I
105TH CONGRESS
1ST SESSION
H. R. 1778
To reform the Department of Defense.
IN THE HOUSE OF REPRESENTATIVES
JUNE 4, 1997
Mr. SPENCE (for himself and Mr. DELLUMS (by request)) introduced the fol-
lowing bill; which was referred to the Committee on National Security,
and in addition to the Committees on Commerce, and Transportation and
Infrastructure, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To reform the Department of Defense.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Defense Reform Act of 1997’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Congressional defense committees defined.
TITLE I—DEFENSE PERSONNEL REFORMS
Sec. 101. Reduction in personnel assigned to management headquarters and
headquarters support activities.
Sec. 102. Additional reduction in defense acquisition workforce.
Sec. 103. Change in required reduction in annuity for certain defense acquisi-
tion personnel who are separated before age 55.
Sec. 104. Separation pay for defense acquisition personnel.
Sec. 105. Personnel reductions in United States Transportation Command.
TITLE II—DEFENSE BUSINESS PRACTICES REFORMS
Subtitle A—Competitive Procurement Requirements
Sec. 201. Competitive procurement of finance and accounting services.
Sec. 202. Competitive procurement of services to dispose of surplus defense
property.
Sec. 203. Competitive procurement of functions performed by Defense Informa-
tion Systems Agency.
Sec. 204. Competitive procurement of printing and duplication services.
Sec. 205. Competitive procurement of certain ophthalmic services.
Sec. 206. Increased use by Defense Agencies of contractors to perform commer-
cial and industrial type functions.
Subtitle B—Reform of Conversion Process
Sec. 211. Development of standard forms regarding performance work state-
ment and request for proposal for conversion of certain oper-
ational functions of military installations.
Sec. 212. Study and notification requirements for conversion of commercial and
industrial type functions to contractor performance.
Sec. 213. Collection and retention of cost information data on contracted out
services and functions.
Subtitle C—Other Reforms
Sec. 221. Reduction in overhead costs of Inventory Control Points.
Sec. 222. Consolidation of procurement technical assistance and electronic com-
merce technical assistance.
Sec. 223. Permanent authority regarding conveyance of utility systems.
TITLE III—DEFENSE ENVIRONMENTAL REFORMS
Subtitle A—Superfund Reforms Generally
Sec. 301. Revision of methods of remediation.
Sec. 302. Requirement to consider reasonably anticipated future land use.
Sec. 303. Limitation on criminal liability of Federal officers, employees, and
agents.
Sec. 304. State role at Federal facilities.
Subtitle B—Superfund and Other Environmental Law Reforms Applicable to
Department of Defense or Department of Energy
Sec. 311. Standards for remedial actions conducted at defense facilities not on
the National Priorities List.
Sec. 312. Authority of Secretary of Defense and Secretary of Energy to termi-
nate long-term operation and maintenance of remedial actions
and corrective actions.
Sec. 313. Notification to Congress of costs of Department of Energy environ-
mental compliance agreements.
Sec. 314. Clean Air Act standards for military sources.
Sec. 315. Authority of Administrator of Environmental Protection Agency with
respect to application of Solid Waste Disposal Act to stored
military munitions.
TITLE IV—MISCELLANEOUS ADDITIONAL DEFENSE REFORMS
Sec. 401. Long-term charter contracts for acquisition of auxiliary vessels for
the Department of Defense.
Sec. 402. Fiber-optics based telecommunications linkage of military installa-
tions.
Sec. 403. Repeal of requirement for contractor guarantees on major weapon
systems.
Sec. 404. Requirements relating to micro-purchases of commercial items.
Sec. 405. Availability of simplified procedures to commercial item procure-
ments.
Sec. 406. Termination of the Armed Services Patent Advisory Board.
Sec. 407. Coordination of Department of Defense criminal investigations and
audits.
Sec. 408. Department of Defense boards, commissions, and advisory commit-
tees.
TITLE V—COMMISSION ON DEFENSE ORGANIZATION AND
STREAMLINING
Sec. 501. Establishment of Commission.
Sec. 502. Duties of Commission.
Sec. 503. Reports.
Sec. 504. Powers.
Sec. 505. Commission procedures.
Sec. 506. Personnel matters.
Sec. 507. Miscellaneous administrative provisions.
Sec. 508. Funding.
Sec. 509. Termination of the Commission.
SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on National Security and the
Committee on Appropriations of the House of Rep-
resentatives.
TITLE I—DEFENSE PERSONNEL
REFORMS
SEC. 101. REDUCTION IN PERSONNEL ASSIGNED TO MAN-
AGEMENT 
HEADQUARTERS 
AND 
HEAD-
QUARTERS SUPPORT ACTIVITIES.
(a) IN GENERAL.—(1) Chapter 3 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 130a. Management headquarters and headquarters
support activities personnel: limitation
‘‘(a) LIMITATION.—Effective October 1, 2001, the
number of management headquarters and headquarters
support activities personnel in the Department of Defense
may not exceed the 75 percent of the baseline number.
‘‘(b) PHASED REDUCTION.—The number of manage-
ment headquarters and headquarters support activities
personnel in the Department of Defense—
‘‘(1) as of October 1, 1998, may not exceed 90
percent of the baseline number;
‘‘(2) as of October 1, 1999, may not exceed 85
percent of the baseline number; and
‘‘(3) as of October 1, 2000, may not exceed 80
percent of the baseline number.
‘‘(c) BASELINE NUMBER.—In this section, the term
‘baseline number’ means the number of management
headquarters and headquarters support activities person-
nel in the Department of Defense as of October 1, 1997.
‘‘(d) MANAGEMENT HEADQUARTERS
AND HEAD-
QUARTERS
SUPPORT
ACTIVITIES
PERSONNEL
DE-
FINED.—In this section:
‘‘(1) The term ‘management headquarters and
headquarters support activities personnel’ means
military and civilian personnel of the Department of
Defense who are assigned to, or employed in, func-
tions in management headquarters activities or in
management headquarters support activities, except
that such term does not include personnel who are
OSD personnel (as such term is defined in section
143(c) of this title).
‘‘(2) The terms ‘management headquarters ac-
tivities’ and ‘management headquarters support ac-
tivities’ have the meanings given those terms in De-
partment of Defense Directive 5100.73, entitled ‘De-
partment of Defense Management Headquarters and
Headquarters Support Activities’, as in effect on No-
vember 12, 1996.
‘‘(e) LIMITATION
ON REASSIGNMENT
OF FUNC-
TIONS.—In carrying out reductions in the number of per-
sonnel assigned to, or employed in, management head-
quarters and headquarters support activities in order to
comply with this section, the Secretary of Defense and the
Secretaries of the military departments may not reassign
functions in order to evade the requirements of this sec-
tion.
‘‘(f) FLEXIBILITY.—If the Secretary of Defense de-
termines, and certifies to Congress, that the limitation in
subsection (b) with respect to any fiscal year would ad-
versely affect United States national security, the Sec-
retary may waive the limitation under that subsection with
respect to that fiscal year. If the Secretary of Defense de-
termines, and certifies to Congress, that the limitation in
subsection (a) during fiscal year 2001 would adversely af-
fect United States national security, the Secretary may
waive the limitation under that subsection with respect to
that fiscal year. The authority under this subsection may
be used only once, with respect to a single fiscal year.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘130a. Management headquarters and headquarters support activities personnel:
limitation.’’.
(b) IMPLEMENTATION REPORT.—Not later than Jan-
uary 15, 1998, the Secretary of Defense shall submit to
Congress a report—
‘‘(3) as of October 1, 2000, may not exceed the
baseline number reduced by 102,000.
‘‘(c) BASELINE NUMBER.—For purposes of this sec-
tion, the baseline number is the total number of defense
acquisition personnel as of October 1, 1997.
‘‘(d) DEFENSE
ACQUISITION
PERSONNEL
DE-
FINED.—(1) In this section, the term ‘defense acquisition
personnel’ means military and civilian personnel (other
than civilian personnel described in paragraph (2)) who
are assigned to, or employed in, acquisition organizations
of the Department of Defense (as specified in Department
of Defense Instruction numbered 5000.58 dated January
14, 1992).
‘‘(2) Such term does not include civilian employees
of the Department of Defense who are employed at a
maintenance depot.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1765. Limitation on number of personnel.’’.
(b) IMPLEMENTATION REPORT.—Not later than Jan-
uary 15, 1998, the Secretary of Defense shall submit to
Congress a report—
(1) containing a plan to achieve the personnel
reductions required by section 1765 of title 10,
United States Code, as added by subsection (a); and
(2) containing any recommendations (including
legislative proposals) that the Secretary considers
necessary to fully achieve such reductions.
(c) TECHNICAL REFERENCE CORRECTION.—Section
1721(c) of title 10, United States Code, is amended by
striking out ‘‘November 25, 1988’’ and inserting in lieu
thereof ‘‘November 12, 1996’’.
SEC. 103. CHANGE IN REQUIRED REDUCTION IN ANNUITY
FOR CERTAIN DEFENSE ACQUISITION PER-
SONNEL WHO ARE SEPARATED BEFORE AGE
55.
(a) ALTERNATIVE REDUCTION.—In the case of a ci-
vilian employee of the Department of Defense described
in subsection (b) who is separated during fiscal year 1998
in the manner described in section 8336(d) of title 5, Unit-
ed States Code, the resulting reduction in annuity re-
quired to be made under section 8339(h) of such title shall
be 1⁄12 of 1 percent for each full month the employee is
under 55 years of age at the date of separation (rather
than 1⁄6 of 1 percent).
