of the executive agen17 cy concerned; and

18 ‘‘(B) the entire relevant commercial market, in19 cluding small businesses.

20 ‘‘(c) USE OF FIRM, FIXED PRICE CONTRACTS.—The

21 Federal Acquisition Regulation shall include a require22 ment that firm, fixed price contracts or fixed price with

23 economic price adjustment contracts, be used, to the maxi24 mum extent practicable, for the acquisition of commercial

25 items.
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1 ‘‘(d) CONTRACT QUALITY REQUIREMENTS.—The

2 Federal Acquisition Regulation shall include provisions

3 that—

4 ‘‘(1) permit, to the maximum extent prac5 ticable, a contractor under a commercial items ac6 quisition to use the contractor’s existing quality as7 surance system as a substitute for compliance with

8 a requirement for the Federal Government to inspect

9 or test the commercial items before the contractor’s

10 tender of those items for acceptance by the Federal

11 Government;

12 ‘‘(2) require that, to the maximum extent prac13 ticable, an executive agency accept commercial war14 ranties (including extended warranties) offered by

15 offerors of commercial items to commercial cus16 tomers and use such warranties for the repair and

17 replacement of commercial items; and

18 ‘‘(3) set forth guidance to executive agencies re19 garding the use of past performance of items and

20 sources as a factor in contract award decisions.

21 ‘‘(e) TREATMENT OF TRANSFERS BETWEEN AFFILI22 ATES.—The Federal Acquisition Regulation shall provide

23 for a transfer of commercial items from one division, sub24 sidiary, or affiliate of a contractor to another division, sub25 sidiary, or affiliate of the contractor to be treated as a
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1 subcontract for purposes of section 35 of the Office of

2 Federal Procurement Policy Act and the provisions of law

3 amended by section 48005 of the Federal Acquisition

4 Streamlining Act of 1994.’’.

5 (b) DEFENSE CONTRACT CLAUSES.—

6 (1) TERMINATION OF DOD AUTHORITY.—Sec7 tion 824(b) of the National Defense Authorization

8 Act for Fiscal Years 1990 and 1991 (Public Law

9 101–189; 10 U.S.C. 2325 note) shall cease to be ef10 fective on the date on which the regulations imple11 menting section 34 of the Office of Federal Procure12 ment Policy Act, as added by subsection (a), become

13 effective.

14 (2) SAVINGS PROVISION.—Notwithstanding sec15 tion 34(a) of the Office of Federal Procurement Pol16 icy Act (as added by subsection (a)), contracts of the

17 Department of Defense entered into before the date

18 on which section 824(b) ceases to be effective under

19 paragraph (1), and subcontracts entered into before

20 such date under such contracts, may include clauses

21 developed pursuant to paragraphs (2) and (3) of sec22 tion 824(b) of the National Defense Authorization

23 Act for Fiscal Years 1990 and 1991 (Public Law

24 101–189; 10 U.S.C. 2325 note).
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1 SEC. 48004. CLASS WAIVER OF APPLICABILITY OF CERTAIN

2 LAWS.

3 The Office of Federal Procurement Policy Act (41

4 U.S.C. 401 et seq.), as amended by section 48003, is fur5 ther amended by adding at the end the following:

6 ‘‘CLASS WAIVER OF APPLICABILITY OF CERTAIN LAWS TO

7 ACQUISITIONS OF COMMERCIAL ITEMS

8 ‘‘SEC. 35. (a) IN GENERAL.—The applicability of a

9 provision of law described in subsection (c) that is enacted

10 after the date of the enactment of the Federal Acquisition

11 Streamlining Act of 1994 to contracts for the acquisition

12 of commercial items may be waived on a class basis in

13 the Federal Acquisition Regulation. Such a waiver shall

14 not apply to a provision of law that expressly refers to

15 this section and prohibits the waiver of that provision of

16 law.

