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striking ‘‘shall commence’’ and all that follows and insert-
ing ‘‘shall commence—
‘‘(i) as of the date the court martial sen-
tence is adjudged if the sentence, as adjudged, 
includes a dismissal, dishonorable discharge, 
bad conduct discharge, or forfeiture of all pay 
and allowances; or 
‘‘(ii) if there is a pretrial agreement that 
includes disapproval or suspension of the dis-
missal, dishonorable discharge, bad conduct dis-
charge, or forfeiture of all pay and allowances, 
as of the date of the approval of the court-mar-
tial sentence by the person acting under section 
860(c) of this title (article 60(c) of the Uniform 
Code of Military Justice) if the sentence, as ap-
proved, includes an unsuspended dismissal, dis-
honorable discharge, bad conduct discharge, or 
forfeiture of all pay and allowances;’’. 
(b) DURATION.—Paragraph (2) of such section is 
amended by striking ‘‘, except that’’ and all that follows 
through ‘‘12 months’’. 
(c) TERMINATION.—Paragraph (3)(A) of such sec-
tion is amended by striking ‘‘punishment applicable to the 
member under the sentence is remitted, set aside, or miti-
gated’’ and inserting ‘‘conviction is disapproved by the
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person acting under section 860(c) of this title (article 
60(c) of the Uniform Code of Military Justice) or set 
aside, or each such punishment applicable to the member 
under the sentence is disapproved by the person acting 
under section 860(c) of this title, remitted, set aside, sus-
pended, or mitigated’’.
SEC. 573. FLEXIBILITY IN ELIGIBILITY FOR TRANSITIONAL 
COMPENSATION. 
(a) AUTHORITY.—Section 1059 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(m) ADDITIONAL ELIGIBILITY.—The Secretary con-
cerned, under regulations prescribed under subsection (k), 
may authorize eligibility for benefits under this section to 
dependents of a member or former member of the armed 
forces not covered by subsection (b) if the Secretary con-
cerned determines that there are extenuating cir-
cumstances such that granting benefits under this section 
is consistent with the intent of this section.’’. 
(b) EFFECTIVE DATE.—The authority under sub-
section (m) of section 1059 of title 10, United States 
Code, as added by subsection (a), may only be exercised 
with respect to eligibility for benefits under such section 
by reason of conduct on or after the date of the enactment 
of this Act.
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SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIG-
GERING COVERAGE. 
Section 1059(b)(2) of title 10, United States Code, 
is amended by inserting ‘‘, voluntarily or involuntarily,’’ 
after ‘‘administratively separated’’.
SEC. 575. ON-GOING REVIEW GROUP. 
Not later than two years after the date of the enact-
ment of this Act, the Secretary of Defense shall convene 
a working group of not less than 12 members, composed 
in the same manner as the Defense Task Force on Domes-
tic Violence established pursuant to section 591 of the Na-
tional Defense Authorization Act for Fiscal Year 2000 
(Public Law 106–65). The purpose of the working group 
shall be to review and assess the progress of the Depart-
ment of Defense in implementation of the recommenda-
tions of the Defense Task Force on Domestic Violence. 
In reviewing the status of the Department’s efforts, the 
group should specifically focus on the Department’s ef-
forts to ensure confidentiality for victims and account-
ability and education of commanding officers and chap-
lains.
SEC. 576. RESOURCES FOR DEPARTMENT OF DEFENSE IM-
PLEMENTATION ORGANIZATION. 
The Secretary of Defense shall ensure that necessary 
resources, including personnel, facilities, and other admin-
istrative support, are provided to the organization within
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the Office of the Secretary of Defense with direct responsi-
bility for oversight of implementation by the military de-
partments of recommendations of the Task Force in order 
for that organization to carry out its duties and respon-
sibilities.
SEC. 577. FATALITY REVIEWS. 
(a) REVIEW OF FATALITIES.—The Secretary of De-
fense shall conduct a multidisciplinary, impartial review 
(referred to as a ‘‘fatality review’’) in the case of each 
fatality known or suspected to have resulted from domestic 
violence or child abuse against—
(1) a member of the Armed Forces; 
(2) a current or former dependent of a member 
of the Armed Forces; or 
(3) a current or former intimate partner who 
has a child in common or has shared a common 
domicile with a member of the Armed Forces. 
(b) MATTERS TO BE INCLUDED.—The report of a fa-
tality review under subsection (a) shall, at a minimum, 
include the following: 
(1) An executive summary. 
(2) Data setting forth victim demographics, in-
juries, autopsy findings, homicide or suicide meth-
ods, weapons, police information, assailant demo-
graphics, and household and family information.
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(3) Legal disposition. 
(4) System intervention and failures within the 
Department of Defense. 
(5) A discussion of significant findings. 
(6) Recommendations for systemic changes 
within the Department of Defense.
SEC. 578. SENSE OF CONGRESS. 
It is the sense of Congress that—
(1) the Secretary of Defense should adopt the 
strategic plan proposed by the Defense Task Force 
on Domestic Violence in its Third Year Report, as 
required by section 591(a) of the Department of De-
fense Authorization Act for Fiscal Year 2000 (Pub-
lic Law 106–65); and 
(2) the Secretary of each military department 
should establish and support a Victim Advocate Pro-
tocol and provide for nondisclosure to ensure con-
fidentiality for victims who come forward to receive 
advocacy, support, information, and resources, as 
recommended by the Defense Task Force on Domes-
tic Violence.
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TITLE VI—COMPENSATION AND 
OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2004. 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The 
adjustment to become effective during fiscal year 2004 re-
quired by section 1009 of title 37, United States Code, 
in the rates of monthly basic pay authorized members of 
the uniformed services shall not be made. 
(b) INCREASE
IN BASIC PAY
FOR MEMBERS
OF 
ARMED FORCES.—Effective on January 1, 2004, the rates 
of monthly basic pay for members of the Armed Forces 
within each pay grade are as follows:
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COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
O–10 2 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00
O–9 ...
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 ...
7,751.10 
8,004.90 
8,173.20 
8,220.60 
8,430.30
O–7 ...
6,440.70 
6,739.80 
6,878.40 
6,988.50 
7,187.40
O–6 ...
4,773.60 
5,244.30 
5,588.40 
5,588.40 
5,609.70
O–5 ...
3,979.50 
4,482.90 
4,793.40 
4,851.60 
5,044.80
O–4 ...
3,433.50 
3,974.70 
4,239.90 
4,299.00 
4,545.30
O–3 3
3,018.90 
3,422.40 
3,693.90 
4,027.20 
4,220.10
O–2 3
2,595.60 
2,956.50 
3,405.00 
3,519.90 
3,592.50
O–1 3
2,253.60 
2,345.10 
2,834.70 
2,834.70 
2,834.70
Over 8 
Over 10 
Over 12 
Over 14 
Over 16
O–10 2 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 ...
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 ...
8,781.90 
8,863.50 
9,197.10 
9,292.80 
9,579.90
O–7 ...
7,384.20 
7,611.90 
7,839.00 
8,066.70 
8,781.90
O–6 ...
5,850.00 
5,882.10 
5,882.10 
6,216.30 
6,807.30
O–5 ...
5,161.20 
5,415.90 
5,602.80 
5,844.00 
6,213.60
O–4 ...
4,809.30 
5,137.80 
5,394.00 
5,571.60 
5,673.60
O–3 3
4,431.60 
4,568.70 
4,794.30 
4,911.30 
4,911.30
O–2 3
3,592.50 
3,592.50 
3,592.50 
3,592.50 
3,592.50
O–1 3
2,834.70 
2,834.70 
2,834.70 
2,834.70 
2,834.70
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2 
$0.00 
$12,524.70 
$12,586.20 
$12,847.80 
$13,303.80
O–9 ...
0.00 
10,954.50 
11,112.30 
11,340.30 
11,738.40
O–8 ...
9,995.70 
10,379.10 
10,635.30 
10,635.30 
10,635.30
O–7 ...
9,386.10 
9,386.10 
9,386.10 
9,386.10 
9,433.50
O–6 ...
7,154.10 
7,500.90 
7,698.30 
7,897.80 
8,285.40
O–5 ...
6,389.70 
6,563.40 
6,760.80 
6,760.80 
6,760.80
O–4 ...
5,733.00 
5,733.00 
5,733.00 
5,733.00 
5,733.00
O–3 3
4,911.30 
4,911.30 
4,911.30 
4,911.30 
4,911.30
O–2 3
3,592.50 
3,592.50 
3,592.50 
3,592.50 
3,592.50
O–1 3
2,834.70 
2,834.70 
2,834.70 
2,834.70 
2,834.70
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for 
commissioned officers in pay grades O–7 through O–10 may not exceed the rate of pay for level III 
of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the 
rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an officer in this grade while serv-
ing as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief 
of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Com-
mandant of the Coast Guard, is $14,679.30, regardless of cumulative years of service computed 
under section 205 of title 37, United States Code. 
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have 
been credited with over 4 years of active duty service as an enlisted member or warrant officer.
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE 
AS AN ENLISTED MEMBER OR WARRANT OFFICER 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
O–3E 
$0.00 
$0.00 
$0.00 
$4,027.20 
$4,220.10
O–2E 
0.00 
0.00 
0.00 
3,537.00 
3,609.90
O–1E 
0.00 
0.00 
0.00 
2,848.50 
3,042.30
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E 
$4,431.60 
$4,568.70 
$4,794.30 
$4,984.20 
$5,092.80
O–2E 
3,724.80 
3,918.60 
4,068.60 
4,180.20 
4,180.20
O–1E 
3,154.50 
3,269.40 
3,382.20 
3,537.00 
3,537.00
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E 
$5,241.30 
$5,241.30 
$5,241.30 
$5,241.30 
$5,241.30
O–2E 
4,180.20 
4,180.20 
4,180.20 
4,180.20 
4,180.20
O–1E 
3,537.00 
3,537.00 
3,537.00 
3,537.00 
3,537.00
WARRANT OFFICERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
W–5 ..
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 ..
3,119.40 
3,355.80 
3,452.40 
3,547.20 
3,710.40
W–3 ..
2,848.80 
2,967.90 
3,089.40 
3,129.30 
3,257.10
W–2 ..
2,505.90 
2,649.00 
2,774.10 
2,865.30 
2,943.30
W–1 ..
2,212.80 
2,394.00 
2,515.20 
2,593.50 
2,802.30
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ..
$0.00 
$0.00 
$0.00 
$0.00 
$0.00
W–4 ..
3,871.50 
4,035.00 
4,194.30 
4,359.00 
4,617.30
W–3 ..
3,403.20 
3,595.80 
3,786.30 
3,988.80 
4,140.60
W–2 ..
3,157.80 
3,321.60 
3,443.40 
3,562.20 
3,643.80
W–1 ..
2,928.30 
3,039.90 
3,164.70 
3,247.20 
3,321.90
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ..
$0.00 
$5,360.70 
$5,544.30 
$5,728.80 
$5,914.20
W–4 ..
4,782.60 
4,944.30 
5,112.00 
5,277.00 
5,445.90
W–3 ..
4,291.80 
4,356.90 
4,424.10 
4,570.20 
4,716.30 
W–2 ..
3,712.50 
3,843.00 
3,972.60 
4,103.70 
4,103.70
W–1 ..
3,443.70 
3,535.80 
3,535.80 
3,535.80 
3,535.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for war-
rant officers may not exceed the rate of pay for level V of the Executive Schedule.
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ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
E–9 2
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
E–8 ...
0.00 
0.00 
0.00 
0.00 
0.00 
E–7 ...
2,145.00 
2,341.20 
2,430.60 
2,549.70 
2,642.10
E–6 ...
1,855.50 
2,041.20 
2,131.20 
2,218.80 
2,310.00
E–5 ...
1,700.10 
1,813.50 
1,901.10 
1,991.10 
2,130.60
E–4 ...
1,558.20 
1,638.30 
1,726.80 
1,814.10 
1,891.50
E–3 ...
1,407.00 
1,495.50 
1,585.50 
1,585.50 
1,585.50
E–2 ...
1,331.40 
1,331.40 
1,331.40 
1,331.40 
1,331.40
E–1 3
1,173.90 
1,173.90 
1,173.90 
1,173.90 
1,173.90
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00 
$3,769.20 
$3,854.70 
$3,962.40 
$4,089.30
E–8 ...
3,085.50 
3,222.00 
3,306.30 
3,407.70 
3,517.50
E–7 ...
2,801.40 
2,891.10 
2,980.20 
3,139.80 
3,219.60
E–6 ...
2,516.10 
2,596.20 
2,685.30 
2,763.30 
2,790.90
E–5 ...
2,250.90 
2,339.70 
2,367.90 
2,367.90 
2,367.90
E–4 ...
1,891.50 
1,891.50 
1,891.50 
1,891.50 
1,891.50
E–3 ...
1,585.50 
1,585.50 
1,585.50 
1,585.50 
1,585.50
E–2 ...
1,331.40 
1,331.40 
1,331.40 
1,331.40 
1,331.40
E–1 3
1,173.90 
1,173.90 
1,173.90 
1,173.90 
1,173.90
Over 18 
Over 20
Over 22
Over 24
Over 26
E–9 2
$4,216.50 
$4,421.10 
$4,594.20 
$4,776.60 
$5,054.70 
E–8 ...
3,715.50 
3,815.70 
3,986.40 
4,081.20 
4,314.30
E–7 ...
3,295.50 
3,341.70 
3,498.00 
3,599.10 
3,855.00
E–6 ...
2,809.80 
2,809.80 
2,809.80 
2,809.80 
2,809.80
E–5 ...
2,367.90 
2,367.90 
2,367.90 
2,367.90 
2,367.90
E–4 ...
1,891.50 
1,891.50 
1,891.50 
1,891.50 
1,891.50
E–3 ...
1,585.50 
1,585.50 
1,585.50 
1,585.50 
1,585.50
E–2 ...
1,331.40 
1,331.40 
1,331.40 
1,331.40 
1,331.40
E–1 3
1,173.90 
1,173.90 
1,173.90 
1,173.90 
1,173.90
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for en-
listed members may not exceed the rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade 
while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Mas-
ter Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer 
of the Coast Guard, is $6,090.90, regardless of cumulative years of service computed under section 
205 of title 37, United States Code. 
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, 
the rate of basic pay is $1,086.00. 
(c) INCREASE IN BASIC PAY FOR OTHER MEMBERS 
OF UNIFORMED SERVICES.—Effective on January 1, 
2004, the rates of monthly basic pay for members of the 
National Oceanic and Atmospheric Administration and 
the Public Health Service are increased by 2 percent.
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(d) DEFINITIONS.—In this section, the terms ‘‘armed 
forces’’ and ‘‘uniformed services’’ have the meanings given 
such terms in section 101 of title 37, United States Code.
SEC. 602. COMPUTATION OF BASIC PAY RATE FOR COMMIS-
SIONED OFFICERS WITH PRIOR ENLISTED OR 
WARRANT OFFICER SERVICE. 
Section 203(d)(2) of title 37, United States Code, is 
amended—
(1) in subparagraph (A), by striking ‘‘enlisted 
member,’’ and all that follows through the period 
and inserting ‘‘enlisted member.’’; and 
(2) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) Service as a warrant officer, as an enlisted 
member, or as a warrant officer and an enlisted 
member, for which at least 1,460 points have been 
credited to the officer for the purposes of section 
12732(a)(2) of title 10.’’.
SEC. 603. SPECIAL SUBSISTENCE ALLOWANCE AUTHORI-
TIES FOR MEMBERS ASSIGNED TO HIGH-
COST DUTY LOCATION OR UNDER OTHER 
UNIQUE AND UNUSUAL CIRCUMSTANCES. 
(a) IN GENERAL.—Section 402 of title 37, United 
States Code, is amended—
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(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) SPECIAL RULE FOR HIGH-COST DUTY LOCA-
TIONS
AND
OTHER
UNIQUE
AND
UNUSUAL
CIR-
CUMSTANCES.—The Secretary of Defense may authorize 
a member of the armed forces who is assigned to duty 
in a high-cost duty location or under other unique and 
unusual circumstances, but is not entitled to the meals 
portion of the per diem in connection with that duty, to 
receive any or all of the following: 
‘‘(1) Meals at no cost to the member, regardless 
of the entitlement of the member to a basic allow-
ance for subsistence under subsection (a). 
‘‘(2) A basic allowance for subsistence at the 
standard rate, regardless of the entitlement of the 
member for all meals or select meals during the duty 
day. 
‘‘(3) A supplemental subsistence allowance at a 
rate higher than the basic allowance for subsistence 
rates in effect under this section, regardless of the 
entitlement of the member for all meals or select 
meals during the duty day.’’.
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(b) RETROACTIVE
AND
PROSPECTIVE
APPLICA-
TION.—Subsection (f) of section 402 of title 37, United 
States Code, as added by subsection (a), shall apply with 
respect to members of the Armed Forces assigned to duty 
in a high-cost duty location or under other unique and 
unusual circumstances, as determined pursuant to regula-
tions prescribed pursuant to subsection (c), after Sep-
tember 11, 2001. 
(c) REGULATIONS; TIME LIMITS.—Final regulations 
to carry out subsection (f) of section 402 of title 37, 
United States Code, as added by subsection (a), shall be 
prescribed not later than 180 days after the date of the 
enactment of this Act. The regulations shall provide a 
method by which a member of the Armed Forces covered 
by such subsection (f) may obtain reimbursement for sub-
sistence expenses incurred by the member during the pe-
riod beginning on September 11, 2001, and ending on the 
date the regulations take effect.
Subtitle B—Bonuses and Special 
and Incentive Pays
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR RESERVE 
FORCES. 
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f ) of title 37, United States Code, is amend-
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ed by striking ‘‘December 31, 2003’’ and inserting ‘‘De-
cember 31, 2004’’. 
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘Decem-
ber 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(c) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section 
308d(c) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(d) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(e) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘Decem-
ber 31, 2004’’. 
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section 
308i(f ) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR CERTAIN 
HEALTH CARE PROFESSIONALS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States
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Code, is amended by striking ‘‘December 31, 2003’’ and 
inserting ‘‘December 31, 2004’’. 
(b) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of such title is 
amended by striking ‘‘January 1, 2004’’ and inserting 
‘‘January 1, 2005’’. 
(c) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2003’’ and inserting 
‘‘December 31, 2004’’. 
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘Decem-
ber 31, 2004’’. 
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH 
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPE-
CIALTIES.—Section 302g(f ) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’. 
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—
Section 302h(a)(1) of such title is amended by striking 
‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’.
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SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND 
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 
312(e) of title 37, United States Code, is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(c) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE 
BONUS.—Section 312c(d) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’. 
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND 
SPECIAL PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘Decem-
ber 31, 2004’’. 
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
ing ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’.
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(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 309(e) of such title is amended by striking ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(d) RETENTION BONUS FOR MEMBERS WITH CRIT-
ICAL MILITARY SKILLS.—Section 323(i) of such title is 
amended by striking ‘‘December 31, 2003’’ and inserting 
‘‘December 31, 2004’’. 
(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’.
SEC. 615. COMPUTATION OF HAZARDOUS DUTY INCENTIVE 
PAY FOR DEMOLITION DUTY AND PARA-
CHUTE JUMPING BY MEMBERS OF RESERVE 
COMPONENTS ENTITLED TO COMPENSATION 
UNDER SECTION 206 OF TITLE 37. 
(a) IN GENERAL.—Section 301(f) of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(3) Notwithstanding paragraphs (1) or (2), if a 
member described in paragraph (1) performs the duty de-
scribed in clauses (3) or (4) of subsection (a) in any 
month, the member shall be entitled for that month to 
the full amount specified in the first sentence of subsection 
(c)(1), in the case of the duty described in clause (4) of
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subsection (a) or parachute jumping involving the use of 
a static line, or the full amount specified in the second 
sentence of subsection (c)(1), in the case of parachute 
jumping in military free fall operations.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect October 1, 2003.
SEC. 616. AVAILABILITY OF HOSTILE FIRE AND IMMINENT 
DANGER PAY FOR RESERVE COMPONENT 
MEMBERS ON INACTIVE DUTY. 
(a) EXPANSION AND CLARIFICATION OF CURRENT 
LAW.—Section 310 of title 37, United States Code, is 
amended—
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking subsection (a) and inserting the 
following new subsections: 
‘‘(a) ELIGIBILITY
AND SPECIAL PAY AMOUNT.—
Under regulations prescribed by the Secretary of Defense, 
a member of a uniformed service may be paid special pay 
at the rate of $150 for any month in which—
‘‘(1) the member was entitled to basic pay or 
compensation under section 204 or 206 of this title; 
and 
‘‘(2) the member—
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‘‘(A) was subject to hostile fire or explo-
sion of hostile mines; 
‘‘(B) was on duty in an area in which the 
member was in imminent danger of being ex-
posed to hostile fire or explosion of hostile 
mines and in which, during the period the mem-
ber was on duty in the area, other members of 
the uniformed services were subject to hostile 
fire or explosion of hostile mines; 
‘‘(C) was killed, injured, or wounded by 
hostile fire, explosion of a hostile mine, or any 
other hostile action; or 
‘‘(D) was on duty in a foreign area in 
which the member was subject to the threat of 
physical harm or imminent danger on the basis 
of civil insurrection, civil war, terrorism, or 
wartime conditions. 
‘‘(b) CONTINUATION DURING HOSPITALIZATION.—A 
member covered by subsection (a)(2)(C) who is hospital-
ized for the treatment of the injury or wound may be paid 
special pay under this section for not more than three ad-
ditional months during which the member is so hospital-
ized.’’. 
(b) CLERICAL AMENDMENTS.—Such section is fur-
ther amended—
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(1) in subsection (c), as redesignated by sub-
section (a)(1), by inserting ‘‘LIMITATIONS AND AD-
MINISTRATION.—’’ before ‘‘(1)’’; and 
(2) in subsection (d), as redesignated by sub-
section (a)(1), by inserting ‘‘DETERMINATIONS OF 
FACT.—’’ before ‘‘Any’’.
SEC. 617. EXPANSION OF OVERSEAS TOUR EXTENSION IN-
CENTIVE PROGRAM TO OFFICERS. 
(a) SPECIAL PAY OR BONUS FOR EXTENDING OVER-
SEAS TOUR OF DUTY.—(1) Subsections (a) and (b) of sec-
tion 314 of title 37, United States Code, are amended by 
striking ‘‘an enlisted member’’ and inserting ‘‘a member’’. 
(2)(A) The heading of such section is amended to 
read as follows: 
‘‘§ 314. Special pay or bonus: qualified members ex-
tending duty at designated locations 
overseas’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 5 of such title is 
amended to read as follows:
‘‘314. Special pay or bonus: qualified members extending duty at designated lo-
cations overseas.’’.
(b) REST AND RECUPERATIVE ABSENCE IN LIEU OF 
PAY OR BONUS.—(1) Subsection (a) of section 705 of title 
10, United States Code, is amended by striking ‘‘an en-
listed member’’ and inserting ‘‘a member’’.
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(2) The heading of such section, and the item relating 
to such section in the table of sections at the beginning 
of chapter 40 of such title, are each amended by striking 
the sixth word.
SEC. 618. ELIGIBILITY OF APPOINTED WARRANT OFFICERS 
FOR ACCESSION BONUS FOR NEW OFFICERS 
IN CRITICAL SKILLS. 
Section 324 of title 37, United States Code, is 
amended in subsections (a) and (f)(1) by inserting ‘‘or an 
appointment’’ after ‘‘commission’’.
