are so compelling as to preclude compliance with the 
requirement for a public-private competition; and 
‘‘(iii) a copy of the waiver is published in the 
Federal Register within 10 working days after the 
date on which the waiver is invoked, although use of 
the waiver need not be delayed until its publica-
tion.’’. 
(b) RELATION TO PILOT PROGRAM.—Paragraph (5) 
of section 2461(b) of title 10, United States Code, as 
added by subsection (a) shall not apply with respect to 
the pilot program for best-value source selection for per-
formance of information technology services authorized by 
section 336 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108–136; 117 Stat. 1444; 
10 U.S.C. 2461 note). 
SEC. 324. PUBLIC-PRIVATE COMPETITION PILOT PROGRAM. 
(a) PURPOSE.—The Secretary of Defense shall estab-
lish a pilot program to examine the use of the public-pri-
vate competition process of Office of Management and 
Budget Circular A–76 on new requirements, as defined 
by such Circular, and functions currently being performed 
by contractors that could be performed by civilian employ-
ees.
(b) DURATION.—The Secretary of Defense shall 
carry out the pilot program during fiscal years 2005 and 
2006. 
(c) REQUIREMENT FOR PUBLIC-PRIVATE COMPETI-
TION FOR NEW WORK.—(1) By the end of the pilot 
project, the Secretary of Defense shall have allowed civil-
ian employees to compete through the standard competi-
tion process of Office of Management and Budget Circular 
A–76 for new requirements, as defined by such Circular, 
that are approximately one-tenth in value of the funds 
spent by the Department of Defense during the two fiscal 
years of the pilot project on all functions that are consid-
ered new requirements, as defined by such Circular. 
(2) The Department of Defense shall not receive 
credit towards compliance with the pilot program for sub-
jecting to public-private competition—
(A) any contract to be awarded to small busi-
ness concerns that meet the requirements under sec-
tion 3(a) of the Small Business Act (15 U.S.C. 
632(a)) and regulations under that section; 
(B) any contract to be performed by contractor 
employees who are represented by a private sector 
labor union; or 
(C) any contract related to special studies and 
analyses, construction services, architectural serv-
ices, medical services, scientific and technical serv-
ices related to (but not in support of) research and 
development, and depot-level maintenance and repair 
services. 
(d) FUNCTIONS PERFORMED BY CONTRACTORS.—(1) 
By the end of the pilot project, the Secretary of Defense 
shall have subjected a number of contractor employees to 
public-private competition through the standard competi-
tion process of Office of Management and Budget Circular 
A–76 that is approximately one-tenth of the number of 
civilian employees subject to public-private competition 
during the two fiscal years of the pilot project. 
(2) The Department of Defense shall, to the extent 
possible, subject to public-private competition those posi-
tions held by contractor employees that are associated 
with functions that are or have been performed at least 
in part by Federal employees at any time on or after Octo-
ber 1, 1980; and 
(3) Subsection (c)(2) shall also apply to this sub-
section. 
(e) WAIVER.—The implementation of the pilot 
project may be waived if—
(1) the written waiver is prepared by the Sec-
retary of Defense;
(2) the written waiver is accompanied by a de-
tailed determination that national security interests 
are so compelling as to preclude compliance with the 
competition requirement; and 
(3) a copy of the waiver is published in the 
Federal Register within 10 working days after the 
date on which the waiver is invoked, although use of 
the waiver need not be delayed until its publication. 
(f) REPORT.—At the end of each fiscal year of the 
pilot program, the Inspector General of the Department 
of Defense shall submit to Congress a report on the results 
of the pilot program, including the extent to which the 
Department of Defense complied with the requirements of 
this section. 
SEC. 325. SENSE OF CONGRESS ON EQUITABLE LEGAL 
STANDING FOR CIVILIAN EMPLOYEES. 
It is the sense of Congress that, in order to ensure 
that, when public-private competitions are held, they are 
conducted as fairly, effectively, and efficiently as possible, 
competing parties, both Department of Defense civilian 
employees (or their representatives) and contractors (or 
their representatives) should receive comparable treatment 
throughout the competition regarding access to relevant 
information and legal standing to challenge the way a 
competition has been conducted at all appropriate forums,
including the General Accounting Office and the United 
States Court of Federal Claims. 
SEC. 326. COMPETITIVE SOURCING REPORTING REQUIRE-
MENT. 
(a) REPORT REQUIRED.—Not later than February 1, 
2005, the Inspector General of the Department of Defense 
shall submit to Congress a report addressing whether the 
Department of Defense—
(1) employs a sufficient number of adequately 
trained civilian employees to conduct satisfactorily, 
taking into account equity, efficiency and expedi-
tiousness, all of the public-private competitions that 
are scheduled to be undertaken by the Department 
of Defense during the next fiscal year (including a 
sufficient number of employees to formulate satisfac-
torily the performance work statements and most ef-
ficient organization plans for the purposes of such 
competitions) and to administer any resulting con-
tracts; and 
(2) has implemented a comprehensive and reli-
able system to track and assess the cost and quality 
of the performance of functions of the Department 
of Defense by service contractors, to update the 
records of such costs and the assessments each fiscal 
quarter, and to make such information available in
reports to Congress and the public, including 
through the use of electronic means, except that pro-
prietary information and information to which sec-
tion 552(b)(1) of title 5, United States Code, applies 
shall be excised from information published or re-
ports made available. 
(b) ELEMENTS OF TRACKING SYSTEM.—The system 
of the Department of Defense for tracking cost and qual-
ity of performance of a function under a service contract 
shall include at least the following data elements: 
(1) The contract number and the applicable 
Federal supply class or service code. 
(2) The name, business address, and business 
telephone of the agency official who supervises the 
service contract. 
(3) The statutory, regulatory, or other author-
ity for entering into the service contract and, if a 
public-private competition was not used in the deter-
mination of whether to provide for performance of 
the activity or function by a contractor, an expla-
nation of the reasons for not doing so. 
(4) The cost to the Department of Defense of 
conducting the public-private competition under Of-
fice of Management and Budget Circular A–76, if
cluding compliance with each of the requirements specified 
in subsection (b). The Inspector General shall base the 
assessment on an audit of a representative sample of serv-
ice contracts. The report shall also include recommenda-
tions by the Inspector General regarding how weaknesses 
identified in the Department of Defense infrastructure for 
competitive sourcing can be rectified, whether through the 
use of different processes or the availability of additional 
employees, additional training, or additional resources.
Subtitle D—Information 
Technology 
SEC. 331. PREPARATION OF DEPARTMENT OF DEFENSE 
PLAN FOR TRANSITION TO INTERNET PRO-
TOCOL VERSION 6. 
(a) TRANSITION PLAN.—The Secretary of Defense 
shall prepare a plan to provide for the transition of De-
partment of Defense information technology systems to 
Internet Protocol version 6 from the present use of Inter-
net Protocol version 4 and other network protocols. The 
plan shall outline the networking and security system 
equipment that will need to be replaced, including the tim-
ing and costs of such replacement, address how the cur-
rent and new networks and security systems will be man-
aged, and assess the potential impact of the transition, 
include any proposed measures to alleviate any adverse af-
fects. In preparing the transition plan, the Secretary shall 
compare private industry plans for the transition to Inter-
net Protocol version 6. 
(b) TESTING AND EVALUATION FOR INTERNET PRO-
TOCOL.—To determine whether a change to the use of 
Internet Protocol version 6 will support Department of 
Defense requirements, the Secretary of Defense shall pro-
vide for a rigorous, real-world end-to-end testing of Inter-
net Protocol version 6, as proposed for use by the Depart-
ment, to evaluate the following: 
(1) The ability of Internet Protocol version 6, 
with its ‘‘best effort’’ quality of service, to satisfac-
tory support the Department’s multiple applications 
and other information technology systems, including 
the use of Internet Protocol version 6 over band-
width-constrained tactical circuits. 
(2) The ability of the Department’s networks 
using Internet Protocol version 6 to respond to, and 
perform under, heavy loading of the core networks. 
(c) SUBMISSION OF PLAN AND RESULTS.—Not later 
than March 31, 2005, the Secretary of Defense shall sub-
mit to the congressional defense committees a report con-
taining the transition plan prepared under subsection (a) 
and the results of the tests conducted under subsection 
(b).
SEC. 332. DEFENSE BUSINESS ENTERPRISE ARCHITEC-
TURE, SYSTEM ACCOUNTABILITY, AND CON-
DITIONS FOR OBLIGATION OF FUNDS FOR 
DEFENSE BUSINESS SYSTEM MODERNIZA-
TION. 
(a) IN GENERAL.—(1) Chapter 131 of title 10, 
United States Code, is amended by inserting before sec-
tion 2223 the following new section: 
‘‘§ 2222. Defense business systems: architecture, ac-
countability, and modernization 
‘‘(a) CONDITIONS FOR OBLIGATION OF FUNDS FOR 
DEFENSE BUSINESS SYSTEM MODERNIZATION.—Effec-
tive January 1, 2005, funds appropriated to the Depart-
ment of Defense may not be obligated for a defense busi-
ness system modernization that will have a total cost in 
excess of $1,000,000 unless—
‘‘(1) the approval authority designated for the 
defense business system certifies to the Defense 
Business Systems Management Committee estab-
lished by section 186 of this title that the defense 
business system modernization—
‘‘(A) is in compliance with the enterprise 
architecture developed under subsection (b), or 
such compliance is waived in writing by the ap-
proval authority as a result of the investment 
review process conducted under subsection (d)
for the defense business system modernization; 
and 
‘‘(B) will be acquired or developed in a 
manner consistent with the system acquisition 
regulations and instructions of the Department 
of Defense; and 
‘‘(2) the Defense Business Systems Manage-
ment Committee approves the certification by the 
approval authority. 