17 ‘‘(b) WAIVER OF APPLICABILITY TO SUB18 CONTRACTS.—(1) The applicability of a provision of law

19 described in subsection (c) to subcontracts under a con20 tract for the acquisition of commercial items or a sub21 contract for the acquisition of commercial components

22 may be waived on a class basis in the Federal Acquisition

23 Regulation. Such a waiver shall not apply to a provision

24 of law that expressly refers to this section and prohibits

25 the waiver of that provision of law.
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1 ‘‘(2) Nothing in this subsection shall be construed to

2 authorize the waiver of the applicability of any provision

3 of law with respect to—

4 ‘‘(A) any contract with a prime contractor; or

5 ‘‘(B) any subcontract under a contract with a

6 prime contractor who does not substantially trans7 form the commercial items supplied under the con8 tract.

9 ‘‘(c) COVERED LAW.—A provision of law referred to

10 in subsections (a) and (b) is any provision of law that,

11 as determined by the Federal Acquisition Regulatory

12 Council, sets forth policies, procedures, requirements, or

13 restrictions for the procurement of property or services by

14 the Federal Government.’’.

15 SEC. 48005. INAPPLICABILITY OF CERTAIN PROVISIONS OF

16 LAW.

17 (a) ARMED SERVICES ACQUISITIONS.—

18 (1) PROHIBITION ON CONTINGENT FEES.—Sec19 tion 2306(b) of title 10, United States Code, as

20 amended by section 44022(a), is further amended by

21 inserting before the period at the end of the sentence

22 added by section 44022(a) the following: ‘‘or to a

23 contract for the acquisition of commercial items’’.

24 (2) REQUIREMENT TO IDENTIFY SUPPLIERS

25 AND SOURCES OF SUPPLIES.—Paragraph (2) of sec-
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1 tion 2384(b) of title 10, United States Code, is

2 amended to read as follows:

3 ‘‘(2) The regulations prescribed pursuant to para4 graph (1) do not apply to a contract that requires the de5 livery of supplies that are commercial items, as defined

6 in section 2302 of this title.’’.

7 (3) PROHIBITION AGAINST DOING BUSINESS

8 WITH CERTAIN OFFERORS OR CONTRACTORS.—Sec9 tion 2393(d) of title 10, United States Code, as

10 amended by section 44022(e), is further amended by

11 adding at the end the following: ‘‘The requirement

12 shall not apply in the case of a subcontract for the

13 acquisition of commercial items (as defined in sec14 tion 4(12) of the Office of Federal Procurement Pol15 icy Act (41 U.S.C. 403(12))).’’.

16 (4) PROHIBITION ON LIMITATION OF SUB17 CONTRACTOR DIRECT SALES.—Section 2402 of title

18 10, United States Code, as amended by section

19 44022(b), is further amended by adding at the end

20 the following new subsection:

21 ‘‘(d)(1) An agreement between the contractor in a

22 contract for the acquisition of commercial items and a

23 subcontractor under such contract that restricts sales by

24 such subcontractor directly to persons other than the con25 tractor may not be considered to unreasonably restrict
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1 sales by that subcontractor to the United States in viola2 tion of the provision included in such contract pursuant

3 to subsection (a) if the agreement does not result in the

4 Federal Government being treated differently with regard

5 to the restriction than any other prospective purchaser of

6 such commercial items from that subcontractor.

7 ‘‘(2) In paragraph (1), the term ‘commercial item’

8 has the meaning given such term in section 4(12) of the

9 Office of Federal Procurement Policy Act (41 U.S.C.

10 403(12)).’’.

11 (5) CONTRACTOR INVENTORY ACCOUNTING SYS12 TEMS: STANDARDS.—Section 2410b of title 10,

13 United States Code, is amended—

14 (A) by inserting ‘‘(a) REGULATIONS RE15 QUIRED.—’’ before ‘‘The Secretary of Defense’’;

16 and

17 (B) by adding at the end the following new

18 subsection:

19 ‘‘(b) INAPPLICABILITY TO ACQUISITIONS OF COM20 MERCIAL ITEMS.—The regulations prescribed pursuant to

21 subsection (a) need not apply to a contract for the acquisi22 tion of commercial items (as defined in section 4(12) of

23 the Office of Federal Procurement Policy Act (41 U.S.C.