SEC. 619. INCENTIVE PAY FOR DUTY ON GROUND IN ANT-
ARCTICA OR ON ARCTIC ICEPACK. 
(a) IN GENERAL.—(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 301e 
the following new section:
‘‘§ 301f. Incentive pay: duty on ground in Antarctica 
or on Arctic icepack 
‘‘(a) AVAILABILITY OF INCENTIVE PAY.—A member 
of the uniformed services who performs duty at a location 
described in subsection (b) is entitled to special pay under 
this section at a rate of $5 for each day of that duty. 
‘‘(b) COVERED LOCATIONS.—Subsection (a) applies 
with respect to duty performed on the ground in Antarc-
tica or on the Arctic icepack.’’.
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(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 301e the following new item:
‘‘301f. Incentive pay: duty on ground in Antarctica or on Arctic icepack.’’.
(b) EFFECTIVE DATE.—Section 301f of title 37, 
United States Code, as added by subsection (a), shall take 
effect on October 1, 2003.
SEC. 620. SPECIAL PAY FOR SERVICE AS MEMBER OF WEAP-
ONS OF MASS DESTRUCTION CIVIL SUPPORT 
TEAM. 
(a) IN GENERAL.—(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 305a 
the following new section:
‘‘§ 305b. Special pay: service as member of Weapons 
of Mass Destruction Civil Support Team 
‘‘(a) AVAILABILITY OF SPECIAL PAY.—The Secretary 
of a military department may pay special pay under this 
section to a member of the armed forces under the juris-
diction of that Secretary who is entitled to basic pay under 
section 204 and is assigned by orders to duty as a member 
of a Weapons of Mass Destruction Civil Support Team. 
‘‘(b) MONTHLY RATE.—Special pay payable under 
subsection (a) shall be paid at a rate equal to $150 a 
month. 
‘‘(c) ELIGIBILITY OF RESERVE COMPONENT MEM-
BERS WHEN PERFORMING INACTIVE DUTY TRAINING.—
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Under regulations prescribed by the Secretary concerned 
and to the extent provided for in appropriation Acts, when 
a member of a reserve component of the armed forces who 
is entitled to compensation under section 206 of this title 
performs duty under orders as a member of a Weapons 
of Mass Destruction Civil Support Team, the member may 
be paid an increase in compensation equal to 1⁄30 of the 
monthly special pay specified in subsection (b) for each 
day on which the member performs such duty. 
‘‘(d) DEFINITION.—In this section, the term ‘Weap-
ons of Mass Destruction Civil Support Team’ means a 
team of members of the reserve components of the armed 
forces that is established under section 12310(c) of title 
10 in support of emergency preparedness programs to pre-
pare for or to respond to any emergency involving the use 
of a weapon of mass destruction.’’.
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 305a the following new item:
‘‘305b. Special pay: service as member of Weapons of Mass Destruction Civil 
Support Team.’’.
(b) EFFECTIVE DATE.—Section 305b of title 37, 
United States Code, as added by subsection (a), shall take 
effect on October 1, 2003.
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SEC. 621. INCENTIVE BONUS FOR AGREEMENT TO SERVE IN 
CRITICALLY 
SHORT 
MILITARY 
OCCUPA-
TIONAL SPECIALTY. 
(a) IN GENERAL.—Chapter 5 of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 326. Incentive bonus: lateral conversion bonus for 
service in critically short military occu-
pational speciality 
‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Sec-
retary concerned may pay a bonus under this section to 
a member of the armed forces who executes a written 
agreement to convert to, and serve for a period of not less 
than two years in, a critically short military occupational 
specialty. 
‘‘(b) ELIGIBLE MEMBERS.—A bonus may only be 
paid under this section only to a member who—
‘‘(1) is entitled to basic pay; and 
‘‘(2) is serving in pay grade E–6 (with less than 
10 years of service computed under section 205 of 
this title) or pay grade E–5 or below (regardless of 
years of service) at the time the agreement under 
subsection (a) is executed. 
‘‘(c) AMOUNT
AND PAYMENT
OF BONUS.—(1) A 
bonus under this section may not exceed $4,000.
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‘‘(2) A bonus payable under this section shall be dis-
bursed in one lump sum payment when the member’s con-
version to the critically short military occupational spe-
cialty is approved by the personnel chief of the member’s 
armed force. 
‘‘(d) RELATIONSHIP TO OTHER PAY AND ALLOW-
ANCES.—A bonus paid to a member under this section is 
in addition to any other pay and allowances to which the 
member is entitled. 
‘‘(e) REPAYMENT OF BONUS.—(1) A member who re-
ceives a bonus under this section and who, voluntarily or 
because of misconduct, fails to serve in the critically short 
military occupational specialty for the period specified in 
the agreement shall refund to the United States an 
amount that bears the same ratio to the bonus amount 
paid to the member as the unserved part of such period 
bears to the total period agreed to be served. 
‘‘(2) An obligation to reimburse the United States 
imposed under paragraph (1) is, for all purposes, a debt 
owed to the United States. 
‘‘(3) A discharge in bankruptcy under title 11 that 
is entered less than five years after the termination of the 
agreement for which a bonus was paid under this section 
shall not discharge the person signing such agreement 
from the debt arising under paragraph (1).
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‘‘(4) Under regulations prescribed pursuant to sub-
section (f), the Secretary concerned may waive, in whole 
in part, a refund required under paragraph (1) if the Sec-
retary determines that recovery would be against equity 
and good conscience or would be contrary to the best inter-
ests of the United States. 
‘‘(f) REGULATIONS.—The Secretaries concerned shall 
prescribe regulations to carry out this section. Regulations 
prescribed by the Secretary of a military department shall 
be subject to the approval of the Secretary of Defense. 
‘‘(g) DEFINITION.—In this section, the term ‘criti-
cally short military occupational specialty’ means a mili-
tary occupational specialty, military rating, or other mili-
tary speciality designated by the Secretary concerned as 
undermanned for purposes of this section. 
‘‘(h) TERMINATION OF AUTHORITY.—No agreement 
under this section may be entered into after December 31, 
2004.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘326. Incentive bonus: lateral conversion bonus for service in critically short 
military occupational speciality.’’.
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SEC. 622. INCREASE IN RATE FOR IMMINENT DANGER PAY 
AND FAMILY SEPARATION ALLOWANCE RE-
LATED TO SERVICE IN OPERATION IRAQI 
FREEDOM OR OPERATION ENDURING FREE-
DOM. 
(a) SPECIAL PAYMENT RATES.—Effective October 1, 
2003, in the case of a member of the uniformed services 
who serves, for any period of time during a month, in a 
combat zone designated for Operation Iraqi Freedom or 
Operation Enduring Freedom, the monthly rate for immi-
nent danger pay under section 310 of title 37, United 
States Code, shall be deemed to be $225 and the monthly 
rate for the family separation allowance under section 427 
of such title shall be deemed to be $250. 
(b) DURATION.—The special rates for imminent dan-
ger pay and the family separation allowance in effect 
under subsection (a) for an operation referred to in such 
subsection expire on the date the President terminates the 
operation. 
SEC. 623. AVAILABILITY OF HOSTILE FIRE AND IMMINENT 
DANGER PAY FOR RESERVE COMPONENT 
MEMBERS SERVING IN RESPONSE TO CER-
TAIN DOMESTIC TERRORIST ATTACKS. 
(a) AVAILABILITY
OF SPECIAL PAY.—Subsection 
(a)(2) of section 310 of title 37, United States Code, as 
amended by section 616 of this Act, is amended—
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(1) by striking ‘‘or’’ at the end of subparagraph 
(C); 
(2) by redesignating subparagraph (D) as sub-
paragraph (E); and 
(3) by inserting after subparagraph (C) the fol-
lowing new subparagraph (D): 
‘‘(D) was on duty as a first responder, or as a 
member assigned to accompany or protect first re-
sponders, to a terrorist attack on the United States 
regarding which there is an immediate threat of 
physical harm or imminent danger as a result of di-
rect or residual effects of the attack or potential sec-
ondary attacks; or’’. 
(b) FIRST RESPONDER DEFINED.—Such section is 
further amended by adding at the end the following new 
subsection: 
‘‘(e) FIRST RESPONDER DEFINED.—In this section, 
the term ‘first responder’ means a member of the uni-
formed services who, as part of the member’s assigned du-
ties, is expected to arrive at the site of a terrorist attack 
within 12 hours after the attack.’’.
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Subtitle C—Travel and 
Transportation Allowances
SEC. 631. SHIPMENT OF PRIVATELY OWNED MOTOR VEHI-
CLE WITHIN CONTINENTAL UNITED STATES. 
(a) AUTHORITY TO PROCURE CONTRACT FOR TRANS-
PORTATION OF MOTOR VEHICLE.—Section 2634 of title 
10, United States Code, is amended—
(1) by redesignating subsection (h) as sub-
section (i); and 
(2) by inserting after subsection (g) the fol-
lowing new subsection (h): 
‘‘(h) In the case of a change of permanent station 
described in subparagraph (A) or (B) of subsection (i)(1), 
the Secretary concerned may authorize the member to ar-
range for the shipment of the motor vehicle in lieu of 
transportation at the expense of the United States under 
this section. The Secretary concerned may pay the mem-
ber a monetary allowance in lieu of transportation, as es-
tablished under section 404(d)(1) of title 37, and the 
member shall be responsible for any transportation costs 
in excess of such allowance.’’. 
(b) ALLOWANCE
FOR
SELF-PROCUREMENT
OF 
TRANSPORTATION
OF
MOTOR
VEHICLE.—Section 
406(b)(1)(B) of title 37, United States Code, is amended 
by adding at the end the following new sentence: ‘‘In the
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case of the transportation of a motor vehicle arranged by 
the member under section 2634(h) of title 10, the Sec-
retary concerned may pay the member, upon proof of ship-
ment, a monetary allowance in lieu of transportation, as 
established under section 404(d)(1) of this title.’’.
SEC. 632. PAYMENT OR REIMBURSEMENT OF STUDENT 
BAGGAGE STORAGE COSTS FOR DEPENDENT 
CHILDREN OF MEMBERS STATIONED OVER-
SEAS. 
Section 430(b)(2) of title 37, United States Code, is 
amended in the first sentence by inserting before the pe-
riod at the end the following: ‘‘or during a different period 
in the same fiscal year selected by the member’’.
SEC. 633. REIMBURSEMENT FOR LODGING EXPENSES OF 
CERTAIN RESERVE COMPONENT AND RE-
TIRED 
MEMBERS 
DURING 
AUTHORIZED 
LEAVE FROM TEMPORARY DUTY LOCATION. 
(a) REIMBURSEMENT AUTHORIZED.—The Secretary 
concerned (as defined in section 101 of title 37, United 
States Code) may reimburse a member of the Armed 
Forces described in subsection (b) for lodging expenses in-
curred by the member at the member’s duty location while 
the member is in an authorized leave status. 
(b) COVERED MEMBERS.—Subsection (a) applies 
with respect to a member of a reserve component who is
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called or ordered to active duty for a period of more than 
30 days, or a retired member who is ordered to active duty 
under section 688(a) of title 10, United States Code, if 
the member—
(1) immediately before taking authorized leave 
was performing duty at a location away from the 
member’s home; 
(2) was receiving a per diem allowance under 
section 404(a)(4) of title 37, United States Code, to 
cover lodging and subsistence expenses incurred at 
the duty location because quarters of the United 
States were not available for assignment to the 
member at that location; and 
(3) immediately after completing the authorized 
leave, returned to the duty location. 
(c) AMOUNT OF REIMBURSEMENT.—The amount of 
the reimbursement provided to a member under subsection 
(a) may not exceed the lesser of—
(1) the actual daily cost of lodging incurred by 
the member at the duty location while the member 
was in an authorized leave status; and 
(2) the lodging portion of the applicable daily 
per diem rate for that duty location. 
(d) RETROACTIVE APPLICATION.—This section ap-
plies with respect to members of the reserve components
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described in subsection (b) who, since September 11, 
2001, were or are called or ordered to active duty for a 
period of more than 30 days and retired members de-
scribed in such subsection who, since that date, were or 
are ordered to active duty under section 688(a) of title 
10, United States Code. 
Subtitle D—Retired Pay and 
Survivors Benefits
SEC. 641. FUNDING FOR SPECIAL COMPENSATION AU-
THORITIES FOR DEPARTMENT OF DEFENSE 
RETIREES. 
(a) SOURCE OF PAYMENTS.—
(1) Section 1413(g) of title 10, United States 
Code, is amended—
(A) by inserting before ‘‘Payments under’’ 
the following new sentence: ‘‘Payments under 
this section for a member of the Army, Navy, 
Air Force, or Marine Corps shall be paid from 
the Department of Defense Military Retirement 
Fund.’’; and 
(B) by inserting ‘‘for any other member’’ 
before ‘‘for any fiscal year’’. 
(2) Section 1413a(h) of such title is amended—
(A) by inserting before ‘‘Payments under’’ 
the following new sentence: ‘‘Payments under
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this section for a member of the Army, Navy, 
Air Force, or Marine Corps shall be paid from 
the Department of Defense Military Retirement 
Fund.’’; and 
(B) by inserting ‘‘for any other member’’ 
before ‘‘for any fiscal year’’. 
(b) PAYMENT OF INCREASED RETIREMENT TRUST 
FUND COSTS DUE TO CONCURRENT RECEIPT OR EN-
HANCED
SPECIAL
DISABILITY
COMPENSATION
PAY-
MENTS.—
(1) Section 1463(a)(1) of this title is amended 
by inserting before the semicolon the following: ‘‘and 
payments under section 1413, 1413a, or 1414 of 
this title paid to such members’’. 
(2) Section 1465(b) of such title is amended by 
adding at the end the following new paragraph: 
‘‘(3) At the same time that the Secretary of Defense 
makes the determination required by paragraph (1) for 
any fiscal year, the Secretary shall determine the amount 
of the Treasury contribution to be made to the Fund for 
the next fiscal year under section 1466(b)(2)(D) of this 
title. That amount shall be determined in the same man-
ner as the determination under paragraph (1) of the total 
amount of Department of Defense contributions to be 
made to the Fund during that fiscal year under section
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1466(a) of this title, except that for purposes of this para-
graph the Secretary, in making the calculations required 
by subparagraphs (A) and (B) of that paragraph, shall 
use the single level percentages determined under sub-
section (c)(4), rather than those determined under sub-
section (c)(1).’’. 
(3) Section 1465(c) of such title is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting be-
fore the semicolon at the end the following: ‘‘, 
to be determined without regard to section 
1413, 1413a, or 1414 of this title’’; 
(ii) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘, to 
be determined without regard to section 1413, 
1413a, or 1414 of this title’’; and 
(iii) in the sentence following subparagraph 
(B), by striking ‘‘subsection (b)’’ and inserting 
‘‘subsection (b)(1)’’; 
(B) by redesignating paragraph (4) as para-
graph (5); and 
(C) by inserting after paragraph (3) the fol-
lowing new paragraph (4):
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‘‘(4) Whenever the Secretary carries out an actuarial 
valuation under paragraph (1), the Secretary shall include 
as part of such valuation the following: 
‘‘(A) A determination of a single level percent-
age determined in the same manner as applies under 
subparagraph (A) of paragraph (1), but based only 
upon the provisions of section 1413, 1413a, or 1414 
of this title (whichever is in effect). 
‘‘(B) A determination of a single level percent-
age determined in the same manner as applies under 
subparagraph (B) of paragraph (1), but based only 
upon the provisions of section 1413, 1413a, or 1414 
of this title (whichever is in effect). 
Such single level percentages shall be used for the pur-
poses of subsection (b)(3).’’. 
(4) Section 1466(b) of such title is amended—
(A) in paragraph (1), by striking ‘‘sections 
1465(a) and 1465(c)’’ and inserting ‘‘sections 
1465(a), 1465(b)(3), 1465(c)(2), and 1465(c)(3)’’; 
and 
(B) by adding at the end of paragraph (2) the 
following new subparagraph: 
‘‘(D) The amount for that year determined by 
the Secretary of Defense under section 1465(b)(3) 
of this title for the cost to the Fund arising from in-
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creased amounts payable from the Fund by reason 
of section 1413, 1413a, or 1414 of this title.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2003. 
Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits
SEC. 651. EXPANDED COMMISSARY ACCESS FOR SELECTED 
RESERVE 
MEMBERS, 
RESERVE 
RETIREES 
UNDER AGE 60, AND THEIR DEPENDENTS. 
(a) ACCESS TO MILITARY COMMISSARIES.—Section 
1065 of title 10, United States Code, is amended—
(1) in subsections (a), (b), and (c), by inserting 
‘‘commissary stores and’’ after ‘‘use’’ each place it 
appears; and 
(2) in subsection (d)—
(A) by inserting ‘‘commissary stores and’’ 
after ‘‘use’’ the first and third places it ap-
pears; and 
(B) by inserting ‘‘stores and’’ after ‘‘use’’ 
the second and fourth places it appears. 
(b) CONFORMING AMENDMENTS; TRANSFER OF SEC-
TION.—Chapter 54 of such title is amended—
(1) by striking sections 1063 and 1064;
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(2) in section 1063a(c)(2), by striking ‘‘section 
1065(e)’’ and inserting ‘‘section 1063(e)’’; 
(3) by redesignating section 1063a, as amended 
by paragraph (2), as section 1064; 
(4) by transferring section 1065, as amended 
by subsection (a), so as to appear after section 
1062; and 
(5) by striking the heading of such section, as 
amended by subsection (a) and transferred by para-
graph (4), and inserting the following new heading: 
‘‘§ 1063. Use of commissary stores and MWR retail fa-
cilities: members of reserve components 
and reserve retirees under age 60’’. 
(c) CLERICAL AMENDMENTS.—The table of sections 
at the beginning of such chapter is amended by striking 
the items relating to sections 1063, 1063a, 1064, and 
1065 and inserting the following new items:
‘‘1063. Use of commissary stores and MWR retail facilities: members of reserve 
components and reserve retirees under age 60. 
‘‘1064. Use of commissary stores and MWR retail facilities: members of Na-
tional Guard serving in federally declared disaster or national 
emergency.’’.
SEC. 652. DEFENSE COMMISSARY SYSTEM AND EXCHANGE 
STORES SYSTEM. 
(a) EXISTENCE OF SYSTEMS.—Chapter 147 of title 
10, United States Code, is amended by inserting before 
section 2482 the following new section:
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‘‘§ 2481. Existence of defense commissary system and 
exchange stores system 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
operate a defense commissary system and an exchange 
stores system in the manner provided by this chapter and 
other provisions of law. 
‘‘(b) SEPARATE SYSTEMS.—Except as authorized by 
section 2490a of this title, the defense commissary system 
and the exchange stores system shall be operated as sepa-
rate systems of the Department of Defense.’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
before the item relating to section 2482 the following new 
item:
‘‘2481. Existence of defense commissary system and exchange stores system.’’.
SEC. 653. LIMITATIONS ON PRIVATE OPERATION OF DE-
FENSE COMMISSARY STORE FUNCTIONS. 
Section 2482(a) of title 10, United States Code, is 
amended—
(1) by striking the first and second sentences 
and inserting the following: ‘‘(1) Under such regula-
tions as the Secretary of Defense may approve, pri-
vate persons may operate selected commissary store 
functions, except that such functions may not in-
clude functions relating to the procurement of prod-
ucts to be sold in a commissary store or functions
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relating to the overall management of a commissary 
system or the management of a commissary store.’’; 
and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Any change to private operation of a commissary 
store function shall not take effect until the Secretary of 
Defense submits written notice of the proposed change to 
Congress and a period of 90 days of continuous session 
of Congress expires following the date on which notice was 
received, determined as provided in section 2486(d)(2) of 
this title.’’.
SEC. 654. USE OF APPROPRIATED FUNDS TO OPERATE DE-
FENSE COMMISSARY SYSTEM. 
(a) REQUIREMENT THAT COMMISSARY OPERATING 
EXPENSES BE PAID FROM APPROPRIATED FUNDS.—Sec-
tion 2484 of title 10, United States Code, is amended—
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’; and 
(2) in subsection (b), by striking ‘‘may’’ in the 
first sentence and inserting ‘‘shall’’. 
(b) SUPPLEMENTAL FUNDS FOR COMMISSARY OPER-
ATIONS.—Such section is further amended by adding at 
the end the following new subsection:
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‘‘(c) SUPPLEMENTAL FUNDS FOR COMMISSARY OP-
ERATIONS.—Amounts appropriated to cover the expenses 
of operating the Defense Commissary Agency and the de-
fense commissary system may be supplemented with addi-
tional funds from manufacturers’ coupon redemption fees, 
handling fees for tobacco products, and other amounts re-
ceived as reimbursement for other support activities pro-
vided by commissary activities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2003.
SEC. 655. RECOVERY OF NONAPPROPRIATED FUND IN-
STRUMENTALITY AND COMMISSARY STORE 
INVESTMENTS IN REAL PROPERTY AT MILI-
TARY 
INSTALLATIONS 
CLOSED 
OR 
RE-
ALIGNED. 
(a) 1988 LAW.—Section 204(b)(7)(C)(i) of the De-
fense Authorization Amendments and Base Closure and 
Realignment Act (Public Law 100–526; 10 U.S.C. 2687 
note) is amended in the second sentence by striking ‘‘The 
Secretary may use amounts in the account (in such an 
aggregate amount as is provided in advance in appropria-
tion Acts)’’ and inserting ‘‘Amounts in the account shall 
be available to the Secretary, without appropriation and 
until expended,’’.
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(b) 1990 LAW.—Section 2906(d)(3) of the Defense 
Base Closure and Realignment Act of 1990 (part A of title 
XXIX of Public Law 101–510; 10 U.S.C. 2687 note) is 
amended by striking ‘‘The Secretary may use amounts in 
the account (in such an aggregate amount as is provided 
in advance in appropriation Acts)’’ and inserting 
‘‘Amounts in the account shall be available to the Sec-
retary, without appropriation and until expended,’’.
SEC. 656. COMMISSARY SHELF-STOCKING PILOT PROGRAM. 
(a) PILOT PROGRAM AUTHORITY.—Subject to sub-
section (c), the Secretary of Defense may conduct a pilot 
program under which the stocking of shelves at three de-
fense commissary stores operated by the Defense Com-
missary Agency shall be the sole responsibility of Federal 
employees of the Agency or employees contracted by the 
agency. 
(b) IMPLEMENTATION PLAN.—(1) The Secretary of 
Defense shall submit to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of 
the House of Representatives a plan for the conduct of 
the pilot program. The plan shall be submitted not later 
than six months after the date of the enactment of this 
Act. 
(2) The plan shall include the following:
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(A) The financial structure of the pilot program 
and expected costs. 
(B) The Secretary’s request to the Office of 
Personnel Management to conduct the pilot program 
as a Federal civilian personnel demonstration project 
under chapter 47 of title 5, United States Code, or 
a plan to provide otherwise a sufficiently flexible 
Federal civilian workforce for the pilot program 
through another authority. 
(C) Specification of the three sites for the con-
duct of the pilot program and the criteria used to se-
lect those sites. 
(D) Proposed duration of the pilot program and 
the expected timing for providing to Congress the re-
sults of the pilot program and recommendations of 
the Secretary. 
(E) Other observations and recommendations of 
the Secretary. 
