185
Affairs, and a service region, in the case of the De-
partment of Defense.’’.
(2) The item relating to that section in the table of
sections at the beginning of chapter 81 of title 38, United
States Code, is amended to read as follows:
‘‘8111. Sharing of Department of Veterans Affairs and Department of Defense
health care resources.’’.
(b) CONFORMING AMENDMENT.—Section 1104 of
title 10, United States Code, is amended by striking
‘‘may’’ and inserting ‘‘shall’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2003.
SEC. 724. HEALTH CARE RESOURCES SHARING AND CO-
ORDINATION PROJECT.
(a) ESTABLISHMENT.—(1) The Secretary of Vet-
erans Affairs and the Secretary of Defense shall conduct
a health care resources sharing project to serve as a test
for evaluating the feasibility, and the advantages and dis-
advantages, of measures and programs designed to im-
prove the sharing and coordination of health care and
health care resources between the Department of Veterans
Affairs and the Department of Defense. The project shall
be carried out, as a minimum, at the sites identified under
subsection (b).
(2) Reimbursement between the two Departments
with respect to the project under this section shall be made
186
in accordance with the provisions of section 8111(e)(2) of
title 38, United States Code, as amended by section
723(a).
(b) SITE IDENTIFICATION.—(1) Not later than 90
days after the date of the enactment of this Act, the Secre-
taries shall jointly identify no less than five sites for the
conduct of the project under this section.
(2) For purposes of this section, a site at which the
resource sharing project shall be carried out is an area
in the United States in which—
(A) one or more military treatment facilities
and one or more VA health care facilities are situ-
ated in relative proximity to each other, including fa-
cilities engaged in joint ventures as of the date of
the enactment of this Act; and
(B) for which an agreement to coordinate care
and programs for patients at those facilities could be
implemented not later than October 1, 2004.
(c) CONDUCT OF PROJECT.—(1) At sites at which
the project is conducted, the Secretaries shall provide a
test of a coordinated management system for the military
treatment facilities and VA health care facilities partici-
pating in the project. Such a coordinated management
system for a site shall include at least one of the elements
specified in paragraph (2), and each of the elements speci-
187
fied in that paragraph must be included in the coordinated
management system for at least two of the participating
sites.
(2) Elements of a coordinated management system
referred to in paragraph (1) are the following:
(A) A budget and financial management system
for those facilities that—
(i) provides managers with information
about the costs of providing health care by both
Departments at the site;
(ii) allows managers to assess the advan-
tages and disadvantages (in terms of relative
costs, benefits, and opportunities) of using re-
sources of either Department to provide or en-
hance health care to beneficiaries of either De-
partment.
(B) A coordinated staffing and assignment sys-
tem for the personnel (including contract personnel)
employed at or assigned to those facilities, including
clinical practitioners of either Department.
(C) Medical information and information tech-
nology systems for those facilities that—
(i) are compatible with the purposes of the
project;
188
(ii) communicate with medical information
and information technology systems of cor-
responding elements of those facilities; and
(iii) incorporate minimum standards of in-
formation quality that are at least equivalent to
those adopted for the Departments at large in
their separate health care systems.
(d) PHARMACY BENEFIT.—(1) One of the elements
that shall be tested in at least two sites in accordance with
subsection (c) is a pharmacy benefit under which bene-
ficiaries of either Department shall have access, as part
of the project, to pharmaceutical services of the other De-
partment participating in the project.
(2) The two Secretaries shall enter into a memo-
randum of agreement to govern the establishment and
provision not later than October 1, 2004, of pharma-
ceutical services authorized by this section. In the case of
beneficiaries of the Department of Defense, the authority
under the preceding sentence for such access to pharma-
ceutical services at a VA health care facility includes au-
thority for medications to be dispensed based upon a pre-
scription written by a licensed health care practitioner
who, as determined by the Secretary of Defense, is a cer-
tified practitioner.
189
(e) AUTHORITY TO WAIVE CERTAIN ADMINISTRA-
TIVE POLICIES.—(1)(A) In order to carry out subsections
(c) and (d), the Secretary of Defense may, in the Sec-
retary’s discretion, waive any administrative policy of the
Department of Defense otherwise applicable to those sub-
sections (including policies applicable to pharmaceutical
benefits) that specifically conflicts with the purposes of the
project, in instances in which the Secretary determines
that the waiver is necessary for the purposes of the
project.
(B) In order to carry out subsections (c) and (d), the
Secretary of Veterans Affairs may, in the Secretary’s dis-
cretion, waive any administrative policy of the Department
of Veterans Affairs otherwise applicable to those sub-
sections (including policies applicable to pharmaceutical
benefits) that specifically conflicts with the purposes of the
project, in instances in which the Secretary determines
that the waiver is necessary for the purposes of the
project.
(C) The two Secretaries shall establish procedures for
resolving disputes that may arise from the effects of policy
changes that are not covered by other agreement or exist-
ing procedures.
(2) No waiver under paragraph (1) may alter any
labor-management agreement in effect as of the date of
190
the enactment of this Act or adopted by either Depart-
ment during the period of the project.
(f) USE BY DOD OF CERTAIN TITLE 38 PERSONNEL
AUTHORITIES.—(1) In order to carry out subsections (c)
and (d), the Secretary of Defense may apply to civilian
personnel of the Department of Defense assigned to or
employed at a military treatment facility participating in
the project any of the provisions of subchapters I, III, and
IV of chapter 74 of title 38, United States Code, deter-
mined appropriate by the Secretary.
(2) For such purposes, any reference in such
chapter—
(A) to the ‘‘Secretary’’ or the ‘‘Under Secretary
for Health’’ shall be treated as referring to the Sec-
retary of Defense; and
(B) to the ‘‘Veterans Health Administration’’
shall be treated as referring to the Department of
Defense.
(g) FUNDING.—From amounts available for health
care for a fiscal year, each Secretary shall make available
to carry out the project not less than—
(1) $5,000,000 for fiscal year 2003;
(2) $10,000,000 for fiscal year 2004; and
(3) $15,000,000 for each succeeding year dur-
ing which the project is in effect.
