IB
Union Calendar No. 258
107TH CONGRESS
2D SESSION
H. R. 4546
[Report No. 107–436]
To authorize appropriations for fiscal year 2003 for military activities of
the Department of Defense, and for military construction, to prescribe
military personnel strengths for fiscal year 2003, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 23, 2002
Mr. STUMP (for himself and Mr. SKELTON) (both by request) introduced the
following bill; which was referred to the Committee on Armed Services
MAY 3, 2002
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on April 23, 2002]
A BILL
To authorize appropriations for fiscal year 2003 for military
activities of the Department of Defense, and for military
construction, to prescribe military personnel strengths
for fiscal year 2003, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Bob
Stump National Defense Authorization Act for Fiscal Year
2003’’.
(b) FINDINGS.—Congress makes the following findings:
(1) Representative Bob Stump of Arizona was
elected to the House of Representatives in 1976 for
service in the 95th Congress, after serving in the Ari-
zona legislature for 18 years and serving as President
of the Arizona State Senate from 1975 to 1976, and
he has been reelected to each subsequent Congress.
(2) A World War II combat veteran, Representa-
tive Stump entered service in the United States Navy
in 1943, just after his 16th birthday, and served
aboard the USS LUNGA POINT and the USS
TULAGI, which participated in the invasions of
Luzon, Iwo Jima, and Okinawa.
(3) Representative Stump was elected to the
Committee on Armed Services in 1978 and has served
on nearly all of its subcommittees and panels during
25 years of distinguished service on the committee. He
has served as chairman of the committee during the
107th Congress and has championed United States
national security as the paramount function of the
Federal Government.
(4) Also serving on the Committee on Veterans’
Affairs of the House of Representatives, chairing that
committee from 1995 to 2000, and serving on the Per-
manent Select Committee on Intelligence of the House
of Representatives, including service as the ranking
minority member in 1985 and 1986, Representative
Stump has dedicated his entire congressional career
to steadfastly supporting America’s courageous men
and women in uniform both on and off the battlefield.
(5) Representative Stump’s tireless efforts on be-
half of those in the military and veterans have been
recognized with numerous awards for outstanding
service from active duty and reserve military, vet-
erans’ service, military retiree, and industry organi-
zations.
(6) During his tenure as chairman of the Com-
mittee on Armed Services of the House of Representa-
tives, Representative Stump has—
(A) overseen the largest sustained increase
to defense spending since the Reagan adminis-
tration;
(B) led efforts to improve the quality of
military life, including passage of the largest
military pay raise since 1982;
(C) supported military retirees, including
efforts to reverse concurrent receipt law and to
save the Armed Forces Retirement Homes;
(D) championed military readiness by de-
fending military access to critical training fa-
cilities such Vieques, Puerto Rico, expanding the
National Training Center at Ft. Irwin, Cali-
fornia, and working to restore balance between
environmental concerns and military readiness
requirements;
(E) reinvigorated efforts to defend America
against ballistic missiles by supporting an in-
crease in fiscal year 2002 of nearly 50 percent
above the fiscal year 2001 level for missile de-
fense programs; and
(F) honored America’s war heroes by ex-
panding Arlington National Cemetery, estab-
lishing a site for the Air Force Memorial, and
assuring construction of the World War II Me-
morial.
(7) In recognition of his long record of accom-
plishments in enhancing the national security of the
United States and his legislative victories on behalf of
active duty service members, reservists, guardsmen,
and veterans, it is altogether fitting and proper that
this Act be named in honor of Representative Bob
Stump of Arizona, as provided in subsection (a).
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows:
(1) Division A—Department of Defense Author-
izations.
(2) Division B—Military Construction Author-
izations.
(3) Division C—Department of Energy National
Security Authorizations and Other Authorizations.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
DIVISION A—DEPARTMENT OF DEFENSE
AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of Appropriations
Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical demilitarization program.
Sec. 107. Defense health programs.
Subtitle B—Navy Programs
Sec. 111. Shipbuilding initiative.
Subtitle C—Air Force Programs
Sec. 121. Multiyear procurement authority for C–130J aircraft program.
Subtitle D—Other Programs
Sec. 141. Revisions to multiyear contracting authority.
Sec. 142. Transfer of technology items and equipment in support of homeland se-
curity.
Sec. 143. Destruction of existing stockpile of lethal chemical agents and muni-
tions.
Sec. 144. Report on unmanned aerial vehicle systems.
Sec. 145. Report on impact of Army Aviation Modernization Plan on the Army
National Guard.
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION
Subtitle A—Authorization of Appropriations
Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Subtitle B—Program Requirements, Restrictions, and
Limitations
Sec. 211. RAH–66 Comanche aircraft program.
Sec. 212. Extension of requirement relating to management responsibility for
naval mine countermeasures programs.
Sec. 213. Extension of authority to carry out pilot program for revitalizing the
laboratories and test and evaluation centers of the Department
of Defense.
Sec. 214. Revised requirements for plan for Manufacturing Technology Program.
Sec. 215. Technology Transition Initiative.
Sec. 216. Defense Acquisition Challenge Program.
Subtitle C—Ballistic Missile Defense
Sec. 231. Limitation on obligation of funds for procurement of Patriot (PAC–3)
missiles pending submission of required certification.
Sec. 232. Responsibility of Missile Defense Agency for research, development, test,
and evaluation related to system improvements of programs
transferred to military departments.
Sec. 233. Amendments to reflect change in name of Ballistic Missile Defense Or-
ganization to Missile Defense Agency.
TITLE III—OPERATION AND MAINTENANCE
Subtitle A—Authorization of Appropriations
Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Subtitle B—Environmental Provisions
Sec. 311. Incidental taking of migratory birds during military readiness activity.
Sec. 312. Military readiness and the conservation of protected species.
Sec. 313. Single point of contact for policy and budgeting issues regarding
unexploded ordnance, discarded military munitions, and muni-
tions constituents.
Subtitle C—Commissaries and Nonappropriated Fund
Instrumentalities
Sec. 321. Authority for each military department to provide base operating sup-
port to fisher houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members of Na-
tional Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and recreation
programs.
Subtitle D—Workplace and Depot Issues
Sec. 331. Notification requirements in connection with required studies for con-
version of commercial or industrial type functions to contractor
performance.
Sec. 332. Waiver authority regarding prohibition on contracts for performance of
security-guard functions.
Sec. 333. Exclusion of certain expenditures from percentage limitation on con-
tracting for performance of depot-level maintenance and repair
workloads.
Sec. 334. Repeal of obsolete provision regarding depot-level maintenance and re-
pair workloads that were performed at closed or realigned mili-
tary installations.
Sec. 335. Clarification of required core logistics capabilities.
Subtitle E—Defense Dependents Education
Sec. 341. Assistance to local educational agencies that benefit dependents of mem-
bers of the Armed Forces and Department of Defense civilian
employees.
Sec. 342. Availability of quarters allowance for unaccompanied defense depart-
ment teacher required to reside on overseas military installation.
Sec. 343. Provision of summer school programs for students who attend defense
dependents’ education system.
Subtitle F—Information Technology
Sec. 351. Navy-Marine Corps Intranet contract.
Sec. 352. Annual submission of information on national security and informa-
tion technology capital assets.
Sec. 353. Implementation of policy regarding certain commercial off-the-shelf in-
formation technology products.
Sec. 354. Installation and connection policy and procedures regarding Defense
Switch Network.
Subtitle G—Other Matters
Sec. 361. Distribution of monthly reports on allocation of funds within operation
and maintenance budget subactivities.
Sec. 362. Minimum deduction from pay of certain members of the Armed Forces
to support Armed Forces Retirement Home.
Sec. 363. Condition on conversion of Defense Security Service to a working cap-
ital funded entity.
Sec. 364. Continuation of Arsenal support program initiative.
Sec. 365. Training range sustainment plan, Global Status of Resources and
Training System, and training range inventory.
Sec. 366. Amendments to certain education and nutrition laws relating to acqui-
sition and improvement of military housing.
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Authority for military department Secretaries to increase active-duty
end strengths by up to 1 percent.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of numbers of
general and flag officers in certain grades.
Subtitle B—Reserve Forces
Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitation on non-dual status technicians.
Subtitle C—Authorization of Appropriations
Sec. 421. Authorization of appropriations for military personnel.
TITLE V—MILITARY PERSONNEL POLICY
Subtitle A—General Personnel Management Authorities
Sec. 501. Increase in number of Deputy Commandants of the Marine Corps.
Sec. 502. Extension of good-of-the-service waiver authority for officers appointed
to a Reserve Chief or Guard Director position.
Subtitle B—Reserve Component Management
Sec. 511. Reviews of National Guard strength accounting and management and
other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal service.
Sec. 513. Matching funds requirements under National Guard Youth Challenge
Program.
Subtitle C—Reserve Component Officer Personnel Policy
Sec. 521. Exemption from active status strength limitation for reserve component
general and flag officers serving on active duty in certain joint
duty assignments designated by the Chairman of the Joint
Chiefs of Staff.
Sec. 522. Eligibility for consideration for promotion to grade of major general for
certain reserve component brigadier generals who do not other-
wise qualify for consideration for promotion under the one-year
rule.
Sec. 523. Retention of promotion eligibility for reserve component general and
flag officers transferred to an inactive status.
Sec. 524. Authority for limited extension of medical deferment of mandatory re-
tirement or separation for reserve officers.
Subtitle D—Education and Training
Sec. 531. Authority for phased increase to 4,400 in authorized strengths for the
service academies.
Sec. 532. Enhancement of reserve component delayed training program.
Subtitle E—Decorations and Awards
Sec. 541. Waiver of time limitations for award of certain decorations to certain
persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal award-
ed for Operation Frequent Wind to Vietnam Service Medal.
Subtitle F—Administrative Matters
Sec. 551. Staffing and funding for Defense Prisoner of War/Missing Personnel Of-
fice.
Sec. 552. Three-year freeze on reductions of personnel of agencies responsible for
review and correction of military records.
Sec. 553. Department of Defense support for persons participating in military fu-
neral honors details.
Sec. 554. Authority for use of volunteers as proctors for administration of Armed
Services Vocational Aptitude Battery test.
Sec. 555. Annual report on status of female members of the Armed Forces.
Subtitle G—Benefits
Sec. 561. Voluntary leave sharing program for members of the Armed Forces.
Sec. 562. Enhanced flexibility in medical loan repayment program.
Sec. 563. Expansion of overseas tour extension benefits.
Sec. 564. Vehicle storage in lieu of transportation when member is ordered to a
nonforeign duty station outside continental United States.
Subtitle H—Military Justice Matters
Sec. 571. Right of convicted accused to request sentencing by military judge.
Sec. 572. Report on desirability and feasibility of consolidating separate courses
of basic instruction for judge advocates.
TITLE VI—COMPENSATION AND OTHER PERSONNEL
BENEFITS
Subtitle A—Pay and Allowances
Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Expansion of basic allowance for housing low-cost or no-cost moves au-
thority to members assigned to duty outside United States.
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 611. One-year extension of certain bonus and special pay authorities for re-
serve forces.
Sec. 612. One-year extension of certain bonus and special pay authorities for cer-
tain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for nuclear offi-
cers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Minimum levels of hardship duty pay for duty on the ground in Ant-
arctica or on Arctic icepack.
Sec. 616. Increase in maximum rates for prior service enlistment bonus.
Sec. 617. Retention incentives for health care providers qualified in a critical
military skill.
Subtitle C—Travel and Transportation Allowances
Sec. 631. Extension of leave travel deferral period for members performing con-
secutive overseas tours of duty.
Subtitle D—Retired Pay and Survivors Benefits
Sec. 641. Phase-in of full concurrent receipt of military retired pay and veterans
disability compensation for military retirees with disabilities
rated at 60 percent or higher.
Sec. 642. Change in service requirements for eligibility for retired pay for non-
regular service.
Sec. 643. Elimination of possible inversion in retired pay cost-of-living adjust-
ment for initial COLA computation.
Sec. 644. Technical revisions to so-called ‘‘forgotten widows’’ annuity program.
Subtitle E—Reserve Component Montgomery GI Bill
Sec. 651. Extension of Montgomery GI Bill-Selected Reserve eligibility period.
Subtitle F—Other Matters
Sec. 661. Addition of definition of continental United States in title 37.
TITLE VII—HEALTH CARE MATTERS
Subtitle A—Health Care Program Improvements
Sec. 701. Elimination of requirement for TRICARE preauthorization of inpa-
tient mental health care for medicare-eligible beneficiaries.
Sec. 702. Expansion of TRICARE Prime Remote for certain dependents.
Sec. 703. Enabling dependents of certain members who died while on active duty
to enroll in the TRICARE dental program.
Sec. 704. Improvements regarding the Department of Defense Medicare-Eligible
Retiree Health Care Fund.
Sec. 705. Certification of institutional and non-institutional providers under the
TRICARE program.
Sec. 706. Technical correction regarding transitional health care.
Subtitle B—Reports
Sec. 711. Comptroller General report on TRICARE claims processing.
Sec. 712. Comptroller General report on provision of care under the TRICARE
program.
Sec. 713. Repeal of report requirement.
TITLE VIII—ACQUISITION POLICY, ACQUISITION
MANAGEMENT, AND RELATED MATTERS
Sec. 801. Plan for acquisition management professional exchange pilot program.
Sec. 802. Evaluation of training, knowledge, and resources regarding negotiation
of intellectual property arrangements.
Sec. 803. Limitation period for task and delivery order contracts.
Sec. 804. One-year extension of program applying simplified procedures to cer-
tain commercial items; report.
Sec. 805. Authority to make inflation adjustments to simplified acquisition
threshold.
Sec. 806. Improvement of personnel management policies and procedures applica-
ble to the civilian acquisition workforce.
Sec. 807. Modification of scope of ball and roller bearings covered for purposes
of procurement limitation.
Sec. 808. Rapid acquisition and deployment procedures.
Sec. 809. Quick-reaction special projects acquisition team.
Sec. 810. Report on development of anti-cyberterrorism technology.
Sec. 811. Contracting with Federal Prison Industries.
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.
Sec. 902. Report on implementation of United States Northern Command.
Sec. 903. National defense mission of Coast Guard to be included in future Quad-
rennial Defense Reviews.
Sec. 904. Change in year for submission of Quadrennial Defense Review.
Sec. 905. Report on effect of noncombat operations on combat readiness of the
Armed Forces.
Sec. 906. Conforming amendment to reflect disestablishment of Department of De-
fense Consequence Management Program Integration Office.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 2002.
Sec. 1003. Uniform standards throughout Department of Defense for exposure of
personnel to pecuniary liability for loss of Government property.
Sec. 1004. Accountable officials in the Department of Defense.
Sec. 1005. Improvements in purchase card management.
Sec. 1006. Authority to transfer funds within a major acquisition program from
procurement to RDT&E.
Sec. 1007. Development and procurement of financial and nonfinancial manage-
ment systems.
Subtitle B—Reports
Sec. 1011. After-action reports on the conduct of military operations conducted as
part of Operation Enduring Freedom.
Sec. 1012. Report on biological weapons defense and counter-proliferation.
Sec. 1013. Requirement that Department of Defense reports to Congress be accom-
panied by electronic version.
Sec. 1014. Strategic force structure plan for nuclear weapons and delivery sys-
tems.
Sec. 1015. Report on establishment of a joint national training complex and joint
opposing forces.
Sec. 1016. Repeal of various reports required of the Department of Defense.
Sec. 1017. Report on the role of the Department of Defense in supporting home-
land security.
Sec. 1018. Study of short-term and long-term effects of nuclear earth penetrator
weapon.
Sec. 1019. Study of short-term and long-term effects of nuclear-tipped ballistic
missile interceptor.
Subtitle C—Other Matters
Sec. 1021. Sense of Congress on maintenance of a reliable, flexible, and robust
strategic deterrent.
Sec. 1022. Time for transmittal of annual defense authorization legislative pro-
posal.
Sec. 1023. Technical and clerical amendments.
Sec. 1024. War risk insurance for vessels in support of NATO-approved oper-
ations.
Sec. 1025. Conveyance, Navy drydock, Portland, Oregon.
Sec. 1026. Additional Weapons of Mass Destruction Civil Support Teams.
TITLE XI—CIVILIAN PERSONNEL MATTERS
Sec. 1101. Eligibility of Department of Defense nonappropriated fund employees
for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum sev-
erance payments.
Sec. 1103. Common occupational and health standards for differential payments
as a consequence of exposure to asbestos.
Sec. 1104. Continuation of Federal Employee Health Benefits program eligibility.
Sec. 1105. Triennial full-scale Federal wage system wage surveys.
TITLE XII—MATTERS RELATING TO OTHER NATIONS
Sec. 1201. Support of United Nations-sponsored efforts to inspect and monitor
Iraqi weapons activities.
Sec. 1202. Strengthening the defense of Taiwan.
Sec. 1203. Administrative services and support for foreign liaison officers.
Sec. 1204. Additional countries covered by loan guarantee program.
Sec. 1205. Limitation on funding for Joint Data Exchange Center in Moscow.
Sec. 1206. Limitation on number of military personnel in Colombia.
TITLE XIII—COOPERATIVE THREAT REDUCTION WITH
STATES OF THE FORMER SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out under Co-
operative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile material
storage facility.
Sec. 1306. Sense of Congress and report requirement regarding Russian prolifera-
tion to Iran.
Sec. 1307. Prohibition against use of Cooperative Threat Reduction funds outside
the States of the former Soviet Union.
Sec. 1308. Limited waiver of restriction on use of funds.
Sec. 1309. Limitation on use of funds until submission of report on defense and
military contacts activities.
TITLE XIV—UTAH TEST AND TRAINING RANGE
Sec. 1401. Definition of Utah Test and Training Range.
Sec. 1402. Military operations and overflights at Utah Test and Training Range.
Sec. 1403. Designation and management of lands in Utah Test and Training
Range.
Sec. 1404. Designation of Pilot Range Wilderness.
Sec. 1405. Designation of Cedar Mountain Wilderness.
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title; definition.
TITLE XXI—ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 2002
projects.
TITLE XXII—NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 2002 project.
TITLE XXIII—AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
TITLE XXIV—DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 1997 project.
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized guard and reserve construction and land acquisition
projects.
TITLE XXVII—EXPIRATION AND EXTENSION OF
AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be specified by
law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 projects.
Sec. 2704. Effective date.
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military
Family Housing Changes
Sec. 2801. Changes to alternative authority for acquisition and improvement of
military housing.
Sec. 2802. Modification of authority to carry out construction projects as part of
environmental response action.
Sec. 2803. Leasing of military family housing in Korea.
Subtitle B—Real Property and Facilities Administration
Sec. 2811. Agreements with private entities to limit encroachments and other con-
straints on military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource conservation
purposes.
Sec. 2813. National emergency exemption from screening and other requirements
of McKinney-Vento Homeless Assistance Act for property used in
support of response activities.
Sec. 2814. Demonstration program on reduction in long-term facility mainte-
nance costs.
Sec. 2815. Expanded authority to transfer property at military installations to
be closed to persons who construct or provide military family
housing.
Subtitle C—Land Conveyances
PART I—ARMY CONVEYANCES
Sec. 2821. Land conveyances, lands in Alaska no longer required for National
Guard purposes.
Sec. 2822. Land conveyance, Fort Campbell, Kentucky.
Sec. 2823. Land conveyance, Army Reserve Training Center, Buffalo, Minnesota.
Sec. 2824. Land conveyance, Fort Bliss, Texas
Sec. 2825. Land conveyance, Fort Hood, Texas.
PART II—NAVY CONVEYANCES
Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San Diego,
California.
Sec. 2832. Boundary adjustments, Marine Corps Base, Quantico, and Prince Wil-
liam Forest Park, Virginia.
PART III—AIR FORCE CONVEYANCES
Sec. 2841. Land conveyances, Wendover Air Force Base Auxiliary Field, Nevada.
Subtitle D—Other Matters
Sec. 2861. Easement for construction of roads or highways, Marine Corps Base,
Camp Pendleton, California.
Sec. 2862. Sale of excess treated water and wastewater treatment capacity, Ma-
rine Corps Base, Camp Lejeune, North Carolina.
Sec. 2863. Ratification of agreement regarding Adak Naval Complex, Alaska, and
related land conveyances.
Sec. 2864. Special requirements for adding military installation to closure list.
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL
SECURITY PROGRAMS
Subtitle A—National Security Programs Authorizations
Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Environmental and other defense activities.
Subtitle B—Department of Energy National Security
Authorizations General Provisions
Sec. 3120. Short title; definitions.
Sec. 3121. Reprogramming.
Sec. 3122. Minor construction projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction activities.
Sec. 3127. Funds available for all national security programs of the Department
of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfer of defense environmental management funds.
Sec. 3130. Transfer of weapons activities funds.
Sec. 3131. Scope of authority to carry out plant projects.
Subtitle C—Program Authorizations, Restrictions, and
Limitations
Sec. 3141. One-year extension of panel to assess the reliability, safety, and secu-
rity of the United States nuclear stockpile.