(c) IMPLEMENTATION.—The Secretary of Defense 
may not begin to conduct the pilot program until a period 
of 30 days has elapsed after the date of the submission 
of the plan for the pilot program under subsection (b).
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Subtitle F—Other Matters
SEC. 661. REPEAL OF CONGRESSIONAL NOTIFICATION RE-
QUIREMENT FOR DESIGNATION OF CRITICAL 
MILITARY SKILLS FOR RETENTION BONUS. 
Section 323(b) of title 37, United States Code, is 
amended—
(1) by striking ‘‘(1)’’; and 
(2) by striking paragraph (2).
TITLE VII—HEALTH CARE 
PROVISIONS
SEC. 701. REVISION OF DEPARTMENT OF DEFENSE MEDI-
CARE-ELIGIBLE 
RETIREE 
HEALTH 
CARE 
FUND TO PERMIT MORE ACCURATE ACTU-
ARIAL VALUATIONS. 
Section 1115(c) of title 10, United States Code, is 
amended by adding at the end of paragraph (1) the fol-
lowing: ‘‘In determining single level dollar amounts under 
subparagraphs (A) and (B) of this paragraph, the Sec-
retary of Defense may determine a separate single level 
dollar amount under either or both subparagraphs for any 
participating uniformed service, if, in the judgment of the 
Secretary, such a determination would produce a more ac-
curate and appropriate actuarial valuation for that uni-
formed service.’’.
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SEC. 702. TRANSFER OF CERTAIN MEMBERS FROM PHAR-
MACY AND THERAPEUTICS COMMITTEE TO 
UNIFORM FORMULARY BENEFICIARY ADVI-
SORY PANEL UNDER THE PHARMACY BENE-
FITS PROGRAM. 
Section 1074g of title 10, United States Code, is 
amended—
(1) in subsection (b)(1) in the second sentence, 
by striking ‘‘facilities,’’ and all that follows through 
the end of the sentence and inserting ‘‘facilities and 
representatives of providers in facilities of the uni-
formed services.’’; and 
(2) in subsection (c)(2)—
(A) by striking ‘‘represent nongovern-
mental’’ and inserting the following: ‘‘rep-
resent—
‘‘(A) nongovernmental’’; 
(B) by striking the period at the end and 
inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(B) contractors responsible for the TRICARE 
retail pharmacy program; 
‘‘(C) contractors responsible for the national 
mail-order pharmacy program; and 
‘‘(D) TRICARE network providers.’’.
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SEC. 703. PERMANENT EXTENSION OF AUTHORITY TO 
ENTER 
INTO 
PERSONAL 
SERVICES 
CON-
TRACTS FOR THE PERFORMANCE OF HEALTH 
CARE 
RESPONSIBILITIES 
AT 
LOCATIONS 
OTHER THAN MILITARY MEDICAL TREAT-
MENT FACILITIES. 
Section 1091(a)(2) of title 10, United States Code, 
is amended by striking ‘‘The Secretary may not enter into 
a contract under this paragraph after December 31, 
2003.’’.
SEC. 704. PLAN FOR PROVIDING HEALTH COVERAGE IN-
FORMATION TO MEMBERS, FORMER MEM-
BERS, AND DEPENDENTS ELIGIBLE FOR CER-
TAIN HEALTH BENEFITS. 
(a) HEALTH INFORMATION PLAN REQUIRED.—The 
Secretary of Defense shall develop a plan to—
(1) ensure that each household that includes 
one or more eligible persons is provided information 
concerning—
(A) the extent of health coverage provided 
by sections 1079 or 1086 of title 10, United 
States Code, for each such person; 
(B) the costs, including the limits on such 
costs, that each such person is required to pay 
for such health coverage;
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(C) sources of information for locating 
TRICARE-authorized providers in the house-
hold’s locality; and 
(D) methods to obtain assistance in resolv-
ing difficulties encountered with billing, pay-
ments, eligibility, locating TRICARE-authorized 
providers, collection actions, and such other 
issues as the Secretary considers appropriate; 
(2) provide mechanisms to ensure that each eli-
gible person has access to information identifying 
TRICARE-authorized providers in the person’s lo-
cality who have agreed to accept new patients under 
section 1079 or 1086 of title 10, United States 
Code, and to ensure that such information is peri-
odically updated; 
(3) provide mechanisms to ensure that each eli-
gible person who requests assistance in locating a 
TRICARE-authorized provider is provided such as-
sistance; 
(4) provide information and recruitment mate-
rials and programs aimed at attracting participation 
of health care providers as necessary to meet health 
care access requirements for all eligible persons; and 
(5) provide mechanisms to allow for the peri-
odic identification by the Department of Defense of
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the number and locality of eligible persons who may 
intend to rely on TRICARE-authorized providers for 
health care services. 
(b) IMPLEMENTATION OF PLAN.—The Secretary of 
Defense shall implement the plan required by subsection 
(a) with respect to any contract entered into by the De-
partment of Defense after May 31, 2003, for managed 
health care. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘eligible person’’ means a person 
eligible for health benefits under section 1079 or 
1086 of title 10, United States Code. 
(2) The term ‘‘TRICARE-authorized provider’’ 
means a facility, doctor, or other provider of health 
care services—
(A) 
that 
meets 
the 
licensing 
and 
credentialing certification requirements in the 
State where the services are rendered; 
(B) that meets requirements under regula-
tions relating to TRICARE for the type of 
health care services rendered; and 
(C) that has accepted reimbursement by 
the Secretary of Defense as payment for serv-
ices rendered during the 12-month period pre-
ceding the date of the most recently updated
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provider information provided to households 
under the plan required by subsection (a).
(d) SUBMISSION OF PLAN.—Not later than March 
31, 2004, the Secretary shall submit to the Committees 
on Armed Services of the Senate and House of Represent-
atives the plan required by subsection (a), together with 
a schedule for implementation of the plan.
SEC. 705. WORKING GROUP ON MILITARY HEALTH CARE 
FOR PERSONS RELIANT ON HEALTH CARE 
FACILITIES AT MILITARY INSTALLATIONS TO 
BE CLOSED OR REALIGNED. 
Section 722 of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 
1073 note) is amended by striking subsections (a), (b), 
(c), and (d) and inserting the following new subsections: 
‘‘(a) ESTABLISHMENT.—Not later than December 
31, 2003, the Secretary of Defense shall establish a work-
ing group on the provision of military health care to per-
sons who rely for health care on health care facilities lo-
cated at military installations—
‘‘(1) inside the United States that are selected 
for closure or realignment in the 2005 round of re-
alignments and closures authorized by sections 
2912, 2913, and 2914 of the Defense Base Closure 
and Realignment Act of 1990 (part A of title XXIX
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of Public Law 101–510; 10 U.S.C. 2687 note), as 
added by title XXX of the National Defense Author-
ization Act for Fiscal Year 2002 (Public Law 107–
107; 155 Stat. 1342); or 
‘‘(2) outside the United States that are selected 
for closure or realignment as a result of force pos-
ture changes. 
‘‘(b) MEMBERSHIP.—The members of the working 
group shall include, at a minimum, the following: 
‘‘(1) The Assistant Secretary of Defense of 
Health Affairs, or the designee of the Assistant Sec-
retary. 
‘‘(2) The Surgeon General of the Army, or the 
designee of that Surgeon General. 
‘‘(3) The Surgeon General of the Navy, or the 
designee of that Surgeon General. 
‘‘(4) The Surgeon General of the Air Force, or 
the designee of that Surgeon General. 
‘‘(5) At least one independent member from 
each TRICARE region, but not to exceed a total of 
12 members appointed under this paragraph, whose 
experience in matters within the responsibility of the 
working group qualify that person to represent per-
sons authorized health care under chapter 55 of title 
10, United States Code.
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‘‘(c) DUTIES.—(1) In developing the selection criteria 
and recommendations for the 2005 round of realignments 
and closures required by sections 2913 and 2914 of the 
Defense Base Closure and Realignment Act of 1990, the 
Secretary of Defense shall consult with the working group. 
‘‘(2) The working group shall be available to provide 
assistance to the Defense Base Closure and Realignment 
Commission. 
‘‘(3) In the case of each military installation referred 
to in paragraph (1) or (2) of subsection (a) whose closure 
or realignment will affect the accessibility to health care 
services for persons entitled to such services under chapter 
55 of title 10, United States Code, the working group shall 
provide to the Secretary of Defense a plan for the provi-
sion of the health care services to such persons. 
‘‘(d) SPECIAL CONSIDERATIONS.—In carrying out its 
duties under subsection (c), the working group—
‘‘(1) shall conduct meetings with persons enti-
tled to health care services under chapter 55 of title 
10, United States Code, or representatives of such 
persons; 
‘‘(2) may use reliable sampling techniques; 
‘‘(3) may visit the areas where closures or re-
alignments of military installations will adversely af-
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fect the accessibility of health care for such persons 
and may conduct public meetings; and 
‘‘(4) shall ensure that members of the uni-
formed services on active duty, members and former 
members of the uniformed services entitled to retired 
or retainer pay, and dependents and survivors of 
such members and retired personnel are afforded the 
opportunity to express their views.’’.
SEC. 706. ACCELERATION OF IMPLEMENTATION OF CHIRO-
PRACTIC HEALTH CARE FOR MEMBERS ON 
ACTIVE DUTY. 
The Secretary of Defense shall accelerate the imple-
mentation of the plan required by section 702 of the Floyd 
D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106–398) (relating to chiropractic 
health care services and benefits), with a goal of com-
pleting implementation of the plan by October 1, 2005.
SEC. 707. MEDICAL AND DENTAL SCREENING FOR MEM-
BERS OF SELECTED RESERVE UNITS ALERT-
ED FOR MOBILIZATION. 
Section 1074a of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(f)(1) The Department of Defense may provide med-
ical and dental screening and care to members of the Se-
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lected Reserve who are assigned to a unit that has been 
alerted that the unit will be mobilized for active duty in 
support of an operational mission or contingency oper-
ation, during a national emergency, or in a time of war. 
‘‘(2) The medical and dental screening and care that 
may be provided under this subsection is screening and 
care necessary to ensure that a member meets the medical 
and dental standards for required deployment. 
‘‘(3) The services provided under this subsection shall 
be provided to a member at no cost to the member and 
at any time after the unit to which the member is assigned 
is alerted or otherwise notified that the unit will be mobi-
lized.’’.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations
SEC. 801. EXTENSION OF AUTHORITY TO CARRY OUT CER-
TAIN PROTOTYPE PROJECTS. 
Section 845 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C.
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2371 note) is amended in subsection (g) by striking ‘‘Sep-
tember 30, 2004’’ and inserting ‘‘September 30, 2008’’.
SEC. 802. ELIMINATION OF CERTAIN SUBCONTRACT NOTI-
FICATION REQUIREMENTS. 
Subsection (e) of section 2306 of title 10, United 
States Code, is amended—
(1) by striking ‘‘(A)’’ and ‘‘(B)’’ and inserting 
‘‘(i)’’ and ‘‘(ii)’’, respectively; 
(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(3) by striking ‘‘Each’’ and inserting ‘‘(1) Ex-
cept as provided in paragraph (2), each’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) Paragraph (1) shall not apply to a prime con-
tract with a contractor that maintains a purchasing sys-
tem approved by the contracting officer for the contract.’’.
SEC. 803. ELIMINATION OF REQUIREMENT TO FURNISH 
WRITTEN ASSURANCES OF TECHNICAL DATA 
CONFORMITY. 
Section 2320(b) of title 10, United States Code, is 
amended—
(1) by striking paragraph (7); and 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (7) and (8), respectively.
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SEC. 804. LIMITATION PERIOD FOR TASK AND DELIVERY 
ORDER CONTRACTS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended—
(1) in section 2304a—
(A) in subsection (e)—
(i) by inserting ‘‘(1)’’ before ‘‘A task’’; 
and 
(ii) by adding at the end the following 
new paragraphs: 
‘‘(2) Unless use of procedures other than competitive 
procedures is authorized by an exception in subsection (c) 
of section 2304 of this title and approved in accordance 
with subsection (f) of such section, competitive procedures 
shall be used for making such a modification. 
‘‘(3) Notice regarding the modification shall be pro-
vided in accordance with section 18 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 416) and section 
8(e) of the Small Business Act (15 U.S.C. 637(e)).’’; and 
(B) by striking subsection (f) and inserting 
the following: 
‘‘(f) LIMITATION ON CONTRACT PERIOD.—The base 
period of a task order contract or delivery order contract 
entered into under this section may not exceed five years 
unless a longer period is specifically authorized in a law 
that is applicable to such contract. The contract may be
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extended for an additional 5 years (for a total contract 
period of not more than 10 years) through modifications, 
options, or otherwise.’’; and 
(2) in section 2304b—
(A) by striking subsection (a) and insert-
ing the following: 
‘‘(a) IN GENERAL.—A task order contract (as defined 
in section 2304d of this title) for procurement of advisory 
and assistance services shall be subject to the require-
ments of this section, sections 2304a and 2304c of this 
title, and other applicable provisions of law.’’; 
(B) by striking subsections (b), (f), and (g) 
and redesignating subsections (c), (d), (e), (h), 
and (i) as subsections (b) through (f); 
(C) by amending subsection (c) (as redes-
ignated by subparagraph (B)) to read as fol-
lows: 
‘‘(c) REQUIRED CONTENT OF CONTRACT.—A task 
order contract described in subsection (a) shall contain the 
same information that is required by section 2304a(b) to 
be included in the solicitation of offers for that contract.’’; 
and 
(D) in subsection (d) (as redesignated by 
subparagraph (B))—
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(i) in paragraph (1), by striking 
‘‘under this section’’ and inserting ‘‘de-
scribed in subsection (a)’’; and 
(ii) in paragraph (2), by striking 
‘‘under this section’’. 
(b) REPEALS.—(1) Subsection (g) of section 2306c 
of title 10, United States Code, is repealed. 
(2) Subsection (c) of section 811 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 
(Public Law 107–314; 116 Stat. 2608) is repealed.
SEC. 805. ADDITIONAL AUTHORITIES RELATING TO OB-
TAINING PERSONAL SERVICES. 
(a) IN GENERAL.—Section 129b of title 10, United 
States Code, is amended—
(1) in subsection (a)(1), by striking ‘‘in accord-
ance with section 3109 of title 5’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) ADDITIONAL AUTHORITY.—(1) In addition to 
the authority provided under subsection (a), the Secretary 
of Defense may enter into personal services contracts with 
individuals, regardless of their nationality, outside of the 
United States. 
‘‘(2) The contracting officer for a personal services 
contract shall be responsible for ensuring that a personal
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services contract is the appropriate vehicle for carrying out 
the purpose of the contract.’’. 
(b) INTELLIGENCE COMPONENTS.—(1) Subchapter I 
of chapter 21 of title 10, United States Code, is amended 
by adding at the end the following new section:
‘‘§ 426. Personal services contracts: authority and 
limitations 
‘‘(a) PERSONAL SERVICES.—(1) The Secretary of 
Defense may, notwithstanding section 3109 of title 5, 
enter into personal services contracts in the United States 
if the personal services directly support the mission of a 
defense intelligence component or counter-intelligence or-
ganization. 
‘‘(2) The contracting officer for a personal services 
contract shall be responsible for ensuring that a personal 
services contract is the appropriate vehicle for carrying out 
the purpose of the contract.
‘‘(b) DEFINITION.—In this section, the term ‘defense 
intelligence component’ means a component of the Depart-
ment of Defense that is an element of the intelligence com-
munity, as defined in section 3(4) of the National Security 
Act of 1947 (50 U.S.C. 401a(4)).’’.
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following 
new item:
‘‘426. Personal services contracts: authority and limitations.’’.
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(c) SPECIAL OPERATIONS COMMAND.—Section 167 
of title 10, United States Code, is amended by adding at 
the end the following new subsection: 
‘‘(l) PERSONAL SERVICES CONTRACTS.—(1) The 
Secretary of Defense may, notwithstanding section 3109 
of title 5, enter into personal services contracts in the 
United States if the personal services directly support the 
mission of the special operations command. 
‘‘(2) The contracting officer for a personal services 
contract shall be responsible for ensuring that a personal 
services contract is the appropriate vehicle for carrying out 
the purpose of the contract.’’.
SEC. 806. EVALUATION OF PROMPT PAYMENT PROVISIONS. 
(a) EVALUATION REQUIREMENT.—The Secretary of 
Defense shall evaluate provisions of law and regulation re-
lating to the prompt payment of amounts due contractors 
under contracts with the Department of Defense. 
(b) MATTERS COVERED.—In carrying out such eval-
uation, the Secretary shall focus in particular on the im-
plementation of prompt payment provisions with respect 
to small businesses, including—
(1) an analysis of compliance by the Depart-
ment of Defense with chapter 39 of title 31, United 
States Code, and regulations applicable to the De-
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partment of Defense under that chapter, with re-
spect to small business contractors; 
(2) a determination of the number of Depart-
ment of Defense contracts with small businesses 
that are not in compliance with prompt payment re-
quirements; and 
(3) a determination of the average length of 
time that elapses between performance of work by 
small business contractors under Department of De-
fense contracts and payment for such work.
Subtitle B—United States Defense 
Industrial Base Provisions
Part I—Critical Items Identification and Domestic 
Production Capabilities Improvement Program
SEC. 811. ASSESSMENT OF UNITED STATES DEFENSE IN-
DUSTRIAL BASE CAPABILITIES. 
(a) ASSESSMENT PROGRAM.—The Secretary of De-
fense, in coordination with the Secretary of each military 
department, shall establish a program to assess the capa-
bilities of the United States defense industrial base to 
produce military systems necessary to support national se-
curity requirements. 
(b) DESIGNEE.—The Secretary of each military de-
partment shall designate a position to be responsible for 
assisting in carrying out the program under subsection (a)
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with respect to the military department concerned. The 
person designated to serve in such position shall do the 
following: 
(1) Report to the Service Acquisition Executive 
of the military department concerned on defense in-
dustrial base matters affecting the acquisition and 
production of military systems. 
(2) Provide information to assist the Secretary 
of Defense in carrying out the Secretary’s duties as 
a member of the National Defense Technology and 
Industrial Base Council (as established under sec-
tion 2502 of title 10, United States Code). 
(3) Oversee the collection of data to assist the 
Secretary of Defense in carrying out subsection (c). 
(4) Oversee the process for identifying and de-
termining critical items to assist the Secretary of 
Defense in carrying out section 812. 
(c) COLLECTION OF DATA.—The Secretary of De-
fense shall collect data in support of the program. At a 
minimum, with respect to each procurement for a covered 
military system, the following information shall be col-
lected: 
(1) With respect to the contractor awarded the 
contract:
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(A) An identification of the critical item or 
items included in the covered military system 
and whether the item is of a domestic or for-
eign source. 
(B) Whether the contractor is a foreign 
contractor, and, if so—
(i) whether the contract was awarded 
on a sole source basis because of the un-
availability of responsible offerors with 
United States production capabilities; or 
(ii) whether the contract was awarded 
after receipt of offers from responsible 
offerors with United States production ca-
pabilities. 
(C) Whether the contractor is a United 
States contractor, and, if the contractor plans 
to perform work under the contract outside the 
United States, an identification of the locations 
where the work (including research, develop-
ment, and manufacturing) will be performed, an 
explanation of the business rationale for why 
the decision was made to transfer the work out-
side the United States, and a certification of 
the specific percentage of the total contract to 
be performed outside the United States.
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(2) With respect to the offerors submitting bids 
or proposals (other than the offeror awarded the 
contract): 
(A) An identification of the critical item or 
items included in the covered military system 
and whether the item is of a domestic or for-
eign source. 
(B) An identification of the domestic and 
foreign offerors and the locations where the 
work (including research, development, and 
manufacturing) was proposed to be performed 
under the contract. 
(C) A statement of whether there were no 
offerors or whether there was only one offeror. 
(d) CONFIDENTIALITY.—The Secretary of Defense 
shall make every effort to ensure that the information col-
lected under this section from private sector entities re-
mains confidential. 
(e) ASSESSMENT.—The Secretary of Defense shall 
prepare an assessment of the data compiled under this 
section during every two-year period and shall submit the 
results of the assessment to the Committees on Armed 
Services of the Senate and the House of Representatives, 
including the recommendations of the Secretary regarding 
how procurement from the United States defense indus-
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trial base can be maximized. The first such assessment 
shall cover the period of fiscal Year 2002 and fiscal Year 
2003 and shall be submitted to the Committees no later 
than November 1, 2004. 
SEC. 812. IDENTIFICATION OF CRITICAL ITEMS: MILITARY 
SYSTEM BREAKOUT LIST. 
(a) IDENTIFICATION PROCESS.—The Secretary of 
Defense shall establish a process to identify, with respect 
to each military system—
(1) the items and components within the mili-
tary system; 
(2) the items and components within the mili-
tary system that are essential, in accordance with 
subsection (c); and 
(3) the items and components within the mili-
tary system that are critical, in accordance with sub-
section (d). 
(b) MILITARY SYSTEM BREAKOUT LIST.—The Sec-
retary of Defense shall produce a list, to be known as the 
‘‘military system breakout list’’, consisting of the items 
and components identified under the process established 
under subsection (a). 
(c) ESSENTIAL ITEMS AND COMPONENTS.—For pur-
poses of determining whether an item or component is es-
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sential, the Secretary shall include only an item or compo-
nent that—
(1) is essential for the proper functioning and 
performance of the military system of which the 
item or component is a part; or 
(2) involves a critical technology (as defined in 
section 2500 of title 10, United States Code). 
(d) CRITICAL ITEMS OR COMPONENTS.—(1) For pur-
poses of determining whether an item or component is 
critical, the Secretary shall include only an item or compo-
nent that—
(A) is essential, as determined under subsection 
(c); and 
(B) with respect to which there is a high bar-
rier to entry for the production of the item or com-
ponent. 
(2) For purposes of paragraph (1)(B), a high barrier 
to entry for the production of an item or component means 
that—
(A) there would be a significant period of time 
required to reestablish United States production ca-
pabilities; and 
(B) the level of investment necessary to reestab-
lish United States production capabilities that are
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able to meet surge and sustained production rates 
for wartime requirements is significant. 
(e) REPORT.—Not later than November 1 of each 
year, beginning with November 1, 2004, the Secretary of 
Defense shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a re-
port on the implementation of this section. The report 
shall include the following: 
(1) A list of each military system covered by the 
process established under subsection (a). 
(2) A list of items and components determined 
to be essential. 
(3) A list of items and components determined 
to be critical. 
(4) A list of the items and components con-
tained in the lists provided under paragraphs (2) 
and (3) that are manufactured or produced outside 
the United States. 
SEC. 813. PROCUREMENT OF CERTAIN CRITICAL ITEMS 
FROM AMERICAN SOURCES. 
(a) REQUIREMENT FOR PROCUREMENT OF CERTAIN 
CRITICAL ITEMS PRODUCED IN UNITED STATES.—With 
respect to items that meet the criteria set forth in sub-
section (b), the Secretary of Defense may procure such
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items only if the items are entirely produced in the United 
States. 
(b) CRITERIA.—For purposes of subsection (a), an 
item meets the criteria of this subsection if—
(1) it is a critical item; and 
(2) there are limited sources of production ca-
pability of the item in the United States. 
(c) EXCEPTION.—Subsection (a) does not apply to a 
procurement of an item when the Secretary of Defense 
determines in writing that the Department of Defense’s 
need for the item is of such an unusual and compelling 
urgency that the United States would be seriously injured 
unless the Department is permitted to procure the item 
from sources outside the United States. 
