(5) the Congress fully supports efforts by the De-
partment of Defense to continue development, testing, 
and fielding of an effective, integrated, robust, layered 
ballistic missile defense system that is capable of 
intercepting ballistic missiles as described in para-
graph (1) in various phases of flight; 
(6) a layered defense requires fielding compo-
nents on land and sea, space-based and other sensors, 
along with the command and control capability that 
ties the various components together; and 
(7) it is in the national security interest of the 
United States to continue development, testing, and 
operations of the United States ballistic missile de-
fense system to hedge against uncertainty in the de-
velopment, test, and fielding of ballistic missile capa-
bilities by rogue nations. 
Subtitle D—Other Matters 
SEC. 231. RESPONSIBILITY FOR HUMAN SYSTEMS INTEGRA-
TION ACTIVITIES. 
(a) IN GENERAL.—The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall coordinate and manage 
human systems integration activities throughout the acqui-
sition programs of the Department of Defense. 
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(b) ADMINISTRATION.—In carrying out subsection (a), 
the Secretary shall— 
(1) designate a senior official to be responsible 
for the effort; and 
(2) supervise the planning, management, and co-
ordination of such activities. 
(c) RESPONSIBILITIES.—In carrying out this section, 
the Secretary shall— 
(1) develop a Department of Defense Instruction, 
and as necessary a Department of Defense Directive, 
specific to human systems integration activities; and 
(2) identify and recommend, as appropriate, re-
source requirements for human systems integration 
activities. 
(d) DESIGNATION.—The designation required by sub-
section (b)(2) shall be made not later than 60 days after 
the date of the enactment of this Act. 
SEC. 232. EXPANSION OF AUTHORITY FOR ENCOURAGE-
MENT OF TECHNOLOGY TRANSFER. 
Section 2514(c) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing: 
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‘‘(3)(A) Under the Program, the defense laboratories 
and research centers may, through leases, contracts, or other 
appropriate arrangements, provide facilities, services, and 
equipment to private industry in order to promote acceler-
ated development of critical technologies and technology 
transfer initiatives that support the Department of Defense. 
‘‘(B) The facilities, services, and equipment provided 
under this paragraph shall be provided on a non-inter-
ference basis. 
‘‘(C) The defense laboratory or research center— 
‘‘(i) shall charge, accept, and retain fees in 
amounts necessary to recover the full costs of the fa-
cilities, services, and equipment provided, including 
capital improvement costs, utility and service costs, 
and equipment depreciation costs; and 
‘‘(ii) may charge, accept, and retain fees for pro-
viding the facilities, services, and equipment. 
‘‘(D) The defense laboratory or research center may ac-
cept payment in cash or in kind for fees charged under sub-
paragraph (C). 
‘‘(E) Fees accepted under subparagraph (C) shall be 
credited to the account that was used to cover the costs for 
which the payment was provided. Amounts so credited shall 
be merged with amounts in that account, and shall be avail-
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able for the same purposes, and subject to the same condi-
tions and limitations, as other amounts in that account.’’. 
SEC. 233. ARMY VENTURE CAPITAL FUND DEMONSTRATION. 
(a) IN GENERAL.—Of the amounts appropriated pur-
suant to the authorization of appropriations in section 
201(1) or otherwise made available for research, develop-
ment, test, and evaluation, Army, $10,000,000 is available 
for the Army Venture Capital Fund demonstration, to be 
used only for investment in renewable energy technologies. 
(b) DEFINITION.—For purposes of this section, the 
Army Venture Capital Fund demonstration is the program 
for which funds were initially provided in section 8150 of 
the Department of Defense Appropriations Act, 2002 (divi-
sion A of Public Law 107-117; 115 Stat. 2281), as extended 
and revised in section 8105 of Department of Defense Ap-
propriations Act, 2003 (Public Law 107-248; 116 Stat. 
1562). 
SEC. 234. INDEPENDENT TESTS FOR COMBAT HELMET PAD 
SUSPENSION SYSTEMS. 
(a) IN GENERAL.—From amounts made available pur-
suant to the authorization of appropriations in section 
201(4) for research, development, test, and evaluation, De-
fense-wide, the Secretary of Defense shall carry out a test 
and evaluation of combat helmet pad suspension systems. 
The test and evaluation shall be carried out using verified 
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product representative samples from the five producers of 
combat helmet pad suspension systems that are qualified 
as of the date of the enactment of this Act. The test and 
evaluation shall include an operational assessment of the 
pad suspension systems, including a field user evaluation. 
(b) INDEPENDENT LABORATORY.—The test and eval-
uation shall be carried out in an objective and transparent 
manner by a certified and qualified laboratory that is inde-
pendent of the Federal Government. 
(c) REPORT.—Not later than September 30, 2008, the 
Secretary shall submit to the congressional defense commit-
tees a report on the results of the test and evaluation. 
SEC. 235. REPORT ON IMPLEMENTATION OF MANUFAC-
TURING TECHNOLOGY PROGRAM. 
(a) REPORT REQUIRED.—Not later than March 1, 
2008, the Secretary of Defense shall submit to the Com-
mittee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report 
on the implementation of the technologies and processes de-
veloped under the Manufacturing Technology Program re-
quired by section 2521 of title 10, United States Code. 
(b) ELEMENTS.—The report shall identify each tech-
nology or process implemented and, for each such technology 
or process, shall identify— 
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(1) the project of the Manufacturing Technology 
Program through which the technology or process was 
developed, the Federal and non-Federal participants 
in that project, and the duration of the project; 
(2) the organization or program implementing 
the technology or process, and the type of implementa-
tion; 
(3) the total Federal funding required to imple-
ment the technology or process, including— 
(A) funds provided by military departments 
and Defense Agencies under the Manufacturing 
Technology Program; 
(B) funds provided by the Department of 
Defense, or any element of the Department, to co- 
develop the technology or process; 
(C) to the maximum extent possible, funds 
provided by the Department of Defense, or any 
element of the Department, to— 
(i) mature the technology or process 
prior to transition to the Manufacturing 
Technology Program; and 
(ii) fully implement the technology or 
process; 
(4) the total value of industry cost share, if ap-
plicable; and 
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(5) the total value of cost avoidance or cost sav-
ings directly attributable to the implementation of the 
technology or process. 
(c) DEFINITION.—For purposes of this section, the 
term ‘‘implementation’’ refers to— 
(1) the use of a technology or process in the man-
ufacture of defense materiel; 
(2) the identification of a technology or process 
in the manufacturing baseline for a program of 
record that has not yet achieved full rate production; 
or 
(3) the use of a technology or process for the 
manufacture of commercial items. 
(d) SCOPE.—The report shall include technologies or 
processes developed with funds appropriated or otherwise 
made available for Manufacturing Technology for fiscal 
years 2002 through 2007. 
SEC. 236. ASSESSMENT OF SUFFICIENCY OF TEST AND 
EVALUATION PERSONNEL. 
(a) ASSESSMENT REQUIRED.—The Director of Oper-
ational Test and Evaluation shall assess whether the Direc-
tor’s professional staff meets the requirement of section 
139(j) of title 10, United States Code, that the staff be suffi-
cient to carry out the Director’s duties and responsibilities. 
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(b) INCLUSION IN REPORT.—The Director shall in-
clude the results of the assessment in the report, required 
by section 139(g) of title 10, United States Code, summa-
rizing the operational test and evaluation activities during 
fiscal year 2007. 
SEC. 237. REPEAL OF REQUIREMENT FOR SEPARATE RE-
PORTS ON TECHNOLOGY AREA REVIEW AND 
ASSESSMENT SUMMARIES. 
Subsection (c) of section 253 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109- 
163; 119 Stat. 3179; 10 U.S.C. 2501 note) is repealed. 
TITLE III—OPERATION AND 
MAINTENANCE 
Subtitle A—Authorization of Appropriations 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Other Department of Defense Programs. 
Subtitle B—Environmental Provisions 
Sec. 311. Reimbursement of Environmental Protection Agency for certain costs in 
connection with Moses Lake Wellfield Superfund Site, Moses 
Lake, Washington. 
Sec. 312. Reimbursement of Environmental Protection Agency for certain costs in 
connection with Arctic Surplus Superfund Site, Fairbanks, 
Alaska. 
Sec. 313.
Payment to Environmental Protection Agency of stipulated penalty in 
connection with Jackson Park Housing Complex, Washington. 
Subtitle C—Workplace and Depot Issues 
Sec. 321. Increase in threshold amount for contracts for procurement of capital 
assets in advance of availability of working-capital funds for the 
procurement. 
Sec. 322. Authorization of availability of working-capital funds for certain prod-
uct improvements. 
Sec. 323. Authorization of use of working-capital funds for acquisition of certain 
items. 
Sec. 324. Modification to public-private competition requirements before conver-
sion to contractor performance. 
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Sec. 325. Public-private competition at end of period specified in performance 
agreement not required. 
Sec. 326. Guidelines on insourcing new and contracted out functions. 
Sec. 327. Additional requirements for annual report on public-private competi-
tions. 
Sec. 328. Restriction on Office of Management and Budget influence over Depart-
ment of Defense public-private competitions. 
Sec. 329. Bid Protests by Federal Employees in actions under Office of Manage-
ment Budget Circular A-76. 
Sec. 330. Public-private competition required before conversion to contractor per-
formance. 
Sec. 331. Reauthorization and modification of multi-trades demonstration 
project. 
Subtitle D—Extension of Program Authorities 
Sec. 341. Extension of Arsenal Support Program Initiative. 
Sec. 342. Extension of period for reimbursement for helmet pads purchased by 
members of the Armed Forces deployed in contingency oper-
ations. 
Subtitle E—Reports 
Sec. 351. Inclusion of National Guard readiness for civil support missions in 
quarterly personnel and unit readiness report. 
Sec. 352. Plan to improve readiness of active and reserve component ground 
forces. 
Sec. 353. Plan for optimal use of strategic ports by commander of Surface Dis-
tribution and Deployment Command. 
Sec. 354. Independent assessment of Civil Reserve Air Fleet viability. 
Sec. 355. Annual report on prepositioned materiel and equipment. 
Sec. 356. Conditions on relocation of North American Aerospace Defense com-
mand center and related functions from Cheyenne Mountain to 
Peterson Air Force Base. 
Sec. 357. Report on public-private partnerships. 
Subtitle F—Other Matters 
Sec. 361. Authority for Department of Defense to provide support for certain 
sporting events. 
Sec. 362. Reasonable restrictions on payment of full replacement value for lost or 
damaged personal property transported at Government expense. 
Sec. 363. Priority transportation on Department of Defense aircraft of retired 
members residing in Commonwealths and possessions of the 
United States for certain health care services. 
Sec. 364. Recovery of missing military property. 
Sec. 365. Retention of Army combat uniforms by members of Army deployed in 
support of contingency operations. 
Sec. 366. Issue of serviceable material other than to Armed Forces. 
Sec. 367. Prohibition on deactivation of 36th Rescue Flight. 
Sec. 368. Limitation on expenditure of funds for initial flight screening at Pueblo 
Memorial Airport. 
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Subtitle A—Authorization of 
Appropriations 
SEC. 301. OPERATION AND MAINTENANCE FUNDING. 
Funds are hereby authorized to be appropriated for fis-
cal year 2008 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for operation and main-
tenance, in amounts as follows: 
(1) For the Army, $28,868,671,000. 
(2) For the Navy, $33,138,090,000. 
(3) For the Marine Corps, $4,923,993,000. 
(4) For the Air Force, $33,393,333,000. 
(5) For Defense-wide activities, $22,732,978,000. 
(6) For the Army Reserve, $2,508,062,000. 
(7) For the Naval Reserve, $1,182,883,000. 
(8) For the Marine Corps Reserve, $208,637,000. 
(9) For the Air Force Reserve, $2,692,077,000. 
(10) 
For 
the 
Army 
National 
Guard, 
$5,845,809,000. 
(11) 
For 
the 
Air 
National 
Guard, 
$5,044,365,000. 
(12) For the United States Court of Appeals for 
the Armed Forces, $11,971,000. 
