393 
‘‘(c) REQUIRED LICENSES.—(1) The Secretary con-
cerned shall license trademarks, service marks, certification 
marks, and collective marks relating to military designa-
tions and likenesses of military weapons systems to any 
qualifying company upon receipt of a request from the com-
pany. 
‘‘(2) For purposes of paragraph (1), a qualifying com-
pany is any United States company that is a small busi-
ness concern and that— 
‘‘(A) is a toy or hobby manufacturer, distributor, 
or merchant; and 
‘‘(B) is determined by the Secretary concerned to 
be qualified in accordance with such criteria as may 
be prescribed by the Secretary of Defense. 
‘‘(3) The fee for a license under this subsection shall 
be determined under regulations prescribed by the Secretary 
of Defense. Any such fee shall be nominal and shall be an 
amount not less than an amount needed to recover all costs 
of the Department of Defense in processing the request for 
the license and supplying the license. 
‘‘(4) A license under this subsection shall not be an 
exclusive license.’’. 
(b) EFFECTIVE DATE.—The Secretary of Defense shall 
prescribe regulations to implement the amendment made by 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00393
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
394 
this section not later than 180 days after the date of the 
enactment of this Act. 
SEC. 844. CHANGE IN GROUNDS FOR WAIVER OF LIMITA-
TION ON SERVICE CONTRACT TO ACQUIRE 
MILITARY FLIGHT SIMULATOR. 
Section 832(b)(1) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109– 
364; 120 Stat. 2331) is amended by striking ‘‘necessary for 
national security purposes’’ and inserting ‘‘in the national 
interest’’. 
SEC. 845. EVALUATION OF COST OF COMPLIANCE WITH RE-
QUIREMENT 
TO 
BUY 
CERTAIN 
ARTICLES 
FROM AMERICAN SOURCES. 
(a) EXCLUSION FROM PRICE OR COST COMPARISON 
.—For all Department of Defense prime contract awards 
and subcontract awards at any tier, in the event that a 
price or cost comparison is made as part of an evaluation 
of offers for goods or services provided by a United States 
firm and by a foreign source benefitting from the exception 
provided in section 2533a(e)(1)(B) or 2533b(d)(1)(B) of 
title 10, United States Code, the cost of compliance de-
scribed in subsection (c) shall not be considered in such an 
evaluation. 
(b) INCLUSION IN EVALUATION OF OFFERS.—The cost 
of compliance shall be considered in the evaluation of offers 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00394
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
395 
provided by United States firms and by foreign sources sub-
mitting compliant offers. 
(c) COST OF COMPLIANCE.—The cost of compliance de-
scribed in this subsection is the cost of compliance for a 
United States firm to procure items grown, reprocessed, re-
used, or produced in the United States, in accordance with 
section 2533a of title 10, United States Code, or to procure 
specialty metals melted or produced in the United States, 
in accordance with section 2533b of such title 10. 
SEC. 846. REQUIREMENTS RELATING TO WAIVERS OF CER-
TAIN DOMESTIC SOURCE LIMITATIONS. 
(a) MULTI-CONTRACT AND CLASS WAIVERS.—A do-
mestic non-availability determination pursuant to section 
2533b(b) of title 10, United States Code, that would apply 
to more than one prime contract of the Department of De-
fense shall be made only if the determination— 
(1) has been proposed and finalized under a for-
mal rulemaking; 
(2) specifies that the determination will expire 
30 days after the Secretary concerned finds that the 
determination is no longer justified; and 
(3) requires an accounting of all end items, com-
ponents, or specialty metals that do not comply with 
the requirement in section 2533b(a) of such title. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00395
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
396 
(b) SINGLE CONTRACT WAIVERS.—In making a do-
mestic non-availability determination pursuant to 2533b(b) 
of such title that applies to a single prime contract of the 
Department of Defense, the Secretary concerned shall en-
sure, after making the determination, that— 
(1) the information used as justification in mak-
ing the determination is made publicly available to 
the maximum extent practicable; and 
(2) the contracting officer for the contract con-
cerned receives an accounting of all end items, compo-
nents, or specialty metals that do not comply with the 
requirement in section 2533b (a) of such title. 