(d) APPLICABILITY.—Subsection (a) shall apply to 
contracts for the procurement of covered military systems 
and subcontracts under such contracts. 
SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR 
CERTAIN CRITICAL ITEMS USING DEFENSE 
INDUSTRIAL BASE CAPABILITIES FUND. 
(a) ESTABLISHMENT
OF FUND.—There is estab-
lished in the Treasury of the United States a separate 
fund to be known as the Defense Industrial Base Capabili-
ties Fund (hereafter in this section referred to as the 
‘‘Fund’’).
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(b) MONEYS IN FUND.—There shall be credited to 
the Fund amounts appropriated to it. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Fund $100,000,000 
for fiscal year 2004. 
(d) USE OF FUND.—The Secretary of Defense is au-
thorized to use all amounts in the Fund, subject to appro-
priation, for the purposes of establishing capabilities with-
in the United States to produce critical items that meet 
any of the following criteria: 
(1) The item is available only from foreign con-
tractors. 
(2) The item is available only from a limited 
number of United States contractors. 
(e) LIMITATION ON USE OF FUND.—Before the obli-
gation of any amounts in the Fund, the Secretary of De-
fense shall submit to Congress a report describing the Sec-
retary’s plans for implementing the Fund established in 
subsection (a), including the priorities for the obligation 
of amounts in the Fund, the criteria for determining the 
recipients of such amounts, and the mechanisms through 
which such amounts may be provided to the recipients. 
(f) AVAILABILITY OF FUNDS.—Amounts in the Fund 
shall remain available until expended.
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(g) FUND MANAGER.—The Secretary of Defense 
shall designate a Fund manager. The duties of the Fund 
manager shall include—
(1) ensuring the visibility and accountability of 
transactions engaged in through the Fund; and 
(2) reporting to Congress each year regarding 
activities of the Fund during the previous fiscal 
year.
Part II—Requirements Relating to Specific Items
SEC. 821. DOMESTIC SOURCE LIMITATION AMENDMENTS. 
(a) ADDITIONAL ITEMS.—Section 2534(a) of title 10, 
United States Code, is amended by adding at the end of 
the following new paragraphs: 
‘‘(6) Fuzes used for ordnance. 
‘‘(7) Microwave power tubes or traveling wave 
tubes. 
‘‘(8) PAN carbon fiber. 
‘‘(9) Aircraft tires. 
‘‘(10) Ground vehicle tires. 
‘‘(11) Tank track assemblies. 
‘‘(12) Tank track components. 
‘‘(13) Pre-formed retort packaging in direct 
contact with main entree meals within meals ready-
to-eat listed in Federal Supply Class 8970.’’.
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(b) AMENDMENT OF NATIONAL TECHNOLOGY AND 
INDUSTRIAL BASE.—Paragraph (1) of section 2500 of 
title 10, United States Code, is amended—
(1) by striking all that follows after ‘‘States’’ to 
the end of the paragraph and inserting a period; and 
(2) by striking ‘‘production, or maintenance’’ 
and inserting ‘‘production, and maintenance’’. 
(c) AMENDMENT OF WAIVER AUTHORITY.—Section 
2534(d) of title 10, United States Code, is amended—
(1) in the text before paragraph (1), by insert-
ing ‘‘in writing’’ after ‘‘determines’’; 
(2) by striking paragraphs (1), (2), (3), (6), 
(7), and (8); 
(3) by redesignating paragraphs (4) and (5) as 
paragraphs (2) and (3), respectively, and in such 
paragraph (3), as so redesignated, by adding at the 
end the following: ‘‘This exception shall not apply to 
items determined to be critical by the Secretary of 
Defense under section 812 of the National Defense 
Authorization Act for Fiscal Year 2004.’’; and 
(4) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) The Department of Defense’s need for the 
item is of such an unusual and compelling urgency 
that the United States would be seriously injured
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unless the Department is permitted to procure the 
item from sources outside the United States.’’.
SEC. 822. REQUIREMENTS RELATING TO BUYING COMMER-
CIAL ITEMS CONTAINING SPECIALTY METALS 
FROM AMERICAN SOURCES. 
(a) SPECIALTY METALS AND OTHER INDUSTRIAL 
BASE PROTECTION MEASURES.—(1) Subsection (b) of 
section 2533a of title 10, United States Code, is amend-
ed—
(A) in paragraph (1)(B), by inserting before the 
semicolon the following: ‘‘and the materials and 
components thereof’’; and 
(B) in paragraph (2), by inserting before the 
period the following: ‘‘ and any specialty metal that 
may be part of another item’’. 
(2) Subsection (c) of such section is amended—
(A) by striking ‘‘or the Secretary of the military 
department concerned’’; and 
(B) by adding at the end the following: ‘‘For 
each such determination, the Secretary of Defense 
shall notify Congress in writing of the factors sup-
porting the determination.’’. 
(3) Section 2533a of such title is amended by adding 
at the end the following new subsection:
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‘‘(l) AUTHORITY NOT DELEGABLE.—The Secretary 
may not delegate any authority under this section to any-
one other than the Under Secretary of Defense for Acqui-
sition, Technology, and Logistics.’’. 
(b) EXCEPTION TO BERRY AMENDMENT FOR COM-
MERCIAL ITEMS CONTAINING SPECIALTY METALS.—Sec-
tion 2533a of title 10, United States Code, is amended—
(1) by redesignating subsections (i) and (j) as 
subsections (j) and (k), respectively; and 
(2) by inserting after subsection (h) the fol-
lowing new subsection: 
‘‘(i) EXCEPTION
FOR COMMERCIAL ITEMS CON-
TAINING SPECIALTY METALS.—
‘‘(1) IN GENERAL.—Subsection (a) does not 
apply to the procurement of a commercial item con-
taining specialty metals if—
‘‘(A) the contractor agrees to comply with 
the requirement set forth in paragraph (2); or 
‘‘(B) the Secretary of Defense determines 
in writing that the Department of Defense’s 
need for the commercial item containing spe-
cialty metal is of such an unusual and compel-
ling urgency that the United States would be 
seriously injured unless the Department is per-
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mitted to procure the item containing specialty 
metal from outside the United States. 
‘‘(2) REQUIREMENT TO PURCHASE EQUIVALENT 
AMOUNT
OF
DOMESTIC
METAL.—For purposes of 
paragraph (1)(A), the requirement set forth in this 
paragraph is that the contractor for each contract 
entered into by the Secretary for the procurement of 
a commercial item containing specialty metal agrees 
to purchase, over the 18-month period beginning on 
the date of award of the contract, an amount of spe-
cialty metal that is—
‘‘(A) produced, including such functions as 
melting and smelting, in the United States; and 
‘‘(B) equivalent to—
‘‘(i) the amount of specialty metal 
(measured by factors including volume, 
type, and grade) purchased to carry out 
the work under the contract (including the 
work under each subcontract at any tier 
under the contract); plus 
‘‘(ii) 10 percent of the amount re-
ferred to in clause (i). 
‘‘(3) RELATIONSHIP TO OTHER EXCEPTIONS.—
The exceptions under subsections (c), (d), and (h) of
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this section shall not apply to the procurement of a 
commercial item containing specialty metals.
‘‘(4) NOTICE TO CONGRESS.—The Secretary of 
Defense shall not enter into a contract to procure a 
commercial item containing specialty metal pursuant 
to the exception in subsection (a) until Congress is 
notified that the Secretary has applied the exception 
and a period of 15 days has expired after such noti-
fication is made. 
‘‘(5) NOTICE TO INDUSTRY.—The Secretary of 
Defense shall publish a notice in the Federal Reg-
ister on the method that the Department of Defense 
will use to measure an equivalent amount of spe-
cialty metal for purposes of this subsection. Such a 
method shall consider factors such as volume, type, 
and grade of specialty metal that otherwise would be 
produced from United States sources.’’. 
(c) REMOVAL OF SPECIALTY METAL FROM SUB-
SECTION (e) EXCEPTION.—Subsection (e) of such section 
is amended—
(1) in the heading, by striking ‘‘SPECIALTY 
METALS AND’’; and 
(2) by striking ‘‘specialty metals or’’.
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(d) CONFORMING AMENDMENT.—Subsection (a) of 
section 2533a of such title is amended by striking 
‘‘through (h)’’ and inserting ‘‘through (i)’’. 
(e) EFFECTIVE DATE.—Section 2533a(i) of title 10, 
United States Code, as added by subsection (a), shall 
apply to each contract for the procurement of a commer-
cial item containing specialty metal entered into before, 
on, or after the date of the enactment of this Act. 
SEC. 823. ELIMINATION OF UNRELIABLE SOURCES OF DE-
FENSE ITEMS AND COMPONENTS. 
(a) IDENTIFICATION OF CERTAIN COUNTRIES.—The 
Secretary of Defense shall identify foreign countries that, 
by law, policy, or regulation, restricted the provision or 
sale of military goods or services to the United States be-
cause of United States policy toward, or military oper-
ations in, Iraq since September 12, 2002. 
(b) PROHIBITION ON PROCUREMENT OF CERTAIN 
ITEMS FROM IDENTIFIED COUNTRIES.—The Secretary of 
Defense may not procure any items or components con-
tained in military systems if the items or components, or 
the systems, are manufactured in any foreign country 
identified under subsection (a). 
(c) WAIVER AUTHORITY.—The Secretary of Defense 
may waive the limitation in subsection (b) if the Secretary 
determines in writing and notifies Congress that the De-
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partment of Defense’s need for the item is of such an un-
usual and compelling urgency that the United States 
would be seriously injured unless the Department is per-
mitted to procure the item from the sources identified in 
subsection (a). 
(d) EFFECTIVE DATE.—(1) Subject to paragraph 
(2), subsection (b) applies to contracts in existence on the 
date of the enactment of this Act or entered into after 
such date. 
(2) With respect to contracts in existence on the date 
of the enactment of this Act, the Secretary of Defense 
shall take such action as is necessary to ensure that such 
contracts are in compliance with subsection (b) not later 
than 24 months after such date.
SEC. 824. CONGRESSIONAL NOTIFICATION REQUIRED BE-
FORE EXERCISING EXCEPTION TO REQUIRE-
MENT TO BUY SPECIALTY METALS FROM 
AMERICAN SOURCES. 
Section 2533a(c) of title 10, United States Code, is 
amended by adding at the end the following new sentence: 
‘‘The Secretary of Defense or the Secretary of the military 
department concerned may not procure specialty metals 
pursuant to the exception authorized by this subsection 
until the Secretary submits to Congress and publishes in 
the Federal Register notice of the determination made
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under this subsection and a period of 15 days expires after 
the date such notification is submitted.’’.
SEC. 825. REPEAL OF AUTHORITY FOR FOREIGN PROCURE-
MENT OF PARA-ARAMID FIBERS AND YARNS. 
Section 807 of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999 (Public Law 
105–261; 112 Stat. 2084) is repealed.
SEC. 826. REQUIREMENT FOR MAJOR DEFENSE ACQUISI-
TION PROGRAMS TO USE MACHINE TOOLS 
ENTIRELY PRODUCED WITHIN THE UNITED 
STATES. 
(a) IN GENERAL.—(1) Chapter 144 of title 10, 
United States Code, is amended by inserting after section 
2435 the following new section:
‘‘§ 2436. Major defense acquisition programs: require-
ment for certain items to be entirely pro-
duced in United States 
‘‘The Secretary of Defense shall require that, for any 
procurement of a major defense acquisition program—
‘‘(1) the contractor for the procurement shall 
use only machine tools entirely produced within the 
United States to carry out the contract; and 
‘‘(2) any subcontractor under the contract shall 
comply with paragraph (1) in the case of any con-
tract in an amount that is $5,000,000 or greater.
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(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 2435 the following new item:
‘‘2436. Major defense acquisition programs: requirement for certain items to be 
entirely produced in United States.’’.
(b) EFFECTIVE DATE.—Section 2436 of title 10, 
United States Code, as added by subsection (a), shall 
apply with respect to contracts entered into after the date 
occurring four years after the date of the enactment of 
this Act. 
SEC. 827. DATA COLLECTION AND TECHNICAL ASSISTANCE 
CENTER RELATING TO MACHINE TOOLS. 
(a) COLLECTION OF DATA ON CONTRACTS USING 
MACHINE TOOLS.—The Secretary of Defense shall collect 
data in order to identify all contractors and subcontractors 
that use machine tools in carrying out any defense con-
tract in an amount that is $5,000,000 or greater. 
(b) TECHNICAL ASSISTANCE CENTER.—The Sec-
retary of Defense shall establish a center to provide tech-
nical assistance to machine tool companies in the United 
States, and entities that use machine tools, to seek guid-
ance with respect to government contracting regulations, 
including compliance procedures, and opportunities for 
contracting with the Department of Defense. As part of 
the assistance provided through the center, the Secretary 
may provide information about defense contracts that are
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expected to be carried out through the use of machine 
tools. 
(c) DEFINITION.—In this section the term ‘‘machine 
tools’’ includes machine tools in the North American In-
dustry Classification System (NAICS) codes 333511, 
333512, 333513, 333514, and 333515. 
SEC. 828. BUY AMERICAN ENHANCEMENT. 
Section 2533 of title 10, United States Code, is 
amended—
(1) by redesignating subsection (b) as sub-
section (c); and 
(2) by inserting after subsection (a) the fol-
lowing new subsection (b): 
‘‘(b) In determining under section 2 of the Buy 
American Act (41 U.S.C. 10a et seq.) whether application 
of such Act is inconsistent with the public interest, the 
Secretary of Defense shall not consider the provisions of 
any trade agreement between the United States and a for-
eign country that is in effect at the time of the determina-
tion.’’. 
SEC. 829. REQUIREMENT RELATING TO PURCHASES BY DE-
PARTMENT OF DEFENSE SUBJECT TO BUY 
AMERICAN ACT. 
In applying section 2 of the Buy American Act (41 
U.S.C. 10a) to acquisitions by the Department of Defense,
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the term ‘‘substantially all’’ shall mean at least 65 per-
cent.
Part III—General Provisions
SEC. 831. DEFINITIONS. 
In this subtitle: 
(1) COVERED
MILITARY
SYSTEM.—The term 
‘‘covered military system’’ means a military system 
that includes one or more critical items. 
(2) MILITARY
SYSTEM.—The term ‘‘military 
system’’ means a military system necessary to sup-
port national security requirements, as determined 
by the Secretary of Defense, and which costs more 
than $25,000. At a minimum, the term includes the 
following: 
(A) Weapons listed in Federal Supply 
Group 10. 
(B) Nuclear ordnance listed in Federal 
Supply Group 11. 
(C) Fire control equipment listed in Fed-
eral Supply Group 12. 
(D) Ammunition and explosives listed in 
Federal Supply Group 13. 
(E) Guided missiles listed in Federal Sup-
ply Group 14.
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(F) Aircraft and related components, ac-
cessories, and equipment listed in Federal Sup-
ply Groups 15, 16, and 17. 
(G) Space vehicles listed in Federal Supply 
Group 18. 
(H) Ships, small craft, pontoons, and float-
ing docks listed in Federal Supply Group 19. 
(I) Ship and marine equipment listed in 
Federal Supply Group 20. 
(J) Tracked combat vehicles listed in Fed-
eral Supply Class 2350. 
(K) Engines, turbines, and components 
listed in Federal Supply Group 28. 
(3) CRITICAL ITEM.—The term ‘‘critical item’’ 
means an item or component determined to be crit-
ical by the Secretary of Defense under section 812. 
(4) ITEM.—The term ‘‘item’’ means an end 
item. 
(5) 
COMPONENT.—The 
term 
‘‘component’’ 
means an article, material, or supply incorporated 
into an end item. The term includes software and 
subassemblies. 
(6) FOREIGN CONTRACTOR.—The term ‘‘foreign 
contractor’’ means a contractor or subcontractor or-
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ganized or existing under the laws of a country other 
than the United States. 
(7) UNITED STATES CONTRACTOR.—The term 
‘‘United States contractor’’ means a contractor or 
subcontractor organized or existing under the laws 
of the United States. 
(8) UNITED
STATES
PRODUCTION
CAPABILI-
TIES.—The term ‘‘United States production capa-
bilities’’ means, with respect to an item or compo-
nent, facilities located in the United States to de-
sign, develop, or manufacture the item or compo-
nent.
TITLE 
IX—DEPARTMENT 
OF
DEFENSE 
ORGANIZATION 
AND MANAGEMENT
SEC. 901. CHANGE IN TITLE OF SECRETARY OF THE NAVY 
TO SECRETARY OF THE NAVY AND MARINE 
CORPS. 
(a) CHANGE IN TITLE.—The position of the Sec-
retary of the Navy is hereby redesignated as the Secretary 
of the Navy and Marine Corps. 
(b) REFERENCES.—Any reference to the Secretary of 
the Navy in any law, regulation, document, record, or 
other paper of the United States shall be considered to
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be a reference to the Secretary of the Navy and Marine 
Corps.
SEC. 902. REDESIGNATION OF NATIONAL IMAGERY AND 
MAPPING 
AGENCY 
AS 
NATIONAL 
GEOSPATIAL-INTELLIGENCE AGENCY. 
(a) REDESIGNATION.—The National Imagery and 
Mapping Agency of the Department of Defense is hereby 
redesignated as the National Geospatial-Intelligence Agen-
cy. 
(b) DEFINITION OF GEOSPATIAL INTELLIGENCE.—
Section 467 of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(5) The term ‘geospatial intelligence’ means 
the exploitation and analysis of imagery and 
geospatial information to describe, assess, and vis-
ually depict physical features and geographically ref-
erenced activities on the earth. Geospatial intel-
ligence consists of imagery, imagery intelligence, and 
geospatial information.’’. 
(c) AGENCY MISSIONS.—(1) Section 442(a) of title 
10, United States Code, is amended—
(A) in paragraph (1), by inserting ‘‘geospatial 
intelligence consisting of’’ after ‘‘provide’’; and
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(B) in paragraph (2), by striking ‘‘Imagery, 
intelligency, 
and 
information’’ 
and 
inserting 
‘‘Geospatial intelligence’’. 
(2) Section 110(a) of the National Security Act of 
1947 (50 U.S.C. 404e(a)) is amended by striking ‘‘im-
agery’’ and inserting ‘‘geospatial intelligence’’. 
(d) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.—Title 10, United States Code, is 
amended as follows: 
(1) The heading of chapter 22 is amended to 
read as follows: 
‘‘CHAPTER 22—NATIONAL GEOSPATIAL-
INTELLIGENCE AGENCY’’. 
(2) Chapter 22 is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ each place it appears and in-
serting ‘‘National Geospatial-Intelligence Agen-
cy’’; and 
(B) in section 453(b), by striking ‘‘NIMA’’ 
in paragraphs (1) and (2) and inserting 
‘‘NGA’’. 
(3) Section 193 is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ in subsections (d)(1), (d)(2),
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(e), 
and 
(f)(4) 
and 
inserting 
‘‘National 
Geospatial-Intelligence Agency’’; 
(B) in the heading for subsection (d), by 
striking ‘‘NATIONAL IMAGERY
AND MAPPING 
AGENCY’’ 
and 
inserting 
‘‘NATIONAL 
GEOSPATIAL-INTELLIGENCE AGENCY’’; and 
(C) in the heading for subsection (e), by 
striking ‘‘NIMA’’ and inserting ‘‘NGA’’. 
(4) Section 201 is amended by striking ‘‘Na-
tional Imagery and Mapping Agency’’ in subsections 
(b)(2)(C) and (c)(2)(C) and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(5)(A) Section 424 is amended by striking ‘‘Na-
tional Imagery and Mapping Agency’’ in subsection 
(b)(3) and inserting ‘‘National Geospatial-Intel-
ligence Agency’’. 
(B)(i) The heading of such section is amended 
to read as follows: 
‘‘§ 424. Disclosure of organizational and personnel in-
formation: exemption for specified intel-
ligence agencies’’. 
(ii) The item relating to that section in the 
table of sections at the beginning of subchapter I of 
chapter 21 is amended to read as follows:
‘‘424. Disclosure of organizational and personnel information: exemption for 
specified intelligence agencies.’’.
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(6) Section 425(a) is amended by adding at the 
end the following new paragraph: 
‘‘(5) The words ‘National Geospatial-Intel-
ligence Agency’, the initials ’NGA,’ or the seal of the 
National Geospatial-Intelligence Agency.’’. 
(7) Section 1614(2)(C) is amended by striking 
‘‘National Imagery and Mapping Agency’’ and in-
serting ‘‘National Geospatial-Intelligence Agency’’. 
(8) The tables of chapters at the beginning of 
subtitle A, and at the beginning of part I of subtitle 
A, are each amended by striking ‘‘Imagery and Map-
ping’’ in the item relating to chapter 22 and insert-
ing ‘‘Geospatial-Intelligence’’. 
(e) CONFORMING AMENDMENTS TO NATIONAL SECU-
RITY ACT OF 1947.—The National Security Act of 1947 
is amended as follows: 
(1) Section 3 (50 U.S.C. 401a) is amended by 
striking ‘‘National Imagery and Mapping Agency’’ in 
paragraph 
(4)(E) 
and 
inserting 
‘‘National 
Geospatial- Intelligence Agency’’. 
(2) Section 105 (50 U.S.C. 403–5) is amended 
by striking ‘‘National Imagery and Mapping Agen-
cy’’ in subsections (b)(2) and (d)(3) and inserting 
‘‘National Geospatial-Intelligence Agency’’.
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(3) Section 105A (50 U.S.C. 403–5a) is amend-
ed by striking ‘‘National Imagery and Mapping 
Agency’’ in subsection (b)(1)(C) and inserting ‘‘Na-
tional Geospatial-Intelligence Agency’’. 
(4) Section 105C (50 U.S.C. 403-5c) is amend-
ed—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ each place it appears and in-
serting ‘‘National Geospatial-Intelligence Agen-
cy’’; 
(B) by striking ‘‘NIMA’’ each place it ap-
pears and inserting ‘‘NGA’’; and 
(C) by striking ‘‘NATIONAL IMAGERY AND 
MAPPING AGENCY’’ in the section heading and 
inserting 
‘‘NATIONAL
GEOSPATIAL-INTEL-
LIGENCE AGENCY’’. 
(5) Section 106 (50 U.S.C. 403–6) is amended 
by striking ‘‘National Imagery and Mapping Agen-
cy’’ in subsection (a)(2)(C) and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(6) Section 110 (50 U.S.C. 404e) is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ in subsections (a), (b), and 
(c) and inserting ‘‘National Geospatial-Intel-
ligence Agency’’; and
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(B) by striking ‘‘NATIONAL IMAGERY AND 
MAPPING AGENCY’’ in the section heading and 
inserting 
‘‘NATIONAL
GEOSPATIAL-INTEL-
LIGENCE AGENCY’’. 
(7) The table of contents in the first section is 
amended—
(A) by striking the item relating to section 
105C and inserting the following:
‘‘Sec. 105C. Protection of operational files of National Geospatial-Intelligence 
Agency.’’;
and 
(B) by striking the item relating to section 
110 and inserting the following:
‘‘Sec. 110. National mission of National Geospatial-Intelligence Agency.’’.
(f) 
CROSS
REFERENCE
CORRECTION.—Section 
442(d) of title 10, United States Code, is by striking ‘‘sec-
tion 120(a) of the National Security Act of 1947’’ and 
inserting ‘‘section 110(a) of the National Security Act of 
1947 (50 U.S.C. 404e(a))’’.
