H. R. 5631—12
vehicles but not to exceed $255,000 per vehicle; expansion of public 
and private plants, equipment, and installation thereof in such 
plants, erection of structures, and acquisition of land for the fore-
going purposes, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval 
of title; reserve plant and Government and contractor-owned equip-
ment layaway, $2,903,292,000, to remain available for obligation 
until September 30, 2009. 
NATIONAL GUARD AND RESERVE EQUIPMENT 
For procurement of aircraft, missiles, tracked combat vehicles, 
ammunition, other weapons, and other procurement for the reserve 
components of the Armed Forces, $290,000,000, to remain available 
for obligation until September 30, 2009: Provided, That the Chiefs 
of the Reserve and National Guard components shall, not later 
than 30 days after the enactment of this Act, individually submit 
to the congressional defense committees the modernization priority 
assessment for their respective Reserve or National Guard compo-
nent. 
DEFENSE PRODUCTION ACT PURCHASES 
For activities by the Department of Defense pursuant to sec-
tions 108, 301, 302, and 303 of the Defense Production Act of 
1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), $63,184,000, 
to remain available until expended. 
TITLE IV 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY 
For expenses necessary for basic and applied scientific research, 
development, 
test 
and 
evaluation, 
including 
maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$11,054,958,000, to remain available for obligation until September 
30, 2008. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY 
For expenses necessary for basic and applied scientific research, 
development, 
test 
and 
evaluation, 
including 
maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$18,673,894,000, to remain available for obligation until September 
30, 2008: Provided, That funds appropriated in this paragraph 
which are available for the V–22 may be used to meet unique 
operational requirements of the Special Operations Forces: Provided 
further, That funds appropriated in this paragraph shall be avail-
able for the Cobra Judy program. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE 
For expenses necessary for basic and applied scientific research, 
development, 
test 
and 
evaluation, 
including 
maintenance, 
rehabilitation, lease, and operation of facilities and equipment,
H. R. 5631—13
$24,516,276,000, to remain available for obligation until September 
30, 2008. 
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE 
For expenses of activities and agencies of the Department of 
Defense (other than the military departments), necessary for basic 
and applied scientific research, development, test and evaluation; 
advanced research projects as may be designated and determined 
by the Secretary of Defense, pursuant to law; maintenance, 
rehabilitation, lease, and operation of facilities and equipment, 
$21,291,056,000, to remain available for obligation until September 
30, 2008. 
OPERATIONAL TEST AND EVALUATION, DEFENSE 
For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and Evalua-
tion, in the direction and supervision of operational test and evalua-
tion, including initial operational test and evaluation which is con-
ducted prior to, and in support of, production decisions; joint oper-
ational testing and evaluation; and administrative expenses in 
connection therewith, $185,420,000, to remain available for obliga-
tion until September 30, 2008. 
TITLE V 
REVOLVING AND MANAGEMENT FUNDS 
DEFENSE WORKING CAPITAL FUNDS 
For the Defense Working Capital Funds, $1,345,998,000. 
NATIONAL DEFENSE SEALIFT FUND 
For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve Fleet, 
as established by section 11 of the Merchant Ship Sales Act of 
1946 (50 U.S.C. App. 1744), and for the necessary expenses to 
maintain and preserve a U.S.-flag merchant fleet to serve the 
national security needs of the United States, $1,071,932,000, to 
remain available until expended: Provided, That none of the funds 
provided in this paragraph shall be used to award a new contract 
that provides for the acquisition of any of the following major 
components unless such components are manufactured in the 
United States: auxiliary equipment, including pumps, for all ship-
board services; propulsion system components (that is; engines, 
reduction gears, and propellers); shipboard cranes; and spreaders 
for shipboard cranes: Provided further, That the exercise of an 
option in a contract awarded through the obligation of previously 
appropriated funds shall not be considered to be the award of 
a new contract: Provided further, That the Secretary of the military 
department responsible for such procurement may waive the restric-
tions in the first proviso on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of Rep-
resentatives and the Senate that adequate domestic supplies are 
not available to meet Department of Defense requirements on a
H. R. 5631—14
timely basis and that such an acquisition must be made in order 
to acquire capability for national security purposes. 