24 403(12))).’’.
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1 (6) PROHIBITION ON PERSONS CONVICTED OF

2 DEFENSE-CONTRACT RELATED FELONIES.—Para3 graph (4) of section 2408(a) of title 10, United

4 States Code, as added by section 44022(f), is

5 amended—

6 (A) by inserting after subparagraph (A)

7 the following:

8 ‘‘(B) A contract referred to in such subpara9 graph that is for the acquisition of commercial items

10 (as defined in section 4(12) of the Office of Federal

11 Procurement Policy Act (41 U.S.C. 403(12))).’’; and

12 (B) by inserting ‘‘or (B)’’ before the period

13 at the end of subparagraph (C).

14 (b) CIVILIAN AGENCY ACQUISITIONS.—

15 (1) RESTRICTIONS ON SUBCONTRACTOR SALES

16 TO THE UNITED STATES.—Section 303G of the Fed17 eral Property and Administrative Services Act of

18 1949 (41 U.S.C. 253g), as amended by section

19 44023(b), is further amended by adding at the end

20 the following new subsection:

21 ‘‘(d) An agreement between the contractor in a con22 tract for the acquisition of commercial items and a sub23 contractor under such contract that restricts sales by such

24 subcontractor directly to persons other than the contractor

25 may not be considered to unreasonably restrict sales by
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1 that subcontractor to the United States in violation of the

2 provision included in such contract pursuant to subsection

3 (a) if the agreement does not result in the Federal Govern4 ment being treated differently with regard to the restric5 tion than any other prospective purchaser of such commer6 cial items from that subcontractor.’’.

7 (2) PROHIBITION ON CONTINGENT FEES.—Sec8 tion 304(a) of the Federal Property and Administra9 tive Services Act of 1949 (41 U.S.C. 254(a)), as

10 amended by section 44023(a), is further amended by

11 inserting before the period at the end of the sentence

12 added by section 44023(a) the following: ‘‘or to a

13 contract for the acquisition of commercial items’’.

14 (c) ACQUISITIONS GENERALLY.—

15 (1) FEDERAL WATER POLLUTION CONTROL

16 ACT.—Section 508 of the Federal Water Pollution

17 Control Act (33 U.S.C. 1368) is amended by adding

18 at the end the following new subsection:

19 ‘‘(f)(1) No certification by a contractor, and no con20 tract clause, may be required in the case of a contract

21 for the acquisition of commercial items in order to imple22 ment a prohibition or requirement of this section or a pro23 hibition or requirement issued in the implementation of

24 this section.
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1 ‘‘(2) In paragraph (1), the term ‘commercial item’

2 has the meaning given such term in section 4(12) of the

3 Office of Federal Procurement Policy Act (41 U.S.C.

4 403(12)).’’.

5 (2) CONTRACT WORK HOURS AND SAFETY

6 STANDARDS ACT.—The Contract Work Hours and

7 Safety Standards Act (title I of the Work Hours and

8 Safety Act of 1962 (40 U.S.C. 327 et seq.)) is

9 amended by adding at the end the following new sec10 tion:

11 ‘‘SEC. 108. (a) No certification by a contractor, and

12 no contract clause, may be required in the case of a con13 tract for the acquisition of commercial items in order to

14 implement a prohibition or requirement in this title.

15 ‘‘(b) In subsection (a), the term ‘commercial item’

16 has the meaning given such term in section 4(12) of the

17 Office of Federal Procurement Policy Act (41 U.S.C.

18 403(12)).’’.

19 (3) OFFICE OF FEDERAL PROCUREMENT POL20 ICY ACT REQUIREMENT RELATING TO PROCUREMENT

21 INTEGRITY CERTIFICATIONS.—Section 27(e)(7) of

22 the Office of Federal Procurement Policy Act (41

23 U.S.C. 423) is amended by adding at the end the

24 following new subparagraph:
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1 ‘‘(C) This subsection does not apply to a contract for

2 the acquisition of commercial items.’’.

3 (4) CERTAIN PROVISIONS OF THE ANTI-KICK4 BACK ACT OF 1986.—

5 (A) REQUIREMENT FOR CONTRACT

6 CLAUSE.—Section 7 of the Anti-Kickback Act

7 of 1986 (41 U.S.C. 57), as amended by section

8 44024(b), is further amended by inserting be9 fore the period at the end of subsection (d) the

10 following: ‘‘or to a prime contract for the acqui11 sition of commercial items (as defined in section

12 4(12) of such Act (41 U.S.C. 403(12))).’’.