‘‘(b) ENTERPRISE ARCHITECTURE
FOR DEFENSE 
BUSINESS SYSTEMS.—Not later than September 30, 
2005, the Secretary of Defense, acting through the De-
fense Business Systems Management Committee, shall de-
velop—
‘‘(1) an enterprise architecture to cover all de-
fense business systems, and the functions and activi-
ties supported by defense business systems, which 
shall be sufficiently defined to effectively guide, con-
strain, and permit implementation of interoperable 
defense business system solutions and consistent 
with the policies and procedures established by the 
Director of the Office of Management and Budget, 
and 
‘‘(2) a transition plan for implementing the en-
terprise architecture for defense business systems.
‘‘(c) APPROVAL AUTHORITIES AND ACCOUNTABILITY 
FOR DEFENSE BUSINESS SYSTEMS.—The Secretary of 
Defense shall delegate responsibility for the planning, de-
sign, acquisition, deployment, operation, maintenance, 
modernization, and oversight of defense business systems 
as follows: 
‘‘(1) The Under Secretary of Defense for Ac-
quisition, Technology and Logistics shall be respon-
sible and accountable for any defense business sys-
tem the primary purpose of which is to support ac-
quisition activities, logistics activities, or installa-
tions and environment activities of the Department 
of Defense. 
‘‘(2) The Under Secretary of Defense (Comp-
troller) shall be responsible and accountable for any 
defense business system the primary purpose of 
which is to support financial management activities 
or strategic planning and budgeting activities of the 
Department of Defense. 
‘‘(3) The Under Secretary of Defense for Per-
sonnel and Readiness shall be responsible and ac-
countable for any defense business system the pri-
mary purpose of which is to support human resource 
management activities of the Department of De-
fense.
‘‘(1) identify the approval authority for each de-
fense business system; and 
‘‘(2) for each defense business system for which 
funding is proposed in the budget—
‘‘(A) certify that the defense business sys-
tem complies with the defense business enter-
prise architecture; or 
‘‘(B) explain why funds for such system 
are necessary to maintain a mission critical or 
mission essential system of the Department of 
Defense, notwithstanding its noncompliance 
with the defense business enterprise architec-
ture. 
‘‘(f) CONGRESSIONAL REPORTS.—Not later than 
March 15 of each year from 2005 through 2009, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report on Department of Defense compliance 
with the requirements of this section. The first report shall 
define plans and commitments for meeting the require-
ments of subsection (a), including specific milestones and 
performance measures. Subsequent reports shall—
‘‘(1) describe actions taken and planned for 
meeting the requirements of subsection (a), includ-
ing—
‘‘(A) specific milestones and actual per-
formance against specified performance meas-
ures, and any revision of such milestones and 
performance measures; and 
‘‘(B) specific actions on the defense busi-
ness system modernizations submitted for cer-
tification under such subsection; 
‘‘(2) identify the number of defense business 
system modernizations so certified; 
‘‘(3) identify any defense business system mod-
ernization with an obligation in excess of $1,000,000 
during the preceding fiscal year that was not cer-
tified under subsection (a), and the reasons for the 
waiver; and 
‘‘(4) discuss specific improvements in business 
operations and cost savings resulting from successful 
defense business systems modernization efforts. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘approval authority’, with respect 
to a defense business system, means the Department 
of Defense official responsible for the defense busi-
ness system, as designated by subsection (c). 
‘‘(2) The term ‘defense business system’ means 
an information system, other than a national secu-
rity system, operated by, for, or on behalf of the De-
partment of Defense, including financial systems, 
mixed systems, financial data feeder systems, and 
information technology and information assurance 
infrastructure, used to support business activities, 
such as acquisition, financial management, logistics, 
strategic planning and budgeting, installations and 
environment, and human resource management. 
‘‘(3) The term ‘defense business system mod-
ernization’ means—
‘‘(A) the acquisition or development of a 
new defense business system; or 
‘‘(B) any significant modification or en-
hancement of an existing defense business sys-
tem (other than necessary to maintain current 
services). 
‘‘(4) The term ‘enterprise architecture’ has the 
meaning given that term in section 3601(4) of title 
44. 
‘‘(5) The terms ‘information system’ and ‘infor-
mation technology’ have the meanings given those 
terms in section 11101 of title 40. 
‘‘(6) The term ‘national security system’ has 
the meaning given that term in section 2315 of this 
title.’’.
(2) The table of sections at the beginning of such 
chapter is amended by inserting before the item relating 
to section 2223 the following new item:
‘‘2222. Defense business systems: architecture, accountability, and moderniza-
tion.’’.
(b) DEFENSE
BUSINESS
SYSTEM
MANAGEMENT 
COMMITTEE.—Chapter 7 of such title is amended by add-
ing at the end the following new section: 
‘‘§ 186. Defense business system management Com-
mittee 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense 
shall establish a Defense Business Systems Management 
Committee, to be composed of the following persons: 
‘‘(1) The Deputy Secretary of Defense, who 
shall serve as the chairman of the Committee. 
‘‘(2) The Under Secretary of Defense for Ac-
quisition, Logistics, and Technology. 
‘‘(3) The Under Secretary of Defense for Per-
sonnel and Readiness. 
‘‘(4) The Under Secretary of Defense (Comp-
troller). 
‘‘(5) The Assistant Secretary of Defense for 
Networks and Information Integration. 
‘‘(6) The Secretaries of the military depart-
ments and the heads of the Defense Agencies.
‘‘(7) Such additional personnel of the Depart-
ment of Defense (including personnel assigned to the 
Joint Chiefs of Staff and combatant commands) as 
are designated by the Secretary of Defense. 
‘‘(b) DUTIES.—(1) In addition to any other matters 
assigned to the Committee by the Secretary of Defense, 
the Committee shall—
‘‘(A) recommend to the Secretary of Defense 
policies and procedures necessary to effectively inte-
grate the requirements of section 2222 of this title 
into all business activities and any transformation, 
reform, reorganization, or process improvement ini-
tiatives undertaken within the Department of De-
fense; and 
‘‘(B) review and approve any major update of 
the defense business enterprise architecture devel-
oped under subsection (b) of section 2222 of this 
title, including evolving the architecture, and of de-
fense business systems modernization plans. 
‘‘(2) The Committee shall be responsible for coordi-
nating defense business system modernization initiatives 
to maximize benefits and minimize costs for the Depart-
ment of Defense and periodically report to the Secretary 
on the status of defense business system modernization 
efforts.
‘‘(3) The Committee shall ensure that funds are obli-
gated for defense business system modernization in a man-
ner consistent with section 2222 of this title. 
‘‘(c) DEFINITIONS.—In this section, the terms ‘de-
fense business system’ and ‘defense business system mod-
ernization’ have the meanings given such terms in section 
2222 of this title.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item:
‘‘186. Defense Business System Management Committee.’’.
(c) DELEGATION
OF ADMINISTRATIVE RESPONSI-
BILITY.—The delegation of responsibility for the planning, 
design, acquisition, deployment, operation, maintenance, 
modernization, and oversight of defense business systems 
required by subsection (c) of section 2222 of title 10, 
United States Code, as added by subsection (a)(1), shall 
be completed not later than 60 days after the date of the 
enactment of this Act. 
(d) RELATION TO ANNUAL REGISTRATION REQUIRE-
MENTS.—Nothing in sections 186 and 2222 of title 10, 
United States Code, as added by this section, shall be con-
strued to alter the requirements of section 8084 of the 
Department of Defense Appropriations Act, 2004 (Public 
Law 108–87; 117 Stat. 1091), with regard to information
technology systems (as defined in subsection (d) of such 
section). 
(e) REPEAL OF OBSOLETE FINANCIAL MANAGEMENT 
ENTERPRISE ARCHITECTURE REQUIREMENTS.—Section 
1004 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107–314; 10 U.S.C. 
113 note) is repealed. 
SEC. 333. ESTABLISHMENT OF JOINT PROGRAM OFFICE TO 
IMPROVE INTEROPERABILITY OF BATTLE-
FIELD MANAGEMENT COMMAND AND CON-
TROL SYSTEMS. 
(a) OFFICE FOR FAMILY OF INTEROPERABLE PIC-
TURES.—The Secretary of Defense shall designate a single 
joint program office in the Department of Defense for the 
management of battlefield management command and 
control systems of the Armed Forces, known as the ‘‘Fam-
ily of Interoperable Pictures’’, to improve the interoper-
ability of such systems so that members of the Armed 
Forces may access a common operational picture of the 
battlefield. The office shall include at a minimum the Sin-
gle Integrated Air Picture, the Single Integrated Ground 
Picture, the Single Integrated Maritime Picture, the Spe-
cial Operations Forces Picture, and the Single Integrated 
Space Picture. The Secretary shall provide for the head 
of the office to be selected on a rotating basis among re-
lated offices of the Army, Navy, Air Force, and Marine 
Corps. 
(b) COMMON SYSTEMS ARCHITECTURE.—The Sec-
retary of Defense shall develop, implement, and maintain 
a common systems architecture for all battlefield manage-
ment command and control systems included in the Fam-
ily of Interoperable Pictures. 
(c) 
CONSOLIDATED
PROGRAM
ELEMENTS.—All 
funds for development and procurement related to the 
Family of Interoperable Pictures shall be consolidated 
under the office designated under subsection (a). 
(d) PROGRAM DEVELOPMENT.—The head of the of-
fice designated under subsection (a), subject to the author-
ity, direction, and control of the Secretary of Defense, 
shall—
(1) establish and control the performance speci-
fications for the battlefield management command 
and control systems included in the Family of Inter-
operable Pictures; 
(2) establish and control the standards for de-
velopment of the software and equipment for the 
Family of Interoperable Pictures; 
(3) establish and control the standards for op-
eration of the Family of Interoperable Pictures; and
(4) develop a single, unified concept of oper-
ations for all users of the Family of Interoperable 
Pictures. 
Subtitle E—Readiness Reporting 
Requirements 
SEC. 341. ANNUAL REPORT ON DEPARTMENT OF DEFENSE 
OPERATION AND FINANCIAL SUPPORT FOR 
MILITARY MUSEUMS. 
(a) REPORT REQUIRED.—Chapter 23 of title 10, 
United States Code, is amended by adding at the end the 
following new section: 
‘‘§ 489. Annual report on Department of Defense oper-
ation and financial support for military 
museums 
‘‘(a) REPORT REQUIRED.—As part of the budget ma-
terials submitted to Congress in connection with the sub-
mission of the budget for a fiscal year pursuant to section 
1105 of title 31, but in no case later than March 15 of 
each year, the Secretary of Defense shall submit a report 
identifying all museums that, during the preceding fiscal 
year—
‘‘(1) were operated by the Department of De-
fense or a military department; or 
‘‘(2) were otherwise supported using funds ap-
propriated to the Department of Defense.
‘‘(b) CONTENT OF REPORT.—For each museum iden-
tified in a report under this section, the Secretary of De-
fense shall include in the report the following: 
‘‘(1) The purpose and functions of the museum 
and the justification for the museum 
‘‘(2) A description of the facilities dedicated to 
the museum. 
‘‘(3) An itemized listing of the funds appro-
priated to the Department of Defense that were obli-
gated to support the museum during the fiscal year 
covered by the report, as well as any other Federal 
funds, funds from a nonappropriated fund instru-
mentality account of the Department of Defense, 
and non-Federal funds obligated to support the mu-
seum. 
‘‘(4) The number of civilian employees of the 
Department of Defense who serve full-time or part-
time at the museum. 
‘‘(5) The number of members of the armed 
forces who serve full-time or part-time at the mu-
seum.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘489. Annual report on Department of Defense operation and financial support 
for military museums.’’.
SEC. 342. REPORT ON DEPARTMENT OF DEFENSE PRO-
GRAMS FOR PREPOSITIONING OF MATERIAL 
AND EQUIPMENT. 
(a) SECRETARY OF DEFENSE ASSESSMENT AND RE-
PORT.—(1) The Secretary of Defense shall conduct an as-
sessment of the programs of the Department of Defense 
for the prepositioning of material and equipment. Such as-
sessment shall particularly focus on how those programs 
will be incorporated into achievement of the goals of the 
Secretary of Defense (referred to as the ‘‘10–30–30’’ 
goals) for the Armed Forces to have the capability, from 
the onset of a contingency situation, of deploying forces 
to a distant theater within 10 days, defeating an enemy 
within 30 days, and being ready for an additional conflict 
within another 30 days. 
(2) The Secretary shall submit to Congress a report 
on such assessment not later than October 1, 2005. 
(b) MATTERS TO BE INCLUDED.—The assessment 
under subsection (a) shall include the prepositioning pro-
grams of each of the Armed Forces and of the United 
States Special Operations Command as well as assessment 
of each of the following: 
(1) Use of prepositioned equipment as part of 
Operation Iraqi Freedom and Operation Enduring 
Freedom and potential solutions to identified chal-
lenges.
(2) Changes to doctrine, strategy, and transpor-
tation plans to support the goals of the Secretary 
described in subsection (a) and referred to as the 
10–30–30 goals in light of the current lift con-
straints facing both land and sea components of lift 
as well as the emerging mobility requirements. 
(3) Modifications of the prepositioning pro-
grams of the Armed Forces in order to adapt to 
pending modularity concepts, future force structure 
changes, and new sea basing concepts in relation to 
current and potential areas of instability. 
(4) Joint operations and training that include 
theater opening requirements at potential aerial and 
sea ports of debarkation, joint force reception capa-
bilities, joint theater distribution operations, and use 
of joint prepositioned stocks and systems. 
Subtitle F—Other Matters 
SEC. 351. EXTENSION OF ARSENAL SUPPORT PROGRAM INI-
TIATIVE. 
(a) DURATION OF PROGRAM.—Subsection (a) of sec-
tion 343 of the Floyd D. Spence National Defense Author-
ization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106–398; 10 U.S.C. 4551 note) is amended 
by striking ‘‘2004’’ and inserting ‘‘2008’’.
(b) ADDITIONAL REPORT REQUIRED.—Subsection 
(g) of such section is amended—
(1) in paragraph (1), by striking ‘‘2004’’ and 
inserting ‘‘2008’’; and 
(2) in paragraph (2), by striking ‘‘2003’’ and 
inserting ‘‘2007’’. 
SEC. 352. LIMITATION ON PREPARATION OR IMPLEMENTA-
TION OF MID-RANGE FINANCIAL IMPROVE-
MENT PLAN. 
Amounts appropriated to the Department of Defense 
for fiscal year 2005 for operation and maintenance may 
not be obligated for the purpose of preparing or imple-
menting the Mid-Range Financial Improvement Plan until 
the Secretary of Defense submits a report to the congres-
sional defense committees containing, for each of the mili-
tary departments and the Defense Agencies—
(1) an explanation of the manner in which 
funds will be used for such purpose during that fis-
cal year; and 
(2) an estimate of the costs for future fiscal 
years to prepare and implement the plan.
SEC. 353. PROCUREMENT OF FOLLOW-ON CONTRACTS FOR 
THE OPERATION OF FIVE CHAMPION-CLASS 
T–5 TANK VESSELS. 
The Secretary of the Navy may consider bids or pro-
posals for the follow-on contracts for the Department of 
the Navy contracts for the operation of five Champion-
class T–5 tank vessels only from an entity that is a citizen 
under section 2 of the Shipping Act, 1916 (46 App. U.S.C. 
802). 
SEC. 354. SENSE OF CONGRESS ON AMERICA’S NATIONAL 
WORLD WAR I MUSEUM. 
(a) FINDINGS.—The Congress finds as follows: 
(1) The Liberty Memorial Museum in Kansas 
City, Missouri, was built in 1926 in honor of those 
individuals who served in World War I in defense of 
liberty and the Nation. 
(2) The Liberty Memorial Association, a non-
profit organization which originally built the Liberty 
Memorial Museum, is responsible for the finances, 
operations, and collections management of the Lib-
erty Memorial Museum. 
(3) The Liberty Memorial Museum is the only 
public museum in the Nation that exists for the ex-
clusive purpose of interpreting the experiences of the 
United States and its allies in the World War I
years (1914–1918), both on the battlefield and on 
the home front. 
(4) The Liberty Memorial Museum project 
began after the 1918 Armistice through the efforts 
of a large-scale, grass-roots civic and fundraising ef-
fort by the citizens and veterans of the Kansas City 
metropolitan area. After the conclusion of a national 
architectural design competition, ground was broken 
in 1921, construction began in 1923, and the Lib-
erty Memorial Museum was opened to the public in 
1926. 
(5) In 1994, the Liberty Memorial Museum 
closed for a massive restoration and expansion 
project. The restored museum reopened to the public 
on Memorial Day, 2002, during a gala rededication 
ceremony. 
(6) Exhibits prepared for the original museum 
buildings presaged the dramatic, underground ex-
pansion of core exhibition gallery space, with over 
30,000 square feet of new interpretive and edu-
cational exhibits currently in development. The new 
exhibits, along with an expanded research library 
and archives, will more fully utilize the many thou-
sands of historical objects, books, maps, posters, 
photographs, diaries, letters, and reminiscences of
World War I participants that are preserved for pos-
terity in the Liberty Memorial Museum’s collections. 
The new core exhibition is scheduled to open on Vet-
erans Day, 2006. 
(7) The City of Kansas City, the State of Mis-
souri, and thousands of private donors and philan-
thropic foundations have contributed millions of dol-
lars to build and later to restore this national treas-
ure. The Liberty Memorial Museum continues to re-
ceive the strong support of residents from the States 
of Missouri and Kansas and across the Nation. 
(8) Since the restoration and rededication of 
2002, the Liberty Memorial Museum has attracted 
thousands of visitors from across the United States 
and many foreign countries. 
(9) There remains a need to preserve in a mu-
seum setting evidence of the honor, courage, patriot-
ism, and sacrifice of those Americans who offered 
their services and who gave their lives in defense of 
liberty during World War I, evidence of the roles of 
women and African Americans during World War I, 
and evidence of other relevant subjects. 
(10) The Liberty Memorial Museum seeks to 
educate a diverse group of audiences through its 
comprehensive collection of historical materials, em-
phasizing eyewitness accounts of the participants on 
the battlefield and the home front and the impact of 
World War I on individuals, then and now. The Lib-
erty Memorial Museum continues to actively acquire 
and preserve such materials. 
(11) A great opportunity exists to use the in-
valuable resources of the Liberty Memorial Museum 
to teach the ‘‘Lessons of Liberty’’ to the Nation’s 
schoolchildren through on-site visits, classroom cur-
riculum development, distance learning, and other 
educational initiatives. 
(12) The Liberty Memorial Museum should al-
ways be the Nation’s museum of the national experi-
ence in the World War I years (1914–1918), where 
people go to learn about this critical period and 
where the Nation’s history of this monumental 
struggle will be preserved so that generations of the 
21st century may understand the role played by the 
United States in the preservation and advancement 
of democracy, freedom, and liberty in the early 20th 
century. 
(13) This initiative to recognize and preserve 
the history of the Nation’s sacrifices in World War 
I will take on added significance as the Nation ap-
proaches the centennial observance of this event.
(14) It is fitting and proper to refer to the Lib-
erty Memorial Museum as ‘‘America’s National 
World War I Museum’’. 
(b) SENSE OF CONGRESS.—The Congress—
(1) recognizes the Liberty Memorial Museum in 
Kansas City, Missouri, including the museum’s fu-
ture and expanded exhibits, collections, library, ar-
chives, and educational programs, as ‘‘America’s Na-
tional World War I Museum’’; 
(2) recognizes that the continuing collection, 
preservation, and interpretation of the historical ob-
jects and other historical materials held by the Lib-
erty Memorial Museum enhance the knowledge and 
understanding of the Nation’s people of the Amer-
ican and allied experience during the World War I 
years (1914–1918), both on the battlefield and on 
the home front; 
(3) commends the ongoing development and vis-
ibility of ‘‘Lessons of Liberty’’ educational outreach 
programs for teachers and students throughout the 
Nation; and 
(4) encourages the need for present generations 
to understand the magnitude of World War I, how 
it shaped the Nation, other countries, and later 
world events, and how the sacrifices made then
helped preserve liberty, democracy, and other found-
ing principles for generations to come.
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, 2005, as follows: 
(1) The Army, 482,400. 
(2) The Navy, 365,900. 
(3) The Marine Corps, 175,000. 
(4) The Air Force, 359,700.
SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END 
STRENGTH MINIMUM LEVELS. 
Effective October 1, 2004, section 691(b) of title 10, 
United States Code, is amended as follows: 
(1) NAVY.—Paragraph (2) is amended by strik-
ing ‘‘373,800’’ and inserting ‘‘365,900’’. 
(2) AIR FORCE.—Paragraph (4) is amended by 
striking ‘‘359,300’’ and inserting ‘‘359,700’’. 
SEC. 403. MAXIMUM NUMBER OF RESERVE PERSONNEL AU-
THORIZED TO BE ON ACTIVE DUTY FOR 
OPERATIONAL SUPPORT. 
During fiscal year 2005, the maximum number of 
members of the reserve components of the Armed Forces
who may be serving at any time on full-time operational 
support duty under section 115(b) of title 10, United 
States Code, is the following: 
(1) The Army National Guard of the United 
States, 10,300. 
(2) The Army Reserve, 5,000. 
(3) The Naval Reserve, 6,200. 
(4) The Marine Corps Reserve, 2,500. 
(5) The Air National Guard of the United 
States, 10,100. 
(6) The Air Force Reserve, 3,600.
SEC. 404. ACCOUNTING AND MANAGEMENT OF RESERVE 
COMPONENT PERSONNEL PERFORMING AC-
TIVE DUTY OR FULL-TIME NATIONAL GUARD 
DUTY FOR OPERATIONAL SUPPORT. 
(a) STRENGTH AUTHORIZATIONS.—Section 115 of 
title 10, United States Code, is amended—
(1) in subsection (a)(1)(A), by inserting ‘‘unless 
on active duty pursuant to subsection (b)’’ after ‘‘ac-
tive-duty personnel’’; 
(2) in subsection (a)(1)(B), by inserting ‘‘unless 
on active duty or full-time National Guard duty pur-
suant to subsection (b)’’ after ‘‘reserve personnel’’;
(3) by redesignating subsections (b), (c), (d), 
(e), (f), (g) and (h) as subsections (c), (d), (e), (f), 
(g), (h) and (i), respectively; and 
(4) by inserting after subsection (a) the fol-
lowing new subsection (b): 
‘‘(b) CERTAIN RESERVES ON ACTIVE DUTY TO BE 
AUTHORIZED BY LAW.—(1) Congress shall annually au-
thorize the maximum number of members of a reserve 
component permitted to be on active duty or full-time Na-
tional Guard duty at any given time who are called or or-
dered to—
‘‘(A) active duty under section 12301(d) of this 
title for the purpose of providing operational sup-
port, as prescribed in regulation issued by the Sec-
retary of Defense; 
‘‘(B) full-time National Guard duty under sec-
tion 502(f)(2) of title 32 for the purpose of pro-
viding operational support when authorized by the 
Secretary of Defense; 
‘‘(C) active duty under section 12301(d) of this 
title or full-time National Guard duty under section 
502(f) of title 32 for the purpose of preparing for 
and performing funeral honors functions for funerals 
of veterans under section 1491 of this title;
‘‘(D) active duty or retained on active duty 
under sections 12301(g) of this title while in a cap-
tive status; or 
‘‘(E) active duty or retained on active duty 
under 12301(h) or 12322 of this title for the pur-
pose of medical evaluation or treatment. 
‘‘(2) A member of a reserve component who exceeds 
either of the following limits shall be included in the 
strength authorized under subparagraph (A) or subpara-
graph (B), as appropriate, of subsection (a)(1): 
‘‘(A) A call or order to active duty or full-time 
National Guard duty that specifies a period greater 
than three years. 
‘‘(B) The cumulative periods of active duty and 
full-time National Guard duty performed by the 
member exceed 1095 days in the previous 1460 
days. 
‘‘(3) In determining the period of active service under 
paragraph (2), the following periods of active service per-
formed by a member shall not be included: 
‘‘(A) All periods of active duty performed by a 
member who has not previously served in the Se-
lected Reserve of the Ready Reserve. 
‘‘(B) All periods of active duty or full-time Na-
tional Guard duty for which the member is exempt
from strength accounting under paragraphs (1) 
through (7) of subsection (i).’’. 
(b) LIMITATION ON APPROPRIATIONS.—Subsection 
(c) of such section (as redesignated by subsection (a)(3)) 
is amended—
(1) by striking ‘‘or’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) the use of reserve component personnel to 
perform active duty or full-time National Guard 
duty under subsection (b) unless the strength for 
such personnel for that reserve component for that 
fiscal year has been authorized by law.’’. 
(c) AUTHORITY
FOR
SECRETARY
OF
DEFENSE 
VARIANCES IN MAXIMUM STRENGTHS.—Subsection (f) of 
such section (as redesignated by subsection (a)(2)) is 
amended—
(1) by striking ‘‘END’’ in the heading; 
(2) by striking ‘‘and’’ at the end of paragraph 
(2); 
(3) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and
(4) by adding at the end the following new 
paragraph: 
‘‘(4) increase the maximum strength authorized pur-
suant to subsection (b)(1) for a fiscal year for certain re-
serves on active duty for any of the reserve components 
by a number equal to not more than 10 percent of that 
strength.’’. 
(d) CONFORMING AMENDMENTS TO SECTION 115.—
Such section is further amended as follows: 
(1) Subsection (e) (as redesignated by sub-
section (a)(3)) is amended—
(A) in paragraph (1), by striking ‘‘sub-
section (a) or (c)’’ and inserting ‘‘subsection (a) 
or (d)’’; and 
(B) in paragraph (2)—
(i) by striking ‘‘subsections (a) and 
(c)’’; and inserting ‘‘subsections (a) and 
(d)’’; 
(ii) by striking ‘‘pursuant to sub-
section (e)) and subsection (c)’’ and insert-
ing ‘‘pursuant to subsection (f)) and sub-
section (d)’’ each place it appears. 
(2) Subsection (g) (as redesignated by sub-
section (a)(3)) is amended by striking ‘‘subsection
(e)(1)’’ in paragraph (2) and inserting ‘‘subsection 
(f)(1)’’. 
(3) Subsection (i) (as redesignated by sub-
section (a)(3)) is amended to read as follows: 
‘‘(i) CERTAIN PERSONNEL EXCLUDED FROM COUNT-
ING FOR ACTIVE-DUTY END STRENGTHS.—In counting 
personnel for the purpose of the end strengths authorized 
pursuant to subsection (a)(1), persons in the following cat-
egories shall be excluded: 
‘‘(1) Members of a reserve component ordered 
to active duty under section 12301(a) of this title. 
‘‘(2) Members of a reserve component in an ac-
tive status ordered to active duty under section 
12301(b) of this title. 
‘‘(3) Members of the Ready Reserve ordered to 
active duty under section 12302 of this title. 
‘‘(4) Members of the Selected Reserve of the 
Ready Reserve or members of the Individual Ready 
Reserve mobilization category described in section 
10144(b) of this title ordered to active duty under 
section 12304 of this title. 
‘‘(5) Members of the National Guard called into 
Federal service under section 12406 of this title. 
‘‘(6) Members of the militia called into Federal 
service under chapter 15 of this title.
‘‘(7) Members of reserve components on active 
duty for training. 
‘‘(8) Members of the Selected Reserve of the 
Ready Reserve on active duty to support programs 
described in section 1203(b) of the Cooperative 
Threat Reduction Act of 1993 (22 U.S.C. 5952(b)). 
‘‘(9) Members of the National Guard on active 
duty or full-time National Guard duty for the pur-
pose of carrying out drug interdiction and counter-
drug activities under section 112 of title 32. 
‘‘(10) Members of a reserve component on ac-
tive duty under section 10(b)(2) of the Military Se-
lective Service Act (50 U.S.C. App. 460(b)(2)) for 
the administration of the Selective Service System. 
‘‘(11) Members of the National Guard on full-
time National Guard duty for the purpose of pro-
viding command, administrative, training, or support 
services for the National Guard Challenge Program 
authorized by section 509 of title 32.’’. 
(e) MILITARY TO MILITARY CONTACT STRENGTH AC-
COUNTING.—Subsection (f) of section 168 of such title is 
amended to read as follows: 
‘‘(f) ACTIVE DUTY END STRENGTHS.—A member of 
a reserve component who is engaged in activities author-
ized under this section shall not be counted for purposes 
of the following personnel strength limitations: 
‘‘(1) The end strength for active-duty personnel 
authorized pursuant to section 115(a)(1) of this title 
for the fiscal year in which the member carries out 
the activities referred to under this section. 
‘‘(2) The authorized daily average for members 
in pay grades E–8 and E–9 under section 517 of 
this title for the calendar year in which the member 
carries out such activities. 
(3) The authorized strengths for commissioned 
officers under section 523 of this title for the fiscal 
year in which the member carries out such activities. 
(f) E–8 AND E–9 STRENGTH ACCOUNTING.—Sub-
section (a) of section 517 of such title is amended by strik-
ing ‘‘(other than for training) in connection with orga-
nizing, administering, recruiting, instructing, or training 
the reserve component of an armed force.’’ and inserting 
‘‘as authorized under section 115(a)(1)(B) or 115(b) of 
this title, or excluded from counting for active duty end 
strengths under section 115(i) of this title.’’. 
(g) FIELD GRADE OFFICER STRENGTH ACCOUNT-
ING.—(1) Paragraph (1) of section 523(b) of such title 
is amended to read as follows:
‘‘(A) on active duty as authorized under 
section 115(a)(1)(B) or 115(b)(1) of this title, 
or excluded from counting for active duty end 
strengths under section 115(i) of this title; 
‘‘(B) on active duty under section 10211, 
10302 through 10305, or 12402 of this title or 
under section 708 of title 32; or 
‘‘(C) on full-time National Guard duty.’’; 
and 
(2) Paragraph (7) of section 523(b) is amended by 
striking ‘‘Reserve or retired officers’’ and inserting ‘‘Re-
tired officers’’. 
(h) ACTIVE GUARD AND RESERVE FIELD GRADE OF-
FICER STRENGTH ACCOUNTING.—Paragraph (2) of sec-
tion 12011(e) of such title is amended to read as follows: 
‘‘(2) Full-time National Guard duty (other than 
for training) under section 502(f) of title 32, except 
for duty under section 115(b)(1)(B) and (C) of this 
title and section 115(i)(9) of this title.’’. 
(i) WARRANT OFFICER ACTIVE-DUTY LIST EXCLU-
SION.—Paragraph (1) of section 582 of such title is 
amended to read as follows: 
‘‘(1) Reserve warrant officers—
‘‘(A) on active duty as authorized under 
section 115(a)(1)(B) or 115(b)(1) of this title,
or excluded from counting for active duty end 
strengths under section 115(i) of this title; or 
‘‘(B) on full-time National Guard duty.’’. 
(j) OFFICER ACTIVE-DUTY LIST, APPLICABILITY OF 
CHAPTER.—Paragraph (1) of section 641 of such is 
amended to read as follows: 
‘‘(1) Reserve officers—
‘‘(A) on active duty authorized under sec-
tion 115(a)(1)(B) or 115(b)(1) of this title, or 
excluded from counting for active duty end 
strengths under section 115(i) of this title; 
‘‘(B) on active duty under section 3038, 
5143, 5144, 8038, 10211, 10301 through 
10305, 10502, 10505, 10506(a), 10506(b), 
10507, or 12402 of this title or section 708 of 
title 32; or 
‘‘(C) on full-time National Guard duty.’’. 
(k) STRENGTH ACCOUNTING FOR MEMBERS PER-
FORMING DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES.—Section 112 of title 32, United States Code, 
is amended—
(1) by striking subsection (e); 
(2) by redesignating subsections (f), (g), (h) 
and (i) as subsections (e), (f), (g) and (h) respec-
tively; and
(3) in paragraph (1) of subsection (e), as redes-
ignated by paragraph (2), by striking ‘‘for a period 
of more than 180 days’’ each place it appears. 
(l) REPORT.—Not later than June 1, 2005, the Sec-
retary of Defense shall report to the Committee on Armed 
Services of the Senate and the Committee on Armed Serv-
ices of the House of Representatives the Secretary’s rec-
ommendations regarding the exemptions provided in para-
graphs (8) through (11) by section 115(i) of title 10, 
United States Code, as amended by this section. The rec-
ommendations shall address the manner in personnel cov-
ered by those exemptions shall be accounted for in author-
izations provided by section 115 of such title. The objec-
tive of the analysis should be to terminate the need for 
such exemptions after September 30, 2006. 
(m) REGULATIONS.—The Secretary of Defense shall 
prescribe by regulation the meaning of the term ‘‘oper-
ational support’’ for purposes of paragraph (1) of sub-
section (b) of section 115 of title 10, United States Code, 
as added by subsection (a).
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 
components as of September 30, 2005, as follows:
(1) The Army National Guard of the United 
States, 350,000. 
(2) The Army Reserve, 205,000. 
(3) The Naval Reserve, 83,400. 
(4) The Marine Corps Reserve, 39,600. 
(5) The Air National Guard of the United 
States, 106,800. 
(6) The Air Force Reserve, 76,100. 
(7) The Coast Guard Reserve, 10,000. 
(b) ADJUSTMENTS.—The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve com-
ponent 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
Reserve of such reserve component shall be increased pro-
portionately 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, 2005, the following num-
ber 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, re-
cruiting, instructing, or training the reserve components: 
(1) The Army National Guard of the United 
States, 26,476. 
(2) The Army Reserve, 14,970. 
(3) The Naval Reserve, 14,152. 
(4) The Marine Corps Reserve, 2,261. 
(5) The Air National Guard of the United 
States, 12,225. 
(6) The Air Force Reserve, 1,900.
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 2005 for the re-
serve 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 Reserve, 7,299. 
(2) For the Army National Guard of the United 
States, 25,076. 
(3) For the Air Force Reserve, 9,954. 
(4) For the Air National Guard of the United 
States, 22,956.
SEC. 414. FISCAL YEAR 2005 LIMITATION ON NUMBER OF 
NON-DUAL STATUS TECHNICIANS. 
(a) LIMITATIONS.—(1) Within the limitation pro-
vided in section 10217(c)(2) of title 10, United States 
Code, the number of non-dual status technicians employed 
by the National Guard as of September 30, 2005, may 
not exceed the following: 
(A) For the Army National Guard of the 
United States, 1,600. 
(B) For the Air National Guard of the United 
States, 350. 
(2) The number of non-dual status technicians em-
ployed by the Army Reserve as of September 30, 2005, 
may not exceed 795. 
(3) The number of non-dual status technicians em-
ployed by the Air Force Reserve as of September 30, 
2005, may not exceed 90.
100
(b) 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.
Subtitle C—Authorizations of 
Appropriations 
SEC. 421. MILITARY PERSONNEL. 
There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal 
year 2005 a total of $104,647,558,000. The authorization 
in the preceding sentence supersedes any other authoriza-
tion of appropriations (definite or indefinite) for such pur-
pose for fiscal year 2005. 
SEC. 422. ARMED FORCES RETIREMENT HOME. 
There is hereby authorized to be appropriated for fis-
cal year 2005 from the Armed Forces Retirement Home 
Trust Fund the sum of $61,195,000 for the operation of 
the Armed Forces Retirement Home.
101
TITLE V—MILITARY PERSONNEL 
POLICY
Subtitle A—General and Flag 
Officer Matters 
SEC. 501. LENGTH OF SERVICE FOR SERVICE CHIEFS. 
(a) CHIEF OF STAFF OF THE ARMY.—Paragraph (1) 
of section 3033(a) of title 10, United States Code, is 
amended—
(1) by striking ‘‘for a period of four years’’ in 
the first sentence; and 
(2) by striking the second and third sentences 
and inserting the following: ‘‘The Chief of Staff 
serves at the pleasure of the President for a term of 
four years. The President may extend the service of 
an officer as Chief of Staff for an additional period 
of not to exceed two years. In time of war or during 
a national emergency declared by Congress, the 
President may extend the service of an officer as 
Chief of Staff for such additional periods as the 
President determines necessary, except that the total 
period of an officer’s service as Chief of Staff may 
not exceed eight years.’’. 
(b) CHIEF OF NAVAL OPERATIONS.—Paragraph (1) 
of section 5033(a) of such title is amended by striking the 
third and fourth sentences and inserting the following:
102
‘‘The Chief of Naval Operations serves at the pleasure of 
the President. The President may extend the service of 
an officer as Chief of Naval Operations for an additional 
period of not to exceed two years. In time of war or during 
a national emergency declared by Congress, the President 
may extend the service of an officer as Chief of Naval Op-
erations for such additional periods as the President deter-
mines necessary, except that the total period of an officer’s 
service as Chief of Naval Operations may not exceed eight 
years.’’. 
(c) COMMANDANT OF THE MARINE CORPS.—Para-
graph (1) of section 5043(a) of such title is amended by 
striking the third and fourth sentences and inserting the 
following: ‘‘The Commandant serves at the pleasure of the 
President. The President may extend the service of an of-
ficer as Commandant for an additional period of not to 
exceed two years. In time of war or during a national 
emergency declared by Congress, the President may ex-
tend the service of an officer as Commandant for such 
additional periods as the President determines necessary, 
except that the total period of an officer’s service as Com-
mandant may not exceed eight years.’’. 
(d) CHIEF OF STAFF OF THE AIR FORCE.—Para-
graph (1) of section 8033(a) of such title is amended to 
read as follows:
103
(1) by striking ‘‘for a period of four years’’ in 
the first sentence; and 
(2) by striking the second and third sentences 
and inserting the following: ‘‘The Chief of Staff 
serves at the pleasure of the President for a period 
of four years. The President may extend the service 
of an officer as Chief of Staff for an additional pe-
riod of not to exceed two years. In time of war or 
during a national emergency declared by Congress, 
the President may extend the service of an officer as 
Chief of Staff for such additional periods as the 
President determines necessary, except that the total 
period of an officer’s service as Chief of Staff may 
not exceed eight years.’’.
SEC. 502. REPEAL OF REQUIREMENT THAT DEPUTY CHIEFS 
AND ASSISTANT CHIEFS OF NAVAL OPER-
ATIONS BE SELECTED FROM OFFICERS IN 
THE LINE OF THE NAVY. 
(a) DEPUTY CHIEFS OF NAVAL OPERATIONS.—Sec-
tion 5036(a) of title 10, United States Code, is amended 
by striking ‘‘in the line’’. 
(b) ASSISTANT CHIEFS OF NAVAL OPERATIONS.—
Section 5037(a) of such title is amended by striking ‘‘in 
the line’’.
104
SEC. 503. INCREASE IN AGE LIMIT FOR DEFERRAL OF MAN-
DATORY RETIREMENT FOR UP TO 10 SENIOR 
GENERAL AND FLAG OFFICERS. 
Section 1251(b) of title 10, United States Code, is 
amended by striking ‘‘64 years of age’’ and inserting ‘‘66 
years of age’’.
SEC. 504. INCREASED FLEXIBILITY FOR VOLUNTARY RE-
TIREMENT FOR MILITARY OFFICERS. 
(a) IN GENERAL.—Section 1370 of title 10, United 
States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘except as provided in 
paragraph (2)’’ and inserting ‘‘subject to 
paragraphs (2) and (3)’’; and 
(ii) by striking ‘‘, for not less than six 
months’’; 
(B) by redesignating paragraph (3) as 
paragraph (4); and 
(C) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) In order to be eligible for voluntary retirement 
under this title in a grade below the grade of lieutenant 
colonel or commander, a commissioned officer of the 
Army, Navy, Air Force, or Marine Corps covered by para-
105
graph (1) must have served on active duty in that grade 
for not less than six months. 
‘‘(3)(A) In order to be eligible for voluntary retire-
ment in a grade above major or lieutenant commander and 
below brigadier general or rear admiral (lower half), a 
commissioned officer of the Army, Navy, Air Force, or 
Marine Corps covered by paragraph (1) must have served 
on active duty in that grade for not less than three years, 
except that the Secretary of Defense may authorize the 
Secretary of the military department concerned to reduce 
such period to a period not less than two years. 
‘‘(B) In order to be eligible for voluntary retirement 
in a grade above colonel or captain, in the case of the 
Navy, a commissioned officer of the Army, Navy, Air 
Force, or Marine Corps covered by paragraph (1) must 
have served on active duty in that grade for not less than 
one year. 
‘‘(C) An officer in a grade above major general or 
rear admiral may be retired in the highest grade in which 
the officer served on active duty satisfactorily for not less 
than one year, upon approval by the Secretary of the mili-
tary department concerned and concurrence by the Sec-
retary of Defense. The function of the Secretary of De-
fense under the preceding sentence may only be delegated 
to a civilian official in the Office of the Secretary of De-
107
partment concerned to reduce such 
period to a period not less than two 
years’’ after ‘‘three years’’; and 
(IV) by adding at the end the fol-
lowing new clauses: 
‘‘(ii) In order to be credited with satisfactory service 
in a grade above colonel or captain, in the case of the 
Navy, a person covered by paragraph (1) must have served 
satisfactorily in that grade (as determined by the Sec-
retary of the military department concerned) as a reserve 
commissioned officer in active status, or in a retired status 
on active duty, for not less than one year. 
‘‘(iii) An officer covered by paragraph (1) who is in 
a grade above the grade of major general or rear admiral 
may be retired in the highest grade in which the officer 
served satisfactorily for not less than one year, upon ap-
proval by the Secretary of the military department con-
cerned and concurrence by the Secretary of Defense. The 
function of the Secretary of Defense under the preceding 
sentence may only be delegated to a civilian official in the 
Office of the Secretary of Defense appointed by the presi-
dent, by and with the advice and consent of the Senate.’’; 
(ii) in subparagraphs (D) and (E), by 
striking subparagraph (A)’’ and inserting 
‘‘subparagraph (A)(i)’’; and
108
(iii) by striking subparagraph (F); 
and 
(B) by striking paragraphs (5) and (6); 
and 
(5) by striking subsection (e). 
(b) 
CONFORMING
AMENDMENTS.—Section 
1406(i)(2) of such title is amended—
(1) in the paragraph heading, by striking 
‘‘MEMBERS’’ and all that follows through ‘‘SATISFAC-
TORILY’’ and inserting ‘‘ENLISTED
MEMBERS
RE-
DUCED IN GRADE’’; 
(2) by striking ‘‘a member’’ and inserting ‘‘an 
enlisted member’’; 
(3) by striking ‘‘1998—’’ and all that follows 
through ‘‘is reduced in’’ and inserting ‘‘1998, is re-
duced in’’; 
(4) by striking ‘‘; or’’ and inserting a period; 
and 
(5) by striking subparagraph (B). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to the determination 
of the retired grade of members of the Armed Forces retir-
ing on or after the date of the enactment of this Act.
109
SEC. 505. REPEAL OF REQUIREMENT THAT NO MORE THAN 
50 PERCENT OF ACTIVE DUTY GENERAL AND 
FLAG OFFICERS BE IN GRADES ABOVE BRIG-
ADIER 
GENERAL 
AND 
REAR 
ADMIRAL 
(LOWER HALF). 
(a) REPEAL
OF DISTRIBUTION REQUIREMENT.—
Subsection (a) of section 525 of title 10, United States 
Code, is repealed. 
(b) REORGANIZATION OF SECTION.—Such section is 
further amended—
(1) by striking ‘‘(b)(1) No appointment’’ and 
inserting ‘‘(a) LIMITATION ON NUMBER OF GEN-
ERAL AND FLAG OFFICERS IN SENIOR GRADES.—
(1) No appointment’’; and 
(2) by striking ‘‘(3) An officer’’ and inserting 
‘‘(b) SPECIAL RULES AND EXCEPTIONS.—(1) An of-
ficer’’; and 
(3) by redesignating paragraphs (4), (5), (6), 
(7), and (8) as paragraphs (2), (3), (4), (5), and 
(6), respectively. 
(c) CONFORMING AMENDMENTS.—(1) Subsection (b) 
of such section (as designated by subsection (a)(2)) is 
amended as follows: 
(A) Paragraph (1) (as redesignated by sub-
section (a)(2)), paragraph (2)(A) (as redesignated 
by subsection (a)(3)), and paragraph (6) (as redesig-
110
nated by subsection (a)(3)) are amended by striking 
‘‘paragraph (1) or (2)’’ and inserting ‘‘subsection 
(a)’’. 
(B) Paragraph (3)(A) (as so redesignated) is 
amended by striking ‘‘under the first sentence of 
paragraph (1) or (2), as applicable’’ and inserting 
‘‘under subsection (a)’’. 
(C) Paragraph (4) (as so redesignated) and the 
first and third sentences of paragraph (5) (as so re-
designated) are amended by striking ‘‘paragraph 
(1)’’ and inserting ‘‘subsection (a)(1)’’. 
(D) The second sentence of paragraph (5) (as 
so redesignated) is amended by striking ‘‘paragraph 
(1) or (2)’’ and inserting ‘‘subsection (a)(2)’’. 
(2) Subsection (c) of such section is amended—
(A) by striking ‘‘(c)(1)’’ and inserting ‘(c) ‘RE-
ALLOCATION AUTHORITY.—(1)’’; 
(B) in paragraph (1)(A), by striking ‘‘sub-
section (b)(1)’’ and inserting ‘‘subsection (a)(1)’’; 
(C) in paragraph (1)(B), by striking ‘‘sub-
section (b)(2)’’ and inserting ‘‘subsection (a)(2)’’; 
and 
(D) in paragraph (3)(A), by striking ‘‘sub-
section (b)’’ and inserting ‘‘subsections (a) and (b)’’.
111
(3) Subsection (d) of such section is amended 
by inserting ‘‘SPECIAL RULE FOR OFFICERS FOR-
MERLY
ON JOINT CHIEFS
OF STAFF.—’’ after 
‘‘(d)’’. 
(d) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 525. Distribution in grade: general and flag officers 
on active duty’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 32 of such title is 
amended to read as follows:
‘‘525. Distribution in grade: general and flag officers on active duty.’’.
SEC. 506. REVISION TO TERMS FOR ASSISTANTS TO THE 
CHAIRMAN OF THE JOINT CHIEFS OF STAFF 
FOR NATIONAL GUARD AND RESERVE MAT-
TERS. 
(a) CODIFICATION
AND REVISION.—Chapter 5 of 
title 10, United States Code, is amended by adding at the 
end a new section 156 consisting of—
(1) the following section heading: 
‘‘§ 156. Assistants to the Chairman for National 
Guard matters and for Reserve matters’’; 
and 
(2) a text consisting of the text of subsections 
(a) through (f)(1) of section 901 of the National De-
112
fense Authorization Act for Fiscal Year 1998 (10 
U.S.C. 155 note), revised—
(A) in subsection (c), by deleting ‘‘two 
years’’ and inserting ‘‘four years’’; and 
(B) in subsection (f), by deleting ‘‘(1)’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘156. Assistants to the Chairman for National Guard members and for Reserve 
matters.’’.
(c) CONFORMING REPEAL.—Section 901 of the Na-
tional Defense Authorization Act for Fiscal Year 1998 (10 
U.S.C. 155 note) is repealed.
SEC. 507. SUCCESSION FOR POSITION OF CHIEF, NATIONAL 
GUARD BUREAU. 
(a) DESIGNATION OF SENIOR OFFICER IN NATIONAL 
GUARD BUREAU.—Section 10502 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) SUCCESSION.—(1) Unless otherwise directed by 
the President or Secretary of Defense, when there is a 
vacancy in the office of the Chief of the National Guard 
Bureau or in the event the Chief of the National Guard 
Bureau is unable to perform the duties of that office, the 
senior of the officers specified in paragraph (2) shall serve 
as the acting Chief until a successor is appointed or the
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Chief once again is able to perform the duties of that of-
fice. 
‘‘(2) The officers specified in this paragraph are the 
following: 
‘‘(A) The senior officer of the Army National 
Guard of the United States on duty with the Na-
tional Guard Bureau. 
‘‘(B) The senior officer of the Air National 
Guard of the United States on duty with the Na-
tional Guard Bureau.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 10502. Chief of the National Guard Bureau: ap-
pointment; adviser on National Guard 
matters; grade; succession’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 1011 of such title is 
amended to read as follows:
‘‘10502. Chief of the National Guard Bureau: appointment; adviser on National 
Guard matters; grade; succession.’’.
(c) REPEALER.—Subsections (d) and (e) of section 
10505 of such title are repealed.
114
SEC. 508. TITLE OF VICE CHIEF OF THE NATIONAL GUARD 
BUREAU CHANGED TO DIRECTOR OF THE 
JOINT STAFF OF THE NATIONAL GUARD BU-
REAU. 
(a) IN GENERAL.—Section 10505 of title 10, United 
States Code, as amended by section 507(c), is amended 
by striking ‘‘Vice Chief of the National Guard Bureau’’ 
each place it appears in subsections (a), (b), and (c) and 
inserting ‘‘Director of the Joint Staff of the National 
Guard Bureau’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 10505. Director of the Joint Staff of the National 
Guard Bureau’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 1011 of such title is 
amended to read as follows:
‘‘10505. Director of the Joint Staff of the National Guard Bureau.’’.
SEC. 509. TWO-YEAR EXTENSION OF AUTHORITY TO WAIVE 
REQUIREMENT THAT RESERVE CHIEFS AND 
NATIONAL GUARD DIRECTORS HAVE SIGNIFI-
CANT JOINT DUTY EXPERIENCE. 
(a) EXTENSION.—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 amended by striking ‘‘December 
31, 2004,’’ and inserting ‘‘December 31, 2006,’’.
115
(b) FUTURE COMPLIANCE.—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 Serv-
ices of the House of Representatives and the Committee 
on Armed Services of the Senate a plan for ensuring that 
all officers selected after December 31, 2006, for rec-
ommendation for appointment as a Reserve chief or Na-
tional Guard director have significant joint duty experi-
ence, as required by law, and may be so recommended 
without requirement for a wavier of such requirement. 
Such plan shall be developed in coordination with the 
Chairman of the Joint Chiefs of Staff.
SEC. 510. REPEAL OF DISTRIBUTION REQUIREMENTS FOR 
NAVAL RESERVE FLAG OFFICERS. 
Subsection (c) of 12004 of title 10, United States 
Code, is amended—
(1) by striking ‘‘(1)’’ after ‘‘(c)’’; and 
(2) by striking the second sentence and all that 
follows through the end of the subsection.
Subtitle B—Other Officer 
Personnel Policy Matters
SEC. 511. TRANSITION OF ACTIVE-DUTY LIST OFFICER 
FORCE TO ALL REGULAR STATUS. 
(a) REPEAL OF REQUIREMENT THAT ACTIVE-DUTY 
OFFICERS SERVE IN A RESERVE COMPONENT FOR AT
116
LEAST ONE YEAR BEFORE RECEIVING A REGULAR COM-
MISSION.—Section 532 of title 10, United States Code, is 
amended by striking subsection (e). 
(b) REVISION TO QUALIFICATIONS FOR ORIGINAL 
APPOINTMENT AS A COMMISSIONED OFFICER.—(1) Sec-
tion 532 of such title is further amended by adding at 
the end the following new subsection: 
‘‘(f) The Secretary of Defense may waive the require-
ment of paragraph (1) of subsection (a) with respect to 
a person who has been lawfully admitted to the United 
States for permanent residence when the Secretary deter-
mines that the national security so requires, but only for 
an original appointment in a grade below the grade of 
major or lieutenant commander.’’. 
(2) Section 619(d) of such title is amended by adding 
at the end the following new paragraph: 
‘‘(5) An officer of the Army, Air Force, or Ma-
rine Corps in the grade of captain, or of the Navy 
in the grade of lieutenant, who is not a citizen of the 
United States.’’. 
(c) REPEAL OF LIMITATIONS ON TOTAL STRENGTH 
OF REGULAR COMMISSIONED OFFICERS
ON ACTIVE-
DUTY.—Section 522 of such title is repealed. The table 
of sections at the beginning of chapter 31 of such title 
is amended by striking the item relating to that section.
117
(d) AUTHORITY FOR ORIGINAL APPOINTMENT OF 
REGULAR OFFICERS IN JUNIOR GRADES TO BE MADE BY 
PRESIDENT ALONE.—Section 531(a) of such title is 
amended to read as follows: 
‘‘(a)(1) Original appointments in the grades of sec-
ond lieutenant, first lieutenant, and captain in the Regular 
Army, Regular Air Force, and Regular Marine Corps and 
in the grades of ensign, lieutenant (junior grade), and lieu-
tenant in the Regular Navy shall be made by the President 
alone. 
‘‘(2) Original appointments in the grades of major, 
lieutenant colonel, and colonel in the Regular Army, Reg-
ular Air Force, and Regular Marine Corps and in the 
grades of lieutenant commander, commander, and captain 
in the Regular Navy shall be made by the President, by 
and with the advice and consent of the Senate.’’. 
(e) TERMINATION OF REQUIREMENT OF 6 YEARS 
SERVICE IN A RESERVE COMPONENT FOR NONREGULAR 
SERVICE
RETIREMENT
ELIGIBILITY.—(1) 
Section 
12731(a)(3) of such title is amended by inserting after 
‘‘(3)’’ the following: ‘‘in the case of a person who com-
pleted the service requirements of paragraph (2) before 
the date of the enactment of the National Defense Author-
ization Act for Fiscal Year 2005,’’.
118
(f) ALL REGULAR OFFICER APPOINTMENTS
FOR 
STUDENTS
ATTENDING
UNIVERSITY
OF
HEALTH 
SCIENCES.—Section 2114(b) of such title is amended by 
striking the first two sentences and inserting the following: 
‘‘They shall be appointed in a regular component of the 
uniformed services and shall serve on active duty as a sec-
ond lieutenant or ensign (or the equivalent).’’.
SEC. 512. MANDATORY RETENTION ON ACTIVE DUTY TO 
QUALIFY FOR RETIREMENT PAY. 
Section 12686(a) of title 10, United States Code, is 
amended by inserting ‘‘(other than the retirement system 
under chapter 1223 of this title)’’ after ‘‘retirement sys-
tem’’.
SEC. 513. DISTRIBUTION IN GRADE OF MARINE CORPS RE-
SERVE OFFICERS IN AN ACTIVE STATUS IN 
GRADES BELOW BRIGADIER GENERAL 
The table in section 12005(c)(1) of title 10, United 
States Code, is amended to read as follows:
‘‘Colonel ....................................................................................
2 percent
Lieutenant colonel ....................................................................
8 percent
Major ........................................................................................
16 percent
Captain .....................................................................................
39 percent
First lieutenant and second lieutenant (when combined with 
the number authorized for general officer grades under sec-
tion 12004 of this title) ........................................................
35 percent.’’.
SEC. 514. TUITION ASSISTANCE FOR OFFICERS. 
(a) AUTHORITY TO REDUCE
OR WAIVE ACTIVE 
DUTY SERVICE OBLIGATION.—Subsection (b) of section 
2007 of title 10, United States Code, is amended—
119
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 
(2) by inserting ‘‘or full-time National Guard 
duty’’ after ‘‘active duty’’ each place it appears; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Notwithstanding paragraph (1), the Secretary of 
the military department may reduce or waive the active 
duty service obligation—
‘‘(A) in the case of a commissioned officer who 
is subject to mandatory separation; 
‘‘(B) in the case of a commissioned officer who 
has completed the period of active duty service in 
support of a contingency operation; or 
‘‘(C) in other exigent circumstances as deter-
mined by the Secretary.’. 
(b). INCREASE IN TUITION ASSISTANCE AUTHOR-
IZED
FOR ARMY OFFICERS
IN
THE SELECTED RE-
SERVE.—Paragraph (1) of section 2007(c) of title 10, 
United States Code, is amended to read as follows: 
‘‘(1) Subject to paragraphs (2) and (3), the Secretary 
of the Army may pay the charges of an educational insti-
tution for the tuition or expenses of an officer in the Se-
lected Reserve of the Army National Guard or the Army 
Reserve for education or training of such officer.’’.
120
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) may, at the discretion of the Secretary con-
cerned, be applied to a service obligation incurred by an 
officer serving on active duty as of the date of the enact-
ment of this Act.
Subtitle C—Reserve Component 
Matters
SEC. 521. REVISION TO STATUTORY PURPOSE OF THE RE-
SERVE COMPONENTS. 
Subsection 10102 of title 10, United States Code, is 
amended by striking ‘‘, during’’ and all that follows 
through ‘‘planned mobilization,’’.
SEC. 522. IMPROVED ACCESS TO RESERVE COMPONENT 
MEMBERS FOR ENHANCED TRAINING. 
(a) RESERVE COMPONENTS GENERALLY.—Section 
12301 of title 10, United States Code, is amended—
(1) in subsection (a), by striking ‘‘(other than 
for training)’’; 
(2) in subsection (c)—
(A) in the first sentence, by striking 
‘‘(other than for training)’’ and inserting ‘‘as 
provided in subsection (a)’’; and 
(B) in the second sentence, by striking 
‘‘ordered to active duty (other than for train-
121
ing)’’ and inserting ‘‘so ordered to active duty’’; 
and 
(3) in subsection (e), by striking ‘‘(other than 
for training)’’ and inserting ‘‘as provided in sub-
section (a)’’. 
(b) READY RESERVE.—Section 12302 of such title 
is amended by striking ‘‘(other than for training)’’ in sub-
sections (a) and (c). 
(c) ORDER TO ACTIVE DUTY OTHER THAN DURING 
WAR OR NATIONAL EMERGENCY.—Section 12304(a) of 
such title is amended by striking ‘‘(other than for train-
ing)’’. 
(d) STANDBY RESERVE.—Section 12306 of such title 
is amended—
(1) in subsection (a), by striking ‘‘(other than 
for training) only’’; and 
(2) in subsection (b), by striking ‘‘(other than 
for training)’’ in paragraphs (1) and (2) and insert-
ing ‘‘as provided in section 12301(a) of this title’’. 
(d) STANDBY RESERVE.—Section 12306 of such title 
is amended by striking ‘‘(other than for training)’’ each 
place it appears and inserting ‘‘as provided in section 
12301(a)’’.
122
SEC. 523. STATUS UNDER DISABILITY RETIREMENT SYSTEM 
FOR RESERVE MEMBERS RELEASED FROM 
ACTIVE DUTY DUE TO INABILITY TO PER-
FORM WITHIN 30 DAYS OF CALL TO ACTIVE 
DUTY. 
(a) IN GENERAL.—Chapter 61 of title 10, United 
States Code, is amended by inserting after section 1206 
the following new section: 
‘‘§ 1206a. Reserve component members unable to per-
form duties when ordered to active duty: 
disability system processing 
‘‘(a) MEMBERS RELEASED FROM ACTIVE DUTY 
WITHIN 30 DAYS.—A member of a reserve component 
who is ordered to active duty for a period of more than 
30 days and is released from active duty within 30 days 
of commencing such period of active duty for a reason 
stated in subsection (b) shall be considered for all pur-
poses under this chapter to have been serving under an 
order to active duty for a period of 30 days or less. 
‘‘(b) APPLICABLE REASONS
FOR RELEASE.—Sub-
section (a) applies in the case of a member released from 
active duty because of a failure to meet—
‘‘(1) physical standards for retention; or 
‘‘(2) medical or dental standards for deploy-
ment due to a preexisting condition not aggravated 
during the period of active duty.
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‘‘(c) SAVINGS PROVISION FOR MEDICAL CARE PRO-
VIDED WHILE ON ACTIVE DUTY.—Notwithstanding sub-
section (a), any benefit under chapter 55 of this title re-
ceived by a member described in subsection (a) or a de-
pendent of such member before or during the period of 
active duty shall not be subject to recoupment or otherwise 
affected.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1206 the following new 
item:
‘‘1206a. Reserve component members unable to perform duties when ordered to 
active duty: disability system processing.’’.
SEC. 524. FEDERAL CIVIL SERVICE MILITARY LEAVE FOR 
RESERVE AND NATIONAL GUARD CIVILIAN 
TECHNICIANS. 
Section 6323(d)(1) of title 5, United States Code is 
amended by striking ‘‘(other than active duty during a war 
or national emergency declared by the President or Con-
gress)’’.
SEC. 525. EXPANDED EDUCATIONAL ASSISTANCE AUTHOR-
ITY 
FOR 
OFFICERS 
COMMISSIONED 
THROUGH ROTC PROGRAM AT MILITARY 
JUNIOR COLLEGES. 
(a) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE 
ON ACTIVE DUTY.—Section 2107(c) of title 10, United
124
States Code, is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(5)(A) The Secretary of the Army may provide an 
individual who received a commission as a Reserve officer 
in the Army from a military junior college through a pro-
gram under this chapter and who does not have a bacca-
laureate degree with financial assistance for pursuit of a 
baccalaureate degree. 
‘‘(B) Such assistance is in addition to any financial 
assistance provided under paragraph (1), (3), or (4). 
‘‘(C) The agreement and reimbursement require-
ments established in section 2005 of this title are applica-
ble to financial assistance under this paragraph. 
‘‘(D) An officer receiving financial assistance under 
this paragraph shall be attached to the unit of the Army 
at the educational institution at which the officer is pur-
suing a baccalaureate degree and shall be considered to 
be a member of the Senior Reserve Officers’ Training 
Corps on inactive duty for training, as defined in section 
101(23) of title 38. 
‘‘(E) A qualified officer who did not previously receive 
financial assistance under this section is eligible to receive 
educational assistance under this paragraph.
125
‘‘(F) A Reserve officer may not be called or ordered 
to active duty for a deployment while participating in the 
program under this paragraph. 
‘‘(G) Any service obligation incurred by an officer 
under an agreement entered into under this paragraph 
shall be in addition to any service obligation incurred by 
that officer under any other provision of law or agreement. 
‘‘(H) The amount obligated during any fiscal year 
under this paragraph and paragraph (4) of section 
2107a(c) of this title may not exceed a total of 
$1,500,000.’’. 
(b) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE 
IN TROOP PROGRAM UNITS.—Section 2107a(c) of such 
title is amended by adding at the end the following new 
paragraphs: 
‘‘(4)(A) The Secretary of the Army may provide an 
individual who received a commission as a Reserve officer 
in the Army from a military junior college through a pro-
gram under this chapter and who does not have a bacca-
laureate degree with financial assistance for pursuit of a 
baccalaureate degree. 
‘‘(B) Such assistance is in addition to any provided 
under paragraph (1) or (2).
126
‘‘(C) The agreement and reimbursement require-
ments established in section 2005 of this title are applica-
ble to financial assistance under this paragraph. 
‘‘(D) An officer receiving financial assistance under 
this paragraph shall be attached to the unit of the Army 
at the educational institution at which the officer is pur-
suing a baccalaureate degree and shall be considered to 
be a member of the Senior Reserve Officers’ Training 
Corps on inactive duty for training, as defined in section 
101(23) of title 38. 
‘‘(E) A qualified officer who did not previously receive 
financial assistance under this section is eligible to receive 
educational assistance under this paragraph. 
‘‘(F) A Reserve officer may not be called or ordered 
to active duty for a deployment while participating in the 
program under this paragraph. 
‘‘(G) Any service obligation incurred by an officer 
under an agreement entered into under this paragraph 
shall be in addition to any service obligation incurred by 
that officer under any other provision of law or agree-
ment.’’. 
‘‘(H) As provided in subparagraph (H) of section 
2107(c)(5) of this title, the amount obligated during any 
fiscal year under this paragraph and paragraph (5) of sec-
127
tion 2107(c) of this title may not exceed a total of 
$1,500,000.’’. 
(c) REPEAL OF SUNSET PROVISION FOR FINANCIAL 
ASSISTANCE PROGRAM FOR STUDENTS NOT ELIGIBLE 
FOR ADVANCED TRAINING.—Section 2103a of such title 
is amended by striking subsection (d). 
(d) ANNUAL IMPLEMENTATION REPORT.—The Sec-
retary of the Army shall submit to the Committees on 
Armed Services of the Senate and House of Representa-
tives an annual report, for each of the next six years after 
the enactment of this Act, providing information on the 
experience of the Department of Defense during the pre-
ceding year under paragraph (5) of section 2107(c) of title 
10, United States Code, as added by subsection (a), and 
under paragraph (4) of section 2107a(c) of title 10, 
United States Code, as added by subsection (b). The re-
port for with respect to any year shall be submitted not 
later March 31 of the following year.
SEC. 526. EFFECT OF APPOINTMENT OR COMMISSION AS 
OFFICER ON ELIGIBILITY FOR SELECTED RE-
SERVE EDUCATION LOAN REPAYMENT PRO-
GRAM FOR ENLISTED MEMBERS. 
(a) CONTINUATION OF LOAN REPAYMENT.—Section 
16301(a) of title 10, United States Code, is amended—
128
(1) in paragraph (2), by striking ‘‘The Sec-
retary’’ in the first sentence and inserting ‘‘Except 
as provided in paragraph (3), the Secretary of De-
fense’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(3) In the case of a commitment made by the Sec-
retary of Defense after the date of the enactment of this 
paragraph to repay a loan under paragraph (1) condi-
tioned upon the performance by the borrower of service 
as an enlisted member under paragraph (2), the Secretary 
shall repay the loan for service performed by the borrower 
as an officer (rather than as an enlisted member) in the 
case of a borrower who, after such commitment is entered 
into and while performing service as an enlisted member, 
accepts an appointment or commission as a warrant offi-
cer or commissioned officer of the Selected Reserve.’’. 
(b) LIMITATION
ON FISCAL YEAR 2005 OBLIGA-
TIONS.—During fiscal year 2005, obligations incurred 
under section 16301 of title 10, United States Code, as 
amended by subsection (a), to make loan repayments on 
behalf of members of the reserve components who accept 
an appointment or commission as a warrant officer or 
commissioned officer of the Selected Reserve may not ex-
ceed $1,000,000.
129
SEC. 527. NUMBER OF STARBASE ACADEMIES IN A STATE. 
Paragraph (3) of section 2193b(c) of title 10, United 
States Code, is amended to read as follows: 
‘‘(3)(A) Subject to subparagraph (B), the Secretary 
may not support the establishment in any State of more 
than two academies. 
‘‘(B) The Secretary may waive the limitation in sub-
paragraph (A). Any such waiver shall be made under cri-
teria to be prescribed by the Secretary.’’.
SEC. 528. COMPTROLLER GENERAL ASSESSMENT OF INTE-
GRATION OF ACTIVE AND RESERVE COMPO-
NENTS OF THE NAVY. 
(a) ASSESSMENT.—The Comptroller General shall re-
view the plan of the Secretary of the Navy for, and imple-
mentation by the Secretary of, initiatives undertaken with-
in the Navy to improve the integration of the active and 
reserve components of the Navy in peacetime and wartime 
operations resulting from—
(1) the Naval Reserve Redesign Study carried 
out by the Navy: and 
(2) the zero-based review of reserve component 
force structure undertaken by the commander of the 
Fleet Forces Command of the Navy during fiscal 
year 2004.
(b) REPORT.—No later than March 31, 2005, the 
Comptroller General shall submit to the Committees on
130
Armed Services of the Senate and House of Representa-
tives a report on the results of the review under subsection 
(a). The Comptroller General shall include in the report 
recommendations for improved active and reserve compo-
nent integration in the Navy. 
(c) LIMITATION.—No funds appropriated or other-
wise made available by this Act may be obligated or ex-
pended to decommission a Naval Reserve or Marine Corps 
Reserve aviation squadron until 90 days after the date on 
which the report required by subsection (b) is submitted 
to the Committees on Armed Services of the Senate and 
House of Representatives. 
(d) MATTERS TO BE EXAMINED.—In conducting the 
review, the Comptroller General shall examine the fol-
lowing: 
(1) The criteria the Navy used to determine the 
following with respect to integration of the active 
and reserve components of the Navy: 
(A) The future mix of active and reserve 
component force structure. 
(B) Organization of command and control 
elements. 
(C) Manpower levels. 
(D) Basing changes.