(c) SPECIALTY METAL DEFINED.—In this section, the 
term ‘‘specialty metal’’ has the meaning provided in section 
2533b(I) of title 10, United States Code. 
(d) EFFECTIVE DATE.—This section shall be effective 
as of February 1, 2007. 
SEC. 847. MULTIPLE COST THRESHOLD BREACHES. 
(a) EVALUATION OF COST THRESHOLD BREACHES.— 
Within 30 days following the end of a fiscal year, each com-
ponent of the Department of Defense shall evaluate, for the 
preceding fiscal year— 
(1) the number of acquisition programs within 
the component that experienced significant and crit-
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00396
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
397 
ical cost threshold breaches, as defined in section 2433 
of title 10, United States Code; and 
(2) the number of technology development pro-
grams within the component that, prior to a Mile-
stone B decision, required recertification by the Joint 
Requirements Oversight Council. 
(b) IDENTIFICATION AND REPORT ON SYSTEMIC DEFI-
CIENCIES.—Within 90 days following the end of a fiscal 
year, each component of the Department of Defense that has 
identified more than two such programs under subsection 
(a), shall identify systemic deficiencies in its acquisition 
policies or practices that may have contributed to the cost 
growth in such programs and provide a report to the Sec-
retary of Defense outlining corrective actions to be taken. 
(c) ASSESSMENT OF CORRECTIVE ACTIONS.—Within 
120 days following the end of a fiscal year, the Secretary 
of Defense shall provide an assessment of the adequacy of 
such corrective actions, along with the details of the defi-
ciencies leading to such cost growth, to the congressional 
defense committees. 
(d) DEFINITION OF COMPONENT.—In this section, the 
term ‘‘component’’ means a military department, a combat-
ant command, a Defense Agency, and any part of the Office 
of the Secretary of Defense that manages a major defense 
acquisition program. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00397
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
398 
SEC. 848. PHONE CARDS. 
(a) COMPETITIVE PROCEDURES REQUIRED.—When 
the Secretary of Defense considers it necessary to provide 
morale, welfare, and recreation telephone services for mili-
tary personnel serving in combat zones, he shall use com-
petitive procedures when entering into a contract to provide 
those services. In evaluating contract proposals for such 
services, the Secretary shall require bid proposals to include 
options that minimize the cost of the phone services to indi-
vidual users while providing individual users the flexibility 
of using phone cards from other than the bidding entity. 
(b) EFFECTIVE DATE.—This section shall apply to 
any new contract to provide morale welfare and recreation 
phone services in a combat theater that is entered into after 
the date of enactment of this Act. With regard to the exten-
sion of any contract to provide such services that is in exist-
ence on such date of enactment, the Secretary shall examine 
with the contractor whether it is possible to further reduce 
the cost of the services to the soldier by allowing the use 
of phone cards other than the contractor’s. The Secretary 
shall submit the results of his review to the Committees on 
Armed Services of the Senate and the House of Representa-
tives. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00398
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
399 
SEC. 849. JURISDICTION UNDER CONTRACT DISPUTES ACT 
OF 1978 OVER CLAIMS, DISPUTES, AND AP-
PEALS ARISING OUT OF MARITIME CON-
TRACTS. 
Section 4 of the Contract Disputes Act of 1978 (41 
U.S.C. 603) is amended by striking ‘‘of maritime con-
tracts,’’ and all that follows through the end of the section 
and inserting ‘‘of maritime contracts, shall be governed ex-
clusively by this Act.’’ 
SEC. 850. CLARIFICATION OF JURISDICTION OF THE 
UNITED STATES DISTRICT COURTS TO HEAR 
BID PROTEST DISPUTES INVOLVING MARI-
TIME CONTRACTS. 