(b) ELIGIBLE
DEFENSE
ACQUISITION
PERSON-
NEL.—A civilian employee of the Department of Defense
referred to in subsection (a) is a civilian employee who,
as of the date of separation—
(1) is covered by the definition of ‘‘defense ac-
quisition personnel’’ in section 1765(c) of title 10,
United States Code, as added by section 102;
(2) is serving in grade GS–13 of the General
Schedule or above; and
(3) is 50 years of age or older.
(c) EXCEPTION.—Subsection (a) shall not apply if
the civilian employee accepts separation pay—
(1) under section 5597 of title 5, United States
Code; or
(2) under section 104.
(d) REPORTING REQUIREMENTS.—(1) Not later than
March 31, 1998, the Secretary of Defense shall submit
to Congress a report specifying—
(A) the number of civilian employees of the De-
partment of Defense (by age and grade) who have
received the alternative annuity reduction authorized
by this section; and
(B) the anticipated number of such employees
who will receive the alternative annuity reduction
during fiscal year 1998.
(2) Not later than December 1, 1998, the Secretary
of Defense shall submit to Congress a final report covering
fiscal year 1998 and containing the information required
by paragraph (1)(A).
SEC. 104. SEPARATION PAY FOR DEFENSE ACQUISITION
PERSONNEL.
(a) AVAILABILITY OF SEPARATION PAY.—The Sec-
retary of Defense may offer separation pay under this sec-
tion to a civilian employee of the Department of Defense
who—
(1) is covered by the definition of ‘‘defense ac-
quisition personnel’’ in section 1765(c) of title 10,
United States Code, as added by section 102;
(2) is separated during fiscal year 1998 in the
manner described in section 8336(d) of title 5, Unit-
ed States Code; and
(3) does not receive separation pay under the
authority of section 5597 of title 5, United States
Code.
(b) PAYMENT, AMOUNT, AND TERMS.—Subsections
(d) and (g) of section 5597 of title 5, United States Code,
shall apply with respect to the manner in which, the
amount of, and terms under which separation pay is pro-
vided under this section.
(c) EFFECT ON OTHER SEPARATION PAY AUTHOR-
ITY.—The authority provided in this section may not be
used to reduce the extent to which separation pay is pro-
vided during fiscal year 1998 under section 5597 of title
5, United States Code, as proposed in the budget of the
President for fiscal year 1998 submitted to Congress pur-
suant to section 1105 of title 31, United States Code.
(d) RELATIONSHIP
TO OTHER SPECIAL AUTHOR-
ITY.—A civilian employee who receives separation pay
under this section may not also receive a change under
section 103 in the reduction otherwise made to the em-
ployee’s annuity under section 8339(h) of title 5, United
States Code.
(e) REPORT.—In the report required for fiscal year
1998 under section 4436(c) of the National Defense Au-
thorization Act for Fiscal Year 1993 (Public Law 102–
484; 5 U.S.C. 5597 note), the Secretary of Defense shall
include, as a separate portion of the report, information
on the manner in which the authority provided in this sec-
tion was implemented and the effectiveness and costs of
carrying out the authority.
SEC. 105. PERSONNEL REDUCTIONS IN UNITED STATES
TRANSPORTATION COMMAND.
(a) PURPOSE OF LIMITATION.—The purpose of the
limitation on the number of United States Transportation
Command personnel established by section 165(d) of title
10, United States Code, as added by subsection (b), is to
recognize and continue the effort of the Secretary of De-
fense to eliminate administrative duplication and ineffi-
ciencies in the United States Transportation Command.
(b) LIMITATION.—Section 165 of title 10, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d) LIMITATION ON UNITED STATES TRANSPOR-
TATION COMMAND PERSONNEL.—(1) Effective October 1,
1998, the number of United States Transportation Com-
mand personnel may not exceed 66,238.
‘‘(2) In this subsection, the term ‘United States
Transportation Command personnel’ means military and
civilian personnel who are assigned to, or employed in, the
United States Transportation Command (including the
components of that combatant command).’’.
(c) SOURCE OF REDUCTIONS.—In reducing the num-
ber of United States Transportation Command personnel
in order to meet the limitation required by section 165(d)
of title 10, United States Code, as added by subsection
(b), the Secretary of Defense shall limit such reductions
to United States Transportation Command personnel de-
scribed in paragraph (2).
(2) The United States Transportation Command per-
sonnel referred to in paragraph (1) are members of the
Armed Forces and civilian personnel of the Department
of Defense who are assigned to, or employed in, the United
States Transportation Command (including the compo-
nents of that combatant command) and who are in one
of the following occupational classifications established to
group similar occupations and work positions into a con-
sistent structure:
(A) Enlisted members in the Functional Sup-
port and Administration classification (designated as
occupational code 5XX), as described in Department
of Defense Instruction 1312.1, dated August 9,
1995, regarding ‘‘Department of Defense Occupa-
tional Information Collection and Reporting’’.
(B) Officers in the General Officers and Execu-
tives classification (designated as occupational code
1XX), Administrators (designated as occupational
code 7XX), and Supply, Procurement, and Allied Of-
ficers classification (designated as occupational code
8XX), as described in such instruction.
(C) Civilian personnel in the Program Manage-
ment classification (designated as occupational code
GS–0340), Accounting and Budget classification
(designated as occupational code GS–0500 and re-
lated codes), Business and Industry classification
(designated as occupational code GS–1100 and re-
lated codes), and Supply classification (designated as
occupational code GS–2000 and related codes), as
described in Office of Personnel Management docu-
ment El–12, dated November 1, 1995, entitled
‘‘Federal Occupational Groups’’.
TITLE II—DEFENSE BUSINESS
PRACTICES REFORMS
Subtitle A—Competitive
Procurement Requirements
SEC. 201. COMPETITIVE PROCUREMENT OF FINANCE AND
ACCOUNTING SERVICES.
(a) COMPETITIVE
PROCUREMENT
REQUIRED.—
Chapter 165 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 2784. Competitive procurement of finance and ac-
counting services
‘‘(a) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1998, the Secretary of
Defense shall competitively procure finance and account-
ing services for the Department of Defense, including non-
appropriated fund instrumentalities of the Department of
Defense. The Secretary shall establish procedures to con-
duct competitions among private-sector sources and the
Defense Finance and Accounting Service and other inter-
ested Federal agencies. Such procedures shall not permit
a component of the Defense Finance and Accounting Serv-
ice to compete against any other component of the Defense
Finance and Accounting Service to provide such finance
and accounting services.
‘‘(b) IMPROVEMENT OF COMPETITIVE ABILITY.—Be-
fore conducting a competition under subsection (a) for the
procurement of finance and accounting services that are
being provided by a component of the Defense Finance
and Accounting Service, the Secretary of Defense shall
provide the component with an opportunity to establish
its most efficient organization.
‘‘(c) REPORTING REQUIREMENTS.—Not later than
90 days after the end of each fiscal year in which finance
and accounting services are competitively procured under
subsection (a), the Secretary of Defense shall submit to
Congress a report specifying the total volume of finance
and accounting services procured by the Department of
Defense during that fiscal year—
‘‘(1) from sources within the Department of
Defense;
‘‘(2) from private-sector sources; and
‘‘(3) from other sources in the Federal Govern-
ment.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2784. Competitive procurement of finance and accounting services.’’.
SEC. 202. COMPETITIVE PROCUREMENT OF SERVICES TO
DISPOSE OF SURPLUS DEFENSE PROPERTY.
(a) COMPETITIVE PROCUREMENT REQUIRED.—(1)
Chapter 153 of title 10, United States Code, is amended
by inserting after section 2572 the following new section:
‘‘§ 2573. Competitive procurement of services to dis-
pose of surplus property
‘‘(a) COMPETITIVE PROCUREMENT OF SERVICES.—
Beginning not later than October 1, 1998, the Secretary
of Defense shall competitively procure services for the De-
partment of Defense in connection with the disposal of
surplus property at each site at which the Defense Reutili-
zation and Marketing Service operates. The Secretary
shall establish procedures to conduct competitions among
private-sector sources and the Defense Reutilization and
Marketing Service and other interested Federal agencies
for the performance of all such services at a particular
site.
‘‘(b) IMPROVEMENT OF COMPETITIVE ABILITY.—Be-
fore conducting a competition under subsection (a) for the
procurement of services described in such subsection that
are being provided by a component of the Defense Reutili-
zation and Marketing Service, the Secretary of Defense
shall provide the component with an opportunity to estab-
lish its most efficient organization.
‘‘(c) REPORTING REQUIREMENTS.—Not later than
90 days after the end of each fiscal year in which services
for the disposal of surplus property are competitively pro-
cured under subsection (a), the Secretary of Defense shall
submit to Congress a report specifying—
‘‘(1) the type and volume of such services pro-
cured by the Department of Defense during that fis-
cal year from the Defense Reutilization and Market-
ing Service and from other sources;
‘‘(2) the former sites of the Defense Reutiliza-
tion and Marketing Service operated during that fis-
cal year by contractors (other than the Defense Re-
utilization and Marketing Service); and
‘‘(3) the total amount of any fees paid by such
contractors in connection with the performance of
such services during that fiscal year.
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to alter the requirements regarding
the identification or demilitarization of an item of excess
property or surplus property of the Department of De-
fense before the disposal of the item.
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The term ‘surplus property’ means any
real or personal excess property which is not re-
quired for the needs and the discharge of the re-
sponsibilities of all Federal agencies and the disposal
of which is the responsibility of the Department of
Defense.
‘‘(2) The term ‘excess property’ means any real
or personal property under the control of the De-
partment of Defense which is not required for its
needs and the discharge of its responsibilities, as de-
termined by the Secretary of Defense.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2572 the following new item:
‘‘2573. Competitive procurement of services to dispose of surplus property.’’.
(b) IMPLEMENTATION
REPORT.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
Congress a report—
(1) containing a plan to implement the competi-
tive procurement requirements of section 2573 of
title 10, United States Code, as added by subsection
(a); and
(2) identifying other functions of the Defense
Reutilization and Marketing Service that the Sec-
retary considers suitable for performance by private-
sector sources.
SEC. 203. COMPETITIVE PROCUREMENT OF FUNCTIONS
PERFORMED 
BY 
DEFENSE 
INFORMATION
SYSTEMS AGENCY.
(a) COMPETITIVE PROCUREMENT REQUIRED.—(1)
Chapter 146 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 2474. Competitive procurement of information
services
‘‘(a) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1998, the Secretary of
Defense shall competitively procure those commercial and
industrial type functions performed before that date by the
Defense Information Systems Agency. The Secretary shall
establish procedures to conduct competitions among pri-
vate-sector sources and the Defense Information Systems
Agency and other interested Federal agencies.
‘‘(b) IMPROVEMENT OF COMPETITIVE ABILITY.—Be-
fore conducting a competition under subsection (a) for the
procurement of information services that are being pro-
vided by a component of the Defense Information Systems
Agency, the Secretary of Defense shall provide the compo-
nent with an opportunity to establish its most efficient or-
ganization.
‘‘(c) EXCEPTION FOR CLASSIFIED FUNCTIONS.—(1)
The requirement of subsection (a) shall not apply to the
procurement of services involving a classified function per-
formed by the Defense Information Systems Agency.
‘‘(2) In this subsection, the term ‘classified function’
means any telecommunications or information services
that—
‘‘(A) involve intelligence activities;
‘‘(B) involve cryptologic activities related to na-
tional security;
‘‘(C) involve command and control of military
forces;
‘‘(D) involve equipment that is an integral part
of a weapon or weapons system; or
‘‘(E) are critical to the direct fulfillment of mili-
tary or intelligence missions (other than routine ad-
ministrative and business applications, such as pay-
roll, finance, logistics, and personnel management
applications).
‘‘(d) REPORTING REQUIREMENTS.—Not later than
90 days after the end of each fiscal year in which services
are competitively procured under subsection (a), the Sec-
retary of Defense shall submit to Congress a report speci-
fying the type and volume of such services procured by
the Department of Defense during that fiscal year—
‘‘(1) from sources within the Department of
Defense;
‘‘(2) from private-sector sources; and
‘‘(3) from other sources in the Federal Govern-
ment.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2474. Competitive procurement of information services.’’.
(b) IMPLEMENTATION
REPORT.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
Congress a report—
(1) containing a plan to implement the competi-
tive procurement requirements of section 2474 of
title 10, United States Code, as added by subsection
(a);
(2) describing the services currently provided by
the Defense Information Systems Agency that will
be affected by such requirements; and
(3) describing the manner in which the Sec-
retary proposes to change the support infrastructure
of the Defense Information Systems Agency to meet
such requirements.
SEC. 204. COMPETITIVE PROCUREMENT OF PRINTING AND
DUPLICATION SERVICES.
(a) EXTENSION.—Subsection (a) of section 351 of
the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104–106; 110 Stat. 266) is amended—
(1) by striking out ‘‘and 1997’’ and inserting in
lieu thereof ‘‘through 1998’’; and
(2) by striking out ‘‘Defense Printing Service’’
and inserting in lieu thereof ‘‘Defense Automation
and Printing Service’’.
(b) PROHIBITION ON SURCHARGE FOR SERVICES.—
Such section is further amended by adding at the end the
following new subsection:
‘‘(d) 
PROHIBITION
ON
IMPOSITION
OF
SUR-
CHARGE.—The Defense Automation and Printing Service
may not impose a surcharge on any printing and duplica-
tion service for the Department of Defense that is pro-
cured from a source outside of the Department.’’.
SEC. 205. COMPETITIVE PROCUREMENT OF CERTAIN OPH-
THALMIC SERVICES.
(a) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1998, the Secretary of
Defense shall competitively procure from private-sector
sources, or other sources outside of the Department of De-
fense, all ophthalmic services related to the provision of
single vision and multivision eyeware for members of the
Armed Forces, retired members, and certain covered bene-
ficiaries under chapter 55 of title 10, United States Code,
who would otherwise receive such ophthalmic services
through the Department of Defense.
(b) EXCEPTION.—Subsection (a) shall not apply to
the extent that the Secretary of Defense determines that
the use of sources within the Department of Defense to
provide such ophthalmic services—
(1) is necessary to meet the readiness require-
ments of the Armed Forces; or
(2) is more cost effective.
(c) COMPLETION OF EXISTING ORDERS.—Subsection
(a) shall not apply to orders for ophthalmic services re-
ceived on or before September 30, 1998.
SEC. 206. INCREASED USE BY DEFENSE AGENCIES OF CON-
TRACTORS TO PERFORM COMMERCIAL AND
INDUSTRIAL TYPE FUNCTIONS.
(a) INCREASED USE REQUIRED.—Section 2461 of
title 10, United States Code, is amended—
(1) by redesignating subsection (g) as sub-
section (h); and
(2) by inserting after subsection (f) the follow-
ing new section:
‘‘(g) INCREASED USE
OF CONTRACTORS BY DE-
FENSE AGENCIES.—In each fiscal year beginning after
September 30, 1999, not less than 33 percent of the com-
mercial and industrial type functions of the Defense Agen-
cies shall be performed by private contractors. The Sec-
retary of Defense may achieve this goal before that date.’’.
(b) IMPLEMENTATION PLAN.—Not later than March
1, 1998, the Secretary of Defense shall submit to Congress
a plan to accomplish the increased rate of outsourcing re-
quired by subsection (g) of section 2461 of title 10, United
States Code, as added by subsection (a). The plan shall
identify the specific Defense Agency functions to be con-
sidered for contractor performance, the number of military
and civilian positions affected, and relevant milestones for
the outsourcing of the identified functions.
Subtitle B—Reform of Conversion
Process
SEC. 211. DEVELOPMENT OF STANDARD FORMS REGARD-
ING PERFORMANCE WORK STATEMENT AND
REQUEST FOR PROPOSAL FOR CONVERSION
OF CERTAIN OPERATIONAL FUNCTIONS OF
MILITARY INSTALLATIONS.
(a) STANDARD FORMS REQUIRED.—Chapter 146 of
title 10, United States Code, is amended by inserting after
section 2474, as added by section 203, the following new
section:
‘‘§ 2475. Military installations: use of standard forms
in conversion process
‘‘(a) STANDARDIZATION
OF REQUIREMENTS.—(1)
The Secretary of Defense shall develop standard forms (to
be known as a ‘standard performance work statement’ and
a ‘standard request for proposal’) to be used in the consid-
eration for conversion to contractor performance of those
commercial services and functions at military installations
that have been converted to contractor performance at a
rate of 50 percent or more, as determined under sub-
section (c).
‘‘(2) A separate standard form shall be developed for
each service and function covered by paragraph (1) and
the forms shall be used throughout the Department of De-
fense in lieu of the performance work statement and re-
quest for proposal otherwise required under the proce-
dures and requirements of Office of Management and
Budget Circular A–76 (or any successor administrative
regulation or policy).
‘‘(3) The Secretary shall develop and implement the
standard forms not later than October 1, 1998.
‘‘(b) INAPPLICABILITY OF ELEMENTS OF OMB CIR-
CULAR A–76.—On and after October 1, 1998, the proce-
dures and requirements of Office of Management and
Budget Circular A–76 regarding performance work state-
ments and requests for proposals shall not apply with re-
spect to the conversion to contractor performance at a
military installation of a service or function for which a
standard form is required under subsection (a).
‘‘(c) DETERMINATION OF CONTRACTOR PERFORM-
ANCE PERCENTAGE.—In determining the percentage at
which a particular commercial service or function at mili-
tary installations has been converted to contractor per-
formance, the Secretary of Defense shall take into consid-
eration all military installations and use the final estimate
of the percentage of contractor performance of services
and functions contained in the most recent commercial
and industrial activity inventory database established
under Office of Management and Budget Circular A–76.
‘‘(d) EFFECT ON OTHER LAWS.—Nothing in this sec-
tion shall be construed to supersede any other require-
ments or limitations, specifically contained in this chapter,
on the conversion to contractor performance of activities
performed by civilian employees of the Department of De-
fense.
‘‘(e) MILITARY INSTALLATION DEFINED.—In this
section, the term ‘military installation’ means a base,
camp, post, station, yard, center, homeport facility for any
ship, or other activity under the jurisdiction of the Depart-
ment of Defense, including any leased facility.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2474, as added by section
203, the following new item:
‘‘2475. Military installations: use of standard forms in conversion process.’’.
‘‘(B) An examination of the potential economic
effect on employees who would be affected by the
conversion, and the potential economic effect on the
local community and the United States if more than
75 employees perform the function.
‘‘(C) An examination of the effect of contract-
ing for performance of the function on the military
mission of the function.
‘‘(b) NOTIFICATION OF CONVERSION DECISION.—If,
as a result of the completion of a study under subsection
(a) regarding the possible conversion of a function to per-
formance by a private contractor, a decision is made to
convert the function to contractor performance, the Sec-
retary of Defense shall notify Congress of the conversion
decision. The notification shall—
‘‘(1) indicate that the study conducted regard-
ing conversion of the function to performance by a
private contractor has been completed;
‘‘(2) certify that the comparison required by
subsection (a)(2)(A) as part of the study dem-
onstrates that the performance of the function by a
private contractor will result in savings to the Gov-
ernment over the life of the contract;
‘‘(3) certify that the entire comparison is avail-
able for examination; and
‘‘(4) contain a timetable for completing conver-
sion of the function to contractor performance.’’.