Sec. 3142. Transfer to National Nuclear Security Administration of Department
of Defense’s Cooperative Threat Reduction program relating to
elimination of weapons grade plutonium in Russia.
Sec. 3143. Repeal of requirement for reports on obligation of funds for programs
on fissile materials in Russia.
Sec. 3144. Annual certification to the President and Congress on the condition
of the United States nuclear weapons stockpile.
Sec. 3145. Plan for achieving one-year readiness posture for resumption by the
United States of underground nuclear weapons tests.
Subtitle D—Matters Relating to Defense Environmental
Management
Sec. 3151. Defense environmental management cleanup reform program.
Sec. 3152. Report on status of environmental management initiatives to accel-
erate the reduction of environmental risks and challenges posed
by the legacy of the Cold War.
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY
BOARD
Sec. 3201. Authorization.
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.
TITLE XXXIV—NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
TITLE XXXV—MARITIME ADMINISTRATION
Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL–24).
Sec. 3503. Financial assistance to States for preparation of transferred obsolete
ships for use as artificial reefs.
Sec. 3504. Independent analysis of title XI insurance guarantee applications.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on Armed Services and the
Committee on Appropriations of the House of Rep-
resentatives.
DIVISION A—DEPARTMENT OF
DEFENSE AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of
Appropriations
SEC. 101. ARMY.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for procurement for the Army as follows:
(1) For aircraft, $2,300,327,000.
(2) For missiles, $1,693,896,000.
(3) For weapons and tracked combat vehicles,
$2,372,958,000.
(4) For ammunition, $1,320,026,000.
(5) For other procurement, $6,119,447,000.
SEC. 102. NAVY AND MARINE CORPS.
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 2003 for procurement for the Navy
as follows:
(1) For aircraft, $8,971,555,000.
(2) For weapons, including missiles and tor-
pedoes, $1,916,617,000.
(3) 
For 
shipbuilding 
and 
conversion,
$9,279,494,000.
(4) For other procurement, $4,527,763,000.
(b) MARINE CORPS.—Funds are hereby authorized to
be appropriated for fiscal year 2003 for procurement for
the Marine Corps in the amount of $1,351,983,000.
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds
are hereby authorized to be appropriated for fiscal year
2003 for procurement of ammunition for the Navy and the
Marine Corps in the amount of $1,104,453,000.
SEC. 103. AIR FORCE.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for procurement for the Air Force as follows:
(1) For aircraft, $12,522,755,000.
(2) For missiles, $3,482,639,000.
(3) For ammunition, $1,176,864,000.
(4) For other procurement, $10,907,730,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for Defense-wide procurement in the amount
of $2,621,009,000.
SEC. 105. DEFENSE INSPECTOR GENERAL.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for procurement for the Inspector General of
the Department of Defense in the amount of $2,000,000.
SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.
There is hereby authorized to be appropriated for fiscal
year 2003 the amount of $1,490,199,000 for—
(1) the destruction of lethal chemical agents and
munitions in accordance with section 1412 of the De-
partment of Defense Authorization Act, 1986 (50
U.S.C. 1521); and
(2) the destruction of chemical warfare materiel
of the United States that is not covered by section
1412 of such Act.
SEC. 107. DEFENSE HEALTH PROGRAMS.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for the Department of Defense for procure-
ment for carrying out health care programs, projects, and
activities of the Department of Defense in the total amount
of $278,742,000.
SEC. 111. SHIPBUILDING INITIATIVE.
(a) USE OF SPECIFIED SHIPBUILDING AUTHORIZA-
TION AMOUNT SUBJECT TO CONTRACTOR AGREEMENT.—Of
the amounts authorized to be appropriated by section
102(a)(3) for fiscal year 2003, $810,000,000 shall be avail-
able for shipbuilding programs of the Navy either in accord-
ance with subsection (b) or in accordance with subsection
(c).
(b) 
DDG–51 
AUTHORIZATION
IF
AGREEMENT
REACHED.—If as of the date of the enactment of this Act
the Secretary of the Navy has submitted to Congress a cer-
tification described in subsection (d), then the amount re-
ferred to in subsection (a) shall be available for procurement
of one Arleigh Burke class (DDG-51) destroyer.
(c) AUTHORIZATION IF AGREEMENT NOT REACHED.—
If as of the date of the enactment of this Act the Secretary
of the Navy has not submitted to Congress a certification
described in subsection (d), then the amount referred to in
subsection (a) shall be available as follows:
(1) $415,000,000 shall be available for advance
procurement for Virginia class submarines.
(2) $210,000,000 shall be available for advance
procurement for cruiser conversion.
(3) $185,000,000 shall be available for nuclear-
powered submarine (SSN) engineered refueling over-
haul.
(d) CERTIFICATION.—A certification referred to in
subsections (b) and (c) is a certification by the Secretary
of the Navy that the prime contractor for the Virginia class
submarine program has entered into a binding agreement
with the United States to expend from its own funds an
amount not less than $385,000,000 for economic order
quantity procurement of nuclear and nonnuclear compo-
nents for Virginia class submarines beginning in fiscal year
2003.
(e) MULTIYEAR PROCUREMENT AUTHORITY.—(1) If
the terms of an agreement described in subsection (d) be-
tween the United States and the prime contractor for the
Virginia class submarine program include a requirement
for the Secretary of the Navy to seek to acquire Virginia
class submarines through a multiyear procurement con-
tract, the Secretary of the Navy may, in accordance with
section 2306b of title 10, United States Code, enter into a
multiyear contract for procurement of Virginia class sub-
marines, beginning with the fiscal year 2003 program year.
(2)(A) In the case of a contract authorized by para-
graph (1), a certification under subsection (i)(1)(A) of sec-
tion 2306b of title 10, United States Code, with respect to
that contract may only be submitted if the certification in-
cludes an additional certification that each of the conditions
specified in subsection (a) of that section has been satisfied
with respect to that contract.
(B) Upon transmission to Congress of a certification
referred to in subparagraph (A) with respect to a contract
authorized by paragraph (1), the contract may then be en-
tered into only after a period of 30 days has elapsed after
the date of the transmission of such certification.
Subtitle C—Air Force Programs
SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR
C–130J AIRCRAFT PROGRAM.
(a) MULTIYEAR AUTHORITY.—Beginning with the fis-
cal year 2003 program year, the Secretary of the Air Force
may, in accordance with section 2306b of title 10, United
States Code, enter into a multiyear contract for procure-
ment of C-130J aircraft.
(b) LIMITATION.—The Secretary of Defense may not
enter into a contract authorized by subsection (a) until—
(1) the Secretary submits to the congressional de-
fense committees a certification described in sub-
section (c); and
(2) a period of 30 days has expired after such
certification is submitted.
(c) REQUIRED CERTIFICATION AS TO PROGRESS TO-
WARD SUCCESSFUL OPERATIONAL TEST
AND EVALUA-
TION.—A certification under subsection (b)(1) is a certifi-
cation by the Secretary of Defense that the C-130J program
is making satisfactory progress towards a successful oper-
ational test and evaluation.
(d) REQUIRED CERTIFICATION WITH RESPECT
TO
MULTIYEAR CONTRACTING CONDITIONS.—(1) In the case of
a contract authorized by subsection (a) of this section, a
certification under subsection (i)(1)(A) of section 2306b of
title 10, United States Code, with respect to that contract
may only be submitted if the certification includes an addi-
tional certification that each of the conditions specified in
subsection (a) of that section has been satisfied with respect
to that contract.
(2) Upon transmission to Congress of a certification
referred to in paragraph (1) with respect to a contract au-
thorized by subsection (a), the contract may then be entered
into only after a period of 30 days has elapsed after the
date of the transmission of such certification.
Subtitle D—Other Programs
SEC. 141. REVISIONS TO MULTIYEAR CONTRACTING AU-
THORITY.
(a) USE OF PROCUREMENT AND ADVANCE PROCURE-
MENT FUNDS.—Section 2306b(i) of title 10, United States
Code, is amended by adding at the end the following new
paragraph:
‘‘(4)(A) Unless otherwise authorized by law, the Sec-
retary of Defense may obligate funds for procurement of an
end item under a multiyear contract for the purchase of
property only for procurement of a complete and usable end
item.
‘‘(B) Unless otherwise authorized by law, the Secretary
of Defense may obligate funds appropriated for any fiscal
year for advance procurement under a multiyear contract
for the purchase of property only for the procurement of
those long-lead items necessary in order to meet a planned
delivery schedule for complete major end items that are pro-
grammed under the contract to be acquired with funds ap-
propriated for a subsequent fiscal year.’’.
(b) EFFECTIVE DATE.—Paragraph (4) of section
2306b(i) of title 10, United States Code, as added by sub-
section (a), shall not apply with respect to any multiyear
contract authorized by law before the date of the enactment
of this Act.
SEC. 142. TRANSFER OF TECHNOLOGY ITEMS AND EQUIP-
MENT IN SUPPORT OF HOMELAND SECURITY.
(a) IN GENERAL.—Subchapter III of chapter 148 of
title 10, United States Code, is amended by adding at the
end the following new section:
‘‘§ 2520. Transfer of technology items and equipment
in support of homeland security
‘‘The Secretary of Defense shall enter into an agree-
ment with an independent, nonprofit, technology-oriented
entity that has demonstrated the ability to facilitate the
transfer of defense technologies, developed by both the pri-
vate and public sectors, to aid Federal, State, and local first
responders. Under the agreement the entity shall develop
and deploy technology items and equipment, through co-
ordination between Government agencies and private sector,
commercial developers and suppliers of technology, that will
enhance public safety and shall—
‘‘(1) work in coordination with the InterAgency
Board for Equipment Standardization and Interoper-
ability;
‘‘(2) develop technology items and equipment
that meet the standardization requirements estab-
lished by the Board;
‘‘(3) evaluate technology items and equipment
that have been identified using the standards devel-
oped by the Board and other state-of-the-art tech-
nology items and equipment that may benefit first re-
sponders;
‘‘(4) identify and coordinate among the public
and private sectors research efforts applicable to na-
tional security and homeland security;
‘‘(5) facilitate the timely transfer of technology
items and equipment between public and private
sources;
‘‘(6) eliminate redundant research efforts with
respect to technologies to be deployed to first respond-
ers;
‘‘(7) expedite the advancement of high priority
projects from research through implementation of ini-
tial manufacturing; and
‘‘(8) establish an outreach program, in coordina-
tion with the Board, with first responders to facilitate
awareness of available technology items and equip-
ment to support crisis response.’’.
(b) DEADLINE FOR AGREEMENT.—The Secretary of
Defense shall enter into the agreement required by section
2520 of title 10, United States Code (as added by subsection
(a)) not later than January 15, 2003.
(c) STRATEGIC PLAN.—The entity described in section
2520 of such title shall develop a strategic plan to carry
out the goals described in such section, which shall include
identification of—
(1) the initial technology items and equipment
considered for development; and
(2) the program schedule timelines for such tech-
nology items and equipment.
(d) REPORT REQUIRED.—Not later than March 15,
2003, the Secretary of Defense shall submit to the Commit-
tees on Armed Services of the Senate and the House of Rep-
resentatives a report on—
(1) the actions taken to carry out such section
2520;
(2) the relationship of the entity described in
such section to the InterAgency Board for Equipment
Standardization and Interoperability; and
(3) the strategic plan of such entity to meet the
goals described in such section.
(e) CLERICAL AMENDMENT.—The table of sections at
the beginning of subchapter III of chapter 148 of title 10,
United States Code, is amended by adding at the end the
following new item:
‘‘2520. Transfer of technology items and equipment in support of homeland secu-
rity.’’.
SEC. 143. DESTRUCTION OF EXISTING STOCKPILE OF LE-
THAL CHEMICAL AGENTS AND MUNITIONS.
(a) PROGRAM MANAGEMENT.—The Secretary of De-
fense shall ensure that the program for destruction of the
United States stockpile of lethal chemical agents and muni-
tions is managed as a major defense acquisition program
(as defined in section 2430 of title 10, United States Code)
in accordance with the essential elements of such programs
as may be determined by the Secretary.
(b) REQUIREMENT FOR UNDER SECRETARY OF DE-
FENSE (COMPTROLLER) ANNUAL CERTIFICATION.—Begin-
ning with respect to the budget request for fiscal year 2004,
the Under Secretary of Defense (Comptroller) shall submit
to the congressional defense committees on an annual basis
a certification that the budget request for the chemical
agents and munitions destruction program has been sub-
mitted in accordance with the requirements of applicable
Federal laws.
SEC. 144. REPORT ON UNMANNED AERIAL VEHICLE SYS-
TEMS.
(a) REPORT.—Not later than January 1, 2003, the
Secretary of Defense shall submit to Congress a report on
unmanned aerial vehicle systems of the Department of De-
fense.
(b) MATTERS TO BE INCLUDED CONCERNING UN-
MANNED AERIAL VEHICLE SYSTEMS.—The Secretary shall
include in the report under subsection (a) the following,
shown for each system referred to in that subsection:
(1) A description of the infrastructure that the
Department of Defense has (or is planning) for the
system.
(2) A description of the operational requirements
document (ORD) for the system.
(3) A description of the physical infrastructure
of the Department for training and basing.
(4) A description of the manner in which the De-
partment is interfacing with the industrial base.
(5) A description of the acquisition plan for the
system.
(c) SUGGESTIONS FOR CHANGES IN LAW.—The Sec-
retary shall also include in the report under subsection (a)
such suggestions as the Secretary considers appropriate for
changes in law that would facilitate the way the Depart-
ment acquires unmanned aerial vehicle systems.
SEC. 145. REPORT ON IMPACT OF ARMY AVIATION MOD-
ERNIZATION PLAN ON THE ARMY NATIONAL
GUARD.
(a) REPORT BY CHIEF OF THE NATIONAL GUARD BU-
REAU.—Not later than February 1, 2003, the Chief of the
National Guard Bureau shall submit to the Committees on
Armed Services of the Senate and the House of Representa-
tives a report on the requirements for Army National
Guard aviation. The report shall include the following:
(1) An analysis of the impact of the Army Avia-
tion Modernization Plan on the ability of the Army
National Guard to conduct its aviation missions.
(2) The plan under that aviation modernization
plan for the transfer of aircraft from the active com-
ponent of the Army to the Army reserve components,
including a timeline for those transfers.
(3) The progress, as of January 1, 2003, in car-
rying out the transfers under the plan referred to in
paragraph (2).
(4) An evaluation of the suitability of existing
Commercial Off The Shelf (COTS) light-twin engine
helicopters for performance of Army National Guard
aviation missions.
(b) VIEWS OF THE CHIEF OF STAFF OF THE ARMY.—
If, before the report under subsection (a) is submitted, the
Chief of the National Guard Bureau receives from the Chief
of Staff of the Army the views of the Chief of Staff on the
matters to be covered in the report, the Chief of the Bureau
shall include those views with the report as submitted under
subsection (a).
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of
Appropriations
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for the use of the Department of Defense for
research, development, test, and evaluation as follows:
(1) For the Army, $6,933,319,000.
(2) For the Navy, $13,274,540,000.
(3) For the Air Force, $18,803,184,000.
(4) For Defense-wide activities, $17,413,291,000,
of which $222,054,000 is authorized for the Director
of Operational Test and Evaluation.
SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECH-
NOLOGY.
(a) FISCAL YEAR 2003.—Of the amounts authorized
to be appropriated by section 201, $10,023,658,000 shall be
available for the Defense Science and Technology Program,
including basic research, applied research, and advanced
technology development projects.
(b) BASIC RESEARCH, APPLIED RESEARCH, AND AD-
VANCED TECHNOLOGY DEVELOPMENT DEFINED.—For pur-
poses of this section, the term ‘‘basic research, applied re-
search, and advanced technology development’’ means work
funded in program elements for defense research and devel-
opment under Department of Defense category 6.1, 6.2, or
6.3.
Subtitle B—Program Requirements,
Restrictions, and Limitations
SEC. 211. RAH–66 COMANCHE AIRCRAFT PROGRAM.
(a) LIMITATION.—None of the funds authorized to be
appropriated for fiscal year 2003 for engineering and man-
ufacturing development for the RAH–66 Comanche aircraft
program may be obligated until the Secretary of the Army
submits to the congressional defense committees a report,
prepared in coordination with the Under Secretary of De-
fense for Acquisition, Technology, and Logistics, containing
an accurate estimate of funds required to complete engineer-
ing and manufacturing development for that aircraft and
the new time line and plan for bringing that aircraft to
initial operational capability, as called for in the joint ex-
planatory statement of the committee of conference on the
bill S. 1438 of the One Hundred Seventh Congress (at page
535 of House Report 107–333, submitted December 12,
2001).
(b) LIMITATION ON TOTAL COST OF ENGINEERING AND
MANUFACTURING DEVELOPMENT.—The total amount obli-
gated or expended for engineering and manufacturing de-
velopment under the RAH–66 Comanche aircraft program
may not exceed $6,000,000,000.
(c) ADJUSTMENT OF LIMITATION AMOUNTS.—(1) Sub-
ject to paragraph (2), the Secretary of the Army shall adjust
the amount of the limitation set forth in subsection (b) by
the following amounts:
(A) The amounts of increases or decreases in
costs attributable to economic inflation after Sep-
tember 30, 2002.
(B) The amounts of increases or decreases in
costs attributable to compliance with changes in Fed-
eral, State, or local laws enacted after September 30,
2002.
(2) Before making any adjustment under paragraph
(1) in an amount greater than $20,000,000, the Secretary
of the Army shall submit to the congressional defense com-
mittees notice in writing of the proposed increase.
(d) ANNUAL DOD INSPECTOR GENERAL REVIEW.—(1)
Not later than March 1 of each year, the Department of
Defense Inspector General shall review the RAH–66 Co-
manche aircraft program and submit to Congress a report
on the results of the review.
(2) The report submitted on the program each year
shall include the following:
(A) The extent to which engineering and manu-
facturing development under the program is meeting
the goals established for engineering and manufac-
turing development under the program, including the
performance, cost, and schedule goals.
(B) The status of modifications expected to have
a significant effect on cost, schedule, or performance
of RAH–66 aircraft.
(C) The plan for engineering and manufacturing
development (leading to production) under the pro-
gram for the fiscal year that begins in the following
year.
(D) A conclusion regarding whether the plan re-
ferred to in subparagraph (C) is consistent with the
limitation in subsection (a).
(E) A conclusion regarding whether engineering
and manufacturing development (leading to produc-
tion) under the program is likely to be completed at
a total cost not in excess of the amount specified in
subsection (a).
(3) No report is required under this subsection after
the RAH–66 aircraft has completed engineering and manu-
facturing development.
(e) LIMITATION ON OBLIGATION OF FUNDS.—Of the
total amount authorized to be appropriated for the RAH–
66 Comanche aircraft program for research, development,
test, and evaluation for a fiscal year, not more than 90 per-
cent of that amount may be obligated until the Department
of Defense Inspector General submits to Congress the report
required to be submitted in that fiscal year under subsection
(d).
SEC. 212. EXTENSION OF REQUIREMENT RELATING TO
MANAGEMENT RESPONSIBILITY FOR NAVAL
MINE COUNTERMEASURES PROGRAMS.
Section 216(a) of the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–190;
105 Stat. 1317), as most recently amended by section 211
of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999 (Public Law 105–261; 112 Stat.
1946), is amended by striking ‘‘through 2003’’ and insert-
ing ‘‘through 2008’’.
SEC. 213. EXTENSION OF AUTHORITY TO CARRY OUT PILOT
PROGRAM FOR REVITALIZING THE LABORA-
TORIES AND TEST AND EVALUATION CEN-
TERS OF THE DEPARTMENT OF DEFENSE.
Section 246 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105–
261; 112 Stat. 1955; 10 U.S.C. 2358 note) is amended—
(1) in subsection (a)(1), by inserting before the
period at the end the following: ‘‘, and to demonstrate
improved efficiency in the performance of the re-
search, development, test, and evaluation functions of
the Department of Defense’’;
(2) in subsection (a)(4), by striking ‘‘for a pe-
riod’’ and all that follows through the period at the
end and inserting ‘‘until March 1, 2008.’’;
(3) in subsection (b)(2), by striking ‘‘Promptly
after’’ and all that follows through ‘‘The report shall
contain’’ and inserting ‘‘Not later than December 31
of each year, the Secretary of Defense shall submit to
the congressional defense committees a report on the
activities of the pilot program during the preceding
fiscal year. Each such report shall contain, for each
laboratory or center in the pilot program,’’; and
(4) by adding at the end of subsection (b) the fol-
lowing new paragraph:
‘‘(3) Not later than March 1, 2007, the Secretary of
Defense shall submit to the committees referred to in para-
graph (2) the Secretary’s recommendation as to whether,
and to what extent, the authority to carry out the pilot pro-
gram should be extended.’’.
SEC. 214. REVISED REQUIREMENTS FOR PLAN FOR MANU-
FACTURING TECHNOLOGY PROGRAM.
(a) STREAMLINED CONTENTS OF PLAN.—Subsection
(e) of section 2521 of title 10, United States Code, is amend-
ed by striking ‘‘prepare a five-year plan’’ in paragraph (1)
and all that follows through the end of subparagraph (B)
of paragraph (2) and inserting the following: ‘‘prepare and
maintain a five-year plan for the program.
‘‘(2) The plan shall establish the following:
‘‘(A) The overall manufacturing technology objec-
tives, milestones, priorities, and investment strategy
for the program.
‘‘(B) The specific objectives of, and funding for
the program by, each military department and each
Defense Agency participating in the program.’’.
(b) BIENNIAL REPORT.—Such subsection is further
amended in paragraph (3)—
(1) by striking ‘‘annually’’ and inserting ‘‘bien-
nially’’; and
(2) by striking ‘‘for a fiscal year’’ and inserting
‘‘for each even-numbered fiscal year’’.
SEC. 215. TECHNOLOGY TRANSITION INITIATIVE.
(a) ESTABLISHMENT AND CONDUCT.—Chapter 139 of
title 10, United States Code, is amended by inserting after
section 2359 the following new section:
‘‘§ 2359a. Technology Transition Initiative
‘‘(a) INITIATIVE REQUIRED.—The Secretary of De-
fense, acting through the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics, shall carry out an ini-
tiative, to be known as the Technology Transition Initiative
(hereinafter in this section referred to as the ‘Initiative’),
to facilitate the rapid transition of new technologies from
science and technology programs of the Department of De-
fense into acquisition programs of the Department for the
production of such technologies.
‘‘(b) OBJECTIVES.—The Initiative shall have the fol-
lowing objectives:
‘‘(1) To accelerate the introduction of new tech-
nologies into appropriate acquisition programs.
‘‘(2) To successfully demonstrate new technologies
in relevant environments.
‘‘(3) To ensure that new technologies are suffi-
ciently mature for production.
‘‘(c) MANAGEMENT OF INITIATIVE.—(1) The Initiative
shall be managed by a senior official in the Office of the
Secretary of Defense designated by the Secretary (herein-
after in this section referred to as the ‘Manager’). In man-
aging the Initiative, the Manager shall report directly to
the Under Secretary of Defense for Acquisition, Technology,
and Logistics.
‘‘(2) The Secretary shall establish a board of directors
(hereinafter in this section referred to as the ‘Board’), com-
posed of the acquisition executive of each military depart-
ment, the members of the Joint Requirements Oversight
Council, and the commander of the Joint Forces Command.
The Board shall assist the Manager in managing the Initia-
tive.
‘‘(3) The Secretary shall establish, under the auspices
of the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, a panel of highly qualified scientists
and engineers. The panel shall advise the Under Secretary
on matters relating to the Initiative.
‘‘(d) DUTIES OF MANAGER.—The Manager shall have
following duties:
‘‘(1) To identify, in consultation with the Board,
promising technologies that have been demonstrated
in science and technology programs of the Depart-
ment.
‘‘(2) To identify potential sponsors in the De-
partment to undertake the transition of such tech-
nologies into production.
‘‘(3) To work with the science and technology
community and the acquisition community to develop
memoranda of agreement, joint funding agreements,
and other cooperative arrangements to provide for the
transition of such technologies into production.
‘‘(4) Provide funding support for projects selected
under subsection (e).
‘‘(e) JOINTLY FUNDED PROJECTS.—(1) The acquisi-
tion executive of each military department shall identify
technology projects of that military department to rec-
ommend for funding support under the Initiative and shall
submit to the Manager a list of such recommended projects,
ranked in order of priority. Such executive shall identify
such projects, and establish priorities among such projects,
using a competitive process, on the basis of the greatest po-
tential benefits in areas of interest identified by the Sec-
retary of that military department.
‘‘(2) The Manager, in consultation with the Board,
shall select projects for funding support from among the
projects on the lists submitted under paragraph (1). From
the funds made available to the Manager for the Initiative,
the Manager shall provide funds for each selected project
in an amount determined by mutual agreement between the
Manager and the acquisition executive of the military de-
partment concerned, but not less than 50 percent of the total
cost of the project.
‘‘(3) The acquisition executive of the military depart-
ment concerned shall manage each project selected under
paragraph (2) that is undertaken by the military depart-
ment. Memoranda of agreement, joint funding agreements,
and other cooperative arrangements between the science and
technology community and the acquisition community shall
be used in carrying out the project if the acquisition execu-
tive determines that it is appropriate to do so to achieve
the objectives of the project.
‘‘(f) REQUIREMENT FOR PROGRAM ELEMENT.—In the
budget justification materials submitted to Congress in sup-
port of the Department of Defense budget for any fiscal year
(as submitted with the budget of the President under section
1105(a) of title 31), the amount requested for activities of
the Initiative shall be set forth in a separate program ele-
ment within amounts requested for research, development,
test, and evaluation for Defense-wide activities.
‘‘(g) DEFINITION
OF ACQUISITION EXECUTIVE.—In
this section, the term ‘acquisition executive’, with respect
to a military department, means the official designated as
the senior procurement executive for that military depart-
ment under section 16(3) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 414(3)).’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by inserting after
the item relating to section 2359 the following new item:
‘‘2359a. Technology Transition Initiative.’’.
SEC. 216. DEFENSE ACQUISITION CHALLENGE PROGRAM.
(a) IN GENERAL.—(1) Chapter 139 of title 10, United
States Code, is amended by inserting after section 2359a
(as added by section 215) the following new section:
‘‘§ 2359b. Defense Acquisition Challenge Program
‘‘(a) PROGRAM REQUIRED.—The Secretary of Defense
shall carry out a program to provide opportunities for the
increased introduction of innovative and cost-saving tech-
nology in acquisition programs of the Department of De-
fense. The program, to be known as the Defense Acquisition
Challenge Program (hereinafter in this section referred to
as the ‘Challenge Program’), shall provide any person or
activity within or outside the Department of Defense with
the opportunity to propose alternatives, to be known as
challenge proposals, at the component, subsystem, or system
level of an existing Department of Defense acquisition pro-
gram that would result in improvements in performance,
affordability, manufacturability, or operational capability
of that acquisition program.
‘‘(b) PANEL.—(1) In carrying out the Challenge Pro-
gram, the Secretary shall establish a panel of highly quali-
fied scientists and engineers (hereinafter in this section re-
ferred to as the ‘Panel’) under the auspices of the Under
Secretary of Defense for Acquisition, Technology, and Lo-
gistics. The duty of the Panel shall be to carry out evalua-
tions of challenge proposals under subsection (c).
‘‘(2) A member of the Panel may not participate in
any evaluation of a challenge proposal under subsection (c)
if at any time within the previous five years that member
has, in any capacity, participated in or been affiliated with
the acquisition program for which the challenge proposal
is submitted.
‘‘(c) EVALUATION BY PANEL.—(1) Under procedures
prescribed by the Secretary, a person or activity within or
outside the Department of Defense may submit challenge
proposals to the Panel.
‘‘(2) The Panel shall carry out an evaluation of each
challenge proposal submitted under paragraph (1) to deter-
mine each of the following criteria:
‘‘(A) Whether the challenge proposal has merit.
‘‘(B) Whether the challenge proposal is likely to
result in improvements in performance, affordability,
manufacturability, or operational capability at the
component, subsystem, or system level of the applica-
ble acquisition program.
‘‘(C) Whether the challenge proposal could be im-
plemented rapidly in the applicable acquisition pro-
gram.
‘‘(3) If the Panel determines that a challenge proposal
satisfies each of the criteria specified in paragraph (2), the
person or activity submitting that challenge proposal shall
be provided an opportunity to submit such challenge pro-
posal for a full review and evaluation under subsection (d).
‘‘(d) FULL REVIEW
AND EVALUATION.—(1) Under
procedures prescribed by the Secretary, for each challenge
proposal submitted for a full review and evaluation as pro-
vided in subsection (c)(3), the office carrying out the appli-
cable acquisition program, and the prime system contractor
carrying out such program, shall jointly conduct a full re-
view and evaluation of the challenge proposal.
‘‘(2) The full review and evaluation shall, independent
of the determination of the Panel under subsection (c)(2),
determine each of the matters specified in subparagraphs
(A), (B), and (C) of such subsection.
‘‘(e) ACTION UPON FAVORABLE FULL REVIEW AND
EVALUATION.—(1) Under procedures prescribed by the Sec-
retary, each challenge proposal determined under a full re-
view and evaluation to satisfy each of the criteria specified
in subsection (c)(2) shall be considered by the prime system
contractor for incorporation into the applicable acquisition
program as a new technology insertion at the component,
subsystem, or system level.
‘‘(2) The Secretary shall encourage the adoption of
each challenge proposal referred to in paragraph (1) by pro-
viding suitable incentives to the office carrying out the ap-
plicable acquisition program and the prime system con-
tractor carrying out such program.
‘‘(f) ACCESS TO TECHNICAL RESOURCES.—The Sec-
retary shall ensure that the Panel (in carrying out evalua-
tions of challenge proposals under subsection (c)) and each
office and prime system contractor (in conducting a full
review and evaluation under subsection (d)) have the au-
thority to call upon the technical resources of the labora-
tories, research, development, and engineering centers, test
and evaluation activities, and other elements of the Depart-
ment.
‘‘(g) ELIMINATION OF CONFLICTS OF INTEREST.—In
carrying out each evaluation under subsection (c) and full
review under subsection (d), the Secretary shall ensure the
elimination of conflicts of interest.
‘‘(h) REPORT.—The Secretary shall submit to Con-
gress, with the submission of the budget request for the De-
partment of Defense for each fiscal year during which the
Challenge Program is carried out, a report on the Challenge
Program for that fiscal year. The report shall include the
number and scope of challenge proposals submitted, evalu-
ated, subjected to full review, and adopted.
‘‘(i) SUNSET.—The authority to carry out this section
shall terminate on September 30, 2007.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
2359a (as added by section 215) the following new item:
‘‘2359b. Defense Acquisition Challenge Program.’’.
(b) INITIAL FUNDING.—(1) Of the funds authorized to
be appropriated by section 201(4) for Defense-wide research,
development, test, and evaluation for fiscal year 2003,
$25,000,000 shall be available in program element
0603826D8Z for the Defense Acquisition Challenge Pro-
gram required by section 2359b of title 10, United States
Code, as added by subsection (a).
(2) The funds provided under paragraph (1) may be
used only for review and evaluation of challenge proposals,
and not for implementation of challenge proposals.
Subtitle C—Ballistic Missile
Defense
SEC. 231. LIMITATION ON OBLIGATION OF FUNDS FOR PRO-
CUREMENT OF PATRIOT (PAC–3) MISSILES
PENDING SUBMISSION OF REQUIRED CER-
TIFICATION.
None of the funds appropriated for fiscal year 2003
for procurement of missiles for the Army may be obligated
for the Patriot Advanced Capability (PAC–3) missile pro-
gram until the Secretary of Defense has submitted to the
congressional defense committees the following:
(1) The criteria for the transfer of responsibility
for a missile defense program from the Director of the
Missile Defense Agency to the Secretary of a military
department, as required by section 224(b)(2) of title
10, United States Code.
(2) The notice and certification with respect to
the transfer of responsibility for the Patriot Advanced
Capability (PAC–3) missile program from the Direc-
tor to the Secretary of the Army required by section
224(c) of such title.
SEC. 232. RESPONSIBILITY OF MISSILE DEFENSE AGENCY
FOR RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION RELATED TO SYSTEM IMPROVE-
MENTS OF PROGRAMS TRANSFERRED TO
MILITARY DEPARTMENTS.
Section 224(e) of title 10, United States Code, is
amended—
(1) by striking ‘‘before a’’ and inserting ‘‘for
each’’;
(2) by striking ‘‘is’’; and
(3) by striking ‘‘roles and responsibilities’’ and
all that follows through the period at the end and in-
serting ‘‘responsibility for research, development, test,
and evaluation related to system improvements for
that program remains with the Director.’’.
SEC. 233. AMENDMENTS TO REFLECT CHANGE IN NAME OF
BALLISTIC MISSILE DEFENSE ORGANIZATION
TO MISSILE DEFENSE AGENCY.
(a) TITLE 10, UNITED STATES CODE.—Title 10,
United States Code, is amended as follows:
(1) Sections 203, 223, and 224 are each amended
by striking ‘‘Ballistic Missile Defense Organization’’
each place it appears and inserting ‘‘Missile Defense
Agency’’.
(2)(A) The heading of section 203 is amended to
read as follows:
‘‘§ 203. Director of Missile Defense Agency’’.
(B) The item relating to such section in the table
of sections at the beginning of subchapter II of chap-
ter 8 is amended to read as follows:
‘‘203. Director of Missile Defense Agency.’’.
(b) PUBLIC LAW 107–107.—(1) Section 232 of the Na-
tional Defense Authorization Act for Fiscal Year 2002 (Pub-
lic Law 107–107; 10 U.S.C. 2431 note) is amended by strik-
ing ‘‘Ballistic Missile Defense Organization’’ each place it
appears and inserting ‘‘Missile Defense Agency’’.
(2) The heading for such section is amended to read
as follows:
‘‘SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE
AGENCY.’’.
(c) PUBLIC LAW 106–398.—(1) Section 3132 of the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106–
398; 10 U.S.C. 2431 note) is amended by striking ‘‘Ballistic
Missile Defense Organization’’ each place it appears and
inserting ‘‘Missile Defense Agency’’.
(2) Such section is further amended in subsection (c)
by striking ‘‘BMDO’’ and inserting ‘‘MDA’’.
(3) The section heading for such section is amended
to read as follows:
‘‘SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL
NUCLEAR SECURITY ADMINISTRATION AND
MISSILE DEFENSE AGENCY.’’.
(d) OTHER LAWS.—The following provisions are each
amended by striking ‘‘Ballistic Missile Defense Organiza-
tion’’ each place it appears and inserting ‘‘Missile Defense
Agency’’:
(1) Section 233 of the National Defense Author-
ization Act for Fiscal Year 1998 (Public Law 105–
85; 10 U.S.C. 223 note).
(2) Section 234 of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104–
106; 10 U.S.C. 2431 note).
(3) Sections 235 (10 U.S.C. 2431 note) and 243
(10 U.S.C. 2431 note) of the National Defense Author-
ization Act for Fiscal Year 1994 (Public Law 103–
160).
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for operation and main-
tenance, in amounts as follows:
(1) For the Army, $24,159,733,000.
(2) For the Navy, $29,428,876,000.
(3) For the Marine Corps, $3,588,512,000.
(4) For the Air Force, $27,299,404,000.
(5) For Defense-wide activities, $14,370,037,000.
(6) For the Army Reserve, $1,918,110,000.
(7) For the Naval Reserve, $1,233,759,000.
(8) For the Marine Corps Reserve, $185,532,000.
(9) For the Air Force Reserve, $2,194,719,000.
(10) 
For 
the 
Army 
National 
Guard,
$4,300,767,000.
(11) 
For 
the 
Air 
National 
Guard,
$4,077,845,000.
(12) 
For 
the 
Defense 
Inspector 
General,
$155,165,000.
(13) For the United States Court of Appeals for
the Armed Forces, $9,614,000.
(14) For Environmental Restoration, Army,
$395,900,000.
(15) For Environmental Restoration, Navy,
$256,948,000.
(16) For Environmental Restoration, Air Force,
$389,773,000.
(17) For Environmental Restoration, Defense-
wide, $23,498,000.
(18) For Environmental Restoration, Formerly
Used Defense Sites, $212,102,000.
(19) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $58,400,000.
(20) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $848,907,000.
(21) For the Kaho’olawe Island Conveyance, Re-
mediation, and Environmental Restoration Trust
Fund, $25,000,000.
(22) 
For 
Defense 
Health 
Program,
$14,242,541,000.
(23) For Cooperative Threat Reduction pro-
grams, $416,700,000.
(24) For Support for International Sporting
Competitions, Defense, $19,000,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for fis-
cal year 2003 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
(1) For the Defense Working Capital Funds,
$1,504,956,000.
(2) For the National Defense Sealift Fund,
$934,129,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fiscal
year 2003 from the Armed Forces Retirement Home Trust
Fund the sum of $69,921,000 for the operation of the Armed
Forces Retirement Home.
Subtitle B—Environmental
Provisions
SEC. 311. INCIDENTAL TAKING OF MIGRATORY BIRDS DUR-
ING MILITARY READINESS ACTIVITY.
Section 3 of the Migratory Bird Treaty Act (16 U.S.C.
704) is amended by adding at the end the following new
subsection:
‘‘(c)(1) Section 2 shall not apply to the incidental tak-
ing of a migratory bird by a member of the Armed Forces
during a military readiness activity authorized by the Sec-
retary of Defense or the Secretary of the military depart-
ment concerned.
‘‘(2)(A) In this subsection, the term ‘military readiness
activity’ includes—
‘‘(i) all training and operations of the Armed
Forces that relate to combat; and
‘‘(ii) the adequate and realistic testing of mili-
tary equipment, vehicles, weapons, and sensors for
proper operation and suitability for combat use.
‘‘(B) The term does not include—
‘‘(i) the routine operation of installation oper-
ating support functions, such as administrative of-
fices, military exchanges, commissaries, water treat-
ment facilities, storage facilities, schools, housing,
motor pools, laundries, morale, welfare, and recre-
ation activities, shops, and mess halls;
‘‘(ii) the operation of industrial activities; or
‘‘(iii) the construction or demolition of facilities
used for a purpose described in clause (i) or (ii).’’.
SEC. 312. MILITARY READINESS AND THE CONSERVATION
OF PROTECTED SPECIES.
(a) LIMITATION ON DESIGNATION OF CRITICAL HABI-
TAT.—Section 4(a)(3) of the Endangered Species Act of
1973 (16 U.S.C. 1533(a)(3)) is amended—
(1) by redesignating subparagraphs (A) and (B)
as clauses (i) and (ii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(3) by adding at the end the following:
‘‘(B)(i) The Secretary may not designate as critical
habitat any lands or other geographical areas owned or con-
trolled by the Department of Defense, or designated for its
use, that are subject to an integrated natural resources
management plan prepared under section 101 of the Sikes
Act (16 U.S.C. 670a), if the Secretary determines that such
plan addresses special management considerations or pro-
tection (as those terms are used in section 3(5)(A)(i)).
‘‘(ii) Nothing in this subparagraph affects the require-
ment to consult under section 7(a)(2) with respect to an
agency action (as that term is defined in that section).
‘‘(iii) Nothing in this subparagraph affects the obliga-
tion of the Department of Defense to comply with section
9 of the Endangered Species Act of 1973, including the pro-
hibition preventing extinction and taking of endangered
species and threatened species.’’.
(b) CONSIDERATION OF EFFECTS OF DESIGNATION OF
CRITICAL HABITAT.—Section 4(b)(2) of the Endangered
Species Act of 1973 (16 U.S.C. 1533(b)(2)) is amended by
inserting ‘‘the impact on national security,’’ after ‘‘the eco-
nomic impact,’’.
SEC. 313. SINGLE POINT OF CONTACT FOR POLICY AND
BUDGETING 
ISSUES 
REGARDING
UNEXPLODED ORDNANCE, DISCARDED MILI-
TARY MUNITIONS, AND MUNITIONS CON-
STITUENTS.
Section 2701 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection:
‘‘(k) UXO PROGRAM MANAGER.—(1) The Secretary of
Defense shall establish a program manager who shall serve
as the single point of contact in the Department of Defense
for policy and budgeting issues involving the characteriza-
tion, remediation, and management of explosive and related
risks with respect to unexploded ordnance, discarded mili-
tary munitions, and munitions constituents at defense sites
(as such terms are defined in section 2710 of this title) that
pose a threat to human health or safety.
‘‘(2) The Secretary of Defense may delegate this au-
thority to the Secretary of a military department, who may
delegate the authority to the Under Secretary of that mili-
tary department. The authority may not be further dele-
gated.
‘‘(3) The program manager may establish an inde-
pendent advisory and review panel that may include rep-
resentatives of the National Academy of Sciences, non-
governmental organizations with expertise regarding
unexploded ordnance, discarded military munitions, or mu-
nitions constituents, the Environmental Protection Agency,
States (as defined in section 2710 of this title), and tribal
governments. If established, the panel would report annu-
ally to Congress on progress made by the Department of
Defense to address unexploded ordnance, discarded military
munitions, or munitions constituents at defense sites and
make such recommendations as the panel considered appro-
priate.’’.
Subtitle C—Commissaries and Non-
appropriated Fund Instrumen-
talities
SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT
TO PROVIDE BASE OPERATING SUPPORT TO
FISHER HOUSES.
Section 2493(f) of title 10, United States Code, is
amended to read as follows:
‘‘(f) BASE OPERATING SUPPORT.—The Secretary of a
military department may provide base operating support
for Fisher Houses associated with health care facilities of
that military department.’’.
SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL
FACILITIES 
BY 
MEMBERS 
OF 
NATIONAL
GUARD SERVING IN NATIONAL EMERGENCY.
(a) ADDITIONAL BASIS FOR AUTHORIZED USE.—Sec-
tion 1063a of title 10, United States Code, is amended—
(1) in subsection (a), by inserting ‘‘or national
emergency’’ after ‘‘federally declared disaster’’; and
(2) in subsection (c), by adding at the end the
following new paragraph:
‘‘(3) NATIONAL
EMERGENCY.—The term ‘na-
tional emergency’ means a national emergency de-
clared by the President or Congress.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of such
section is amended to read as follows:
‘‘§ 1063a. Use of commissary stores and MWR retail fa-
cilities: members of National Guard serv-
ing in federally declared disaster or na-
tional emergency’’.
(2) The table of sections at the beginning of chapter
54 of such title is amended by striking the item relating
to section 1063a and inserting the following new item:
‘‘1063a. Use of commissary stores and MWR retail facilities: members of National
Guard serving in federally declared disaster or national emer-
gency.’’.
SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MO-
RALE, 
WELFARE, 
AND 
RECREATION 
PRO-
GRAMS.
(a) IN GENERAL.—Chapter 147 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 2494. Uniform funding and management of morale,
welfare, and recreation programs
‘‘(a) AUTHORITY FOR UNIFORM FUNDING AND MAN-
AGEMENT.—Under regulations prescribed by the Secretary
of Defense, funds appropriated to the Department of Defense
and available for morale, welfare, and recreation programs
may be treated as nonappropriated funds and expended in
accordance with laws applicable to the expenditures of non-
appropriated funds. When made available for morale, wel-
fare, and recreation programs under such regulations, ap-
propriated funds shall be considered to be nonappropriated
funds for all purposes and shall remain available until ex-
pended.
‘‘(b) CONDITIONS ON AVAILABILITY.—Funds appro-
priated to the Department of Defense may be made avail-
able to support a morale, welfare, or recreation program
only if the program is authorized to receive appropriated
fund support and only in the amounts the program is au-
thorized to receive.
‘‘(c) CONVERSION OF EMPLOYMENT POSITIONS.—(1)
The Secretary of Defense may identify positions of employ-
ees in morale, welfare, and recreation programs within the
Department of Defense who are paid with appropriated
funds whose status may be converted from the status of an
employee paid with appropriated funds to the status of an
employee of a nonappropriated fund instrumentality.
‘‘(2) The status of an employee in a position identified
by the Secretary under paragraph (1) may, with the con-
sent of the employee, be converted to the status of an em-
ployee of a nonappropriated fund instrumentality. An em-
ployee who does not consent to the conversion may not be
removed from the position because of the failure to provide
such consent.
‘‘(3) The conversion of an employee from the status of
an employee paid by appropriated funds to the status of
an employee of a nonappropriated fund instrumentality
shall be without a break in service for the concerned em-
ployee. The conversion shall not entitle an employee to sev-
erance pay, back pay or separation pay under subchapter
IX of chapter 55 of title 5, or be considered an involuntary
separation or other adverse personnel action entitling an
employee to any right or benefit under such title or any
other provision of law or regulation.
‘‘(4) In this subsection, the term ‘an employee of a non-
appropriated fund instrumentality’ means an employee de-
scribed in section 2105(c) of title 5.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘2494. Uniform funding and management of morale, welfare, and recreation pro-
grams.’’.
Subtitle D—Workplace and Depot
Issues
SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION
WITH REQUIRED STUDIES FOR CONVERSION
OF COMMERCIAL OR INDUSTRIAL TYPE FUNC-
TIONS TO CONTRACTOR PERFORMANCE.
Subsection (c) of section 2461 of title 10, United States
Code, is amended to read as follows:
‘‘(c) SUBMISSION OF ANALYSIS RESULTS.—(1) Upon
the completion of an analysis of a commercial or industrial
type function described in subsection (a) for possible change
to performance by the private sector, the Secretary of De-
fense shall submit to Congress a report containing the re-
sults of the analysis, including the results of the examina-
tions required by subsection (b)(3).
‘‘(2) The report shall also contain the following:
‘‘(A) The date when the analysis of the function
was commenced.
‘‘(B) The Secretary’s certification that the Gov-
ernment calculation of the cost of performance of the
function by Department of Defense civilian employees
is based on an estimate of the most cost effective man-
ner for performance of the function by Department of
Defense civilian employees.
‘‘(C) The number of Department of Defense civil-
ian employees who were performing the function when
the analysis was commenced and the number of such
employees whose employment was or will be termi-
nated or otherwise affected by changing to perform-
ance of the function by the private sector or by imple-
mentation of the most efficient organization of the
function.
‘‘(D) The Secretary’s certification that the fac-
tors considered in the examinations performed under
subsection (b)(3), and in the making of the decision
regarding changing to performance of the function by
the private sector or retaining performance in the
most efficient organization of the function, did not in-
clude any predetermined personnel constraint or limi-
tation in terms of man years, end strength, full-time
equivalent positions, or maximum number of employ-
ees.
‘‘(E) A statement of the potential economic effect
of implementing the decision regarding changing to
performance of the function by the private sector or
retaining performance in the most efficient organiza-
tion of the function on each affected local community,
as determined in the examination under subsection
(b)(3)(B)(ii).
‘‘(F) A schedule for completing the change to per-
formance of the function by the private sector or im-
plementing the most efficient organization of the func-
tion
‘‘(G) In the case of a commercial or industrial
type function performed at a Center of Industrial and
Technical Excellence designated under section 2474(a)
of this title or an Army ammunition plant, a descrip-
tion of the effect that the manner of performance of
the function, and administration of the resulting con-
tract if any, will have on the overhead costs of the
center or ammunition plant, as the case may be.
‘‘(H) The Secretary’s certification that the entire
analysis is available for examination.
‘‘(3)(A) If a decision is made to change the commercial
or industrial type function that was the subject of the anal-
ysis to performance by the private sector, the change of the
function to contractor performance may not begin until
after the submission of the report required by paragraph
(1).
‘‘(B) Notwithstanding subparagraph (A), in the case
of a commercial or industrial type function performed at
a Center of Industrial and Technical Excellence designated
under section 2474(a) of this title or an Army ammunition
plant, the change of the function to contractor performance
may not begin until at least 60 days after the submission
of the report.’’.
SEC. 332. WAIVER AUTHORITY REGARDING PROHIBITION
ON CONTRACTS FOR PERFORMANCE OF SE-
CURITY-GUARD FUNCTIONS.
Section 2465 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection:
‘‘(c) The Secretary of Defense or the Secretary of a
military department may waive the prohibition under sub-
section (a) regarding contracting for the performance of se-
curity-guard functions at a military installation or facility
under the jurisdiction of the Secretary if such functions—
‘‘(1) are or will be performed by members of the
armed forces in the absence of a waiver; or
‘‘(2) were not performed at the installation or fa-
cility before September 11, 2001.’’.
SEC. 333. EXCLUSION OF CERTAIN EXPENDITURES FROM
PERCENTAGE LIMITATION ON CONTRACTING
FOR PERFORMANCE OF DEPOT-LEVEL MAIN-
TENANCE AND REPAIR WORKLOADS.
Section 2474(f)(2) of title 10, United States Code, is
amended by striking ‘‘for fiscal years 2002 through 2005’’.
SEC. 334. REPEAL OF OBSOLETE PROVISION REGARDING
DEPOT-LEVEL MAINTENANCE AND REPAIR
WORKLOADS THAT WERE PERFORMED AT
CLOSED OR REALIGNED MILITARY INSTALLA-
TIONS.
(a) REPEAL.—Section 2469a of title 10, United States
Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 146 of such title is amended by
striking the item relating to section 2469a.
SEC. 335. CLARIFICATION OF REQUIRED CORE LOGISTICS
CAPABILITIES.
Section 2464(a)(3) of title 10, United States Code, is
amended by striking ‘‘those capabilities that are necessary
to maintain and repair the weapon systems’’ and inserting
‘‘those logistics capabilities (including acquisition logistics,
supply management, system engineering, maintenance, and
modification management) that are necessary to sustain the
weapon systems’’.
Subtitle E—Defense Dependents
Education
SEC. 341. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES
THAT BENEFIT DEPENDENTS OF MEMBERS
OF THE ARMED FORCES AND DEPARTMENT
OF DEFENSE CIVILIAN EMPLOYEES.
(a) CONTINUATION
OF DEPARTMENT
OF DEFENSE
PROGRAM FOR FISCAL YEAR 2003.—Of the amount author-
ized to be appropriated pursuant to section 301(5) for oper-
ation and maintenance for Defense-wide activities,
$30,000,000 shall be available only for the purpose of pro-
viding educational agencies assistance to local educational
agencies.
(b) NOTIFICATION.—Not later than June 30, 2003, the
Secretary of Defense shall notify each local educational
agency that is eligible for educational agencies assistance
for fiscal year 2003 of—
(1) that agency’s eligibility for the assistance;
and
(2) the amount of the assistance for which that
agency is eligible.
(c) DISBURSEMENT OF FUNDS.—The Secretary of De-
fense shall disburse funds made available under subsection
(a) not later than 30 days after the date on which notifica-
tion to the eligible local educational agencies is provided
pursuant to subsection (b).
(d) DEFINITIONS.—In this section:
(1) The term ‘‘educational agencies assistance’’
means assistance authorized under section 386(b) of
the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 20 U.S.C. 7703
note).
(2) The term ‘‘local educational agency’’ has the
meaning given that term in section 8013(9) of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 7713(9)).
SEC. 342. AVAILABILITY OF QUARTERS ALLOWANCE FOR
UNACCOMPANIED 
DEFENSE 
DEPARTMENT
TEACHER REQUIRED TO RESIDE ON OVER-
SEAS MILITARY INSTALLATION.
(a) AUTHORITY
TO
PROVIDE
ALLOWANCE.—Sub-
section (b) of section 7 of the Defense Department Overseas
Teachers Pay and Personnel Practices Act (20 U.S.C. 905)
is amended by adding at the end the following new sentence:
‘‘If the teacher is unaccompanied by dependents and is re-
quired to reside on a United States military installation
in an overseas area, the teacher may receive a quarters al-
lowance to reside in excess family housing at the installa-
tion notwithstanding the availability single room housing
at the installation.’’.
(b) TECHNICAL CORRECTION TO REFLECT CODIFICA-
TION.—Such section is further amended by striking ‘‘the
Act of June 26, 1930 (5 U.S.C. 118a)’’ both places it ap-
pears and inserting ‘‘section 5912 of title 5, United States
Code’’.
SEC. 343. PROVISION OF SUMMER SCHOOL PROGRAMS FOR
STUDENTS WHO ATTEND DEFENSE DEPEND-
ENTS’ EDUCATION SYSTEM.
Section 1402(d) of the Defense Dependents’ Education
Act of 1978 (20 U.S.C. 921(d)) is amended by striking
paragraph (2) and inserting the following new paragraph
(2):
‘‘(2) Individuals eligible to receive a free public edu-
cation under subsection (a) may enroll without charge in
a summer school program offered under this subsection.
Students who are required under section 1404 to pay tui-
tion to enroll in a school of the defense dependents’ edu-
cation system shall also be charged a fee, at a rate estab-
lished by the Secretary, to attend a course offered as part
of the summer school program.’’.
Subtitle F—Information Technology
SEC. 351. NAVY-MARINE CORPS INTRANET CONTRACT.
(a) AUTHORIZED DURATION OF CONTRACT.—Section
814 of the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001, as enacted into law by Public
Law 106–398 (114 Stat. 1654A–215) and amended by sec-
tion 362 of Public Law 107–107 (115 Stat. 1065), is
amended—
(1) by redesignating subsection (i) as subsection
(j); and
(2) by inserting after subsection (h) the following
new subsection (i):
‘‘(i) DURATION OF NAVY-MARINE CORPS INTRANET
CONTRACT.—Notwithstanding section 2306c of title 10,
United States Code, the Navy-Marine Corps Intranet con-
tract may have a term in excess of five years, but not more
than seven years.’’.
(b) CLARIFICATION OF PHASED IMPLEMENTATION RE-
QUIREMENTS.—Subsection (b) of such section is amended
in paragraphs (2) and (3) by striking ‘‘provided’’ each
place it appears and inserting ‘‘ordered’’.
SEC. 352. ANNUAL SUBMISSION OF INFORMATION ON NA-
TIONAL SECURITY AND INFORMATION TECH-
NOLOGY CAPITAL ASSETS.
(a) REQUIREMENT TO SUBMIT INFORMATION.—Not
later than the date that the President submits the budget
of the United States Government to Congress each year, the
Secretary of Defense shall submit to Congress a description
of, and relevant budget information on, each information
technology and national security capital asset of the De-
partment of Defense that—
(1) has an estimated life cycle cost (as computed
in fiscal year 2003 constant dollars), in excess of
$120,000,000; and
(2) has a cost for the fiscal year in which the de-
scription is submitted (as computed in fiscal year
2003 constant dollars) in excess of $30,000,000.
(b) INFORMATION TO BE INCLUDED.—The description
submitted under subsection (a) shall include, with respect
to each such capital asset and national security system—
(1) the name and identifying acronym;
(2) the date of initiation;
(3) a summary of performance measurements
and metrics;
(4) the total amount of funds, by appropriation
account, appropriated and obligated for prior fiscal
years, with a specific breakout of such information for
the two preceding fiscal years;
(5) the funds, by appropriation account, re-
quested for that fiscal year;
(6) each prime contractor and the work to be
performed;
(7) a description of program management and
management oversight;
(8) the original baseline cost and most current
baseline information; and
(9) a description of compliance with the provi-
sions enacted in the Government Performance Results
Act of 1993 (Public Law 103–62; 107 Stat. 285) and
the Clinger–Cohen Act of 1996 (division D of Public
Law 104–106; 110 Stat. 642).
(c) ADDITIONAL INFORMATION TO BE INCLUDED FOR
CERTAIN SYSTEMS.—(1) For each information technology
and national security system of the Department of Defense
that has a cost for the fiscal year in excess of $2,000,000,
the Secretary shall identify that system by name, function,
and total funds requested for the system.
(2) For each information technology and national se-
curity system of the Department of Defense that has a cost
for the fiscal year in excess of $10,000,000, the Secretary
shall identify that system by name, function, and total
funds requested (by appropriation account) for that fiscal
year, the funds appropriated for the preceding fiscal year,
and the funds estimated to be requested for the next fiscal
year.
(d) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger–Cohen Act of 1996 (40 U.S.C. 1401(3)).
(2) The term ‘‘capital asset’’ has the meaning
given that term in Office of Management and Budget
Circular A–11.
(3) The term ‘‘national security system’’ has the
meaning given that term in section 5142 of the
Clinger–Cohen Act of 1996 (40 U.S.C. 1452).
SEC. 353. IMPLEMENTATION OF POLICY REGARDING CER-
TAIN COMMERCIAL OFF-THE-SHELF INFOR-
MATION TECHNOLOGY PRODUCTS.
The Secretary of Defense shall ensure that—
(1) the Department of Defense implements the
policy established by the Committee on National Se-
curity Systems (formerly the National Security Tele-
communications and Information Systems Security
Committee) that limits the acquisition by the Federal
Government of all commercial off-the-shelf informa-
tion assurance and information assurance-enabled in-
formation technology products to those products that
have been evaluated and validated in accordance with
appropriate criteria, schemes, or programs; and
(2) implementation of such policy includes uni-
form enforcement procedures.
SEC. 354. INSTALLATION AND CONNECTION POLICY AND
PROCEDURES REGARDING DEFENSE SWITCH
NETWORK.
(a) ESTABLISHMENT OF POLICY AND PROCEDURES.—
Not later than 180 days after the date of the enactment of
this Act, the Secretary of Defense shall establish clear and
uniform policy and procedures, applicable to the military
departments and Defense Agencies, regarding the installa-
tion and connection of telecom switches to the Defense
Switch Network.
(b) ELEMENTS OF POLICY AND PROCEDURES.—The
policy and procedures shall address at a minimum the fol-
lowing:
(1) Clear interoperability and compatibility re-
quirements for certifying, installing, and connecting
telecom switches to the Defense Switch Network.
(2) Current, complete, and enforceable testing,
validation, and certification procedures needed to en-
sure the interoperability and compatibility require-
ments are satisfied.
(c) EXCEPTIONS.—(1) The Secretary of Defense may
specify certain circumstances in which—
(A) the requirements for testing, validation, and
certification of telecom switches may be waived; or
(B) interim authority for the installation and
connection of telecom switches to the Defense Switch
Network may be granted.
(2) Only the Assistant Secretary of Defense for Com-
mand, Control, Communications, and Intelligence, after
consultation with the Chairman of the Joint Chiefs of Staff,
may approve a waiver or grant of interim authority under
paragraph (1).
(d) INVENTORY OF DEFENSE SWITCH NETWORK.—The
Secretary of Defense shall prepare and maintain an inven-
tory of all telecom switches that, as of the date on which
the Secretary issues the policy and procedures—
(1) are installed or connected to the Defense
Switch Network; but
(2) have not been tested, validated, and certified
by the Defense Information Systems Agency (Joint
Interoperability Test Center).
(e) TELECOM SWITCH DEFINED.—In this section, the
term ‘‘telecom switch’’ means hardware or software designed
to send and receive voice, data, and video signals across
a network.
Subtitle G—Other Matters
SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLO-
CATION OF FUNDS WITHIN OPERATION AND
MAINTENANCE BUDGET SUBACTIVITIES.
(a) DESIGNATION OF RECIPIENTS.—Subsection (a) of
section 228 of title 10, United States Code, is amended by
striking ‘‘to Congress’’ and inserting ‘‘to the congressional
defense committees’’.
(b) CONGRESSIONAL
DEFENSE
COMMITTEES
DE-
FINED.—Subsection (e) of such section is amended—
(1) by striking ‘‘(e) O&M BUDGET ACTIVITY DE-
FINED.—For purposes of this section, the’’ and insert-
ing the following:
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The’’; and
(2) by adding at the end the following:
‘‘(2) The term ‘congressional defense committees’
means the Committee on Armed Services and the
Committee on Appropriations of the Senate and the
Committee on Armed Services and the Committee on
Appropriations of the House of Representatives.’’.
SEC. 362. MINIMUM DEDUCTION FROM PAY OF CERTAIN
MEMBERS OF THE ARMED FORCES TO SUP-
PORT ARMED FORCES RETIREMENT HOME.
Section 1007(i) of title 37, United States Code, is
amended—
(1) in paragraph (1), by striking ‘‘an amount
(determined under paragraph (3)) not to exceed
$1.00.’’ and inserting ‘‘an amount equal to $1.00 and
such additional amount as may be determined under
paragraph (3).’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the amount’’ in the first
sentence and inserting ‘‘the additional amount’’;
and
(B) by striking ‘‘The amount’’ in the second
sentence and inserting ‘‘The additional amount’’.
SEC. 363. CONDITION ON CONVERSION OF DEFENSE SECU-
RITY SERVICE TO A WORKING CAPITAL FUND-
ED ENTITY.
The Secretary of Defense may not convert the Defense
Security Service to a working capital funded entity of the
Department of Defense unless the Secretary submits, in ad-
vance, to the Committee on Armed Services of the House
of Representatives and the Committee on Armed Services
of the Senate a certification that the Defense Security Serv-
ice has the financial systems in place to fully support oper-
ation of the Defense Security Service as a working capital
funded entity under section 2208 of title 10, United States
Code.
SEC. 364. CONTINUATION OF ARSENAL SUPPORT PROGRAM
INITIATIVE.
(a) EXTENSION THROUGH FISCAL YEAR 2004.—Sub-
section (a) of section 343 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106–398; 114 Stat. 1654A–65) is
amended by striking ‘‘and 2002’’ and inserting ‘‘through
2004’’.
(b) REPORTING REQUIREMENTS.—Subsection (g) of
such section is amended—
(1) in paragraph (1), by striking ‘‘2002’’ and in-
serting ‘‘2004’’; and
(2) in paragraph (2), by striking the first sen-
tence and inserting the following new sentence: ‘‘Not
later than July 1, 2003, the Secretary of the Army
shall submit to the congressional defense committees a
report on the results of the demonstration program
since its implementation, including the Secretary’s
views regarding the benefits of the program for Army
manufacturing arsenals and the Department of the
Army and the success of the program in achieving the
purposes specified in subsection (b).’’.
SEC. 365. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL
STATUS OF RESOURCES AND TRAINING SYS-
TEM, AND TRAINING RANGE INVENTORY.
(a) PLAN REQUIRED.—(1) The Secretary of Defense
shall develop a comprehensive plan for using existing au-
thorities available to the Secretary of Defense and the Secre-
taries of the military departments to address problems cre-
ated by limitations on the use of military lands, marine
areas, and airspace reserved, withdrawn, or designated for
training and testing activities by, for, or on behalf of the
Armed Forces.
(2) The plan shall include the following:
(A) Goals and milestones for tracking planned
actions and measuring progress.
(B) Projected funding requirements for imple-
menting planned actions.
(C) Designation of an office in the Office of the
Secretary of Defense and each of the military depart-
ments that will have lead responsibility for overseeing
implementation of the plan.
(3) The Secretary of Defense shall submit the plan to
Congress at the same time as the President submits the
budget for fiscal year 2004 and shall submit an annual re-
port to Congress describing the progress made in imple-
menting the plan and any additional encroachment prob-
lems.
(b) READINESS REPORTING IMPROVEMENT.—Not later
than June 30, 2003, the Secretary of Defense, using existing
measures within the authority of the Secretary, shall submit
to Congress a report on the plans of the Department of De-
fense to improve the Global Status of Resources and Train-
ing System—
(1) to better reflect the increasing challenges
units of the Armed Forces must overcome to achieve
training requirements; and
(2) to quantify the extent to which encroachment
and other individual factors are making military
lands, marine areas, and airspace less available to
support unit accomplishment of training plans and
readiness goals.
(c) TRAINING RANGE INVENTORY.—The Secretary of
Defense shall develop and maintain a training range data
bank for each of the Armed Forces—
(1) to identify all available operational training
ranges;
(2) to identify all training capacities and capa-
bilities available at each training range;
(3) to identify all current encroachment threats
or other potential limitations on training that are, or
are likely to, adversely affect training and readiness;
and
(4) to provide a point of contact for each train-
ing range.
(d) GAO EVALUATION.—(1) With respect to each re-
port submitted under this section, the Comptroller General
shall submit to Congress, within 60 days after receiving the
report, an evaluation of the report.
(e) ARMED FORCES DEFINED.—In this section, the
term ‘‘Armed Forces’’ means the Army, Navy, Air Force,
and Marine Corps.
SEC. 366. AMENDMENTS TO CERTAIN EDUCATION AND NU-
TRITION LAWS RELATING TO ACQUISITION
AND IMPROVEMENT OF MILITARY HOUSING.
(a) ELIGIBILITY FOR HEAVILY IMPACTED LOCAL EDU-
CATIONAL AGENCIES AFFECTED
BY PRIVATIZATION
OF
MILITARY HOUSING.—Section 8003(b)(2) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2)) is amended by adding at the end the following:
‘‘(H) ELIGIBILITY FOR HEAVILY IMPACTED
LOCAL
EDUCATIONAL
AGENCIES
AFFECTED
BY
PRIVATIZATION OF MILITARY HOUSING.—
‘‘(i) ELIGIBILITY.—For any fiscal year
beginning with fiscal year 2003, a heavily
impacted local educational agency that re-
ceived a basic support payment under sub-
paragraph (A) for the prior fiscal year, but
is ineligible for such payment for the cur-
rent fiscal year under subparagraph (B) or
(C), as the case may be, by reason of the
conversion of military housing units to pri-
vate housing described in clause (iii), shall
be deemed to meet the eligibility require-
ments under subparagraph (B) or (C), as
the case may be, for the period during
which the housing units are undergoing
such conversion.
‘‘(ii) 
AMOUNT
OF
PAYMENT.—The
amount of a payment to a heavily impacted
local educational agency for a fiscal year by
reason of the application of clause (i), and
calculated in accordance with subparagraph
(D) or (E) (as the case may be), shall be
based on the number of children in average
daily attendance in the schools of such
agency for the fiscal year.
‘‘(iii) CONVERSION OF MILITARY HOUS-
ING
UNITS
TO
PRIVATE
HOUSING
DE-
SCRIBED.—For purposes of clause (i), ‘con-
version of military housing units to private
housing’ means the conversion of military
housing units to private housing units pur-
suant to subchapter IV of chapter 169 of
title 10, United States Code, or pursuant to
any other related provision of law.’’.
(b) EXCLUSION OF CERTAIN MILITARY BASIC ALLOW-
ANCES FOR HOUSING FOR DETERMINATION OF ELIGIBILITY
FOR FREE AND REDUCED PRICE MEALS.—Section 9(b)(3)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758(b)(3)) is amended by adding at the end the
following: ‘‘For the one-year period beginning on the date
of the enactment of this sentence, the amount of a basic al-
lowance provided under section 403 of title 37, United
States Code, on behalf of an individual who is a member
of the uniformed services for housing that is acquired or
constructed under the authority of subchapter IV of chapter
169 of title 10, United States Code, or any other related
provision of law, shall not be considered to be income for
purposes of determining the eligibility of a child of the indi-
vidual for free or reduced price lunches under this Act.’’.
TITLE IV—MILITARY PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 2003, as follows:
(1) The Army, 484,800.
(2) The Navy, 379,457.
(3) The Marine Corps, 175,000.
(4) The Air Force, 360,795.
SEC. 402. REVISION IN PERMANENT END STRENGTH MIN-
IMUM LEVELS.
(a) REVISED
END
STRENGTH
FLOORS.—Section
691(b) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘480,000’’ and
inserting ‘‘484,800’’;
(2) in paragraph (2), by striking ‘‘376,000’’ and
inserting ‘‘379,457’;
(3) in paragraph (3), by striking ‘‘172,600’’ and
inserting ‘‘175,000’’; and
(4) in paragraph (4), by striking ‘‘358,800’’ and
inserting ‘‘360,795’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2002, or the date
of the enactment of this Act, whichever is later.
SEC. 403. AUTHORITY FOR MILITARY DEPARTMENT SECRE-
TARIES 
TO 
INCREASE 
ACTIVE-DUTY 
END
STRENGTHS BY UP TO 1 PERCENT.
(a) SERVICE SECRETARY AUTHORITY.—Section 115 of
title 10, United States Code, is amended by inserting after
subsection (e) the following new subsection:
‘‘(f) Upon determination by the Secretary of a mili-
tary department that such action would enhance manning
and readiness in essential units or in critical specialties
or ratings, the Secretary may increase the end strength au-
thorized pursuant to subsection (a)(1)(A) for a fiscal year
for the armed force under the jurisdiction of that Secretary
or, in the case of the Secretary of the Navy, for any of the
armed forces under the jurisdiction of that Secretary. Any
such increase for a fiscal year—
‘‘(1) shall be by a number equal to not more
than 1 percent of such authorized end strength; and
‘‘(2) shall be counted as part of the increase for
that armed force for that fiscal year authorized under
subsection (c)(1).’’.
(b) EFFECTIVE DATE.—Subsection (f) of section 115
of title 10, United States Code, as added by subsection (a),
shall take effect on October 1, 2002, or the date of the enact-
ment of this Act, whichever is later.
SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.
(a) EXCLUSION OF SENIOR MILITARY ASSISTANT TO
THE SECRETARY OF DEFENSE FROM LIMITATION ON AC-
TIVE DUTY OFFICERS IN GRADES ABOVE MAJOR GENERAL
AND REAR ADMIRAL.—Effective on the date specified in
subsection (e), section 525(b) of title 10, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(8) An officer while serving in a position designated
by the Secretary of Defense as Senior Military Assistant
to the Secretary of Defense, if serving in the grade of lieu-
tenant general or vice admiral, is in addition to the number
that otherwise would be permitted for that officer’s armed
force for that grade under paragraph (1) or (2). Only one
officer may be designated as Senior Military Assistant to
the Secretary of Defense for purposes of this paragraph.’’.
(b) INCREASE IN NUMBER OF LIEUTENANT GENERALS
AUTHORIZED FOR THE MARINE CORPS.—Effective on the
date specified in subsection (e), paragraph (2)(B) of such
section is amended by striking ‘‘16.2 percent’’ and inserting
‘‘17.5 percent’’.
(c) GRADE OF CHIEF OF VETERINARY CORPS OF THE
ARMY.—(1) Effective on the date specified in subsection (e),
chapter 307 of such title is amended by adding at the end
the following new section:
‘‘§ 3084. Chief of Veterinary Corps: grade
‘‘The Chief of the Veterinary Corps of the Army serves
in the grade of brigadier general. An officer appointed to
that position who holds a lower grade shall be appointed
in the grade of brigadier general.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘3084. Chief of Veterinary Corps: grade.’’.
(d) REVIEW OF ACTIVE DUTY AND RESERVE GENERAL
AND FLAG OFFICER AUTHORIZATIONS.—(1) The Secretary
of Defense shall submit to Congress a report containing any
recommendations of the Secretary (together with the ration-
ale of the Secretary for the recommendations) concerning
the following:
(A) Revision of the limitations on general and
flag officer grade authorizations and distribution in
grade prescribed by sections 525, 526, and 12004 of
title 10, United States Code.
(B) Statutory designation of the positions and
grades of any additional general and flag officers in
the commands specified in chapter 1006 of title 10,
United States Code, and the reserve component offices
specified in sections 3038, 5143, 5144, and 8038 of
such title.
(2) The provisions of subsection (b) through (e) of sec-
tion 1213 of the National Defense Authorization Act for Fis-
cal Year 1997 (Public Law 104–201; 110 Stat. 2694) shall
apply to the report under paragraph (1) in the same man-
ner as they applied to the report required by subsection (a)
of that section.
(e) EFFECTIVE DATE.—The amendments made by sub-
sections (a), (b), and (c) shall take effect on the date of the
receipt by Congress of the report required by subsection (d).
SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING
TO MANAGEMENT OF NUMBERS OF GENERAL
AND FLAG OFFICERS IN CERTAIN GRADES.
(a) SENIOR
JOINT
OFFICER
POSITIONS.—Section
604(c) of title 10, United States Code, is amended by strik-
ing ‘‘September 30, 2003’’ and inserting ‘‘December 31,
2004’’.
(b) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN
GENERAL
AND
FLAG
OFFICER
GRADES.—Section
525(b)(5)(C) of such title is amended by striking ‘‘Sep-
tember 30, 2003’’ and inserting ‘‘December 31, 2004’’.
(c) AUTHORIZED STRENGTH FOR GENERAL AND FLAG
OFFICERS ON ACTIVE DUTY.—Section 526(b)(3) of such
title is amended by striking ‘‘October 1, 2002’’ and insert-
ing ‘‘December 31, 2004’’.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve com-
ponents as of September 30, 2003, as follows:
(1) The Army National Guard of the United
States, 350,000.
(2) The Army Reserve, 205,000.
(3) The Naval Reserve, 87,800.
(4) The Marine Corps Reserve, 39,558.
(5) The Air National Guard of the United
States, 106,600.
(6) The Air Force Reserve, 75,600.
(7) The Coast Guard Reserve, 9,000.
(b) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve compo-
nent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such
component which are on active duty (other than for
training) at the end of the fiscal year; and
(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be proportionately in-
creased by the total authorized strengths of such units and
by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
Within the end strengths prescribed in section 411(a),
the reserve components of the Armed Forces are authorized,
as of September 30, 2003, the following number of Reserves
to be serving on full-time active duty or full-time duty, in
the case of members of the National Guard, for the purpose
of organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United
States, 24,562.
(2) The Army Reserve, 14,070.
(3) The Naval Reserve, 14,572.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United
States, 11,697.
(6) The Air Force Reserve, 1,498.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS
(DUAL STATUS).
The minimum number of military technicians (dual
status) as of the last day of fiscal year 2003 for the reserve
components of the Army and the Air Force (notwith-
standing section 129 of title 10, United States Code) shall
be the following:
(1) For the Army National Guard of the
United States, 24,102.
(2) For the Army Reserve, 6,599.
(3) For the Air National Guard of the
United States, 22,495.
(4) For the Air Force Reserve, 9,911.
SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STA-
TUS TECHNICIANS.
(a) ARMY.—The number of non-dual status techni-
cians employed by the reserve components of the Army as
of September 30, 2003, may not exceed the following:
(1) For the Army Reserve, 995.
(2) For the Army National Guard of the United
States, 1,600, to be counted within the limitation
specified in section 10217(c)(2) of title 10, United
States Code.
(b) AIR FORCE.—The number of non-dual status tech-
nicians employed by the reserve components of the Army
and the Air Force as of September 30, 2003, may not exceed
the following:
(1) For the Air Force Reserve, 90.
(2) For the Air National Guard of the United
States, 350, to be counted within the limitation speci-
fied in section 10217(c)(2) of title 10, United States
Code.
(c) NON-DUAL STATUS TECHNICIANS DEFINED.—In
this section, the term ‘‘non-dual status technician’’ has the
meaning given that term in section 10217(a) of title 10,
United States Code.
(d) TECHNICAL AMENDMENTS.—Effective October 1,
2002, section 10217(c)(2) of title 10, United States Code,
is amended—
(1) in the first sentence, by striking ‘‘Effective
October 1, 2002, the’’ and inserting ‘‘The’’; and
(2) in the second sentence, by striking ‘‘after the
preceding sentence takes effect’’.
Subtitle C—Authorization of
Appropriations
SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
2003 a total of $93,725,028,000. The authorization in the
preceding sentence supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for
fiscal year 2003.
TITLE V—MILITARY PERSONNEL
POLICY
SEC. 
501. 
INCREASE 
IN 
NUMBER 
OF 
DEPUTY
COMMANDANTS OF THE MARINE CORPS.
Section 5045 of title 10, United States Code, is amend-
ed by striking ‘‘five’’ and inserting ‘‘six’’.
SEC. 502. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER
AUTHORITY FOR OFFICERS APPOINTED TO A
RESERVE CHIEF OR GUARD DIRECTOR POSI-
TION.
(a) WAIVER
OF REQUIREMENT
FOR SIGNIFICANT
JOINT
DUTY
EXPERIENCE.—Sections 
3038(b)(4),
5143(b)(4), 5144(b)(4), 8038(b)(4), and 10506(a)(3)(D) of
title 10, United States Code, are each amended by striking
‘‘October 1, 2003’’ and inserting ‘‘December 31, 2004’’.
(b) REPORT ON FUTURE IMPLEMENTATION OF RE-
QUIREMENT.—Not later than one year after the date of the
enactment of this Act, 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 Representa-
tives a report setting forth the steps being taken (and pro-
posed to be taken) by the Secretary, the Secretaries of the
military departments, and the Chairman of the Joint Chiefs
of Staff to ensure that no further extension of the waiver
authority under the sections amended by subsection (a) is
required and that after December 31, 2004, appointment
of officers to serve in the positions covered by those sections
shall be made from officers with the requisite joint duty ex-
perience.
Subtitle B—Reserve Component
Management
SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH AC-
COUNTING AND MANAGEMENT AND OTHER
ISSUES.
(a) COMPTROLLER
GENERAL
ASSESSMENTS.—Not
later than one year after the date of the enactment of this
Act, the Comptroller General shall submit to Congress a re-
port on management of the National Guard. The report
shall include the following:
(1) The Comptroller General’s assessment of the
effectiveness of the implementation of Department of
Defense plans for improving management and ac-
counting for personnel strengths in the National
Guard, including an assessment of the process that
the Department of Defense, the National Guard Bu-
reau, the Army National Guard and State-level Na-
tional Guard leadership, and leadership in the other
reserve components have for identifying and address-
ing in a timely manner specific units in which non-
participation rates are significantly in excess of the
established norms.
(2) The Comptroller General’s assessment of the
effectiveness of the process for Federal recognition of
senior National Guard officers and recommendations
for improvement to that process.
(3) The Comptroller General’s assessment of the
process for, and the nature and extent of, the admin-
istrative or judicial corrective action taken by the
Secretary of Defense, the Secretary of the Army, and
the Secretary of the Air Force as a result of Inspector
General investigations or other investigations in
which allegations against senior National Guard offi-
cers are substantiated in whole or in part.
(4) The Comptroller General’s determination of
the effectiveness of the Federal protections provided
for members or employees of the National Guard who
report allegations of waste, fraud, abuse, or mis-
management and the nature and extent to which cor-
rective action is taken against those in the National
Guard who retaliate against such members or employ-
ees.
(b) SECRETARY OF DEFENSE REPORT ON DIFFERENT
ARMY AND AIR FORCE PROCEDURES.—Not later than six
months after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to Congress a report on the
differing Army and Air Force policies for taking adverse
administrative actions against National Guard officers in
a State status. The report shall include the Secretary’s de-
termination as to whether changes should be made in those
policies, especially through requiring the Air Force to adopt
the same policy as the Army for such administrative ac-
tions.
SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD
WHEN NOT IN FEDERAL SERVICE.
(a) MANNER OF PRESCRIBING PUNISHMENTS.—Sec-
tion 326 of title 32, United States Code, is amended by add-
ing at the end the following new sentence: ‘‘Punishments
shall be as provided by the laws of the respective States and
Territories, Puerto Rico, and the District of Columbia.’’.
(b) CONVENING AUTHORITY.—Section 327 of such title
is amended to read as follows:
‘‘§ 327. Courts-martial of National Guard not in Fed-
eral service: convening authority
‘‘(a) In the National Guard not in Federal service,
general, special, and summary courts-martial may be con-
vened as provided by the laws of the States and Territories,
Puerto Rico, and the District of Columbia.
‘‘(b) In addition to convening authorities as provided
under subsection (a), in the National Guard not in Federal
service—
‘‘(1) general courts-martial may be convened by
the President;
‘‘(2) special courts-martial may be convened—
‘‘(A) by the commanding officer of a garri-
son, fort, post, camp, air base, auxiliary air
base, or other place where troops are on duty; or
‘‘(B) by the commanding officer of a divi-
sion, brigade, regiment, wing, group, detached
battalion, separate squadron, or other detached
command; and
‘‘(3) 
summary 
courts-martial 
may 
be
convened—
‘‘(A) by the commanding officer of a garri-
son, fort, post, camp, air base, auxiliary air
base, or other place where troops are on duty; or
‘‘(B) by the commanding officer of a divi-
sion, brigade, regiment, wing, group, detached
battalion, detached squadron, detached company,
or other detachment.’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 3 of such title is amend-
ed to read as follows:
‘‘327. Courts-martial of National Guard not in Federal service: convening author-
ity.’’.
(c) REPEAL OF SUPERSEDED AND OBSOLETE PROVI-
SIONS.—
(1) Sections 328, 329, 330, 331, 332, and 333 of
title 32, United States Code, are repealed.
(2) The table of sections at the beginning of
chapter 3 of such title is amended by striking the
items relating to sections 328, 329, 330, 331, 332, and
333.
(d) PREPARATION OF MODEL STATE CODE OF MILI-
TARY JUSTICE AND MODEL STATE MANUAL FOR COURTS-
MARTIAL.—(1) The Secretary of Defense shall prepare, for
consideration for enactment by the States, a model State
code of military justice and a model State manual of courts-
martial for use with respect to the National Guard not in
Federal service. Both such models shall be consistent with
the recommendations contained in the report, issued in
1998, by the panel known as the Department of Defense
Panel to Study Military Justice in the National Guard not
in Federal Service.
(2) The Secretary shall ensure that adequate support
for the preparation of such model State code and model
State manual (including the detailing of attorneys and
other staff) is provided by the General Counsel of the De-
partment of Defense, the Secretary of the Army, the Sec-
retary of the Air Force, and the Chief of the National Guard
Bureau.
(3) If the amounts available to the Chief of the Na-
tional Guard Bureau are not adequate for the costs required
to provide support under paragraph (2) (including costs for
increased pay when members of the National Guard are or-
dered to active duty, cost of detailed attorneys and other
staff, allowances, and travel expenses), the Secretary shall,
upon request of the Chief of the Bureau, provide such addi-
tional amounts as are necessary.
(4) Not later than one year after the date of the enact-
ment of this Act, the Secretary shall submit to the Com-
mittee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives a report
on the implementation of this subsection. The report shall
include proposals in final form of both the model State code
and the model State manual required by paragraph (1) and
shall set forth the efforts being made to present those pro-
posals to the States for their consideration for enactment.
(5) In this subsection, the term ‘‘State’’ includes the
District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, and Guam.
SEC. 513. MATCHING FUNDS REQUIREMENTS UNDER NA-
TIONAL GUARD YOUTH CHALLENGE PRO-
GRAM.
Effective October 1, 2002, subsection (d) of section 509
of title 32, United States Code, is amended to read as fol-
lows:
‘‘(d) MATCHING FUNDS REQUIRED.—The amount of
assistance provided under this section to a State program
of the National Guard Challenge Program for a fiscal year
may not exceed 75 percent of the costs of operating the State
program during that fiscal year.’’.
Subtitle C—Reserve Component
Officer Personnel Policy
SEC. 521. EXEMPTION FROM ACTIVE STATUS STRENGTH
LIMITATION FOR RESERVE COMPONENT GEN-
ERAL AND FLAG OFFICERS SERVING ON AC-
TIVE DUTY IN CERTAIN JOINT DUTY ASSIGN-
MENTS DESIGNATED BY THE CHAIRMAN OF
THE JOINT CHIEFS OF STAFF.
Section 12004 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(f)(1) A general or flag officer who is on active duty
but who is not counted under section 526(a) of this title
by reason of section 526(b)(2)(B) of this title shall also be
excluded from being counted under subsection (a).
‘‘(2) This subsection shall cease to be effective on the
date specified in section 526(b)(3) of this title.’’.
SEC. 522. ELIGIBILITY FOR CONSIDERATION FOR PRO-
MOTION TO GRADE OF MAJOR GENERAL FOR
CERTAIN RESERVE COMPONENT BRIGADIER
GENERALS WHO DO NOT OTHERWISE QUAL-
IFY FOR CONSIDERATION FOR PROMOTION
UNDER THE ONE-YEAR RULE.
Section 14301(g) of title 10, United States Code, is
amended to read as follows:
‘‘(g) BRIGADIER GENERALS.—(1) An officer who is a
reserve component brigadier general of the Army or the Air
Force who is not eligible for consideration for promotion
under subsection (a) because the officer is not on the reserve
active status list (as required by paragraph (1) of that sub-
section for such eligibility) is nevertheless eligible for consid-
eration for promotion to the grade of major general by a
promotion board convened under section 14101(a) of this
title if—
‘‘(A) as of the date of the convening of the pro-
motion board, the officer has been in an inactive sta-
tus for less than one year; and
‘‘(B) immediately before the date of the officer’s
most recent transfer to an inactive status, the officer
had continuously served on the reserve active status
100
list or the active-duty list (or a combination of the re-
serve active status list and the active-duty list) for at
least one year.
‘‘(2) An officer who is a reserve component brigadier
general of the Army or the Air Force who is on the reserve
active status list but who is not eligible for consideration
for promotion under subsection (a) because the officer’s serv-
ice does not meet the one-year-of-continuous-service require-
ment under paragraph (2) of that subsection is nevertheless
eligible for consideration for promotion to the grade of
major general by a promotion board convened under section
14101(a) of this title if—
‘‘(A) the officer was transferred from an inactive
status to the reserve active status list during the one-
year period preceding the date of the convening of the
promotion board;
‘‘(B) immediately before the date of the officer’s
most recent transfer to an active status, the officer
had been in an inactive status for less than one year;
and
‘‘(C) immediately before the date of the officer’s
most recent transfer to an inactive status, the officer
had continuously served for at least one year on the
reserve active status list or the active-duty list (or a
101
combination of the reserve active status list and the
active-duty list).’’.
SEC. 523. RETENTION OF PROMOTION ELIGIBILITY FOR RE-
SERVE COMPONENT GENERAL AND FLAG OF-
FICERS TRANSFERRED TO AN INACTIVE STA-
TUS.
Section 14317 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(f) EFFECT
OF TRANSFER
OF OFFICERS
IN PAY
GRADE O–7 TO INACTIVE STATUS.—Notwithstanding sub-
section (a), if a reserve officer on the active-status list in
the grade of brigadier general or rear admiral (lower half)
is transferred to an inactive status after having been rec-
ommended for promotion to the grade of major general or
rear admiral under this chapter, or after having been found
qualified for Federal recognition in the grade of major gen-
eral under title 32, but before being promoted, the officer
shall retain promotion eligibility and, if otherwise quali-
fied, may be promoted to the higher grade after returning
to an active status.’’.
102
SEC. 524. AUTHORITY FOR LIMITED EXTENSION OF MED-
ICAL DEFERMENT OF MANDATORY RETIRE-
MENT OR SEPARATION FOR RESERVE OFFI-
CERS.
(a) DEFERMENT OF RETIREMENT OR SEPARATION FOR
MEDICAL REASONS.—Chapter 1407 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 14519. Deferment of retirement or separation for
medical reasons
‘‘(a) If the Secretary of the military department con-
cerned determines that the evaluation of the physical condi-
tion of a Reserve officer and determination of the officer’s
entitlement to retirement or separation for physical dis-
ability require hospitalization or medical observation and
that such hospitalization or medical observation cannot be
completed with confidence in a manner consistent with the
officer’s well-being before the date on which the officer would
otherwise be required to be separated, retired, or transferred
to the Retired Reserve under this title, the Secretary may
defer the separation, retirement, or transfer of the officer
under this title.
‘‘(b) A deferral under subsection (a) of separation, re-
tirement, or transfer to the Retired Reserve may not extend
for more than 30 days after completion of the evaluation
requiring hospitalization or medical observation.’’.
103
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘14519. Deferment of retirement or separation for medical reasons.’’.
Subtitle D—Education and
Training
SEC. 531. AUTHORITY FOR PHASED INCREASE TO 4,400 IN
AUTHORIZED STRENGTHS FOR THE SERVICE
ACADEMIES.
(a) MILITARY ACADEMY.—Section 4342 of title 10,
United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following: ‘‘or
such higher number as may be prescribed by the Sec-
retary of the Army under subsection (j)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(j)(1) Beginning with the 2003–2004 academic year,
the Secretary of the Army may prescribe annual increases
in the cadet strength limit in effect under subsection (a).
For any academic year, any such increase shall be by no
more than 100 cadets or such lesser number as applies
under paragraph (3) for that year. Such annual increases
may be prescribed until the cadet strength limit is 4,400.
However, no increase may be prescribed for any academic
year after the 2007–2008 academic year.
104
‘‘(2) Any increase in the cadet strength limit under
paragraph (1) with respect to an academic year shall be
prescribed not later than the date on which the budget of
the President is submitted to Congress under section 1105
of title 31 for the fiscal year beginning in the same year
as the year in which that academic year begins. Whenever
the Secretary prescribes such an increase, the Secretary
shall submit to Congress a notice in writing of the increase.
The notice shall state the amount of the increase in the cadet
strength limit and the new cadet strength limit, as so in-
creased, and the amount of the increase in Senior Army
Reserve Officers’ Training Corps enrollment under each of
sections 2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the cadet strength limit for an academic year may not
exceed the increase (if any) for the preceding academic year
in the total number of cadets enrolled in the Army Senior
Reserve Officers’ Training Corps program under chapter
103 of this title who have entered into an agreement under
section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘cadet strength limit’
means the authorized maximum strength of the Corps of
Cadets of the Academy.’’.
(b) NAVAL ACADEMY.—Section 6954 of title 10, United
States Code, is amended—
105
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following: ‘‘or
such higher number as may be prescribed by the Sec-
retary of the Navy under subsection (h)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(h)(1) Beginning with the 2003–2004 academic year,
the Secretary of the Navy may prescribe annual increases
in the midshipmen strength limit in effect under subsection
(a). For any academic year, any such increase shall be by
no more than 100 midshipmen or such lesser number as
applies under paragraph (3) for that year. Such annual
increases may be prescribed until the midshipmen strength
limit is 4,400. However, no increase may be prescribed for
any academic year after the 2007–2008 academic year.
‘‘(2) Any increase in the midshipmen strength limit
under paragraph (1) with respect to an academic year shall
be prescribed not later than the date on which the budget
of the President is submitted to Congress under section 1105
of title 31 for the fiscal year beginning in the same year
as the year in which that academic year begins. Whenever
the Secretary prescribes such an increase, the Secretary
shall submit to Congress a notice in writing of the increase.
The notice shall state the amount of the increase in the mid-
shipmen strength limit and the new midshipmen strength
106
limit, as so increased, and the amount of the increase in
Senior Navy Reserve Officers’ Training Corps enrollment
under each of sections 2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the midshipmen strength limit for an academic year
may not exceed the increase (if any) for the preceding aca-
demic year in the total number of midshipmen enrolled in
the Navy Senior Reserve Officers’ Training Corps program
under chapter 103 of this title who have entered into an
agreement under section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘midshipmen strength
limit’ means the authorized maximum strength of the Bri-
gade of Midshipmen.’’.
(c) AIR FORCE ACADEMY.—Section 9342 of title 10,
United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following: ‘‘or
such higher number as may be prescribed by the Sec-
retary of the Air Force under subsection (j)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(j)(1) Beginning with the 2003–2004 academic year,
the Secretary of the Air Force may prescribe annual in-
creases in the cadet strength limit in effect under subsection
(a). For any academic year, any such increase shall be by
107
no more than 100 cadets or such lesser number as applies
under paragraph (3) for that year. Such annual increases
may be prescribed until the cadet strength limit is 4,400.
However, no increase may be prescribed for any academic
year after the 2007–2008 academic year.
‘‘(2) Any increase in the cadet strength limit under
paragraph (1) with respect to an academic year shall be
prescribed not later than the date on which the budget of
the President is submitted to Congress under sections 1105
of title 31 for the fiscal year beginning in the same year
as the year in which that academic year begins. Whenever
the Secretary prescribes such an increase, the Secretary
shall submit to Congress a notice in writing of the increase.
The notice shall state the amount of the increase in the cadet
strength limit and the new cadet strength limit, as so in-
creased, and the amount of the increase in Senior Air Force
Reserve Officers’ Training Corps enrollment under each of
sections 2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the cadet strength limit for an academic year may not
exceed the increase (if any) for the preceding academic year
in the total number of cadets enrolled in the Air Force Sen-
ior Reserve Officers’ Training Corps program under chap-
ter 103 of this title who have entered into an agreement
under section 2104 or 2107 of this title.
108
‘‘(4) In this subsection, the term ‘cadet strength limit’
means the authorized maximum strength of Air Force Ca-
dets of the Academy.’’.
(d) TARGET FOR INCREASES IN NUMBER OF ROTC
SCHOLARSHIP PARTICIPANTS.—Section 2107 of such title
is amended by adding at the end the following new sub-
section:
‘‘(i) The Secretary of each military department shall
seek to achieve an increase in the number of agreements
entered into under this section so as to achieve an increase,
by the 2006–2007 academic year, of not less than 400 in
the number of cadets or midshipmen, as the case may be,
enrolled under this section, compared to such number en-
rolled for the 2002–2003 academic year. In the case of the
Secretary of the Navy, the Secretary shall seek to ensure
that not less than one-third of such increase in agreements
under this section are with students enrolled (or seeking to
enroll) in programs of study leading to a baccalaureate de-
gree in nuclear engineering or another appropriate tech-
nical, scientific, or engineering field of study.’’.
(e) REPEAL OF LIMIT ON NUMBER OF ROTC SCHOL-
ARSHIPS.—Section 2107 of such title is further amended
by striking the first sentence of subsection (h)(1).
109
(f) REPEAL
OF
OBSOLETE
LANGUAGE.—Section
4342(i) of such title is amended by striking ‘‘(beginning
with the 2001–2002 academic year)’’.
SEC. 532. ENHANCEMENT OF RESERVE COMPONENT DE-
LAYED TRAINING PROGRAM.
(a) INCREASE IN TIME FOLLOWING ENLISTMENT FOR
COMMENCEMENT OF INITIAL PERIOD OF ACTIVE DUTY FOR
TRAINING.—Section 12103(d) of title 10, United States
Code, is amended by striking ‘‘270 days’’ in the last sen-
tence and inserting ‘‘one year’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to enlistments under
section 12103(d) of title 10, United States Code, after the
end of the 90–day period beginning on the date of the enact-
ment of this Act.
(c) TRANSITION.—In the case of a person who enlisted
under section 12103(d) of title 10, United States Code, be-
fore the date of the enactment of this Act and who as of
such date has not commenced the required initial period
of active duty for training under that section, the amend-
ment made by subsection (a) may be applied to that person,
but only with the agreement of that person and the Sec-
retary concerned.
110
Subtitle E—Decorations and
Awards
SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF
CERTAIN DECORATIONS TO CERTAIN PER-
SONS.
(a) WAIVER.—Any limitation established by law or
policy for the time within which a recommendation for the
award of a military decoration or award must be submitted
shall not apply to awards of decorations described in this
section, the award of each such decoration having been de-
termined by the Secretary concerned to be warranted in ac-
cordance with section 1130 of title 10, United States Code.
(b) DISTINGUISHED FLYING CROSS.—Subsection (a)
applies to the award of the Distinguished Flying Cross (in-
cluding multiple awards to the same individual) in the case
of each individual concerning whom the Secretary of the
military department concerned (or a designated official act-
ing on behalf of the Secretary of the military department
concerned) submitted to the Committee on Armed Services
of the House of Representatives and the Committee on
Armed Services of the Senate, during the period beginning
on December 28, 2001, and ending on the day before the
date of the enactment of this Act, a notice as provided in
section 1130(b) of title 10, United States Code, that the
award of the Distinguished Flying Cross to that individual
111
is warranted and that a waiver of time restrictions pre-
scribed by law for recommendation for such award is rec-
ommended.
SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES
EXPEDITIONARY MEDAL AWARDED FOR OP-
ERATION 
FREQUENT 
WIND 
TO 
VIETNAM
SERVICE MEDAL.
(a) IN GENERAL.—The Secretary of the military de-
partment concerned shall, upon the application of an indi-
vidual who is an eligible Vietnam evacuation veteran,
award that individual the Vietnam Service Medal, notwith-
standing any otherwise applicable requirements for the
award of that medal. Any such award shall be made in
lieu of the Armed Forces Expeditionary Medal awarded the
individual for participation in Operation Frequent Wind.
(b) ELIGIBLE VIETNAM EVACUATION VETERAN.—For
purposes of this section, the term ‘‘eligible Vietnam evacu-
ation veteran’’ means a member or former member of the
Armed Forces who was awarded the Armed Forces Expedi-
tionary Medal for participation in military operations des-
ignated as Operation Frequent Wind arising from the evac-
uation of Vietnam on April 29 and 30, 1975.
112
Subtitle F—Administrative Matters
SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRIS-
ONER OF WAR/MISSING PERSONNEL OFFICE.
(a) REQUIREMENT FOR STAFFING AND FUNDING AT
LEVELS REQUIRED FOR PERFORMANCE OF FULL RANGE
OF MISSIONS.—Subsection (a) of section 1501 of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(5)(A) The Secretary of Defense shall ensure that the
office is provided sufficient military and civilian personnel
levels, and sufficient funding, to enable the office to fully
perform its complete range of missions. The Secretary shall
ensure that Department of Defense programming, planning,
and budgeting procedures are structured so as to ensure
compliance with the preceding sentence for each fiscal year.
‘‘(B) For any fiscal year, the number of military and
civilian personnel assigned or detailed to the office may not
be less than the number requested in the President’s budget
for fiscal year 2003, unless a level below such number is
expressly required by law.
‘‘(C) For any fiscal year, the level of funding allocated
to the office within the Department of Defense may not be
below the level requested for such purposes in the President’s
budget for fiscal year 2003, unless such a level of funding
is expressly required by law.’’.
113
(b) NAME
OF OFFICE.—Such subsection is further
amended by inserting after the first sentence of paragraph
(1) the following new sentence: ‘‘Such office shall be known
as the Defense Prisoner of War/Missing Personnel Office.’’.
SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PER-
SONNEL OF AGENCIES RESPONSIBLE FOR RE-
VIEW 
AND 
CORRECTION 
OF 
MILITARY
RECORDS.
(a) IN GENERAL.—Chapter 79 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 1559. Personnel limitation
‘‘(a) LIMITATION.—During fiscal years 2003, 2004,
and 2005, the Secretary of a military department may not
carry out any reduction in the number of military and ci-
vilian personnel assigned to duty with the service review
agency for that military department below the baseline
number for that agency until—
‘‘(1) the Secretary submits to Congress a report
that—
‘‘(A) describes the reduction proposed to be
made;
‘‘(B) provides the Secretary’s rationale for
that reduction; and
114
‘‘(C) specifies the number of such personnel
that would be assigned to duty with that agency
after the reduction; and
‘‘(2) a period of 90 days has elapsed after the
date on which the report is submitted.
‘‘(b) BASELINE NUMBER.—The baseline number for a
service review agency under this section is—
‘‘(1) for purposes of the first report with respect
to a service review agency under this section, the
number of military and civilian personnel assigned to
duty with that agency as of January 1, 2002; and
‘‘(2) for purposes of any subsequent report with
respect to a service review agency under this section,
the number of such personnel specified in the most re-
cent report with respect to that agency under this sec-
tion.
‘‘(c) SERVICE REVIEW AGENCY DEFINED.—In this sec-
tion, the term ‘service review agency’ means—
‘‘(1) with respect to the Department of the Army,
the Army Review Boards Agency;
‘‘(2) with respect to the Department of the Navy,
the Board for Correction of Naval Records; and
‘‘(3) with respect to the Department of the Air
Force, the Air Force Review Boards Agency.’’.
115
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘1559. Personnel limitation.’’.
SEC. 553. DEPARTMENT OF DEFENSE SUPPORT FOR PER-
SONS PARTICIPATING IN MILITARY FUNERAL
HONORS DETAILS.
Section 1491(d) of title 10, United States Code, is
amended—
(1) by striking ‘‘To provide a’’ after ‘‘SUP-
PORT.—’’ and inserting ‘‘(1) To support a’’;
(2) by redesignating paragraph (1) as subpara-
graph (A) and amending such subparagraph, as so
redesignated, to read as follows:
‘‘(A) For a person who participates in a funeral
honors detail (other than a person who is a member
of the armed forces not in a retired status or an em-
ployee of the United States), either transportation (or
reimbursement for transportation) and expenses or
the daily stipend prescribed under paragraph (2).’’;
(3) by redesignating paragraph (2) as subpara-
graph (B) and in that subparagraph—
(A) by striking ‘‘Materiel, equipment, and
training for’’ and inserting ‘‘For’’; and
116
(B) by inserting before the period at the end
‘‘and for members of the armed forces in a re-
tired status, materiel, equipment, and training’’;
(4) by redesignating paragraph (3) as subpara-
graph (C) and in that subparagraph—
(A) by striking ‘‘Articles of clothing for’’
and inserting ‘‘For’’; and
(B) by inserting ‘‘, articles of clothing’’
after ‘‘subsection (b)(2)’’; and
(5) by adding at the end the following new para-
graphs:
‘‘(2) The Secretary of Defense shall prescribe annually
a flat rate daily stipend for purposes of paragraph (1)(A).
Such stipend shall be set at a rate so as to encompass typ-
ical costs for transportation and other miscellaneous ex-
penses for persons participating in funeral honors details
who are members of the armed forces in a retired status
and other persons are not members of the armed forces or
employees of the United States.
‘‘(3) A stipend paid under this subsection to a member
of the armed forces in a retired status is in addition to
any compensation to which the member is entitled under
section 435(a)(2) of title 37 and any other compensation
to which the member may be entitled.’’.
117
SEC. 554. AUTHORITY FOR USE OF VOLUNTEERS AS PROC-
TORS FOR ADMINISTRATION OF ARMED SERV-
ICES VOCATIONAL APTITUDE BATTERY TEST.
Section 1588(a) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(6) Voluntary services as a proctor for adminis-
tration to secondary school students of the test known
as the ‘Armed Services Vocational Aptitude Bat-
tery’.’’.
SEC. 555. ANNUAL REPORT ON STATUS OF FEMALE MEM-
BERS OF THE ARMED FORCES.
(a) IN GENERAL.—Chapter 23 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 488. Status of female members of the armed forces:
annual report
‘‘(a) ANNUAL REPORT.—The Secretary of Defense shall
submit to Congress an annual report on the status of female
members of the armed forces. Information in the report shall
be shown for the Department of Defense as a whole and
separately for each of the Army, Navy, Air Force, and Ma-
rine Corps.
‘‘(b) MATTERS TO BE INCLUDED.—Each report under
subsection (a) shall include, at a minimum, the following
information with respect to female members:
‘‘(1) Access to health care.
118
‘‘(2) Positions open.
‘‘(3) Assignment policies.
‘‘(4) Joint spouse assignments.
‘‘(5) Deployment availability rates.
‘‘(6) Promotion and retention rates.
‘‘(7) Assignments in nontraditional fields.
‘‘(8) Assignments to command positions.
‘‘(9) Selection for service schools.
‘‘(10) Sexual harassment.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘488. Status of female members of the armed forces: annual report.’’.
Subtitle G—Benefits
SEC. 561. VOLUNTARY LEAVE SHARING PROGRAM FOR MEM-
BERS OF THE ARMED FORCES.
(a) IN GENERAL.—(1) Chapter 40 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 709. Voluntary transfers of leave
‘‘(a) PROGRAM.—The Secretary concerned shall, by
regulation, establish a program under which leave accrued
by a member of an armed force may be transferred to an-
other member of the same armed force who requires addi-
tional leave because of a qualifying emergency. Any such
transfer of leave may be made only upon the voluntary
119
written application of the member whose leave is to be
transferred.
‘‘(b) APPROVAL
OF
COMMANDING
OFFICER
RE-
QUIRED.—Any transfer of leave under a program under
this section may only be made with the approval of the com-
manding officer of the leave donor and the leave recipient.
‘‘(c) QUALIFYING EMERGENCY.—In this section, the
term ‘qualifying emergency’, with respect to a member of
the armed forces, means a circumstance that—
‘‘(1) is likely to require the prolonged absence of
the member from duty; and
‘‘(2) is due to—
‘‘(A) a medical condition of a member of the
immediate family of the member; or
‘‘(B) any other hardship that the Secretary
concerned determines appropriate for purposes of
this section.
‘‘(d) MILITARY DEPARTMENT REGULATIONS.—Regula-
tions prescribed under this section by the Secretaries of the
military department shall be as uniform as practicable and
shall be subject to approval by the Secretary of Defense.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘709. Voluntary transfers of leave.’’.
(b) DEADLINE FOR IMPLEMENTING REGULATIONS.—
Regulations to implement section 709 of title 10, United
120
States Code, as added by subsection (a), shall be prescribed
not later than six months after the date of the enactment
of this Act.
SEC. 562. ENHANCED FLEXIBILITY IN MEDICAL LOAN RE-
PAYMENT PROGRAM.
(a) ELIGIBLE PERSONS.—Subsection (d) of section
2173 of title 10, United States Code, is amended by striking
‘‘Participants’’ and all that follows through ‘‘and students’’
and inserting ‘‘Students’’.
(b) LOAN REPAYMENT AMOUNTS.—Subsection (e)(2) of
such section is amended by striking the last sentence.
SEC. 563. EXPANSION OF OVERSEAS TOUR EXTENSION BEN-
EFITS.
Section 705(b)(2) of title 10, United States Code, is
amended—
(1) by striking ‘‘recuperative’’ and inserting ‘‘re-
cuperation’’; and
(2) by inserting before the period at the end the
following: ‘‘, or to an alternate location at a cost not
to exceed the cost of transportation to the nearest port
in the 48 contiguous States, and return’’.
121
SEC. 564. VEHICLE STORAGE IN LIEU OF TRANSPORTATION
WHEN MEMBER IS ORDERED TO A NONFOR-
EIGN DUTY STATION OUTSIDE CONTINENTAL
UNITED STATES.
(a) STORAGE COSTS AUTHORIZED.—Subsection (b) of
section 2634 of title 10, United States Code, is amended
by striking paragraphs (1) and (2) and inserting the fol-
lowing:
‘‘(b)(1) When a member receives a vehicle storage
qualifying order, the member may elect to have a motor
vehicle described in subsection (a) stored at the expense of
the United States at a location approved by the Secretary
concerned. In the case of a vehicle storage qualifying order
that is to make a change of permanent station, such storage
is in lieu of transportation authorized by subsection (a).
‘‘(2) In this subsection, the term ‘vehicle storage quali-
fying order’ means any of the following:
‘‘(A) An order to make a change of permanent
station to a foreign country in a case in which the
laws, regulations, or other restrictions imposed by the
foreign country or by the United States either—
‘‘(i) preclude entry of a motor vehicle de-
scribed in subsection (a) into that country; or
‘‘(ii) would require extensive modification
of the vehicle as a condition to entry.
122
‘‘(B) An order to make a change of permanent
station to a nonforeign area outside the continental
United States in a case in which the laws, regula-
tions, or other restrictions imposed by that area or by
the United States either—
‘‘(i) preclude entry of a motor vehicle de-
scribed in subsection (a) into that area; or
‘‘(ii) would require extensive modification
of the vehicle as a condition to entry.
‘‘(C) An order under which a member is trans-
ferred or assigned in connection with a contingency
operation to duty at a location other than the perma-
nent station of the member for a period of more than
30 consecutive days but which is not considered a
change of permanent station.’’.
(b) NONFOREIGN AREA OUTSIDE THE CONTINENTAL
UNITED STATES DEFINED.—Subsection (h) of such section
is amended by adding at the end the following new para-
graph:
‘‘(3) The term ‘nonforeign area outside the conti-
nental United States’ means any of the following: the
States of Alaska and Hawaii, the Commonwealths of
Puerto Rico and the Northern Mariana Islands, and
any possession of the United States.’’.
123
(c) EFFECTIVE DATE.—The amendments made by this
section apply to orders to make a change of permanent sta-
tion to a nonforeign area outside the continental United
States (as such term is defined in subsection (h)(3) of sec-
tion 2634 of title 10, United States Code, as added by sub-
section (b)) that are issued on or after the date of the enact-
ment of this Act.
Subtitle H—Military Justice
Matters
SEC. 571. RIGHT OF CONVICTED ACCUSED TO REQUEST
SENTENCING BY MILITARY JUDGE.
(a) SENTENCING BY JUDGE.—(1) Chapter 47 of title
10, United States Code (the Uniform Code of Military Jus-
tice), is amended by inserting after section 852 (article 52)
the following new section:
‘‘§ 852a. Art. 52a. Right of accused to request sen-
tencing by military judge rather than by
members
‘‘(a) In the case of an accused convicted of an offense
by a court-martial composed of a military judge and mem-
bers, the sentence shall be tried before and adjudged by the
military judge rather than the members if, after the find-
ings are announced and before evidence in the sentencing
proceeding is introduced, the accused, knowing the identity
of the military judge and after consultation with defense
124
counsel, requests orally on the record or in writing that the
sentence be tried before and adjudged by the military judge
rather than the members.
‘‘(b) This section shall not apply with respect to an
offense for which the death penalty may be adjudged unless
the case has been previously referred to trial as a noncapital
case.’’.
(2) The table of sections at the beginning of subchapter
VII of such chapter is amended by inserting after the item
relating to section 852 (article 52) the following new item:
‘‘852a. 52a. Right of accused to request sentencing by military judge rather than
by members.’’.
(b) EFFECTIVE DATE.—Section 852a of title 10,
United States Code (article 52a of the Uniform Code of
Military Justice), as added by subsection (a), shall apply
with respect to offenses committed on or after January 1,
2003.
SEC. 572. REPORT ON DESIRABILITY AND FEASIBILITY OF
CONSOLIDATING 
SEPARATE 
COURSES 
OF
BASIC INSTRUCTION FOR JUDGE ADVOCATES.
Not later than February 1, 2003, the Secretary of De-
fense shall submit to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the
House of Representatives a report on the desirability and
feasibility of consolidating the separate Army, Navy, and
Air Force courses of basic instruction for judge advocates
125
into a single course to be conducted at a single location.
The report shall include—
(1) an assessment of the advantages and dis-
advantages of such a consolidation;
(2) a recommendation as to whether such a con-
solidation is desirable and feasible; and
(3) any proposal for legislative action that the
Secretary considers appropriate for carrying out such
a consolidation.
TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The ad-
justment to become effective during fiscal year 2003 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.—Effective on January
1, 2003, the rates of monthly basic pay for members of the
uniformed services within each pay grade are as follows:
126
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 ....
7,474.50
7,719.30
7,881.60
7,927.20
8,129.40
O–7 ....
6,210.90
6,499.20
6,633.00
6,739.20
6,930.90
O–6 ....
4,603.20
5,057.10
5,388.90
5,388.90
5,409.60
O–5 ....
3,837.60
4,323.00
4,622.40
4,678.50
4,864.80
O–4 ....
3,311.10
3,832.80
4,088.70
4,145.70
4,383.00
O–3 3
2,911.20
3,300.30
3,562.20
3,883.50
4,069.50
O–2 3
2,515.20
2,864.70
3,299.40
3,410.70
3,481.20
O–1 3
2,183.70
2,272.50
2,746.80
2,746.80
2,746.80
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 ....
8,468.70
8,547.30
8,868.90
8,961.30
9,238.20
O–7 ....
7,120.80
7,340.40
7,559.40
7,779.00
8,468.70
O–6 ....
5,641.20
5,672.10
5,672.10
5,994.60
6,564.30
O–5 ....
4,977.00
5,222.70
5,403.00
5,635.50
5,991.90
O–4 ....
4,637.70
4,954.50
5,201.40
5,372.70
5,471.10
O–3 3
4,273.50
4,405.80
4,623.30
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2
$0.00
$12,077.70
$12,137.10
$12,389.40
$12,829.20
O–9 ....
0.00
10,563.60
10,715.70
10,935.60
11,319.60
O–8 ....
9,639.00
10,008.90
10,255.80
10,255.80
10,255.80
O–7 ....
9,051.30
9,051.30
9,051.30
9,051.30
9,096.90
O–6 ....
6,898.80
7,233.30
7,423.50
7,616.10
7,989.90
O–5 ....
6,161.70
6,329.10
6,519.60
6,519.60
6,519.60
O–4 ....
5,528.40
5,528.40
5,528.40
5,528.40
5,528.40
O–3 3
4,736.10
4,736.10
4,736.10
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for com-
missioned officers in pay grades 0–7 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, while serving 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 Commandant of the Coast Guard, the rate of basic pay for this
grade is $14,155.50, 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.
127
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
$3,883.50
$4,069.50
O–2E
0.00
0.00
0.00
3,410.70
3,481.20
O–1E
0.00
0.00
0.00
2,746.80
2,933.70
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E
$4,273.50
$4,405.80
$4,623.30
$4,806.30
$4,911.00
O–2E
3,591.90
3,778.80
3,923.40
4,031.10
4,031.10
O–1E
3,042.00
3,152.70
3,261.60
3,410.70
3,410.70
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E
$5,054.40
$5,054.40
$5,054.40
$5,054.40
$5,054.40
O–2E
4,031.10
4,031.10
4,031.10
4,031.10
4,031.10
O–1E
3,410.70
3,410.70
3,410.70
3,410.70
3,410.70
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 ...
3,008.10
3,236.10
3,329.10
3,420.60
3,578.10
W–3 ...
2,747.10
2,862.00
2,979.30
3,017.70
3,141.00
W–2 ...
2,416.50
2,554.50
2,675.10
2,763.00
2,838.30
W–1 ...
2,133.90
2,308.50
2,425.50
2,501.10
2,662.50
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ...
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ...
3,733.50
3,891.00
4,044.60
4,203.60
4,356.00
W–3 ...
3,281.70
3,467.40
3,580.50
3,771.90
3,915.60
W–2 ...
2,993.10
3,148.50
3,264.00
3,376.50
3,453.90
W–1 ...
2,782.20
2,888.40
3,006.90
3,085.20
3,203.40
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ...
$0.00
$5,169.30
$5,346.60
$5,524.50
$5,703.30
W–4 ...
4,512.00
4,664.40
4,822.50
4,978.20
5,137.50
W–3 ...
4,058.40
4,201.50
4,266.30
4,407.00
4,548.00
W–2 ...
3,579.90
3,705.90
3,831.00
3,957.30
3,957.30
W–1 ...
3,320.70
3,409.50
3,409.50
3,409.50
3,409.50
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.
128
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 ....
2,068.50
2,257.80
2,343.90
2,428.20
2,516.40
E–6 ....
1,770.60
1,947.60
2,033.70
2,117.10
2,204.10
E–5 ....
1,625.40
1,733.70
1,817.40
1,903.50
2,037.00
E–4 ....
1,502.70
1,579.80
1,665.30
1,749.30
1,824.00
E–3 ....
1,356.90
1,442.10
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
3 1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00
$3,564.30
$3,645.00
$3,747.00
$3,867.00
E–8 ....
2,975.40
3,061.20
3,141.30
3,237.60
3,342.00
E–7 ....
2,667.90
2,753.40
2,838.30
2,990.40
3,066.30
E–6 ....
2,400.90
2,477.40
2,562.30
2,636.70
2,663.10
E–5 ....
2,151.90
2,236.80
2,283.30
2,283.30
2,283.30
E–4 ....
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ....
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 18
Over 20
Over 22
Over 24
Over 26
E–9 2
$3,987.30
$4,180.80
$4,344.30
$4,506.30
$4,757.40
E–8 ....
3,530.10
3,625.50
3,787.50
3,877.50
4,099.20
E–7 ....
3,138.60
3,182.70
3,331.50
3,427.80
3,671.40
E–6 ....
2,709.60
2,709.60
2,709.60
2,709.60
2,709.60
E–5 ....
2,283.30
2,283.30
2,283.30
2,283.30
2,283.30
E–4 ....
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ....
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
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, while serving as Sergeant Major of the Army, Master Chief
Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine
Corps, or Master Chief Petty Officer of the Coast Guard, basic pay for this grade is $5,732.70, re-
gardless 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 $1,064.70.
SEC. 602. EXPANSION OF BASIC ALLOWANCE FOR HOUSING
LOW-COST OR NO-COST MOVES AUTHORITY
TO MEMBERS ASSIGNED TO DUTY OUTSIDE
UNITED STATES.
Section 403(c) of title 37, United States Code, is
amended by adding at the end the following new paragraph:
129
‘‘(4) In the case of a member who is assigned to duty
outside of the United States, the location or the cir-
cumstances of which make it necessary that the member be
reassigned under the conditions of low-cost or no-cost per-
manent change of station or permanent change of assign-
ment, the member may be treated as if the member were
not reassigned if the Secretary concerned determines that
it would be inequitable to base the member’s entitlement to,
and amount of, a basic allowance for housing on the cost
of housing in the area to which the member is reassigned.’’.
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 amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of
130
such title is amended by striking ‘‘December 31, 2002’’ and
inserting ‘‘December 31, 2003’’.
(d) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(e) READY RESERVE ENLISTMENT
AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f ) of such title is amended by striking ‘‘December 31,
2002’’ and inserting ‘‘December 31, 2003’’.
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 Code,
is amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED
RESERVE.—Section 16302(d) of such title is amended by
striking ‘‘January 1, 2003’’ and inserting ‘‘January 1,
2004’’.
131
(c) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIAL-
TIES.—Section 302g(f ) of such title is amended by striking
‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Sec-
tion 302h(a)(1) of such title is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS.
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e)
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(b) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of such title is amended by striking ‘‘December 31,
2002’’ and inserting ‘‘December 31, 2003’’.
132
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND
SPECIAL PAY AUTHORITIES.
(a) AVIATION OFFICER RETENTION BONUS.—Section
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—Sec-
tion 309(e) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(d) RETENTION BONUS FOR MEMBERS WITH CRITICAL
MILITARY SKILLS.—Section 323(i) of such title is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
133
SEC. 615. MINIMUM LEVELS OF HARDSHIP DUTY PAY FOR
DUTY ON THE GROUND IN ANTARCTICA OR
ON ARCTIC ICEPACK.
Section 305 of title 37, United States Code, is
amended—
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a), the fol-
lowing new subsection:
‘‘(b) DUTY IN CERTAIN LOCATIONS.—(1) In the case
of duty at a location described in paragraph (2) at any
time during a month, the member of a uniformed service
performing that duty is entitled to special pay under this
section at a monthly rate of not less than $240, but not
to exceed the monthly rate specified in subsection (a). For
each day of that duty during the month, the member shall
receive an amount equal to 1⁄30 of the monthly rate pre-
scribed under this subsection.
‘‘(2) Paragraph (1) applies with respect to duty per-
formed on the ground in Antarctica or on the Arctic ice-
pack.’’.
SEC. 616. INCREASE IN MAXIMUM RATES FOR PRIOR SERV-
ICE ENLISTMENT BONUS.
Section 308i(b)(1) of title 37, United States Code, is
amended—
134
(1) in subparagraph (A), by striking ‘‘$5,000’’
and inserting ‘‘$8,000’’;
(2) in subparagraph (B), by striking ‘‘$2,500’’
and inserting ‘‘$4,000’’; and
(3) in subparagraph (C), by striking ‘‘$2,000’’
and inserting ‘‘$3,500’’.
SEC. 617. RETENTION INCENTIVES FOR HEALTH CARE PRO-
VIDERS QUALIFIED IN A CRITICAL MILITARY
SKILL.
(a) EXCEPTION TO LIMITATION ON MAXIMUM BONUS
AMOUNT.—Subsection (d) of section 323 of title 37, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘A member’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The limitation in paragraph (1) on the total
bonus payments that a member may receive under this sec-
tion does not apply with respect to an officer who is as-
signed duties as a health care provider.’’.
(b) EXCEPTION TO YEARS OF SERVICE LIMITATION.—
Subsection (e) of such section is amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ before ‘‘A retention’’; and
135
(3) by adding at the end the following new para-
graph:
‘‘(2) The limitations in paragraph (1) do not apply
with respect to an officer who is assigned duties as a health
care provider during the period of active duty for which
the bonus is being offered.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD
FOR MEMBERS PERFORMING CONSECUTIVE
OVERSEAS TOURS OF DUTY.
(a) AUTHORIZED DEFERRAL PERIOD.—Section 411b
of title 37, United States Code is amended by inserting after
subsection (a) the following new subsection:
‘‘(b) AUTHORITY TO DEFER TRAVEL; LIMITATIONS.—
(1) Under the regulations referred to subsection (a), a mem-
ber may defer the travel for which the member is paid travel
and transportation allowances under this section until any-
time before the completion of the consecutive tour at the
same duty station or the completion of the tour of duty at
the new duty station under the order involved, as the case
may be.
‘‘(2) If a member is unable to undertake the travel be-
fore expiration of the deferral period under paragraph (1)
because of duty in connection with a contingency operation,
136
the member may defer the travel until not more than one
year after the date on which the member’s duty in connec-
tion with the contingency operation ends.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—Such
section is further amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)(1)’’ and inserting ‘‘(a)
ALLOWANCES AUTHORIZED.—’’; and
(B) by striking paragraph (2); and
(2) by striking ‘‘(b) The allowances’’ and insert-
ing ‘‘(c) LIMITATION ON ALLOWANCE RATE.—’’.
(c) APPLICATION OF AMENDMENT.—Subsection (b) of
section 411b of title 37, United States Code, as added by
subsection (a), shall apply with respect to members of the
uniformed services in a deferred leave travel status under
such section as of the date of the enactment of this Act or
after that date.
137
Subtitle D—Retired Pay and
Survivors Benefits
SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF
MILITARY RETIRED PAY AND VETERANS DIS-
ABILITY COMPENSATION FOR MILITARY RE-
TIREES WITH DISABILITIES RATED AT 60 PER-
CENT OR HIGHER.
(a) CONCURRENT RECEIPT.—Section 1414 of title 10,
United States Code, is amended to read as follows:
‘‘§ 1414. Members eligible for retired pay who have
service-connected disabilities rated at 60
percent or higher: concurrent payment of
retired pay and veterans’ disability com-
pensation
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Subject to subsection (b), a member or former
member of the uniformed services who is entitled for any
month to retired pay and who is also entitled for that
month to veterans’ disability compensation for a qualifying
service-connected disability (hereinafter in this section re-
ferred to as a ‘qualified retiree’) is entitled to be paid both
for that month without regard to sections 5304 and 5305
of title 38. For fiscal years 2003 through 2006, payment
of retired pay to such a member or former member is subject
to subsection (c).
138
‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY
RETIREES.—
‘‘(1) CAREER RETIREES.—The retired pay of a
member retired under chapter 61 of this title with 20
years or more of service otherwise creditable under
section 1405 of this title at the time of the member’s
retirement is subject to reduction under sections 5304
and 5305 of title 38, but only to the extent that the
amount of the member’s retired pay under chapter 61
of this title exceeds the amount of retired pay to
which the member would have been entitled under any
other provision of law based upon the member’s serv-
ice in the uniformed services if the member had not
been retired under chapter 61 of this title.
‘‘(2) DISABILITY RETIREES WITH LESS THAN 20
YEARS OF SERVICE.—Subsection (a) does not apply to
a member retired under chapter 61 of this title with
less than 20 years of service otherwise creditable
under section 1405 of this title at the time of the
member’s retirement.
‘‘(c) PHASE-IN OF FULL CONCURRENT RECEIPT.—For
fiscal years 2003 through 2006, retired pay payable to a
qualified retiree shall be determined as follows:
‘‘(1) FISCAL YEAR 2003.—For a month during
fiscal year 2003, the amount of retired pay payable
139
to a qualified retiree is the amount (if any) of retired
pay in excess of the current baseline offset plus the
following:
‘‘(A) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
total, $750.
‘‘(B) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
90 percent, $500.
‘‘(C) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
80 percent, $250.
‘‘(D) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
70 percent, $250.
‘‘(E) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
60 percent, $125.
140
‘‘(2) FISCAL YEAR 2004.—For a month during
fiscal year 2004, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount specified in paragraph (1)
for that qualified retiree; and
‘‘(B) 23 percent of the difference between (i)
the current baseline offset, and (ii) the amount
specified in paragraph (1) for that member’s dis-
ability.
‘‘(3) FISCAL YEAR 2005.—For a month during
fiscal year 2005, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount determined under para-
graph (2) for that qualified retiree; and
‘‘(B) 30 percent of the difference between (i)
the current baseline offset, and (ii) the amount
determined under paragraph (2) for that quali-
fied retiree.
‘‘(4) FISCAL YEAR 2006.—For a month during
fiscal year 2006, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount determined under para-
graph (3) for that qualified retiree; and
‘‘(B) 64 percent of the difference between (i)
the current baseline offset, and (ii) the amount
141
determined under paragraph (3) for that quali-
fied retiree.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) RETIRED PAY.—The term ‘retired pay’ in-
cludes retainer pay, emergency officers’ retirement
pay, and naval pension.
‘‘(2) VETERANS’ DISABILITY
COMPENSATION.—
The term ‘veterans’ disability compensation’ has the
meaning given the term ‘compensation’ in section
101(13) of title 38.
‘‘(3) SERVICE-CONNECTED.—The term ‘service-
connected’ has the meaning given that term in section
101(16) of title 38.
‘‘(4) 
QUALIFYING
SERVICE-CONNECTED
DIS-
ABILITY.—The term ‘qualifying service-connected dis-
ability’ means a service-connected disability or com-
bination of service-connected disabilities that is rated
as not less than 60 percent disabling by the Secretary
of Veterans Affairs.
‘‘(5) DISABILITY RATED AS TOTAL.—The term
‘disability rated as total’ means—
‘‘(A) a disability, or combination of disabil-
ities, that is rated as total under the standard
schedule of rating disabilities in use by the De-
partment of Veterans Affairs; or
142
‘‘(B) a disability, or combination of disabil-
ities, for which the scheduled rating is less than
total but for which a rating of total is assigned
by reason of inability of the disabled person con-
cerned to secure or follow a substantially gainful
occupation as a result of service-connected dis-
abilities.
‘‘(6) CURRENT BASELINE OFFSET.—
‘‘(A) IN GENERAL.—The term ‘current base-
line offset’ for any qualified retiree means the
amount for any month that is the lesser of—
‘‘(i) the amount of the applicable
monthly retired pay of the qualified retiree
for that month; and
‘‘(ii) the amount of monthly veterans’
disability compensation to which the quali-
fied retiree is entitled for that month.
‘‘(B) APPLICABLE RETIRED PAY.—In sub-
paragraph (A), the term ‘applicable retired pay’
for a qualified retiree means the amount of
monthly retired pay to which the qualified re-
tiree is entitled, determined without regard to
this section or sections 5304 and 5305 of title
38), except that in the case of such a retiree who
was retired under chapter 61 of this title, such
143
amount is the amount of retired pay to which
the member would have been entitled under any
other provision of law based upon the member’s
service in the uniformed services if the member
had not been retired under chapter 61 of this
title.’’.
(b) REPEAL
OF SPECIAL COMPENSATION AUTHOR-
ITY.—Section 1413 of title 10, United States Code, is re-
pealed.
(c) PAYMENT OF INCREASED RETIRED PAY COSTS
DUE TO CONCURRENT RECEIPT.—(1) 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 manner as the de-
termination under paragraph (1) of the total amount of De-
partment of Defense contributions to be made to the Fund
during that fiscal year under section 1466(a) of this title,
except that for purposes of this paragraph the Secretary,
in making the calculations required by subparagraphs (A)
and (B) of that paragraph, shall use the single level percent-
144
ages determined under subsection (c)(4), rather than those
determined under subsection (c)(1).’’.
(2) Section 1465(c) of such title is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting before
the semicolon at the end the following: ‘‘, to be
determined without regard to section 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 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):
‘‘(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 percentage
determined in the same manner as applies under sub-
145
paragraph (A) of paragraph (1), but based only upon
the provisions of section 1414 of this title.
‘‘(B) A determination of a single level percentage
determined in the same manner as applies under sub-
paragraph (B) of paragraph (1), but based only upon
the provisions of section 1414 of this title.
Such single level percentages shall be used for the purposes
of subsection (b)(3).’’.
(3) 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-
creased amounts payable from the Fund by reason of
section 1414 of this title.’’.
(d) CLERICAL AMENDMENTS.—The table of sections at
the beginning of chapter 71 of such title is amended—
(1) by striking the item relating to section 1413;
and
(2) by striking the item relating to section 1414
and inserting the following:
146
‘‘1414. Members eligible for retired pay who have service-connected disabilities
rated at 60 percent or higher: concurrent payment of retired pay
and veterans’ disability compensation.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to retired pay payable for
months after September 2002.
SEC. 642. CHANGE IN SERVICE REQUIREMENTS FOR ELIGI-
BILITY FOR RETIRED PAY FOR NON-REGULAR
SERVICE.
(a) REDUCTION IN REQUIREMENT FOR YEARS OF RE-
SERVE COMPONENT SERVICE BEFORE RETIRED PAY ELIGI-
BILITY.—Section 12731(a)(3) of title 10, United States
Code, is amended by striking ‘‘eight years’’ and inserting
‘‘six years’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2002.
SEC. 643. ELIMINATION OF POSSIBLE INVERSION IN RE-
TIRED 
PAY 
COST-OF-LIVING 
ADJUSTMENT
FOR INITIAL COLA COMPUTATION.
(a) ELIMINATION OF POSSIBLE COLA INVERSION.—
Section 1401a of title 10, United States Code, is amended—
(1) in subsections (c)(1), (d), and (e), by insert-
ing ‘‘but subject to subsection (f)(2)’’ after ‘‘Notwith-
standing subsection (b)’’;
(2) in subsection (c)(2), by inserting ‘‘(subject to
subsection (f)(2) as applied to other members whose
retired pay is computed on the current rates of basic
147
pay in the most recent adjustment under this sec-
tion)’’ after ‘‘shall be increased’’; and
(3) in subsection (f)—
(A) by designating the text after the sub-
section heading as paragraph (1), indenting that
text two ems, and inserting ‘‘(1) PREVENTION OF
RETIRED PAY INVERSIONS.—’’ before ‘‘Notwith-
standing’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) PREVENTION
OF
COLA
INVERSIONS.—The
percentage of the first adjustment under this section
in the retired pay of any person, as determined under
subsection (c)(1), (c)(2), (d), or (e), may not exceed
the percentage increase in retired pay determined
under subsection (b)(2) that is effective on the same
date as the effective date of such first adjustment.’’.
(b) TECHNICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (d), by inserting ‘‘or on or after
August 1, 1986, if the member or former member did
not elect to receive a bonus under section 322 of title
37’’ after ‘‘August 1, 1986,’’; and
148
(2) in subsection (e), by inserting ‘‘and elected to
receive a bonus under section 322 of title 37’’ after
‘‘August 1, 1986,’’.
SEC. 644. TECHNICAL REVISIONS TO SO-CALLED ‘‘FORGOT-
TEN WIDOWS’’ ANNUITY PROGRAM.
(a) 
CLARIFICATION
OF
ELIGIBILITY.—Subsection
(a)(1) of section 644 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C.
1448 note) is amended—
(1) in subparagraph (A), by inserting after
‘‘(A)’’ the following: ‘‘became entitled to retired or re-
tainer pay before September 21, 1972,’’; and
(2) in subparagraph (B), by striking ‘‘was a
member of a reserve component of the Armed Forces’’
and inserting ‘‘died’’.
(b) CLARIFICATION OF INTERACTION WITH OTHER
BENEFITS.—(1) Subsection (a)(2) of such section is amend-
ed by striking ‘‘and who’’ and all that follows through
‘‘note)’’.
(2) Subsection (b)(2) of such section is amended to
read as follows:
‘‘(2) The amount of an annuity to which a surviving
spouse is entitled under this section for any period shall
be reduced (but not below zero) by any amount paid to that
149
surviving spouse for the same period under any of the fol-
lowing provisions of law:
‘‘(A) Section 1311(a) of title 38, United States
Code (relating to dependency and indemnity com-
pensation payable by the Secretary of Veterans Af-
fairs).
‘‘(B) Chapter 73 of title 10, United States Code.
‘‘(C) Section 4 of Public Law 92–425 (10 U.S.C.
1448 note).’’.
(c) CLARIFICATION
OF DEFINITION
OF SURVIVING
SPOUSE.—Subsection (d)(2) of such section is amended by
striking ‘‘the terms’’ and all that follows through ‘‘and (8)’’
and inserting ‘‘such term in paragraph (9)’’.
(d) CLARIFICATION OF EFFECTIVE DATE OF BENE-
FITS.—Subsection (e) of such section is amended—
(1) in paragraph (1), by striking ‘‘the month in
which this Act is enacted’’ and inserting ‘‘November
1997’’;
(2) in paragraph (2), by striking ‘‘the first
month that begins after the month in which this Act
is enacted’’ and inserting ‘‘December 1997’’; and
(3) by adding at the end the following new para-
graph:
‘‘(3) In the case of a person entitled to an annuity
under this section who applies for the annuity after the date
150
of the enactment of this paragraph, such annuity shall be
paid only for months beginning after the date on which such
application is submitted.’’.
(e) SPECIFICATION IN LAW OF CURRENT BENEFIT
AMOUNT.—Subsection (b) of such section is amended—
(1) in paragraph (1), by striking ‘‘$165’’ and in-
serting ‘‘$185.58’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the date of the enactment
of this Act’’ and inserting ‘‘May 1, 2002,’’; and
(B) by striking the last sentence.
Subtitle E—Reserve Component
Montgomery GI Bill
SEC. 651. EXTENSION OF MONTGOMERY GI BILL-SELECTED
RESERVE ELIGIBILITY PERIOD.
Section 16133(a) of title 10, United States Code, is
amended by striking ‘‘10-year’’ and inserting ‘‘14-year’’.
Subtitle F—Other Matters
SEC. 661. ADDITION OF DEFINITION OF CONTINENTAL
UNITED STATES IN TITLE 37.
(a) DEFINITION.—Section 101(1) of title 37, United
States Code, is amended by adding at the end the following
new sentence: ‘‘The term ‘continental United States’ means
the 48 contiguous States and the District of Columbia.’’.
151
(b) CONFORMING AMENDMENTS.—Title 37, United
States Code, is amended as follows:
(1) Section 314(a)(3) is amended by striking
‘‘the 48 contiguous States and the District of Colum-
bia’’ and inserting ‘‘the continental United States’’.
(2) Section 403b(i) is amended by striking para-
graph (6).
(3) Section 409 is amended by striking sub-
section (e).
(4) Section 411b(a) is amended by striking ‘‘the
48 contiguous States and the District of Columbia’’
both places it appears and inserting ‘‘the continental
United States’’.
(5) Section 411d is amended by striking sub-
section (d).
(6) Section 430 is amended by striking sub-
section (f) and inserting the following new subsection
(f):
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘formal education’ means the fol-
lowing:
‘‘(A) A secondary education.
‘‘(B) An undergraduate college education.
152
‘‘(C) A graduate education pursued on a
full-time basis at an institution of higher edu-
cation.
‘‘(D) Vocational education pursued on a
full-time basis at a postsecondary vocational in-
stitution.
‘‘(2) The term ‘institution of higher education’
has the meaning given that term in section 101 of the
Higher Education Act of 1965 (20 U.S.C. 1001).
‘‘(3) The term ‘postsecondary vocational institu-
tion’ has the meaning given that term in section
102(c) of the Higher Education Act of 1965 (20
U.S.C. 1002(c)).’’.
TITLE VII—HEALTH CARE
MATTERS
Subtitle A—Health Care Program
Improvements
SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE
PREAUTHORIZATION OF INPATIENT MENTAL
HEALTH 
CARE 
FOR 
MEDICARE-ELIGIBLE
BENEFICIARIES.
(a) ELIMINATION OF REQUIREMENT.—Section 1079(i)
of title 10, United States Code, is amended in paragraph
(3) by inserting ‘‘or in the case of a person eligible for
health care benefits under section 1086(d)(2) of this title
153
for whom payment for such services is made under sub-
section 1086(d)(3) of this title’’ after ‘‘an emergency’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect October 1, 2004.
SEC. 702. EXPANSION OF TRICARE PRIME REMOTE FOR
CERTAIN DEPENDENTS.
(a) EXPANSION OF ELIGIBILITY.—Section 1079(p) of
title 10, United States Code, is amended in paragraph
(1)—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by striking ‘‘referred to in subsection (a) of
a member of the uniformed services referred to in
1074(c)(3) of this title who are residing with the
member’’ and inserting ‘‘described in subparagraph
(B)’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) A dependent referred to in subparagraph (A) is—
‘‘(i) a dependent referred to in subsection (a) of
a member of the uniformed services referred to in sec-
tion 1074(c)(3) of this title, who is residing with the
member; or
‘‘(ii) a dependent referred to in subsection (a) of
a member of the uniformed services with a permanent
duty assignment for which the dependent is not au-
154
thorized to accompany the member and one of the fol-
lowing circumstances exists:
‘‘(I) The dependent continues to reside at
the location of the former duty assignment of the
member (or residence in the case of a member of
a reserve component ordered to active duty for a
period of more than 30 days), and that location
is more than 50 miles, or approximately one
hour of driving time, from the nearest military
medical treatment facility that can adequately
provide needed health care.
‘‘(II) There is no reasonable expectation the
member will return to the location of the former
duty assignment, and the dependent moves to a
location that is more than 50 miles, or approxi-
mately one hour of driving time, from the near-
est military medical treatment facility that can
adequately provide needed health care.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect October 1, 2002.
SEC. 703. ENABLING DEPENDENTS OF CERTAIN MEMBERS
WHO DIED WHILE ON ACTIVE DUTY TO EN-
ROLL IN THE TRICARE DENTAL PROGRAM.
Section 1076a(k)(2) of title 10, United States Code, is
amended by inserting ‘‘(or, if not enrolled, if the member
155
discontinued participation under subsection (f))’’ after
‘‘subsection (a)’’.
SEC. 704. IMPROVEMENTS REGARDING THE DEPARTMENT
OF DEFENSE MEDICARE-ELIGIBLE RETIREE
HEALTH CARE FUND.
(a) SOURCE OF FUNDS FOR MONTHLY ACCRUAL PAY-
MENTS
INTO
THE FUND.—Section 1116(c) of title 10,
United States Code, is amended to read as follows:
‘‘(c) Amounts paid into the Fund under subsection (a)
shall be paid from funds available for the pay of members
of the participating uniformed services under the jurisdic-
tion of the respective administering Secretaries.’’.
(b) MANDATORY PARTICIPATION
OF OTHER UNI-
FORMED
SERVICES.—Section 1111(c) of such title is
amended—
(1) in the first sentence, by striking ‘‘may enter
into an agreement with any other administering Sec-
retary’’ and inserting ‘‘shall enter into an agreement
with each other administering Secretary’’; and
(2) in the second sentence, by striking ‘‘Any’’
and inserting ‘‘Each’’.
156
SEC. 705. CERTIFICATION OF INSTITUTIONAL AND NON-IN-
STITUTIONAL 
PROVIDERS 
UNDER 
THE
TRICARE PROGRAM.
(a) IN GENERAL.—Section 1079 of title 10, United
States Code, is amended by adding at the end the following
new subsection:
‘‘(q) For purposes of designating institutional and
non-institutional health care providers authorized to pro-
vide care under this section, the Secretary of Defense shall
prescribe regulations (in consultation with the other admin-
istering Secretaries) that will, to the extent practicable and
subject to the limitations of subsection (a), so designate any
provider authorized to provide care under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.).’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect October 1, 2003.
SEC. 706. TECHNICAL CORRECTION REGARDING TRANSI-
TIONAL HEALTH CARE.
Effective as of December 28, 2001, section 1145(a)(1)
of title 10, United States Code, is amended by inserting
‘‘(and the dependents of the member)’’ after ‘‘separated from
active duty as described in paragraph (2)’’. The amendment
made by the preceding sentence shall be deemed to have been
enacted as part of section 736 of the National Defense Au-
thorization Act for Fiscal Year 2002 (Public Law 107–107).
157
Subtitle B—Reports
SEC. 711. COMPTROLLER GENERAL REPORT ON TRICARE
CLAIMS PROCESSING.
Not later than March 31, 2003, the Comptroller Gen-
eral shall submit to Congress an evaluation of the con-
tinuing impediments to a cost effective and provider- and
beneficiary-friendly system for claims processing under the
TRICARE program. The evaluation shall include a discus-
sion of the following:
(1) The extent of progress implementing im-
provements in claims processing, particularly regard-
ing the application of best industry practices.
(2) The extent of progress in simplifying claims
processing procedures, including the elimination of, or
reduction in, the complexity of the Health Care Serv-
ice Record requirements.
(3) The suitability of a medicare-compatible
claims processing system with the data requirements
necessary to administer the TRICARE program and
related information systems.
(4) The extent to which the claims processing
system for the TRICARE program impedes provider
participation and beneficiary access.
(5) Recommendations for improving the claims
processing system that will reduce processing and ad-
158
ministration costs, create greater competition, and
improve fraud-prevention activities.
SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION
OF CARE UNDER THE TRICARE PROGRAM.
Not later than March 31, 2003, the Comptroller Gen-
eral shall submit to Congress an evaluation of the nature
of, reasons for, extent of, and trends regarding network pro-
vider instability under the TRICARE program, and the ef-
fectiveness of efforts by the Department of Defense and man-
aged care support contractors to measure and mitigate such
instability. The evaluation shall include a discussion of the
following:
(1) The adequacy of measurement tools of
TRICARE network instability and their use by the
Department of Defense and managed care support
contractors to assess network adequacy and stability.
(2) Recommendations for improvements needed
in measurement tools or their application.
(3) The relationship of reimbursement rates and
administration 
requirements 
(including
preauthorization requirements) to TRICARE network
instability.
(4) The extent of problems under the TRICARE
program and likely future trends with and without
intervention using existing authority.
159
(5) Use of existing authority by the Department
of Defense and TRICARE managed care support con-
tractors to apply higher reimbursement rates in spe-
cific geographic areas.
(6) Recommendations for specific fiscally pru-
dent measures that could mitigate negative trends or
improve provider and network stability.
SEC. 713. REPEAL OF REPORT REQUIREMENT.
Notwithstanding subsection (f)(2) of section 712 of the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-
398; 114 Stat. 1654A–179), the amendment made by sub-
section (e) of such section shall not take effect and the para-
graph amended by such subsection is repealed.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
SEC. 801. PLAN FOR ACQUISITION MANAGEMENT PROFES-
SIONAL EXCHANGE PILOT PROGRAM.
(a) PLAN REQUIRED.—(1) The Secretary of Defense
shall develop a plan for a pilot program under which—
(A) an individual in the field of acquisition
management employed by the Department of Defense
160
may be temporarily assigned to work in a private sec-
tor organization; and
(B) an individual in such field employed by a
private sector organization may be temporarily as-
signed to work in the Department of Defense.
(2) In developing the plan under paragraph (1), the
Secretary shall address the following:
(A) The benefits of undertaking such a program.
(B) The appropriate length of assignments under
the program.
(C) Whether an individual assigned under the
program should be compensated by the organization
to which the individual is assigned, or the organiza-
tion from which the individual is assigned.
(D) The ethics guidelines that should be applied
to the program and, if necessary, waivers of ethics
laws that would be needed in order to make the pro-
gram effective and attractive to both Government and
private sector employees.
(E) An assessment of how compensation of indi-
viduals suffering employment-related injuries under
the program should be addressed.
(b) SUBMISSION TO CONGRESS.—Not later than Feb-
ruary 1, 2003, the Secretary shall submit to the Committees
161
on Armed Services of the Senate and the House of Rep-
resentatives the plan required under subsection (a).
SEC. 802. EVALUATION OF TRAINING, KNOWLEDGE, AND RE-
SOURCES REGARDING NEGOTIATION OF IN-
TELLECTUAL PROPERTY ARRANGEMENTS.
(a) AVAILABILITY OF TRAINING, KNOWLEDGE, AND
RESOURCES.—The Secretary of Defense shall evaluate the
training, knowledge, and resources needed by the Depart-
ment of Defense in order to effectively negotiate intellectual
property rights using the principles of the Defense Federal
Acquisition Regulation Supplement and determine whether
the Department of Defense currently has in place the train-
ing, knowledge, and resources available to meet those De-
partmental needs.
(b) REPORT.—Not later than February 1, 2003, the
Secretary of Defense shall submit to Congress a report
describing—
(1) the results of the evaluation performed under
subsection (a);
(2) to the extent the Department does not have
adequate training, knowledge, and resources available,
actions to be taken to improve training and knowl-
edge and to make resources available to meet the De-
partment’s needs; and
162
(3) the number of Department of Defense legal
personnel trained in negotiating intellectual property
arrangements.
SEC. 803. LIMITATION PERIOD FOR TASK AND DELIVERY
ORDER CONTRACTS.
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 Federal
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:
163
‘‘(f) LIMITATION ON CONTRACT PERIOD.—The base pe-
riod of a task order contract or delivery order contract en-
tered into under this section may not exceed five years un-
less a longer period is specifically authorized in a law that
is applicable to such contract. The contract may be 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 inserting
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 requirements
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 redesig-
nated by subparagraph (B)) to read as follows:
‘‘(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
164
be included in the solicitation of offers for that contract.’’;
and
(D) in subsection (d) (as redesignated by
subparagraph (B))—
(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’’.
SEC. 804. ONE-YEAR EXTENSION OF PROGRAM APPLYING
SIMPLIFIED PROCEDURES TO CERTAIN COM-
MERCIAL ITEMS; REPORT.
(a) EXTENSION OF PILOT PROGRAM.—Section 4202 of
the Clinger-Cohen Act of 1996 (divisions D and E of Public
Law 104–106; 110 Stat. 652; 10 U.S.C. 2304 note) is
amended in subsection (e) by striking ‘‘January 1, 2003’’
and inserting ‘‘January 1, 2004’’.
(b) REPORT REQUIRED.—Not later than January 15,
2003, the Secretary of Defense shall submit to Congress a
report on whether the authority to issue solicitations for
purchases of commercial items in excess of the simplified
acquisition threshold pursuant to the special simplified pro-
cedures authorized by section 2304(g)(1) of title 10, United
States Code, section 303(g)(1) of the Federal Property and
Administrative Services Act of 1949, and section 31(a) of