Section 1491 of title 28, United States Code, is amend-
ed by adding at the end the following: 
‘‘(d) Jurisdiction over any actions described under 
subsection (b)(1) of this section arising out of a maritime 
contract (as that term is used in the Contract Disputes Act 
of 1978 (41 U.S.C. 601 et seq.)) or a proposed maritime 
contract shall be governed by this section, and shall not be 
subject to the jurisdiction of the district courts of the United 
States under chapter 309 of title 46, popularly known as 
the Suits in Admiralty Act, or chapter 311 of title 46, popu-
larly known as the Public Vessels Act.’’. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00399
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
400 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Additional requirements relating to limitation on major Department of 
Defense headquarters activities personnel. 
Sec. 902. Flexibility to adjust the number of deputy chiefs and assistant chiefs. 
Sec. 903. Change in eligibility requirements for appointment to Department of 
Defense leadership positions. 
Sec. 904. Revisions in functions and activities of special operations command. 
Sec. 905. Redesignation of the Department of the Navy as the Department of the 
Navy and Marine Corps. 
Sec. 906. Management system of the Department of Defense. 
Sec. 907. Acquisition parity for Special Operations Command. 
Sec. 908. Department of Defense Board of Actuaries. 
Subtitle B—Space Activities 
Sec. 911. Space protection policy and strategy. 
Sec. 912. Biennial report on management of space cadre within the Department 
of Defense. 
Subtitle C—Chemical Demilitarization Program 
Sec. 921. Chemical demilitarization citizens advisory commissions. 
Sec. 922. Sense of Congress on completion of destruction of United States chem-
ical weapons stockpile. 
Subtitle D—Intelligence-Related Matters 
Sec. 931. Reports on foreign language proficiency. 
Sec. 932. Technical amendments to title 10, United States Code, arising from en-
actment of the Intelligence Reform and Terrorism Prevention 
Act of 2004. 
Subtitle E—Roles and Missions Analysis 
Sec. 941. Analysis and organization of roles and missions of Department of De-
fense. 
Sec. 942. Identification of core competencies of the military departments and 
other entities within the Department of Defense. 
Sec. 943. Review of capabilities of the military departments and other entities. 
Sec. 944. Joint Requirements Oversight Council additional duties relating to core 
mission areas. 
Sec. 945. Requirement for certification of major systems prior to technology devel-
opment. 
Sec. 946. Presentation of future-years mission budget by core mission area. 
Sec. 947. Future capability planning by Joint Requirements Oversight Council. 
Subtitle F—Other Matters 
Sec. 951. Department of Defense consideration of effect of climate change on De-
partment facilities, capabilities, and missions. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00400
Fmt 6652
Sfmt 6213
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
401 
Sec. 952. Interagency policy coordination. 
Sec. 953. Expansion of employment creditable under service agreements under 
National Security Education Program. 
Sec. 954. Study of national security interagency system. 
Subtitle A—Department of Defense 
Management 
SEC. 901. ADDITIONAL REQUIREMENTS RELATING TO LIMI-
TATION ON MAJOR DEPARTMENT OF DE-
FENSE 
HEADQUARTERS 
ACTIVITIES 
PER-
SONNEL. 
Section 130a of title 10, United States Code, is amend-
ed— 
(1) in subsection (c)(2), by striking ‘‘may not be 
changed except as provided by law.’’ and inserting 
‘‘may be changed only if the Secretary of Defense sub-
mits proposed changes to Congress with the defense 
budget materials. Any such submitted changes shall 
take effect on the January 1 following the submis-
sion.’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(e) FLEXIBILITY IN ORDER TO ACHIEVE COST SAV-
INGS OR ELIMINATE CONTRACTS ASSOCIATED WITH IN-
HERENTLY GOVERNMENTAL FUNCTIONS.—(1) If the Sec-
retary of a military department or the commander of a 
combatant command certifies to the Secretary of Defense 
that a waiver of the limitation in subsection (a) or a re-
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00401
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
402 
allocation among the military departments or combatant 
commands of the number of personnel permissible under 
subsection (a) either is expected to result in a cost savings 
or is necessary to eliminate a contract associated with an 
inherently governmental function (including cost savings or 
the elimination of a contract resulting from guidelines and 
procedures prescribed pursuant to section 343 of the Na-
tional Defense Authorization Act for Fiscal Year 2006 (Pub-
lic Law 109-163)), the Secretary of Defense shall waive such 
limitation or make such reallocation to the extent necessary 
to achieve the cost savings or to eliminate the contract. 
‘‘(2) The Secretary of Defense shall include a report, 
with the defense budget materials for a fiscal year, outlining 
the uses of the waiver or reallocation authority provided 
in paragraph (1) during the preceding fiscal year, includ-
ing the number of times the waiver or reallocation authority 
was used, the purposes for which it was used, expected cost 
savings, if any, and the number of personnel affected. 
‘‘(f) DEFENSE BUDGET MATERIALS.—In this section, 
the term ‘defense budget materials’, with respect to a fiscal 
year, means the materials submitted to Congress by the Sec-
retary of Defense in support of the budget for that fiscal 
year that is submitted to Congress by the President under 
section 1105(a) of title 31.’’. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00402
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
403 
SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEP-
UTY CHIEFS AND ASSISTANT CHIEFS. 
(a) ARMY.—Section 3035(b) of title 10, United States 
Code, is amended to read as follows: 
‘‘(b) The Secretary of the Army shall prescribe the 
number of Deputy Chiefs of Staff and Assistant Chiefs of 
Staff, for a total of not more than eight positions.’’. 
(b) NAVY.— 
(1) DEPUTY CHIEFS OF NAVAL OPERATIONS.— 
Section 5036(a) of title 10, United States Code, is 
amended— 
(A) by striking ‘‘There are in the Office of 
the Chief of Naval Operations not more than five 
Deputy Chiefs of Naval Operations,’’ and insert-
ing ‘‘There are Deputy Chiefs of Naval Oper-
ations in the Office of the Chief of Naval Oper-
ations,’’ ; and 
(B) by adding at the end the following: 
‘‘The Secretary of the Navy shall prescribe the 
number of Deputy Chiefs of Naval Operations 
under this section and Assistant Chiefs of Naval 
Operations under section 5037 of this title, for a 
total of not more than eight positions.’’. 
(2) ASSISTANT CHIEFS OF NAVAL OPERATIONS.— 
Section 5037(a) of such title is amended— 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00403
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
404 
(A) by striking ‘‘There are in the Office of 
the Chief of Naval Operations not more than 
three Assistant Chiefs of Naval Operations,’’ and 
inserting ‘‘There are Assistant Chiefs of Naval 
Operations in the Office of the Chief of Naval 
Operations,’’; and 
(B) by adding at the end the following: 
‘‘The Secretary of the Navy shall prescribe the 
number of Assistant Chiefs of Naval Operations 
in accordance with section 5036(a) of this title.’’. 
(c) AIR FORCE.—Section 8035(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(b) The Secretary of the Air Force shall prescribe the 
number of Deputy Chiefs of Staff and Assistant Chiefs of 
Staff, for a total of not more than eight positions.’’. 
SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR AP-
POINTMENT TO DEPARTMENT OF DEFENSE 
LEADERSHIP POSITIONS. 
(a) SECRETARY OF DEFENSE.—Section 113(a) of title 
10, United States Code, is amended by striking ‘‘10’’ and 
inserting ‘‘five’’. 
(b) DEPUTY
SECRETARY
OF
DEFENSE.—Section 
132(a) of such title is amended by striking ‘‘ten’’ and in-
serting ‘‘five’’. 
VerDate Aug 31 2005 
04:26 May 12, 2007
Jkt 059200
PO 00000
Frm 00404
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
405 
(c) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(a) of such title is amended by striking ‘‘10’’ 
and inserting ‘‘five’’. 
SEC. 904. REVISIONS IN FUNCTIONS AND ACTIVITIES OF 
SPECIAL OPERATIONS COMMAND. 