PENTAGON RESERVATION MAINTENANCE REVOLVING FUND 
For the Pentagon Reservation Maintenance Revolving Fund, 
$18,500,000, to remain available until September 30, 2011. 
TITLE VI 
OTHER DEPARTMENT OF DEFENSE PROGRAMS 
CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY 
For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical agents 
and munitions, to include construction of facilities, in accordance 
with the provisions of section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521), and for the destruction 
of other chemical warfare materials that are not in the chemical 
weapon stockpile, $1,277,304,000, of which $1,046,290,000 shall 
be for Operation and maintenance; $231,014,000 shall be for 
Research, development, test and evaluation, of which $215,944,000 
shall only be for the Assembled Chemical Weapons Alternatives 
(ACWA) program, to remain available until September 30, 2008; 
and no less than $111,283,000 shall be for the Chemical Stockpile 
Emergency Preparedness Program, of which $41,074,000 shall be 
for activities on military installations and of which $70,209,000, 
to remain available until September 30, 2008, shall be to assist 
State and local governments. 
DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE 
(INCLUDING TRANSFER OF FUNDS) 
For drug interdiction and counter-drug activities of the Depart-
ment of Defense, for transfer to appropriations available to the 
Department of Defense for military personnel of the reserve compo-
nents serving under the provisions of title 10 and title 32, United 
States Code; for Operation and maintenance; for Procurement; and 
for Research, development, test and evaluation, $977,632,000: Pro-
vided, That the funds appropriated under this heading shall be 
available for obligation for the same time period and for the same 
purpose as the appropriation to which transferred: Provided further, 
That upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this appropriation: 
Provided further, That the transfer authority provided under this 
heading is in addition to any other transfer authority contained 
elsewhere in this Act. 
OFFICE OF THE INSPECTOR GENERAL 
For expenses and activities of the Office of the Inspector Gen-
eral in carrying out the provisions of the Inspector General Act 
of 1978, as amended, $216,297,000, of which $214,897,000 shall 
be for Operation and maintenance, of which not to exceed $700,000 
is available for emergencies and extraordinary expenses to be
H. R. 5631—15
expended on the approval or authority of the Inspector General, 
and payments may be made on the Inspector General’s certificate 
of necessity for confidential military purposes; and of which 
$1,400,000, to remain available until September 30, 2009, shall 
be for Procurement. 
TITLE VII 
RELATED AGENCIES 
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY 
SYSTEM FUND 
For payment to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain the proper funding level 
for continuing the operation of the Central Intelligence Agency 
Retirement and Disability System, $256,400,000. 
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Intelligence Community Manage-
ment Account, $621,611,000, of which $36,268,000 for the Advanced 
Research and Development Committee shall remain available until 
September 30, 2008: Provided, That of the funds appropriated under 
this heading, $39,000,000 shall be transferred to the Department 
of Justice for the National Drug Intelligence Center to support 
the Department of Defense’s counter-drug intelligence responsibil-
ities, and of the said amount, $1,500,000 for Procurement shall 
remain available until September 30, 2009 and $1,000,000 for 
Research, development, test and evaluation shall remain available 
until September 30, 2008: Provided further, That the National 
Drug Intelligence Center shall maintain the personnel and technical 
resources to provide timely support to law enforcement authorities 
and the intelligence community by conducting document and com-
puter exploitation of materials collected in Federal, State, and local 
law enforcement activity associated with counter-drug, counter-ter-
rorism, and national security investigations and operations. 
TITLE VIII 
GENERAL PROVISIONS 
SEC. 8001. No part of any appropriation contained in this 
Act shall be used for publicity or propaganda purposes not author-
ized by the Congress. 
SEC. 8002. During the current fiscal year, provisions of law 
prohibiting the payment of compensation to, or employment of, 
any person not a citizen of the United States shall not apply 
to personnel of the Department of Defense: Provided, That salary 
increases granted to direct and indirect hire foreign national 
employees of the Department of Defense funded by this Act shall 
not be at a rate in excess of the percentage increase authorized 
by law for civilian employees of the Department of Defense whose 
pay is computed under the provisions of section 5332 of title 5, 
United States Code, or at a rate in excess of the percentage increase 
provided by the appropriate host nation to its own employees,
H. R. 5631—16
whichever is higher: Provided further, That this section shall not 
apply to Department of Defense foreign service national employees 
serving at United States diplomatic missions whose pay is set 
by the Department of State under the Foreign Service Act of 1980: 
Provided further, That the limitations of this provision shall not 
apply to foreign national employees of the Department of Defense 
in the Republic of Turkey. 