(g) REFERENCES.—Any reference to the National 
Imagery and Mapping Agency in any law, regulation, map, 
document, record, or other paper of the United States 
shall be considered to be a reference to the National 
Geospatial-Intelligence Agency.
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SEC. 903. PILOT PROGRAM FOR PROVISION OF SPACE SUR-
VEILLANCE NETWORK SERVICES TO NON-
UNITED STATES GOVERNMENTAL ENTITIES. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 2272. Space surveillance network: pilot program 
for provision of satellite tracking support 
to entities outside United States Govern-
ment 
‘‘(a) PILOT PROGRAM.—The Secretary of Defense 
may carry out a pilot program to determine the feasibility 
and desirability of providing to non-United States Govern-
mental entities space surveillance data support described 
in subsection (b). 
‘‘(b) SPACE SURVEILLANCE DATA SUPPORT.—Under 
such a pilot program, the Secretary may provide to a non-
United States Governmental entity, subject to an agree-
ment described in subsection (c), the following: 
‘‘(1) Satellite tracking services from assets 
owned or controlled by the Department of Defense, 
but only if the Secretary determines, in the case of 
any such agreement, that providing such services to 
that entity is in the national security interests of the 
United States.
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‘‘(2) Space surveillance data and the analysis of 
space surveillance data, but only if the Secretary de-
termines, in the case of any such agreement, that 
providing such data and analysis to that entity is in 
the national security interests of the United States. 
‘‘(c) REQUIRED AGREEMENT.—The Secretary may 
not provide space surveillance data support to a non-
United States Governmental entity under the pilot pro-
gram unless that entity enters into an agreement with the 
Secretary under which the entity—
‘‘(1) agrees to pay an amount that may be 
charged by the Secretary under subsection (f); and 
‘‘(2) agrees not to transfer any data or tech-
nical information received under the agreement, in-
cluding the analysis of tracking data, to any other 
entity without the Secretary’s express approval. 
‘‘(d) REQUIREMENTS WITH RESPECT TO FOREIGN 
TRANSACTIONS.—(1) The Secretary may enter into an 
agreement under subsection (c) to provide space surveil-
lance data support to a foreign government or other for-
eign entity only with the concurrence of the Secretary of 
State. 
‘‘(2) In the case of such an agreement that is entered 
into with a foreign government or other foreign entity, the 
Secretary of Defense may provide approval under sub-
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section (c)(2) for a transfer of data or technical informa-
tion only with the concurrence of the Secretary of State. 
‘‘(e) PROHIBITION CONCERNING PROVISION OF IN-
TELLIGENCE ASSETS OR DATA.—Nothing in this section 
shall be considered to authorize the provision of services 
or information concerning, or derived from, United States 
intelligence assets or data. 
‘‘(f) CHARGES.—As a condition of an agreement 
under subsection (c), the Secretary of Defense may require 
the non-United States Governmental entity entering into 
the agreement to pay to the Department of Defense such 
amounts as the Secretary determines to be necessary to 
reimburse the Department of Defense for the costs to the 
Department of providing space surveillance data support 
under the agreement. 
‘‘(g) CREDITING OF FUNDS RECEIVED.—Funds re-
ceived pursuant to an agreement under this section shall 
be credited to accounts of the Department of Defense that 
are current when the proceeds are received and that are 
available for the same purposes as the accounts originally 
charged to perform the services. Funds so credited shall 
merge with and become available for obligation for the 
same period as the accounts to which they are credited. 
‘‘(h) PROCEDURES.—The Secretary shall establish 
procedures for the conduct of the pilot program. As part
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of those procedures, the Secretary may allow space surveil-
lance data and analytical support to be provided through 
a contractor of the Department of Defense. 
‘‘(i) DURATION OF PILOT PROGRAM.—The pilot pro-
gram under this section shall be conducted during the 
three-year period beginning on a date specified by the Sec-
retary of Defense, which date shall be not later than 180 
days after the date of the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2272. Space surveillance network: pilot program for provision of satellite track-
ing services and data to entities outside United States Govern-
ment.’’.
SEC. 904. CLARIFICATION OF RESPONSIBILITY OF MILI-
TARY DEPARTMENTS TO SUPPORT COMBAT-
ANT COMMANDS. 
Sections 3013(c)(4), 5013(c)(4), and 8013(c)(4) of 
title 10, United States Code, are each amended by striking 
‘‘(to the maximum extent practicable)’’.
SEC. 905. BIENNIAL REVIEW OF NATIONAL MILITARY 
STRATEGY BY CHAIRMAN OF THE JOINT 
CHIEFS OF STAFF. 
(a) BIENNIAL REVIEW.—Section 153 of title 10, 
United States Code, by adding at the end the following 
new subsection:
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‘‘(d) BIENNIAL REVIEW
OF NATIONAL MILITARY 
STRATEGY.—(1) Not later then February 15 of each even-
numbered year, the Chairman shall submit to the Com-
mittee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives 
a report containing the results of a comprehensive exam-
ination of the national military strategy. Each such exam-
ination shall be conducted by the Chairman in conjunction 
with the other members of the Joint Chiefs of Staff and 
the commanders of the unified and specified commands. 
‘‘(2) Each report on the examination of the national 
military strategy under paragraph (1) shall include the fol-
lowing: 
‘‘(A) Delineation of a national military strategy 
consistent with the most recent National Security 
Strategy prescribed by the President pursuant to 
section 108 of the National Security Act of 1947 
(50 U.S.C. 404a) and the most recent Quadrennial 
Defense Review prescribed by the Secretary of De-
fense pursuant to section 118 of this title. 
‘‘(B) A description of the strategic environment 
and the opportunities and challenges that affect 
United States national interests and United States 
national security.
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‘‘(C) A description of the regional threats to 
United States national interests and United States 
national security. 
‘‘(D) A description of the international threats 
posed by terrorism, weapons of mass destruction, 
and asymmetric challenges to United States national 
security. 
‘‘(E) Identification of United States national 
military objectives and the relationship of those ob-
jectives to the strategic environment, regional, and 
international threats. 
‘‘(F) Identification of the strategy, underlying 
concepts, and component elements that contribute to 
the achievement of United States national military 
objectives. 
‘‘(G) Assessment of the capabilities and ade-
quacy of United States forces (including both active 
and reserve components) to successfully execute the 
national military strategy. 
‘‘(H) Assessment of the capabilities, adequacy, 
and interoperability of regional allies of the United 
States and or other friendly nations to support 
United States forces in combat operations and other 
operations for extended periods of time.
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‘‘(I) Assessment of the resources, basing re-
quirements, and support structure needed to provide 
the capabilities necessary to be assured United 
States forces can successfully achieve national mili-
tary objectives and to assess what resources and 
support might be required to sustain allies or friend-
ly nation forces during combat operations. 
‘‘(3)(A) As part of the assessment under this sub-
section, the Chairman, in conjunction with the other mem-
bers of the Joint Chiefs of Staff and the commanders of 
the unified and specified commands, shall undertake an 
assessment of the nature and magnitude of the strategic 
and military risks associated with successfully executing 
the missions called for under the current National Military 
Strategy. 
‘‘(B) In preparing the assessment of risk, the Chair-
man should assume the existence of those threats de-
scribed in subparagraphs (C) and (D) of paragraph (2) 
and should assess the risk associated with two regional 
threats occurring nearly simultaneously. 
‘‘(C) In addition to the assumptions to be made under 
subparagraph (B), the Chairman should make other as-
sumptions pertaining to the readiness of United States 
forces (in both the active and reserve components), the 
length of conflict and the level of intensity of combat oper-
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ations, and the levels of support from allies and other 
friendly nations. 
‘‘(4) Before submitting a report under this subsection 
to the Committees on Armed Services of the Senate and 
House of Representatives, the Chairman shall provide the 
report to the Secretary of Defense. The Secretary’s assess-
ment and comments thereon (if any) shall be included with 
the report. If the Chairman’s assessment in such report 
in any year is that the risk associated with executing the 
missions called for under the National Military Strategy 
is significant, the Secretary shall include with the report 
as submitted to those committees the Secretary’s plan for 
mitigating the risk.’’. 
(b) CONFORMING AMENDMENT.—Subsection (b)(1) 
of such section is amended by striking ‘‘each year’’ and 
inserting ‘‘of each odd-numbered year’’.
SEC. 906. AUTHORITY FOR ACCEPTANCE BY ASIA-PACIFIC 
CENTER FOR SECURITY STUDIES OF GIFTS 
AND 
DONATIONS 
FROM 
NONFOREIGN 
SOURCES. 
(a) AUTHORITY.—Subsection (a) of section 2611 of 
title 10, United States Code, is amended—
(1) by striking ‘‘FOREIGN’’ in the subsection 
caption;
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(2) by striking ‘‘foreign’’ in paragraph (1) after 
‘‘Center,’’; and 
(3) by adding at the end of paragraph (1) the 
following sentence: ‘‘Such gifts and donations may 
be accepted from any agency of the United States, 
any State or local government, any foreign govern-
ment, any foundation or other charitable organiza-
tion (including any that is organized or operates 
under the laws of a foreign country), or any other 
private source in the United States or a foreign 
country.’’. 
(b) CONFORMING AMENDMENTS.—Such section is 
further amended— 
(1) by striking ‘‘foreign’’ in subsection (c); and 
(2) in subsection (f)—
(A) by striking ‘‘FOREIGN’’ in the sub-
section caption; 
(B) by striking ‘‘foreign’’ after ‘‘section, 
a’’; and 
(C) by striking ‘‘from a foreign’’ and all 
that follows through ‘‘country.’’ and inserting a 
period. 
(c) CLERICAL AMENDMENTS.— The heading of such 
section, and the item relating to such section in the table 
of sections at the beginning of chapter 155 of such title,
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are each amended by striking the third word after the 
colon.
SEC. 907. REPEAL OF ROTATING CHAIRMANSHIP OF ECO-
NOMIC ADJUSTMENT COMMITTEE. 
Section 4004(b) of the Defense Economic Adjust-
ment, Diversification, Conversion, and Stabilization Act of 
1990 (division D of Public Law 101–510; 10 U.S.C. 2391 
note) is amended—
(1) by striking ‘‘Until October 1, 1997, the’’ 
and inserting ‘‘The’’; and 
(2) by striking the second sentence.
SEC. 908. PILOT PROGRAM FOR IMPROVED CIVILIAN PER-
SONNEL MANAGEMENT. 
(a) PILOT PROGRAM.—(1) The Secretary of Defense 
may carry out a pilot program using an automated work-
force management system to demonstrate improved effi-
ciency in the performance of civilian personnel manage-
ment. 
(2) Under the pilot program, the Secretary of De-
fense shall provide the Secretary of each military depart-
ment with the authority for the following: 
(A) To use an automated workforce manage-
ment system for its civilian workforce to assess its 
potential to substantially reduce hiring cycle times, 
lower labor costs, increase efficiency, improve per-
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formance management, provide better management 
reporting, and enable it to make operational new 
personnel management flexibilities granted under the 
civilian personnel transformation program. 
(B) Identify one regional civilian personnel cen-
ter (or equivalent) in each military department for 
participation in the pilot program. 
(3) The Secretary may carry out the pilot program 
under this subsection at each selected regional civilian per-
sonnel center for a period of two years beginning not later 
than March 1, 2004. 
(b) PILOT PROGRAM CHARACTERISTICS.—The pilot 
program civilian personnel management system shall have 
at a minimum the following characteristics: 
(1) Currently in use by Federal Government 
agencies outside the Department of Defense. 
(2) Able to be purchased on an annual sub-
scription basis. 
(3) Requires no capital investment, software li-
cense fees, transaction charges, or ‘‘per seat’’ or 
‘‘concurrent user’’ restrictions. 
(4) Capable of automating the workforce man-
agement functions of job definition, position man-
agement, recruitment, staffing, and performance 
management using integrated vendor-supplied and
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supported data, expert system rules engines, and 
software functionality across those functions. 
(5) Has a ‘‘native web’’ technical architecture 
and an Oracle database. 
(6) Fully hosted by the vendor so that the cus-
tomer requires only Internet access and an Internet 
browser to use the system. 
(7) Capable of operating completely ‘‘server 
side’’ so that no software is required on the client 
system and no invasive elements are used. 
(c) IMPLEMENTATION PLAN.—(1) The Secretary 
shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the 
House of Representatives a plan for the implementation 
of the pilot program. The plan shall be submitted no later 
than six months after the date of the enactment of this 
Act. 
(2) The plan shall include the following: 
(A) The Secretary’s request to the Office of 
Personnel Management to conduct the pilot program 
as a Federal civilian personnel demonstration project 
under chapter 47 of title 5, United States Code, or 
a plan to provide for the pilot program through an-
other plan. 
(B) The expected cost of the pilot program.
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(C) Identification of the regional civilian per-
sonnel centers for participation in the pilot program 
and the criteria used to select them. 
(D) Expected timing for providing to Congress 
the results of the pilot program and recommenda-
tions of the Secretary. 
(d) IMPLEMENTATION.—The Secretary may not 
begin to implement the pilot program until a period of 30 
days has elapsed after the date of the submission of the 
plan for the pilot program under subsection (c).
SEC. 909. EXTENSION OF CERTAIN AUTHORITIES APPLICA-
BLE TO THE PENTAGON RESERVATION TO IN-
CLUDE 
DESIGNATED 
PENTAGON 
CON-
TINUITY-OF-GOVERNMENT LOCATIONS. 
Section 2674 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) For purposes of subsections (b), (c), (d), and 
(e), the terms ‘Pentagon Reservation’ and ‘National Cap-
ital Region’ shall be treated as including the land and 
physical facilities at the Raven Rock Mountain Complex 
and such other areas of land, locations, and physical facili-
ties of the Department of Defense within 100 miles of the 
District of Columbia as the Secretary of Defense deter-
mines are necessary to meet the needs of the Department
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of Defense directly relating to continuity of operations and 
continuity of government.’’.
SEC. 910. DEFENSE ACQUISITION WORKFORCE REDUC-
TIONS. 
(a) REVISED LIMITATION.—Subchapter V of chapter 
87 of title 10, United States Code, is amended by adding 
at the end the following new section: 
‘‘§ 1765. Defense acquisition workforce: limitation 
‘‘(a) LIMITATION.—Effective October 1, 2008, the 
number of defense acquisition and support personnel in 
the Department of Defense may not exceed 75 percent of 
the baseline number. 
‘‘(b) PHASED REDUCTION.—The number of defense 
acquisition and support personnel in the Department of 
Defense—
‘‘(1) as of October 1, 2004, may not exceed 95 
percent of the baseline number; 
‘‘(2) as of October 1, 2005, may not exceed 90 
percent of the baseline number; 
‘‘(3) as of October 1, 2006, may not exceed 85 
percent of the baseline number; and 
‘‘(4) as of October 1, 2007, may not exceed 80 
percent of the baseline number. 
‘‘(c) BASELINE NUMBER.—In this section, the term 
‘baseline number’ means the number of defense acquisi-
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tion and support personnel in the Department of Defense 
as of October 1, 2003. 
‘‘(d) DEFENSE ACQUISITION
AND SUPPORT PER-
SONNEL DEFINED.—In this section, the term ‘defense ac-
quisition and support personnel’ means military and civil-
ian personnel (other than civilian personnel who are em-
ployed at a maintenance depot) who are assigned to, or 
employed in, acquisition organizations of the Department 
of Defense (as specified in Department of Defense In-
struction numbered 5000.58 dated January 14, 1992), 
and any other organizations which the Secretary may de-
termine to have a predominantly acquisition mission.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by adding 
at the end the following new item:
‘‘1765. Defense acquisition workforce: limitation.’’.
SEC. 911. REQUIRED FORCE STRUCTURE. 
(a) ARMY.—Section 3062 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(e) The Army shall be so organized as to include 
not less than—
‘‘(1) 10 active and eight National Guard com-
bat divisions or their equivalents; 
‘‘(2) one active armored cavalry regiment and 
one light cavalry regiment or their equivalents;
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‘‘(3) 15 National Guard enhanced brigades or 
their equivalents; and 
‘‘(4) such other active and reserve component 
land combat, rotary-wing aviation, and other services 
as may be required to support forces specified in 
paragraphs (1) through (3).’’. 
(b) NAVY.—Section 5062 of such title is amended by 
adding at the end the following new subsection: 
‘‘(d) The Navy, within the Department of the Navy, 
shall be so organized as to include—
‘‘(1) not less than 305 vessels in active service; 
‘‘(2) not less than 12 aircraft carrier battle 
groups or their equivalents, not less than 12 am-
phibious ready groups or their equivalents, not less 
than 55 attack submarines, not less than 108 active 
surface combatant vessels, and not less than 8 re-
serve combatant vessels; and 
‘‘(3) such other active and reserve naval com-
bat, naval aviation, and service forces as may be re-
quired to support forces specified in paragraphs (1) 
and (2).’’. 
(c) AIR FORCE.—Section 8062 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection:
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‘‘(g) Notwithstanding subsection (e), the Air Force 
shall be so organized as to include not less than—
‘‘(1) 46 active fighter squadrons or their 
equivalents; 
‘‘(2) 38 National Guard and Reserve squadrons 
or their equivalents; 
‘‘(3) 96 combat-coded bomber aircraft in active 
service; and 
‘‘(4) such other squadrons, reserve groups, and 
supporting auxiliary and reserve units as may be re-
quired to support forces specified in paragraphs (1) 
through (3).’’.
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) Upon determination by the Secretary of Defense that 
such action is necessary in the national interest, the Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 2004 between any such authorizations for that 
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and be 
available for the same purposes as the authorization to 
which transferred.
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(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section 
may not exceed $2,500,000,000. 
(b) LIMITATIONS.—The authority provided by this 
section to transfer authorizations—
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a). 
SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 2003. 
(a) DOD AUTHORIZATIONS.—Amounts authorized to 
be appropriated to the Department of Defense for fiscal 
year 2003 in the Bob Stump National Defense Authoriza-
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tion Act for Fiscal Year 2003 (Public Law 107–314) are 
hereby adjusted, with respect to any such authorized 
amount, by the amount by which appropriations pursuant 
to such authorization are increased (by a supplemental ap-
propriation) or decreased (by a rescission), or both, or are 
increased by a transfer of funds, pursuant to the following: 
(1) Chapters 3 and 8 of title I of the Emer-
gency Wartime Supplemental Appropriations Act, 
2003 (Public Law 108–11). 
(2) Any Act enacted after May 23, 2003, mak-
ing supplemental appropriations for fiscal year 2003 
for the military functions of the Department of De-
fense. 
(b) NNSA AUTHORIZATIONS.—Amounts authorized 
to be appropriated to the Department of Energy for fiscal 
year 2003 in the Bob Stump National Defense Authoriza-
tion Act for Fiscal Year 2003 (Public Law 107–314) are 
hereby adjusted, with respect to any such authorized 
amount, by the amount by which appropriations pursuant 
to such authorization are increased (by a supplemental ap-
propriation) or decreased (by a rescission), or both, or are 
increased by a transfer of funds, pursuant to the following: 
(1) Chapter 4 of the Emergency Wartime Sup-
plemental Appropriations Act, 2003 (Public Law 
108–11).
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(2) Any Act enacted after May 23, 2003, mak-
ing supplemental appropriations for fiscal year 2003 
for the atomic energy defense activities of the De-
partment of Energy. 
SEC. 1003. AUTHORITY TO TRANSFER PROCUREMENT 
FUNDS FOR A MAJOR DEFENSE ACQUISITION 
PROGRAM FOR CONTINUED DEVELOPMENT 
WORK ON THAT PROGRAM. 
(a) AUTHORITY.—Section 2214 of title 10, United 
States Code, is amended—
(1) by redesignating subsections (b), (c), and 
(d) as subsections (c), (d), and (e), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsection (b): 
‘‘(b) TRANSFER OF PROCUREMENT FUNDS FOR DE-
VELOPMENT ACTIVITIES FOR MAJOR DEFENSE ACQUISI-
TION SYSTEMS.—(1) In the case of a major defense acqui-
sition program (as defined in section 2430 of this title) 
for which funds are currently available both for procure-
ment and for research, development, test, and evaluation, 
if the Secretary concerned determines that funds are re-
quired for further research, development, test, and evalua-
tion activities for that program in excess of the funds cur-
rently available for that purpose, the Secretary may (sub-
ject to paragraph (2)) transfer funds available for that
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program for procurement to funds available for that pro-
gram for research, development, test, and evaluation for 
the purpose of continuing research, development, test, and 
evaluation activities for that program. 
‘‘(2)(A) The total amount transferred under the au-
thority of paragraph (1) for any acquisition program may 
not exceed $20,000,000. 
‘‘(B) The total amount transferred under the author-
ity of paragraph (1) from amounts made available for any 
fiscal year may not exceed $250,000,000. 
‘‘(3) The authority provided by paragraph (1) is in 
addition to any other transfer authority that may be pro-
vided by law. 
‘‘(4) Upon a determination that all or part of the 
funds transferred under paragraph (1) are not necessary 
for the purpose for which the transfer was made, such 
amounts may be transferred back to a Procurement ap-
propriation for the purpose of procurement of the acquisi-
tion program for which funds were transferred.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall not apply with respect to funds appro-
priated for a fiscal year before fiscal year 2004.
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SEC. 1004. RESTORATION OF AUTHORITY TO ENTER INTO 
12-MONTH LEASES AT ANY TIME DURING THE 
FISCAL YEAR. 
Section 2410a(a) of title 10, United States Code, is 
amended by inserting after ‘‘severable services’’ the fol-
lowing: ‘‘and the lease of real or personal property, includ-
ing the maintenance of such property when contracted for 
as part of the lease agreement,’’. 
SEC. 1005. AUTHORITY FOR RETENTION OF ADDITIONAL 
AMOUNTS REALIZED FROM ENERGY COST 
SAVINGS. 
(a) INCREASE IN AMOUNT OF ENERGY COST SAV-
INGS RETAINED.—Section 2865(b)(1) of title 10, United 
States Code, is amended by striking ‘‘Two-thirds of the 
portion of the funds appropriated to Department of De-
fense for a fiscal year that is’’ and inserting ‘‘Funds ap-
propriated to the Department of Defense for a fiscal year 
that are’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall not apply to funds appropriated for 
a fiscal year before fiscal year 2004.
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SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR 
BUDGET CYCLE FOR THE DEPARTMENT OF 
DEFENSE. 
Section 1405 of the Department of Defense Author-
ization Act, 1986 (Public Law 99–145; 31 U.S.C. 1105 
note), is repealed. 
SEC. 1007. AUTHORITY TO PROVIDE REIMBURSEMENT FOR 
USE OF PERSONAL CELLULAR TELEPHONES 
WHEN USED FOR OFFICIAL GOVERNMENT 
BUSINESS. 
(a) IN GENERAL.—(1) Chapter 134 of title 10, 
United States Code, is amended by inserting after section 
2257 the following new section: 
‘‘§ 2258. Personal cellular telephones: reimbursement 
when used for Government business 
‘‘(a) GENERAL AUTHORITY.—The Secretary of De-
fense may reimburse members of the Army, Navy, Air 
Force, and Marine Corp, and civilian officers and employ-
ees of the Department of Defense, for cellular telephone 
use on a privately owned cellular telephone when used on 
official Government business. Such reimbursement shall 
be on a flat-rate basis. 
