‘‘(i) TRAVEL
AND TRANSPORTATION EXPENSES
IN
CONNECTION
WITH
TRAINING
OUTSIDE
THE
UNITED
STATES.—The Director of the National Security Agency, on
behalf of the Secretary of Defense, may, without regard to
section 4109(a)(2)(B) of title 5, United States Code, pay
travel, transportation, storage, and subsistence expenses
under chapter 57 of such title to civilian and military per-
sonnel of the Department of Defense who are assigned to
duty outside the United States for a period of one year or
longer which involves cryptologic training, language train-
ing, or related disciplines.
‘‘SEC. 11. PROTECTION OF FACILITIES BY GENERAL SERV-
ICES ADMINISTRATION.
‘‘The Administrator of General Services, upon the ap-
plication of the Director of the National Security Agency,
may provide for the protection in accordance with section
3 of the Act of June 1, 1948 (40 U.S.C. 318b), of certain
facilities (as designated by the Director of such Agency)
which are under the administration and control of, or are
used by, the National Security Agency in the same manner
as if such facilities were property of the United States over
which the United States has acquired exclusive or concur-
rent criminal jurisdiction.
‘‘SEC. 12. SENIOR CRYPTOLOGIC EXECUTIVE SERVICE.
‘‘(a) AUTHORITY TO ESTABLISH SCES.—(1) The Sec-
retary of Defense (or his designee) may by regulation estab-
lish a personnel system for senior civilian cryptologic per-
sonnel in the National Security Agency to be known as the
Senior Cryptologic Executive Service. The regulations es-
tablishing the Senior Cryptologic Executive Service shall do
the following:
‘‘(A) Meet the requirements set forth in section
3131 of title 5, United States Code, for the Senior Ex-
ecutive Service.
‘‘(B) Provide that positions in the Senior
Cryptologic Executive Service meet requirements that
are 
consistent 
with 
the 
provisions 
of 
section
3132(a)(2) of such title.
‘‘(C) Provide, without regard to section 2, rates
of pay for the Senior Cryptologic Executive Service
that are not in excess of the maximum rate or less
than the minimum rate of basic pay established for
the Senior Executive Service under section 5382 of
such title, and that are adjusted at the same time and
to the same extent as rates of basic pay for the Senior
Executive Service are adjusted.
‘‘(D) Provide a performance appraisal system for
the Senior Cryptologic Executive Service that con-
forms to the provisions of subchapter II of chapter 43
of such title.
‘‘(E) Provide for removal consistent with section
3592 of such title, and removal or suspension consist-
ent with subsections (a), (b), and (c) of section 7543
of such title (except that any hearing or appeal to
which a member of the Senior Cryptologic Executive
Service is entitled shall be held or decided pursuant
to procedures established by regulations of the Sec-
retary of Defense).
‘‘(F) Permit the payment of performance awards
to members of the Senior Cryptologic Executive Serv-
ice consistent with the provisions applicable to per-
formance awards under section 5384 of such title.
‘‘(G) Provide that members of the Senior
Cryptologic Executive Service may be granted sab-
batical leaves consistent with the provisions of section
3396(c) of such title.
‘‘(H) Provide for the recertification of members
of the Senior Cryptologic Executive Service consistent
with the provisions of section 3393a of such title.
‘‘(2) Except as otherwise provided in paragraph (1),
the Secretary of Defense may—
‘‘(A) make applicable to the Senior Cryptologic
Executive Service any of the provisions of title 5,
United States Code, applicable to applicants for or
members of the Senior Executive Service; and
‘‘(B) appoint, promote, and assign individuals
to positions established within the Senior Cryptologic
Executive Service without regard to the provisions of
title 5, United States Code, governing appointments
and other personnel actions in the competitive service.
‘‘(3) The President, based on the recommendations of
the Secretary of Defense, may award ranks to members of
the Senior Cryptologic Executive Service in a manner con-
sistent with the provisions of section 4507 of title 5, United
States Code.
‘‘(4) Notwithstanding any other provision of this sec-
tion, the Director of the National Security Agency may de-
tail or assign any member of the Senior Cryptologic Execu-
tive Service to serve in a position outside the National Secu-
rity Agency in which the member’s expertise and experience
may be of benefit to the National Security Agency or an-
other Government agency. Any such member shall not by
reason of such detail or assignment lose any entitlement or
status 
associated 
with 
membership 
in 
the 
Senior
Cryptologic Executive Service.
‘‘(b) MERIT PAY SYSTEM.—The Secretary of Defense
may by regulation establish a merit pay system for such
employees of the National Security Agency as the Secretary
of Defense considers appropriate. The merit pay system
shall be designed to carry out purposes consistent with those
set forth in section 5401(a) of title 5, United States Code.
‘‘(c) LIMITATION ON TOTAL COMPENSATION.—Nothing
in this section shall be construed to allow the aggregate
amount payable to a member of the Senior Cryptologic Ex-
ecutive Service under this section during any fiscal year
to exceed the annual rate payable for positions at level I
of the Executive Schedule in effect at the end of such year.
‘‘SEC. 13. GRANTS FOR CRYPTOLOGIC RESEARCH.
‘‘(a) GRANT AUTHORITY.—The Director of the Na-
tional Security Agency may make grants to private indi-
viduals and institutions for the conduct of cryptologic re-
search. An application for a grant under this section may
not be approved unless the Director determines that the
award of the grant would be clearly consistent with the na-
tional security.
‘‘(b) APPLICABLE LAW.—The grant program estab-
lished by subsection (a) shall be conducted in accordance
with the Federal Grant and Cooperative Agreement Act of
1977 (41 U.S.C. 501 et seq.) to the extent that such Act
is consistent with and in accordance with section 6 of this
Act.
‘‘(c) LIMITATION TO APPROPRIATED FUNDS.—The au-
thority of the Director to make grants under this section
is effective for any fiscal year only to the extent that appro-
priated funds are available for such purpose.
‘‘SEC. 14. AVAILABILITY OF CERTAIN APPROPRIATIONS.
‘‘Funds appropriated to an entity of the Federal Gov-
ernment other than an element of the Department of Defense
that have been specifically appropriated for the purchase
of cryptologic equipment, materials, or services with respect
to which the National Security Agency has been designated
as the central source of procurement for the Government
shall remain available for a period of three fiscal years.
‘‘SEC. 15. PROTECTION OF AGENCY NAME FROM UNAU-
THORIZED USE.
‘‘(a) PROHIBITION ON UNAUTHORIZED USE.—No per-
son may, except with the written permission of the Director
of the National Security Agency, knowingly use the words
‘National Security Agency’, the initials ‘NSA’, the seal of
the National Security Agency, or any colorable imitation
of such words, initials, or seal in connection with any mer-
chandise, impersonation, solicitation, or commercial activ-
ity in a manner reasonably calculated to convey the impres-
sion that such use is approved, endorsed, or authorized by
the National Security Agency.
‘‘(b) ENFORCEMENT.—Whenever it appears to the At-
torney General that any person is engaged or is about to
engage in an act or practice which constitutes or will con-