(b) WAIVER FOR SMALL FUNCTIONS.—Subsection
(d) of such section is amended by striking out ‘‘45 or
fewer’’ and inserting in lieu thereof ‘‘20 or fewer’’.
SEC. 213. COLLECTION AND RETENTION OF COST INFOR-
MATION DATA ON CONTRACTED OUT SERV-
ICES AND FUNCTIONS.
(a) COLLECTION AND RETENTION REQUIRED.—Sec-
tion 2463 of title 10, United States Code, is amended—
(1) by redesignating subsections (a) and (b) as
subsections (b) and (c), respectively; and
(2) by inserting after the section heading the
following new subsection:
‘‘(a) REQUIREMENTS IN CONNECTION WITH CON-
VERSION TO CONTRACTOR PERFORMANCE.—With respect
to each contract converting the performance of a service
or function of the Department of Defense to contractor
performance (and any extension of such a contract), the
Secretary of Defense shall collect, during the term of the
contract or extension, but not to exceed five years, cost
information data regarding performance of the service or
function by private contractor employees. The Secretary
shall provide for the permanent retention of information
collected under this subsection.’’.
(b) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (b), as redesignated by sub-
section (a)(1)—
(A) by striking out the subsection heading
and inserting in lieu thereof ‘‘REQUIREMENTS
IN CONNECTION WITH RETURN TO EMPLOYEE
PERFORMANCE.—’’; and
(B) by striking out ‘‘to which this section
applies’’ and inserting in lieu thereof ‘‘described
in subsection (c),’’; and
(2) in subsection (c), as redesignated by sub-
section (a)(1)——
(A) by striking out the subsection heading
and inserting in lieu thereof ‘‘COVERED FISCAL
YEARS.—’’; and
(B) by striking out ‘‘This section’’ and in-
serting in lieu thereof ‘‘Subsection (b)’’.
(c) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 2463. Collection and retention of cost information
data on contracted out services and func-
tions
(2) The item relating to such section in the table of
sections at the beginning of chapter 146 of title 10, United
States Code, is amended to read as follows:
‘‘2463. Collection and retention of cost information data on contracted out serv-
ices and functions.’’.
Subtitle C—Other Reforms
SEC. 221. REDUCTION IN OVERHEAD COSTS OF INVENTORY
CONTROL POINTS.
(a) REDUCTION
IN COSTS REQUIRED.—The Sec-
retary of Defense shall take such actions as may be nec-
essary to reduce the annual overhead costs of the supply
management activities of the Defense Logistics Agency
and the military departments (known as Inventory Control
Points) so that the annual overhead costs are not more
than eight percent of annual net sales at standard price
by the Inventory Control Points.
(b) TIME TO ACHIEVE REDUCTION.—The Secretary
shall achieve the cost reductions required by subsection
(a) not later than September 30, 2000.
(c) IMPLEMENTATION PLAN.—Not later than March
1, 1998, the Secretary of Defense shall submit to Congress
a plan to achieve the reduction in overhead costs required
by subsection (a).
(d) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘overhead costs’’ means the total
expenses of the Inventory Control Points, exclud-
ing—
(A) annual materiel costs; and
(B) military and civilian personnel related
costs, defined as personnel compensation and
benefits under the March 1996 Department of
Defense Financial Management Regulations,
Volume 2A, Chapter 1, Budget Account Title
File (Object Classification Name/Code), object
classifications 200, 211, 220, 221, 222, and
301.
(2) The term ‘‘net sales at standard price’’ has
the meaning given that term in the March 1996 De-
partment of Defense Financial Management Regula-
tions, Volume 2B, Chapter 9, and displayed in ‘‘Ex-
hibit Fund—14 Revenue and Expenses’’ for the sup-
ply management business areas.
SEC. 222. CONSOLIDATION OF PROCUREMENT TECHNICAL
ASSISTANCE AND ELECTRONIC COMMERCE
TECHNICAL ASSISTANCE.
(a) CONSOLIDATION OF ASSISTANCE.—Chapter 142
of title 10, United States Code, is amended as follows:
(1) Sections 2412, 2414, 2417, and 2418 are
each amended by inserting ‘‘and electronic com-
merce’’ after ‘‘procurement’’ each place it appears.
(2) Section 2413 is amended—
(A) in subsection (b), by striking out ‘‘pro-
curement technical assistance’’ and inserting in
lieu thereof ‘‘both procurement technical assist-
ance and electronic commerce technical assist-
ance’’; and
(B) in subsection (c), by inserting ‘‘and
electronic commerce’’ after ‘‘procurement’’.
(b) REQUIREMENT TO USE COMPETITIVE PROCE-
DURES.—Section 2413 of such title is amended by adding
at the end the following new subsection:
‘‘(d) The Secretary shall use competitive procedures
in entering into cooperative agreements under subsection
(a).’’.
(c) LIMITATION ON USE OF FUNDS.—Section 2417
of such title is amended—
(1) by striking out ‘‘The Director’’ and insert-
ing in lieu thereof the following: ‘‘(b) ADMINISTRA-
TIVE COSTS.—The Director’’; and
(2) by inserting before subsection (b) (as des-
ignated by subparagraph (A)) the following:
‘‘(a) LIMITATION ON USE OF FUNDS.—In any fiscal
year the Secretary of Defense may use for the program
authorized by this chapter only funds specifically appro-
priated for the program for that fiscal year.’’.
(d) CLERICAL AMENDMENTS.—(1) The heading for
chapter 142 of such title is amended to read as follows:
‘‘CHAPTER 
142—PROCUREMENT 
AND
ELECTRONIC COMMERCE TECHNICAL
ASSISTANCE PROGRAM’’.
(2) The tables of chapters at the beginning of subtitle
A, and at the beginning of part IV of subtitle A, of such
title are each amended by striking out the item relating
to chapter 142 and inserting in lieu thereof the following:
‘‘142. Procurement and Electronic Commerce Technical
Assistance Program .............................................. 2411’’.
(3) The heading for section 2417 of such title is
amended to read as follows:
‘‘§ 2417. Funding provisions’’.
(4) The table of sections at the beginning of chapter
142 of such title is amended by striking out the item relat-
ing to section 2417 and inserting in lieu thereof the follow-
ing:
‘‘2417. Funding provisions.’’.
SEC. 223. PERMANENT AUTHORITY REGARDING CONVEY-
ANCE OF UTILITY SYSTEMS.
(a) IN GENERAL.—Chapter 159 of title 10, United
States Code, is amended by inserting after section 2687
the following new section:
‘‘§ 2688. Utility systems: permanent conveyance au-
thority
‘‘(a) CONVEYANCE AUTHORITY.—The Secretary of a
military department may convey a utility system, or part
of a utility system, under the jurisdiction of the Secretary
to a municipal, private, regional, district, or cooperative
utility company or other entity. The conveyance may con-
sist of all right, title, and interest of the United States
in the utility system or such lesser estate as the Secretary
considers appropriate to serve the interests of the United
States.
‘‘(b) UTILITY SYSTEM DEFINED.—In this section,
the term ‘utility system’ includes the following:
‘‘(1) Electrical generation and supply systems.
‘‘(2) Water supply and treatment systems.
‘‘(3) Wastewater collection and treatment sys-
tems.
‘‘(4) Steam or hot or chilled water generation
and supply systems.
‘‘(5) Natural gas supply systems.
‘‘(6) Sanitary landfills or lands to be used for
sanitary landfills.
‘‘(7) Similar utility systems.
‘‘(c) CONSIDERATION.—(1) The Secretary of a mili-
tary department may accept consideration received for a
conveyance under subsection (a) in the form of a cash pay-
ment or a reduction in utility rate charges for a period
of time sufficient to amortize the monetary value of the
utility system, including any real property interests, con-
veyed.
‘‘(2) Cash payments received shall be credited to an
appropriation account designated as appropriate by the
Secretary of Defense. Amounts so credited shall be avail-
able for the same time period as the appropriation credited
and shall be used only for the purposes authorized for that
appropriation.
‘‘(d) CONGRESSIONAL NOTIFICATION.—A conveyance
may not be made under subsection (a) until—
‘‘(1) the Secretary of the military department
concerned submits to the appropriate committees of
Congress (as defined in section 2801(c)(4) of this
title) a report containing an economic analysis
(based upon accepted life-cycle costing procedures)
which demonstrates that the full cost to the United
States of the proposed conveyance is cost-effective
when compared with alternative means of furnishing
the same utility systems; and
‘‘(2) a period of 21 days has elapsed after the
date on which the report is received by the commit-
tees.
‘‘(e) ADDITIONAL TERMS
AND CONDITIONS.—The
Secretary of the military department concerned may re-
quire such additional terms and conditions in a conveyance
entered into under subsection (a) as the Secretary consid-
ers appropriate to protect the interests of the United
States.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2687 the following new
item:
‘‘2688. Utility systems: permanent conveyance authority.’’.
TITLE III—ENVIRONMENTAL
REFORMS
Subtitle A—Superfund Reforms
Generally
SEC. 301. REVISION OF METHODS OF REMEDIATION.
Section 121(b) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9621(b)) is amended by striking out paragraphs
(1) and (2) and inserting in lieu thereof the following:
‘‘(1) METHODS OF REMEDIATION.—(A) Rem-
edies selected at individual facilities shall be protec-
tive of human health and the environment and pro-
vide a cost-effective treatment to achieve a level of
remediation that permits the reasonably anticipated
future land uses at the facility. A remedial action
may achieve protection of human health and the en-
vironment through—
‘‘(i) treatment that reduces the toxicity,
mobility, or volume of hazardous substances,
pollutants, or contaminants;
‘‘(ii) containment or other engineering con-
trols to limit exposure;
‘‘(iii) a combination of treatment and con-
tainment; or
‘‘(iv) other methods of protection.