192
Committees on Armed Services and Veterans’ Affairs of
the Senate and House of Representatives.
(3) Each such report shall include the following:
(A) The strategic mission coordination between
shared activities.
(B) The accuracy and validity of performance
data used to evaluate sharing performance and
changes in standards of care or services at the
shared facilities.
(C) A statement that all appropriated funds
designated for sharing activities are being used for
direct support of sharing initiatives.
(D) Recommendations concerning continuance
of the project at each site for the succeeding 12-
month period.
(4) Whenever there is a recommendation under para-
graph (3)(D) to discontinue a resource sharing project
under this section, the two Secretaries shall act upon that
recommendation as soon as practicable.
(5) In the initial report under this subsection, the
joint review team shall validate the baseline information
used for comparative analysis.
(j) TERMINATION.—(1) The project, and the author-
ity provided by this section, shall terminate on September
30, 2007.
193
(2) The Secretaries may terminate the performance
of the project at any site when the performance of the
project at that site fails to meet performance expectations
of the Secretaries, based on recommendations from the re-
view team under subsection (i) or on other information
available to the Secretaries to warrant such action.
SEC. 725. REPORT ON IMPROVED COORDINATION AND
SHARING OF HEALTH CARE AND HEALTH
CARE RESOURCES FOLLOWING DOMESTIC
ACTS OF TERRORISM OR DOMESTIC USE OF
WEAPONS OF MASS DESTRUCTION.
(a) JOINT REVIEW.—The Secretary of Defense and
the Secretary of Veterans Affairs shall jointly review the
adequacy of current processes and existing statutory au-
thorities and policy governing the capability of the Depart-
ment of Defense and the Department of Veterans Affairs
to provide health care to members of the Armed Forces
following domestic acts of terrorism or domestic use of
weapons of mass destruction, both before and after any
declaration of national emergency. Such review shall in-
clude a determination of the adequacy of current authori-
ties in providing for the coordination and sharing of health
care resources between the two Departments in such
cases, particularly before the declaration of a national
emergency.
194
(b) REPORT TO CONGRESS.—A report on the review
under subsection (a), including any recommended legisla-
tive changes, shall be submitted to Congress as part of
the fiscal year 2004 budget submission.
SEC. 726. ADOPTION BY DEPARTMENT OF VETERANS AF-
FAIRS OF DEPARTMENT OF DEFENSE PHAR-
MACY DATA TRANSACTION SYSTEM.
(a) ADOPTION OF PDTS SYSTEM.—The Secretary of
Veterans Affairs shall adopt for use by the Department
of Veterans Affairs health care system the system of the
Department of Defense known as the ‘‘Pharmacy Data
Transaction System’’. Such system shall be fully oper-
ational for the Department of Veterans Affairs not later
than October 1, 2004.
(b) IMPLEMENTATION FUNDING.—The Secretary of
Defense shall transfer to the Secretary of Veterans Af-
fairs, or shall otherwise bear the cost of, an amount suffi-
cient to cover three-fourths of the cost to the Department
of Veterans Affairs for initial computer programming ac-
tivities and relevant staff training expenses related to im-
plementation of subsection (a). Such amount shall be de-
termined in such manner as agreed to by the two Secre-
taries.
(c) REIMBURSEMENT
PROCEDURES.—Any reim-
bursement by the Department of Veterans Affairs to the
195
Department of Defense for the use by the Department of
Veterans Affairs of the transaction system under sub-
section (a) shall be determined in accordance with section
8111(e)(2) of title 38, United States Code, as amended
by section 723.
SEC. 727. JOINT PILOT PROGRAM FOR PROVIDING GRAD-
UATE MEDICAL EDUCATION AND TRAINING
FOR PHYSICIANS.
(a) IN GENERAL.—The Secretary of Defense and the
Secretary of Veterans Affairs shall jointly carry out a pilot
program under which graduate medical education and
training is provided to military physicians and physician
employees of the Department of Defense and the Depart-
ment of Veterans Affairs through one or more programs
carried out in military medical treatment facilities of the
Department of Defense and medical centers of the Depart-
ment of Veterans Affairs. The pilot program shall begin
not later than January 1, 2003.
(b) COST-SHARING AGREEMENT.—The Secretaries
shall enter into an agreement for carrying out the pilot
program. The agreement shall establish means for each
Secretary to assist in paying the costs, with respect to in-
dividuals under the jurisdiction of that Secretary, incurred
by the other Secretary in providing medical education and
training under the pilot program.
196
(c) USE OF EXISTING AUTHORITIES.—To carry out
the pilot program, the Secretary of Defense and the Sec-
retary of Veterans Affairs may use authorities provided
to them under this Act, section 8111 of title 38, United
States Code, and other laws relating to the furnishing or
support of medical education and the cooperative use of
facilities.
(d) TERMINATION OF PROGRAM.—The pilot program
under this section shall terminate on July 31, 2008.
(e) REPEAL OF SUPERSEDED PROVISION.—Section
738 of the National Defense Authorization Act for Fiscal
Year 2002 (Public Law 107–107; 10 U.S.C. 1094 note;
115 Stat.1173) is repealed.
SEC. 728. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF
VETERANS AFFAIRS RESOURCES.
(a) 
REPEAL
OF
VA 
BED
LIMITS.—Section
8110(a)(1) of title 38, United States Code, is amended—
(1) in the first sentence, by striking ‘‘at not
more than 125,000 and not less than 100,000’’;
(2) in the third sentence, by striking ‘‘shall op-
erate and maintain a total of not less than 90,000
hospital beds and nursing home beds and’’; and
(3) in the fourth sentence, by striking ‘‘to en-
able the Department to operate and maintain a total
197
of not less than 90,000 hospital and nursing home
beds in accordance with this paragraph and’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2003.
SEC. 729. REPORTS.
(a) INTERIM REPORT.—Not later than February 1,
2004, the Secretary of Defense and Secretary of Veterans
Affairs shall submit to the Committees on Veterans’ Af-
fairs and the Committees on Armed Services of the Senate
and House of Representatives a joint report on their con-
duct of each of the programs under this Act through the
end of the preceding fiscal year. The Secretaries shall in-
clude in the report a description of the measures taken,
or planned to be taken, to implement the health resources
sharing project under section 724 and the other provisions
of this Act and any cost savings anticipated, or cost shar-
ing achieved, at facilities participating in the project. The
report shall also include information on improvements in
access to care, quality, and timeliness, as well as impedi-
ments encountered and legislative recommendations to
ameliorate such impediments.
(b) ANNUAL REPORT ON USE OF WAIVER AUTHOR-
ITY.—Not later than one year after the date of the enact-
ment of this Act, and annually thereafter through comple-
tion of the project under section 724, the two Secretaries
198
shall submit to the committees of Congress specified in
subsection (a) a joint report on the use of the waiver au-
thority provided by section 724(e)(1). The report shall in-
clude a statement of the numbers and types of requests
for waivers under that section of administrative policies
that have been made during the period covered by the re-
port and, for each such request, an explanation of the con-
tent of each request, the intended purpose or result of the
requested waiver, and the disposition of each request. The
report also shall include descriptions of any new adminis-
trative policies that enhance the success of the project.
(c) PHARMACY BENEFITS REPORT.—Not later than
one year after pharmaceutical services are first provided
pursuant to section 724(d)(1), the two Secretaries shall
submit to the committees of Congress specified in sub-
section (a) a joint report on access by beneficiaries of each
department to pharmaceutical services of the other depart-
ment. The report shall describe the advantages and dis-
advantages to the beneficiaries and the Departments of
providing such access and any other matters related to
such pharmaceutical services that the Secretaries consider
pertinent, together with any legislative recommendations
for expanding or canceling such services.
(d) ANNUAL REPORT
ON PILOT PROGRAM
FOR
GRADUATE MEDICAL EDUCATION.—Not later than Janu-
199
ary 31, 2004, and January 31 of each year thereafter
through 2009, the two Secretaries shall submit to Con-
gress a joint report on the pilot program under section
727. The report for any year shall cover activities under
the program during the preceding year and shall include
each Secretary’s assessment of the efficacy of providing
education and training under that program.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
SEC. 801. PLAN FOR ACQUISITION MANAGEMENT PROFES-
SIONAL EXCHANGE PILOT PROGRAM.
(a) PLAN REQUIRED.—(1) The Secretary of Defense
shall develop a plan for a pilot program under which—
(A) an individual in the field of acquisition
management employed by the Department of De-
fense may be temporarily assigned to work in a pri-
vate sector organization; and
(B) an individual in such field employed by a
private sector organization may be temporarily as-
signed to work in the Department of Defense.
(2) In developing the plan under paragraph (1), the
Secretary shall address the following:
200
(A) The benefits of undertaking such a pro-
gram.
(B) The appropriate length of assignments
under the program.
(C) Whether an individual assigned under the
program should be compensated by the organization
to which the individual is assigned, or the organiza-
tion from which the individual is assigned.
(D) The ethics guidelines that should be applied
to the program and, if necessary, waivers of ethics
laws that would be needed in order to make the pro-
gram effective and attractive to both Government
and private sector employees.
(E) An assessment of how compensation of in-
dividuals 
suffering 
employment-related 
injuries
under the program should be addressed.
(b) SUBMISSION TO CONGRESS.—Not later than Feb-
ruary 1, 2003, the Secretary shall submit to the Commit-
tees on Armed Services of the Senate and the House of
Representatives the plan required under subsection (a).
SEC. 802. EVALUATION OF TRAINING, KNOWLEDGE, AND
RESOURCES REGARDING NEGOTIATION OF
INTELLECTUAL PROPERTY ARRANGEMENTS.
(a) AVAILABILITY OF TRAINING, KNOWLEDGE, AND
RESOURCES.—The Secretary of Defense shall evaluate the
201
training, knowledge, and resources needed by the Depart-
ment of Defense in order to effectively negotiate intellec-
tual property rights using the principles of the Defense
Federal Acquisition Regulation Supplement and determine
whether the Department of Defense currently has in place
the training, knowledge, and resources available to meet
those Departmental needs.
(b) REPORT.—Not later than February 1, 2003, the
Secretary of Defense shall submit to Congress a report
describing—
(1) the results of the evaluation performed
under subsection (a);
(2) to the extent the Department does not have
adequate training, knowledge, and resources avail-
able, actions to be taken to improve training and
knowledge and to make resources available to meet
the Department’s needs; and
(3) the number of Department of Defense legal
personnel trained in negotiating intellectual property
arrangements.
SEC. 803. LIMITATION PERIOD FOR TASK AND DELIVERY
ORDER CONTRACTS.
Chapter 137 of title 10, United States Code, is
amended—
(1) in section 2304a—
202
(A) in subsection (e)—
(i) by inserting ‘‘(1)’’ before ‘‘A task’’;
and
(ii) by adding at the end the following
new paragraphs:
‘‘(2) Unless use of procedures other than competitive
procedures is authorized by an exception in subsection (c)
of section 2304 of this title and approved in accordance
with subsection (f) of such section, competitive procedures
shall be used for making such a modification.
‘‘(3) Notice regarding the modification shall be pro-
vided in accordance with section 18 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 416) and section
8(e) of the Small Business Act (15 U.S.C. 637(e)).’’; and
(B) by striking subsection (f) and inserting
the following:
‘‘(f) LIMITATION ON CONTRACT PERIOD.—The base
period of a task order contract or delivery order contract
entered into under this section may not exceed five years
unless a longer period is specifically authorized in a law
that is applicable to such contract. The contract may be
extended for an additional 5 years (for a total contract
period of not more than 10 years) through modifications,
options, or otherwise.’’; and
(2) in section 2304b—
203
(A) by striking subsection (a) and insert-
ing the following:
‘‘(a) IN GENERAL.—A task order contract (as defined
in section 2304d of this title) for procurement of advisory
and assistance services shall be subject to the require-
ments of this section, sections 2304a and 2304c of this
title, and other applicable provisions of law.’’;
(B) by striking subsections (b), (f), and (g)
and redesignating subsections (c), (d), (e), (h),
and (i) as subsections (b) through (f);
(C) by amending subsection (c) (as redes-
ignated by subparagraph (B)) to read as fol-
lows:
‘‘(c) REQUIRED CONTENT OF CONTRACT.—A task
order contract described in subsection (a) shall contain the
same information that is required by section 2304a(b) to
be included in the solicitation of offers for that contract.’’;
and
(D) in subsection (d) (as redesignated by
subparagraph (B))—
(i) in paragraph (1), by striking
‘‘under this section’’ and inserting ‘‘de-
scribed in subsection (a)’’; and
(ii) in paragraph (2), by striking
‘‘under this section’’.
204
SEC. 804. ONE-YEAR EXTENSION OF PROGRAM APPLYING
SIMPLIFIED PROCEDURES TO CERTAIN COM-
MERCIAL ITEMS; REPORT.
(a) EXTENSION OF PILOT PROGRAM.—Section 4202
of the Clinger-Cohen Act of 1996 (divisions D and E of
Public Law 104–106; 110 Stat. 652; 10 U.S.C. 2304
note) is amended in subsection (e) by striking ‘‘January
1, 2003’’ and inserting ‘‘January 1, 2004’’.
(b) REPORT REQUIRED.—Not later than January 15,
2003, the Secretary of Defense shall submit to Congress
a report on whether the authority to issue solicitations for
purchases of commercial items in excess of the simplified
acquisition threshold pursuant to the special simplified
procedures authorized by section 2304(g)(1) of title 10,
United States Code, section 303(g)(1) of the Federal
Property and Administrative Services Act of 1949, and
section 31(a) of the Office of Federal Procurement Policy
Act, should be made permanent.
SEC. 805. 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
‘‘, except that such amount may be adjusted by the Ad-
ministrator every five years to the amount equal to
$100,000 in constant fiscal year 2002 dollars (rounded to
the nearest $10,000)’’ before the period at the end.
205
SEC. 806. IMPROVEMENT OF PERSONNEL MANAGEMENT
POLICIES AND PROCEDURES APPLICABLE TO
THE CIVILIAN ACQUISITION WORKFORCE.
(a) PLAN REQUIRED.—The Secretary of Defense
shall develop a plan for improving the personnel manage-
ment policies and procedures applicable to the Department
of Defense civilian acquisition workforce based on the re-
sults of the demonstration project described in section
4308 of the Clinger–Cohen Act of 1996 (division D of
Public Law 104–106; 10 U.S.C. 1701 note).
(b) SUBMISSION TO CONGRESS.—Not later than Feb-
ruary 15, 2003, the Secretary shall submit to Congress
the plan required under subsection (a) and a report includ-
ing any recommendations for legislative action necessary
to implement the plan.
SEC. 807. MODIFICATION OF SCOPE OF BALL AND ROLLER
BEARINGS COVERED FOR PURPOSES OF PRO-
CUREMENT LIMITATION.
Section 2534(a)(5) of title 10, United States Code
is amended—
(1) 
by 
striking 
‘‘225.71’’ 
and 
inserting
‘‘225.70’’;
(2) by striking ‘‘October 23, 1992’’ and insert-
ing ‘‘April 27, 2002’’; and
(3) by adding at the end the following: ‘‘In this
section the term ‘ball bearings and roller bearings’
206
includes unconventional or hybrid ball and roller
bearings and cam follower bearings, ball screws, and
other derivatives of ball and roller bearings.’’.
SEC. 808. RAPID ACQUISITION AND DEPLOYMENT PROCE-
DURES.
(a) REQUIREMENT TO ESTABLISH PROCEDURES.—
Chapter 141 of title 10, United States Code, is amended
by inserting after section 2396 the following new section:
‘‘§ 2397. Rapid acquisition and deployment proce-
dures
‘‘(a) ESTABLISHMENT.—The Secretary of Defense
shall establish tailored rapid acquisition and deployment
procedures for items urgently needed to react to an enemy
threat or to respond to significant and urgent safety situa-
tions.
‘‘(b) PROCEDURES.—The procedures established
under subsection (a) shall include the following:
‘‘(1) A process for streamlined communications
between the Chairman of the Joint Chiefs of Staff,
the acquisition community, and the testing commu-
nity.
‘‘(2) A process for expedited technical, pro-
grammatic, and financial decisions.
‘‘(3) An expedited procurement and contracting
process.
207
‘‘(c) SPECIFIC STEPS TO BE INCLUDED.—The proce-
dures established under subsection (a) shall provide for
the following:
‘‘(1) The commander of a unified combatant
command may notify the Chairman of the Joint
Chiefs of Staff of the need for an item described in
subsection (a) that is currently under development.
‘‘(2) The Chairman may request the Secretary
of Defense to use rapid acquisition and deployment
procedures with respect to the item.
‘‘(3) The Secretary of Defense shall decide
whether to use such procedures with respect to the
item and shall notify the Secretary of the appro-
priate military department of the decision.
‘‘(4) If the Secretary of Defense decides to use
such procedures with respect to the item, the Sec-
retary of the military department shall prepare a
funding strategy for the rapid acquisition of the item
and shall conduct a demonstration of the perform-
ance of the item.
‘‘(5) The Director of Operational Test and
Evaluation shall immediately evaluate the existing
capability of the item (but under such evaluation
shall not assess the capability of the item as regards
208
to the function the item was originally intended to
perform).
‘‘(6) The Chairman of the Joint Chiefs of Staff
shall review the evaluation of the Director of Oper-
ational Test and Evaluation and report to the Sec-
retary of Defense regarding whether the capabilities
of the tested item are able to meet the urgent need
for the item.
‘‘(7) The Secretary of Defense shall evaluate
the information regarding funding and rapid acquisi-
tion prepared pursuant to paragraph (4) and ap-
prove or disapprove of the acquisition of the item
using the procedures established pursuant to sub-
section (a).
‘‘(d) LIMITATION.—The quantity of items of a system
procured using the procedures established under this sec-
tion may not exceed the number established for low-rate
initial production for the system, and any such items shall
be counted for purposes of the number of items of the
system that may be procured through low-rate initial pro-
duction.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2396 the following new
item:
‘‘2397. Rapid acquisition and deployment procedures.’’.