‘‘(b) REIMBURSEMENT RATE.—The Secretary of De-
fense may prescribe the reimbursement rate for purposes 
of subsection (a). That reimbursement rate may not ex-
ceed the equivalent Government costs of providing a cel-
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lular telephone to employees on official Government busi-
ness.’’. 
(2) The table of sections at the beginning of sub-
chapter II of such chapter is amended by inserting after 
the item relating to section 2257 the following new item:
‘‘2258. Personal cellular telephones: reimbursement when used for Government 
business.’’.
(b) EFFECTIVE DATE.—Section 2258 of title 10, 
United States Code, as added by subsection (a), shall take 
effect on October 1, 2003, and shall apply with respect 
to the use of cellular phones on or after that date. 
Subtitle B—Naval Vessels and 
Shipyards 
SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESER-
VATION OF SURGE CAPABILITY FOR NAVAL 
SURFACE COMBATANTS. 
(a) REPEAL.—Section 7296 of title 10, United States 
Code, is amended by striking subsection (b). 
(b) CLERICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) by striking ‘‘(3) Any notification under 
paragraph (1)(A)’’ and inserting ‘‘(b) CONTENT OF 
NOTIFICATION.—Any notification under subsection 
(a)(1)(A)’’; 
(2) by redesignating subparagraphs (A), (B), 
and (C) of subsection (b) (as redesignated by para-
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graph (1)) as paragraphs (1), (2), and (3), respec-
tively; and 
(3) by striking ‘‘subparagraph (B)’’ in sub-
section (b)(3) (as redesignated by paragraphs (1) 
and (2)) and inserting ‘‘paragraph (2)’’. 
SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO 
USE FOR EXPERIMENTAL PURPOSES OF VES-
SELS STRICKEN FROM NAVAL VESSEL REG-
ISTER. 
(a) SALE OF MATERIAL AND EQUIPMENT STRIPPED 
FROM VESSEL.—Subsection (b)(1) of section 7306a of 
title 10, United States Code, is amended by adding at the 
end the following new sentence: ‘‘Material and equipment 
stripped from the vessel may be sold by a contractor or 
a designated sales agent on behalf of the Navy.’’. 
(b) USE OF PROCEEDS.—(1) Subsection (b)(2) of 
such section is amended by striking ‘‘scrapping services’’ 
and all that follows through the end of such subsection 
and inserting ‘‘services needed for such stripping and for 
environmental remediation required for the use of the ves-
sel for experimental purposes. Amounts received in excess 
of amounts needed for reimbursement of those costs shall 
be deposited into the account from which the stripping and 
environmental remediation expenses were incurred and 
shall be available for stripping and environmental remedi-
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ation of other vessels to be used for experimental pur-
poses.’’. 
(2) The amendment made by paragraph (1) shall not 
apply with respect to proceeds from the stripping of a ves-
sel under any vessel stripping contract entered into before 
the date of the enactment of this Act. 
(c) CLARIFICATION
OF COVERED EXPERIMENTAL 
PURPOSES.—Such section is further amended by adding 
at the end the following new subsection: 
‘‘(c) USE
FOR
EXPERIMENTAL
PURPOSES
DE-
FINED.—In this section, the term ‘use for experimental 
purposes’ includes use of a vessel in a Navy sink exercise 
or for target purposes.’’. 
SEC. 1013. AUTHORIZATION FOR TRANSFER OF VESSELS 
STRICKEN FROM NAVAL VESSEL REGISTER 
FOR USE AS ARTIFICIAL REEFS. 
(a) AUTHORITY.—Chapter 633 of title 10, United 
States Code, is amended by inserting after section 7306a 
the following new section: 
‘‘§ 7306b. Vessels stricken from Naval Vessel Register: 
transfer by gift or otherwise for use as 
artificial reefs 
‘‘(a) AUTHORITY TO MAKE TRANSFER.—The Sec-
retary of the Navy may transfer, by gift or otherwise, any 
vessel stricken from the Naval Vessel Register to any
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State, Commonwealth, or possession of the United States 
or any municipal corporation or political subdivision there-
of for use as an artificial reef as provided in subsection 
(b). 
‘‘(b) VESSEL TO BE USED AS ARTIFICIAL REEF.—
An agreement for the transfer of a vessel under subsection 
(a) shall require that—
‘‘(1) the transferee use, site, construct, monitor, 
and manage the vessel only as an artificial reef in 
accordance with the requirements of the National 
Fishing Enhancement Act of 1984 (33 U.S.C. 2101 
et seq.), except that the transferee also may use the 
artificial reef to enhance diving opportunities if that 
use does not have an adverse effect on fishery re-
sources; and 
‘‘(2) the transferee shall obtain, and bear all of 
the responsibility for complying with, all applicable 
Federal, State, interstate, and local permits for 
siting, constructing, monitoring, and managing a 
vessel as an artificial reef. 
‘‘(c) ADDITIONAL TERMS.—The Secretary may re-
quire such additional terms in connection with a convey-
ance authorized by this section as the Secretary considers 
appropriate.
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‘‘(d) COST SHARING ON TRANSFERS.—The Secretary 
of the Navy may share with the recipient any of the costs 
associated with transferring a vessel under this section. 
‘‘(e) APPLICATION FOR MORE THAN ONE VESSEL.—
A State, Commonwealth, or possession of the United 
States, or any municipal corporation or political subdivi-
sion thereof, may apply for more than one vessel under 
this section. 
‘‘(f) DEFINITION.—In this section, the term ‘fishery 
resources’ has the meaning given such term in section 
3(14) of the Magnuson-Stevens Fishery Conservation and 
Management Act of 1976 (16 U.S.C. 1802(14)).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 7306a the following new 
item:
‘‘7306b. Vessels stricken from Naval Vessel Register: transfer by gift or other-
wise for use as artificial reefs.’’.
SEC. 1014. PILOT PROGRAM FOR SEALIFT SHIP CONSTRUC-
TION. 
(a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec-
retary of the Navy may establish a pilot program, under 
which the Secretary of the Navy, subject to the availability 
of appropriations, may guarantee loans for—
(1) the construction in a United States ship-
yard of two qualified sealift ships that are to be doc-
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umented under the laws of the United States for use 
in United States-flag commercial service; and 
(2) the acquisition of facilities or equipment 
pertaining to the marine operations of those ships, 
which may include specialized loading equipment. 
(b) CONDITIONS
OF
GUARANTEE.—A guarantee 
under this section is subject to the following conditions: 
(1) MSP.—The owner of the ships for which 
guarantees are issued shall apply for an operating 
agreement with the Secretary of Transportation 
under subtitle B of title XXXV. 
(2) NDF; CHARTER.—If the Secretary of the 
Navy requests, the owner of the ships shall engage 
in negotiations on reasonable terms and conditions 
for—
(A) installation and maintenance of de-
fense features for national defense purposes on 
one or both ships under section 2218 of title 
10, United States Code; and 
(B) a short-term charter to the United 
States Government of at least one ship for 
which a guarantee is issued, for a period of at 
least 60 days prior to entry into commercial 
service, for the purpose of demonstrating the 
military capabilities of the ships.
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(c) PAYMENT OF COST.—The cost of a guarantee 
under this section shall be paid for with amounts made 
available in appropriations Acts. 
(d) PERCENTAGE LIMITATION; TERM.—A guarantee 
under this section may apply—
(1) to up to 87.5 percent of the loan principal; 
and 
(2) for a term ending up to 25 years after deliv-
ery of the second ship. 
(e) AUTHORITIES, PROCEDURES, REQUIREMENTS, 
AND RESTRICTIONS.—The Secretary of the Navy, subject 
to the other provisions of this section—
(1) in implementing this section, may exercise 
authorities that are substantially the same as the 
authorities available to the Secretary of Transpor-
tation under title XI of the Merchant Marine Act, 
1936 (46 App. U.S.C. 1271 et seq.) with respect to 
loan guarantees under that title; 
(2) shall implement this section under proce-
dures, requirements, and restrictions that are sub-
stantially the same as those under which loan guar-
antees are made under that title, including the regu-
lations implementing that title; and 
(3) may establish such additional requirements 
for loan guarantees under this section as the Sec-
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retary determines to be necessary to minimize the 
cost of such guarantees. 
(f) INTERAGENCY AGREEMENT.—The Secretary of 
Transportation shall enter into an interagency agreement 
or other appropriate arrangement with the Secretary of 
the Navy to make available to the Department of the Navy 
such Maritime Administration personnel with expertise in 
vessel construction financing as are necessary to carry out 
the program under this section. 
(g) DEFINITIONS.—In this section: 
(1) COST.—The term ‘‘cost’’, with respect to a 
loan guarantee under this section, has the meaning 
given that term in section 502 of the Congressional 
Budget and Impoundment Control Act of 1974 (2 
U.S.C. 661a). 
(2) QUALIFIED
SEALIFT
SHIP.—The term 
‘‘qualified sealift ship’’ means a roll-on, roll-off ves-
sel that is—
(A) 
militarily 
useful 
for 
additional 
medium- to long-haul strategic sealift capacity; 
(B) designed to carry at least 10,000 tons 
of cargo; and 
(C) capable of operating commercially in 
the foreign commerce of the United States.
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(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of the 
Navy to carry out this section $40,000,000. 
Subtitle C—Reports 
SEC. 1021. REPEAL AND MODIFICATION OF VARIOUS RE-
PORTING REQUIREMENTS APPLICABLE TO 
THE DEPARTMENT OF DEFENSE. 
(a) TITLE 10, UNITED STATES CODE.—Title 10, 
United States Code, is amended as follows: 
(1) Section 113 is amended by striking sub-
section (m). 
(2) Section 117(e) is amended by striking ‘‘each 
month’’ and all that follows through ‘‘subsection 
(d)’’ and inserting ‘‘each quarter submit to the con-
gressional defense committees a report in writing 
containing the results of the most recent joint readi-
ness review under subsection (d)(1)(A)’’. 
(3) Section 127(d) is amended to read as fol-
lows: 
‘‘(d) ANNUAL REPORT.—Not later than December 1 
each year, the Secretary of Defense shall submit to the 
congressional defense committees a report on expenditures 
during the preceding fiscal year under subsections (a) and 
(b).’’. 
(4) Section 127a is amended—
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(A) in subsection (a)—
(i) by striking paragraph (3); and 
(ii) by redesignating paragraph (4) as 
paragraph (3); and 
(B) by striking subsection (d). 
(5) Section 128 is amended by striking sub-
section (d). 
(6) Section 184 is amended by striking sub-
section (b). 
(7) Section 226(a) is amended—
(A) by striking ‘‘December 15’’ and insert-
ing ‘‘January 15’’; and 
(B) by striking ‘‘in the following year’’ in 
paragraph (1) and inserting ‘‘in that year’’. 
(8)(A) Section 228 is amended—
(i) in subsection (a)—
(I) by striking ‘‘MONTHLY’’ in the 
subsection heading and inserting ‘‘QUAR-
TERLY’’; 
(II) by striking ‘‘monthly’’ and insert-
ing ‘‘quarterly’’; and 
(III) by striking ‘‘month’’ and insert-
ing ‘‘fiscal-year quarter’’; and 
(ii) in subsection (c), by striking ‘‘month’’ 
each place it appears and inserting ‘‘quarter’’.
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(B)(i) The heading of such section is amended 
to read as follows: 
‘‘§ 228. Quarterly reports on allocation of funds with-
in operation and maintenance budget 
subactivities’’. 
(ii) The item relating to section 228 in the table 
of sections at the beginning of chapter 9 is amended 
to read as follows:
‘‘228. Quarterly reports on allocation of funds within operation and maintenance 
budget subactivities.’’.
(9)(A) Section 484 is repealed. 
(B) The table of sections at the beginning of 
such chapter is amended by striking the item relat-
ing to section 484. 
(10)(A) Section 520c is amended—
(i) by striking subsection (b); 
(ii) by striking ‘‘(a) PROVISION OF MEALS 
AND REFRESHMENTS.—’’; and 
(iii) by striking the heading for such sec-
tion and inserting the following: 
‘‘§ 520c. Recruiting functions: provision of meals and 
refreshments’’. 
(B) The item relating to such section in the 
table of sections at the beginning of chapter 31 is 
amended to read as follows:
‘‘520c. Recruiting functions: provision of meals and refreshments.’’.
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(11) Section 983(e)(1) is amended by striking 
‘‘and to Congress’’. 
(12) Section 1060 is amended by striking sub-
section (d). 
(13) Section 1130 is amended—
(A) in subsection (a), by striking ‘‘the 
other determinations necessary to comply with 
subsection (b)’’ and inserting ‘‘respond with a 
detailed description of the rationale supporting 
the determination’’; and 
(B) by striking subsection (b). 
(14) Section 1557 is amended by striking sub-
section (e). 
(15) Section 1563 is amended—
(A) in subsection (a), by striking ‘‘the 
other determinations necessary to comply with 
subsection (b)’’ and inserting ‘‘respond with a 
detailed description of the rationale supporting 
the determination’’; and 
(B) by striking subsection (b). 
(16) Section 2010 is amended by striking sub-
section (b). 
(17) Section 2166 is amended—
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(A) in subsection (e)(5), by inserting ‘‘and 
to Congress’’ after ‘‘to the Secretary of De-
fense’’; and 
(B) by striking subsection (i). 
(18) Section 2208(j)(2) is amended by striking 
‘‘and notifies Congress regarding the reasons for the 
waiver’’. 
(19) Section 2216(i) is amended—
(A) by striking ‘‘QUARTERLY REPORTS.—
(1) Not later than 15 days after the end of 
each calendar quarter’’ and inserting ‘‘ANNUAL 
REPORT.—(1) Not later than 60 days after the 
end of each fiscal year’’; and 
(B) by striking ‘‘quarter’’ in subpara-
graphs (A), (B), and (C) of paragraph (1) and 
inserting ‘‘fiscal year’’. 
(20) Section 2224(e) is amended by inserting 
‘‘through 2007’’ after ‘‘Each year’’. 
(21) Section 2255(b)—
(A) by striking paragraph (2); and 
(B) by striking ‘‘(1)’’ after ‘‘(b) EXCEP-
TION.—’’. 
(22) Section 2281 is amended by striking sub-
section (d). 
(23)(A) Section 2282 is repealed.
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(B) The table of sections at the beginning of 
chapter 136 is amended by striking the item relating 
to section 2282. 
(24) Section 2323 is amended—
(A) in subsection (d)—
(i) by striking ‘‘Defense—’’ and all 
that follows through ‘‘the extent’’ and in-
serting ‘‘Defense to the extent’’; 
(ii) by striking ‘‘; and’’ and inserting 
a period; and 
(iii) by striking paragraph (2); and 
(B) by striking subsection (i). 
(25) Section 2327(c)(1) is amended—
(A) in subparagraph (A), by striking 
‘‘after the date on which such head of an agen-
cy submits to Congress a report on the con-
tract’’ and inserting ‘‘if in the best interests of 
the Government’’; 
(B) in subparagraph (B), by striking ‘‘A 
report under subparagraph (A)’’ and inserting 
‘‘The Secretary shall maintain records of each 
contract entered into by reason of subpara-
graph (A). Such records’’; and 
(C) by striking subparagraph (C).
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(26) Section 2350j is amended by striking sub-
sections (e) and (g). 
(27) Section 2367 is amended by striking sub-
section (d). 
(28) Section 2371 is amended by striking sub-
section (h). 
(29) Section 2374a is amended by striking sub-
section (e). 
(30) Section 2410m(c) is amended—
(A) by striking ‘‘REPORTING REQUIRE-
MENT.—Each year’’ and inserting ‘‘ANNUAL 
REPORT.—Not later than 60 days after the end 
of each fiscal year’’; 
(B) by inserting ‘‘at the end of such fiscal 
year’’ in paragraph (1) before the period; 
(C) by striking ‘‘during the year preceding 
the year in which the report is submitted’’ in 
paragraph (2) and inserting ‘‘under this section 
during that fiscal year’’; 
(D) by striking ‘‘in such preceding year’’ 
in paragraph (3) and inserting ‘‘under this sec-
tion during that fiscal year’’; and 
(E) by striking ‘‘in such preceding year’’ in 
paragraph (4) and inserting ‘‘under this section 
during that fiscal year’’.
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(31) Section 2433 is amended—
(A) in subsection (d)—
(i) in paragraphs (1) and (2), by 
striking ‘‘, or by at least 25 percent,’’; and 
(ii) in paragraph (3)—
(I) by striking ‘‘or by at least 25 
percent,’’ both places it appears; and 
(II) by inserting a comma after 
‘‘paragraph (1)’’; and 
(B) in subsection (e)—
(i) by striking paragraph (2); 
(ii) by redesignating paragraph (3) as 
paragraph (2); 
(iii) in paragraph (2), as so redesig-
nated, by striking ‘‘or if a’’ in the first 
sentence and all that follows through 
‘‘paragraph (2),’’; and 
(iv) by designating the second sen-
tence of such paragraph as paragraph (3) 
and in that paragraph—
(I) by inserting ‘‘under para-
graph (2)’’ after ‘‘The prohibition’’; 
and 
(II) by striking ‘‘the date—’’ and 
all that follows through ‘‘subsection
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(d).’’ and inserting ‘‘the date on which 
Congress receives the Selected Acqui-
sition Report under paragraph (1) 
with respect to that program.’’. 
(32) Section 2457 is amended by striking sub-
section (d). 
(33) Section 2493 is amended by striking sub-
section (g). 
(34) Section 2515 is amended by striking sub-
section (d). 
(35) Section 2521 is amended by striking sub-
section (e). 
(36) Section 2536 is amended—
(A) in subsection (b)(2)—
(i) by striking ‘‘notify Congress’’ in 
the first sentence and inserting ‘‘maintain 
a record’’; and 
(ii) by striking the second sentence 
and inserting the following: ‘‘The records 
maintained under the preceding sentence 
with respect to a waiver shall include a jus-
tification in suport of the decision to grant 
the waiver and shall be retrievable for any 
particular waiver or for waivers during any 
period of time.’’; and
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(B) by adding at the end the following new 
subsection: 
‘‘(d) The Secretary of Defense shall maintain an ac-
count of actions relating to the award of contracts to a 
prime contractor. The Secretary of Defense shall include 
in such accounts the reasons for exercising the awards and 
the work expected to be performed.’’. 
(37) Section 2541d is amended—
(A) by striking subsection (b); and 
(B) in subsection (a), by striking ‘‘(a)’’ 
and all that follows through ‘‘The Secretary of 
Defense’’ and inserting ‘‘The Secretary of De-
fense’’. 
(38) Section 2561 is amended by striking sub-
sections (c), (d) and (f). 
(39) Section 2563(c)(2) is amended by striking 
‘‘and notifies Congress regarding the reasons for the 
waiver’’. 
(40) Section 2645 is amended by striking sub-
sections (d) and (g). 
(41) Section 2667a(c)(2) is amended by strik-
ing ‘‘45 days’’ and inserting ‘‘14 days’’. 
(42) Section 2676(d) is amended by striking 
‘‘21 days’’ and inserting ‘‘14 days’’.
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(43) Section 2680 is amended by striking sub-
section (e). 
(44) Section 2696 is amended by striking sub-
sections (c) and (d). 
(45) Section 2703(c)(2) is amended—
(A) by striking subparagraph (B); 
(B) by striking ‘‘unless the Secretary—’’ 
and all that follows through ‘‘determines that’’ 
and inserting ‘‘unless the Secretary determines 
that’’; and 
(C) by redesignating clauses (i), (ii), and 
(iii) as subparagraphs (A), (B), and (C), re-
spectively, and realigning such subparagraphs 
(as so redesignated) two ems from the left mar-
gin. 
(46)(A) Section 2723 is repealed. 
(B) The table of sections at the beginning of 
chapter 161 is amended by striking the item relating 
to section 2723. 
(47) Section 2803(b) is amended by striking 
‘‘21–day period’’ and inserting ‘‘seven-day period’’. 
(48) Section 2804(b) is amended by striking 
‘‘21–day period’’ and inserting ‘‘14–day period’’. 
(49) Section 2805(b) is amended—
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(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘$750,000’’ and inserting ‘‘$1,000,000’’; and 
(B) in paragraph (2), by striking ‘‘21–day 
period’’ and inserting ‘‘seven-day period’’’. 
(50) Section 2807 is amended—
(A) in subsection (b)—
(i) by striking ‘‘$500,000’’ and insert-
ing ‘‘$1,000,000’’; and 
(ii) by striking ‘‘not less than 21 
days’’; and 
(B) in subsection (c)(2), by striking ‘‘21 
days’’ and inserting ‘‘14 days’’. 
(51) Section 2809(f)(2) is amended by striking 
‘‘21 calendar days’’ and inserting ‘‘14 days’’. 
(52) Section 2812(c)(1)(B) is amended by 
striking ‘‘21 days’’ and inserting ‘‘14 days’’. 
(53) Section 2813(c) is amended by striking 
‘‘30–day period’’ and inserting ‘‘21–day period’’. 
(54) Section 2825 is amended—
(A) by striking ‘‘21 days’’ in the last sen-
tence of subsection (b)(1)(B) and inserting ‘‘14 
days’’; and 
(B) by striking ‘‘21 days’’ in subsection 
(c)(1)(D) and inserting ‘‘14 days’’. 
(55) Section 2826 is amended—
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(A) 
by 
striking 
‘‘(a) 
LOCAL
COM-
PARABILITY.—’’; and 
(B) by striking subsection (b). 
(56) Section 2827(b)(2) is amended by striking 
‘‘21 days’’ and inserting ‘‘14 days’’. 
(57) Section 2836(f)(2) is amended by striking 
‘‘21 calendar days’’ and inserting ‘‘14 days’’. 
(58) Section 2837(c)(2) is amended by striking 
‘‘21–day period’’ and inserting ‘‘14–day period’’. 
(59) Section 2854(b) is amended by striking 
‘‘21–day period’’ and inserting ‘‘seven-day period’’. 
(60) Section 2854a(c)(2) is amended by strik-
ing ‘‘21 calendar days’’ and inserting ‘‘14 days’’. 
(61) Section 2865 is amended—
(A) in subsection (e)—
(i) by striking ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(ii) by striking paragraph (2); and 
(B) by striking subsection (f). 
(62) Section 2866(c) is amended—
(A) by striking ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by striking paragraph (2). 
(63) Section 2867(c) is amended by striking 
‘‘21–day period’’ and inserting ‘‘14–day period’’.
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(64) Section 2875(e) is amended by striking 
‘‘30–day period’’ and inserting ‘‘14–day period’’. 
(65) Section 2883(f) is amended by striking 
‘‘30–day period’’ and inserting ‘‘14–day period’’. 
(66) Section 2902(g) is amended—
(A) by striking paragraph (2); and 
(B) by striking ‘‘(1)’’ after ‘‘(g)’’. 
(67) Section 4342(h) is amended by striking 
‘‘Secretary of the Army’’ and inserting ‘‘Super-
intendent’’. 
(68) Section 4357(c) is amended is amended by 
striking ‘‘the expiration of 30 days following’’. 
(69) Section 6954(f) is amended by striking 
‘‘Secretary of the Navy’’ and inserting ‘‘Super-
intendent of the Naval Academy’’. 
(70) Section 6975(c) is amended is amended by 
striking ‘‘the expiration of 30 days following’’. 