‘‘(B) The method or methods of remediation
appropriate for a given facility shall be determined
through the evaluation of remedial alternatives and
the selection process under paragraph (2). When de-
termining the appropriate remedial method, treat-
ment is to be preferred for hot spots as defined
under paragraph (2)(C).
‘‘(2) APPROPRIATE REMEDIAL ACTION.—
‘‘(A) IN
GENERAL.—The President shall
identify and select an appropriate remedy that
minimizes exposures by comparing alternative
remedies and balancing the following factors
with respect to each such remedy:
‘‘(i) The effectiveness of the remedy,
including its implementability.
‘‘(ii) The long-term reliability of the
remedy, that is, its capability to achieve
long-term protection of human health and
the environment considering the preference
for treatment of hot spots.
‘‘(iii) The short-term risk posed by
the implementation of the remedy to the
affected community, to those engaged in
the cleanup effort, and to the environment.
‘‘(iv) The acceptability of the remedy
to the affected community.
‘‘(v) The reasonableness of the cost of
the remedy.
‘‘(vi) The results of any risk assess-
ments conducted with respect to the rem-
edy.
‘‘(vii) The costs, both direct and indi-
rect, of the remedy.
‘‘(B) DEFERRAL OF REMEDIAL ACTION.—
The President may defer the selection of a re-
medial action if the President determines
that—
‘‘(i) the hazardous substance, pollut-
ant, or contaminant can be contained in a
manner sufficient to protect human health
and the environment; and
‘‘(ii) an innovative technology is ex-
pected to be available in the near future
that will provide a more cost-effective rem-
edy.
‘‘(C) HOT
SPOTS.—The following shall
apply to the remediation of hot spots:
‘‘(i) For purposes of this section, the
term ‘hot spot’ means a discrete area with-
in a facility that contains hazardous sub-
stances, pollutants or contaminants (I)
that are present in high concentrations,
are highly mobile, and cannot be reliably
contained; or (II) that would present a sig-
nificant risk to human health or the envi-
ronment. The President shall develop
guidelines for the identification of hot
spots. Such guidelines shall recommend ap-
propriate field investigations that will not
require extraordinarily complex or costly
measures.
‘‘(ii) In determining an appropriate
remedy for hot spots, the President shall
consider the factors under subparagraph
(A). With respect to the factor in clause
(v) of subparagraph (A), the President
shall use a higher threshold for evaluating
the reasonableness of costs for hot spot
treatment relative to the remediation of
non-hot spot materials.
‘‘(iii) The President shall select a
remedy requiring treatment of materials
constituting hot spots to the maximum ex-
tent practicable, consistent with the protec-
tion of human health and the environment.
In such instances, the President shall se-
lect an interim containment remedy for
such hot spot subject to adequate monitor-
ing and public reporting to ensure its con-
tinued integrity and shall review the in-
terim containment remedy in accordance
with subsection (c). When the appropriate
treatment technology becomes available, as
determined by the President, that remedy
shall be considered in accordance with this
section.
‘‘(iv) Notwithstanding the presence of
a hot spot, the President may select a final
containment remedy for hot spots at land-
fills and mining sites or similar facilities
under the following circumstances:
‘‘(I) The hot spot is small rel-
ative to the overall volume of waste or
contamination being addressed, the
hot spot is not readily identifiable and
accessible, and without the presence
of the hot spot containment would
have been selected as the appropriate
remedy under subparagraph (A) for
the larger body of waste or area of
contamination in which the hot spot
is located.
‘‘(II) The volume and areal ex-
tent of the hot spot is extraordinary
compared to other facilities, and it is
highly unlikely due to the size and
other characteristics of the hot spot
that any treatment technology will be
developed that could be implemented
at reasonable cost.
Where final containment for a hot spot is selected,
the President shall publish an explanation of the
basis for that decision.
‘‘(3) GENERIC REMEDIES.—In order to stream-
line the remedy selection process and to facilitate
rapid voluntary action, the President shall establish,
taking into account the reasonably anticipated fu-
ture land uses at the facility and the factors enu-
merated in paragraph (1)(A)(i), cost-effective ge-
neric remedies for categories of facilities, and expe-
dited procedures that include community involve-
ment for selecting generic remedies at an individual
facility. To be eligible for selection at a facility, a ge-
neric remedy shall be protective of human health
and the environment at that facility. In appropriate
cases, the President may select a generic remedy
without considering alternatives to the generic rem-
edy.
‘‘(4) 
INSTITUTIONAL
CONTROLS.—Whenever
the President selects a remedial action which relies
on restrictions on the use of land, water, or other re-
sources to achieve protection of human health and
the environment, the President shall specify the na-
ture of the restrictions required to achieve such pro-
tections, including restrictions on the permissible
uses of land, prohibitions on specified activities upon
the property, restrictions on the drilling of wells or
the use of ground water, or restrictions on the use
of surface water, and may ensure that such restric-
tions are incorporated into a hazardous substance
easement. In reviewing remedial action alternatives
which would require the use of such restrictions and
providing opportunity for public comment on those
alternatives, the President shall identify the nature
of any institutional controls that would be required
to implement such restrictions, known or anticipated
affected persons, the likely duration of such restric-
tions, and the anticipated costs of acquiring any ap-
propriate hazardous substance easements and en-
forcing the appropriate restrictions.’’.
SEC. 302. REQUIREMENT TO CONSIDER REASONABLY AN-
TICIPATED FUTURE LAND USE.
Section 121(b) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42
U.S.C. 9621(b)) is further amended by adding at the end
the following:
‘‘(5) LAND
USE.—Before selecting a remedy
under subsection (a), the President shall identify the
reasonably anticipated future uses of land at a facil-
ity as required by this Act. In identifying reasonably
anticipated future land uses, the President shall con-
sider factors that include the following:
‘‘(A) Views expressed by members of the
affected community.
‘‘(B) With respect to a Federal facility
scheduled for closure or a portion of a Federal
facility scheduled for transfer from the owner-
ship or control of the Federal Government to
another 
entity, 
any 
joint 
consensus 
rec-
ommendation of a technical review committee
established for a facility of the Department of
Defense pursuant to section 2705(c) of title 10,
United States Code, a restoration advisory
board established for such a facility pursuant to
section 2705(d) of such title, a local land use
redevelopment authority, and another appro-
priate State agency, or, with respect to a de-
fense nuclear facility of the Department of En-
ergy, a citizen advisory board.
‘‘(C) The land use history of the facility
and surrounding properties, the current land
uses of the facility and surrounding properties,
recent development patterns in the area where
the facility is located, and population projec-
tions for that area.
‘‘(D) Federal or State land use designa-
tions, including Federal facilities and national
parks, State ground water or surface water re-
charge areas established under a State’s com-
prehensive protection plan for ground water or
surface water, and recreational areas.
‘‘(E) The current land use zoning and fu-
ture land use plans of the local government
with land use regulatory authority.
‘‘(F) The potential for economic redevelop-
ment.
‘‘(G) The proximity of the contamination
to 
residences, 
sensitive 
populations 
or
ecosystems, natural resources, or areas of
unique historic or cultural significance.
‘‘(H) Current plans for the facility by the
property owner or owners, not including poten-
tial voluntary remedial measures.’’.
SEC. 303. LIMITATION ON CRIMINAL LIABILITY OF FED-
ERAL OFFICERS, EMPLOYEES, AND AGENTS.
Section 120 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9620) is amended by adding at the end the follow-
ing:
‘‘(k) CRIMINAL LIABILITY.—Notwithstanding any
other provision of this Act or any other law, an officer,
employee, or agent of the United States shall not be held
criminally liable for a failure to comply, in any fiscal year,
with a requirement to take a response action at a facility
that is owned or operated by a department, agency, or in-
strumentality of the United States, under this Act, the
Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), or any
other Federal or State law unless—
‘‘(1) the officer, employee, or agent has not
fully performed any direct responsibility or delegated
responsibility that the officer, employee, or agent
had under Executive Order 12088 (42 U.S.C. 4321
note) or any other delegation of authority to ensure
that a request for funds sufficient to take the re-
sponse action was included in the President’s budget
request under section 1105 of title 31, United States
Code, for that fiscal year; or
‘‘(2) appropriated funds were available to pay
for the response action.’’.
SEC. 304. STATE ROLE AT FEDERAL FACILITIES.
Subsection (g) of section 120 of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9620) is amended to read as follows:
‘‘(g) TRANSFER OF AUTHORITIES.—
‘‘(1) STATE APPLICATION FOR TRANSFER OF
AUTHORITIES.—A State may apply to the Adminis-
trator to exercise the authorities vested in the Ad-
ministrator under subsections (e) and (h) (other
than (h)(2)) of this section at any or all facilities
owned or operated by any department, agency, or in-
strumentality of the United States (including the ex-
ecutive, legislative, and judicial branches of govern-
ment), including the authority—
‘‘(A) to review and approve all documents
prepared in connection with any such investiga-
tion and study;
‘‘(B) to review and select remedies pursu-
ant to subsection (e)(4)(A); and
‘‘(C) to enter into agreements with depart-
ments, agencies, and instrumentalities of the
United States in accordance with subsection
(e)(2), and to enter into consent decrees with
other potentially responsible parties in accord-
ance with subsection (e)(6).
‘‘(2) TRANSFER
OF
AUTHORITIES.—(A) The
Administrator may enter into a contract or coopera-
tive agreement to transfer some or all of the authori-
ties described in paragraph (1) if the Administrator
makes the determinations in subparagraph (B) and
the State agrees to the conditions in subparagraph
(C).