(a) 
ADDITIONAL
PRINCIPAL
FUNCTION.—Section 
167(a) of title 10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘With the advice’’; 
and 
(2) by striking the sentence beginning with ‘‘The 
principal function’’ and inserting the following new 
paragraph: 
‘‘(2) The principal functions of the command are— 
‘‘(A) to prepare special operations forces to carry 
out assigned missions; and 
‘‘(B) if directed by the President or the Secretary 
of Defense, to plan, synchronize, and carry out global 
missions against terrorists.’’. 
(b) REPORT REQUIREMENTS.— 
(1) REPORT ON UNCONVENTIONAL WARFARE.— 
Not later than March 1, 2008, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a report containing a plan to meet the future 
requirements of unconventional warfare. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00405
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
406 
(2) ANNUAL REPORT ON PERSONNEL MANAGE-
MENT.—Not later than March 1, 2008, and not later 
than September 1 each year thereafter, the Secretary 
of Defense shall submit to the congressional defense 
committees a report on the adequacy of Department 
of Defense personnel management programs to meet 
the needs of the special operations command. 
(c) ADDITIONAL SPECIAL OPERATIONS ACTIVITIES.— 
Subsection (j) of section 167 of such title is amended to read 
as follows: 
‘‘(j) SPECIAL OPERATIONS ACTIVITIES.—For purposes 
of this section, special operations activities include each of 
the following insofar as it relates to special operations: 
‘‘(1) Unconventional warfare. 
‘‘(2) Counterterrorism. 
‘‘(3) Counterinsurgency. 
‘‘(4) Counterproliferation of weapons of mass de-
struction. 
‘‘(5) Direct action. 
‘‘(6) Strategic reconnaissance. 
‘‘(7) Foreign internal defense. 
‘‘(8) Civil-military operations. 
‘‘(9) Psychological and information operations. 
‘‘(10) Humanitarian assistance. 
‘‘(11) Theater search and rescue. 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00406
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
407 
‘‘(12) Such other activities as may be specified 
by the President or the Secretary of Defense.’’. 
SEC. 905. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION
OF MILITARY DEPARTMENT.— 
The military department designated as the Department of 
the Navy is redesignated as the Department of the Navy 
and Marine Corps. 
(b) REDESIGNATION
OF
SECRETARY
AND
OTHER 
STATUTORY OFFICES.— 
(1) SECRETARY.—The position of the Secretary 
of the Navy is redesignated as the Secretary of the 
Navy and Marine Corps. 
(2) OTHER STATUTORY OFFICES.—The positions 
of the Under Secretary of the Navy, the four Assistant 
Secretaries of the Navy, and the General Counsel of 
the Department of the Navy are redesignated as the 
Under Secretary of the Navy and Marine Corps, the 
Assistant Secretaries of the Navy and Marine Corps, 
and the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(c) CONFORMING AMENDMENTS TO TITLE 10, UNITED 
STATES CODE.— 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00407
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
408 
(1) DEFINITION OF ‘‘MILITARY DEPARTMENT’’.— 
Paragraph (8) of section 101(a) of title 10, United 
States Code, is amended to read as follows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the Navy 
and Marine Corps, and the Department of the Air 
Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as fol-
lows: ‘‘The Department of the Navy and Marine 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking ‘‘There 
is a Secretary of the Navy’’ and inserting ‘‘There is 
a Secretary of the Navy and Marine Corps’’. 
(4) CHAPTER HEADINGS.— 
(A) The heading of chapter 503 of such title 
is amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such title 
is amended to read as follows: 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00408
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
409 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.— 
(A) Title 10, United States Code, is amend-
ed by striking ‘‘Department of the Navy’’ and 
‘‘Secretary of the Navy’’ each place they appear 
other than as specified in paragraphs (1), (2), 
(3), and (4) (including in section headings, sub-
section captions, tables of chapters, and tables of 
sections) and inserting ‘‘Department of the Navy 
and Marine Corps’’ and ‘‘Secretary of the Navy 
and Marine Corps’’, respectively, in each case 
with the matter inserted to be in the same type-
face and typestyle as the matter stricken. 