SEC. 8003. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current fiscal 
year, unless expressly so provided herein. 
SEC. 8004. No more than 20 percent of the appropriations 
in this Act which are limited for obligation during the current 
fiscal year shall be obligated during the last 2 months of the 
fiscal year: Provided, That this section shall not apply to obligations 
for support of active duty training of reserve components or summer 
camp training of the Reserve Officers’ Training Corps. 
(TRANSFER OF FUNDS) 
SEC. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, transfer 
not to exceed $4,500,000,000 of working capital funds of the Depart-
ment of Defense or funds made available in this Act to the Depart-
ment of Defense for military functions (except military construction) 
between such appropriations or funds or any subdivision thereof, 
to be merged with and to be available for the same purposes, 
and for the same time period, as the appropriation or fund to 
which transferred: Provided, That such authority to transfer may 
not be used unless for higher priority items, based on unforeseen 
military requirements, than those for which originally appropriated 
and in no case where the item for which funds are requested 
has been denied by the Congress: Provided further, That the Sec-
retary of Defense shall notify the Congress promptly of all transfers 
made pursuant to this authority or any other authority in this 
Act: Provided further, That no part of the funds in this Act shall 
be available to prepare or present a request to the Committees 
on Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where the 
item for which reprogramming is requested has been denied by 
the Congress: Provided further, That a request for multiple 
reprogrammings of funds using authority provided in this section 
must be made prior to June 30, 2007: Provided further, That trans-
fers among military personnel appropriations shall not be taken 
into account for purposes of the limitation on the amount of funds 
that may be transferred under this section: Provided further, That 
no obligation of funds may be made pursuant to section 1206 
of Public Law 109–163 (or any successor provision) unless the 
Secretary of Defense has notified the congressional defense commit-
tees prior to any such obligation. 
(TRANSFER OF FUNDS) 
SEC. 8006. During the current fiscal year, cash balances in 
working capital funds of the Department of Defense established 
pursuant to section 2208 of title 10, United States Code, may 
be maintained in only such amounts as are necessary at any time
H. R. 5631—17
for cash disbursements to be made from such funds: Provided, 
That transfers may be made between such funds: Provided further, 
That transfers may be made between working capital funds and 
the ‘‘Foreign Currency Fluctuations, Defense’’ appropriation and 
the ‘‘Operation and Maintenance’’ appropriation accounts in such 
amounts as may be determined by the Secretary of Defense, with 
the approval of the Office of Management and Budget, except that 
such transfers may not be made unless the Secretary of Defense 
has notified the Congress of the proposed transfer. Except in 
amounts equal to the amounts appropriated to working capital 
funds in this Act, no obligations may be made against a working 
capital fund to procure or increase the value of war reserve material 
inventory, unless the Secretary of Defense has notified the Congress 
prior to any such obligation. 
SEC. 8007. Funds appropriated by this Act may not be used 
to initiate a special access program without prior notification 30 
calendar days in advance to the congressional defense committees. 
SEC. 8008. None of the funds provided in this Act shall be 
available to initiate: (1) a multiyear contract that employs economic 
order quantity procurement in excess of $20,000,000 in any 1 year 
of the contract or that includes an unfunded contingent liability 
in excess of $20,000,000; or (2) a contract for advance procurement 
leading to a multiyear contract that employs economic order 
quantity procurement in excess of $20,000,000 in any 1 year, unless 
the congressional defense committees have been notified at least 
30 days in advance of the proposed contract award: Provided, That 
no part of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the limits 
of the Government’s liability: Provided further, That no part of 
any appropriation contained in this Act shall be available to initiate 
multiyear procurement contracts for any systems or component 
thereof if the value of the multiyear contract would exceed 
$500,000,000 unless specifically provided in this Act: Provided fur-
ther, That no multiyear procurement contract can be terminated 
without 10-day prior notification to the congressional defense 
committees: Provided further, That the execution of multiyear 
authority shall require the use of a present value analysis to deter-
mine lowest cost compared to an annual procurement: Provided 
further, That none of the funds provided in this Act may be used 
for a multiyear contract executed after the date of the enactment 
of this Act unless in the case of any such contract—
(1) the Secretary of Defense has submitted to Congress 
a budget request for full funding of units to be procured through 
the contract and, in the case of a contract for procurement 
of aircraft, that includes, for any aircraft unit to be procured 
through the contract for which procurement funds are requested 
in that budget request for production beyond advance procure-
ment activities in the fiscal year covered by the budget, full 
funding of procurement of such unit in that fiscal year; 
(2) cancellation provisions in the contract do not include 
consideration of recurring manufacturing costs of the contractor 
associated with the production of unfunded units to be delivered 
under the contract; 
(3) the contract provides that payments to the contractor 
under the contract shall not be made in advance of incurred 
costs on funded units; and
H. R. 5631—18
(4) the contract does not provide for a price adjustment 
based on a failure to award a follow-on contract. 
Funds appropriated in title III of this Act may be used for 
a multiyear procurement contract as follows: 
C–17 Globemaster; F–22A; MH–60R Helicopters; MH–60R Heli-
copter mission equipment; and V–22 Osprey. 
SEC. 8009. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby appro-
priated pursuant to section 401 of title 10, United States Code, 
for humanitarian and civic assistance costs under chapter 20 of 
title 10, United States Code. Such funds may also be obligated 
for humanitarian and civic assistance costs incidental to authorized 
operations and pursuant to authority granted in section 401 of 
chapter 20 of title 10, United States Code, and these obligations 
shall be reported as required by section 401(d) of title 10, United 
States Code: Provided, That funds available for operation and 
maintenance shall be available for providing humanitarian and 
similar assistance by using Civic Action Teams in the Trust Terri-
tories of the Pacific Islands and freely associated states of Micro-
nesia, pursuant to the Compact of Free Association as authorized 
by Public Law 99–239: Provided further, That upon a determination 
by the Secretary of the Army that such action is beneficial for 
graduate medical education programs conducted at Army medical 
facilities located in Hawaii, the Secretary of the Army may authorize 
the provision of medical services at such facilities and transpor-
tation to such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam. 
SEC. 8010. (a) During fiscal year 2007, the civilian personnel 
of the Department of Defense may not be managed on the basis 
of any end-strength, and the management of such personnel during 
that fiscal year shall not be subject to any constraint or limitation 
(known as an end-strength) on the number of such personnel who 
may be employed on the last day of such fiscal year. 
(b) The fiscal year 2008 budget request for the Department 
of Defense as well as all justification material and other documenta-
tion supporting the fiscal year 2008 Department of Defense budget 
request shall be prepared and submitted to the Congress as if 
subsections (a) and (b) of this provision were effective with regard 
to fiscal year 2008. 
(c) Nothing in this section shall be construed to apply to military 
(civilian) technicians. 
SEC. 8011. None of the funds made available by this Act shall 
be used in any way, directly or indirectly, to influence congressional 
action on any legislation or appropriation matters pending before 
the Congress. 
SEC. 8012. None of the funds appropriated by this Act shall 
be available for the basic pay and allowances of any member of 
the Army participating as a full-time student and receiving benefits 
paid by the Secretary of Veterans Affairs from the Department 
of Defense Education Benefits Fund when time spent as a full-
time student is credited toward completion of a service commitment: 
Provided, That this section shall not apply to those members who 
have reenlisted with this option prior to October 1, 1987: Provided 
further, That this section applies only to active components of 
the Army.
H. R. 5631—19
SEC. 8013. (a) LIMITATION
ON CONVERSION
TO CONTRACTOR 
PERFORMANCE.—None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity or 
function of the Department of Defense that, on or after the date 
of the enactment of this Act, is performed by more than 10 Depart-
ment of Defense civilian employees unless—
(1) the conversion is based on the result of a public-private 
competition that includes a most efficient and cost effective 
organization plan developed by such activity or function; 
(2) the Competitive Sourcing Official determines that, over 
all performance periods stated in the solicitation of offers for 
performance of the activity or function, the cost of performance 
of the activity or function by a contractor would be less costly 
to the Department of Defense by an amount that equals or 
exceeds the lesser of—
(A) 10 percent of the most efficient organization’s per-
sonnel-related costs for performance of that activity or func-
tion by Federal employees; or 
(B) $10,000,000; and 
(3) the contractor does not receive an advantage for a 
proposal that would reduce costs for the Department of Defense 
by—
(A) not making an employer-sponsored health insur-
ance plan available to the workers who are to be employed 
in the performance of that activity or function under the 
contract; or 
(B) offering to such workers an employer-sponsored 
health benefits plan that requires the employer to con-
tribute less towards the premium or subscription share 
than the amount that is paid by the Department of Defense 
for health benefits for civilian employees under chapter 
89 of title 5, United States Code. 
(b) EXCEPTIONS.—
(1) The Department of Defense, without regard to sub-
section (a) of this section or subsection (a), (b), or (c) of section 
2461 of title 10, United States Code, and notwithstanding any 
administrative regulation, requirement, or policy to the con-
trary shall have full authority to enter into a contract for 
the performance of any commercial or industrial type function 
of the Department of Defense that—
(A) is included on the procurement list established 
pursuant to section 2 of the Javits-Wagner-O’Day Act (41 
U.S.C. 47); 
(B) is planned to be converted to performance by a 
qualified nonprofit agency for the blind or by a qualified 
nonprofit agency for other severely handicapped individuals 
in accordance with that Act; or 
(C) is planned to be converted to performance by a 
qualified firm under at least 51 percent ownership by an 
Indian tribe, as defined in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 
450b(e)), or a Native Hawaiian Organization, as defined 
in section 8(a)(15) of the Small Business Act (15 U.S.C. 
637(a)(15)). 
(2) This section shall not apply to depot contracts or con-
tracts for depot maintenance as provided in sections 2469 and 
2474 of title 10, United States Code.
H. R. 5631—20
(c) TREATMENT OF CONVERSION.—The conversion of any activity 
or function of the Department of Defense under the authority pro-
vided by this section shall be credited toward any competitive 
or outsourcing goal, target, or measurement that may be established 
by statute, regulation, or policy and is deemed to be awarded 
under the authority of, and in compliance with, subsection (h) 
of section 2304 of title 10, United States Code, for the competition 
or outsourcing of commercial activities. 
(TRANSFER OF FUNDS) 
SEC. 8014. Funds appropriated in title III of this Act for the 
Department of Defense Pilot Mentor-Protege Program may be trans-
ferred to any other appropriation contained in this Act solely for 
the purpose of implementing a Mentor-Protege Program develop-
mental assistance agreement pursuant to section 831 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101–510; 10 U.S.C. 2302 note), as amended, under the 
authority of this provision or any other transfer authority contained 
in this Act. 
SEC. 8015. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its departments 
and agencies) of welded shipboard anchor and mooring chain 4 
inches in diameter and under unless the anchor and mooring chain 
are manufactured in the United States from components which 
are substantially manufactured in the United States: Provided, 
That for the purpose of this section manufactured will include 
cutting, heat treating, quality control, testing of chain and welding 
(including the forging and shot blasting process): Provided further, 
That for the purpose of this section substantially all of the compo-
nents of anchor and mooring chain shall be considered to be pro-
duced or manufactured in the United States if the aggregate cost 
of the components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or manufac-
tured outside the United States: Provided further, That when ade-
quate domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the service 
responsible for the procurement may waive this restriction on a 
case-by-case basis by certifying in writing to the Committees on 
Appropriations that such an acquisition must be made in order 
to acquire capability for national security purposes. 
SEC. 8016. None of the funds available to the Department 
of Defense may be used to demilitarize or dispose of M–1 Carbines, 
M–1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles, 
or M–1911 pistols. 
SEC. 8017. No more than $500,000 of the funds appropriated 
or made available in this Act shall be used during a single fiscal 
year for any single relocation of an organization, unit, activity 
or function of the Department of Defense into or within the National 
Capital Region: Provided, That the Secretary of Defense may waive 
this restriction on a case-by-case basis by certifying in writing 
to the congressional defense committees that such a relocation 
is required in the best interest of the Government. 
SEC. 8018. In addition to the funds provided elsewhere in 
this Act, $8,000,000 is appropriated only for incentive payments 
authorized by section 504 of the Indian Financing Act of 1974