‘‘(B) The determinations to be made by the Ad-
ministrator under subparagraph (A) are the follow-
ing:
‘‘(i) The State has the ability to exercise
such authorities in accordance with this Act, in-
cluding adequate legal authority, financial and
personnel resources, organization, and exper-
tise.
‘‘(ii) The State demonstrates experience in
exercising similar authorities.
‘‘(C) The conditions to be agreed to by the
State under subparagraph (A) are the following:
‘‘(i) The State will not redelegate any of
the authorities transferred to it by the Adminis-
trator, except as provided in the transfer agree-
ment.
‘‘(ii) In the case of a State that is author-
ized to implement a State hazardous waste pro-
gram pursuant to section 3006 of the Solid
Waste Disposal Act (42 U.S.C. 6926), the
State will not exercise the authorities under
that Act at the same time and at the same site
as it exercises the authorities transferred to it
under this subsection, with respect to a release
or threat of release being addressed by the au-
thorities transferred to it.
‘‘(iii) The State will exercise the authori-
ties transferred to it with respect to each de-
partment, agency, and instrumentality of the
United States in the same manner and to the
same extent, both procedurally and sub-
stantively, as it exercises the authorities with
respect to any non-Federal entity.
‘‘(3) EFFECT OF AUTHORIZATION UNDER SOLID
WASTE DISPOSAL ACT.—In the review by the Admin-
istrator of an application of a State for transfer of
authorities under this subsection, if the State is au-
thorized to implement a State hazardous waste pro-
gram pursuant to section 3006 of the Solid Waste
Disposal Act (42 U.S.C. 6926), the following provi-
sions apply:
‘‘(A) With respect to a State that is a sig-
natory to an interagency agreement under sub-
section (e)(2) that is in effect on the effective
date of this subsection, the Administrator, in
making the determinations referred to in para-
graph (2), shall accord substantial weight to the
State’s hazardous waste program authorization
and the Administrator’s findings in approving
such authorization.
‘‘(B) With respect to a State whose au-
thorization under such section 3006 includes
authorization to implement the corrective action
provisions of the Solid Waste Disposal Act, the
Administrator shall approve the application and
provide for the orderly transfer of authorities as
expeditiously as possible, but in no case later
than 6 months after the date of receipt of the
application, unless the parties agree to another
deadline.
‘‘(4) EFFECT
OF
TRANSFER.—Any State to
which authorities are transferred under this sub-
section shall not be deemed to be an agent of the
President but shall exercise such authorities in its
own name, and the Administrator may transfer to a
State only those authorities of the Administrator
identified in this subsection.
‘‘(5) DEADLINES.—Except as provided in para-
graph (3)(B), the Administrator shall make a deter-
mination on an application from a State under this
subsection not later than 90 days after the date the
Administrator receives the application.
‘‘(6) WITHDRAWAL OF AUTHORITIES.—
‘‘(A) IN
GENERAL.—The Administrator
may withdraw the authorities transferred under
this subsection in whole or in part if the Ad-
ministrator determines—
‘‘(i) that the State, in whole or in
part, is exercising such authorities in a
manner clearly inconsistent with the re-
quirements of this Act; or
‘‘(ii) in the case of a State that was
approved under paragraph (3)(B), that the
State is no longer authorized to implement
the corrective action provisions of the Solid
Waste Disposal Act.
‘‘(B) REQUIREMENT
OF
WRITTEN
NO-
TICE.—At least 90 days before withdrawing any
such transferred authorities from a State, the
Administrator shall provide to the State a writ-
ten explanation of the reasons for the proposed
withdrawal and afford an opportunity to the
State to discuss the withdrawal and to propose
actions to correct any deficiencies.
‘‘(7) ENFORCEMENT
AND
REMEDY
SELEC-
TION.—
‘‘(A) IN GENERAL.—An interagency agree-
ment under this section between a State (in-
cluding States which are parties to such agree-
ments through the exercise of the Administra-
tor’s authorities pursuant to a cooperative
agreement or contract under this subsection)
and any department, agency, or instrumentality
of the United States, shall be enforceable by the
State or the Federal department, agency, or in-
strumentality in the United States district court
for the district in which the facility is located.
The district court shall have the jurisdiction to
enforce compliance with any provision, stand-
ard, regulation, condition, requirement, order,
or final determination which has become effec-
tive under such agreement, and to impose any
appropriate civil penalty provided for any viola-
tion of the agreement, not to exceed $25,000
per day.
‘‘(B) FAILURE TO CONCUR IN REMEDY SE-
LECTION.—
‘‘(i) IN GENERAL.—At Federal facili-
ties where the Administrator’s authorities
under subsection (e)(4) have been trans-
ferred to the State pursuant to this sec-
tion, and the State does not concur in the
remedy selection proposed by the Federal
agency, the parties shall enter into dispute
resolution as provided in the interagency
agreement, provided that the final level for
such disputes concerning remedy selection
shall be to the head of the Federal depart-
ment, agency, or instrumentality and the
Governor of the State.
‘‘(ii) STATE REMEDY SELECTION.—If
no agreement is reached between the head
of the Federal department, agency, or in-
strumentality and the Governor, the State
may issue the final determination, except
that the State shall pay or assure the pay-
ment of any additional costs attributable to
carrying out the remedial action selected
by the State.
‘‘(8) LIMITATION.—Except for authorities that
are transferred by the Administrator to a State pur-
suant to this subsection, or that are transferred by
the Administrator to an officer or employee of the
Environmental Protection Agency, no authority vest-
ed in the Administrator under this section may be
transferred, by Executive order of the President or
otherwise, to any other officer or employee of the
United States or to any other person. Except as nec-
essary to specifically implement the transfer of the
Administrator’s authorities to a State pursuant to
this subsection, nothing in this subsection shall be
construed as altering, modifying, or impairing in any
manner, or authorizing the unilateral modification
of, any terms of any agreement, permit, administra-
tive, or judicial order, decree, or interagency agree-
ment existing on the effective date of this sub-
section. Any other modifications or revisions of an
interagency agreement entered into under this sec-
tion shall require the consent of all parties to such
agreement, and absent such consent the agreement
shall remain unchanged. Nothing in this subsection
shall affect the exercise by a State of any other au-
thorities that may be applicable to facilities in such
State.’’.
Subtitle B—Superfund and Other
Environmental 
Law 
Reforms
Applicable to Department of De-
fense or Department of Energy
SEC. 311. STANDARDS FOR REMEDIAL ACTIONS CON-
DUCTED AT DEFENSE FACILITIES NOT ON
THE NATIONAL PRIORITIES LIST.
Section 2701(c) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(4) EXEMPTION OF REMEDIAL ACTIONS CON-
DUCTED AT FACILITIES NOT LISTED ON THE NA-
TIONAL PRIORITIES LIST FROM CERTAIN REQUIRE-
MENT.—Notwithstanding 
subsection 
(a)(2) 
and
paragraph (1) of this subsection, the requirement of
section 
121(d)(2) 
of 
CERCLA 
(42 
U.S.C.
9621(d)(2)) relating to the attainment of a relevant
and appropriate standard, requirement, criteria, or
limitation shall not apply to a remedial action con-
ducted at a facility under the jurisdiction of the Sec-
retary of Defense if the facility is not listed on the
National Priorities List under CERCLA.’’.
SEC. 312. AUTHORITY OF SECRETARY OF DEFENSE AND
SECRETARY 
OF 
ENERGY 
TO 
TERMINATE
LONG-TERM OPERATION AND MAINTENANCE
OF REMEDIAL ACTIONS AND CORRECTIVE
ACTIONS.
(a) REMEDIAL ACTIONS.—Section 120 of the Com-
prehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9621) is amended by
adding at the end the following new subsection:
‘‘(k) TERMINATION OF LONG-TERM OPERATION AND
MAINTENANCE.—The Secretary of Defense, with respect
to any site or facility of the Department of Defense, and
the Secretary of Energy, with respect to any site or facility
of the Department of Energy, may terminate the long-
term operation and maintenance of a completed remedial
action in any case in which the Secretary determines, with
the concurrence of the Administrator or appropriate State
or local authorities, that the release or threat of release
of hazardous substances, pollutants, or contaminants at
the site or facility is no longer a threat to human health
and the environment.’’.
(b) CORRECTIVE ACTIONS.—Section 3004(u) of the
Solid Waste Disposal Act (42 U.S.C. 6924(u)) is amended
by adding at the end the following: ‘‘The Secretary of De-
fense, with respect to any site or facility of the Depart-
ment of Defense, and the Secretary of Energy, with re-
spect to any site or facility of the Department of Energy,
may terminate the long-term operation and maintenance
of a completed corrective action in any case in which the
Secretary determines, with the concurrence of the Admin-
istrator or appropriate State or local authorities, that the
release of hazardous waste or constituents at the site or
facility is no longer a threat to human health and the envi-
ronment.’’.
SEC. 313. NOTIFICATION TO CONGRESS OF COSTS OF DE-
PARTMENT 
OF 
ENERGY 
ENVIRONMENTAL
COMPLIANCE AGREEMENTS.
(a) NOTICE TO CONGRESS.—The Secretary of En-
ergy may not enter into an environmental compliance
agreement, or agree to a major modification of such an
agreement, until after the Secretary submits to Congress
the following information with respect to the agreement
or modification:
(1) The total cost of carrying out the agree-
ment or modification, and the total cost of other op-
tions considered for carrying out the requirements
that are the subject of the agreement or modifica-
tion.
(2) An estimate of the budget authority and
outlays, by year, required while the agreement or
modification is in effect.