(13) For Environmental Restoration, Army, 
$434,879,000. 
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(14) For Environmental Restoration, Navy, 
$300,591,000. 
(15) For Environmental Restoration, Air Force, 
$458,428,000. 
(16) For Environmental Restoration, Defense- 
wide, $12,751,000. 
(17) For Environmental Restoration, Formerly 
Used Defense Sites, $250,249,000. 
(18) For Overseas Humanitarian, Disaster, and 
Civic Aid programs, $103,300,000. 
(19) For Cooperative Threat Reduction pro-
grams, $398,000,000. 
(20) For the Overseas Contingency Operations 
Transfer Fund, $5,000,000. 
SEC. 302. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2008 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for 
providing capital for working capital and revolving funds 
in amounts as follows: 
(1) For the Defense Working Capital Funds, 
$102,000,000. 
(2) For the National Defense Sealift Fund, 
$1,535,194,000. 
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(3) For the Defense Working Capital Fund, De-
fense Commissary, $1,250,000,000. 
SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS. 
(a) DEFENSE HEALTH PROGRAM.—Funds are hereby 
authorized to be appropriated for the Department of Defense 
for fiscal year 2008 for expenses, not otherwise provided for, 
for the Defense Health Program, in the amount of 
$22,471,047,000, of which— 
(1) $21,974,304,000 is for Operation and Main-
tenance; 
(2) $134,482,000 is for Research, Development, 
Test, and Evaluation; and 
(3) $362,261,000 is for Procurement. 
(b) CHEMICAL AGENTS AND MUNITIONS DESTRUC-
TION, DEFENSE.—(1) Funds are hereby authorized to be ap-
propriated for the Department of Defense for fiscal year 
2008 for expenses, not otherwise provided for, for Chemical 
Agents and Munitions Destruction, Defense, in the amount 
of $1,455,724,000, of which— 
(A) $1,162,452,000 is for Operation and Mainte-
nance; 
(B) $274,846,000 is for Research, Development, 
Test, and Evaluation; and 
(C) $18,426,000 is for Procurement. 
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(2) Amounts authorized to be appropriated under 
paragraph (1) are authorized for— 
(A) the destruction of lethal chemical agents and 
munitions in accordance with section 1412 of the De-
partment of Defense Authorization Act, 1986 (50 
U.S.C. 1521); and 
(B) the destruction of chemical warfare materiel 
of the United States that is not covered by section 
1412 of such Act. 
(c) DRUG INTERDICTION AND COUNTER-DRUG ACTIVI-
TIES, DEFENSE-WIDE.—Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 
2008 for expenses, not otherwise provided for, for Drug 
Interdiction and Counter-Drug Activities, Defense-wide, in 
the amount of $936,822,000. 
(d) DEFENSE INSPECTOR GENERAL.—Funds are here-
by authorized to be appropriated for the Department of De-
fense for fiscal year 2008 for expenses, not otherwise pro-
vided for, for the Office of the Inspector General of the De-
partment of Defense, in the amount of $215,995,000, of 
which— 
(1) $214,995,000 is for Operation and Mainte-
nance; and 
(2) $1,000,000 is for Procurement. 
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Subtitle B—Environmental 
Provisions 
SEC. 311. REIMBURSEMENT OF ENVIRONMENTAL PROTEC-
TION AGENCY FOR CERTAIN COSTS IN CON-
NECTION 
WITH 
MOSES 
LAKE 
WELLFIELD 
SUPERFUND 
SITE, 
MOSES 
LAKE, 
WASH-
INGTON. 
(a) AUTHORITY
TO REIMBURSE.—Notwithstanding 
section 2215 of title 10, United States Code, the Secretary 
of Defense may transfer not more than $91,588.51 to the 
Moses Lake Wellfield Superfund Site 10–6J Special Ac-
count for the purpose described in section 315(a)(2) of the 
John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 110–364; 120 Stat. 2141). 
(b) SOURCE OF FUNDS.—Any payment under sub-
section (a) shall be made using funds authorized to be ap-
propriated by section 301(16) for environmental restora-
tion, defense-wide. 
SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTEC-
TION AGENCY FOR CERTAIN COSTS IN CON-
NECTION WITH ARCTIC SURPLUS SUPER-
FUND SITE, FAIRBANKS, ALASKA. 
(a) AUTHORITY
TO REIMBURSE.—Notwithstanding 
section 2215 of title 10, United States Code, the Secretary 
of Defense may transfer not more than $186,625.38 to the 
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Hazardous Substance Superfund to reimburse the Environ-
mental Protection Agency for costs incurred pursuant to the 
agreement known as ‘‘In the Matter of Arctic Surplus 
Superfund Site, U.S. EPA Docket Number CERCLA–10– 
2003–0114: Administrative Order on Consent for Remedial 
Design and Remedial Action’’ and entered into by the De-
partment of Defense and the Environmental Protection 
Agency on December 11, 2003. 
(b) SOURCE OF FUNDS.—Any payment under sub-
section (a) shall be made using funds authorized to be ap-
propriated by section 301(16) for environmental restora-
tion, defense-wide. 
SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION 
AGENCY OF STIPULATED PENALTY IN CON-
NECTION WITH JACKSON PARK HOUSING 
COMPLEX, WASHINGTON. 
(a) PAYMENT REQUIRED.—Notwithstanding section 
2215 of title 10, United States Code, the Secretary of the 
Navy may transfer not more than $40,000.00 to the Haz-
ardous Substance Superfund to pay a stipulated penalty 
assessed by the Environmental Protection Agency on Octo-
ber 25, 2005, against the Jackson Park Housing Complex, 
Washington, for the failure of the Department of the Navy 
to timely submit a draft final Phase II Remedial Investiga-
tion Work Plan for the Jackson Park Housing Complex Op-
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erable Unit (OU–3T–JPHC) pursuant to a schedule in-
cluded in an agreement entered into by the Department of 
the Navy and the Environmental Protection Agency (U.S. 
EPA Docket Number CERCLA–10–2005–0023). 
(b) SOURCE OF FUNDS.—Any payment under sub-
section (a) shall be made using funds authorized to be ap-
propriated by section 301(14) for environmental restora-
tion, Navy. 
Subtitle C—Workplace and Depot 
Issues 
SEC. 321. INCREASE IN THRESHOLD AMOUNT FOR CON-
TRACTS FOR PROCUREMENT OF CAPITAL AS-
SETS 
IN 
ADVANCE 
OF 
AVAILABILITY 
OF 
WORKING-CAPITAL FUNDS FOR THE PRO-
CUREMENT. 
Section 2208(k)(2) of title 10, United States Code, is 
amended by striking ‘‘$100,000’’ and inserting ‘‘$250,000’’. 
SEC. 322. AUTHORIZATION OF AVAILABILITY OF WORKING- 
CAPITAL FUNDS FOR CERTAIN PRODUCT IM-
PROVEMENTS. 
Section 2208 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(s) PRODUCT IMPROVEMENT.—(1) An engineering 
service, manufacturing effort, developmental testing, or 
operational test and evaluation effort for product improve-
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ment of a weapon system platform, major end item, compo-
nent of a major end item, or article that is financed by 
a working-capital fund may be performed or acquired, if— 
‘‘(A) the combined cost of the engineering serv-
ices, manufacturing efforts, development testings, and 
operational test and evaluation efforts for the product 
improvements that are financed by the working-cap-
ital fund is less than $15,000,000; 
‘‘(B) the unit cost of the platform, item, compo-
nent, or article is less than $1,000,000; and 
‘‘(C) the product improvement would improve 
the reliability and maintainability, extend the useful 
life, enhance safety, lower maintenance costs, provide 
performance enhancement, or expand the performance 
capability of the weapon system platform or major 
end item. 
‘‘(2) Funds described in paragraph (1) may be used 
in accordance with that paragraph for a commercial or in-
dustrial type function performed as part of a public-private 
partnership at the Center of Industrial and Technical Ex-
cellence designated under section 2474 of this title. 
‘‘(3) Each report submitted under subsection (q) for 
a working-capital fund shall include a description of any 
use of funds described in paragraph (1) that is financed 
by that working-capital fund and a description of the an-
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