(71) Section 7049(c) is amended—
(A) by striking ‘‘CERTIFICATION’’ in the 
subsection heading and inserting ‘‘DETERMINA-
TION’’; and 
(B) by striking ‘‘, and certifies to’’ and all 
that follows through ‘‘House of Representa-
tives,’’.
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(72) Section 9342(h) is amended by striking 
‘‘Secretary of the Air Force’’ and inserting ‘‘Super-
intendent’’. 
(73) Section 9356(c) is amended is amended by 
striking ‘‘the expiration of 30 days following’’. 
(74) Section 12302—
(A) in subsection (b), by striking the last 
sentence; and 
(B) by striking subsection (d). 
(75)(A) Section 16137 is repealed. 
(B) The table of sections at the beginning of 
chapter 1606 is amended by striking the item relat-
ing to section 16137. 
(b) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1991.—Part B of title XXIX of the Na-
tional Defense Authorization Act for Fiscal Year 1991 
(Public Law 101–510; 10 U.S.C. 2687 note) is amended 
as follows: 
(1) Section 2921 is amended—
(A) in subsection (f)(1), by striking ‘‘30 
days’’ and inserting ‘‘14 days’’; and 
(B) in subsection (g), by striking ‘‘30 
days’’ in paragraphs (1) and (2) and inserting 
‘‘14 days’’.
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(2) Section 2926 is amended by striking sub-
section (g). 
(c) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEARS 1992 AND 1993.—The National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public 
Law 102–190) is amended as follows: 
(1) Section 734 (10 U.S.C. 1074 note) is 
amended by striking subsection (c). 
(2) Section 2868(a) (10 U.S.C. 2802 note) is 
amended by striking ‘‘The Secretary of Defense’’ 
and all that follows through ‘‘is to be authorized’’ 
and inserting ‘‘Not later than 30 days after the date 
on which a decision is made selecting the site or 
sites for the permanent basing of a new weapon sys-
tem, the Secretary of Defense shall submit to Con-
gress’’. 
(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1993.—The National Defense Authoriza-
tion Act for Fiscal Year 1993 (Public Law 102–484) is 
amended as follows: 
(1) Section 324 (10 U.S.C. 2701 note) is 
amended—
(A) by striking ‘‘(a) SENSE
OF
CON-
GRESS.—’’; and 
(B) by striking subsection (b).
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(2) Section 1082(b)(1) (10 U.S.C. 113 note) is 
amended by striking ‘‘the Secretary of Defense—’’ 
and all that follows and inserting ‘‘the Secretary of 
Defense determines that it is in the national security 
interests of the United States for the military de-
partments to do so.’’. 
(e) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1995.—Section 721 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 10 U.S.C. 1074 note) is amended by striking sub-
section (h). 
(f) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1997.—The National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201) is 
amended as follows: 
(1) Section 324 (10 U.S.C. 2706 note) is 
amended by striking subsection (c). 
(2) Section 1065(b) (10 U.S.C. 113 note) is 
amended—
(A) by striking ‘‘(1)’’ before ‘‘Notwith-
standing’’; and 
(B) by striking paragraph (2). 
(g) DEPARTMENT
OF DEFENSE APPROPRIATIONS 
ACT, 1997.—Section 8009 of the Department of Defense 
Appropriations Act, 1997 (as contained in section 101(b)
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of Public Law 104–208; 110 Stat. 3009-89), is amended 
by striking ‘‘, unless the congressional defense committees 
have been notified at least thirty days in advance of the 
proposed contract award’’. 
(h) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1998.— Section 349 of the National De-
fense Authorization Act for Fiscal Year 1998 (Public Law 
105–85; 10 U.S.C. 2702 note) is amended by striking sub-
section (e). 
(i) STROM THURMOND NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 1999.—The Strom 
Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (Public Law 105–261) is amended as follows: 
(1) Section 745(e) (10 U.S.C. 1071 note) is 
amended—
(A) by striking ‘‘(1)’’ before ‘‘The Sec-
retary of Defense’’; and 
(B) by striking paragraph (2). 
(2) Section 1223 (22 U.S.C. 1928 note) is re-
pealed. 
(j) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2000.—The National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65) is 
amended as follows:
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(1) Section 212 (10 U.S.C. 2501 note) is 
amended by striking subsection (c). 
(2) Section 724 (10 U.S.C. 1092 note) is 
amended by striking subsection (e). 
(4) Section 1039 (10 U.S.C. 113 note) is 
amended by striking subsection (b). 
(k) MILITARY CONSTRUCTION APPROPRIATIONS ACT, 
2001.—Section 125 of the Military Construction Appro-
priations Act, 2001 (division A of Public Law 106–246; 
114 Stat. 517), is repealed. 
(l) DEPARTMENT
OF DEFENSE APPROPRIATIONS 
ACT, 2001.—Section 8019 of the Department of Defense 
Appropriations Act, 2001 (Public Law 106–259; 114 Stat. 
678; 10 U.S.C. 2687 note), is amended by striking ‘‘of 
Congress:’’ and all that follows through ‘‘this provision’’ 
and inserting ‘‘of Congress’’. 
(m) FLOYD D. SPENCE NATIONAL DEFENSE AU-
THORIZATION ACT
FOR FISCAL YEAR 2001.—Section 
1006 of the Floyd D. Spence National Defense Authoriza-
tion Act for Fiscal Year 2001 (as enacted into law by Pub-
lic Law 106–398; 114 Stat. 1654A–247; 10 U.S.C. 2226 
note), is amended by striking subsection (c). 
(n) DEPARTMENT
OF DEFENSE APPROPRIATIONS 
ACT, 2002.—Section 8009 of the Department of Defense 
Appropriations Act, 2002 (division A of Public Law 107–
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117; 115 Stat. 2249; 10 U.S.C. 401 note), is amended 
by striking ‘‘, and these obligations shall be reported to 
the Congress’’. 
SEC. 1022. REPORT ON OPERATION IRAQI FREEDOM. 
(a) REPORT REQUIRED.—Not later than June 15, 
2004, the Secretary of Defense shall submit to the Com-
mittee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives 
a report on Operation Iraqi Freedom. The Secretary shall 
submit to those committees a preliminary report on the 
conduct of those hostilities not later than January 15, 
2004. 
(b) DISCUSSION OF ACCOMPLISHMENTS AND SHORT-
COMINGS.—The report (and the preliminary report, to the 
extent feasible) shall contain a discussion, with a par-
ticular emphasis on accomplishments and shortcomings, of 
the following matters: 
(1) The military objectives of the multinational 
coalition. 
(2) The military strategy of the multinational 
coalition to achieve those military objectives and how 
the military strategy contributed to the achievement 
of those objectives. 
(3) The deployment of United States forces and 
the transportation of supplies to the theater of oper-
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ations, including an assessment of airlift, sealift, 
afloat 
prepositioning 
ships, 
and 
Maritime 
Prepositioning Squadron ships. 
(4) The conduct of military operations. 
(5) The use of special operations forces, includ-
ing operational and intelligence uses classified under 
special access procedures. 
(6) The use and performance of United States 
military equipment, weapon systems, and munitions 
(including items classified under special access pro-
cedures) and an analysis of—
(A) any equipment or capabilities that 
were in research and development and if avail-
able could have been used in the theater of op-
erations; and 
(B) any equipment or capabilities that 
were available and could have been used but 
were not introduced into the theater of oper-
ations. 
(7) The scope of logistics support, including 
support from other nations. 
(8) The acquisition policies and processes used 
to support the forces in the theater of operations. 
(9) The personnel management actions taken to 
support the forces in the theater of operations.
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(10) The effectiveness of reserve component 
forces, including a discussion of each of the following 
matters: 
(A) The readiness and activation of such 
forces. 
(B) The decisionmaking process regarding 
both activation of reserve component forces and 
deployment of those forces to the theater of op-
erations. 
(C) The post-activation training received 
by such forces. 
(D) The integration of forces and equip-
ment of reserve component forces into the ac-
tive component forces. 
(E) The use and performance of the re-
serve component forces in operations in the the-
ater of operations. 
(F) The use and performance of such 
forces at duty stations outside the theater of 
operations. 
(11) The role of the law of armed conflict in 
the planning and execution of military operations by 
United States forces and the other coalition forces 
and the effects on operations of Iraqi compliance or 
noncompliance with the law of armed conflict, in-
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cluding a discussion regarding each of the following 
matters: 
(A) Use of Iraqi civilians as human 
shields. 
(B) Collateral damage and civilian casual-
ties. 
(C) Treatment of prisoners of war. 
(D) Repatriation of prisoners of war. 
(E) Use of ruses and acts of perfidy. 
(F) War crimes. 
(G) Environmental terrorism. 
(H) Conduct of neutral nations. 
(12) The actions taken by the coalition forces 
in anticipation of, and in response to, Iraqi acts of 
environmental terrorism. 
(13) The actions taken by the coalition forces 
in anticipation of possible Iraqi use of weapons of 
mass destruction. 
(14) Evidence of Iraqi weapons of mass de-
struction programs and Iraqi preparations for the 
use of such weapons. 
(15) The contributions of United States and co-
alition intelligence and counterintelligence systems 
and personnel, including contributions regarding 
bomb damage assessments and particularly including
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United States tactical intelligence and related activi-
ties (TIARA) programs and the Joint Military Intel-
ligence Program (JMIP). 
(16) Command, control, communications, and 
operational security of the coalition forces as a 
whole, and command, control, communications, and 
operational security of the United States forces. 
(17) The rules of engagement for the coalition 
forces. 
(18) The actions taken to reduce the casualties 
among coalition forces caused by the fire of such 
forces. 
(19) The role of supporting combatant com-
mands and Defense Agencies of the Department of 
Defense. 
(20) The policies and procedures relating to the 
media, including the use of embedded media. 
(21) The assignment of roles and missions to 
the United States forces and other coalition forces 
and the performance of those forces in carrying out 
their assigned roles and missions. 
(22) The preparedness, including doctrine and 
training, of the United States forces. 
(23) The acquisition of foreign military tech-
nology from Iraq, and any compromise of military
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technology of the United States or other countries in 
the multinational coalition. 
(24) The problems posed by Iraqi possession 
and use of equipment produced in the United States 
and other coalition nations. 
(25) The use of deception by Iraqi forces and 
by coalition forces. 
(26) The military criteria used to determine 
when to progress from one phase of military oper-
ations to another phase of military operations. 
(27) The role, if any, of the Status of Re-
sources and Training System (SORTS) in deter-
mining which units would be employed during the 
operation. 
(28) The role of the Coast Guard. 
(29) The direct and indirect cost of military op-
erations, including an assessment of the total incre-
mental expenditures made by the Department of De-
fense as a result of Operation Iraqi Freedom. 
(c) CASUALTY STATISTICS.—The report (and the pre-
liminary report, to the extent feasible) shall also contain—
(1) the number of military and civilian casual-
ties sustained by coalition nations; and
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(2) estimates of such casualties sustained by 
Iraq and by nations not directly participating in hos-
tilities during Operation Iraqi Freedom. 
(d) CLASSIFICATION OF REPORTS.—The Secretary of 
Defense shall submit both the report and the preliminary 
report in a classified form and an unclassified form. 
SEC. 1023. REPORT ON DEPARTMENT OF DEFENSE POST-
CONFLICT ACTIVITIES IN IRAQ. 
(a) REPORT REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress a report on the activi-
ties of the Department of Defense in post-conflict Iraq. 
(b) REPORT ELEMENTS.—The report shall discuss 
the range of infrastructure reconstruction, civil adminis-
tration, humanitarian assistance, interim governance, and 
political development activities undertaken in Iraq by offi-
cials of the Department and by those civilians reporting 
to the Secretary of Defense and the missions undertaken 
in Iraq by United States military forces during the post-
conflict period. In particular, the report shall include a 
discussion of the following: 
(1) The evolution of the organizational struc-
ture of the civilian groups reporting to the Sec-
retary, including the Office of Reconstruction and 
Humanitarian Assistance, on issues of Iraqi post-
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conflict administration and reconstruction and the 
factors influencing that evolution. 
(2) The relationship of the Department of De-
fense with other United States departments and 
agencies involved in post-conflict administration and 
reconstruction planning and execution in Iraq. 
(3) The relationship of Department of Defense 
entities, including the Office of Reconstruction and 
Humanitarian Assistance, with intergovernmental 
and nongovernmental organizations contributing to 
the reconstruction and governance efforts. 
(4) Progress made to the date of the report 
in—
(A) rebuilding Iraqi infrastructure; 
(B) providing for the humanitarian needs 
of the Iraqi people; 
(C) reconstituting the Iraqi governmental 
bureaucracy and its provision of services; and 
(D) 
developing 
mechanisms 
of 
fully 
transitioning Iraq to representative self-govern-
ment. 
(5) Progress made to the date of the report by 
Department of Defense civilians and military per-
sonnel in accounting for any Iraqi weapons of mass 
destruction and associated weapons capabilities.
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(6) Progress made to the date of the report by 
United States military personnel in providing secu-
rity in Iraq and in transferring security functions to 
a reconstituted Iraqi police force and military. 
(7) The Secretary’s assessment of the scope of 
the ongoing needed commitment of United States 
military forces and of the remaining tasks to be 
completed by Department of Defense civilian per-
sonnel in the governance and reconstruction areas, 
including an estimate of the total expenditures the 
Department of Defense expects to make for activi-
ties in post-conflict Iraq.
SEC. 1024. REPORT ON DEVELOPMENT OF MECHANISMS TO 
BETTER 
CONNECT 
DEPARTMENT 
OF 
DE-
FENSE SPACE CAPABILITIES TO THE WAR 
FIGHTER. 
Not later than March 15, 2004, the Secretary of De-
fense shall submit to the congressional defense committees 
a report on development and implementation of systematic 
mechanisms to provide for integrating into activities of the 
United States Strategic Command planning and require-
ments for connecting space capabilities of that command 
with the war fighter.
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Subtitle D—Procurement of De-
fense 
Biomedical 
Counter-
measures 
SEC. 1031. RESEARCH AND DEVELOPMENT OF DEFENSE 
BIOMEDICAL COUNTERMEASURES. 
(a) IN GENERAL.—The Secretary of Defense (in this 
section referred to as the ‘‘Secretary’’) shall carry out a 
program to accelerate the research, development and pro-
curement of biomedical countermeasures, including but 
not limited to therapeutics and vaccines, for the protection 
of the Armed Forces from attack by one or more biologi-
cal, chemical, radiological, or nuclear agents. 
(b) INTERAGENCY COOPERATION.—(1) In carrying 
out the program under subsection (a), the Secretary may 
enter into interagency agreements and other collaborative 
undertakings with other Federal agencies. Under such 
agreements and undertakings, the participating agencies 
are authorized to provide funds and receive funds from 
other participating agencies. 
(2) The Secretary, in consultation with the Secretary 
of Health and Human Services and the Secretary of 
Homeland Security, shall ensure that the activities of the 
Department of Defense in carrying out the program are 
coordinated with, complement, and do not unnecessarily 
duplicate activities of the Department of Health and
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Human Services or the Department of Homeland Secu-
rity. 
(c) EXPEDITED PROCUREMENT AUTHORITY.—(1)(A) 
For any procurement by the Secretary, of property or 
services for use (as determined by the Secretary) in per-
forming, administering, or supporting biomedical counter-
measures research or development, the amount specified 
in section 4(11) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 403(11)), as applicable pursuant to 
section 302A(a) of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 252a(a)), shall be 
deemed to be $25,000,000 in the administration, with re-
spect to such procurement, of sections 302A(b) (41 U.S.C. 
252a(b)) and 303(g)(1)(A) (42 U.S.C. 253(g)(1)(A)) of 
the Federal Property and Administrative Services Act of 
1949 and the regulations implementing those sections. 
(B) The Secretary shall institute appropriate internal 
controls for use of the authority under subparagraph (A), 
including requirements for documenting the justification 
for each use of such authority. 
(2)(A) For a procurement described in paragraph 
(1), the amount specified in subsections (c), (d), and (f) 
of section 32 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 428) shall be deemed to be $15,000 in
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the administration of that section with respect to such 
procurement. 
(B) The Secretary shall institute appropriate internal 
controls for each use of the authority under subparagraph 
(A) for a procurement greater than $2,500. 
(d) FACILITIES AUTHORITY.—(1) The Secretary may 
acquire, lease, construct, improve, renovate, remodel, re-
pair, operate, and maintain laboratories, other research fa-
cilities and equipment, and other real or personal property 
that the Secretary determines necessary for carrying out 
the program under this section. The authority under this 
paragraph is in addition to any other authority under law. 
(2) Nothing in this section shall be construed to au-
thorize the Secretary to acquire, lease, construct, improve, 
renovate, remodel, repair, operate, or maintain facilities 
having general utility. 
(e) AUTHORITY
FOR PERSONAL SERVICES CON-
TRACTS.—The authority provided by section 1091 of title 
10, United States Code, for personal services contracts to 
carry out health care responsibilities in medical treatment 
facilities of the Department of Defense shall also be avail-
able, subject to the same terms and conditions, for per-
sonal services contracts to carry out research and develop-
ment activities under this section. The number of individ-
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uals whose personal services are obtained under this sub-
section may not exceed 30 at any time. 
(f) STREAMLINED
PERSONNEL
AUTHORITY.—(1) 
Without regard to any provision of title 5, United States 
Code, governing appointments in the competitive service, 
and without regard to any provision of chapter 51, or sub-
chapter III of chapter 43, of such title relating to classi-
fication and General Schedule pay rates, the Secretary 
may appoint professional and technical employees, not to 
exceed 30 such employees at any time, to positions in the 
Department of Defense to carry out research and develop-
ment under the program under this section. The authority 
under this paragraph is in addition to any other authority 
under law. 
(2) The Secretary may use the authority under para-
graph (1) only upon a determination by the Secretary that 
use of such authority is necessary to accelerate the re-
search and development under the program. 
(3) The Secretary shall institute appropriate internal 
controls for each use of the authority under paragraph (1). 
SEC. 
1032. 
PROCUREMENT 
OF 
DEFENSE 
BIOMEDICAL 
COUNTERMEASURES. 
(a) DETERMINATION OF MATERIAL THREATS.—(1) 
The Secretary of Defense (in this section referred to as 
the ‘‘Secretary’’), in consultation with the Secretary of
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Health and Human Services and the Secretary of Home-
land Security shall on an ongoing basis—
(A) assess current and emerging threats of use 
of biological, chemical, radiological, and nuclear 
agents; and 
(B) identify, on the basis of such assessment, 
those agents that present a material risk of use 
against the Armed Forces. 
(2) The Secretary, in consultation with the Secretary 
of Health and Human Services and the Secretary of 
Homeland Security, shall on an ongoing basis—
(A) assess the potential consequences to the 
health of members of the Armed Forces of use 
against the Armed Forces of the agents identified 
under paragraph (1)(B); and 
(B) identify, on the basis of such assessment, 
those agents for which countermeasures are nec-
essary to protect the health of members of the 
Armed Forces. 
(b) ASSESSMENT
OF AVAILABILITY
AND APPRO-
PRIATENESS OF COUNTERMEASURES.—The Secretary, in 
consultation with the Secretary of Health and Human 
Services and the Secretary of Homeland Security, shall on 
an ongoing basis assess the availability and appropriate-
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ness of specific countermeasures to address specific 
threats identified under subsection (a). 
(c) SECRETARY’S DETERMINATION
OF COUNTER-
MEASURES APPROPRIATE FOR PROCUREMENT.—(1) The 
Secretary, in accordance with paragraph (2), shall on an 
ongoing basis identify specific countermeasures that the 
Secretary determines to be appropriate for procurement 
for the Department of Defense stockpile of biomedical 
countermeasures. 
(2) The Secretary may not identify a specific counter-
measure under paragraph (1) unless the Secretary deter-
mines that—
(A) the countermeasure is a qualified counter-
measure; and 
(B) it is reasonable to expect that producing 
and delivering, within 5 years, the quantity of that 
countermeasure required to meet the needs of the 
Department (as determined by the Secretary) is fea-
sible. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘qualified countermeasure’’ 
means a biomedical countermeasure—
(A) that is approved under section 505(a) 
of the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 355) or licensed under section 351
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of the Public Health Service Act (42 U.S.C. 
262), or that is approved under section 515 or 
cleared under section 510(k) of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 360e 
and 360) for use as such a countermeasure to 
a biological, chemical, radiological, or nuclear 
agent identified as a material threat under sub-
section (a); or 
(B) with respect to which the Secretary, in 
consultation with the Secretary of Health and 
Human Services, makes a determination that 
sufficient and satisfactory clinical experience or 
research data (including data, if available, from 
preclinical and clinical trials) exists to support 
a reasonable conclusion that the product will, 
not later than 5 years after the date on which 
the Secretary identifies the product under sub-
section (c)(1), qualify for such approval or li-
censing for use as such a countermeasure. 
(2) The term ‘‘biomedical countermeasure’’ 
means a drug (as defined in section 201(g)(1) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321(g)(1))), device (as defined in section 201(h) of 
the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 321(h))), or biological product (as defined in
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section 351(i) of the Public Health Service Act (42 
U.S.C. 262(i)) that is—
(A) used to treat, identify, or prevent harm 
from any biological, chemical, radiological, or 
nuclear agent that may cause a military health 
emergency affecting the Armed Forces; or 
(B) used to treat, identify, or prevent 
harm from a condition that may result in ad-
verse health consequences or death and may be 
caused by administering a drug or biological 
product that is used as described in subpara-
graph (A). 
(e) FUNDING.—(1) Of the amount authorized to be 
appropriated for the Department of Defense and available 
within the transfer authority established under section 
1001 of this Act for fiscal year 2004 and for each fiscal 
year thereafter, such sums are authorized as may be nec-
essary for the costs incurred by the Secretary in the pro-
curement of countermeasures under this section, subject 
to paragraph (2). 
(2) Amounts authorized to be appropriated under 
paragraph (1) shall not be available to pay—
(A) costs for the purchase of vaccines under 
procurement contracts entered into before January 
1, 2003;
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(B) costs under new contracts, or costs of new 
obligations under contracts previously entered into, 
for procurement of a countermeasure after the date 
of a determination under subsection (c)(2)(D) that 
the countermeasure does have a significant commer-
cial market other than as a biomedical counter-
measure; or 
(C) administrative costs. 
SEC. 1033. AUTHORIZATION FOR USE OF MEDICAL PROD-
UCTS IN EMERGENCIES. 
(a) USE OF MEDICAL PRODUCTS AUTHORIZED.—
During the period in which a declaration of emergency 
under subsection (b) is in effect, the Secretary of Defense, 
in accordance with this section, may authorize the use on 
members of the Armed Forces of a drug or device intended 
solely for use in an actual or potential emergency. 
(b) DECLARATION OF EMERGENCY.—(1) A declara-
tion of emergency referred to in subsection (a) is a dec-
laration by the Secretary of Defense that there exists a 
military emergency, or a significant potential for a mili-
tary emergency, involving a heightened risk to the Armed 
Forces of attack by one or more biological, chemical, radi-
ological, or nuclear agents. 
(2) Subject to paragraph (3), the period during which 
a declaration of emergency under this subsection is in ef-
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fect begins upon the making of the declaration and ends 
upon the first to occur of the following events: 
(A) The making of a determination by the Sec-
retary that the military emergency, or the significant 
potential for a military emergency, has ceased to 
exist. 
(B) The expiration of the one-year period begin-
ning on the date on which the declaration of emer-
gency is made. 