209
SEC. 809. QUICK-REACTION SPECIAL PROJECTS ACQUISI-
TION TEAM.
(a) ESTABLISHMENT.—Chapter 141 of title 10,
United States Code, is amended by inserting after section
2402 the following new section:
‘‘§ 2403. Quick-reaction special projects acquisition
team
‘‘The Secretary of Defense shall establish a quick-re-
action special projects acquisition team, the purpose of
which shall be to advise the Secretary on actions that can
be taken to expedite the procurement of urgently needed
systems. The team shall address problems with the inten-
tion of creating expeditious solutions relating to—
‘‘(1) industrial-base issues such as the limited
availability of suppliers;
‘‘(2) compliance with acquisition regulations
and lengthy procedures;
‘‘(3) compliance with environmental require-
ments;
‘‘(4) compliance with requirements regarding
small-business concerns; and
‘‘(5) compliance with requirements regarding
the purchase of products made in the United
States.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
210
after the item relating to section 2402 the following new
item:
‘‘2403. Quick-reaction special projects acquisition team.’’.
SEC. 
810. 
REPORT 
ON 
DEVELOPMENT 
OF 
ANTI-
CYBERTERRORISM TECHNOLOGY.
Not later than February 1, 2003, the Secretary of
Defense shall submit to Congress a report on—
(1) efforts by the Department of Defense to
enter into contracts with private entities to develop
anticyberterrorism technology; and
(2) whether such efforts should be increased.
SEC. 811. CONTRACTING WITH FEDERAL PRISON INDUS-
TRIES.
(a) ASSURING BEST VALUE
FOR NATIONAL DE-
FENSE AND HOMELAND SECURITY.—(1) The Department
of Defense or one of the military departments may acquire
a product or service from Federal Prison Industries, Inc.
only if such acquisition is made through a procurement
contract awarded and administered in accordance with
chapter 137 of title 10, United States Code, the Federal
Acquisition Regulation, and the Department of Defense
supplements to such regulation. If a contract is to be
awarded to Federal Prison Industries, Inc. by the Depart-
ment of Defense through other than competitive proce-
dures, authority for such award shall be based upon statu-
211
tory authority other than chapter 307 of title 18, United
States Code.
(2) The Secretary of Defense shall assure that—
(A) no purchase of a product or a service is
made by the Department of Defense from Federal
Prison Industries, Inc. unless the contracting officer
determines that—
(i) the product or service can be timely
furnished and will meet the performance needs
of the activity that requires the product or serv-
ice; and
(ii) the price to be paid does not exceed a
fair market price determined by competition or
a fair and reasonable price determined by price
analysis or cost analysis; and
(B) Federal Prison Industries, Inc. performs its
contractual obligations to the same extent as any
other contractor for the Department of Defense.
(b) PERFORMANCE AS A SUBCONTRACTOR.—(1) The
use of Federal Prison Industries, Inc. as a subcontractor
or supplier shall be a wholly voluntary business decision
by a Department of Defense prime contractor or subcon-
tractor, subject to any prior approval of subcontractors or
suppliers by the contracting officer which may be imposed
by regulation or by the contract.
212
(2) A defense contractor (or subcontractor at any
tier) using Federal Prison Industries, Inc. as a subcon-
tractor or supplier in furnishing a commercial product
pursuant to a contract shall implement appropriate man-
agement procedures to prevent introducing an inmate-pro-
duced product or inmate-furnished services into the com-
mercial market.
(3) Except as authorized under the Federal Acquisi-
tion Regulation, the use of Federal Prison Industries, Inc.
as a subcontractor or supplier of products or provider of
services shall not be imposed upon prospective or actual
defense prime contractors or subcontractors at any tier by
means of—
(A) a contract solicitation provision requiring a
contractor to offer to make use of Federal Prison
Industries, Inc. its products or services;
(B) specifications requiring the contractor to
use specific products or services (or classes of prod-
ucts or services) offered by Federal Prison Indus-
tries, Inc. in the performance of the contract;
(C) any contract modification directing the use
of Federal Prison Industries, Inc. its products or
services; or
(D) any other means.
213
(c) PROTECTION OF CLASSIFIED AND SENSITIVE IN-
FORMATION.—The Secretary of Defense shall assure that
Federal Prison Industries, Inc. is not permitted to provide
services as a contractor or subcontractor at any tier, if
an inmate worker has access to—
(1) data that is classified or will become classi-
fied after being merged with other data;
(2) geographic data regarding the location of
surface and subsurface infrastructure providing com-
munications, water and electrical power distribution,
pipelines for the distribution of natural gas, bulk pe-
troleum products and other commodities, and other
utilities; or
(3) personal or financial information about indi-
vidual private citizens, including information relating
to such person’s real property, however described,
without giving prior notice to such persons or class
of persons to the greatest extent practicable.
(d) REGULATORY IMPLEMENTATION.—
(1) PROPOSED REGULATIONS.—Proposed revi-
sions to the Department of Defense Supplement to
the Federal Acquisition Regulation to implement
this section shall be published not later than 90 days
after the date of enactment of this Act and provide
not less than 60 days for public comment.
214
(2) FINAL
REGULATIONS.—Final regulations
shall be published not later than 180 days after the
date of the enactment of this Act and shall be effec-
tive on the date that is 30 days after the date of
publication.
SEC. 812. RENEWAL OF CERTAIN PROCUREMENT TECH-
NICAL ASSISTANCE COOPERATIVE AGREE-
MENTS AT FUNDING LEVELS AT LEAST SUFFI-
CIENT TO SUPPORT EXISTING PROGRAMS.
Section 2413 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(d) With respect to any eligible entity that has suc-
cessfully performed under a cooperative agreement entered
into under subsection (a), the Secretary shall strive, to the
greatest extent practicable and subject to appropriations,
to renew such agreement with such entity at a level of
funding which is at least equal to the level of funding
under the cooperative agreement being renewed.’’.
215
TITLE 
IX—DEPARTMENT 
OF
DEFENSE 
ORGANIZATION
AND MANAGEMENT
SEC. 901. CHANGE IN TITLE OF SECRETARY OF THE NAVY
TO SECRETARY OF THE NAVY AND MARINE
CORPS.
(a) CHANGE IN TITLE.—The position of the Sec-
retary of the Navy is hereby redesignated as the Secretary
of the Navy and Marine Corps.
(b) REFERENCES.—Any reference to the Secretary of
the Navy in any law, regulation, document, record, or
other paper of the United States shall be considered to
be a reference to the Secretary of the Navy and Marine
Corps.
SEC. 902. REPORT ON IMPLEMENTATION OF UNITED
STATES NORTHERN COMMAND.
Not later than September 1, 2002, the Secretary of
Defense shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a re-
port providing an implementation plan for the United
States Northern Command. The report shall address the
following:
(1) The required budget for standing-up and
maintaining that command.
216
(2) The location of the headquarters of that
command and alternatives considered for that loca-
tion, together with the criteria used in selection of
that location.
(3) The required manning levels for the com-
mand, the effect that command will have on current
Department of Defense personnel resources, and the
other commands from which personnel will be trans-
ferred to provide personnel for that command.
(4) The chain of command within that com-
mand to the component command level and a review
of permanently assigned or tasked organizations and
units.
(5) The relationship of that command to the
Office of Homeland Security and the Homeland Se-
curity Council, to other Federal departments and
agencies, and to State and local law enforcement
agencies.
(6) The relationship of that command with the
National Guard Bureau, individual State National
Guard Headquarters, and civil first responders to
ensure continuity of operational plans.
(7) The legal implications of military forces in
their Federal capacity operating on United States
territory.
217
(8) The status of Department of Defense
consultations—
(A) with Canada regarding Canada’s role
in, and any expansion of mission for, the North
American Air Defense Command; and
(B) with Mexico regarding Mexico’s role in
the United States Northern Command.
(9) The status of Department of Defense con-
sultations with NATO member nations on efforts to
transfer the Supreme Allied Command for the Atlan-
tic from dual assignment with the position of com-
mander of the United States Joint Forces Com-
mand.
(10) The revised mission, budget, and personnel
resources required for the United States Joint
Forces Command.
SEC. 903. NATIONAL DEFENSE MISSION OF COAST GUARD
TO BE INCLUDED IN FUTURE QUADRENNIAL
DEFENSE REVIEWS.
Section 118(d) of title 10, United States Code, is
amended—
(1) by redesignating paragraph (14) as para-
graph (15); and
(2) by inserting after paragraph (13) the fol-
lowing new paragraph:
218
‘‘(14) The national defense mission of the Coast
Guard.’’.
SEC. 904. CHANGE IN YEAR FOR SUBMISSION OF QUADREN-
NIAL DEFENSE REVIEW.
Section 118(a) of title 10, United States Code, is
amended by striking ‘‘during a year’’ and inserting ‘‘dur-
ing the second year’’.
SEC. 905. REPORT ON EFFECT OF OPERATIONS OTHER
THAN WAR ON COMBAT READINESS OF THE
ARMED FORCES.
(a) REPORT REQUIRED.—Not later than February
28, 2004, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives
a report on the effect on the combat readiness of the
Armed Forces of operations other than war in which the
Armed Forces are participating as of the date of the en-
actment of this Act (hereinafter in this section referred
to as ‘‘current operations other than war’’). Such report
shall address any such effect on combat readiness for the
Armed Forces as a whole and separately for the active
components and the reserve components.
(b) OPERATIONS OTHER THAN WAR.—For purposes
of this section, the term ‘‘operations other than war’’ in-
cludes the followng:
219
(1) Humanitarian operations.
(2) Counter-drug operations.
(3) Peace operations.
(4) Nation assistance.
(c) MATTERS TO BE ADDRESSED.—The report shall,
at a minimum, address the following (shown both for the
Armed Forces as a whole and separately for the active
components and the reserve components):
(1) With respect to each current operation
other than war, the number of members of the
Armed Forces who are—
(A) directly participating in the operation;
(B) supporting the operation;
(C) preparing to participate or support an
upcoming rotation to the operation; or
(D) recovering and retraining following
participation in the operation.
(2) The cost to the Department of Defense in
time, funds, resources, personnel, and equipment to
prepare for, conduct, and recover and retrain from
each such operation.
(3) The effect of participating in such oper-
ations on performance, retention, and readiness of
individual members of the Armed Forces.
220
(4) The effect of such operations on the readi-
ness of forces and units participating, preparing to
participate, and returning from participation in such
operations.
(5) The effect that such operations have on
forces and units that do not, have not, and will not
participate in them.
(6) The contribution to United States national
security and to regional stability of participation by
the United States in such operations, to be assessed
after receiving the views of the commanders of the
regional unified combatant commands.
(d) CLASSIFICATION OF REPORT.—The report may
be provided in classified or unclassified form as necessary.
SEC. 906. CONFORMING AMENDMENT TO REFLECT DIS-
ESTABLISHMENT OF DEPARTMENT OF DE-
FENSE CONSEQUENCE MANAGEMENT PRO-
GRAM INTEGRATION OFFICE.
Section 12310(c)(3) of title 10, United States Code,
is amended by striking ‘‘only—’’ and all that follows
through ‘‘(B) while assigned’’ and inserting ‘‘only while
assigned’’.
221
SEC. 907. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DE-
FENSE UNIVERSITY.
(a) IN GENERAL.—Section 2605 of title 10, United
States Code, is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ after ‘‘administra-
tion of’’; and
(B) by inserting before the period at the
end of the first sentence ‘‘, or (2) the National
Defense University’’;
(2) in subsection (b)—
(A) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(B) by striking ‘‘subsection (a)’’ and in-
serting ‘‘subsection (a)(1)’’;
(C) by designating the last sentence as
paragraph (3) and in that sentence by inserting
‘‘or for the benefit or use of the National De-
fense University, as the case may be,’’ after
‘‘schools,’’; and
(D) by inserting before paragraph (3), as
designated by subparagraph (C), the following:
‘‘(2) There is established in the Treasury a fund to
be known as the ‘National Defense University Gift Fund’.
Gifts of money, and the proceeds of the sale of property,
received under subsection (a)(2) shall be deposited in the
Fund.’’;
222
(3) in subsection (d)(1)(A), by inserting ‘‘and
the National Defense University Gift Fund’’ before
the semicolon; and
(4) by adding at the end the following new sub-
section:
‘‘(h) In this section, the term ‘National Defense Uni-
versity’ includes any school or other component of the Na-
tional Defense University.’’.
(b) CLERICAL AMENDMENT.—(1) The heading of
such section is amended to read as follows:
‘‘§ 2605. Acceptance of gifts for defense dependents’
schools and National Defense University’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 151 of such title is
amended to read as follows:
‘‘2605. Acceptance of gifts for defense dependents’ schools and National Defense
University.’’.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) Upon determination by the Secretary of Defense that
such action is necessary in the national interest, the Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 2003 between any such authorizations for that
223
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and be
available for the same purposes as the authorization to
which transferred.
(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section
may not exceed $2,000,000,000.
(b) LIMITATIONS.—The authority provided by this
section to transfer authorizations—
(1) may only be used to provide authority for
items that have a higher priority than the items
from which authority is transferred; and
(2) may not be used to provide authority for an
item that has been denied authorization by Con-
gress.
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the
amount authorized for the account to which the amount
is transferred by an amount equal to the amount trans-
ferred.
(d) NOTICE
TO CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under
subsection (a).
224
SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 2002.
(a) DOD AUTHORIZATIONS.—Amounts authorized to
be appropriated to the Department of Defense for fiscal
year 2002 in the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107–107) are hereby ad-
justed, with respect to any such authorized amount, by
the amount by which appropriations pursuant to such au-
thorization are increased (by a supplemental appropria-
tion) or decreased (by a rescission), or both, or are in-
creased by a transfer of funds, pursuant to the following:
(1) Chapter 3 of the Emergency Supplemental
Act, 2002 (division B of Public Law 107–117; 115
Stat. 2299).
(2) Any Act enacted after May 1, 2002, making
supplemental appropriations for fiscal year 2002 for
the military functions of the Department of Defense.
(b) NNSA AUTHORIZATIONS.—Amounts authorized
to be appropriated to the Department of Energy for fiscal
year 2002 in the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107–107) are hereby ad-
justed, with respect to any such authorized amount, by
the amount by which appropriations pursuant to such au-
thorization are increased (by a supplemental appropria-
tion) or decreased (by a rescission), or both, or are in-
creased by a transfer of funds, pursuant to the following:
225
(1) Chapter 5 of the Emergency Supplemental
Act, 2002 (division B of Public Law 107–117; 115
Stat. 2307).
(2) Any Act enacted after May 1, 2002, making
supplemental appropriations for fiscal year 2002 for
the atomic energy defense activities of the Depart-
ment of Energy.
(c) LIMITATION ON TRANSFERS PENDING SUBMIS-
SION OF REPORT.—Any amount provided for the Depart-
ment of Defense for fiscal year 2002 through a so-called
‘transfer account’’, including the Defense Emergency Re-
sponse Fund or any other similar account, may be trans-
ferred to another account for obligation only after the Sec-
retary of Defense submits to the congressional defense
committees a report stating, for each such transfer, the
amount of the transfer, the appropriation account to
which the transfer is to be made, and the specific purpose
for which the transferred funds will be used.
(d) EMERGENCY DESIGNATION REQUIREMENT.—(1)
In the case of a pending contingent emergency supple-
mental appropriation for the military functions of the De-
partment of Defense or the atomic energy defense activi-
ties of the Department of Energy, an adjustment may be
made under subsection (a) or (b) in the amount of an au-
thorization of appropriations by reason of that supple-
226
mental appropriation only if, and to the extent that, the
President transmits to Congress an official budget request
for that appropriation that designates the entire amount
requested as an emergency requirement.
(2) For purposes of this subsection, the term ‘‘contin-
gent emergency supplemental appropriation’’ means a
supplemental appropriation that—
(A) is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(A) of the
Balanced Budget and Emergency Deficit Control
Act of 1985; and
(B) by law is available only to the extent that
the President transmits to the Congress an official
budget request for that appropriation that includes
designation of the entire amount of the request as
an emergency requirement.
SEC. 1003. UNIFORM STANDARDS THROUGHOUT DEPART-
MENT OF DEFENSE FOR EXPOSURE OF PER-
SONNEL TO PECUNIARY LIABILITY FOR LOSS
OF GOVERNMENT PROPERTY.
(a) EXTENSION OF ARMY AND AIR FORCE REPORT-
OF-SURVEY PROCEDURES TO NAVY AND MARINE CORPS
AND ALL DOD CIVILIAN EMPLOYEES.—(1) Chapter 165
of title 10, United States Code, is amended by adding at
the end the following new section:
227
‘‘§ 2787. Reports of survey
‘‘(a) REGULATIONS.—Under such regulations as the
Secretary of Defense may prescribe, any officer of the
Army, Navy, Air Force, or Marine Corps or any civilian
employee of the Department of Defense designated by the
Secretary may act upon reports of surveys and vouchers
pertaining 
to 
the 
loss, 
spoilage, 
unserviceability,
unsuitability, or destruction of, or damage to, property of
the United States under the control of the Department
of Defense.
‘‘(b) FINALITY OF ACTION.—Action taken under sub-
section (a) is final, except that action holding a person
pecuniarily liable for loss, spoilage, destruction, or damage
is not final until approved by the Secretary.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2787. Reports of survey.’’.
(b) EXTENSION TO MEMBERS OF THE NAVY AND
MARINE CORPS OF PAY DEDUCTION AUTHORITY PER-
TAINING TO DAMAGE OR REPAIR OF ARMS AND EQUIP-
MENT .—Section 1007(e) of title 37, United States Code,
is amended by striking ‘‘Army or the Air Force’’ and in-
serting ‘‘Army, Navy, Air Force, or Marine Corps’’.
229
member’s duties for providing to a certifying official of
the Department of Defense information, data, or services
that are directly relied upon by the certifying official in
the certification of vouchers for payment.
‘‘(b) PECUNIARY LIABILITY.—(1) The Secretary of
Defense may impose pecuniary liability on a departmental
accountable official to the extent that an illegal, improper,
or incorrect payment results from the information, data,
or services that that official provides to a certifying official
and upon which the certifying official directly relies in cer-
tifying the voucher supporting that payment.
‘‘(2) The pecuniary liability of a departmental ac-
countable official under this subsection for such an illegal,
improper, or incorrect payment is joint and several with
that of any other officials who are pecuniarily liable for
such payment.
‘‘(c) RELIEF FROM LIABILITY.—The Secretary of
Defense shall relieve a departmental accountable official
from liability under subsection (b) if the Secretary deter-
mines that the illegal, improper, or incorrect payment was
not the result of fault or negligence by that official.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2773 the following new
item:
‘‘2773a. Departmental accountable officials.’’.
230
SEC. 1005. IMPROVEMENTS IN PURCHASE CARD MANAGE-
MENT.
(a) IN GENERAL.—Section 2784 of title 10, United
States Code, is amended to read as follows:
‘‘§ 2784. Management of purchase cards
‘‘(a) MANAGEMENT OF PURCHASE CARDS.—The Sec-
retary of Defense, acting through the Under Secretary of
Defense (Comptroller), shall prescribe regulations gov-
erning the use and control of all purchase cards and con-
venience checks that are issued to Department of Defense
personnel for official use. Those regulations shall be con-
sistent with regulations that apply Government-wide re-
garding use of purchase cards by Government personnel
for official purposes.
‘‘(b) REQUIRED SAFEGUARDS AND INTERNAL CON-
TROLS.—Regulations under subsection (a) shall include
safeguards and internal controls to ensure the following:
‘‘(1) That there is a record in the Department
of Defense of each holder of a purchase card issued
by the Department of Defense for official use, anno-
tated with the limitations on amounts that are appli-
cable to the use of each such card by that purchase
card holder.
‘‘(2) That the holder of a purchase card and
each official with authority to authorize expenditures
charged to the purchase card are responsible for—
231
‘‘(A) reconciling the charges appearing on
each statement of account for that purchase
card with receipts and other supporting docu-
mentation; and
‘‘(B) forwarding that statement after being
so reconciled to the designated disbursing office
in a timely manner.
‘‘(3) That any disputed purchase card charge,
and any discrepancy between a receipt and other
supporting documentation and the purchase card
statement of account, is resolved in the manner pre-
scribed in the applicable Government-wide purchase
card contract entered into by the Administrator of
General Services.
‘‘(4) That payments on purchase card accounts
are made promptly within prescribed deadlines to
avoid interest penalties.
‘‘(5) That rebates and refunds based on prompt
payment on purchase card accounts are properly re-
corded.
‘‘(6) That records of each purchase card trans-
action (including records on associated contracts, re-
ports, accounts, and invoices) are retained in accord-
ance with standard Government policies on the dis-
position of records.
232
‘‘(7) That an annual review is performed of the
use of purchase cards issued by the Department of
Defense to determine whether each purchase card
holder has a need for the purchase card.
‘‘(8) That the Inspectors General of the De-
partment of Defense and the military services per-
form periodic audits with respect to the use of pur-
chase cards issued by the Department of Defense to
ensure that such use is in compliance with regula-
tions.
‘‘(9) That appropriate annual training is pro-
vided to each purchase card holder and each official
with responsibility for overseeing the use of purchase
cards issued by the Department of Defense.
‘‘(c) PENALTIES FOR VIOLATIONS.—The Secretary
shall provide in the regulations prescribed under sub-
section (a)—
‘‘(1) that procedures are implemented providing
for appropriate punishment of employees of the De-
partment of Defense for violations of such regula-
tions and for negligence, misuse, abuse, or fraud
with respect to a purchase card, including dismissal
in appropriate cases; and
‘‘(2) that a violation of such regulations by a
person subject to chapter 47 of this title (the Uni-
233
form Code of Military Justice) is punishable as a
violation of section 892 of this title (article 92 of the
Uniform Code of Military Justice).’’.
(b) CLERICAL AMENDMENT.—The item relating to
section 2784 in the table of sections at the beginning of
chapter 165 of such title is amended to read as follows:
‘‘2784. Management of purchase cards.’’.
SEC. 1006. AUTHORITY TO TRANSFER FUNDS WITHIN A
MAJOR ACQUISITION PROGRAM FROM PRO-
CUREMENT TO RDT&E.
(a) PROGRAM FLEXIBILITY.—(1) Chapter 131 of
title 10, United States Code, is amended by inserting after
section 2214 the following new section:
‘‘§ 2214a. Transfer of funds: transfers from procure-
ment accounts to research and develop-
ment accounts for major acquisition pro-
grams
‘‘(a) TRANSFER AUTHORITY WITHIN MAJOR PRO-
GRAMS.—Subject to subsection (b), the Secretary of De-
fense may transfer amounts provided in an appropriation
Act for procurement for a covered acquisition program to
amounts provided in the same appropriation Act for re-
search, development, test, and evaluation for that pro-
gram.
‘‘(b) CONGRESSIONAL NOTICE-AND-WAIT.—A trans-
fer may be made under this section only after—
234
‘‘(1) the Secretary submits to the congressional
defense committees notice in writing of the Sec-
retary’s intent to make such transfer, together with
the Secretary’s justification for the transfer; and
‘‘(2) a period of 30 days has elapsed following
the date of such notification.
‘‘(c) LIMITATIONS.—From amounts appropriated for
the Department of Defense for any fiscal year for
procurement—
‘‘(1) the total amount transferred under this
section may not exceed $250,000,000; and
‘‘(2) the total amount so transferred for any ac-
quisition program may not exceed $20,000,000.
‘‘(d) COVERED ACQUISITION PROGRAMS.—In this
section, the term ‘covered acquisition program’ means an
acquisition program of the Department of Defense that
is—
‘‘(A) a major defense acquisition program for
purposes of chapter 144 of this title; or
‘‘(B) any other acquisition program of the De-
partment of Defense—
‘‘(i) that is designated by the Secretary of
Defense as a covered acquisition program for
purposes of this section; or