(3) The projected cost of carrying out each
milestone in the agreement or modification, and the
schedule for the initiation of activities under each
milestone.
(4) An estimate of the monetary penalties that
may be assessed by the Environmental Protection
Agency or the State concerned against the Depart-
ment of Energy for failure to adhere to the terms
of the compliance agreement.
(b) DEFINITION.—In this section, the term ‘‘environ-
mental compliance agreement’’ means an interagency
agreement under section 120(e)(2) of the Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9620(e)(2)) entered into by the Sec-
retary of Energy, the Administrator of the Environmental
Protection Agency, and the State in which a facility of
the Department of Energy is located that provides for
compliance by the Department of Energy at that facility
with the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.).
(c) CALCULATION OF 90 DAYS.—For purposes of
subsection (a), the continuity of a session of Congress is
broken only by an adjournment of the Congress sine die,
and the days on which either House is not in session be-
cause of an adjournment of more than three days to a
day certain are excluded in the computation of the 90-
day period.
SEC. 314. CLEAN AIR ACT STANDARDS FOR MILITARY
SOURCES.
(a) CONTINUED EFFECTIVENESS OF EXEMPTIONS.—
Any exemption described in subsection (b) for property
owned or operated by the Armed Forces that is in effect
on the date of the enactment of this Act shall remain in
effect with respect to any covered requirement that is
adopted after such date of enactment.
(b) COVERED EXEMPTIONS.—Subsection (a) applies
to any exemption from a covered requirement that is is-
sued—
(1) by the Administrator of the Environmental
Protection Agency pursuant to rulemaking authority
under the Clean Air Act (42 U.S.C. 7401 et seq.);
or
(2) by a State in its State implementation plan
for that Act.
(c) COVERED REQUIREMENTS.—In this section, the
term ‘‘covered requirement’’ means a requirement referred
to in section 118(a) of the Clean Air Act (42 U.S.C.
7418(a)) that relates to ozone or particulate matter.
SEC. 315. AUTHORITY OF ADMINISTRATOR OF ENVIRON-
MENTAL PROTECTION AGENCY WITH RE-
SPECT TO APPLICATION OF SOLID WASTE
DISPOSAL ACT TO STORED MILITARY MUNI-
TIONS.
Section 3004(y) of the Solid Waste Disposal Act (42
U.S.C. 6924(y)) is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by inserting after paragraph (1) the follow-
ing:
‘‘(2) The authority of the Administrator to promul-
gate regulations under this subsection includes the author-
ity to provide for unexpended military munitions in stor-
age to not be considered hazardous waste for purposes of
this subtitle.’’.
TITLE IV—MISCELLANEOUS AD-
DITIONAL 
DEFENSE 
RE-
FORMS
SEC. 401. LONG-TERM CHARTER CONTRACTS FOR ACQUISI-
TION OF AUXILIARY VESSELS FOR THE DE-
PARTMENT OF DEFENSE.
(a) PROGRAM AUTHORIZATION.—Chapter 631 of title
10, United States Code, is amended by adding at the end
the following new section:
‘‘§ 7233. Auxiliary vessels: authority for long-term
charter contracts
‘‘(a) AUTHORIZED CONTRACTS.—After September
30, 1999, the Secretary of the Navy, subject to subsection
(b), may enter into contracts for the long-term lease or
charter of newly built surface vessels, or for the provision
of a service through use by a contractor of newly built
surface vessels, for any of the following:
‘‘(1) The combat logistics force of the Navy.
‘‘(2) The strategic sealift program of the Navy.
‘‘(3) Other auxiliary support vessels for the De-
partment of Defense.
‘‘(b) CONTRACTS REQUIRED TO BE AUTHORIZED BY
LAW.—A contract may be entered into under this section
with respect to specific vessels only if the Secretary is spe-
cifically authorized by law to enter into such a contract
with respect to those vessels.
‘‘(c) FUNDS FOR CONTRACT PAYMENTS.—The Sec-
retary may make payments for contracts entered into
under this section using funds available for obligation dur-
ing the fiscal year for which the payments are required
to be made. Any such contract shall provide that the Unit-
ed States will not be required to make a payment under
the contract (other than a termination payment, if re-
quired) before October 1, 2001.
‘‘(d) BUDGETING PROVISIONS.—Any contract en-
tered into under this section shall be treated as a
multiyear service contract and as an operating lease for
purposes of any provision of law relating to the Federal
budget and Federal budget accounting procedures, includ-
ing part C of title II of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.),
and any regulation or directive (including any directive of
the Office of Management and Budget) prescribed with
respect to the Federal budget and Federal budget account-
ing procedures.
‘‘(e) TERM OF CONTRACT.—In this section, the term
‘long-term lease or charter’ means a lease, charter, service
contract, or conditional sale agreement with respect to a
vessel the term of which (including any option period) is
for a period of 20 years or more.
‘‘(f) OPTION TO BUY.—A contract entered into under
the authority of this section may contain options for the
United States to purchase one or more of the vessels cov-
ered by the contract at any time during, or at the end
of, the contract period (including any option period) upon
payment of an amount not in excess of the unamortized
portion of the cost of the vessels plus amounts incurred
in connection with the termination of the financing ar-
rangements associated with the vessels.
‘‘(g) DOMESTIC
CONSTRUCTION.—The Secretary
shall require in any contract entered into under this sec-
tion that each vessel to which the contract applies—
‘‘(1) shall have been constructed in a shipyard
within the United States or its territories; and
‘‘(2) upon delivery, shall be documented under
the laws of the United States.
‘‘(h) VESSEL CREWING.—(1) Except as provided in
paragraph (2), the Secretary shall require in any contract
entered into under this section that the crew of any vessel
to which the contract applies be comprised of private sec-
tor commercial mariners.
‘‘(2) Paragraph (1) shall not apply to the crewing of
a vessel if—
‘‘(A) the vessel is for the combat logistics force
of the Navy; and
‘‘(B) the Secretary determines, before the con-
tract with respect to the vessel is entered into, that
crewing of the vessel with Government employees is
essential to maintenance of operational readiness.
‘‘(i) CONTINGENT WAIVER OF OTHER PROVISIONS
OF LAW.—A contract authorized by this section may be
entered into without regard to section 2401 or 2401a of
this title if the Secretary of Defense makes the following
findings with respect to that contract:
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘7233. Auxiliary vessels: authority for long-term charter contracts.’’.
SEC. 402. FIBER-OPTICS BASED TELECOMMUNICATIONS
LINKAGE OF MILITARY INSTALLATIONS.
(a) INSTALLATION REQUIRED.—In at least one met-
ropolitan area of the United States containing multiple
military installations of one or more military department
or Defense Agency, the Secretary of Defense shall provide
for the installation of fiber-optics based telecommuni-
cations technology to link as many of the installations in
the area as practicable in a privately dedicated tele-
communications network. The Secretary shall use a com-
petitive process to provide for the installation of the tele-
communications network through one or more new con-
tracts.
(b) FEATURES
OF NETWORK.—The telecommuni-
cations network shall provide direct access to local and
long distance telephone carriers, allow for transmission of
both classified and unclassified information, and take ad-
vantage of the various capabilities of fiber-optics based
telecommunications technology.
(c) TIME
FOR INSTALLATION.—The telecommuni-
cations network or networks to be installed under this sec-
tion shall be installed and operational not later than Sep-
tember 30, 1999.
(d) REPORT ON IMPLEMENTATION.—Not later than
March 1, 1998, the Secretary of Defense shall submit to
the congressional defense committees a report on the im-
plementation of subsections (a) and (b), including the met-
ropolitan area or areas selected for the telecommuni-
cations network, the estimated cost of the network, and
potential areas for the future use of such fiber-optics
based telecommunications technology.
SEC. 403. REPEAL OF REQUIREMENT FOR CONTRACTOR
GUARANTEES ON MAJOR WEAPON SYSTEMS.
(a) REPEAL.—Section 2403 of title 10, United States
Code, is repealed.
(b) CLERICAL AND CONFORMING AMENDMENTS.—
(1) The table of sections at the beginning of chapter 141
of such title is amended by striking out the item relating
to section 2403.
(2) Section 803 of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2604; 10 U.S.C. 2430 note) is amended—
(A) in subsection (a), by striking out ‘‘2403,’’;
(B) by striking out subsection (c); and
(C) by redesignating subsection (d) as sub-
section (c).
SEC. 
404. 
REQUIREMENTS 
RELATING 
TO 
MICRO-PUR-
CHASES OF COMMERCIAL ITEMS.
(a) IN GENERAL.—Section 2304 of title 10, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(l) MICRO-PURCHASES.—(1) A contracting officer
may not award a contract or issue a purchase order to
buy commercial items for an amount equal to or less than
the micro-purchase threshold unless a member of the Sen-
ior Executive Service or a general or flag officer makes
a written determination that—
‘‘(A) the source or sources available for the
commercial item do not accept a preferred micro-
purchase method, and the contracting officer is seek-
ing a source that does accept such a method; and
‘‘(B) the nature of the commercial item neces-
sitates a contract or purchase order so that terms
and conditions can be specified.
‘‘(2) In this subsection:
‘‘(A) The term ‘micro-purchase threshold’ has
the meaning provided in section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428).
‘‘(B) The term ‘preferred micro-purchase meth-
od’ means the use of the Government-wide commer-
cial purchase card or any other method for carrying
out micro-purchases that Secretary of Defense pre-
scribes in the regulations implementing this sub-
section.
‘‘(3) The Secretary of Defense shall prescribe regula-
tions to implement this subsection. The regulations shall
include such additional preferred methods of carrying out
micro-purchases, and such exceptions to the requirement
of paragraph (1), as the Secretary considers appro-
priate.’’.