(3) Before the expiration of the period during which 
a declaration of emergency is in effect, the Secretary may 
declare one or more extensions of that declaration of emer-
gency. In such a case, the date on which the most recent 
extension was declared shall be treated for purposes of 
subsection (2)(B) as the date on which the declaration of 
emergency is made. 
(c) CRITERIA FOR ISSUANCE OF AUTHORIZATION.—
The Secretary, in consultation with the Secretary of 
Health and Human Services, may use the authority under 
subsection (a) with respect to a biomedical counter-
measure only if the Secretary make a determination 
that—
(1) an agent to which a declaration of emer-
gency under subsection (b) relates can cause a seri-
ous or life-threatening disease or condition;
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(2) based on the totality of scientific evidence 
available to the Secretary, including data from ade-
quate and well-controlled clinical trials, if available, 
it is reasonable to believe that—
(A) such countermeasure may be effective 
in detecting, diagnosing, treating, or preventing 
such disease or condition; or 
(B) the known and potential benefits of 
such countermeasure, when used to detect, di-
agnose, treat, or prevent such disease or condi-
tion, outweigh the known and potential risks of 
such countermeasure; 
(3) no adequate, approved, and available alter-
native exists to such countermeasure for detecting, 
diagnosing, treating, or preventing such disease or 
condition; and 
(4) such other criteria as the Secretary may by 
regulation prescribe are satisfied. 
(d) SCOPE OF AUTHORIZATION.—For each use of the 
authority under subsection (a), the Secretary, in consulta-
tion with the Secretary of Health and Human Services, 
shall—
(1) specify each disease or condition that the bi-
ological countermeasure may be used to detect, diag-
nose, treat, or prevent; and
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(2) set forth each determination under sub-
section (c) with respect to that countermeasure and 
the basis for each such determination. 
(e) CONDITION.—In carrying out this section, the 
Secretary shall ensure compliance with section 1107 of 
title 10, United States Code, and section 731(a)(3) of the 
Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2071; 
10 U.S.C. 1107 note). 
Subtitle E—Other Matters 
SEC. 1041. CODIFICATION AND REVISION OF DEFENSE 
COUNTERINTELLIGENCE POLYGRAPH PRO-
GRAM AUTHORITY. 
(a) CODIFICATION.—(1) Chapter 21 of title 10, 
United States Code, is amended by inserting at the end 
of subchapter I (after the section added by section 
805(b)(1) of this Act) the following new section: 
‘‘§ 427. Counterintelligence polygraph program 
‘‘(a) AUTHORITY FOR PROGRAM.—The Secretary of 
Defense may carry out a program for the administration 
of counterintelligence polygraph examinations to persons 
described in subsection (b). The program shall be based 
on Department of Defense Directive 5210.48, dated De-
cember 24, 1984.
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‘‘(b) PERSONS COVERED.—Except as provided in 
subsection (c), the following persons whose duties involve 
access to information that has been classified at the level 
of top secret or designated as being within a special access 
program under section 4.4(a) of Executive Order 12958 
(or a successor Executive order) are subject to this sec-
tion: 
‘‘(1) Military and civilian personnel of the De-
partment of Defense. 
‘‘(2) Personnel of defense contractors. 
‘‘(3) A person assigned or detailed to the De-
partment of Defense. 
‘‘(4) An applicant for a position in the Depart-
ment of Defense. 
‘‘(c) EXCEPTIONS FROM COVERAGE FOR CERTAIN 
INTELLIGENCE AGENCIES AND FUNCTIONS.—This section 
does not apply to the following persons: 
‘‘(1) A person assigned or detailed to the Cen-
tral Intelligence Agency or to an expert or consult-
ant under a contract with the Central Intelligence 
Agency. 
‘‘(2) A person who is—
‘‘(A) employed by or assigned or detailed 
to the National Security Agency;
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‘‘(B) an expert or consultant under con-
tract to the National Security Agency; 
‘‘(C) an employee of a contractor of the 
National Security Agency; or 
‘‘(D) a person applying for a position in 
the National Security Agency. 
‘‘(3) A person assigned to a space where sen-
sitive cryptographic information is produced, proc-
essed, or stored. 
‘‘(4) A person employed by, or assigned or de-
tailed to, an office within the Department of Defense 
for the collection of specialized national foreign intel-
ligence through reconnaissance programs or a con-
tractor of such an office. 
‘‘(d) OVERSIGHT.—(1) The Secretary shall establish 
a process to monitor responsible and effective application 
of polygraphs within the Department of Defense. 
‘‘(2) The Secretary shall make information on the use 
of polygraphs within the Department of Defense available 
to the congressional defense committees. 
‘‘(e) POLYGRAPH RESEARCH PROGRAM.—The Sec-
retary of Defense shall carry out a continuing research 
program to support the polygraph activities of the Depart-
ment of Defense. The program shall include—
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‘‘(1) an on-going evaluation of the validity of 
polygraph techniques used by the Department; 
‘‘(2) research on polygraph countermeasures 
and anti-countermeasures; and 
‘‘(3) developmental research on polygraph tech-
niques, instrumentation, and analytic methods.’’. 
(2) The table of sections at the beginning of sub-
chapter I of such chapter is amended by adding at the 
end (after the item added by section 805(b)(2) of this Act) 
the following new item:
‘‘427. Counterintelligence polygraph program.’’.
(b) CONFORMING REPEAL.—Section 1121 of the Na-
tional Defense Authorization Act for Fiscal Years 1988 
and 1989 (10 U.S.C. 113 note), is repealed. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2003. 
SEC. 1042. CODIFICATION AND REVISION OF LIMITATION 
ON MODIFICATION OF MAJOR ITEMS OF 
EQUIPMENT SCHEDULED FOR RETIREMENT 
OR DISPOSAL. 
(a) IN GENERAL.—(1) Chapter 134 of title 10, 
United States Code, is amended by inserting after section 
2244 the following new section:
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‘‘§ 2244a. Equipment scheduled for retirement or dis-
posal: limitation on expenditures for 
modifications 
‘‘(a) PROHIBITION.—Except as otherwise provided in 
this section, the Secretary of a military department may 
not carry out a significant modification of an aircraft, 
weapon, vessel, or other item of equipment that the Sec-
retary plans to retire or otherwise dispose of within five 
years after the date on which the modification, if carried 
out, would be completed. 
‘‘(b) SIGNIFICANT MODIFICATIONS DEFINED.—For 
purposes of this section, a significant modification is any 
modification for which the cost is in an amount equal to 
or greater than $1,000,000. 
‘‘(c) EXCEPTION FOR SAFETY MODIFICATIONS.—The 
prohibition in subsection (a) does not apply to a safety 
modification. 
‘‘(d) WAIVER AUTHORITY.—The Secretary concerned 
may waive the prohibition in subsection (a) in the case 
of any modification otherwise subject to that subsection 
if the Secretary determines that carrying out the modifica-
tion is in the national security interest of the United 
States. Whenever the Secretary issues such a waiver, the 
Secretary shall notify the congressional defense commit-
tees in writing.’’.
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(2) The table of sections at the beginning of sub-
chapter I of such chapter is amended by inserting after 
the item relating to section 2244 the following new item:
‘‘2244a. Equipment scheduled for retirement or disposal: limitation on expendi-
tures for modifications.’’.
(b) CONFORMING REPEAL.—Section 8053 of the De-
partment of Defense Appropriations Act, 1998 (10 U.S.C. 
2241 note), is repealed. 
SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF 
TITLE 10, UNITED STATES CODE.
(a) GENERAL DEFINITIONS.—Section 101(a) of title 
10, United States Code, is amended by adding at the end 
the following new paragraphs: 
‘‘(16) The term ‘congressional defense commit-
tees’ means—
‘‘(A) the Committee on Armed Services 
and the Committee on Appropriations of the 
Senate; and 
‘‘(B) the Committee on Armed Services 
and the Committee on Appropriations of the 
House of Representatives. 
‘‘(17) The term ‘base closure law’ means the 
following: 
‘‘(A) Section 2687 of this title.
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‘‘(B) The Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of 
Public Law 101–510; 10 U.S.C. 2687 note). 
‘‘(C) Title II of the Defense Authorization 
Amendments and Base Closure and Realign-
ment Act (Public Law 100–526; 10 U.S.C. 
2687 note).’’. 
(b) REFERENCES
TO CONGRESSIONAL DEFENSE 
COMMITTEES.—Title 10, United States Code, is further 
amended as follows: 
(1) Section 135(e) is amended—
(A) by striking ‘‘(1)’’; 
(B) by striking ‘‘each congressional com-
mittee specified in paragraph (2)’’ and inserting 
‘‘each of the congressional defense committees’’; 
and 
(C) by striking paragraph (2). 
(2) Section 153(c) is amended—
(A) by striking ‘‘committees of Congress 
named in paragraph (2)’’ and inserting ‘‘con-
gressional defense committees’’; 
(B) by striking paragraph (2); and 
(C) by designating the second sentence of 
paragraph (1) as paragraph (2) and in that 
paragraph (as so designated) by striking ‘‘The
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report’’ and inserting ‘‘Each report under para-
graph (1)’’. 
(3) Section 181(d)(2) is amended—
(A) by striking ‘‘subsection:’’ and all that 
follows through ‘‘oversight’’ and inserting ‘‘sub-
section, the term ‘oversight’’; and 
(B) by striking subparagraph (B). 
(4) Section 224 is amended by striking sub-
section (f). 
(5) Section 228(e) is amended—
(A) by striking ‘‘DEFINITIONS’’ and all 
that follows through ‘‘(1) The term’’ and insert-
ing ‘‘O&M BUDGET ACTIVITY DEFINED.—In 
this section, the term’’; and 
(B) by striking paragraph (2). 
(6) Section 229 is amended by striking sub-
section (f). 
(7) Section 1107(f)(4) is amended by striking 
subparagraph (C). 
(8) Section 2216(j) is amended by striking 
paragraph (3). 
(9) Section 2218(l) is amended—
(A) by striking paragraph (4); and 
(B) by redesignating paragraph (5) as 
paragraph (4).
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(10) Section 2306b(l) is amended—
(A) by striking paragraph (9); and 
(B) by redesignating paragraph (10) as 
paragraph (9). 
(11) Section 2308(e)(2) is amended—
(A) by striking subparagraph (A); and 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively. 
(12) Section 2366(e) is amended—
(A) by striking paragraph (7); and 
(B) by redesignating paragraphs (8) and 
(9) as paragraphs (7) and (8), respectively. 
(13) Section 2399(h) is amended—
(A) by striking ‘‘DEFINITIONS.—’’ and all 
that follows through ‘‘(1) The term’’ and insert-
ing ‘‘OPERATIONAL TEST
AND EVALUATION 
DEFINED.—In this section, the term’’; 
(B) by striking paragraph (2); 
(C) by redesignating subparagraphs (A), 
(B), and (C) as paragraphs (1), (2), and (3), 
respectively; and 
(D) by realigning those paragraphs (as so 
redesignated) so as to be indented two ems 
from the left margin.
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(14) Section 2667(h) is amended by striking 
paragraph (1). 
(15) Section 2688(e)(1) is amended by striking 
‘‘the Committee on’’ the first place it appears and 
all that follows through ‘‘House of Representatives’’ 
and inserting ‘‘the congressional defense commit-
tees’’. 
(16) Section 2801(c)(4) is amended by striking 
‘‘the Committee on’’ the first place it appears and 
all that follows through ‘‘House of Representatives’’ 
and inserting ‘‘the congressional defense commit-
tees’’. 
(c) REFERENCES TO BASE CLOSURE LAWS.—Title 
10, United States Code, is further amended as follows: 
(1) Section 2306c(h) is amended by striking 
‘‘ADDITIONAL’’ and all that follows through ‘‘(2) 
The term’’ and inserting ‘‘MILITARY INSTALLATION 
DEFINED.—In this section, the term’’. 
(2) Section 2490a(f) is amended—
(A) by striking ‘‘DEFINITIONS.—’’ and all 
that follows through ‘‘(1) The term’’ and insert-
ing ‘‘NONAPPROPRIATED FUND INSTRUMEN-
TALITY DEFINED.—In this section, the term’’; 
and 
(B) by striking paragraph (2).
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(3) Section 2667(h), as amended by subsection 
(b)(13), is further amended by striking ‘‘section:’’ 
and all that follows through ‘‘(3) The term’’ and in-
serting ‘‘section, the term’’. 
(4) Section 2696(e) is amended—
(A) by striking paragraphs (1), (2), (3), 
and (4) and inserting the following: 
‘‘(1) A base closure law.’’; and 
(B) by redesignating paragraph (6) as 
paragraph (2). 
(5) Section 2705 is amended by striking sub-
section (h). 
(6) Section 2871 is amended by striking para-
graph (2). 
SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUC-
TION AUTHORIZATION REQUEST IN ANNUAL 
DEFENSE AUTHORIZATION REQUEST. 
(a) INCLUSION OF MILITARY CONSTRUCTION RE-
QUEST.—Section 113a(b) of title 10, United States Code, 
is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
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‘‘(3) Authority to carry out military construc-
tion projects, as required by section 2802 of this 
title.’’. 
(b) REPEAL OF SEPARATE TRANSMISSION OF RE-
QUEST.—(1) Section 2859 of such title is repealed. 
(2) The table of sections at the beginning of sub-
chapter III of chapter 169 of such title is amended by 
striking the item relating to section 2859. 
SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS. 
(a) TITLE 10, UNITED STATES CODE.—Title 10, 
United States Code, is amended as follows: 
(1) The tables of chapters at the beginning of 
subtitle A, and at the beginning of part IV of sub-
title A, are amended by striking ‘‘2701’’ in the item 
relating to chapter 160 and inserting ‘‘2700’’. 
(2) Section 101(a)(9)(D) is amended by strik-
ing ‘‘Transportation’’ and inserting ‘‘Homeland Se-
curity’’. 
(3) Section 2002(a)(2) is amended by striking 
‘‘Foreign Service Institute’’ and inserting ‘‘George 
P. Schultz National Foreign Affairs Training Cen-
ter’’. 
(4)(A) Section 2248 is repealed.
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(B) The table of sections at the beginning of 
chapter 134 is amended by striking the item relating 
to section 2248. 
(5) Section 2305a(c) is amended by striking 
‘‘the Brooks Architect-Engineers Act (40 U.S.C. 541 
et seq.)’’ and inserting ‘‘chapter 11 of title 40’’. 
(6) Section 2432(h)(1) is amended by inserting 
‘‘program’’ in the first sentence after ‘‘for such’’. 
(7) Section 7305(d) is amended by inserting 
‘‘such’’ before ‘‘title III’’. 
(b) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended as follows: 
(1) Section 323(a) is amended by striking ‘‘1 
year’’ in paragraphs (1) and (2) and inserting ‘‘one 
year’’. 
(2) Section 402(b) is amended—
(A) by striking paragraph (1); and 
(B) in paragraph (2), by striking ‘‘On and 
after January 1, 2002, the’’ and inserting 
‘‘The’’. 
(c) 
FLOYD
D. 
SPENCE
NATIONAL
DEFENSE 
AUTHORIZATON ACT
FOR FISCAL YEAR 2001.—The 
Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106–
398) is amended as follows:
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(1) Section 1308(c) (22 U.S.C. 5959) is amend-
ed—
(A) by redesignating paragraph (7) as 
paragraph (8); and 
(B) by redesignating the second paragraph 
(6) as paragraph (7). 
(2) Section 814 (10 U.S.C. 1412 note) is 
amended in subsection (d)(1) by striking ‘‘the 
Clinger-Cohen Act of 1996 (divisions D and E of 
Public Law 104–106)’’ and inserting ‘‘subtitle III of 
title 40, United States Code’’. 
(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2000.—Section 1305 of the National De-
fense Authorization Act for Fiscal Year 2000 (Public Law 
106–65; 22 U.S.C. 5952 note) is amended by striking the 
second period at the end. 
(e) STROM THURMOND NATIONAL DEFENSE AU-
THORIZATION ACT
FOR FISCAL YEAR 1999.—Section 
819(a) of the Strom Thurmond National Defense Author-
ization Act for Fiscal Year 1999 (Public Law 105–261; 
112 Stat. 2089) is amended by striking ‘‘section 201(c) 
of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 481(c)),’’ and inserting ‘‘section 503 
of title 40, United States Code,’’.
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(f) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1997.—Section 1084(e) of the National De-
fense Authorization Act for Fiscal Year 1997 (Public Law 
104–201; 110 Stat. 2675) is amended by striking ‘‘98–
515’’ and inserting ‘‘98–525’’. The amendment made by 
the preceding sentence shall take effect as if included in 
Public Law 104–201. 
(g) FEDERAL ACQUISITION STREAMLINING ACT OF 
1994.—Subsection (d) of section 1004 of the Federal Ac-
quisition Streamlining Act of 1994 (Public Law 103–355; 
108 Stat, 3253) is amended by striking ‘‘under—’’ and 
all that follows through the end of paragraph (2) and in-
serting ‘‘under chapter 11 of title 40, United States 
Code.’’. 
(h) ARMED FORCES RETIREMENT HOME ACT OF 
1991.—Section 1520(b)(1)(C) of the Armed Forces Retire-
ment Home Act of 1991 (24 U.S.C. 420(b)(1)(C)) is 
amended by inserting ‘‘Armed Forces’’ before ‘‘Retirement 
Home Trust Fund’’.
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SEC. 1046. AUTHORITY TO PROVIDE LIVING QUARTERS FOR 
CERTAIN STUDENTS IN COOPERATIVE AND 
SUMMER EDUCATION PROGRAMS OF THE NA-
TIONAL SECURITY AGENCY. 
Section 2195 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(d)(1) The Director of the National Security Agency 
may provide a qualifying employee of a defense laboratory 
of that Agency with living quarters at no charge, or at 
a rate or charge prescribed by the Director by regulation, 
without regard to section 5911(c) of title 5. 
‘‘(2) In this subsection, the term ‘qualifying em-
ployee’ means a student who is employed at the National 
Security Agency under—
‘‘(A) a Student Educational Employment Pro-
gram of the Agency conducted under this section or 
any other provision of law; or 
‘‘(B) a similar cooperative or summer education 
program of the Agency that meets the criteria for 
Federal cooperative or summer education programs 
prescribed by the Office of Personnel Management.’’.
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SEC. 1047. USE OF DRUG INTERDICTION AND COUNTER-
DRUG FUNDS TO SUPPORT ACTIVITIES OF 
THE GOVERNMENT OF COLOMBIA. 
(a) AUTHORITY TO PROVIDE ASSISTANCE.—During 
fiscal years 2004 and 2005, the Secretary of Defense may 
use funds made available to the Department of Defense 
for drug interdiction and counter-drug activities to provide 
assistance to the Government of Colombia—
(1) to support a unified campaign against nar-
cotics trafficking in Colombia; 
(2) to support a unified campaign against ac-
tivities by designated terrorist organizations, such as 
the Revolutionary Armed Forces of Colombia 
(FARC), the National Liberation Army (ELN), and 
the United Self-Defense Forces of Colombia (AUC); 
and 
(3) to take actions to protect human health and 
welfare in emergency circumstances, including un-
dertaking rescue operations. 
(b) RELATION
TO OTHER ASSISTANCE AUTHOR-
ITY.—The authority provided by subsection (a) is in addi-
tion to other provisions of law authorizing the provision 
of assistance to the Government of Colombia.
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SEC. 1048. AUTHORITY FOR JOINT TASK FORCES TO PRO-
VIDE 
SUPPORT 
TO 
LAW 
ENFORCEMENT 
AGENCIES 
CONDUCTING 
COUNTER-TER-
RORISM ACTIVITIES. 
(a) AUTHORITY.—A joint task force of the Depart-
ment of Defense that provides support to law enforcement 
agencies conducting counter-drug activities may also pro-
vide, consistent with all applicable laws and regulations, 
support to law enforcement agencies conducting counter-
terrorism activities. 
(b) CONDITIONS.—Any support provided under sub-
section (a) may only be provided in the geographic area 
of responsibility of the joint task force. 
SEC. 1049. USE OF NATIONAL DRIVER REGISTER FOR PER-
SONNEL SECURITY INVESTIGATIONS AND DE-
TERMINATIONS. 
Section 30305(b) of title 49, United States Code, is 
amended—
(1) by redesignating paragraphs (9) through 
(11) as paragraphs (10) through (12), respectively; 
and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) An individual who is being investigated for—
‘‘(A) eligibility for access to a particular level of 
classified information for purposes of Executive
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Order No. 12968, or any successor Executive order; 
or 
‘‘(B) Federal employment under authority of 
Executive Order No. 10450, or any successor Execu-
tive order, 
may request the chief driver licensing official of a State 
to provide information about the individual pursuant to 
subsection (a) of this section to a Federal department or 
agency that is authorized to investigate the individual for 
the purpose of assisting in the determination of the eligi-
bility of the individual for access to classified information 
or for Federal employment. A Federal department or 
agency that receives such information about an individual 
may use it in accordance with applicable law. Information 
may not be obtained from the Register under this para-
graph if the information was entered in the Register more 
than 3 years before the request, unless the information 
is about a revocation or suspension still in effect on the 
date of the request.’’. 
SEC. 1050. PROTECTION OF OPERATIONAL FILES OF THE 
NATIONAL SECURITY AGENCY. 
The National Security Agency Act of 1959 (50 
U.S.C. 402 note) is amended by adding at the end the 
following new section:
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‘‘SEC. 19. (a) EXEMPTION
OF CERTAIN OPER-
ATIONAL FILES FROM SEARCH, REVIEW, PUBLICATION, 
OR DISCLOSURE.—(1) The Director of the National Secu-
rity Agency, with the coordination of the Director of Cen-
tral Intelligence, may exempt operational files of the Na-
tional Security Agency from the provisions of section 552 
of title 5, United States Code, which require publication, 
disclosure, search, or review in connection therewith. 
‘‘(2)(A) Subject to subparagraph (B), for the pur-
poses of this section, the term ‘operational files’ means 
files of the National Security Agency that document the 
means by which foreign intelligence or counterintelligence 
is collected through technical systems. 
‘‘(B) Files that contain disseminated intelligence are 
not operational files. 
‘‘(3) Notwithstanding paragraph (1), exempted oper-
ational files shall continue to be subject to search and re-
view for information concerning—
‘‘(A) United States citizens or aliens lawfully 
admitted for permanent residence who have re-
quested information on themselves pursuant to the 
provisions of section 552 of title 5 or section 552a 
of title 5, United States Code;
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‘‘(B) any special activity the existence of which 
is not exempt from disclosure under the provisions 
of section 552 of title 5, United States Code; or 
‘‘(C) the specific subject matter of an investiga-
tion by any of the following for any impropriety, or 
violation of law, Executive order, or Presidential di-
rective, in the conduct of an intelligence activity: 
‘‘(i) The Permanent Select Committee on 
Intelligence of the House of Representatives. 
‘‘(ii) The Select Committee on Intelligence 
of the Senate. 
‘‘(iii) The Intelligence Oversight Board. 
‘‘(iv) The Department of Justice. 
‘‘(v) The Office of General Counsel of the 
National Security Agency. 
‘‘(vi) The Office of the Director of the Na-
tional Security Agency. 
‘‘(4)(A) Files that are not exempted under paragraph 
(1) which contain information derived or disseminated 
from exempted operational files shall be subject to search 
and review. 
‘‘(B) The inclusion of information from exempted 
operational files in files that are not exempted under para-
graph (1) shall not affect the exemption under paragraph