13 (B) INSPECTION AUTHORITY.—Section 8

14 of such Act (41 U.S.C. 58) is amended by add15 ing at the end the following: ‘‘This section does

16 not apply with respect to a prime contract for

17 the acquisition of commercial items (as defined

18 in section 4(12) of the Office of Federal Pro19 curement Policy Act (41 U.S.C. 403(12))).’’.

20 (5) DRUG-FREE WORKPLACE ACT OF 1988.—

21 Section 5152(a)(1) of the Drug-Free Workplace Act

22 of 1988 (subtitle D of title V of Public Law 100–

23 690; 41 U.S.C. 701(a)(1)), as amended by section

24 44024(e), is further amended by inserting after the

25 matter inserted by such section 44024(e) the follow-
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1 ing: ‘‘, other than a contract for the procurement of

2 commercial items (as defined in section 4(12) of

3 such Act (41 U.S.C. 403(12))),’’.

4 (6) CLEAN AIR ACT.—Section 306 of the Clean

5 Air Act (42 U.S.C. 7606) is amended by adding at

6 the end the following new subsection:

7 ‘‘(f)(1) No certification by a contractor, and no con8 tract clause, may be required in the case of a contract

9 for the acquisition of commercial items in order to imple10 ment a prohibition or requirement of this section or a pro11 hibition or requirement issued in the implementation of

12 this section.

13 ‘‘(2) In paragraph (1), the term ‘commercial item’

14 has the meaning given such term in section 4(12) of the

15 Office of Federal Procurement Policy Act (41 U.S.C.

16 403(12)).’’.

17 (7) FLY AMERICAN REQUIREMENTS.—Section

18 1117 of the Federal Aviation Act of 1958 (49

19 U.S.C. App. 1517) is amended by adding at the end

20 the following new subsection:

21 ‘‘(e)(1) No certification by a contractor, and no con22 tract clause, may be required in the case of a contract

23 for the transportation of commercial items in order to im24 plement a requirement in this section.
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1 ‘‘(2) In paragraph (1), the term ‘commercial item’

2 has the meaning given such term in section 4(12) of the

3 Office of Federal Procurement Policy Act (41 U.S.C.

4 403(12)).’’.

5 SEC. 48006. FLEXIBLE DEADLINES FOR SUBMISSION OF OF6 FERS OF COMMERCIAL ITEMS.

7 (a) OFFICE OF FEDERAL PROCUREMENT POLICY

8 ACT AMENDMENT.—Section 18(a) of the Office of Federal

9 Procurement Policy Act (41 U.S.C. 416(a)) is amended

10 by adding at the end the following new paragraph:

11 ‘‘(4) The requirements of paragraph (3)(B) do not

12 apply to contracts for the purchase of commercial items.

13 The Administrator shall prescribe for such contracts ap14 propriate limits on the applicability of a deadline for sub15 mission of bids or proposals that is required by paragraph

16 (1). Such limits shall be incorporated in the Federal Ac17 quisition Regulation. The Federal Acquisition Regulation

18 shall specify a minimum period for submission of a re19 sponse to a solicitation of offers for a contract for the ac20 quisition of commercial items.’’.

21 (b) SAVINGS PROVISION.—The deadlines for submis22 sion of offers that are in effect in accordance with section

23 18(a) of the Office of Federal Procurement Policy Act (41

24 U.S.C. 416(a)) and section 8(e) of the Small Business Act

25 (15 U.S.C. 637(e)) shall continue to apply to contracts
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1 for the purchase of commercial items until the limits pre2 scribed pursuant to paragraph (4) of section 18(a) of the

3 Office of Federal Procurement Policy Act (as added by

4 subsection (a)) are incorporated in the Federal Acquisition

5 Regulation, as required by such paragraph.

6 SEC. 48007. ADVOCATES FOR ACQUISITION OF COMMER7 CIAL AND NONDEVELOPMENTAL ITEMS.

8 (a) RESPONSIBILITIES OF THE ADVOCATE FOR COM9 PETITION.—Section 20(c) of the Office of Federal Pro10 curement Policy Act (41 U.S.C. 418(c)) is amended to

11 read as follows:

12 ‘‘(c) The advocate for competition for each procuring

13 activity shall be responsible for promoting full and open

14 competition, promoting the acquisition of commercial

15 items and other nondevelopmental items, and challenging

16 barriers to such acquisition, including such barriers as un17 necessarily restrictive statements of need, unnecessarily

18 detailed specifications, and unnecessarily burdensome con19 tract clauses.’’.

20 (b) REPEAL OF SUPERSEDED PROVISION.—Section

21 28 of such Act (41 U.S.C. 424) is repealed.

22 SEC. 48008. PROVISIONS NOT AFFECTED.

23 Nothing in this title shall be construed as amending,

24 modifying, or superseding, or as intended to impair or re25 strict authorities or responsibilities under—
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1 (1) section 111 of the Federal Property and

2 Administrative Services Act of 1949 (40 U.S.C.

3 759), popularly referred to as the ‘‘Brooks Auto4 matic Data Processing Act’’;

5 (2) title IX of the Federal Property and Admin6 istrative Services Act of 1949 (40 U.S.C. 541 et

7 seq.), popularly referred to as the ‘‘Brooks Archi8 tect-Engineers Act’’;

9 (3) subsections (a) and (d) of section 8 of the

10 Small Business Act (15 U.S.C. 637); or

11 (4) the Act of June 25, 1938 (41 U.S.C. 46–

12 48c), that was revised and reenacted in the Act of

13 June 23, 1971 (85 Stat. 77), popularly referred to

14 as the ‘‘Javits-Wagner-O’Day Act’’.

15 SEC. 48009. COMPTROLLER GENERAL REVIEW OF FEDERAL

16 GOVERNMENT USE OF MARKET RESEARCH.

17 (a) REPORT REQUIRED.—Not later than 2 years

18 after the date of the enactment of this Act, the Comptrol19 ler General of the United States shall submit to the Con20 gress a report on the use of market research by the Fed21 eral Government in support of the procurement of com22 mercial items and nondevelopmental items.

23 (b) CONTENT OF REPORT.—The report shall include

24 the following:
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1 (1) A review of existing Federal Government

2 market research efforts to gather data concerning

3 commercial and other nondevelopmental items.

4 (2) A review of the feasibility of creating a Gov5 ernment-wide data base for storing, retrieving, and

6 analyzing market data, including use of existing

7 Federal Government resources.

8 (3) Any recommendations for changes in law or

9 regulations that the Comptroller General considers

10 appropriate.

11 TITLE XLIX—MISCELLANEOUS

12 PROVISIONS

13 SEC. 49001. COMPTROLLER GENERAL REVIEW OF THE PRO14 VISION OF LEGAL ADVICE FOR INSPECTORS

15 GENERAL.

16 (a) REVIEW AND REPORT REQUIRED.—Not later

17 than March 1, 1995, the Comptroller General of the Unit18 ed States shall—

19 (1) conduct a review of the independence of the

20 legal services being provided to Inspectors General

21 appointed under the Inspector General Act of 1978;

22 and

23 (2) submit to Congress a report on the results

24 of the review.
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1 (b) MATTERS REQUIRED FOR REPORT.—The report

2 shall include the following matters:

3 (1) With respect to each department or agency

4 of the Federal Government that has an Inspector

5 General appointed in accordance with the Inspector

6 General Act of 1978 whose only or principal source

7 of legal advice is the general counsel or other chief

8 legal officer of the department or agency, an assess9 ment of the extent of the independence of the legal

10 advisors providing advice to the Inspector General.

11 (2) A comparison of the findings under the as12 sessment referred to in paragraph (1) with findings

13 on the same matters with respect to each Inspector

14 General whose source of legal advice is legal counsel

15 accountable solely to the Inspector General.

16 SEC. 49002. COST SAVINGS FOR OFFICIAL TRAVEL.

17 (a) The Administrator of the General Services Ad18 ministration, no later than 120 days after enactment of

19 this section, shall issue guidelines to ensure that agencies

20 promote, encourage and facilitate the use of frequent trav21 eler programs offered by airlines, hotels and car rental

22 vendors by Federal employees who engage in official air

23 travel, for the purpose of realizing to the maximum extent

24 practicable cost savings for official travel.
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1 (b) Any awards granted under such a frequent trav2 eler program accrued through official travel shall be used

3 only for official travel.

4 (c) Within one year of enactment of this section, the

5 Administrator shall report to the Congress on efforts to

6 promote the use of frequent traveler programs by Federal

7 employees.

8 SEC. 49003. PROMPT RESOLUTION OF AUDIT REC9 OMMENDATIONS.

10 Federal agencies shall resolve or take corrective ac11 tion on all Office of Inspector General audit report find12 ings within a maximum of six months after their issuance,

13 or, in the case of audits performed by non-Federal audi14 tors, six months after receipt of the report by the Federal

15 Government.

16 SEC. 49004. UNIFORM SUSPENSION AND DEBARMENT.

17 (a) Within six months after the date of enactment

18 of this Act, regulations shall be issued providing that pro19 visions for the debarment, suspension, or other exclusion

20 of a participant in a procurement activity under the Fed21 eral Acquisition Regulation, or in a nonprocurement activ22 ity under regulations issued pursuant to Executive Order

23 No. 12549, shall have government-wide effect. No agency

24 shall allow a party to participate in any procurement or

25 nonprocurement activity if any agency has debarred, sus-
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1 pended, or otherwise excluded (to the extent specified in

2 the exclusion agreement) that party from participation in

3 a procurement or nonprocurement activity.

4 (b) The Regulations issued pursuant to subsection (a)

5 shall provide that an agency may grant an exception per6 mitting a debarred, suspended, or otherwise excluded

7 party to participate in procurement activities of that agen8 cy to the extent exceptions are authorized under the Fed9 eral Acquisition Regulation, or to participate in

10 nonprocurement activities of that agency to the extent ex11 ceptions are authorized under regulations issued pursuant

12 to Executive Order No. 12549.

13 (c) DEFINITIONS.—For the purposes of this part—

14 (1) ‘‘Procurement activities’’ refers to all acqui15 sition programs and activities of the Federal Gov16 ernment, as defined in the Federal Acquisition Reg17 ulation.

18 (2) ‘‘Nonprocurement activities’’ refers to all

19 programs and activities involving Federal financial

20 and nonfinancial assistance and benefits, as covered

21 by Executive Order No. 12549 and the Office of

22 Management and Budget guidelines implementing

23 that order.

24 (3) ‘‘Agency’’ refers to executive departments

25 and agencies.
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1 TITLE L—EFFECTIVE DATES

2 AND IMPLEMENTATION

3 SEC. 50001. EFFECTIVE DATES.

4 (a) EFFECTIVE DATE OF ACT.—Except as otherwise

5 provided in this division, this division shall take effect on

6 the date of the enactment of this Act.

7 (b) EFFECTIVE DATE OF AMENDMENTS.—Except as

8 otherwise provided in this division, the amendments made

9 by this division shall take effect on the date on which final

10 implementing regulations are prescribed in accordance

11 with section 50002.

12 SEC. 50002. IMPLEMENTING REGULATIONS.

13 (a) PROPOSED CHANGES.—Proposed changes to the

14 Federal Acquisition Regulation and such other proposed

15 regulations (or changes to existing regulations) as may be

16 necessary to implement this division shall be published in

17 the Federal Register not later than 210 days after the

18 date of the enactment of this Act.

19 (b) PUBLIC COMMENT.—The proposed regulations

20 described in subsection (a) shall be made available for

21 public comment for a period of not less than 60 days.

22 (c) FINAL REGULATIONS.—Final regulations shall be

23 published in the Federal Register not later than 330 days

24 after the date of enactment of this Act.
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1 (d) APPLICABILITY.—(1) The amendments made by

2 this division shall apply, in the manner prescribed in such

3 final regulations, to any solicitation that is issued or any

4 unsolicited proposal that is received on or after the date

5 described in paragraph (3).

6 (2) The amendments made by this division shall

7 apply, to the extent and in the manner prescribed in such

8 final regulations, to any matter related to—

9 (A) a contract that is in effect on the date de10 scribed in paragraph (3);

11 (B) an offer under consideration on the date

12 described in paragraph (3); or

13 (C) any other proceeding or action that is ongo14 ing on the date described in paragraph (3).

15 (3) The date referred to in paragraphs (1) and (2)

16 is the date specified in such regulations, which—

17 (A) shall not be earlier than the end of the 30-

18 day period that begins on the date the regulations

19 required by subsection (c) are published; and

20 (B) shall not be later than October 1, 1995.

21 (e) REQUIREMENT FOR CLARITY.—Officers and em22 ployees of the Federal Government who prescribe regula23 tions to implement this division and the amendments

24 made by this division shall make every effort practicable

25 to ensure that the regulations are concise and are easily
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1 understandable by potential offerors as well as by Govern2 ment officials.

3 (f) SAVINGS PROVISION.—Nothing in this division

4 shall be construed to affect the validity of any action taken

5 or any contract entered into prior to the date specified

6 in the regulations pursuant to subsection (d)(3) except to

7 the extent and in the manner prescribed in such regula8 tions.

9 SEC. 50003. EVALUATION BY THE COMPTROLLER GENERAL.

10 (a) EVALUATION RELATING TO ISSUANCE OF REGU11 LATIONS.—Not later than December 1, 1995, the Comp12 troller General shall submit to the committees referred to

13 in subsection (c) a report evaluating compliance with the

14 requirements in section 50002, relating to the issuance of

15 implementing regulations.

16 (b) EVALUATION OF IMPLEMENTATION OF REGULA17 TIONS.—Not later than December 1, 1996, the Comptrol18 ler General shall submit to the committees referred to in

19 subsection (c) a report evaluating the effectiveness of the

20 regulations implementing this division in streamlining the

21 acquisition system and fulfilling the other purposes of this

22 division. The report shall include the Comptroller Gen23 eral’s evaluation of the extent to which the departments

24 and agencies of the Federal Government, in implementing

25 this division and the amendments made by this division,
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1 are reducing acquisition management layers and associ2 ated costs.

3 (c) COMMITTEES DESIGNATED TO RECEIVE THE RE4 PORTS.—The Comptroller General shall submit the re5 ports required by this section to the Committees on Armed

6 Services and on Governmental Affairs of the Senate and

7 the Committees on Small Business on Government Oper8 ations of the House of Representatives.

9 SEC. 50004. DATA COLLECTION THROUGH THE FEDERAL

10 PROCUREMENT DATA SYSTEM.

11 (a) DATA COLLECTION REQUIRED.—The Federal

12 Procurement Data System described in section 6(d)(4)(A)

13 of the Office of Federal Procurement Policy Act (41

14 U.S.C. 405(d)(4)(A)) shall be modified to collect from con15 tracts in excess of the simplified acquisition threshold data

16 pertaining to the following matters:

17 (1) Contract awards made pursuant to competi18 tions conducted pursuant to section 2323 of title 10,

19 United States Code, or section 8(c) of the Small

20 Business Act (15 U.S.C. 637(c)).

21 (2) Awards to business concerns owned and

22 controlled by women.

23 (3) Number of offers received in response to a

24 solicitation.

25 (4) Task order contracts.
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1 (5) Contracts for the acquisition of commercial

2 items.

3 (b) DEFINITION.—In this section, the term ‘‘sim4 plified acquisition threshold’’ has the meaning given such

5 term in section 4 of the Office of Federal Procurement

6 Policy Act (41 U.S.C. 403).

7 TITLE LI—WAIVER OF THE AP8 PLICATION OF THE PREVAIL9 ING WAGE-SETTING REQUIRE10 MENTS TO VOLUNTEERS

11 SEC. 51001. SHORT TITLE.

12 This title may be cited as the ‘‘Community Improve13 ment Volunteer Act of 1994’’.

14 SEC. 51002. PURPOSE.

15 It is the purpose of this title to promote and provide

16 more opportunities for people who wish to volunteer their

17 services in the construction, repair or alteration (including

18 painting and decorating) of public buildings and public

19 works funded, in whole or in part, with Federal financial

20 assistance authorized under certain Federal programs that

21 might not otherwise be possible without the use of volun22 teers, by waiving the application of the otherwise applica23 ble prevailing wage-setting provisions of the Act of March

24 3, 1931 (commonly known as the ‘‘Davis-Bacon Act’’) (40

25 U.S.C. 276a et seq.) to such volunteers.
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1 SEC. 51003. WAIVER.

2 (a) IN GENERAL.—The requirement that certain la3 borers and mechanics be paid in accordance with the

4 wage-setting provisions of the Act of March 3, 1931 (com5 monly known as the ‘‘Davis-Bacon Act’’) (40 U.S.C. 276a

6 et seq.) as set forth in any of the Acts or provisions de7 scribed in subsection (d), and the provisions relating to

8 wages, in any federally assisted or insured contract or sub9 contract for construction, shall not apply to any individ10 ual—

11 (1) who volunteers—

12 (A) to perform a service for a public or

13 private entity for civic, charitable, or humani14 tarian reasons, without promise, expectation, or

15 receipt of compensation for services rendered

16 other than expenses, reasonable benefits, or a

17 nominal fee (as defined in subsection (b)), but

18 solely for the personal purpose or pleasure of

19 the individual; and

20 (B) to provide such services freely and

21 without pressure or coercion, direct or implied,

22 from an employer;

23 (2) whose contribution of service is not for the

24 benefit of any contractor otherwise performing or

25 seeking to perform work on the same project; and
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1 (3) who is not otherwise employed at any time

2 under the federally assisted or insured contract or

3 subcontract involved for construction with respect to

4 the project for which the individual is volunteering.

5 (b) EXPENSES.—Payments of expenses, reasonable

6 benefits, or a nominal fee may be provided to volunteers

7 described in subsection (a) if the Secretary of Labor deter8 mines, after an examination of the total amount of pay9 ments made (relating to expenses, benefits, or fees) in the

10 context of the economic realities of the specific federally

11 assisted or insured project, that such payments are appro12 priate. Subject to such a determination—

13 (1) a payment for an expense may be received

14 by a volunteer for items such as uniform allowances,

15 protective gear and clothing, reimbursement for ap16 proximate out-of-pocket expenses, or for the cost or

17 expense of meals and transportation;

18 (2) a reasonable benefit may include the inclu19 sion of a volunteer in a group insurance plan (such

20 as a liability, health, life, disability, or worker’s com21 pensation plan) or pension plan, or the awarding of

22 a length of service award; and

23 (3) a nominal fee may not be used as a sub24 stitute for compensation and may not be tied to pro25 ductivity.
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1 The decision as to what constitutes a nominal fee for pur2 poses of paragraph (3) shall be made on a case-by-case

3 basis and in the context of the economic realities of the

4 situation involved.

5 (c) ECONOMIC REALITY.—For purposes of subsection

6 (b), in determining whether an expense, benefit, or fee de7 scribed in such subsection may be paid to volunteers in

8 the context of the economic realities of the particular situ9 ation, the Secretary of Labor shall not approve any such

10 expense, benefit, or fee that has the effect of undermining

11 labor standards by creating downward pressure on prevail12 ing wages in the local construction industry.

13 (d) CONTRACTS EXEMPTED.—For purposes of sub14 section (a), the Acts or provisions described in this sub15 section are the following:

16 (1) The Library Services and Construction Act

17 (20 U.S.C. 351 et seq.).

18 (2) The Indian Self-Determination and Edu19 cation Assistance Act (25 U.S.C. 450 et seq.).

20 (3) Section 329 of the Public Health Service

21 Act (42 U.S.C. 254b).

22 (4) Section 330 of the Public Health Service

23 Act (42 U.S.C. 254c).
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1 SEC. 51004. REPORT.

2 Not later than December 31, 1997, the Secretary of

3 Labor shall prepare and submit to the appropriate com4 mittees of Congress a report that—

5 (1) identifies and assesses, to the maximum ex6 tent practicable—

7 (A) the projects for which volunteers were

8 permitted to work under this title; and

9 (B) the number of volunteers permitted to

10 work because of the compliance of entities with

11 the provisions of this title; and

12 (2) contains recommendations with respect to

13 Acts related to the Davis-Bacon Act that could be

14 addressed to permit volunteer work.

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Calendar No. 481

103D CONGRESS

2D SESSION S. 2211

A BILL

To authorize appropriations for fiscal year 1995 for

for other purposes.quisition laws of the Federal Government; andArmed Forces; to revise and streamline the acpersonnel strengths for such fiscal year for theties of the Department of Energy; to prescribefor military construction, and for defense activimilitary activities of the Department of Defense,

JUNE 20 (legislative day, JUNE 7), 1994

Placed on the calendar