(B)(i) Sections 5013(f), 5014(b)(2), 5016(a), 
5017(2), 5032(a), and 5042(a) of such title are 
amended by striking ‘‘Assistant Secretaries of the 
Navy’’ and inserting ‘‘Assistant Secretaries of 
the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in the 
table of sections at the beginning of chapter 503 
of such title, are each amended by inserting ‘‘and 
Marine Corps’’ after ‘‘of the Navy’’, with the 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00409
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
410 
matter inserted in each case to be in the same 
typeface and typestyle as the matter amended. 
(d) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘Department 
of the Navy’’ and ‘‘Secretary of the Navy’’ each place they 
appear and inserting ‘‘Department of the Navy and Marine 
Corps’’ and ‘‘Secretary of the Navy and Marine Corps’’, 
respectively. 
(e) OTHER REFERENCES.—Any reference in any law 
other than in title 10 or title 37, United States Code, or 
in any regulation, document, record, or other paper of the 
United States, to the Department of the Navy shall be con-
sidered to be a reference to the Department of the Navy and 
Marine Corps. Any such reference to an office specified in 
subsection (b)(2) shall be considered to be a reference to that 
office as redesignated by that subsection. 
(f) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first day 
of the first month beginning more than 60 days after the 
date of the enactment of this Act. 
SEC. 906. MANAGEMENT SYSTEM OF THE DEPARTMENT OF 
DEFENSE. 
(a) DUTIES RELATING TO MANAGEMENT OF THE DE-
PARTMENT OF DEFENSE.—The Secretary of Defense shall 
assign duties relating to strategic level oversight of all sig-
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00410
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
411 
nificant management issues of the Department of Defense 
to a senior official of a rank not lower than an Under Sec-
retary of Defense. 
(b) MANAGEMENT SYSTEM.—The Secretary of Defense 
shall adopt a management structure for the Department of 
Defense, including business support areas, which shall de-
fine roles, processes, and accountability for achieving the 
essential management goals of the Department of Defense 
(c) ESSENTIAL MANAGEMENT GOALS.—The Secretary 
of Defense shall establish essential management goals of the 
Department of Defense, including at a minimum, the fol-
lowing: 
(1) A comprehensive business transformation 
plan, with measurable performance goals and objec-
tives, to achieve an integrated management system for 
business support areas of the Department of Defense. 
(2) A well-defined enterprise-wide business sys-
tems architecture capable of providing accurate and 
timely information in support of major investment 
decisions. 
(3) Financial statements for all elements of the 
Department of Defense that receive clean audit opin-
ions during independent financial audits. 
(d) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00411
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS
412 
provide to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Rep-
resentatives a report on the implementation of this section. 
Matters covered in the report shall include the following: 
(1) The assignment of duties relating to manage-
ment as required by subsection (a). 
(2) Progress toward implementing a manage-
ment structure for the Department of Defense as re-
quired by subsection (b). 
(3) A description of the essential management 
goals of the Department of Defense established pursu-
ant to subsection (c). 
(4) A description of Department of Defense ef-
forts to achieve its essential management goals as de-
scribed pursuant to paragraph (3). 
SEC. 907. ACQUISITION PARITY FOR SPECIAL OPERATIONS 
COMMAND. 
(a) REVISION IN GUIDANCE REGARDING EXERCISE OF 
ACQUISITION AUTHORITY BY COMMANDERS OF COMBATANT 
COMMANDS.—Subparagraph (B) of section 905(b)(1) of the 
John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109–364; 120 Stat. 2353) is amend-
ed by striking ‘‘and mutually supportive of’’ . 
(b) REVISION IN CONSULTATION REQUIREMENT.—Sec-
tion 905(c) of such Act is amended by striking ‘‘and the 
VerDate Aug 31 2005 
03:14 May 12, 2007
Jkt 059200
PO 00000
Frm 00412
Fmt 6652
Sfmt 6203
E:\BILLS\H1585.RH
H1585
mstockstill on PROD1PC66 with BILLS