(b) EFFECTIVE DATE.—Subsection (l) of section
2304 of title 10, United States Code, as added by sub-
section (a), shall apply with respect to micro-purchases
made on or after October 1, 1997.
SEC. 405. AVAILABILITY OF SIMPLIFIED PROCEDURES TO
COMMERCIAL ITEM PROCUREMENTS.
(a) 
ARMED
SERVICES
ACQUISITIONS.—Section
2304(g) of title 10, United States Code, is amended in
paragraph (1)(B) by striking out ‘‘only’’.
(b) 
CIVILIAN
AGENCY
ACQUISITIONS.—Section
303(g) of the Federal Property and Administrative Serv-
ices Act of 1949 (41 U.S.C. 253(g)) is amended in para-
graph (1)(B) by striking out ‘‘only’’.
SEC. 406. TERMINATION OF THE ARMED SERVICES PATENT
ADVISORY BOARD.
(a) TERMINATION
OF BOARD.—The organization
within the Department of Defense known as the Armed
Services Patent Advisory Board is terminated. No funds
available for the Department of Defense may be used for
the operation of that Board after the date specified in sub-
section (c).
(b) TRANSFER OF FUNCTIONS.—All functions per-
formed on the day before the date of the enactment of
this Act by the Armed Services Patent Advisory Board
(including performance of the responsibilities of the De-
partment of Defense for security review of patent applica-
tions under chapter 17 of title 35, United States Code)
shall be transferred to the Defense Technology Security
Administration.
(c) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect at the end of the 120-day period beginning on the
date of the enactment of this Act.
SEC. 407. COORDINATION OF DEPARTMENT OF DEFENSE
CRIMINAL INVESTIGATIONS AND AUDITS.
(a) BOARD ON CRIMINAL INVESTIGATIONS.—Chapter
7 of title 10, United States Code, is amended by adding
at the end the following new section:
‘‘§ 182. Board on Criminal Investigations
‘‘(a) ESTABLISHMENT.—(1) There is in the Depart-
ment of Defense a Board on Criminal Investigations. The
Board consists of the following officials:
‘‘(A) The Under Secretary of Defense (Comp-
troller).
‘‘(B) The head of the Army Criminal Investiga-
tion Command.
‘‘(C) The head of the Naval Criminal Investiga-
tive Service.
‘‘(D) The head of the Air Force Office of Spe-
cial Investigations.
‘‘(2) To ensure cooperation between the military de-
partment criminal investigative organizations and the De-
fense Criminal Investigative Service, the Inspector General
of the Department of Defense shall serve as a nonvoting
member of the Board.
‘‘(b) FUNCTIONS OF BOARD.—The Board shall pro-
vide for coordination and cooperation between the military
department criminal investigative organizations so as to
avoid duplication of effort and maximize resources avail-
able to the military department criminal investigative or-
ganizations.
‘‘(c) REGIONAL
WORKING
GROUPS.—The Board
shall establish working groups at the regional level to ad-
dress and resolve issues of jurisdictional responsibility that
may arise regarding criminal investigations involving a
military department criminal investigative organization. A
working group shall consist of managers or supervisors of
the military department criminal investigative organiza-
tions who have the authority to make binding decisions
regarding which organization will conduct a particular
criminal investigation or whether a criminal investigation
should be conducted jointly.
‘‘(d) AUTHORITY OF UNDER SECRETARY OF DE-
FENSE (COMPTROLLER).—In the event that a regional
working group or the Board is unable to resolve an issue
of investigative responsibility, the Under Secretary of De-
fense (Comptroller) shall have the responsibility to make
a final determination regarding the issue.
‘‘(e) MILITARY DEPARTMENT CRIMINAL INVESTIGA-
TIVE ORGANIZATION DEFINED.—In this section, the term
‘military department criminal investigative organization’
means any of the following:
‘‘(1) The Army Criminal Investigation Com-
mand.
‘‘(2) The Naval Criminal Investigative Service.
‘‘(3) The Air Force Office of Special Investiga-
tions.’’.
(b) BOARD ON AUDITS.—Such chapter is further
amended by inserting after section 182, as added by sub-
section (a), the following new section:
‘‘§ 183. Board on Audits
‘‘(a) ESTABLISHMENT.—(1) There is in the Depart-
ment of Defense a Board on Audits. The Board consists
of the following officials:
‘‘(A) The Under Secretary of Defense (Comp-
troller).
‘‘(B) The Auditor General of the Army.
‘‘(C) The Auditor General of the Navy.
‘‘(D) The Auditor General of the Air Force.
‘‘(E) The director of the Defense Contract
Audit Agency.
‘‘(2) To ensure cooperation between the defense au-
diting organizations and the Office of the Inspector Gen-
eral of the Department of Defense, the Inspector General
of the Department of Defense shall serve as a nonvoting
member of the Board.
‘‘(b) FUNCTIONS OF BOARD.—The Board shall pro-
vide for coordination and cooperation between the defense
auditing organizations so as to avoid duplication of effort
and maximize resources available to the defense auditing
organizations.
‘‘(c) REGIONAL
WORKING
GROUPS.—The Board
shall establish working groups at the regional level to ad-
dress and resolve issues of jurisdictional responsibility that
may arise regarding audits involving a defense auditing
organization. A working group shall consist of managers
or supervisors of the defense auditing organizations who
have the authority to make binding decisions regarding
which defense auditing organization will conduct a par-
ticular audit or whether an audit should be conducted
jointly.
‘‘(d) AUTHORITY OF UNDER SECRETARY OF DE-
FENSE (COMPTROLLER).—In the event that a regional
working group or the Board is unable to resolve an issue
of jurisdictional responsibility, the Under Secretary of De-
fense (Comptroller) shall have the responsibility to make
a final determination regarding the issue.
‘‘(e) 
DEFENSE
AUDITING
ORGANIZATION
DE-
FINED.—In this section, the term ‘defense auditing orga-
nization’ means any of the following:
‘‘(1) The Army Audit Agency.
‘‘(2) The Naval Audit Service.
‘‘(3) The Air Force Audit Agency.
‘‘(4) The Defense Contract Audit Agency.’’.
(c) WORKING GUIDANCE.—Not later than December
31, 1997, the Secretary of Defense shall prescribe such
policies as may be necessary for the operation of the Board
on Criminal Investigations and the Board on Audits estab-
lished pursuant to the amendments made by this section.
(d) CLERICAL AMENDMENTS.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new items:
‘‘182. Board on Criminal Investigations.
‘‘183. Board on Audits.’’.
SEC. 408. DEPARTMENT OF DEFENSE BOARDS, COMMIS-
SIONS, AND ADVISORY COMMITTEES.
(a) TERMINATION OF EXISTING ADVISORY COMMIT-
TEES.—(1) Effective December 31, 1998, any advisory
committee established in, or administered or funded (in
whole or in part) by, the Department of Defense that (A)
is in existence on the day before the date of the enactment
of this Act, and (B) was not established by law, or ex-
pressly continued by law, after January 1, 1995, is termi-
nated.
(2) For purposes of this section, the term ‘‘advisory
committee’’ means an entity that is subject to the provi-
sions of the Federal Advisory Committee Act (5 U.S.C.
App.).
(b) REPORT ON COMMITTEES FOR WHICH CONTINU-
ATION IS REQUESTED.—Not later than March 1, 1998,
the Secretary of Defense shall submit to Congress a report
setting forth those advisory committees subject to sub-
section (a) that the Secretary proposes to continue. The
Secretary shall include in the report, for each such com-
mittee, the justification for continuing the committee and
a statement of the costs of such continuation over the next
four fiscal years. The Secretary shall include in the report
a proposal for any legislation that may be required for
the continuations proposed in the report.
(c) POLICY FOR FUTURE DOD ADVISORY COMMIT-
TEES.—(1) Chapter 7 of title 10, United States Code, is
amended by inserting after section 183, as added by sec-
tion 407(b), the following new section:
‘‘§ 184. Boards, commissions, and other advisory com-
mittees: limitations
‘‘(a) LIMITATION ON ESTABLISHMENT.—No advisory
committee may be established in, or administered or fund-
ed (in whole or in part) by, the Department of Defense
except as specifically provided by law after the date of the
enactment of this section.
‘‘(b) TERMINATION OF ADVISORY COMMITTEES.—
Each advisory committee of the Department of Defense
(whether established by law, by the President, or by the
Secretary of Defense) shall terminate not later than the
expiration of the four-year period beginning on the date
of its establishment or on the date of the most recent con-
tinuation of the advisory committee by law.
‘‘(c) EXCEPTION FOR TEMPORARY ADVISORY COM-
MITTEES.—Subsection (a) does not apply to an advisory
committee established for a period of one year or less for
the purpose (as set forth in the charter of the advisory
committee) of examining a matter that is critical to the
national security of the United States.
‘‘(d) ANNUAL REPORT.—Not later than March 1 of
each year (beginning in 1999), the Secretary of Defense
shall submit to Congress a report on advisory committees
of the Department of Defense. In each such report, the
Secretary shall identify each advisory committee that the
Secretary proposes to support during the next fiscal year
and shall set forth the justification for each such commit-
tee and the projected costs for that committee for the next
fiscal year. In the case of any advisory committee that is
to terminate in the year following the year in which the
report is submitted pursuant to subsection (b) and that
the Secretary proposes be continued by law, the Secretary
shall include in the report a request for continuation of
the committee and a justification and cost estimate for
such continuation.
‘‘(e) ADVISORY COMMITTEE DEFINED.—In this sec-
tion, the term ‘advisory committee’ means an entity that
is subject to the provisions of the Federal Advisory Com-
mittee Act (5 U.S.C. App.).’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating