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(1) of the originating operational files from search, review, 
publication, or disclosure. 
‘‘(C) The declassification of some of the information 
contained in exempted operational files shall not affect the 
status of the operational file as being exempt from search, 
review, publication, or disclosure. 
‘‘(D) Records from exempted operational files which 
have been disseminated to and referenced in files that are 
not exempted under paragraph (1) and which have been 
returned to exempted operational files for sole retention 
shall be subject to search and review. 
‘‘(5) The provisions of paragraph (1) may not be su-
perseded except by a provision of law which is enacted 
after the date of the enactment of this section, and which 
specifically cites and repeals or modifies its provisions. 
‘‘(6)(A) Except as provided in subparagraph (B), 
whenever any person who has requested agency records 
under section 552 of title 5, United States Code, alleges 
that the National Security Agency has withheld records 
improperly because of failure to comply with any provision 
of this section, judicial review shall be available under the 
terms set forth in section 552(a)(4)(B) of title 5, United 
States Code. 
‘‘(B) Judicial review shall not be available in the 
manner provided for under subparagraph (A) as follows:
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‘‘(i) In any case in which information specifi-
cally authorized under criteria established by an Ex-
ecutive order to be kept secret in the interests of na-
tional defense or foreign relations which is filed 
with, or produced for, the court by the National Se-
curity Agency, such information shall be examined 
ex parte, in camera by the court. 
‘‘(ii) The court shall, to the fullest extent prac-
ticable, determine the issues of fact based on sworn 
written submissions of the parties. 
‘‘(iii) When a complainant alleges that re-
quested records are improperly withheld because of 
improper placement solely in exempted operational 
files, the complainant shall support such allegation 
with a sworn written submission based upon per-
sonal knowledge or otherwise admissible evidence. 
‘‘(iv)(I) When a complainant alleges that re-
quested records were improperly withheld because of 
improper exemption of operational files, the National 
Security Agency shall meet its burden under section 
552(a)(4)(B) of title 5, United States Code, by dem-
onstrating to the court by sworn written submission 
that exempted operational files likely to contain re-
sponsive records currently perform the functions set 
forth in paragraph (2).
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‘‘(II) The court may not order the National Se-
curity Agency to review the content of any exempted 
operational file or files in order to make the dem-
onstration required under subclause (I), unless the 
complainant disputes the National Security Agency’s 
showing with a sworn written submission based on 
personal knowledge or otherwise admissible evidence. 
‘‘(v) In proceedings under clauses (iii) and (iv), 
the parties may not obtain discovery pursuant to 
rules 26 through 36 of the Federal Rules of Civil 
Procedure, except that requests for admission may 
be made pursuant to rules 26 and 36. 
‘‘(vi) If the court finds under this paragraph 
that the National Security Agency has improperly 
withheld requested records because of failure to com-
ply with any provision of this subsection, the court 
shall order the Agency to search and review the ap-
propriate exempted operational file or files for the 
requested records and make such records, or por-
tions thereof, available in accordance with the provi-
sions of section 552 of title 5, United States Code, 
and such order shall be the exclusive remedy for fail-
ure to comply with this subsection. 
‘‘(vii) If at any time following the filing of a 
complaint pursuant to this paragraph the National
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Security Agency agrees to search the appropriate ex-
empted operational file or files for the requested 
records, the court shall dismiss the claim based upon 
such complaint. 
‘‘(viii) Any information filed with, or produced 
for the court pursuant to clauses (i) and (iv) shall 
be coordinated with the Director of Central Intel-
ligence prior to submission to the court. 
‘‘(b) DECENNIAL REVIEW
OF EXEMPTED OPER-
ATIONAL FILES.—(1) Not less than once every 10 years, 
the Director of the National Security Agency and the Di-
rector of Central Intelligence shall review the exemptions 
in force under subsection (a)(1) to determine whether such 
exemptions may be removed from the category of exempt-
ed files or any portion thereof. The Director of Central 
Intelligence must approve any determination to remove 
such exemptions. 
‘‘(2) The review required by paragraph (1) shall in-
clude consideration of the historical value or other public 
interest in the subject matter of the particular category 
of files or portions thereof and the potential for declas-
sifying a significant part of the information contained 
therein. 
‘‘(3) A complainant that alleges that the National Se-
curity Agency has improperly withheld records because of
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failure to comply with this subsection may seek judicial 
review in the district court of the United States of the 
district in which any of the parties reside, or in the Dis-
trict of Columbia. In such a proceeding, the court’s review 
shall be limited to determining the following: 
‘‘(A) Whether the National Security Agency has 
conducted the review required by paragraph (1) be-
fore the expiration of the 10-year period beginning 
on the date of the enactment of this section or be-
fore the expiration of the 10-year period beginning 
on the date of the most recent review. 
‘‘(B) Whether the National Security Agency, in 
fact, considered the criteria set forth in paragraph 
(2) in conducting the required review.’’. 
SEC. 1051. ASSISTANCE FOR STUDY OF FEASIBILITY OF BI-
ENNIAL UNITED STATES INTERNATIONAL AIR 
TRADE SHOW AND FOR INITIAL IMPLEMEN-
TATION. 
(a) ASSISTANCE FOR FEASIBILITY STUDY.—(1) The 
Secretary of Defense shall provide assistance to the non-
profit organization named United States Air and Trade 
Show Inc. for expenses of a study by that organization 
of the feasibility of the establishment and operation of a 
biennial United States international air trade show.
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(2) The Secretary shall provide for the organization 
specified in paragraph (1) to submit to the Secretary a 
report containing the results of the study not later than 
September 30, 2004. The Secretary shall promptly submit 
the report to Congress, together with such comments on 
the report as the Secretary considers appropriate. 
(b) ASSISTANCE FOR IMPLEMENTATION.—If the or-
ganization conducting the study under subsection (a) de-
termines that the establishment and operation of such an 
air show is feasible and should be implemented, the Sec-
retary shall provide assistance to that organization for the 
initial expenses of implementing such an air show. 
(c) AMOUNT OF ASSISTANCE.—The amount of assist-
ance provided by the Secretary under subsections (a) and 
(b)—
(1) may not exceed a total of $1,000,000, to be 
derived from amounts available for operation and 
maintenance for the Air Force for fiscal year 2004; 
and 
(2) may not exceed one-half of the cost of the 
study and may not exceed one-half the cost of such 
initial implementation.
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SEC. 1052. CONTINUATION OF REASONABLE ACCESS TO 
MILITARY INSTALLATIONS FOR PERSONAL 
COMMERCIAL SOLICITATION. 
(a) CONTINUED ACCESS
TO MEMBERS.—Section 
2679 of title 10, United States Code, is amended—
(1) in subsection (a), by inserting ‘‘ACCESS BY 
REPRESENTATIVES
OF
VETERANS’ 
ORGANIZA-
TIONS.—(1)’’ before ‘‘Upon certification’’; 
(2) by redesignating subsections (b) and (c) as 
paragraphs (2) and (3), respectively; 
(3) in paragraph (2), as so redesignated, by 
striking ‘‘subsection (a)’’ and inserting ‘‘paragraph 
(1)’’; 
(4) in paragraph (3), as so redesignated, by 
striking ‘‘section’’ and inserting ‘‘subsection’’; 
(5) by redesignating subsection (d) as sub-
section (c); and 
(6) by inserting before such subsection the fol-
lowing new subsection (b): 
‘‘(b) ACCESS FOR PERSONAL COMMERCIAL SOLICITA-
TION.—An amendment or other revision to a Department 
of Defense directive relating to access to military installa-
tions for the purpose of conducting limited personal com-
mercial solicitation shall not take effect until the end of 
the 90-day period beginning on the date the Secretary of
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Defense submits to Congress notice of the amendment or 
revision and the reasons therefor.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 2679. Access to and use of space and equipment at 
military installations: representatives of 
veterans’ organizations and other per-
sons’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 159 of such title is 
amended to read as follows:
‘‘2679. Access to and use of space and equipment at military installations: rep-
resentatives of veterans’ organizations and other persons.’’.
SEC. 1053. COMMISSION ON NUCLEAR STRATEGY OF THE 
UNITED STATES.
(a) ESTABLISHMENT OF COMMISSION.—
(1) ESTABLISHMENT.—There is hereby estab-
lished a commission to be known as the ‘‘Commis-
sion on Nuclear Strategy of the United States’’ 
(hereinafter this this section referred to as the 
‘‘Commission’’). The Secretary of Defense, in con-
sultation with the Secretary of Energy, shall enter 
into a contract with a federally funded research and 
development center to provide for the organization, 
management, and suport of the Commission.
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(2) COMPOSITION.—(A) The Commission shall 
be composed of 12 members appointed by the Sec-
retary of Defense. In selecting individuals for ap-
pointment to the Commission, the Secretary of De-
fense shall consult with the chairman and ranking 
minority member of the Committee on Armed Serv-
ices of the Senate and the chairman and ranking mi-
nority member of the Committee on Armed Services 
of the House of Representatives. 
(B) Members of the Commission shall be ap-
pointed from among private United States citizens 
with knowledge and expertise in the political, mili-
tary, operational, and technical aspects of nuclear 
strategy. 
(3) CHAIRMAN OF THE COMMISSION.—The Sec-
retary of Defense shall designate one of the mem-
bers of the Commission to serve as chairman of the 
Commission. 
(4) PERIOD
OF
APPOINTMENT; VACANCIES.—
Members shall be appointed for the life of the Com-
mission. Any vacancy in the Commission shall be 
filled in the same manner as the original appoint-
ment.
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(5) SECURITY CLEARANCES.—All members of 
the Commission shall hold appropriate security 
clearances. 
(b) DUTIES OF COMMISSION.—
(1) REVIEW
OF
NUCLEAR
STRATEGY.—The 
Commission shall consider all matters of policy, 
force structure, nuclear stockpile stewardship, esti-
mates of threats and force requirements, and any 
other issue the Commission may consider necessary 
in order to assess and make recommendations about 
current United States nuclear strategy as envisioned 
in the National Security Strategy of the United 
States and the Nuclear Posture Review, as well as 
possible alternative future strategies. 
(2) ASSESSMENT
OF
RANGE
OF
NUCLEAR 
STRATEGIES.—The Commission shall assess possible 
future nuclear strategies for the United States that 
could be pursued over the next 20 years. 
(3) RELATIONS WITH RUSSIA.—The Commis-
sion shall give special attention to assessing how the 
United States goal of strengthening partnership with 
Russia may be advanced or adversely affected by 
each of the possible nuclear strategies considered. 
The Commission shall also assess how relations with 
China, and the overall global security environment,
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may be affected by each of those possible nuclear 
strategies. 
(4) OTHER MATTERS TO BE INCLUDED.—For 
each of the possible nuclear strategies considered, 
the Commission shall include in its report under 
subsection (c)(1), at a minimum, the following: 
(A) A discussion of the policy defining the 
deterrence and military-political objectives of 
the United States against potential adversaries. 
(B) A discussion of the military require-
ments for United States forces, the force struc-
ture and capabilities necessary to meet those re-
quirements, and how they relate to the achieve-
ment of the objectives identified under subpara-
graph (A). 
(C) Appropriate quantitative and quali-
tative analysis, including force-on-force ex-
change modeling, to calculate the effectiveness 
of the strategy under various scenario condi-
tions, including scenarios of strategic and tac-
tical surprise. 
(D) An assessment of the role of missile 
defenses in the strategy, the dependence of the 
strategy on missile defense effectiveness, and
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the effect of missile defenses on the threat envi-
ronment. 
(E) An assessment of the implications of 
the proliferation of missiles and weapons of 
mass destruction, the proliferation of under-
ground facilities and mobile launch platforms, 
and China’s modernization of strategic forces. 
(F) An assessment of the implications of 
asymmetries between the United States and 
Russia, including doctrine, nonstrategic nuclear 
weapons, and active and passive defenses. 
(G) An assessment of strategies or options 
for dealing with nuclear capable nations that 
may provide nuclear weapons to terrorist or 
transnational groups. 
(H) An assessment of the contribution of 
non-proliferation strategies and programs to the 
overall security of the United States and how 
those strategies and programs may affect the 
overall requirements of future nuclear strategy. 
(I) An assessment of the effect of the 
strategy on the nuclear programs of emerging 
nuclear weapons states, including North Korea, 
Iran, Pakistan, and India.
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(5) 
RECOMMENDATIONS.—The 
Commission 
shall include in its report recommendations for any 
continuities or changes in nuclear strategy it believes 
should be taken to enhance the national security of 
the United States. 
(6) COOPERATION
FROM
GOVERNMENT
OFFI-
CIALS.—(A) In carrying out its duties, the Commis-
sion shall receive the full and timely cooperation of 
the Secretary of Defense, the Secretary of Energy, 
and any other United States Government official in 
providing the Commission with analyses, briefings, 
and other information necessary for the fulfillment 
of its responsibilities. 
(B) The Secretary of Energy and the Secretary 
of Defense shall each designate at least one officer 
or employee of the Department of Energy and the 
Department of Defense, respectively, to serve as a li-
aison officer between the department and the Com-
mission. The Director of Central Intelligence may 
designate at least one officer or employee of the 
Central Intelligence Agency to serve as a liaison offi-
cer between that agency and the Commission. 
(c) REPORTS.—
(1) COMMISSION
REPORT.—The Commission 
shall submit to the Secretary of Defense and to the
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Committees on Armed Services of the Senate and 
House of Representatives a report on the Commis-
sion’s findings and conclusions not later than 18 
months after the date of its first meeting. 
(2) SECRETARY OF DEFENSE RESPONSE.—Not 
later than one year after the date on which the Com-
mission submits its report under paragraph (1), the 
Secretary of Defense shall submit to Congress a re-
port—
(A) commenting on the Commission’s find-
ings and conclusions; and 
(B) explaining what actions, if any, the 
Secretary intends to take to implement the rec-
ommendations of the Commission and, with re-
spect to each such recommendation, the Sec-
retary’s reasons for implementing, or not imple-
menting, the recommendation. 
(d) HEARINGS AND PROCEDURES.—
(1) HEARINGS.—The Commission may, for the 
purpose of carrying out the purposes of this section, 
hold hearings and take testimony. 
(2) PROCEDURES.—The federally funded re-
search and development center referred to in sub-
section (a)(1) shall be responsible for establishing 
appropriate procedures for the Commission.
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(3) DETAIL
OF
GOVERNMENT
EMPLOYEES.—
Upon request of the chairman of the Commission, 
the head of any Federal department or agency may 
detail, on a nonreimbursable basis, any personnel of 
that department or agency to the Commission to as-
sist it in carrying out its duties. 
(e) FUNDING.—Funds for activities of the Commis-
sion shall be provided from amounts appropriated for the 
Department of Defense. 
(f) TERMINATION OF COMMISSION.—The Commis-
sion shall terminate 60 days after the date of the submis-
sion of its report under subsection (c)(1). 
(g) IMPLEMENTATION.—
(1) FFRDC CONTRACT.—The Secretary of De-
fense shall enter into the contract required under 
subsection (a)(1) not later than 60 days after the 
date of the enactment of this Act. 
(2) FIRST
MEETING.—The Commission shall 
convene its first meeting not later than 60 days 
after the date as of which all members of the Com-
mission have been appointed.
SEC. 1054. EXTENSION OF COUNTERPROLIFERATION PRO-
GRAM REVIEW COMMITTEE. 
Section 1605(f) of the National Defense Authoriza-
tion Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is
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amended by striking ‘‘September 30, 2004’’ and inserting 
‘‘September 30, 2008’’. 
SEC. 1055. ASSIGNMENT OF MEMBERS TO ASSIST BUREAU 
OF BORDER SECURITY AND BUREAU OF CITI-
ZENSHIP AND IMMIGRATION SERVICES OF 
THE DEPARTMENT OF HOMELAND SECURITY. 
(a) ASSIGNMENT AUTHORITY OF SECRETARY OF DE-
FENSE.—Chapter 18 of title 10, United States Code, is 
amended by inserting after section 374 the following new 
section: 
‘‘§ 374a. Assignment of members to assist border pa-
trol and control 
‘‘(a) ASSIGNMENT AUTHORIZED.—Upon submission 
of a request consistent with subsection (b), the Secretary 
of Defense may assign members of the Army, Navy, Air 
Force, and Marine Corps to assist—
‘‘(1) the Bureau of Border Security of the De-
partment of Homeland Security in preventing the 
entry of terrorists, drug traffickers, and illegal aliens 
into the United States; and 
‘‘(2) the United States Customs Service of the 
Department of Homeland Security in the inspection 
of cargo, vehicles, and aircraft at points of entry 
into the United States to prevent the entry of weap-
ons of mass destruction, components of weapons of
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mass destruction, prohibited narcotics or drugs, or 
other terrorist or drug trafficking items. 
‘‘(b) REQUEST FOR ASSIGNMENT.—The assignment 
of members under subsection (a) may occur only if—
‘‘(1) the assignment is at the request of the 
Secretary of Homeland Security; and 
‘‘(2) the request is accompanied by a certifi-
cation by the Secretary of Homeland Security that 
the assignment of members pursuant to the request 
is necessary to respond to a threat to national secu-
rity posed by the entry into the United States of ter-
rorists, drug traffickers, or illegal aliens. 
‘‘(c) TRAINING
PROGRAM
REQUIRED.—The Sec-
retary of Homeland Security and the Secretary of De-
fense, shall establish a training program to ensure that 
members receive general instruction regarding issues af-
fecting law enforcement in the border areas in which the 
members may perform duties under an assignment under 
subsection (a). A member may not be deployed at a border 
location pursuant to an assignment under subsection (a) 
until the member has successfully completed the training 
program. 
‘‘(d) CONDITIONS OF USE.—(1) Whenever a member 
who is assigned under subsection (a) to assist the Bureau 
of Border Security or the United States Customs Service
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is performing duties at a border location pursuant to the 
assignment, a civilian law enforcement officer from the 
agency concerned shall accompany the member. 
‘‘(2) Nothing in this section shall be construed to—
‘‘(A) authorize a member assigned under sub-
section (a) to conduct a search, seizure, or other 
similar law enforcement activity or to make an ar-
rest; and 
‘‘(B) supersede section 1385 of title 18 (popu-
larly known as the ‘Posse Comitatus Act’). 
‘‘(e) ESTABLISHMENT
OF ONGOING JOINT TASK 
FORCES.—(1) The Secretary of Homeland Security may 
establish ongoing joint task forces if the Secretary of 
Homeland Security determines that the joint task force, 
and the assignment of members to the joint task force, 
is necessary to respond to a threat to national security 
posed by the entry into the United States of terrorists, 
drug traffickers, or illegal aliens. 
‘‘(2) If established, the joint task force shall fully 
comply with the standards as set forth in this section. 
‘‘(f) NOTIFICATION REQUIREMENTS.—The Secretary 
of Homeland Security shall provide to the Governor of the 
State in which members are to be deployed pursuant to 
an assignment under subsection (a) and to local govern-
ments in the deployment area notification of the deploy-
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ment of the members to assist the Department of Home-
land Security under this section and the types of tasks 
to be performed by the members. 
‘‘(g) REIMBURSEMENT REQUIREMENT.—Section 377 
of this title shall apply in the case of members assigned 
under subsection (a). 
‘‘(h) TERMINATION OF AUTHORITY.—No assignment 
may be made or continued under subsection (a) after Sep-
tember 30, 2005.’’. 
(b) COMMENCEMENT OF TRAINING PROGRAM.—The 
training program required by subsection (b) of section 
374a of title 10, United States Code, shall be established 
as soon as practicable after the date of the enactment of 
this Act. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 374 the following new 
item:
‘‘374a. Assignment of members to assist border patrol and control.’’.
SEC. 1056. REPORT CONCERNING STRATEGIC NUCLEAR 
WARHEADS DISMANTLED PURSUANT TO THE 
TREATY BETWEEN THE UNITED STATES OF 
AMERICA AND THE RUSSIAN FEDERATION ON 
STRATEGIC OFFENSIVE REDUCTIONS. 
Not later than 60 days after the exchange of instru-
ments of ratification of the Treaty Between the United
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States of America and the Russian Federation on Stra-
tegic Offensive Reductions or 60 days after the date of 
the enactment of this Act, whichever occurs last, and on 
February 15 of each subsequent year, the President shall 
submit to Congress a report concerning any strategic nu-
clear warheads dismantled within the boundaries of the 
treaty during the preceding calendar year and any such 
warheads to be dismantled in that calendar year, pursuant 
to such treaty. During the one-year period beginning on 
the date of the exchange of instruments of ratification of 
such treaty, any such report shall not include information 
concerning any dismantling of warheads during the pre-
ceding calendar year. 
SEC. 1057. PILOT PROGRAM TO IMPROVE USE OF AIR 
FORCE AND AIR NATIONAL GUARD MODULAR 
AIRBORNE 
FIRE-FIGHTING 
SYSTEMS 
TO 
FIGHT WILDFIRES. 
(a) TEMPORARY EXCEPTION TO ECONOMY ACT RE-
QUIREMENT.—Notwithstanding section 1535(a)(4) of title 
31, United States Code, the Secretary of the Interior and 
the Secretary of Agriculture may procure the services of 
military aircraft (and personnel of the Armed Forces to 
operate and maintain such aircraft) of Air Force and Air 
National Guard Modular Airborne Fire-Fighting Systems 
units in California, Colorado, North Carolina, and Wyo-
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ming to fight a wildfire without first comparing the cost 
and convenience of procuring such services from such 
source to the cost of procuring the same services from a 
commercial enterprise. 
(b) DURATION OF PILOT PROGRAM.—The authority 
provided by subsection (a) expires December 31, 2005. 
(c) REPORTING REQUIREMENT.—Not later than Feb-
ruary 1, 2005, the Secretary of the Interior and the Sec-
retary of Agriculture shall submit to Congress a report 
describing—
(1) the use of the exception provided in sub-
section (a) to expedite the procurement of the serv-
ices of Air Force and Air National Guard Modular 
Airborne Fire-Fighting Systems units to fight 
wildfires; and 
(2) the ability of these units in responding to 
wildfires in a timely and effective manner. 
SEC. 1058. STUDY ON FEASIBILITY OF USE OF SMALL BUSI-
NESSES, MINORITY-OWNED BUSINESSES, AND 
WOMEN-OWNED BUSINESSES IN EFFORTS TO 
REBUILD IRAQ. 
The Secretary of Defense shall commission a study 
of the feasibility of using small businesses, minority-owned 
businesses, and women-owned businesses in the United 
States’ efforts to rebuild Iraq. The study shall include the
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development of outreach procedures to provide, to small 
businesses, minority-owned businesses, and women-owned 
businesses, information on participating in rebuilding 
Iraq. 
SEC. 1059. SENSE OF CONGRESS REGARDING CONTINU-
ATION OF MISSION AND FUNCTIONS OF ARMY 
PEACEKEEPING INSTITUTE. 
It is the sense of Congress that the Secretary of De-
fense should maintain the functions and missions of the 
Army Peacekeeping Institute at the Army War College in 
Carlisle, Pennsylvania, or within a joint entity of the De-
partment of Defense, such as the National Defense Uni-
versity or the Joint Forces Command, to ensure that 
members of the Armed Forces continue to study the stra-
tegic challenges and uses of peacekeeping missions and to 
prepare the Armed Forces for conducting such missions. 
SEC. 1060. ASSESSMENT OF EFFECTS OF SPECIFIED STATU-
TORY LIMITATIONS ON THE GRANTING OF 
SECURITY CLEARANCES. 
Not later than 60 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Rep-
resentatives an assessment of the effects of the provisions 
of section 986 of title 10, United States Code (relating
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to limitations on security clearances), on the granting (or 
renewal) of security clearances for Department of Defense 
personnel and defense contractor personnel. The assess-
ment shall review the affects of the disqualification factors 
specified in subsection (c) of that section and shall include 
such recommendations for legislation or administrative 
steps as the Secretary considers necessary. 
TITLE XI—DEPARTMENT OF 
DEFENSE CIVILIAN PERSONNEL 
Subtitle A—Department of Defense 
Civilian Personnel Generally 
SEC. 1101. MODIFICATION OF THE OVERTIME PAY CAP. 
Section 5542(a)(2) of title 5, United States Code, is 
amended—
(1) by inserting ‘‘the greater of’’ before ‘‘one 
and one-half’’; and 
(2) by inserting ‘‘or the hourly rate of basic pay 
of the employee’’ after ‘‘law)’’ the second place it ap-
pears. 
SEC. 1102. MILITARY LEAVE FOR MOBILIZED FEDERAL CI-
VILIAN EMPLOYEES. 
(a) IN GENERAL.—Subsection (b) of section 6323 of 
title 5, United States Code, is amended—
(1) in paragraph (2)—
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(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
at the end of clause (ii), as so redesignated, by 
inserting ‘‘or’’; and 
(B) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 
(2) by inserting the following before the text be-
ginning with ‘‘is entitled’’: 
‘‘(B) performs full-time military service as a re-
sult of a call or order to active duty in support of 
a contingency operation as defined in section 
101(a)(13) of title 10;’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to military service performed on 
or after the date of the enactment of this Act.
SEC. 1103. COMMON OCCUPATIONAL AND HEALTH STAND-
ARDS FOR DIFFERENTIAL PAYMENTS AS A 
CONSEQUENCE OF EXPOSURE TO ASBESTOS. 
(a) 
PREVAILING
RATE
SYSTEMS.—Section 
5343(c)(4) of title 5, United States Code, is amended by 
inserting before the semicolon at the end the following: 
‘‘, and for any hardship or hazard related to asbestos, such 
differentials shall be determined by applying occupational 
safety and health standards consistent with the permis-
sible exposure limit promulgated by the Secretary of
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Labor under the Occupational Safety and Health Act of 
1970’’. 
(b) GENERAL
SCHEDULE
PAY
RATES.—Section 
5545(d) of such title is amended by inserting before the 
period at the end of the first sentence the following: ‘‘, 
and for any hardship or hazard related to asbestos, such 
differentials shall be determined by applying occupational 
safety and health standards consistent with the permis-
sible exposure limit promulgated by the Secretary of 
Labor under the Occupational Safety and Health Act of 
1970’’. 
(c) APPLICABILITY.—Subject to any vested constitu-
tional property rights, any administrative or judicial deter-
mination after the date of enactment of this Act con-
cerning backpay for a differential established under sec-
tions 5343(c)(4) or 5545(d) of such title shall be based 
on occupational safety and health standards described in 
the amendments made by subsections (a) and (b). 
SEC. 1104. INCREASE IN ANNUAL STUDENT LOAN REPAY-
MENT AUTHORITY. 
Section 5379(b)(2)(A) of title 5, United States Code, 
is 
amended 
by 
striking 
‘‘$6,000’’ 
and 
inserting 
‘‘$10,000’’.
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SEC. 1105. AUTHORIZATION FOR CABINET SECRETARIES, 
SECRETARIES OF MILITARY DEPARTMENTS, 
AND HEADS OF EXECUTIVE AGENCIES TO BE 
PAID ON A BIWEEKLY BASIS. 
(a) AUTHORIZATION.—Section 5504 of title 5, United 
States Code, is amended—
(1) by redesignating subsection (c) as sub-
section (d); 
(2) by striking the last sentence of both sub-
section (a) and subsection (b); and 
(3) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) For the purposes of this section: 
‘‘(1) The term ‘employee’ means—
‘‘(A) an employee in or under an Executive 
agency; 
‘‘(B) an employee in or under the Office of 
the Architect of the Capitol, the Botanic Gar-
den, and the Library of Congress, for whom a 
basic administrative workweek is established 
under section 6101(a)(5) of this title; and 
‘‘(C) an individual employed by the govern-
ment of the District of Columbia. 
‘‘(2) The term ‘employee’ does not include—
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‘‘(A) an employee on the Isthmus of Pan-
ama in the service of the Panama Canal Com-
mission; or 
‘‘(B) an employee or individual excluded 
from the definition of employee in section 
5541(2) of this title other than an employee or 
individual excluded by clauses (ii), (iii), and 
(xiv) through (xvii) of such section. 
‘‘(3) Notwithstanding paragraph (2), an indi-
vidual who otherwise would be excluded from the 
definition of employee shall be deemed to be an em-
ployee for purposes of this section if the individual’s 
employing agency so elects, under guidelines in regu-
lations promulgated by the Office of Personnel Man-
agement under subsection (d)(2).’’. 
(b) GUIDELINES.—Subsection (d) of section 5504 of 
such title, as redesignated by subsection (a), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The Office of Personnel Management shall pro-
vide guidelines by regulation for exemptions to be made 
by the heads of agencies under subsection (c)(3). Such 
guidelines shall provide for such exemptions only under 
exceptional circumstances.’’.
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SEC. 1106. SENIOR EXECUTIVE SERVICE AND PERFORM-
ANCE. 
(a) SENIOR EXECUTIVE PAY.—Chapter 53 of title 5, 
United States Code, is amended—
(1) in section 5304—
(A) in subsection (g)(2)—
(i) in subparagraph (A) by striking 
‘‘subparagraphs (A)–(E)’’ and inserting 
‘‘subparagraphs (A)–(D)’’; and 
(ii) in subparagraph (B) by striking 
‘‘subsection (h)(1)(F)’’ and inserting ‘‘sub-
section (h)(1)(D)’’; 
(B) in subsection (h)(1)—
(i) by striking subparagraphs (B) and 
(C); 
(ii) by redesignating subparagraphs 
(D), (E), and (F) as subparagraphs (B), 
(C), and (D), respectively; 
(iii) in clause (ii) by striking ‘‘or’’ at 
the end; 
(iv) in clause (iii) by striking the pe-
riod and inserting a semicolon; and 
(v) by adding at the end the following 
new clauses: 
‘‘(iv) a Senior Executive Service position under 
section 3132;
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‘‘(v) a position in the Federal Bureau of Inves-
tigation and Drug Enforcement Administration Sen-
ior Executive Service under section 3151; or 
‘‘(vi) a position in a system equivalent to the 
system in clause (iv), as determined by the Presi-
dent’s Pay Agent designated under subsection (d).’’; 
and 
(C) in subsection (h)(2)(B)—
(i) in clause (i)—
(I) by striking ‘‘subparagraphs 
(A) through (E)’’ and inserting ‘‘sub-
paragraphs (A) through (C)’’; and 
(II) by striking ‘‘clause (i) or 
(ii)’’ and inserting ‘‘clause (i), (ii), 
(iii), (iv), (v), or (vii)’’; and 
(ii) in clause (ii)—
(I) 
by 
striking 
‘‘paragraph 
(1)(F)’’ and inserting ‘‘paragraph 
(1)(D)’’; and 
(II) by striking ‘‘clause (i) or 
(ii)’’ and inserting ‘‘clause (i), (ii), 
(iii), (iv), (v), or (vi)’’; 
(2) by amending section 5382 to read as fol-
lows:
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‘‘§ 5382. Establishment of rates of pay for the Senior 
Executive Service 
‘‘(a) Subject to regulations prescribed by the Office 
of Personnel Management, there shall be established a 
range of rates of basic pay for the Senior Executive Serv-
ice, and each senior executive shall be paid at one of the 
rates within the range, based on individual performance, 
contribution to the agency’s performance, or both, as de-
termined under a rigorous performance management sys-
tem. The lowest rate of the range shall not be less than 
the minimum rate of basic pay payable under section 
5376, and the highest rate, for any position under this 
system or an equivalent system as determined by the 
President’s Pay Agent designated under section 5304(d), 
shall not exceed the rate for level III of the Executive 
Schedule. The payment of the rates shall not be subject 
to the pay limitation of section 5306(e) or 5373. 
‘‘(b) Notwithstanding the provisions of subsection 
(a), the applicable maximum shall be level II of the Execu-
tive Schedule for any agency that is certified under section 
5307 as having a performance appraisal system which, as 
designed and applied, makes meaningful distinctions 
based on relative performance. 
‘‘(c) No employee may suffer a reduction in pay by 
reason of transfer from an agency with an applicable max-
imum rate of pay prescribed under subsection (b) to an
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agency with an applicable maximum rate of pay prescribed 
under subsection (a).’’; and 
(3) in section 5383—
(A) in subsection (a) by striking ‘‘which of 
the rates established under section 5382 of this 
title’’ and inserting ‘‘which of the rates within 
a range established under section 5382’’; and 
(B) in subsection (c) by striking ‘‘for any 
pay adjustment under section 5382 of this 
title’’ and inserting ‘‘as provided in regulations 
prescribed by the Office under section 5385’’. 
(b) POST-EMPLOYMENT RESTRICTIONS.—(1) Clause 
(ii) of section 207(c)(2)(A) of title 18, United States Code 
is amended to read as follows: 
‘‘(ii) employed in a position which is not 
referred to in clause (i) and for which that per-
son is paid at a rate of basic pay which is equal 
to or greater than 96 percent of the rate of 
basic pay for level II of the Executive Schedule, 
or, for a period of 2 years following the enact-
ment of the National Defense Authorization Act 
for Fiscal Year 2004, a person who, on the day 
prior to the enactment of that Act, was em-
ployed in a position which is not referred to in 
clause (i) and for which the rate of basic pay,
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exclusive of any locality-based pay adjustment 
under section 5304 or section 5304a of title 5, 
was equal to or greater than the rate of basic 
pay payable for level 5 of the Senior Executive 
Service on the day prior to the enactment of 
that Act,’’. 
(2) Subchapter I of chapter 73 of title 5, United 
States Code, is amended by inserting at the end the fol-
lowing new section: 
‘‘§ 7302. Post-employment notification 
‘‘(a) Not later than the effective date of the amend-
ments made by section 1106 of the National Defense Au-
thorization Act for Fiscal Year 2004, or 180 days after 
the date of enactment of that Act, whichever is later, the 
Office of Personnel Management shall, in consultation 
with the Attorney General and the Office of Government 
Ethics, promulgate regulations requiring that each Execu-
tive branch agency notify any employee of that agency who 
is subject to the provisions of section 207(c)(1) of title 
18, 
as 
a 
result 
of 
the 
amendment 
to 
section 
207(c)(2)(A)(ii) of that title by that Act. 
‘‘(b) The regulations shall require that notice be given 
before, or as part of, the action that affects the employee’s 
coverage under section 207(c)(1) of title 18, by virtue of 
the provisions of section 207(c)(2)(A)(ii) of that title, and
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again when employment or service in the covered position 
is terminated.’’. 
(3) The table of sections for chapter 73 of title 5, 
United States Code, is amended by adding after the item 
relating to section 7301 the following:
‘‘7302. Post-employment notification.’’.
(c) EFFECTIVE DATE AND APPLICABILITY.—(1) The 
amendments made by this section shall take effect on the 
first day of the first pay period beginning on or after the 
first January 1 following the date of enactment of this 
section. 
(2) The amendments made by subsection (a) may not 
result in a reduction in the rate of basic pay for any senior 
executive during the first year after the effective date of 
those amendments. 
(3) For the purposes of paragraph (2), the rate of 
basic pay for a senior executive shall be deemed to be the 
rate of basic pay set for the senior executive under section 
5383 of title 5, United States Code, plus applicable local-
ity pay paid to that senior executive, as of the date of 
enactment of this Act.
SEC. 1107. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE 
SYSTEMS IN DEMONSTRATION PROJECTS. 
A pay-for-performance system may not be initiated 
under chapter 47 of title 5, United States Code, after the
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date of enactment of this Act, unless it incorporates the 
following elements: 
(1) adherence to merit principles set forth in 
section 2301 of such title; 
(2) a fair, credible, and transparent employee 
performance appraisal system; 
(3) a link between elements of the pay-for-per-
formance system, the employee performance ap-
praisal system, and the agency’s strategic plan; 
(4) a means for ensuring employee involvement 
in the design and implementation of the system; 
(5) adequate training and retraining for super-
visors, managers, and employees in the implementa-
tion and operation of the pay-for-performance sys-
tem; 
(6) a process for ensuring ongoing performance 
feedback and dialogue between supervisors, man-
agers, and employees throughout the appraisal pe-
riod, and setting timetables for review; 
(7) effective safeguards to ensure that the man-
agement of the system is fair and equitable and 
based on employee performance; and 
(8) a means for ensuring that adequate agency 
resources are allocated for the design, implementa-
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tion, and administration of the pay-for-performance 
system. 
SEC. 1108. FEDERAL FLEXIBLE BENEFITS PLAN ADMINIS-
TRATIVE COSTS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, an agency or other employing entity of the 
Government which provides or plans to provide a flexible 
spending account option for its employees shall not impose 
any fee with respect to any of its employees in order to 
defray the administrative costs associated therewith. 
(b) OFFSET OF ADMINISTRATIVE COSTS.—Each such 
agency or employing entity that offers a flexible spending 
account option under a program established or adminis-
tered by the Office of Personnel Management shall peri-
odically forward to such Office, or entity designated by 
such Office, the amount necessary to offset the adminis-
trative costs of such program which are attributable to 
such agency. 
(c) REPORTS.—(1) The Office shall submit a report 
to the Committee on Government Reform of the House 
of Representatives and the Committee on Governmental 
Affairs of the Senate no later than March 31, 2004, speci-
fying the administrative costs associated with the Govern-
mentwide program (referred to in subsection (b)) for fiscal
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year 2003, as well as the projected administrative costs 
of such program for each of the 5 fiscal years thereafter. 
(2) At the end of each of the first 3 calendar years 
in which an agency or other employing entity offers a flexi-
ble spending account option under this section, such agen-
cy or entity shall submit a report to the Office of Manage-
ment and Budget showing the amount of its employment 
tax savings in such year which are attributable to such 
option, net of administrative fees paid under section (b). 
SEC. 1109. CLARIFICATION OF HATCH ACT. 
No Federal employee or individual who, before the 
date of the enactment of this Act, was employed in the 
Office of the Department of Defense Inspector General 
and transferred to a Special Court sponsored by the 
United Nations pursuant to the authority described in sec-
tion 3582(a) of title 5, United States Code, shall be sub-
ject to enforcement of the provisions of section 7326 of 
such title, except that this section shall not apply in the 
event that such employee or individual subsequently be-
comes reemployed in the civil service. 
SEC. 1110. EMPLOYEE SURVEYS. 
(a) IN GENERAL.—Each agency shall conduct an an-
nual survey of its employees (including survey questions 
unique to the agency and questions prescribed under sub-
section (b)) to assess—
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(1) leadership and management practices that 
contribute to agency performance; and 
(2) employee satisfaction with—
(A) leadership policies and practices; 
(B) work environment; 
(C) rewards and recognition for profes-
sional accomplishment and personal contribu-
tions to achieving organizational mission; 
(D) opportunity for professional develop-
ment and growth; and 
(E) opportunity to contribute to achieving 
organizational mission. 
(b) REGULATIONS.—The Office of Personnel Man-
agement shall issue regulations prescribing survey ques-
tions that should appear on all agency surveys under sub-
section (a) in order to allow a comparison across agencies. 
(c) AVAILABILITY OF RESULTS.—The results of the 
agency surveys under subsection (a) shall be made avail-
able to the public and posted on the website of the agency 
involved, unless the head of such agency determines that 
doing so would jeopardize or negatively impact national 
security. 
(d) AGENCY DEFINED.—For purposes of this section, 
the term ‘‘agency’’ means an Executive agency (as defined 
by section 105 of title 5, United States Code).
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SEC. 1111. HUMAN CAPITAL PERFORMANCE FUND. 
(a) IN GENERAL.—Subpart D of part III of title 5, 
United States Code, is amended by inserting after chapter 
53 the following:
‘‘CHAPTER 54—HUMAN CAPITAL 
PERFORMANCE FUND
‘‘Sec. 
‘‘5401. Purpose. 
‘‘5402. Definitions. 
‘‘5403. Human Capital Performance Fund. 
‘‘5404. Human capital performance payments. 
‘‘5405. Regulations. 
‘‘5406. Agency plan. 
‘‘5407. Nature of payment. 
‘‘5408. Appropriations.
‘‘§ 5401. Purpose 
‘‘The purpose of this chapter is to promote, through 
the creation of a Human Capital Performance Fund, 
greater performance in the Federal Government. Monies 
from the Fund will be used to reward agencies’ highest 
performing and most valuable employees. This Fund will 
offer Federal managers a new tool to recognize employee 
performance that is critical to the achievement of agency 
missions. 
‘‘§ 5402. Definitions 
‘‘For the purpose of this chapter—
‘‘(1) ‘agency’ means an Executive agency under 
section 105, but does not include the General Ac-
counting Office; 
‘‘(2) ‘employee’ includes—
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‘‘(A) an individual paid under a statutory 
pay system defined in section 5302(1); 
‘‘(B) a prevailing rate employee, as defined 
in section 5342(a)(2); and 
‘‘(C) a category of employees included by 
the Office of Personnel Management following 
the review of an agency plan under section 
5403(b)(1); 
but does not include—
‘‘(i) an individual paid at an annual rate of 
basic pay for a level of the Executive Schedule, 
under subchapter II of chapter 53, or at a rate 
provided for one of those levels under another 
provision of law; 
‘‘(ii) a member of the Senior Executive 
Service paid under subchapter VIII of chapter 
53, or an equivalent system; 
‘‘(iii) an administrative law judge paid 
under section 5372; 
‘‘(iv) a contract appeals board member 
paid under section 5372a; 
‘‘(v) an administrative appeals judge paid 
under section 5372b; and 
‘‘(vi) an individual in a position which is 
excepted from the competitive service because of
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its confidential, policy-determining, policy-mak-
ing, or policy-advocating character; and 
‘‘(3) ‘Office’ means the Office of Personnel 
Management. 
‘‘§ 5403. Human Capital Performance Fund 
‘‘(a) There is hereby established the Human Capital 
Performance Fund, to be administered by the Office for 
the purpose of this chapter. 
‘‘(b)(1)(A) An agency shall submit a plan as de-
scribed in section 5406 to be eligible for consideration by 
the Office for an allocation under this section. An alloca-
tion shall be made only upon approval by the Office of 
an agency’s plan. 
‘‘(B)(i) After the reduction for training required 
under section 5408, ninety percent of the remaining 
amount appropriated to the Fund may be allocated by the 
Office to the agencies. Of the amount to be allocated, an 
agency’s pro rata distribution may not exceed its pro rata 
share of Executive branch payroll. 
‘‘(ii) If the Office does not allocate an agency’s full 
pro rata share, the undistributed amount remaining from 
that share will become available for distribution to other 
agencies, as provided in subparagraph (C). 
‘‘(C)(i) After the reduction for training under section 
5408, ten percent of the remaining amount appropriated
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to the Fund, as well as the amount of the pro rata share 
not distributed because of an agency’s failure to submit 
a satisfactory plan, shall be allocated among agencies with 
exceptionally high-quality plans. 
‘‘(ii) An agency with an exceptionally high-quality 
plan is eligible to receive an additional distribution in addi-
tion to its full pro rata distribution. 
‘‘(2) Each agency is required to provide to the Office 
such payroll information as the Office specifies necessary 
to determine the Executive branch payroll. 
‘‘§ 5404. Human capital performance payments 
‘‘(a)(1) Notwithstanding any other provision of law, 
the Office may authorize an agency to provide human cap-
ital performance payments to individual employees based 
on exceptional performance contributing to the achieve-
ment of the agency mission. 
‘‘(2) The number of employees in an agency receiving 
payments from the Fund, in any year, shall not be more 
than the number equal to 15 percent of the agency’s aver-
age total civilian full- and part-time permanent employ-
ment for the previous fiscal year. 
‘‘(b)(1) A human capital performance payment pro-
vided to an individual employee from the Fund, in any 
year, shall not exceed 10 percent of the employee’s rate 
of basic pay.
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‘‘(2) The aggregate of an employee’s rate of basic 
pay, adjusted by any locality-based comparability pay-
ments, and human capital performance pay, as defined by 
regulation, may not exceed the rate of basic pay for Execu-
tive Level IV in any year. 
‘‘(3) Any human capital performance payment pro-
vided to an employee from the Fund is in addition to any 
annual pay adjustment (under section 5303 or any similar 
provision of law) and any locality-based comparability pay-
ment that may apply. 
‘‘(c) No monies from the Human Capital Perform-
ance Fund may be used to pay for a new position, for 
other performance-related payments, or for recruitment or 
retention incentives paid under sections 5753 and 5754. 
‘‘(d)(1) An agency may finance initial human capital 
performance payments using monies from the Human 
Capital Performance Fund, as available. 
‘‘(2) In subsequent years, continuation of previously 
awarded human capital performance payments shall be fi-
nanced from other agency funds available for salaries and 
expenses. 
‘‘§ 5405. Regulations 
‘‘The Office shall issue such regulations as it deter-
mines to be necessary for the administration of this chap-
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ter, including the administration of the Fund. The Office’s 
regulations shall include criteria governing—
‘‘(1) an agency plan under section 5406; 
‘‘(2) the allocation of monies from the Fund to 
agencies; 
‘‘(3) the nature, extent, duration, and adjust-
ment of, and approval processes for, payments to in-
dividual employees under this chapter; 
‘‘(4) the relationship to this chapter of agency 
performance management systems; 
‘‘(5) training of supervisors, managers, and 
other individuals involved in the process of making 
performance distinctions; and 
‘‘(6) the circumstances under which funds may 
be allocated by the Office to an agency in amounts 
below or in excess of the agency’s pro rata share. 
‘‘§ 5406. Agency plan 
‘‘(a) To be eligible for consideration by the Office for 
an allocation under this section, an agency shall—
‘‘(1) develop a plan that incorporates the fol-
lowing elements: 
‘‘(A) adherence to merit principles set 
forth in section 2301; 
‘‘(B) a fair, credible, and transparent em-
ployee performance appraisal system;
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‘‘(C) a link between the pay-for-perform-
ance system, the employee performance ap-
praisal system, and the agency’s strategic plan; 
‘‘(D) a means for ensuring employee in-
volvement in the design and implementation of 
the system; 
‘‘(E) adequate training and retraining for 
supervisors, managers, and employees in the 
implementation and operation of the pay-for-
performance system; 
‘‘(F) a process for ensuring ongoing per-
formance feedback and dialogue between super-
visors, managers, and employees throughout the 
appraisal period, and setting timetables for re-
view; 
‘‘(G) effective safeguards to ensure that 
the management of the system is fair and equi-
table and based on employee performance; and 
‘‘(H) a means for ensuring that adequate 
agency resources are allocated for the design, 
implementation, and administration of the pay-
for-performance system; 
‘‘(2) upon approval, receive an allocation of 
funding from the Office;
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‘‘(3) make payments to individual employees in 
accordance with the agency’s approved plan; and 
‘‘(4) provide such information to the Office re-
garding payments made and use of funds received 
under this section as the Office may specify. 
‘‘(b) The Office, in consultation with the Chief 
Human Capital Officers Council, shall review and approve 
an agency’s plan before the agency is eligible to receive 
an allocation of funding from the Office. 
‘‘(c) The Chief Human Capital Officers Council shall 
include in its annual report to Congress under section 
1303(d) of the Homeland Security Act of 2002 an evalua-
tion of the formulation and implementation of agency per-
formance management systems. 
‘‘§ 5407. Nature of payment 
‘‘Any payment to an employee under this section shall 
be part of the employee’s basic pay for the purposes of 
subchapter III of chapter 83, and chapters 84 and 87, 
and for such other purposes (other than chapter 75) as 
the Office shall determine by regulation. 
‘‘§ 5408. Appropriations 
‘‘There 
is 
authorized 
to 
be 
appropriated 
$500,000,000 for fiscal year 2004, and, for each subse-
quent fiscal year, such sums as may be necessary to carry 
out the provisions of this chapter. In the first year of im-
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plementation, up to 10 percent of the amount appro-
priated to the Fund shall be available to participating 
agencies to train supervisors, managers, and other individ-
uals involved in the appraisal process on using perform-
ance management systems to make meaningful distinc-
tions in employee performance and on the use of the 
Fund.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
for part III of title 5, United States Code, is amended 
by inserting after the item relating to chapter 53 the fol-
lowing:
‘‘54. Human Capital Performance Fund ...........................................
5401’’.
Subtitle B—Department of Defense 
National 
Security 
Personnel 
System 
SEC. 1121. DEPARTMENT OF DEFENSE NATIONAL SECURITY 
PERSONNEL SYSTEM. 
(a) IN GENERAL.—(1) Subpart I of part III of title 
5, United States Code, is amended by adding at the end 
the following new chapter: 
‘‘CHAPTER 99—DEPARTMENT OF DEFENSE 
NATIONAL SECURITY PERSONNEL SYSTEM
‘‘Sec. 
‘‘9901. Definitions. 
‘‘9902. Establishment of human resources management system. 
‘‘9903. Attracting highly qualified experts. 
‘‘9904. Employment of older Americans.
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‘‘9905. Special pay and benefits for certain employees outside the United 
States.
‘‘§ 9901. Definitions 
‘‘For purposes of this chapter—
‘‘(1) the term ‘Director’ means the Director of 
the Office of Personnel Management; and 
‘‘(2) the term ‘Secretary’ means the Secretary 
of Defense. 
‘‘§ 9902. Establishment of human resources manage-
ment system 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this part, the Secretary may, in regulations pre-
scribed jointly with the Director, establish, and from time 
to time adjust, a human resources management system for 
some or all of the organizational or functional units of the 
Department of Defense. If the Secretary certifies that 
issuance or adjustment of a regulation, or the inclusion, 
exclusion, or modification of a particular provision therein, 
is essential to the national security, the Secretary may, 
subject to the decision of the President, waive the require-
ment in the preceding sentence that the regulation or ad-
justment be issued jointly with the Director. 
‘‘(b) SYSTEM REQUIREMENTS.—Any system estab-
lished under subsection (a) shall—
‘‘(1) be flexible; 
‘‘(2) be contemporary;
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‘‘(3) not waive, modify, or otherwise affect—
‘‘(A) the public employment principles of 
merit and fitness set forth in section 2301, in-
cluding the principles of hiring based on merit, 
fair treatment without regard to political affili-
ation or other nonmerit considerations, equal 
pay for equal work, and protection of employees 
against reprisal for whistleblowing; 
‘‘(B) any provision of section 2302, relat-
ing to prohibited personnel practices; 
‘‘(C)(i) any provision of law referred to in 
section 2302(b)(1), (8), and (9); or 
‘‘(ii) any provision of law implementing 
any provision of law referred to in section 
2302(b)(1), (8), and (9) by—
‘‘(I) providing for equal employment 
opportunity through affirmative action; or 
‘‘(II) providing any right or remedy 
available to any employee or applicant for 
employment in the public service; 
‘‘(D) any other provision of this part (as 
described in subsection (c)); or 
‘‘(E) any rule or regulation prescribed 
under any provision of law referred to in this 
paragraph;
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‘‘(4) ensure that employees may organize, bar-
gain collectively as provided for in this chapter, and 
participate through labor organizations of their own 
choosing in decisions which affect them, subject to 
the provisions of this chapter and any exclusion from 
coverage or limitation on negotiability established 
pursuant to law; 
‘‘(5) not be limited by any specific law or au-
thority under this title that is waivable under this 
chapter or by any provision of this chapter or any 
rule or regulation prescribed under this title that is 
waivable under this chapter, except as specifically 
provided for in this section; and 
‘‘(6) include a performance management system 
that incorporates the following elements: 
‘‘(A) adherence to merit principles set 
forth in section 2301; 
‘‘(B) a fair, credible, and transparent em-
ployee performance appraisal system; 
‘‘(C) a link between the performance man-
agement system and the agency’s strategic 
plan; 
‘‘(D) a means for ensuring employee in-
volvement in the design and implementation of 
the system;
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‘‘(E) adequate training and retraining for 
supervisors, managers, and employees in the 
implementation and operation of the perform-
ance management system; 
‘‘(F) a process for ensuring ongoing per-
formance feedback and dialogue between super-
visors, managers, and employees throughout the 
appraisal period, and setting timetables for re-
view; 
‘‘(G) effective safeguards to ensure that 
the management of the system is fair and equi-
table and based on employee performance; and 
‘‘(H) a means for ensuring that adequate 
agency resources are allocated for the design, 
implementation, and administration of the per-
formance management system. 
‘‘(c) OTHER NONWAIVABLE PROVISIONS.—The other 
provisions of this part referred to in subsection (b)(3)(D) 
are (to the extent not otherwise specified in this title)—
‘‘(1) subparts A, B, E, G, and H of this part; 
and 
‘‘(2) chapters 41, 45, 47, 55 (except subchapter 
V thereof), 57, 59, 72, 73, and 79, and this chapter. 
‘‘(d) LIMITATIONS RELATING TO PAY.—(1) Nothing 
in this section shall constitute authority to modify the pay
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of any employee who serves in an Executive Schedule posi-
tion under subchapter II of chapter 53 of this title. 
‘‘(2) Except as provided for in paragraph (1), the 
total amount in a calendar year of allowances, differen-
tials, bonuses, awards, or other similar cash payments 
paid under this title to any employee who is paid under 
section 5376 or 5383 of this title or under title 10 or 
under other comparable pay authority established for pay-
ment of Department of Defense senior executive or equiva-
lent employees may not exceed the total annual compensa-
tion payable to the Vice President under section 104 of 
title 3. 
‘‘(3) To the maximum extent practicable, the rates 
of compensation for civilian employees at the Department 
of Defense shall be adjusted at the same rate, and in the 
same proportion, as are rates of compensation for mem-
bers of the uniformed services. 
‘‘(e) PROVISIONS TO ENSURE COLLABORATION WITH 
EMPLOYEE REPRESENTATIVES.—(1) In order to ensure 
that the authority of this section is exercised in collabora-
tion with, and in a manner that ensures the participation 
of, employee representatives in the planning, development, 
and implementation of any human resources management 
system or adjustments to such system under this section,
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the Secretary and the Director shall provide for the fol-
lowing: 
‘‘(A) The Secretary and the Director shall, with 
respect to any proposed system or adjustment—
‘‘(i) provide to the employee representa-
tives representing any employees who might be 
affected a written description of the proposed 
system or adjustment (including the reasons 
why it is considered necessary); 
‘‘(ii) give such representatives at least 30 
calendar 
days 
(unless 
extraordinary 
cir-
cumstances require earlier action) to review and 
make recommendations with respect to the pro-
posal; and 
‘‘(iii) give any recommendations received 
from such representatives under clause (ii) full 
and fair consideration in deciding whether or 
how to proceed with the proposal. 
‘‘(B) Following receipt of recommendations, if 
any, from such employee representatives with re-
spect to a proposal described in subparagraph (A), 
the Secretary and the Director shall accept such 
modifications to the proposal in response to the rec-
ommendations as they determine advisable and shall,
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with respect to any parts of the proposal as to which 
they have not accepted the recommendations—
‘‘(i) notify Congress of those parts of the 
proposal, together with the recommendations of 
the employee representatives; 
‘‘(ii) meet and confer for not less than 30 
calendar days with the employee representa-
tives, in order to attempt to reach agreement on 
whether or how to proceed with those parts of 
the proposal; and 
‘‘(iii) at the Secretary’s option, or if re-
quested by a majority of the employee rep-
resentatives participating, use the services of 
the Federal Mediation and Conciliation Service 
during such meet and confer period to facilitate 
the process of attempting to reach agreement. 
‘‘(C)(i) Any part of the proposal as to which the 
representatives do not make a recommendation, or 
as to which the recommendations are accepted by 
the Secretary and the Director, may be implemented 
immediately. 
‘‘(ii) With respect to any parts of the proposal 
as to which recommendations have been made but 
not accepted by the Secretary and the Director, at 
any time after 30 calendar days have elapsed since
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the initiation of the congressional notification, con-
sultation, and mediation procedures set forth in sub-
paragraph (B), if the Secretary, in his discretion, 
determines that further consultation and mediation 
is unlikely to produce agreement, the Secretary may 
implement any or all of such parts (including any 
modifications made in response to the recommenda-
tions as the Secretary determines advisable), but 
only after 30 days have elapsed after notifying Con-
gress of the decision to implement the part or parts 
involved (as so modified, if applicable). 
‘‘(iii) The Secretary shall notify Congress 
promptly of the implementation of any part of the 
proposal and shall furnish with such notice an expla-
nation of the proposal, any changes made to the pro-
posal as a result of recommendations from the em-
ployee representatives, and of the reasons why im-
plementation is appropriate under this subpara-
graph. 
‘‘(D) If a proposal described in subparagraph 
(A) is implemented, the Secretary and the Director 
shall—
‘‘(i) develop a method for the employee 
representatives to participate in any further
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planning or development which might become 
necessary; and 
‘‘(ii) give the employee representatives ade-
quate access to information to make that par-
ticipation productive. 
‘‘(2) The Secretary may, at the Secretary’s discre-
tion, engage in any and all collaboration activities de-
scribed in this subsection at an organizational level above 
the level of exclusive recognition. 
‘‘(3) In the case of any employees who are not within 
a unit with respect to which a labor organization is ac-
corded exclusive recognition, the Secretary and the Direc-
tor may develop procedures for representation by any ap-
propriate organization which represents a substantial per-
centage of those employees or, if none, in such other man-
ner as may be appropriate, consistent with the purposes 
of this subsection. 
‘‘(f) PROVISIONS
REGARDING
NATIONAL
LEVEL 
BARGAINING.—(1) Any human resources management 
system implemented or modified under this chapter may 
include employees of the Department of Defense from any 
bargaining unit with respect to which a labor organization 
has been accorded exclusive recognition under chapter 71 
of this title.
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‘‘(2) For any bargaining unit so included under para-
graph (1), the Secretary may bargain at an organizational 
level above the level of exclusive recognition. Any such bar-
gaining shall—
‘‘(A) be binding on all subordinate bargaining 
units at the level of recognition and their exclusive 
representatives, and the Department of Defense and 
its subcomponents, without regard to levels of rec-
ognition; 
‘‘(B) supersede all other collective bargaining 
agreements, including collective bargaining agree-
ments negotiated with an exclusive representative at 
the level of recognition, except as otherwise deter-
mined by the Secretary; 
‘‘(C) not be subject to further negotiations for 
any purpose, including bargaining at the level of rec-
ognition, except as provided for by the Secretary; 
and 
‘‘(D) except as otherwise specified in this chap-
ter, not be subject to review or to statutory third-
party dispute resolution procedures outside the De-
partment of Defense. 
‘‘(3) The National Guard Bureau and the Army and 
Air Force National Guard are excluded from coverage 
under this subsection.
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‘‘(4) Any bargaining completed pursuant to this sub-
section with a labor organization not otherwise having na-
tional consultation rights with the Department of Defense 
or its subcomponents shall not create any obligation on 
the Department of Defense or its subcomponents to confer 
national consultation rights on such a labor organization. 
‘‘(g) PROVISIONS RELATING TO APPELLATE PROCE-
DURES.—(1) The Secretary shall—
‘‘(A) establish an appeals process that provides 
that employees of the Department of Defense are 
entitled to fair treatment in any appeals that they 
bring in decisions relating to their employment; and 
‘‘(B) in prescribing regulations for any such ap-
peals process—
‘‘(i) ensure that employees of the Depart-
ment of Defense are afforded the protections of 
due process; and 
‘‘(ii) toward that end, be required to con-
sult with the Merit Systems Protection Board 
before issuing any such regulations. 
‘‘(2) Any regulations establishing the appeals process 
required by paragraph (1) that relate to any matters with-
in the purview of chapter 77 shall—
‘‘(A) provide for an independent review panel, 
appointed by the President, which shall not include
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the Secretary or the Deputy Secretary of Defense or 
any of their subordinates; 
‘‘(B) be issued only after—
‘‘(i) notification to the appropriate commit-
tees of Congress; and 
‘‘(ii) consultation with the Merit Systems 
Protection Board and the Equal Employment 
Opportunity Commission; 
‘‘(C) ensure the availability of procedures 
that—
‘‘(i) are consistent with requirements of 
due process; and 
‘‘(ii) provide, to the maximum extent prac-
ticable, for the expeditious handling of any mat-
ters involving the Department of Defense; and 
‘‘(D) modify procedures under chapter 77 only 
insofar as such modifications are designed to further 
the fair, efficient, and expeditious resolution of mat-
ters involving the employees of the Department of 
Defense. 
‘‘(h) PROVISIONS RELATED TO SEPARATION AND RE-
TIREMENT INCENTIVES.—(1) The Secretary may establish 
a program within the Department of Defense under which 
employees may be eligible for early retirement, offered sep-
aration incentive pay to separate from service voluntarily,
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or both. This authority may be used to reduce the number 
of personnel employed by the Department of Defense or 
to restructure the workforce to meet mission objectives 
without reducing the overall number of personnel. This au-
thority is in addition to, and notwithstanding, any other 
authorities established by law or regulation for such pro-
grams. 
‘‘(2) For purposes of this section, the term ‘employee’ 
means an employee of the Department of Defense, serving 
under an appointment without time limitation, except that 
such term does not include—
‘‘(A) a reemployed annuitant under subchapter 
III of chapter 83 or chapter 84 of this title, or an-
other retirement system for employees of the Fed-
eral Government; 
‘‘(B) an employee having a disability on the 
basis of which such employee is or would be eligible 
for disability retirement under any of the retirement 
systems referred to in paragraph (1); or 
‘‘(C) for purposes of eligibility for separation 
incentives under this section, an employee who is in 
receipt of a decision notice of involuntary separation 
for misconduct or unacceptable performance. 
‘‘(3) An employee who is at least 50 years of age and 
has completed 20 years of service, or has at least 25 years
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of service, may, pursuant to regulations promulgated 
under this section, apply and be retired from the Depart-
ment of Defense and receive benefits in accordance with 
chapter 83 or 84 if the employee has been employed con-
tinuously within the Department of Defense for more than 
30 days before the date on which the determination to con-
duct a reduction or restructuring within 1 or more Depart-
ment of Defense components is approved pursuant to the 
program established under subsection (a). 
‘‘(4)(A) Separation pay shall be paid in a lump sum 
or in installments and shall be equal to the lesser of—
‘‘(i) an amount equal to the amount the em-
ployee would be entitled to receive under section 
5595(c) of this title, if the employee were entitled to 
payment under such section; or 
‘‘(ii) $25,000. 
‘‘(B) Separation pay shall not be a basis for payment, 
and shall not be included in the computation, of any other 
type of Government benefit. Separation pay shall not be 
taken into account for the purpose of determining the 
amount of any severance pay to which an individual may 
be entitled under section 5595 of this title, based on any 
other separation. 
‘‘(C) Separation pay, if paid in installments, shall 
cease to be paid upon the recipient’s acceptance of employ-
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ment by the Federal Government, or commencement of 
work under a personal services contract as described in 
paragraph (5). 
‘‘(5)(A) An employee who receives separation pay 
under such program may not be reemployed by the De-
partment of Defense for a 12-month period beginning on 
the effective date of the employee’s separation, unless this 
prohibition is waived by the Secretary on a case-by-case 
basis. 
‘‘(B) An employee who receives separation pay under 
this section on the basis of a separation occurring on or 
after the date of the enactment of the Federal Workforce 
Restructuring Act of 1994 (Public Law 103–236; 108 
Stat. 111) and accepts employment with the Government 
of the United States, or who commences work through a 
personal services contract with the United States within 
5 years after the date of the separation on which payment 
of the separation pay is based, shall be required to repay 
the entire amount of the separation pay to the Depart-
ment of Defense. If the employment is with an Executive 
agency (as defined by section 105 of this title) other than 
the Department of Defense, the Director may, at the re-
quest of the head of that agency, waive the repayment if 
the individual involved possesses unique abilities and is the 
only qualified applicant available for the position. If the
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employment is within the Department of Defense, the Sec-
retary may waive the repayment if the individual involved 
is the only qualified applicant available for the position. 
If the employment is with an entity in the legislative 
branch, the head of the entity or the appointing official 
may waive the repayment if the individual involved pos-
sesses unique abilities and is the only qualified applicant 
available for the position. If the employment is with the 
judicial branch, the Director of the Administrative Office 
of the United States Courts may waive the repayment if 
the individual involved possesses unique abilities and is the 
only qualified applicant available for the position. 
‘‘(6) Under this program, early retirement and sepa-
ration pay may be offered only pursuant to regulations 
established by the Secretary, subject to such limitations 
or conditions as the Secretary may require. 
‘‘(i) PROVISIONS RELATING TO REEMPLOYMENT.—
If annuitant receiving an annuity from the Civil Service 
Retirement and Disability Fund becomes employed in a 
position within the Department of Defense, his annuity 
shall continue. An annuitant so reemployed shall not be 
considered an employee for purposes of chapter 83 or 84. 
‘‘(j) ADDITIONAL PROVISIONS RELATING TO PER-
SONNEL MANAGEMENT.—Notwithstanding subsection (c), 
the Secretary may exercise authorities that would other-
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wise be available to the Secretary under paragraphs (1), 
(3), and (8) of section 4703(a) of this title. 
‘‘§ 9903. Attracting highly qualified experts 
‘‘(a) IN GENERAL.—The Secretary may carry out a 
program using the authority provided in subsection (b) in 
order to attract highly qualified experts in needed occupa-
tions, as determined by the Secretary. 
‘‘(b) AUTHORITY.—Under the program, the Sec-
retary may—
‘‘(1) appoint personnel from outside the civil 
service and uniformed services (as such terms are 
defined in section 2101 of this title) to positions in 
the Department of Defense without regard to any 
provision of this title governing the appointment of 
employees to positions in the Department of De-
fense; 
‘‘(2) prescribe the rates of basic pay for posi-
tions to which employees are appointed under para-
graph (1) at rates not in excess of the maximum 
rate of basic pay authorized for senior-level positions 
under section 5376 of this title, as increased by lo-
cality-based comparability payments under section 
5304 of this title, notwithstanding any provision of 
this title governing the rates of pay or classification 
of employees in the executive branch; and
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‘‘(3) pay any employee appointed under para-
graph (1) payments in addition to basic pay within 
the limits applicable to the employee under sub-
section (d). 
‘‘(c) LIMITATION ON TERM OF APPOINTMENT.—(1) 
Except as provided in paragraph (2), the service of an em-
ployee under an appointment made pursuant to this sec-
tion may not exceed 5 years. 
‘‘(2) The Secretary may, in the case of a particular 
employee, extend the period to which service is limited 
under paragraph (1) by up to 1 additional year if the Sec-
retary determines that such action is necessary to promote 
the Department of Defense’s national security missions. 
‘‘(d) LIMITATIONS ON ADDITIONAL PAYMENTS.—(1) 
The total amount of the additional payments paid to an 
employee under this section for any 12-month period may 
not exceed the lesser of the following amounts: 
‘‘(A) $50,000 in fiscal year 2004, which may be 
adjusted annually thereafter by the Secretary, with 
a percentage increase equal to one-half of 1 percent-
age point less than the percentage by which the Em-
ployment Cost Index, published quarterly by the Bu-
reau of Labor Statistics, for the base quarter of the 
year before the preceding calendar year exceeds the
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Employment Cost Index for the base quarter of the 
second year before the preceding calendar year. 
‘‘(B) The amount equal to 50 percent of the 
employee’s annual rate of basic pay. 
For purposes of this paragraph, the term ‘base quarter’ 
has the meaning given such term by section 5302(3). 
‘‘(2) An employee appointed under this section is not 
eligible for any bonus, monetary award, or other monetary 
incentive for service except for payments authorized under 
this section. 
‘‘(3) Notwithstanding any other provision of this sub-
section or of section 5307, no additional payments may 
be paid to an employee under this section in any calendar 
year if, or to the extent that, the employee’s total annual 
compensation will exceed the maximum amount of total 
annual compensation payable at the salary set in accord-
ance with section 104 of title 3. 
‘‘(e) SAVINGS PROVISIONS.—In the event that the 
Secretary terminates this program, in the case of an em-
ployee who, on the day before the termination of the pro-
gram, is serving in a position pursuant to an appointment 
under this section—
‘‘(1) the termination of the program does not 
terminate the employee’s employment in that posi-
tion before the expiration of the lesser of—
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‘‘(A) the period for which the employee 
was appointed; or 
‘‘(B) the period to which the employee’s 
service is limited under subsection (c), including 
any extension made under this section before 
the termination of the program; and 
‘‘(2) the rate of basic pay prescribed for the po-
sition under this section may not be reduced as long 
as the employee continues to serve in the position 
without a break in service. 
‘‘§ 9904. Employment of older Americans 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, the Secretary may appoint older Americans 
into positions in the excepted service for a period not to 
exceed 2 years, provided that—
‘‘(1) any such appointment shall not result in—
‘‘(A) the displacement of individuals cur-
rently employed by the Department of Defense 
(including partial displacement through reduc-
tion of nonovertime hours, wages, or employ-
ment benefits); or 
‘‘(B) the employment of any individual 
when any other person is in a reduction-in-force 
status from the same or substantially equivalent 
job within the Department of Defense; and
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‘‘(2) the individual to be appointed is otherwise 
qualified for the position, as determined by the Sec-
retary. 
‘‘(b) EFFECT
ON EXISTING RETIREMENT BENE-
FITS.—Notwithstanding any other provision of law, an in-
dividual appointed pursuant to subsection (a) who other-
wise is receiving an annuity, pension, retired pay, or other 
similar payment shall not have the amount of said annu-
ity, pension, or other similar payment reduced as a result 
of such employment. 
‘‘(c) 
EXTENSION
OF
APPOINTMENT.—Notwith-
standing subsection (a), the Secretary may extend an ap-
pointment made pursuant to this section for up to an addi-
tional 2 years if the individual employee possesses unique 
knowledge or abilities that are not otherwise available to 
the Department of Defense. 
‘‘(d) DEFINITION.—For purposes of this section, the 
term ‘older American’ means any citizen of the United 
States who is at least 55 years of age. 
‘‘§ 9905. Special pay and benefits for certain employ-
ees outside the United States 
‘‘The Secretary may provide to certain civilian em-
ployees of the Department of Defense assigned to activi-
ties outside the United States as determined by the Sec-
retary to be in support of Department of Defense activities
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abroad hazardous to life or health or so specialized be-
cause of security requirements as to be clearly distinguish-
able from normal Government employment—
‘‘(1) allowances and benefits—
‘‘(A) comparable to those provided by the 
Secretary of State to members of the Foreign 
Service under chapter 9 of title I of the Foreign 
Service Act of 1980 (Public Law 96–465, 22 
U.S.C. 4081 et seq.) or any other provision of 
law; or 
‘‘(B) comparable to those provided by the 
Director of Central Intelligence to personnel of 
the Central Intelligence Agency; and 
‘‘(2) special retirement accrual benefits and dis-
ability in the same manner provided for by the Cen-
tral Intelligence Agency Retirement Act (50 U.S.C. 
2001 et seq.) and in section 18 of the Central Intel-
ligence Agency Act of 1949 (50 U.S.C. 403r).’’. 
(2) The table of chapters for part III of such title 
is amended by adding at the end of subpart I the following 
new item:
‘‘99. Department of Defense National Security Personnel System .......... 9901’’.
(b) IMPACT ON DEPARTMENT OF DEFENSE CIVILIAN 
PERSONNEL.—(1) Any exercise of authority under chap-
ter 99 of such title (as added by subsection (a)), including 
under any system established under such chapter, shall
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be in conformance with the requirements of this sub-
section. 
(2) No other provision of this Act or of any amend-
ment made by this Act may be construed or applied in 
a manner so as to limit, supersede, or otherwise affect the 
provisions of this section, except to the extent that it does 
so by specific reference to this section.
TITLE XII—MATTERS RELATING 
TO OTHER NATIONS
SEC. 1201. EXPANSION OF AUTHORITY TO PROVIDE ADMIN-
ISTRATIVE SUPPORT AND SERVICES AND 
TRAVEL AND SUBSISTENCE EXPENSES FOR 
CERTAIN FOREIGN LIAISON OFFICERS. 
(a) ADMINISTRATIVE SUPPORT
AND SERVICES.—
Subsection (a) of section 1051a of title 10, United States 
Code, is amended—
(1) by striking ‘‘involved in a coalition with the 
United States’’; 
(2) by striking ‘‘temporarily’’; and 
(3) by striking ‘‘ in connection with the plan-
ning for, or conduct of, a coalition operation’’. 
(b) TRAVEL, SUBSISTENCE, 
AND
OTHER
EX-
PENSES.—Subsection (b) of such section is amended—
(1) by striking ‘‘(1)’’;
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(2) by striking ‘‘expenses specified in paragraph 
(2)’’ and inserting ‘‘travel, subsistence, and similar 
personal expenses’’; 
(3) by striking ‘‘developing country’’ and insert-
ing ‘‘developing nation’’; 
(4) by striking ‘‘in connection with the assign-
ment of that officer to the headquarters of a com-
batant command as described in subsection (a)’’ and 
inserting ‘‘involved in a coalition while the liaison of-
ficer is assigned temporarily to a headquarters de-
scribed in subsection (a) in connection with the plan-
ning for, or conduct of, a coalition operation’’; and 
(5) by striking paragraph (2). 
(c) REIMBURSEMENT.—Subsection (c) of such sec-
tion is amended by striking ‘‘by’’ before ‘‘subsection (a)’’ 
and inserting ‘‘under’’. 
(d) CLERICAL AMENDMENTS.—(1) The heading for 
section 1051a of such title is amended to read as follows: 
‘‘§ 1051a. Foreign officers: administrative services 
and support; travel, subsistence, and 
other personal expenses’’. 
(2) The subsection heading for subsection (a) of such 
section is amended by striking ‘‘AUTHORITY’’ and insert-
ing ‘‘ADMINISTRATIVE SERVICES AND SUPPORT’’.
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(3) The item relating to such section in the table of 
sections at the beginning of chapter 53 of such title is 
amended to read as follows:
‘‘1051a. Foreign officers: administrative services and support; travel, subsist-
ence, and other personal expenses.’’.
SEC. 
1202. 
RECOGNITION 
OF 
SUPERIOR 
NONCOMBAT 
ACHIEVEMENTS OR PERFORMANCE BY MEM-
BERS OF FRIENDLY FOREIGN FORCES AND 
OTHER FOREIGN NATIONALS. 
(a) AUTHORITY.—Chapter 53 of title 10, United 
States Code, is amended by inserting after section 1051a 
the following new section: 
‘‘§ 1051b. Bilateral or regional cooperation programs: 
awards and mementos to recognize supe-
rior noncombat achievements or perform-
ance 
‘‘(a) GENERAL AUTHORITY.—The Secretary of De-
fense may present awards and mementos purchased with 
funds appropriated for operation and maintenance of the 
armed forces to recognize superior noncombat achieve-
ments or performance by members of friendly foreign 
forces and other foreign nationals that significantly en-
hance or support the National Security Strategy of the 
United States.
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‘‘(b) ACTIVITIES THAT MAY BE RECOGNIZED.—Ac-
tivities that may be recognized under subsection (a) in-
clude superior achievement or performance that—
‘‘(1) plays a crucial role in shaping the inter-
national security environment in ways that protect 
and promote United States interests; 
‘‘(2) supports or enhances United States over-
seas presence and peacetime engagement activities, 
including defense cooperation initiatives, security as-
sistance training and programs, and training and ex-
ercises with the armed forces; 
‘‘(3) helps to deter aggression and coercion, 
build coalitions, and promote regional stability; or 
‘‘(4) serves as a role model for appropriate con-
duct by military forces in emerging democracies. 
‘‘(c) LIMITATION.—Expenditures for the purchase or 
production of mementos for award under this section may 
not exceed the ‘minimal value’ established in accordance 
with section 7342(a)(5) of title 5.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1051a the following new 
item:
‘‘1051b. Bilateral or regional cooperation programs: awards and mementos to 
recognize superior noncombat achievements or performance.’’.
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SEC. 1203. EXPANSION OF AUTHORITY TO WAIVE CHARGES 
FOR COSTS OF ATTENDANCE AT GEORGE C. 
MARSHALL EUROPEAN CENTER FOR SECU-
RITY STUDIES. 
Section 1306(b)(1) of the National Defense Author-
ization Act for Fiscal Year 1995 (Public Law 103-337; 
108 Stat. 2892) is amended by striking ‘‘of cooperation 
partner states of the North Atlantic Council or the Part-
nership for Peace’’ and inserting ‘‘from states located in 
Europe or the territory of the former Soviet Union’’.
SEC. 
1204. 
IDENTIFICATION 
OF 
GOODS 
AND 
TECH-
NOLOGIES CRITICAL FOR MILITARY SUPERI-
ORITY. 
(a) IN GENERAL.—(1) Subchapter II of chapter 148 
of title 10, United States Code, is amended by adding at 
the end the following new section:
‘‘§ 2508. Goods and technologies critical for military 
superiority: list 
‘‘(a) REQUIREMENT TO MAINTAIN LIST.—(1) The 
Secretary of Defense shall maintain a list of any goods 
or technology that, if obtained by a potential adversary, 
could undermine the military superiority or qualitative 
military advantage of the United States over potential ad-
versaries. 
‘‘(2) In this section, the term ‘goods or technology’ 
means—
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‘‘(A) any article, natural or manmade sub-
stance, material, supply, or manufactured product, 
including inspection and test equipment; and 
‘‘(B) any information and know-how (whether 
in tangible form, such as models, prototypes, draw-
ings, sketches, diagrams, blueprints, or manuals, or 
in intangible form, such as training or technical 
services) that can be used to design, produce, manu-
facture, utilize, or reconstruct goods, including com-
puter software and technical data. 
‘‘(b) MATTERS TO BE INCLUDED ON LIST.—The Sec-
retary shall include on the list the following: 
‘‘(1) Any technology or developing critical tech-
nology (including conventional weapons, weapons of 
mass destruction, and delivery systems) that could 
enhance a potential adversary’s military capabilities 
or that is critical to the United States maintaining 
its military superiority and qualitative military ad-
vantage. 
‘‘(2) Any dual-use good, material, or know-how 
that could enhance a potential adversary’s military 
capabilities or that is critical to the United States 
maintaining its military superiority and qualitative 
military advantage, including those used to manufac-
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ture weapons of mass destruction and their associ-
ated delivery systems. 
‘‘(c) REQUIREMENTS.—The Secretary shall ensure 
that—
‘‘(1) the list is subject to a systematic, ongoing 
assessment and analysis of dual-use technologies; 
and 
‘‘(2) the list is updated not less often than 
every two months. 
‘‘(d) AVAILABILITY.—The list shall be made avail-
able—
‘‘(1) in unclassified form on the Department of 
Defense public website, in a usable form; and 
‘‘(2) in classified form to the Committee on 
Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives.’’.
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following 
new item:
‘‘2508. Goods and technologies critical for military superiority: list.’’.
(b) DEADLINE FOR ESTABLISHMENT.—The list re-
quired by section 2508 of title 10, United States Code, 
as added by subsection (a), shall be established not later 
than 180 days after the enactment of this Act.
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SEC. 1205. REPORT ON ACQUISITION BY IRAQ OF AD-
VANCED WEAPONS.
(a) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services and 
Foreign Relations of the Senate and the Committees on 
Armed Services and International Relations of the House 
of Representatives a report on the acquisition by Iraq of 
weapons of mass destruction and associated delivery sys-
tems and the acquisition by Iraq of advanced conventional 
weapons. 
(b) MATTERS TO BE INCLUDED.—The report shall 
include the following: 
(1) A description of how Iraq was able to obtain 
any materials, technology, and know-how for its nu-
clear, chemical, biological, ballistic missile, and un-
manned aerial vehicle programs, and advanced con-
ventional weapons programs, from 1979 through 
April 2003 from entities (including Iraqi citizens) 
outside of Iraq. 
(2) An assessment of the degree to which 
United States, foreign, and multilateral export con-
trol regimes prevented acquisition by Iraq of weap-
ons of mass destruction-related technology and ma-
terials and advanced conventional weapons and de-
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livery systems since the commencement of inter-
national inspections in Iraq. 
(3) An assessment of the effectiveness of 
United Nations sanctions at halting the flow of mili-
tarily-useful contraband to Iraq from 1991 until the 
end of Operation Iraqi Freedom. 
(4) An assessment of how Iraq was able to 
evade International Atomic Energy Agency and 
United Nations inspections regarding chemical, nu-
clear, biological, and missile weapons and related ca-
pabilities. 
(5) Identification and a catalogue of the entities 
and countries that transferred militarily useful con-
traband to Iraq between 1991 and the end of Oper-
ation Iraqi Freedom, and the nature of that contra-
band. 
(c) FORM OF REPORT.—The report shall be sub-
mitted in unclassified form with a classified annex, if nec-
essary.
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SEC. 1206. AUTHORITY FOR CHECK CASHING AND CUR-
RENCY EXCHANGE SERVICES TO BE PRO-
VIDED TO FOREIGN MILITARY MEMBERS 
PARTICIPATING 
IN 
CERTAIN 
ACTIVITIES 
WITH UNITED STATES FORCES. 
(a) AUTHORITY.—Subsection (b) of section 3342 of 
title 31, United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(8) A member of the military forces of an al-
lied or coalition nation who is participating in a joint 
operation, joint exercise, humanitarian mission, or 
peacekeeping mission with the Armed Forces of the 
United States, but—
‘‘(A) only if—
‘‘(i) such disbursing official action for 
members of the military forces of that na-
tion is approved by the senior United 
States military commander assigned to 
that operation or mission; and 
‘‘(ii) that nation has guaranteed pay-
ment for any deficiency resulting from 
such disbursing official action; and 
‘‘(B) in the case of negotiable instruments, 
only for a negotiable instrument drawn on a fi-
nancial institution located in the United States 
or on a foreign branch of such an institution.’’.
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(b) TECHNICAL AMENDMENTS.—That subsection is 
further amended—
(1) by striking ‘‘only for—’’ in the matter pre-
ceding paragraph (1) and inserting ‘‘only for the fol-
lowing:’’; 
(2) by striking ‘‘an’’ at the beginning of para-
graph (1) and inserting ‘‘An’’; 
(3) by striking ‘‘personnel’’ in paragraphs (2) 
and (6) and inserting ‘‘Personnel’’; 
(4) by striking ‘‘a’’ at the beginning of para-
graphs (3), (4), (5), and (7) and inserting ‘‘A’’; 
(5) by striking the semicolon at the end of 
paragraphs (1) through (5) and inserting a period; 
(6) by striking ‘‘; or’’ at the end of paragraph 
(6) and inserting a period; and 
(7) by striking ‘‘1752(1))’’ in paragraph (7) 
and inserting ‘‘1752(1)))’’.
SEC. 1207. REQUIREMENTS FOR TRANSFER TO FOREIGN 
COUNTRIES OF CERTAIN SPECIFIED TYPES 
OF EXCESS AIRCRAFT. 
(a) EXPANSION OF TRANSFER REQUIREMENT.—Sec-
tion 2581 of title 10, United States Code, is amended—
(1) in subsection (a)(1), by striking ‘‘UH–1 
Huey helicopter or AH–1 Cobra helicopter’’ and in-
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serting ‘‘UH–1 Huey aircraft, AH–1 Cobra aircraft, 
T–2 Buckeye aircraft, or T–37 Tweet aircraft’’; and 
(2) by striking ‘‘helicopter’’ each subsequent 
place it appears in such section and inserting ‘‘air-
craft’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 2581. Specified excess aircraft: requirements for 
transfer to foreign countries’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 153 of such title is 
amended to read as follows:
‘‘2581. Specified excess aircraft: requirements for transfer to foreign coun-
tries.’’.
SEC. 1208. LIMITATION ON NUMBER OF UNITED STATES 
MILITARY PERSONNEL IN COLOMBIA. 
(a) LIMITATION.—None of the funds available to the 
Department of Defense for any fiscal year may be used 
to support or maintain more than 500 members of the 
Armed Forces on duty in the Republic of Colombia at any 
time. 
(b) EXCLUSION OF CERTAIN MEMBERS.—For pur-
poses of determining compliance with the limitation in 
subsection (a), the Secretary of Defense may exclude the 
following military personnel:
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(1) A member of the Armed Forces in the Re-
public of Colombia for the purpose of rescuing or re-
trieving United States military or civilian Govern-
ment personnel, except that the period for which 
such a member may be so excluded may not exceed 
30 days unless expressly authorized by law. 
(2) A member of the Armed Forces assigned to 
the United States Embassy in Colombia as an 
attache´, as a member of the security assistance of-
fice, or as a member of the Marine Corps security 
contingent. 
(3) A member of the Armed Forces in Colombia 
to participate in relief efforts in responding to a nat-
ural disaster. 
(4) Nonoperational transient military personnel. 
(5) A member of the Armed Forces making a 
port call from a military vessel in Colombia.
(c) NATIONAL SECURITY WAIVER.—(1) The Sec-
retary of Defense may waive the limitation in subsection 
(a) if the Secretary determines that such waiver is in the 
national security interest of the United States. 
(2) The Secretary shall notify the congressional de-
fense committees not later 15 days after the date of the 
exercise of the waiver authority under paragraph (1).
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SEC. 1209. ASSESSMENT AND REPORT CONCERNING THE 
LOCATION OF NATO HEADQUARTERS. 
(a) ASSESSMENT.—The Secretary of Defense shall 
conduct a full and complete assessment of costs to the 
United States associated with the location of the head-
quarters of the North Atlantic Treaty Organization 
(NATO) in Brussels, Belgium, and the costs and benefits 
of relocating that headquarters to a suitable location in 
another NATO member country, including those nations 
invited to join NATO at the Prague summit in 2002. The 
Secretary shall conduct such assessment in consultation 
with the Secretary of State. 
(b) REPORT TO CONGRESS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress a report of the find-
ings of the assessment under subsection (a). 
SEC. 1210. SENSE OF CONGRESS ON REDEPLOYMENT OF 
UNITED STATES FORCES IN EUROPE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) In March 1999, in its initial round of ex-
pansion, the North Atlantic Treaty Organization 
(NATO) admitted Poland, the Czech Republic, and 
Hungary to the Alliance. 
(2) At the Prague Summit on November 21–22, 
2002, the NATO heads of state and government in-
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vited the countries of Bulgaria, Estonia, Latvia, 
Lithuania, Romania, Slovakia, and Slovenia to join
the Alliance. 
(3) The countries admitted in the initial round 
of expansion referred to in paragraph (1) and the 
seven new invitee nations referred to in paragraph 
(2) will in combination significantly alter the nature 
of the Alliance. 
(4) During the first 50 years of the Alliance, 
NATO materially contributed to the security and 
stability of Western Europe, brining peace and pros-
perity to the member nations. 
(5) The expansion of NATO is an opportunity 
to assist the invitee nations in gaining the capabili-
ties to ensure peace, prosperity, and democracy for 
themselves during the next 50 years of the Alliance. 
(6) The military structure and mission of 
NATO has changed, no longer being focused on the 
threat of a Soviet invasion, but evolving to handle 
new missions in the area of crisis management, 
peacekeeping, and peace-support in the Euro-Atlan-
tic area of operations. 
(b) SENSE OF CONGRESS.—In light of the findings 
in subsection (a), it is the sense of Congress that—
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(1) the expansion of the North Atlantic Treaty 
Organization Alliance and the evolution of the mili-
tary mission of that Alliance requires a fundamental 
reevaluation of the current posture of United States 
forces stationed in Europe; and 
(2) the President should—
(A) initiate a reevaluation referred to in 
paragraph (1); and 
(B) in carrying out such a reevaluation, 
consider a military posture that takes maximum 
advantage of basing and training opportunities 
in the newly admitted and invitee states re-
ferred to in paragraphs (1) and (2), respec-
tively, of subsection (a). 
SEC. 1211. REPORT ON ACTIONS THAT COULD BE TAKEN 
REGARDING COUNTRIES THAT INITIATE CER-
TAIN 
LEGAL 
ACTIONS 
AGAINST 
UNITED 
STATES OFFICIALS. 
(a) FINDING.—Congress finds that actions for or on 
behalf of a foreign government that constitute attempts 
to commence legal proceedings against, or attempts to 
compel the appearance of or production of documents 
from, any current or former official or employee of the 
United States or member of the Armed Forces of the 
United States relating to the performance of official duties
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constitutes a threat to the ability of the United States to 
take necessary and timely military action. 
(b) REPORT.—Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on appropriate steps 
that could be taken by the Department of Defense (includ-
ing restrictions on military travel and limitations on mili-
tary support and exchange programs) to respond to any 
action by a foreign government described in subsection 
(a). 
SEC. 1212. SENSE OF CONGRESS CONCERNING NAVY PORT 
CALLS IN ISRAEL. 
(a) FINDINGS.—Congress finds the following: 
(1) The United States Sixth Fleet has not con-
ducted regular visits to the port of Haifa, Israel, 
since the attack on the U.S.S. Cole in Aden, Yemen, 
on October 12, 2000, but previously visited that port 
on a regular basis, with an average of 90 United 
States warships visiting Haifa each year. 
(2) The United States Navy has invested mil-
lions of dollars in expanding the capacity and capa-
bility of the port of Haifa to accommodate United 
States Navy requirements and the port of Haifa is 
among the most secure harbors in the world and of-
fers reliable and efficient repair facilities with close
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proximity to capable air transport and communica-
tions. 
(3) The forward presence of United States 
Navy ships is a powerful deterrent to aggression and 
a tangible expression of American national interests. 
(4) The visits of the United States Sixth Fleet 
to Haifa demonstrate the historic friendship of the 
American and Israeli people and the commitment of 
the United States to the security and survival of the 
State of Israel. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
(1) the Secretary of Defense and the United 
States Navy should engage with the Government of 
Israel and the Israel Defense Forces to establish ap-
propriate and effective arrangements to ensure the 
safety of United States Navy vessels and personnel; 
and 
(2) upon such arrangements being made, the 
Sixth Fleet should resume regular port visits to 
Haifa, Israel. 
SEC. 1213. ASSISTANCE TO IRAQI CHILDREN INJURED DUR-
ING OPERATION IRAQI FREEDOM. 
(a) ASSISTANCE.—The Secretary of Defense shall, to 
the maximum extent practicable, provide all necessary
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support in an expeditious manner to assist Iraqi children 
who were injured during Operation Iraqi Freedom. 
(b) ADDITIONAL REQUIREMENTS.—Assistance de-
scribed in subsection (a) may be provided to a child only 
if adequate treatment from other sources in Iraq or neigh-
boring countries is not available and only after completion 
of an evaluation by a physician or other appropriate med-
ical personnel of the United States Armed Forces. In addi-
tion, assistance described in subsection (a) may be pro-
vided only if it would not adversely affect military oper-
ations of the United States. 
(c) DEFINITION.—In this section, the term ‘‘Oper-
ation Iraqi Freedom’’ means operations of the United 
States Armed Forces, the armed forces of the United 
Kingdom, and the armed forces of other coalition member 
countries initiated on or about March 19, 2003—
(1) to disarm Iraq of its weapons of mass de-
struction; 
(2) to enforce United Nations Security Council 
Resolution 1441 (November 8, 2002) and other rel-
evant Security Council resolutions with respect to 
Iraq; and 
(3) to liberate the people of Iraq from the re-
gime of Saddam Hussein.
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TITLE 
XIII—COOPERATIVE 
THREAT 
REDUCTION 
WITH 
STATES OF THE FORMER SO-
VIET UNION
SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT RE-
DUCTION PROGRAMS AND FUNDS. 
(a) SPECIFICATION OF CTR PROGRAMS.—For pur-
poses of section 301 and other provisions of this Act, Co-
operative Threat Reduction programs are the programs 
specified in section 1501(b) of the National Defense Au-
thorization Act for Fiscal Year 1997 (Public Law 104–
201; 110 Stat. 2731; 50 U.S.C. 2362 note). 
(b) FISCAL YEAR 2004 COOPERATIVE THREAT RE-
DUCTION FUNDS DEFINED.—As used in this title, the 
term ‘‘fiscal year 2004 Cooperative Threat Reduction 
funds’’ means the funds appropriated pursuant to the au-
thorization of appropriations in section 301 for Coopera-
tive Threat Reduction programs. 
(c) AVAILABILITY OF FUNDS.—Funds appropriated 
pursuant to the authorization of appropriations in section 
301 for Cooperative Threat Reduction programs shall be 
available for obligation for three fiscal years. 
SEC. 1302. FUNDING ALLOCATIONS. 
(a) FUNDING
FOR SPECIFIC PURPOSES.—Of the 
$450,800,000 authorized to be appropriated to the De-
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partment of Defense for fiscal year 2004 in section 
301(19) for Cooperative Threat Reduction programs, the 
following amounts may be obligated for the purposes spec-
ified: 
(1) For strategic offensive arms elimination in 
Russia, $86,400,000. 
(2) For strategic nuclear arms elimination in 
Ukraine, $3,900,000. 
(3) For nuclear weapons transportation security 
in Russia, $23,200,000. 
(4) For nuclear weapons storage security in 
Russia, $48,000,000. 
(5) For activities designated as Other Program 
Support, $13,100,000. 
(6) 
For 
defense 
and 
military 
contacts, 
$11,100,000. 
(7) For chemical weapons destruction in Rus-
sia, $171,500,000. 
(8) For biological weapons proliferation preven-
tion in the former Soviet Union, $54,200,000. 
(9) For weapons of mass destruction prolifera-
tion prevention in the states of the former Soviet 
Union, $39,400,000. 
(b) REPORT ON OBLIGATION OR EXPENDITURE OF 
FUNDS FOR OTHER PURPOSES.—No fiscal year 2004 Co-
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operative Threat Reduction funds may be obligated or ex-
pended for a purpose other than a purpose listed in para-
graphs (1) through (9) of subsection (a) until 30 days 
after the date that the Secretary of Defense submits to 
Congress a report on the purpose for which the funds will 
be obligated or expended and the amount of funds to be 
obligated or expended. Nothing in the preceding sentence 
shall be construed as authorizing the obligation or expend-
iture of fiscal year 2004 Cooperative Threat Reduction 
funds for a purpose for which the obligation or expendi-
ture of such funds is specifically prohibited under this title 
or any other provision of law. 
(c) LIMITED AUTHORITY TO VARY INDIVIDUAL 
AMOUNTS.—(1) Subject to paragraphs (2) and (3), in any 
case in which the Secretary of Defense determines that 
it is necessary to do so in the national interest, the Sec-
retary may obligate amounts appropriated for fiscal year 
2004 for a purpose listed in any of the paragraphs in sub-
section (a) in excess of the specific amount authorized for 
that purpose. 
(2) An obligation of funds for a purpose stated in 
any of the paragraphs in subsection (a) in excess of the 
specific amount authorized for such purpose may be made 
using the authority provided in paragraph (1) only after—
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(A) the Secretary submits to Congress notifica-
tion of the intent to do so together with a complete 
discussion of the justification for doing so; and 
(B) 15 days have elapsed following the date of 
the notification. 
(3) The Secretary may not, under the authority pro-
vided in paragraph (1), obligate amounts for a purpose 
stated in any of paragraphs (5) through (8) of subsection 
(a) in excess of 125 percent of the specific amount author-
ized for such purpose.
SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL CERTAIN 
PERMITS OBTAINED. 
(a) LIMITATION ON USE OF FUNDS.—With respect 
to a new project or an incomplete project carried out by 
the Department of Defense under Cooperative Threat Re-
duction programs, not more than 35 percent of the total 
costs of the project may be obligated or expended from 
Cooperative Threat Reduction funds for any fiscal year 
until—
(1) the Secretary of Defense determines—
(A) in the case of a new project, the num-
ber and type of permits that may be required 
for the lifetime of the project in the proposed 
location or locations of the project; and
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(B) in the case of an incomplete project, 
the number and type of permits that may be re-
quired for the remaining lifetime of the project; 
and 
(2) the government of the state of the former 
Soviet Union in which the project is being or is pro-
posed to be carried out obtains and transmits copies 
of all such permits to the Department of Defense. 
(b) DEFINITIONS.—In this section, with respect to a 
project under Cooperative Threat Reduction programs: 
(1) NEW PROJECT.—The term ‘‘new project’’ 
means a project for which no funds have been obli-
gated or expended as of the date of the enactment 
of this Act. 
(2) INCOMPLETE PROJECT.—The term ‘‘incom-
plete project’’ means a project for which funds have 
been obligated or expended before the date of the en-
actment of this Act and which is not completed as 
of such date. 
(3) PERMIT.—The term ‘‘permit’’ means any 
local or national permit for development, general 
construction, environmental, land use, or other pur-
poses that is required in the state of the former So-
viet Union in which the project is being or is pro-
posed to be carried out.
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SEC. 1304. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL 
RESEARCH IN THE FORMER SOVIET UNION. 
Of the funds authorized to be appropriated for bio-
logical weapons proliferation prevention pursuant to sec-
tion 1302, no funds may be obligated for cooperative bio-
defense research or bioattack early warning and prepared-
ness under a Cooperative Threat Reduction program at 
a site in a state of the former Soviet Union until the Sec-
retary of Defense notifies Congress that—
(1) the Secretary has determined, through ac-
cess to the site, that no biological weapons research 
prohibited by international law is being conducted at 
the site; 
(2) the Secretary has assessed the vulnerability 
of the site to external or internal attempts to exploit 
or obtain dangerous pathogens illicitly; and 
(3) the Secretary has begun to implement ap-
propriate security measures at the site to reduce 
that vulnerability and to prevent the diversion of 
dangerous pathogens from legitimate research.
SEC. 1305. AUTHORITY AND FUNDS FOR NONPROLIFERA-
TION AND DISARMAMENT. 
The Secretary of Defense is authorized to transfer 
$78,000,000 in prior year Cooperative Threat Reduction 
funds from the Department of Defense to the Department 
of State Nonproliferation and Disarmament Fund for dis-
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armament and nonproliferation purposes outside the terri-
tory of the former Soviet Union.
SEC. 1306. REQUIREMENT FOR ON-SITE MANAGERS. 
(a) ON-SITE MANAGER REQUIREMENT.—Before obli-
gating any Cooperative Threat Reduction funds for a 
project described in subsection (b), the Secretary of De-
fense shall appoint a United States Federal Government 
employee as an on-site manager. 
(b) PROJECTS COVERED.—Subsection (a) applies to 
a project—
(1) to be located in a state of the former Soviet 
Union; 
(2) which involves dismantlement, destruction, 
or storage facilities, or construction of a facility; and 
(3) with respect to which the total contribution 
by the Department of Defense is expected to exceed 
$25,000,000. 
(c) DUTIES
OF ON-SITE MANAGER.—The on-site 
manager appointed under subsection (a) shall—
(1) develop, in cooperation with representatives 
from governments of countries participating in the 
project, a list of those steps or activities critical to 
achieving the project’s disarmament or nonprolifera-
tion goals;
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(2) establish a schedule for completing those 
steps or activities; 
(3) meet with all participants to seek assur-
ances that those steps or activities are being com-
pleted on schedule; and 
(4) suspend United States participation in a 
project when a non-United States participant fails to 
complete a scheduled step or activity on time, unless 
directed by the Secretary of Defense to resume 
United States participation. 
(d) STEPS OR ACTIVITIES.—Steps or activities re-
ferred to in subsection (c)(1) are those activities that, if 
not completed, will prevent a project from achieving its 
disarmament or nonproliferation goals, including, at a 
minimum, the following: 
(1) Identification and acquisition of permits (as 
defined in section 1303(b)). 
(2) Verification that the items, substances, or 
capabilities to be dismantled, secured, or otherwise 
modified are available for dismantlement, securing, 
or modification. 
(3) Timely provision of financial, personnel, 
management, transportation, and other resources. 
(e) NOTIFICATION TO CONGRESS.—In any case in 
which the Secretary of Defense directs an on-site manager
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to resume United States participation in a project under 
subsection (c)(4), the Secretary shall concurrently notify 
Congress of such direction. 
(f) EFFECTIVE DATE.—This section shall take effect 
six months after the date of the enactment of this Act.
SEC. 1307. PROVISIONS RELATING TO FUNDING FOR CHEM-
ICAL WEAPONS DESTRUCTION FACILITY IN 
RUSSIA. 
(a) INAPPLICABILITY OF LIMITATION ON USE OF 
FUNDS.—(1) The conditions described in section 1305 of 
the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106–65; 22 U.S.C. 5952 note) shall not 
apply to the obligation and expenditure of funds available 
for obligation during fiscal year 2004 for the planning, 
design, or construction of a chemical weapons destruction 
facility in Russia if the President submits to Congress a 
written certification that includes—
(A) a statement as to why waiving the condi-
tions is important to the national security interests 
of the United States; 
(B) a full and complete justification for exer-
cising this waiver; and 
(C) a plan to promote a full and accurate dis-
closure by Russia regarding the size, content, status, 
and location of its chemical weapons stockpile.
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(2) The authority under paragraph (1) shall expire 
on September 30, 2004. 
(b) AVAILABILITY OF FUNDS.—(1) Except as pro-
vided in paragraph (2), of the funds that may be obligated 
for a chemical weapons destruction facility in Russia as 
specified in section 1302(a)(7), the Secretary of Defense 
may not obligate an amount greater than two times the 
amount obligated by Russia and any other state for the 
planning, design, construction, or operation of a chemical 
weapons destruction facility in Russia. 
(2) Of the funds that may be obligated for a chemical 
weapons destruction facility in Russia as specified in sec-
tion 1302(a)(7), $71,500,000 shall be available for obliga-
tion on and after October 1, 2003. 
SEC. 1308. STUDY RELATING TO EX-SOVIET URANIUM AND 
PLUTONIUM. 
The Secretary of Defense shall submit a study to 
Congress not later than one year after the date of the en-
actment of this Act, examining the costs and benefits of 
purchasing all the ex-Soviet weapons-grade uranium and 
plutonium in fiscal year 2005, and safeguarding it from 
smuggling or theft until it can be rendered unusable for 
weapons.
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TITLE XIV—SERVICES 
ACQUISITION REFORM 
SEC. 1401. SHORT TITLE. 
This title may be cited as the ‘‘Services Acquisition 
Reform Act of 2003’’. 
SEC. 1402. EXECUTIVE AGENCY DEFINED. 
In this title, the term ‘‘executive agency’’ has the 
meaning given that term in section 4(1) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(1)), un-
less specifically stated otherwise. 
Subtitle A—Acquisition Workforce 
and Training 
SEC. 1411. DEFINITION OF ACQUISITION. 
Section 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403) is amended by adding at the end the 
following: 
‘‘(16) The term ‘acquisition’—
‘‘(A) means the process of acquiring, with 
appropriated funds, by contract for purchase or 
lease, property or services (including construc-
tion) that support the missions and goals of an 
executive agency, from the point at which the 
requirements of the executive agency are estab-
lished in consultation with the chief acquisition 
officer of the executive agency; and
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‘‘(B) includes—
‘‘(i) the process of acquiring property 
or services that are already in existence, or 
that must be created, developed, dem-
onstrated, and evaluated; 
‘‘(ii) the description of requirements 
to satisfy agency needs; 
‘‘(iii) solicitation and selection of 
sources; 
‘‘(iv) award of contracts; 
‘‘(v) contract performance; 
‘‘(vi) contract financing: 
‘‘(vii) management and measurement 
of contract performance through final de-
livery and payment; and 
‘‘(viii) 
technical 
and 
management 
functions directly related to the process of 
fulfilling agency requirements by con-
tract.’’. 
SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND. 
(a) PURPOSES.—The purposes of this section are to 
ensure that the Federal acquisition workforce—
(1) adapts to fundamental changes in the na-
ture of Federal Government acquisition of property
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and services associated with the changing roles of 
the Federal Government; and 
(2) acquires new skills and a new perspective to 
enable it to contribute effectively in the changing en-
vironment of the 21st century. 
(b) ESTABLISHMENT OF FUND.—Section 37 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 433) 
is amended by adding at the end of subsection (h) the 
following new paragraph: 
‘‘(3) 
ACQUISITION
WORKFORCE
TRAINING 
FUND.—(A) The Administrator of General Services 
shall establish an acquisition workforce training 
fund. The Administrator shall manage the fund 
through the Federal Acquisition Institute to support 
the training of the acquisition workforce of the exec-
utive agencies other than the Department of De-
fense. The Administrator shall consult with the Ad-
ministrator for Federal Procurement Policy in man-
aging the fund. 
‘‘(B) There shall be credited to the acquisition 
workforce training fund 5 percent of the fees col-
lected by executive agencies (other than the Depart-
ment of Defense) under the following contracts: 
‘‘(i) Governmentwide task and delivery-
order contracts entered into under sections
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303H and 303I of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 
253h and 253i). 
‘‘(ii) Governmentwide contracts for the ac-
quisition of information technology as defined 
in section 11101 of title 40, United States 
Code, and multiagency acquisition contracts for 
such technology authorized by section 11314 of 
such title. 
‘‘(iii) Multiple-award schedule contracts 
entered into by the Administrator of General 
Services. 
‘‘(C) The head of an executive agency that ad-
ministers a contract described in subparagraph (B) 
shall remit to the General Services Administration 
the amount required to be credited to the fund with 
respect to such contract at the end of each quarter 
of the fiscal year. 
‘‘(D) The Administrator of General Services, 
through the Office of Federal Acquisition Policy, 
shall ensure that funds collected for training under 
this section are not used for any purpose other than 
the purpose specified in subparagraph (A).
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‘‘(E) Amounts credited to the fund shall be in 
addition to funds requested and appropriated for 
education and training referred to in paragraph (1). 
‘‘(F) Amounts credited to the fund shall remain 
available until expended.’’. 
(c) EXCEPTION.—This section and the amendments 
made by this section shall not apply to the acquisition 
workforce of the Department of Defense. 
SEC. 1413. ACQUISITION WORKFORCE RECRUITMENT PRO-
GRAM. 
(a) AUTHORITY TO CARRY OUT PROGRAM.—For 
purposes of sections 3304, 5333, and 5753 of title 5, 
United States Code, the head of a department or agency 
of the United States (including the Secretary of Defense) 
may determine that certain Federal acquisition positions 
are ‘‘shortage category’’ positions in order to recruit and 
appoint directly to positions of employment in the depart-
ment or agency highly qualified persons, such as any per-
son who—
(1) holds a bachelor’s degree from an accredited 
institution of higher education; 
(2) holds, from an accredited law school or an 
accredited institution of higher education—
(A) a law degree; or
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(B) a masters or equivalent degree in busi-
ness administration, public administration, or 
systems engineering; or 
(3) has significant experience with commercial 
acquisition practices, terms, and conditions. 
(b) REQUIREMENTS.—The exercise of authority to 
take a personnel action under this section shall be subject 
to policies prescribed by the Office of Personnel Manage-
ment that govern direct recruitment, including policies re-
quiring appointment of a preference eligible who satisfies 
the qualification requirements. 
(c) TERMINATION OF AUTHORITY.—The head of a 
department or agency may not appoint a person to a posi-
tion of employment under this section after September 30, 
2007. 
(d) REPORT.—Not later than March 31, 2007, the 
Administrator for Federal Procurement Policy shall sub-
mit to Congress a report on the implementation of this 
section. The report shall include—
(1) the Administrator’s assessment of the effi-
cacy of the exercise of the authority provided in this 
section in attracting employees with unusually high 
qualifications to the acquisition workforce; and
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(2) any recommendations considered appro-
priate by the Administrator on whether the author-
ity to carry out the program should be extended. 
SEC. 1414. ARCHITECTURAL AND ENGINEERING ACQUISI-
TION WORKFORCE. 
The Administrator for Federal Procurement Policy, 
in consultation with the Secretary of Defense, the Admin-
istrator of General Services, and the Director of the Office 
of Personnel Management, shall develop and implement a 
plan to ensure that the Federal Government maintains the 
necessary capability with respect to the acquisition of ar-
chitectural and engineering services to—
(1) ensure that Federal Government employees 
have the expertise to determine agency requirements 
for such services; 
(2) establish priorities and programs (including 
acquisition plans); 
(3) establish professional standards; 
(4) develop scopes of work; and 
(5) award and administer contracts for such 
services.
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Subtitle B—Adaptation of Business 
Acquisition Practices 
PART I—ADAPTATION OF BUSINESS 
MANAGEMENT PRACTICES 
SEC. 1421. CHIEF ACQUISITION OFFICERS. 
(a) APPOINTMENT
OF CHIEF ACQUISITION OFFI-
CERS.—(1) Section 16 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 414) is amended to read as 
follows:
‘‘SEC. 16. CHIEF ACQUISITION OFFICERS. 
‘‘(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISI-
TION OFFICERS.—The head of each executive agency 
(other than the Department of Defense) shall appoint or 
designate a non-career employee as Chief Acquisition Offi-
cer for the agency, who shall—
‘‘(1) have acquisition management as that offi-
cial’s primary duty; and 
‘‘(2) advise and assist the head of the executive 
agency and other agency officials to ensure that the 
mission of the executive agency is achieved through 
the management of the agency’s acquisition activi-
ties. 
‘‘(b) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF 
ACQUISITION OFFICERS.—The functions of each Chief Ac-
quisition Officer shall include—
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‘‘(1) monitoring the performance of acquisition 
activities and acquisition programs of the executive 
agency, evaluating the performance of those pro-
grams on the basis of applicable performance meas-
urements, and advising the head of the executive 
agency regarding the appropriate business strategy 
to achieve the mission of the executive agency; 
‘‘(2) increasing the use of full and open com-
petition in the acquisition of property and services 
by the executive agency by establishing policies, pro-
cedures, and practices that ensure that the executive 
agency receives a sufficient number of sealed bids or 
competitive proposals from responsible sources to 
fulfill the Government’s requirements (including per-
formance and delivery schedules) at the best value 
considering the nature of the property or service 
procured; 
‘‘(3) making acquisition decisions consistent 
with all applicable laws and establishing clear lines 
of authority, accountability, and responsibility for 
acquisition decisionmaking within the executive 
agency; 
‘‘(4) managing the direction of acquisition pol-
icy for the executive agency, including implementa-
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tion of the unique acquisition policies, regulations, 
and standards of the executive agency; 
‘‘(5) developing and maintaining an acquisition 
career management program in the executive agency 
to ensure that there is an adequate professional 
workforce; and 
‘‘(6) as part of the strategic planning and per-
formance evaluation process required under section 
306 of title 5, United States Code, and sections 
1105(a)(28), 1115, 1116, and 9703 of title 31, 
United States Code—
‘‘(A) assessing the requirements estab-
lished for agency personnel regarding knowl-
edge and skill in acquisition resources manage-
ment and the adequacy of such requirements 
for facilitating the achievement of the perform-
ance goals established for acquisition manage-
ment; 
‘‘(B) in order to rectify any deficiency in 
meeting such requirements, developing strate-
gies and specific plans for hiring, training, and 
professional development; and 
‘‘(C) reporting to the head of the executive 
agency on the progress made in improving ac-
quisition management capability.’’.
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(2) The item relating to section 16 in the table of 
contents in section 1(b) of such Act is amended to read 
as follows:
‘‘Sec. 16. Chief Acquisition Officers.’’.
(b) REFERENCES TO SENIOR PROCUREMENT EXECU-
TIVE.—
(1) AMENDMENT TO THE OFFICE OF FEDERAL 
POLICY ACT.—
(A) Subsections (a)(2)(A) and (b) of sec-
tion 20 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 418(a)(2)(A), (b)) are 
amended by striking ‘‘senior procurement exec-
utive’’ each place it appears and inserting 
‘‘Chief Acquisition Officer’’. 
(B) Subsection (c)(2)(A)(ii) of section 29 
of the Office of Federal Procurement Policy Act 
(41 U.S.C. 425(c)(2)(A)(ii)) is amended by 
striking ‘‘senior procurement executive’’ and in-
serting ‘‘Chief Acquisition Officer’’. 
(C) Subsection (c) of section 37 of the Of-
fice of Federal Procurement Policy Act (41 
U.S.C. 433(c)) is amended—
(i) by striking ‘‘SENIOR PROCURE-
MENT EXECUTIVE’’ in the heading and in-
serting ‘‘CHIEF ACQUISITION OFFICER’’; 
and
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(ii) by striking ‘‘senior procurement 
executive’’ each place it appears and in-
serting ‘‘Chief Acquisition Officer’’. 
(2) AMENDMENT TO TITLE III OF THE FED-
ERAL
PROPERTY
AND
ADMINISTRATIVE
SERVICES 
ACT
OF
1949.—Sections 
302C(b) 
and 
303(f)(1)(B)(iii) of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 252c, 
253) are amended by striking ‘‘senior procurement 
executive’’ each place it appears and inserting 
‘‘Chief Acquisition Officer’’. 
(3) AMENDMENT TO TITLE 10, UNITED STATES 
CODE.—The following sections of title 10, United 
States Code are amended by striking ‘‘senior pro-
curement executive’’ each place it appears and in-
serting ‘‘Chief Acquisition Officer’’: 
(A) Section 133(c)(1). 
(B) Subsections (d)(2)(B) and (f)(1) of 
section 2225. 
(C) Section 2302c(b). 
(D) Section 2304(f)(1)(B)(iii). 
(E) Section 2359a(i). 
(4) REFERENCES.—Any reference to a senior 
procurement executive of a department or agency of 
the United States in any other provision of law or
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regulation, document, or record of the United States 
shall be deemed to be a reference to the Chief Acqui-
sition Officer of the department or agency. 
(c) TECHNICAL CORRECTION.—Section 1115(a) of 
title 31, United States Code, is amended by striking ‘‘sec-
tion 1105(a)(29)’’ and inserting ‘‘section 1105(a)(28)’’. 
SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL. 
(a) ESTABLISHMENT OF COUNCIL.—The Office of 
Federal Procurement Policy Act (41 U.S.C. 403 et seq.) 
is amended by inserting after section 16 the following new 
section: 
‘‘SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL. 
‘‘(a) ESTABLISHMENT.—There is established in the 
executive branch a Chief Acquisition Officers Council. 
‘‘(b) MEMBERSHIP.—The members of the Council 
shall be as follows: 
‘‘(1) The Deputy Director for Management of 
the Office of Management and Budget, who shall act 
as Chairman of the Council. 
‘‘(2) The Administrator for Federal Procure-
ment Policy. 
‘‘(3) The chief acquisition officer of each execu-
tive agency. 
‘‘(4) The Under Secretary of Defense for Ac-
quisition, Technology, and Logistics.
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‘‘(5) Any other officer or employee of the 
United States designated by the Chairman. 
‘‘(c) LEADERSHIP; SUPPORT.—(1) The Adminis-
trator for Federal Procurement Policy shall lead the ac-
tivities of the Council on behalf of the Deputy Director 
for Management. 
‘‘(2)(A) The Vice Chairman of the Council shall be 
selected by the Council from among its members. 
‘‘(B) The Vice Chairman shall serve a 1-year term, 
and may serve multiple terms. 
‘‘(3) The Administrator of General Services shall pro-
vide administrative and other support for the Council. 
‘‘(d) PRINCIPAL FORUM.—The Council is designated 
the principal interagency forum for monitoring and im-
proving the Federal acquisition system. 
‘‘(e) FUNCTIONS.—The Council shall perform func-
tions that include the following: 
‘‘(1) Develop recommendations for the Director 
of the Office of Management and Budget on Federal 
acquisition policies and requirements. 
‘‘(2) Share experiences, ideas, best practices, 
and innovative approaches related to Federal acqui-
sition. 
‘‘(3) Assist the Administrator in the identifica-
tion, development, and coordination of multiagency
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projects and other innovative initiatives to improve 
Federal acquisition. 
‘‘(4) Promote effective business practices that 
ensure the timely delivery of best value products to 
the Federal Government and achieve appropriate 
public policy objectives. 
‘‘(5) Further integrity, fairness, competition, 
openness, and efficiency in the Federal acquisition 
system. 
‘‘(6) Work with the Office of Personnel Man-
agement to assess and address the hiring, training, 
and professional development needs of the Federal 
Government related to acquisition. 
‘‘(7) Work with the Administrator and the Fed-
eral Acquisition Regulatory Council to promote the 
business practices referred to in paragraph (4) and 
other results of the functions carried out under this 
subsection.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of such Act is amended by inserting after 
the item relating to section 16 the following new item:
‘‘Sec. 16A. Chief Acquisition Officers Council.’’.
SEC. 1423. STATUTORY AND REGULATORY REVIEW. 
(a) ESTABLISHMENT.—Not later than 90 days after 
the date of the enactment of this Act, the Administrator 
for Federal Procurement Policy shall establish an advisory
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panel to review laws and regulations regarding the use of 
commercial practices, performance-based contracting, the 
performance of acquisition functions across agency lines 
of responsibility, and the use of Governmentwide con-
tracts. 
(b) MEMBERSHIP.—The panel shall be composed of 
at least nine individuals who are recognized experts in ac-
quisition law and Government acquisition policy. In mak-
ing appointments to the panel, the Administrator shall—
(1) consult with the Secretary of Defense, the 
Administrator of General Services, the Committees 
on Armed Services and Government Reform of the 
House of Representatives, and the Committees on 
Armed Services and Governmental Affairs of the 
Senate, and 
(2) ensure that the members of the panel reflect 
the diverse experiences in the public and private sec-
tors. 
(c) DUTIES.—The panel shall—
(1) review all Federal acquisition laws and reg-
ulations with a view toward ensuring effective and 
appropriate use of commercial practices and per-
formance-based contracting; and
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(2) make any recommendations for the repeal 
or amendment of such laws or regulations that are 
considered necessary as a result of such review—
(A) to eliminate any provisions in such 
laws or regulations that are unnecessary for the 
effective, efficient, and fair award and adminis-
tration of contracts for the acquisition by the 
Federal Government of goods and services; 
(B) to ensure the continuing financial and 
ethical integrity of acquisitions by the Federal 
Government; and 
(C) to protect the best interests of the 
Federal Government. 
(d) REPORT.—Not later than one year after the es-
tablishment of the panel, the panel shall submit to the Ad-
ministrator and to the Committees on Armed Services and 
Government Reform of the House of Representatives and 
the Committees on Armed Services and Governmental Af-
fairs of the Senate a report containing a detailed state-
ment of the findings, conclusions, and recommendations 
of the panel.
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PART II—OTHER ACQUISITION IMPROVEMENTS 
SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT 
FRANCHISE FUND PROGRAMS. 
Section 403(f) of the Federal Financial Management 
Act of 1994 (Public Law 103–356; 31 U.S.C. 501 note) 
is amended by striking ‘‘October 1, 2003’’ and inserting 
‘‘October 1, 2006’’. 
SEC. 1427. AGENCY ACQUISITION PROTESTS. 
(a) DEFENSE CONTRACTS.—(1) Chapter 137 of title 
10, United States Code, is amended by inserting after sec-
tion 2305a the following new section:
‘‘§ 2305b. Protests
‘‘(a) IN GENERAL.—An interested party may protest 
an acquisition of supplies or services by an agency based 
on an alleged violation of an acquisition law or regulation, 
and a decision regarding such alleged violation shall be 
made by the agency in accordance with this section. 
‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING 
DECISION.—(1) Except as provided in paragraph (2), a 
contract may not be awarded by an agency after a protest 
concerning the acquisition has been submitted under this 
section and while the protest is pending. 
‘‘(2) The head of the acquisition activity responsible 
for the award of the contract may authorize the award 
of a contract, notwithstanding pending protest under this 
section, upon making a written finding that urgent and
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compelling circumstances do not allow for waiting for a 
decision on the protest. 
‘‘(c) RESTRICTION
ON CONTRACT PERFORMANCE 
PENDING DECISION.—(1) Except as provided in para-
graph (2), performance of a contract may not be author-
ized (and performance of the contract shall cease if per-
formance has already begun) in any case in which a pro-
test of the contract award is submitted under this section 
before the later of—
‘‘(A) the date that is 10 days after the date of 
contract award; or 
‘‘(B) the date that is five days after an agency 
debriefing date offered to an unsuccessful offeror for 
any debriefing that is requested and, when re-
quested, is required, under section 2305(b)(5) of 
this title. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize performance 
of the contract notwithstanding a pending protest under 
this section upon making a written finding that urgent 
and compelling circumstances do not allow for waiting for 
a decision on the protest. 
‘‘(d) DEADLINE FOR DECISION.—The head of an 
agency shall issue a decision on a protest under this sec-
tion not later than the date that is 20 working days after
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the date on which the protest is submitted to such head 
of an agency. 
‘‘(e) CONSTRUCTION.—Nothing in this section shall 
affect the right of an interested party to file a protest with 
the Comptroller General under subchapter V of chapter 
35 of title 31 or in the United States Court of Federal 
Claims. 
‘‘(f) DEFINITIONS.—In this section, the terms ‘pro-
test’ and ‘interested party’ have the meanings given such 
terms in section 3551 of title 31.’’.
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 2305a the following new item:
‘‘2305b. Protests.’’.
(b) OTHER AGENCIES.—Title III of the Federal 
Property and Administrative Services Act of 1949 is 
amended by inserting after section 303M (41 U.S.C. 
253m) the following new section: 
‘‘SEC. 303N. PROTESTS.
‘‘(a) IN GENERAL.—An interested party may protest 
an acquisition of supplies or services by an executive agen-
cy based on an alleged violation of an acquisition law or 
regulation, and a decision regarding such alleged violation 
shall be made by the agency in accordance with this sec-
tion.
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‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING 
DECISION.—(1) Except as provided in paragraph (2), a 
contract may not be awarded by an agency after a protest 
concerning the acquisition has been submitted under this 
section and while the protest is pending. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize the award of 
the contract, notwithstanding a pending protest under this 
section, upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a 
decision on the protest. 
‘‘(c) RESTRICTION
ON CONTRACT PERFORMANCE 
PENDING DECISION.—(1) Except as provided in para-
graph (2), performance of a contract may not be author-
ized (and performance of the contract shall cease if per-
formance has already begun) in any case in which a pro-
test of the contract award is submitted under this section 
before the later of—
‘‘(A) the date that is 10 days after the date of 
contract award; or 
‘‘(B) the date that is five days after an agency 
debriefing date offered to an unsuccessful offeror for 
any debriefing that is requested and, when re-
quested, is required, under section 303B(e) of this 
title.
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‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize performance 
of the contract notwithstanding a pending protest under 
this section upon making a written finding that urgent 
and compelling circumstances do not allow for waiting for 
a decision on the protest. 
‘‘(d) DEADLINE FOR DECISION.—The head of an ex-
ecutive agency shall issue a decision on a protest under 
this section not later than the date that is 20 working 
days after the date on which the protest is submitted to 
the executive agency. 
‘‘(e) CONSTRUCTION.—Nothing in this section shall 
affect the right of an interested party to file a protest with 
the Comptroller General under subchapter V of chapter 
35 of title 31, United States Code, or in the United States 
Court of Federal Claims. 
‘‘(f) DEFINITIONS.—In this section, the terms ‘pro-
test’ and ‘interested party’ have the meanings given such 
terms in section 3551 of title 31, United States Code.’’. 
(c) CONFORMING AMENDMENT.—Section 3553(d)(4) 
of title 31, United States Code, is amended—
(1) in subparagraph (A), by striking ‘‘or’’ at 
the end; 
(2) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘; or’’; and
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(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) in the case of a protest of the same matter 
regarding such contract that is submitted under sec-
tion 2305b of title 10 or section 303N of the Fed-
eral Property and Administrative Services Act of 
1949, the date that is 5 days after the date on 
which a decision on that protest is issued.’’. 
SEC. 1428. IMPROVEMENTS IN CONTRACTING FOR ARCHI-
TECTURAL AND ENGINEERING SERVICES. 
(a) TITLE 10.—Section 2855(b) of title 10, United 
States Code, is amended—
(1) in paragraph (2), by striking ‘‘$85,000’’ 
and inserting ‘‘$300,000’’; and 
(2) by adding at the end the following new 
paragraph:
‘‘(4) The selection and competition requirements de-
scribed in subsection (a) shall apply to any contract for 
architectural and engineering services (including surveying 
and mapping services) that is entered into by the head 
of an agency (as such term is defined in section 2302 of 
this title).’’. 
(b) ARCHITECTURAL
AND
ENGINEERING
SERV-
ICES.—Architectural and engineering services (as defined 
in section 1102 of title 40, United States Code) shall not
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be offered under multiple-award schedule contracts en-
tered into by the Administrator of General Services or 
under Governmentwide task and delivery-order contracts 
entered into under sections 2304a and 2304b of title 10, 
United States Code, or sections 303H and 303I of the 
Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 253h and 253i) unless such services—
(1) are performed under the direct supervision 
of a professional engineer licensed in a State; and 
(2) are awarded in accordance with the selec-
tion procedures set forth in chapter 11 of title 40, 
United States Code. 
SEC. 1429. AUTHORIZATION OF TELECOMMUTING FOR FED-
ERAL CONTRACTORS. 
(a) AMENDMENT
TO
THE FEDERAL ACQUISITION 
REGULATION.—Not later than 180 days after the date of 
the enactment of this Act, the Federal Acquisition Regu-
latory Council shall amend the Federal Acquisition Regu-
lation issued in accordance with sections 6 and 25 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 405 
and 421) to permit telecommuting by employees of Fed-
eral Government contractors in the performance of con-
tracts entered into with executive agencies. 
(b) CONTENT
OF
AMENDMENT.—The regulation 
issued pursuant to subsection (a) shall, at a minimum,
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provide that solicitations for the acquisition of property 
or services may not set forth any requirement or evalua-
tion criteria that would—
(1) render an offeror ineligible to enter into a 
contract on the basis of the inclusion of a plan of 
the offeror to permit the offeror’s employees to tele-
commute; or 
(2) reduce the scoring of an offer on the basis 
of the inclusion in the offer of a plan of the offeror 
to permit the offeror’s employees to telecommute, 
unless the contracting officer concerned first—
(A) determines that the requirements of 
the agency, including the security requirements 
of the agency, cannot be met if the telecom-
muting is permitted; and 
(B) documents in writing the basis for that 
determination. 
(c) GAO REPORT.—Not later than one year after the 
date on which the regulation required by subsection (a) 
is published in the Federal Register, the Comptroller Gen-
eral shall submit to Congress—
(1) an evaluation of—
(A) the conformance of the regulations 
with law; and
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(B) the compliance by executive agencies 
with the regulations; and 
(2) any recommendations that the Comptroller 
General considers appropriate. 
(d) DEFINITION.—In this section, the term ‘‘execu-
tive agency’’ has the meaning given that term in section 
4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403). 
Subtitle C—Contract Incentives 
SEC. 1431. INCENTIVES FOR CONTRACT EFFICIENCY. 
(a) INCENTIVES FOR CONTRACT EFFICIENCY.—The 
Office of Federal Procurement Policy Act (41 U.S.C. 403 
et seq.) is amended by adding at the end the following 
new section: 
‘‘SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF 
SERVICES CONTRACTS. 
‘‘(a) OPTIONS FOR SERVICES CONTRACTS.—An op-
tion included in a contract for services to extend the con-
tract by one or more periods may provide that it be exer-
cised on the basis of exceptional performance by the con-
tractor. A contract that contains such an option provision 
shall include performance standards for measuring per-
formance under the contract, and to the maximum extent 
practicable be performance-based. Such option provision 
shall only be exercised in accordance with applicable provi-
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sions of law or regulation that set forth restrictions on 
the duration of the contract containing the option. 
‘‘(b) DEFINITION
OF
PERFORMANCE-BASED.—In 
this section, the term ‘performance-based’, with respect to 
a contract, task order, or contracting, means that the con-
tract, task order, or contracting, respectively, includes the 
use of performance work statements that set forth con-
tract requirements in clear, specific, and objective terms 
with measurable outcomes.’’. 
(b) CLERICAL AND TECHNICAL AMENDMENTS.—(1) 
The table of contents in section 1(b) of such Act is amend-
ed by striking the last item and inserting the following:
‘‘Sec. 40. Protection of constitutional rights of contractors. 
‘‘Sec. 41. Incentives for efficient performance of services contracts.’’.
(2) The section before section 41 of such Act (as 
added by subsection (a)) is redesignated as section 40. 
Subtitle D—Acquisitions of 
Commercial Items 
SEC. 1441. ADDITIONAL INCENTIVE FOR USE OF PERFORM-
ANCE-BASED CONTRACTING FOR SERVICES.
(a) OTHER CONTRACTS.—Section 41 of the Office of 
Federal Procurement Policy Act, as added by section 
1431, is amended—
(1) by redesignating subsection (b) as sub-
section (c); and
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(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) INCENTIVE FOR USE OF PERFORMANCE-BASED 
SERVICES CONTRACTS.—(1) A performance-based con-
tract for the procurement of services entered into by an 
executive agency or a performance-based task order for 
services issued by an executive agency may be treated as 
a contract for the procurement of commercial items if—
‘‘(A) the contract or task order sets forth spe-
cifically each task to be performed and, for each 
task—
‘‘(i) defines the task in measurable, mis-
sion-related terms; and 
‘‘(ii) identifies the specific end products or 
output to be achieved; and 
‘‘(B) the source of the services provides similar 
services to the general public under terms and condi-
tions similar to those offered to the Federal Govern-
ment. 
‘‘(2) The regulations implementing this subsection 
shall require agencies to collect and maintain reliable data 
sufficient to identify the contracts or task orders treated 
as contracts for commercial items using the authority of 
this subsection. The data may be collected using the Fed-
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eral Procurement Data System or other reporting mecha-
nism.
‘‘(3) Not later than two years after the date of the 
enactment of this subsection, the Director of the Office 
of Management and Budget shall prepare and submit to 
the Committees on Governmental Affairs and on Armed 
Services of the Senate and the Committees on Government 
Reform and on Armed Services of the House of Represent-
atives a report on the contracts or task orders treated as 
contracts for commercial items using the authority of this 
subsection. The report shall include data on the use of 
such authority both government-wide and for each depart-
ment and agency. 
‘‘(4) The authority under this subsection shall expire 
10 years after the date of the enactment of this sub-
section.’’. 
(b) CENTER
OF EXCELLENCE
IN SERVICE CON-
TRACTING.—Not later than 180 days after the date of the 
enactment of this Act, the Administrator for Federal Pro-
curement Policy shall establish a center of excellence in 
contracting for services. The center of excellence shall as-
sist the acquisition community by identifying, and serving 
as a clearinghouse for, best practices in contracting for 
services in the public and private sectors.
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(c) REPEAL
OF SUPERSEDED PROVISION.—Sub-
section (b) of section 821 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as en-
acted into law by Public Law 106–398; 114 Stat. 1654A–
218) is repealed. 
SEC. 1442. AUTHORIZATION OF ADDITIONAL COMMERCIAL 
CONTRACT TYPES. 
Section 8002(d) of the Federal Acquisition Stream-
lining Act of 1994 (Public Law 103–355; 108 Stat. 3387; 
41 U.S.C. 264 note) is amended—
(1) in paragraph (1), by striking ‘‘and’’; 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) authority for use of a time and materials 
contract or a labor-hour contract for the procure-
ment of commercial services that are commonly sold 
to the general public through such contracts.’’. 
SEC. 1443. CLARIFICATION OF COMMERCIAL SERVICES 
DEFINITION. 
Subparagraph (F) of section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12)(F)) 
is amended—
(1) by striking ‘‘catalog or’’; and
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(2) by inserting ‘‘or specific outcomes to be 
achieved’’ after ‘‘performed’’.
SEC. 1444. DESIGNATION OF COMMERCIAL BUSINESS ENTI-
TIES. 
(a) IN GENERAL.—Section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403), as amended by 
section 1411, is further amended—
(1) by adding at the end of paragraph (12) the 
following new subparagraph: 
‘‘(I) Items or services produced or provided 
by a commercial entity.’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(17) The term ‘commercial entity’ means any 
enterprise whose primary customers are other than 
the Federal Government. In order to qualify as a 
commercial entity, at least 90 percent (in dollars) of 
the sales of the enterprise over the past three busi-
ness years must have been made to private sector 
entities.’’. 
(b) COLLECTION
OF
DATA.—Regulations imple-
menting the amendments made by subsection (a) shall re-
quire agencies to collect and maintain reliable data suffi-
cient to identify the contracts entered into or task orders 
awarded for items or services produced or provided by a
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commercial entity. The data may be collected using the 
Federal Procurement Data System or other reporting 
mechanism. 
(c) OMB REPORT.—Not later than two years after 
the date of the enactment of this subsection, the Director 
of the Office of Management and Budget shall prepare 
and submit to the Committees on Governmental Affairs 
and on Armed Services of the Senate and the Committees 
on Government Reform and on Armed Services of the 
House of Representatives a report on the contracts en-
tered into or task orders awarded for items or services 
produced or provided by a commercial entity. The report 
shall include data on the use of such authority both gov-
ernment-wide and for each department and agency. 
(d) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the implementation of the 
amendments made by subsection (a) to evaluate the effec-
tiveness of such implementation in increasing the avail-
ability of items and services to the Federal Government 
at fair and reasonable prices.
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Subtitle E—Other Matters 
SEC. 1451. AUTHORITY TO ENTER INTO CERTAIN PROCURE-
MENT-RELATED 
TRANSACTIONS 
AND 
TO 
CARRY OUT CERTAIN PROTOTYPE PROJECTS. 
Title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by adding at the end the following new section:
‘‘SEC. 318. AUTHORITY TO ENTER INTO CERTAIN TRANS-
ACTIONS FOR DEFENSE AGAINST OR RECOV-
ERY FROM TERRORISM OR NUCLEAR, BIO-
LOGICAL, CHEMICAL, OR RADIOLOGICAL AT-
TACK. 
‘‘(a) AUTHORITY.—
‘‘(1) IN GENERAL.—The head of an executive 
agency who engages in basic research, applied re-
search, advanced research, and development projects 
that—
‘‘(A) are necessary to the responsibilities of 
such official’s executive agency in the field of 
research and development, and 
‘‘(B) have the potential to facilitate de-
fense against or recovery from terrorism or nu-
clear, biological, chemical, or radiological at-
tack,
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may exercise the same authority (subject to the 
same restrictions and conditions) with respect to 
such research and projects as the Secretary of De-
fense may exercise under section 2371 of title 10, 
United States Code, except for subsections (b) and 
(f) of such section 2371. 
‘‘(2) PROTOTYPE PROJECTS.—The head of an 
executive agency may, under the authority of para-
graph (1), carry out prototype projects that meet the 
requirements of subparagraphs (A) and (B) of para-
graph (1) in accordance with the requirements and 
conditions provided for carrying out prototype 
projects under section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 
103–160; 10 U.S.C. 2371 note). In applying the re-
quirements and conditions of that section 845—
‘‘(A) subsection (c) of that section shall 
apply with respect to prototype projects carried 
out under this paragraph; and 
‘‘(B) the Director of the Office of Manage-
ment and Budget shall perform the functions of 
the Secretary of Defense under subsection (d) 
of that section. 
‘‘(3) APPLICABILITY TO SELECTED EXECUTIVE 
AGENCIES.—
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‘‘(A) OMB AUTHORIZATION REQUIRED.—
The head of an executive agency may exercise 
authority under this subsection only if author-
ized by the Director of the Office of Manage-
ment and Budget to do so. 
‘‘(B) RELATIONSHIP
TO
AUTHORITY
OF 
DEPARTMENT OF HOMELAND SECURITY.—The 
authority under this subsection shall not apply 
to the Secretary of Homeland Security while 
section 831 of the Homeland Security Act of 
2002 (Public Law 107-296; 116 Stat. 2224) is 
in effect. 
‘‘(b) ANNUAL REPORT.—The annual report of the 
head of an executive agency that is required under sub-
section (h) of section 2371 of title 10, United States Code, 
as applied to the head of the executive agency by sub-
section (a), shall be submitted to the Committee on Gov-
ernmental Affairs of the Senate and the Committee on 
Government Reform of the House of Representatives. 
‘‘(c) REGULATIONS.—The Director of the Office of 
Management and Budget shall prescribe regulations to 
carry out this section.’’.
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SEC. 1452. AUTHORITY TO MAKE INFLATION ADJUSTMENTS 
TO SIMPLIFIED ACQUISITION THRESHOLD. 
Section 4(11) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(11)) is amended by inserting 
before the period at the end the following: ‘‘, except that 
such amount may be adjusted by the Administrator every 
five years to the amount equal to $100,000 in constant 
fiscal year 2003 dollars (rounded to the nearest 
$10,000)’’.
SEC. 1453. PROHIBITION ON USE OF QUOTAS. 
(a) IN GENERAL.—After the date of enactment of 
this Act, the Office of Management and Budget may not 
establish, apply, or enforce any numerical goal, target, or 
quota for subjecting the employees of a department or 
agency of the Government to public-private competitions 
or converting such employees or the work performed by 
such employees to contractor performance under Office of 
Management and Budget Circular A-76 or any other ad-
ministrative regulation, directive, or policy unless the goal, 
target, or quota is based on considered research and sound 
analysis of past activities and is consistent with the stated 
mission of the department or agency. 
(b) LIMITATIONS.—Subsection (a) shall not—
(1) otherwise affect the implementation or en-
forcement of the Government Performance and Re-
sults Act of 1993 (107 Stat. 285); or
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(2) prevent any agency of the Executive branch 
from subjecting work performed by Federal employ-
ees or private contractors to public-private competi-
tion or conversions. 
SEC. 1454. APPLICABILITY OF CERTAIN PROVISIONS TO 
SOLE SOURCE CONTRACTS FOR GOODS AND 
SERVICES TREATED AS COMMERCIAL ITEMS. 
(a) IN GENERAL.—No contract awarded on a sole 
source basis for the procurement of items or services that 
are treated as or deemed to be commercial items pursuant 
to the amendments made by section 1441, 1444, or 1457 
of this Act shall be exempt from—
(1) cost accounting standards promulgated pur-
suant to section 26 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 422); and 
(2) cost or pricing data requirements (com-
monly referred to as truth in negotiating) under sec-
tion 2306a of title 10, United States Code, and sec-
tion 304A of title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 
254b). 
(b) LIMITATION.—This section shall not apply to any 
contract in an amount not greater than $15,000,000.
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SEC. 1455. PUBLIC DISCLOSURE OF NONCOMPETITIVE CON-
TRACTING FOR THE RECONSTRUCTION OF 
INFRASTRUCTURE IN IRAQ. 
(a) DISCLOSURE REQUIRED.—
(1) PUBLICATION AND PUBLIC AVAILABILITY.—
The head of an executive agency of the United 
States that enters into a contract for the repair, 
maintenance, or construction of infrastructure in 
Iraq without full and open competition shall publish 
in the Federal Register or Commerce Business Daily 
and otherwise make available to the public, not later 
than 30 days after the date on which the contract 
is entered into, the following information: 
(A) The amount of the contract. 
(B) A brief description of the scope of the 
contract. 
(C) A discussion of how the executive 
agency identified, and solicited offers from, po-
tential contractors to perform the contract, to-
gether with a list of the potential contractors 
that were issued solicitations for the offers. 
(D) The justification and approval docu-
ments on which was based the determination to 
use procedures other than procedures that pro-
vide for full and open competition.
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(2) INAPPLICABILITY
TO
CONTRACTS
AFTER 
FISCAL YEAR 2013.—Paragraph (1) does not apply 
to a contract entered into after September 30, 2013. 
(b) CLASSIFIED INFORMATION.—
(1) AUTHORITY TO WITHHOLD.—The head of 
an executive agency may—
(A) withhold from publication and disclo-
sure under subsection (a) any document that is 
classified for restricted access in accordance 
with an Executive order in the interest of na-
tional defense or foreign policy; and 
(B) redact any part so classified that is in 
a document not so classified before publication 
and disclosure of the document under sub-
section (a). 
(2) AVAILABILITY TO CONGRESS.—In any case 
in which the head of an executive agency withholds 
information under paragraph (1), the head of such 
executive agency shall make available an unredacted 
version of the document containing that information 
to the chairman and ranking member of each of the 
following committees of Congress: 
(A) The Committee on Governmental Af-
fairs of the Senate and the Committee on Gov-
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ernment Reform of the House of Representa-
tives. 
(B) The Committees on Appropriations of 
the Senate and House of Representatives. 
(C) Each committee that the head of the 
executive agency determines has legislative ju-
risdiction for the operations of such department 
or agency to which the information relates. 
(c) FISCAL YEAR 2003 CONTRACTS.—This section 
shall apply to contracts entered into on or after October 
1, 2002, except that, in the case of a contract entered into 
before the date of the enactment of this Act, subsection 
(a) shall be applied as if the contract had been entered 
into on the date of the enactment of this Act. 
(d) RELATIONSHIP TO OTHER DISCLOSURE LAWS.—
Nothing in this section shall be construed as affecting obli-
gations to disclose United States Government information 
under any other provision of law. 
(e) DEFINITIONS.—In this section, the terms ‘‘execu-
tive agency’’ and ‘‘full and open competition’’ have the 
meanings given such terms in section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403).
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SEC. 1456. AMENDMENTS RELATING TO FEDERAL EMER-
GENCY PROCUREMENT FLEXIBILITY. 
(a) REPEAL OF SUNSET FOR AUTHORITIES APPLICA-
BLE TO PROCUREMENTS FOR DEFENSE AGAINST OR RE-
COVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, 
CHEMICAL, OR RADIOLOGICAL ATTACK.—Section 852 of 
the Homeland Security Act of 2002 (Public Law 107–296; 
116 Stat. 2235) is amended by striking ‘‘, but only if a 
solicitation of offers for the procurement is issued during 
the 1-year period beginning on the date of the enactment 
of this Act’’. 
(b) APPLICABILITY OF INCREASED SIMPLIFIED AC-
QUISITION THRESHOLD.—(1) The matter preceding para-
graph (1) of section 853(a) of the Homeland Security Act 
of 2002 (Public Law 107–296; 116 Stat. 2235) is amend-
ed to read as follows: 
‘‘(a) THRESHOLD AMOUNTS.—For a procurement re-
ferred to in section 852, the simplified acquisition thresh-
old referred to in section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11)) is deemed 
to be—’’. 
(2) Subsections (b) and (c) of section 853 of such 
Act are repealed. 
(3) The heading of section 853 of such Act is amend-
ed to read as follows:
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‘‘SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESH-
OLD FOR CERTAIN PROCUREMENTS.’’. 
(4) The table of contents in section 1(b) of such Act 
is amended by striking the item relating to section 853 
and inserting the following:
‘‘Sec. 853. Increased simplified acquisition threshold for certain procurements.’’.
(5) Section 18(c)(1) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 416(c)(1)) is amended—
(A) by striking ‘‘or’’ at the end of subpara-
graph (G); 
(B) by striking the period at the end of sub-
paragraph (H) and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(I) the procurement is by the head of an exec-
utive agency pursuant to the special procedures pro-
vided in section 853 of the Homeland Security Act 
of 2002 (Public Law 107–296).’’. 
(c) APPLICABILITY OF CERTAIN COMMERCIAL ITEMS 
AUTHORITIES.—(1) Subsection (a) of section 855 of the 
Homeland Security Act of 2002 (Public Law 107–296; 
116 Stat. 2236) is amended to read as follows: 
‘‘(a) AUTHORITY.—With respect to a procurement re-
ferred to in section 852, the head of an executive agency 
may deem any item or service to be a commercial item 
for the purpose of Federal procurement laws.’’.
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(2) Subsection (b)(1) of section 855 of such Act is 
amended by striking ‘‘to which any of the provisions of 
law referred to in subsection (a) are applied’’. 
(d) EXTENSION OF DEADLINE FOR REVIEW AND RE-
PORT.—Section 857(a) of the Homeland Security Act of 
2002 (Public Law 107–296; 116 Stat. 2237) is amended 
by striking ‘‘2004’’ and inserting ‘‘2006’’. 
TITLE XV—HIGHER EDUCATION 
RELIEF OPPORTUNITIES FOR 
STUDENTS 
SEC. 1501. SHORT TITLE; REFERENCE. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Higher Education Relief Opportunities for Students Act 
of 2003’’. 
(b) REFERENCE.—References in this title to ‘‘the 
Act’’ are references to the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.). 
SEC. 1502. WAIVER AUTHORITY FOR RESPONSE TO MILI-
TARY CONTINGENCIES AND NATIONAL EMER-
GENCIES. 
(a) WAIVERS AND MODIFICATIONS.—
(1) IN GENERAL.—Notwithstanding any other 
provision of law, unless enacted with specific ref-
erence to this section, the Secretary of Education 
(referred to in this title as the ‘‘Secretary’’) may
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waive or modify any statutory or regulatory provi-
sion applicable to the student financial assistance 
programs under title IV of the Act as the Secretary 
deems necessary in connection with a war or other 
military operation or national emergency to provide 
the waivers or modifications authorized by para-
graph (2). 
(2) ACTIONS AUTHORIZED.—The Secretary is 
authorized to waive or modify any provision de-
scribed in paragraph (1) as may be necessary to en-
sure that—
(A) recipients of student financial assist-
ance under title IV of the Act who are affected 
individuals are not placed in a worse position fi-
nancially in relation to that financial assistance 
because of their status as affected individuals; 
(B) administrative requirements placed on 
affected individuals who are recipients of stu-
dent financial assistance are minimized, to the 
extent possible without impairing the integrity 
of the student financial assistance programs, to 
ease the burden on such students and avoid in-
advertent, technical violations or defaults; 
(C) the calculation of ‘‘annual adjusted 
family income’’ and ‘‘available income’’, as used
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in the determination of need for student finan-
cial assistance under title IV of the Act for any 
such affected individual (and the determination 
of such need for his or her spouse and depend-
ents, if applicable), may be modified to mean 
the sums received in the first calendar year of 
the award year for which such determination is 
made, in order to reflect more accurately the fi-
nancial condition of such affected individual 
and his or her family; 
(D) 
the 
calculation 
under 
section 
484B(b)(2) of the Act (20 U.S.C. 1091b(b)(2)) 
of the amount a student is required to return 
in the case of an affected individual may be 
modified so that no overpayment will be re-
quired to be returned or repaid if the institution 
has documented (i) the student’s status as an 
affected individual in the student’s file, and (ii) 
the amount of any overpayment discharged; and 
(E) institutions of higher education, eligi-
ble lenders, guaranty agencies, and other enti-
ties participating in the student assistance pro-
grams under title IV of the Act that are located 
in areas that are declared disaster areas by any 
Federal, State or local official in connection
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with a national emergency, or whose operations 
are significantly affected by such a disaster, 
may be granted temporary relief from require-
ments that are rendered infeasible or unreason-
able by a national emergency, including due 
diligence requirements and reporting deadlines. 
(b) NOTICE OF WAIVERS OR MODIFICATIONS.—
(1) IN GENERAL.—Notwithstanding section 437 
of the General Education Provisions Act (20 U.S.C. 
1232) and section 553 of title 5, United States 
Code, the Secretary shall, by notice in the Federal 
Register, publish the waivers or modifications of 
statutory and regulatory provisions the Secretary 
deems necessary to achieve the purposes of this sec-
tion. 
(2) TERMS
AND
CONDITIONS.—The notice 
under paragraph (1) shall include the terms and
conditions to be applied in lieu of such statutory and 
regulatory provisions. 
(3) CASE-BY-CASE BASIS.—The Secretary is not 
required to exercise the waiver or modification au-
thority under this section on a case-by-case basis. 
(c) IMPACT REPORT.—The Secretary shall, not later 
than 15 months after first exercising any authority to 
issue a waiver or modification under subsection (a), report
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to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor and Pensions of the Senate on the im-
pact of any waivers or modifications issued pursuant to 
subsection (a) on affected individuals and the programs 
under title IV of the Act, and the basis for such deter-
mination, and include in such report the Secretary’s rec-
ommendations for changes to the statutory or regulatory 
provisions that were the subject of such waiver or modi-
fication. 
(d) NO DELAY IN WAIVERS AND MODIFICATIONS.—
Sections 482(c) and 492 of the Higher Education Act of 
1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the 
waivers and modifications authorized or required by this 
title. 
SEC. 1503. TUITION REFUNDS OR CREDITS FOR MEMBERS 
OF ARMED FORCES. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
(1) all institutions offering postsecondary edu-
cation should provide a full refund to students who 
are affected individuals for that portion of a period 
of instruction such student was unable to complete, 
or for which such individual did not receive academic
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credit, because he or she was called up for active 
duty or active service; and 
(2) if affected individuals withdraw from a 
course of study as a result of such active duty or ac-
tive service, such institutions should make every ef-
fort to minimize deferral of enrollment or reapplica-
tion requirements and should provide the greatest 
flexibility possible with administrative deadlines re-
lated to those applications. 
(b) DEFINITION OF FULL REFUND.—For purposes 
of this section, a full refund includes a refund of required 
tuition and fees, or a credit in a comparable amount 
against future tuition and fees. 
SEC. 1504. USE OF PROFESSIONAL JUDGMENT. 
A financial aid administrator shall be considered to 
be making a necessary adjustment in accordance with sec-
tion 479A(a) of the Act if the administrator makes adjust-
ments with respect to the calculation of the expected stu-
dent or parent contribution (or both) of an affected indi-
vidual, and adequately documents the need for the adjust-
ment. 
SEC. 1505. DEFINITIONS. 
In this title: 
(1) ACTIVE DUTY.—The term ‘‘active duty’’ has 
the meaning given such term in section 101(d)(1) of
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title 10, United States Code, except that such term 
does not include active duty for training or attend-
ance at a service school. 
(2) AFFECTED
INDIVIDUAL.—The term ‘‘af-
fected individual’’ means an individual who—
(A) is serving on active duty during a war 
or other military operation or national emer-
gency; 
(B) is performing qualifying National 
Guard duty during a war or other military op-
eration or national emergency; 
(C) resides or is employed in an area that 
is declared a disaster area by any Federal, 
State, or local official in connection with a na-
tional emergency; or 
(D) suffered direct economic hardship as a 
direct result of a war or other military oper-
ation or national emergency, as determined by 
the Secretary. 
(3) MILITARY OPERATION.—The term ‘‘military 
operation’’ means a contingency operation as such 
term is defined in section 101(a)(13) of title 10, 
United States Code.
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(4) NATIONAL
EMERGENCY.—The term ‘‘na-
tional emergency’’ means a national emergency de-
clared by the President of the United States. 
(5) SERVING
ON
ACTIVE
DUTY.—The term 
‘‘serving on active duty during a war or other mili-
tary operation or national emergency’’ shall include 
service by an individual who is—
(A) a Reserve of an Armed Force ordered 
to 
active 
duty 
under 
section 
12301(a), 
12301(g), 12302, 12304, or 12306 of title 10, 
United States Code, or any retired member of 
an Armed Force ordered to active duty under 
section 688 of such title, for service in connec-
tion with a war or other military operation or 
national emergency, regardless of the location 
at which such active duty service is performed; 
and 
(B) any other member of an Armed Force 
on active duty in connection with such war, op-
eration, or emergency or subsequent actions or 
conditions who has been assigned to a duty sta-
tion at a location other than the location at 
which such member is normally assigned. 
(6) QUALIFYING NATIONAL GUARD DUTY.—The 
term ‘‘qualifying National Guard duty during a war
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or other military operation or national emergency’’ 
means service as a member of the National Guard 
on full-time National Guard duty (as defined in sec-
tion 101(d)(5) of title 10, United States Code) 
under a call to active service authorized by the 
President or the Secretary of Defense for a period 
of more than 30 consecutive days under section 
502(f) of title 32, United States Code, in connection 
with a war, another military operation, or a national 
emergency declared by the President and supported 
by Federal funds. 
SEC. 1506. TERMINATION OF AUTHORITY. 
The provisions of this title shall cease to be effective 
at the close of September 30, 2005.
DIVISION 
B—MILITARY 
CON-
STRUCTION 
AUTHORIZA-
TIONS 
SEC. 2001. SHORT TITLE. 
This division may be cited as the ‘‘Military Construc-
tion Authorization Act for Fiscal Year 2004’’.
TITLE XXI—ARMY
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
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tions in section 2104(a)(1), the Secretary of the Army 
may acquire real property and carry out military construc-
tion projects for the installations and locations inside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Army: Inside the United States 
State 
Installation or location 
Amount 
Alabama ..............................
Redstone Arsenal .........................
$5,500,000
Alaska .................................
Fort Wainwright ..........................
$138,800,000
California ............................
Fort Irwin ....................................
$3,350,000
Colorado ..............................
Fort Carson .................................
$2,150,000
Georgia ................................
Fort Benning ...............................
$34,500,000
Fort Stewart/Hunter Army Air 
Field .........................................
$138,550,000
Hawaii .................................
Helemano Military Reservation ...
$1,400,000
Schofield Barracks .......................
$128,100,000
Kansas ................................
Fort Leavenworth ........................
$115,000,000
Fort Riley .....................................
$40,000,000
Kentucky .............................
Fort Knox ....................................
$5,500,000
Louisiana ............................
Fort Polk .....................................
$72,000,000
Maryland .............................
Fort Meade ..................................
$9,600,000
Massachusetts .....................
Soldier Systems Center, Natick ...
$5,500,000
Missouri ..............................
Fort Leonard Wood .....................
$5,900,000
New Jersey ..........................
Naval Air Engineering Center, 
Lakehurst .................................
$2,250,000
Picatinny Arsenal .........................
$11,800,000
New York ............................
Fort Drum ...................................
$139,300,000
North Carolina ....................
Fort Bragg ...................................
$163,400,000
Oklahoma ............................
Fort Sill .......................................
$5,500,000
Texas ...................................
Fort Bliss .....................................
$5,400,000
Fort Hood ....................................
$56,700,000
Virginia ...............................
Fort Belvoir .................................
$7,000,000
Fort Lee .......................................
$3,850,000
Fort Myer ....................................
$9,000,000
Washington .........................
Fort Lewis ...................................
$3,900,000
Total .....................................
$1,108,500,000 
(b) OUTSIDE THE UNITED STATES.—Subject to sub-
section (c), using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and 
carry out military construction projects for the installa-
tions and locations outside the United States, and in the 
amounts, set forth in the following table:
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Army: Outside the United States 
Country 
Installation or location 
Amount 
Germany ...............................
Grafenwoehr ....................................
$76,000,000
Heidelberg .......................................
$17,000,000
Hohenfels ........................................
$13,200,000
Vilseck .............................................
$31,000,000
Italy ......................................
Aviano Air Base ..............................
$28,500,000
Livorno ............................................
$22,000,000
Korea ....................................
Camp Humphreys ...........................
$191,150,000
Kwajalein ..............................
Kwajalein ........................................
$9,400,000
Total ...............................................
$388,250,000 
(c) CONDITION
ON PROJECTS AUTHORIZATION.—
The authority of the Secretary of the Army to proceed 
with the projects at Camp Humphreys, Korea, referred to 
in the table in subsection (b), and to obligate amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2104(a)(2) in connection with such project, is 
subject to the condition that the Secretary submit to the 
congressional defense committees written notice in ad-
vance that the United States and the Republic of Korea 
have entered into an agreement to ensure the availability 
and use of land sufficient for such projects. 
SEC. 2102. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2104(a)(5)(A), the Secretary of the 
Army may construct or acquire family housing units (in-
cluding land acquisition and supporting facilities) at the 
installations, for the purposes, and in the amounts set 
forth in the following table:
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Army: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
Alaska ...........................
Fort Wainwright ...............
140 Units ....
$64,000,000
Arizona .........................
Fort Huachuca ..................
220 Units ....
$41,000,000
Kansas ..........................
Fort Riley ..........................
62 Units ......
$16,700,000
Kentucky .......................
Fort Knox .........................
178 Units ....
$41,000,000
New Mexico ..................
White Sands Missile Range 
58 Units ......
$14,600,000
Oklahoma ......................
Fort Sill .............................
120 Units ....
$25,373,000
Virginia .........................
Fort Lee ............................
90 Units ......
$18,000,000
Total: ...
$220,673,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may 
carry out architectural and engineering services and con-
struction design activities with respect to the construction 
or improvement of family housing units in an amount not 
to exceed $34,488,000. 
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States 
Code, and using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(5)(A), 
the Secretary of the Army may improve existing military 
family housing units in an amount not to exceed 
$156,030,000. 
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY. 
(a) IN GENERAL.—Funds are hereby authorized to 
be appropriated for fiscal years beginning after September 
30, 2003, for military construction, land acquisition, and
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military family housing functions of the Department of the 
Army in the total amount of $3,056,697,000, as follows: 
(1) For military construction projects inside the 
United States authorized by section 2101(a), 
$902,000,000. 
(2) For military construction projects outside 
the United States authorized by section 2101(b), 
$359,350,000. 
(3) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $22,550,000. 
(4) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $128,580,000. 
(5) For military family housing functions: 
(A) For construction and acquisition, plan-
ning and design, and improvement of military 
family housing and facilities, $409,191,000. 
(B) For support of military family housing 
(including the functions described in section 
2833 of title 10, United States Code), 
$1,043,026,000. 
(6) For the construction of phase 3 of a bar-
racks complex, D Street, at Fort Richardson, Alas-
ka, authorized by section 2101(a) of the Military
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Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107–107; 115 Stat. 
1280), as amended by section 2105 of this Act, 
$33,000,000. 
(7) For the construction of phase 3 of a bar-
racks complex, 17th and B Streets, at Fort Lewis, 
Washington, authorized by section 2101(a) of the 
Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107–107; 115 
Stat. 1280), $48,000,000. 
(8) For the construction of phase 2 of a bar-
racks complex, Capron Road, at Schofield Barracks, 
Hawaii, authorized by section 2101(a) of the Mili-
tary Construction Authorization Act for Fiscal Year 
2003 (division B of Public Law 107–314; 116 Stat. 
2681), $49,000,000. 
(9) For the construction of phase 2 of a bar-
racks complex, Range Road, at Fort Campbell, Ken-
tucky, authorized by section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2003 
(division B of Public Law 107–314; 116 Stat. 
2681), $49,000,000. 
(10) For the construction of phase 2 of a con-
solidated maintenance complex at Fort Sill, Okla-
homa, authorized by section 2101(a) of the Military
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Construction Authorization Act for Fiscal Year 2003 
(division B of Public Law 107–314; 116 Stat. 
2681), $13,000,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and 
any other cost variation authorized by law, the total cost 
of all projects carried out under section 2101 of this Act 
may not exceed the sum of the following: 
(1) The total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection 
(a). 
(2) $32,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
barracks, Fort Stewart/Hunter Army Airfield, Geor-
gia). 
(3) $87,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of 
the Lewis and Clark Instructional Facility, Fort 
Leavenworth, Kansas). 
(4) $43,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
barracks complex, Wheeler Army Airfield, Fort 
Drum, New York).
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(5) $50,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
barracks complex, Bastogne Drive, Fort Bragg, 
North Carolina). 
(6) $18,900,000 (the balance of the amount au-
thorized under section 2101(b) for construction of a 
barracks complex, Vilseck, Germany).
SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT 
CERTAIN FISCAL YEAR 2002 PROJECTS. 
(a) MODIFICATION.—The table in section 2101(a) of 
the Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107–107; 115 Stat. 
1281), as amended by section 2105 of the Military Con-
struction Authorization Act for Fiscal Year 2003 (division 
B of Public Law 107–314; 116 Stat. 2689), is further 
amended—
(1) in the item relating to Fort Richardson, 
Alaska, by striking ‘‘$115,000,000’’ in the amount 
column and inserting ‘‘$117,000,000’’; and 
(2) by striking the amount identified as the 
total 
in 
the 
amount 
column 
and 
inserting 
‘‘$1,364,750,000’’. 
(b) CONFORMING AMENDMENT.—Section 2104(b)(2) 
of that Act (115 Stat. 1284) is amended by striking 
‘‘$52,000,000’’ and inserting ‘‘$54,000,000’’.
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TITLE XXII—NAVY 
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(1), the Secretary of the Navy may 
acquire real property and carry out military construction 
projects for the installations and locations inside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Navy: Inside the United States 
State 
Installation or location 
Amount 
Arizona ..........................
Marine Corps Air Station, Yuma ...........
$22,230,000
California ......................
Marine Corps Air-Ground Task Force 
Training Center, Twentynine Palms ..
$42,090,000
Marine Corps Air Station, Miramar ......
$7,640,000
Marine Corps Base, Camp Pendleton ....
$73,580,000
Naval Air Facility, San Clemente Island 
$18,940,000
Naval Air Station, Lemoore ...................
$34,510,000
Naval Air Station, North Island ............
$49,240,000
Naval Air Warfare Center, China Lake
$12,230,000
Naval Air Warfare Center, Point Mugu, 
San Nicholas Island ............................
$6,150,000
Naval Postgraduate School, Monterey ...
$42,560,000
Naval Station, San Diego .......................
$49,710,000
Connecticut ...................
Naval Submarine Base, New London ....
$3,120,000
District of Columbia .....
Marine Corps Barracks ..........................
$1,550,000
Florida ..........................
Blount Island (Jacksonville) ..................
$115,711,000
Naval Air Station, Jacksonville ..............
$9,190,000
Naval Air Station, Whiting Field, Milton 
$4,830,000
Naval Surface Warfare Center, Coastal 
Systems Station, Panama City ...........
$9,550,000
Georgia ..........................
Strategic Weapons Facility Atlantic, 
Kings Bay ...........................................
$11,510,000
Hawaii ...........................
Fleet and Industrial Supply Center, 
Pearl Harbor ......................................
$32,180,000
Naval Magazine, Lualualei .....................
$6,320,000
Naval Shipyard, Pearl Harbor ...............
$7,010,000
Illinois ...........................
Naval Training Center, Great Lakes .....
$137,120,000
Indiana ..........................
Naval Surface Warfare Center, Crane ...
$11,400,000
Maryland .......................
Naval Air Warfare Center, Patuxent 
River ...................................................
$28,270,000
Naval Surface Warfare Center, Indian 
Head ...................................................
$14,850,000
Mississippi .....................
Naval Air Station, Meridian ...................
$4,570,000
Naval Station, Pascagoula .....................
$6,100,000
Nevada ..........................
Naval Air Station, Fallon .......................
$4,700,000
New Jersey ....................
Naval Air Warfare Center, Lakehurst ...
$20,681,000
Naval Weapons Station, Earle ...............
$123,720,000
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Navy: Inside the United States—Continued
State 
Installation or location 
Amount 
North Carolina ..............
Marine Corps Air Station, New River ....
$6,240,000
Marine Corps Base, Camp Lejeune .......
$29,450,000
Rhode Island .................
Naval Station, Newport ..........................
$16,140,000
Naval Undersea Warfare Center, New-
port .....................................................
$10,890,000
South Carolina ..............
Naval Weapons Station, Charleston .......
$2,350,000
Texas .............................
Naval Air Station, Corpus Christi ..........
$5,400,000
Virginia .........................
Henderson Hall, Arlington .....................
$1,970,000
Marine Corps Combat Development 
Command, Quantico ...........................
$3,700,000
Naval Air Station, Oceana .....................
$10,000,000
Naval Amphibious Base, Little Creek ....
$3,810,000
Naval Space Command Center, Dahl-
gren .....................................................
$24,020,000
Naval Station, Norfolk ...........................
$182,240,000
Norfolk Naval Shipyard, Portsmouth ....
$17,770,000
Washington ...................
Naval Air Station, Whidbey Island ........
$4,350,000
Naval Magazine, Indian Island ..............
$2,240,000
Naval Shipyard, Puget Sound ................
$12,120,000
Naval Submarine Base, Bangor .............
$33,820,000
Strategic Weapons Facility Pacific, Ban-
gor .......................................................
$6,530,000
Various Locations .........
Various Locations, CONUS ...................
$56,360,000
Total ...............................................
$1,340,662,000
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(2), the Secretary of the Navy may 
acquire real property and carry out military construction 
projects for the locations outside the United States, and 
in the amounts, set forth in the following table:
Navy: Outside the United States 
Country 
Installation or location 
Amount 
Bahrain ..........................
Naval Support Activity, Bahrain ............
$18,030,000
Guam ..............................
Commander, 
United 
States 
Naval 
Forces, Marianas .................................
$1,700,000
Italy ................................
Naval Air Station, Sigonella ...................
$48,749,000
Naval Support Activity, La Maddalena ..
$39,020,000
United Kingdom .............
Joint Maritime Facility, St. Mawgan ......
$7,070,000
Total ................................................
$114,569,000
SEC. 2202. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
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propriations in section 2204(a)(5)(A), the Secretary of the 
Navy may construct or acquire family housing units (in-
cluding land acquisition and supporting facilities) at the 
installations, for the purposes, and in the amounts set 
forth in the following table:
Navy: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
California ......................
Naval Air Station, 
Lemoore .........................
187 Units ....
$41,585,000
Florida ..........................
Naval Air Station, Pensa-
cola ................................
25 Units ......
$4,447,000
North Carolina .............
Marine Corps Air Station, 
Cherry Point ..................
339 Units ....
42,803,000
Marine Corps Base, Camp 
Lejeune ..........................
519 Units ....
$68,531,000
Total ....
$157,366,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriation in 
section 2204(a)(5)(A), the Secretary of the Navy may 
carry out architectural and engineering services and con-
struction design activities with respect to the construction 
or improvement of military family housing units in an 
amount not to exceed $8,381,000. 
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States 
Code, and using amounts appropriated pursuant to the 
authorization of appropriations in section 2204(a)(5)(A), 
the Secretary of the Navy may improve existing military 
family housing units in an amount not to exceed 
$20,446,000.
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SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY. 
(a) IN GENERAL.—Funds are hereby authorized to 
be appropriated for fiscal years beginning after September 
30, 2003, for military construction, land acquisition, and 
military family housing functions of the Department of the 
Navy in the total amount of $2,288,917,000, as follows: 
(1) For military construction projects inside the 
United States authorized by section 2201(a), 
$1,005,882,000. 
(2) For military construction projects outside 
the United States authorized by section 2201(b), 
$114,569,000. 
(3) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $13,624,000. 
(4) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $71,141,000. 
(5) For military family housing functions: 
(A) For construction and acquisition, plan-
ning and design, and improvement of military 
family housing and facilities, $184,193,000. 
(B) For support of military family housing 
(including functions described in section 2833 
of title 10, United States Code), $852,778,000.
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(6) For construction of a bachelors enlisted 
quarters shipboard ashore at Naval Shipyard Nor-
folk, Virginia, authorized by section 2201(a) of the 
Military Construction Authorization Act for Fiscal 
Year 2003 (division B of Public Law 107-314; 116 
Stat. 2687), $46,730,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and 
any other cost variation authorized by law, the total cost 
of all projects carried out under section 2201 of this Act 
may not exceed the sum of the following: 
(1) The total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection 
(a). 
(2) $25,690,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
tertiary sewage treatment facility, Marine Corp 
Base, Camp Pendleton, California). 
(3) $58,190,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
battle station training facility, Naval Training Cen-
ter, Great Lakes, Illinois). 
(4) $96,980,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a
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general purpose berthing pier, Naval Weapons Sta-
tion Earle, New Jersey). 
(5) $118,170,000 (the balance of the amount 
authorized under section 2101(a) for construction of 
the Pier 11 replacement, Naval Station, Norfolk, 
Virginia). 
(6) $28,750,000 (the balance of the amount au-
thorized under section 2101(a) for construction of 
outlying landing field facilities, various locations in 
the continental United States).
TITLE XXIII—AIR FORCE
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND 
LAND ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2304(a)(1), the Secretary of the Air Force 
may acquire real property and carry out military construc-
tion projects for the installations and locations inside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Air Force: Inside the United States 
State 
Installation or location 
Amount 
Alabama ................................
Maxwell Air Force Base ...................
$26,000,000
Alaska ...................................
Eielson Air Force Base ....................
$33,261,000
Elmendorf Air Force Base ...............
$2,000,000
Arizona ..................................
Davis-Monthan Air Force Base ........
$10,062,000
Arkansas ...............................
Little Rock Air Force Base ..............
$7,445,000
California ..............................
Beale Air Force Base .......................
$22,750,000
Edwards Air Force Base ..................
$26,744,000
Vandenberg Air Force Base .............
$16,500,000
Colorado ................................
Buckley Air Force Base ...................
$7,019,000
District of Columbia .............
Bolling Air Force Base .....................
$9,300,000
Florida ..................................
Hurlburt Field ..................................
$27,200,000
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Air Force: Inside the United States—Continued
State 
Installation or location 
Amount 
Tyndall Air Force Base ....................
$20,720,000
Georgia ..................................
Robins Air Force Base .....................
$37,164,000
Hawaii ...................................
Hickam Air Force Base ...................
$73,296,000
Idaho .....................................
Mountain Home Air Force Base ......
$5,445,000
Illinois ...................................
Scott Air Force Base ........................
$1,900,000
Mississippi .............................
Columbus Air Force Base ................
$2,200,000
Keesler Air Force Base ....................
$2,900,000
Missouri .................................
Whiteman Air Force Base ................
$11,600,000
New Jersey ............................
McGuire Air Force Base ..................
$11,861,000
New Mexico ...........................
Kirtland Air Force Base ..................
$11,247,000
Tularosa Radar Test Site .................
$3,600,000
North Carolina ......................
Pope Air Force Base ........................
$24,499,000
Seymour Johnson Air Force Base ...
$23,022,000
North Dakota ........................
Minot Air Force Base .......................
$3,190,000
Ohio .......................................
Wright-Patterson Air Force Base ....
$21,100,000
Oklahoma ..............................
Altus Air Force Base .......................
$1,167,000
Tinker Air Force Base .....................
$19,444,000
South Carolina ......................
Charleston Air Force Base ...............
$9,042,000
Shaw Air Force Base .......................
$8,500,000
Texas .....................................
Goodfellow Air Force Base ...............
$20,335,000
Lackland Air Force Base .................
$57,360,000
Laughlin Air Force Base ..................
$12,400,000
Sheppard Air Force Base .................
$38,167,000
Utah ......................................
Hill Air Force Base ..........................
$15,848,000
Virginia .................................
Langley Air Force Base ...................
$25,474,000
Washington ...........................
McChord Air Force Base .................
$19,000,000
Total .................................................
$668,762,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2304(a)(2), the Secretary of the Air Force 
may acquire real property and carry out military construc-
tion projects for the installations and locations outside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Air Force: Outside the United States 
Country 
Installation or location 
Amount 
Germany ................................
Ramstein Air Base ...........................
$41,866,000
Spangdahlem Air Base .....................
$5,411,000
Italy .......................................
Aviano Air Base ...............................
$14,025,000
Korea .....................................
Kunsan Air Base ..............................
$7,059,000
Osan Air Base ..................................
$16,638,000
Portugal ................................
Lajes Field, Azores ...........................
$4,086,000
Turkey ...................................
Incirlik Air Base ...............................
$3,262,000
United Kingdom ....................
Royal Air Force, Lakenheath ...........
$42,487,000
Royal Air Force, Mildenhall .............
$10,558,000
Wake Island ..........................
Wake Island ......................................
$24,000,000
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Air Force: Outside the United States—Continued
Country 
Installation or location 
Amount 
Total .........................................
$169,392,000
(c) UNSPECIFIED WORLDWIDE.—Using amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2304(a)(3), the Secretary of the Air Force may 
acquire real property and carry out military construction 
projects for the installation and location, and in the 
amount, set forth in the following table:
Air Force: Unspecified Worldwide 
Location 
Installation or location 
Amount 
Unspecified Worldwide ..........
Classified Location ...........................
$29,501,000
Total .........................................
$29,501,000
SEC. 2302. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2304(a)(6)(A), the Secretary of the 
Air Force may construct or acquire family housing units 
(including land acquisition and supporting facilities) at the 
installations, for the purposes, and in the amounts set 
forth in the following table:
Air Force: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
Arizona .........................
Davis-Monthan Air Force 
Base ...............................
93 Units ......
$19,357,000
California ......................
Travis Air Force Base ......
56 Units ......
$12,723,000
Delaware .......................
Dover Air Force Base .......
112 Units ....
$19,601,000
Florida ..........................
Eglin Air Force Base ........
279 Units ....
$32,166,000
Idaho .............................
Mountain Home Air Force 
Base ...............................
186 Units ....
$37,126,000
Maryland ......................
Andrews Air Force Base ...
50 Units ......
$20,233,000
Missouri ........................
Whiteman Air Force Base 
100 Units ....
$18,221,000
Montana ........................
Malmstrom Air Force Base 
94 Units ......
$19,368,000
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Air Force: Family Housing—Continued
State or Country 
Installation or location 
Purpose 
Amount 
North Carolina .............
Seymour Johnson Air 
Force Base ....................
138 Units ....
$18,336,000
North Dakota ...............
Grand Forks Air Force 
Base ...............................
144 Units ....
$29,550,000
Minot Air Force Base .......
200 Units ....
$41,117,000
South Dakota ...............
Ellsworth Air Force Base
75 Units ......
$16,240,000
Texas ............................
Dyess Air Force Base .......
116 Units ....
$19,973,000
Randolph Air Force Base
96 Units ......
$13,754,000
Korea ............................
Osan Air Base ...................
111 Units ....
$44,765,000
Portugal ........................
Lajes Field, Azores ...........
42 Units ......
$13,428,000
United Kingdom ...........
Royal Air Force, 
Lakenheath ....................
89 Units ......
$23,640,000
Total ....
$399,598,000 
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may 
carry out architectural and engineering services and con-
struction design activities with respect to the construction 
or improvement of military family housing units in an 
amount not to exceed $33,488,000. 
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States 
Code, and using amounts appropriated pursuant to the 
authorization of appropriations in section 2304(a)(6)(A), 
the Secretary of the Air Force may improve existing mili-
tary family housing units in an amount not to exceed 
$227,979,000.
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SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR 
FORCE. 
(a) IN GENERAL.—Funds are hereby authorized to 
be appropriated for fiscal years beginning after September 
30, 2003, for military construction, land acquisition, and 
military family housing functions of the Department of the 
Air Force in the total amount of $2,477,609,000, as fol-
lows: 
(1) For military construction projects inside the 
United States authorized by section 2301(a), 
$660,282,000. 
(2) For military construction projects outside 
the United States authorized by section 2301(b), 
$169,392,000. 
(3) For military construction projects at un-
specified worldwide locations authorized by section 
2301(c), $28,981,000. 
(4) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $12,000,000. 
(5) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $115,421,000. 
(6) For military housing functions: