150 
HR 5631 PP 
General Act of 1978, as amended, $216,297,000, of which 
$214,897,000 shall be for Operation and maintenance, of 
which not to exceed $700,000 is available for emergencies 
and extraordinary expenses to be expended on the approval 
or authority of the Inspector General, and payments may 
be made on the Inspector General’s certificate of necessity 
for confidential military purposes; and of which $1,400,000, 
to remain available until September 30, 2009, shall be for 
Procurement. 
TITLE VII 
RELATED AGENCIES 
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND 
DISABILITY SYSTEM FUND 
For payment to the Central Intelligence Agency Retire-
ment and Disability System Fund, to maintain the proper 
funding level for continuing the operation of the Central 
Intelligence Agency Retirement and Disability System, 
$256,400,000. 
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Intelligence Community 
Management Account, $597,011,000, of which $36,268,000 
for the Advanced Research and Development Committee 
shall remain available until September 30, 2008: Provided, 
That the Director of National Intelligence shall, utilizing 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00150
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
151 
HR 5631 PP 
amounts appropriated by this heading, prepare as soon as 
practicable but not later than 90 days after the date of en-
actment of this Act, a new National Intelligence Estimate 
on prospects for security and stability in Iraq, which shall 
address such matters as the Director of National Intel-
ligence considers appropriate, including (1) an assessment 
of whether Iraq is succeeding in creating a stable and effec-
tive unity government, and the likelihood that government 
will address the concerns of the Sunni community, (2) the 
prospects for Iraq’s ethnic, religious and tribal divisions, 
(3) the prospects for controlling severe sectarian violence 
that could lead to civil war, (4) an assessment whether Iraq 
is succeeding in standing up effective security forces, in-
cluding an assessment of (A) the extent to which militias 
are providing security in Iraq, and (B) the extent to which 
the Government of Iraq has developed and implemented a 
credible plan to disarm and demobilize and reintegrate mi-
litias into government security forces and is working to ob-
tain a political commitment from political parties to ban 
militias, and (5) the prospects for economic reconstruction 
and the impact that will have on security and stability: 
Provided further, That the Director of National Intelligence 
shall submit to Congress the National Intelligence Estimate 
prepared under the preceding proviso and this document 
shall be submitted in classified form, except that, consistent 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00151
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
152 
HR 5631 PP 
with the protection of intelligence sources and methods, an 
unclassified summary of key judgments of the National In-
telligence Estimate should be submitted: Provided further, 
That if the Director of National Intelligence is unable to 
submit the National Intelligence Estimate by the date speci-
fied in the preceding proviso, the Director shall submit to 
Congress, not later than that date, a report setting forth 
the reasons for being unable to do so and the date on which 
such National Intelligence Estimate will be provided. 
TITLE VIII 
GENERAL PROVISIONS 
SEC. 8001. No part of any appropriation contained 
in this Act shall be used for publicity or propaganda pur-
poses not authorized by the Congress. 
SEC. 8002. During the current fiscal year, provisions 
of law prohibiting the payment of compensation to, or em-
ployment of, any person not a citizen of the United States 
shall not apply to personnel of the Department of Defense: 
Provided, That salary increases granted to direct and indi-
rect hire foreign national employees of the Department of 
Defense funded by this Act shall not be at a rate in excess 
of the percentage increase authorized by law for civilian 
employees of the Department of Defense whose pay is com-
puted under the provisions of section 5332 of title 5, United 
States Code, or at a rate in excess of the percentage increase 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00152
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
153 
HR 5631 PP 
provided by the appropriate host nation to its own employ-
ees, whichever is higher: Provided further, That this section 
shall not apply to Department of Defense foreign service 
national employees serving at United States diplomatic 
missions whose pay is set by the Department of State under 
the Foreign Service Act of 1980: Provided further, That the 
limitations of this provision shall not apply to foreign na-
tional employees of the Department of Defense in the Re-
public of Turkey. 
SEC. 8003. No part of any appropriation contained 
in this Act shall remain available for obligation beyond the 
current fiscal year, unless expressly so provided herein. 
SEC. 8004. No more than 20 percent of the appropria-
tions in this Act which are limited for obligation during 
the current fiscal year shall be obligated during the last 2 
months of the fiscal year: Provided, That this section shall 
not apply to obligations for support of active duty training 
of reserve components or summer camp training of the Re-
serve Officers’ Training Corps. 
(TRANSFER OF FUNDS) 
SEC. 8005. Upon determination by the Secretary of 
Defense that such action is necessary in the national inter-
est, he may, with the approval of the Office of Management 
and Budget, transfer not to exceed $4,500,000,000 of work-
ing capital funds of the Department of Defense or funds 
made available in this Act to the Department of Defense 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00153
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
154 
HR 5631 PP 
for military functions (except military construction) be-
tween such appropriations or funds or any subdivision 
thereof, to be merged with and to be available for the same 
purposes, and for the same time period, as the appropria-
tion or fund to which transferred: Provided, That such au-
thority to transfer may not be used unless for higher pri-
ority items, based on unforeseen military requirements, 
than those for which originally appropriated and in no case 
where the item for which funds are requested has been de-
nied by the Congress: Provided further, That the Secretary 
of Defense shall notify the Congress promptly of all transfers 
made pursuant to this authority or any other authority in 
this Act: Provided further, That no part of the funds in 
this Act shall be available to prepare or present a request 
to the Committees on Appropriations for reprogramming 
of funds, unless for higher priority items, based on unfore-
seen military requirements, than those for which originally 
appropriated and in no case where the item for which re-
programming is requested has been denied by the Congress: 
Provided 
further, 
That 
a 
request 
for 
multiple 
reprogrammings of funds using authority provided in this 
section must be made prior to June 30, 2007: Provided fur-
ther, That transfers among military personnel appropria-
tions shall not be taken into account for purposes of the 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00154
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
155 
HR 5631 PP 
limitation on the amount of funds that may be transferred 
under this section. 
(TRANSFER OF FUNDS) 
SEC. 8006. During the current fiscal year, cash bal-
ances in working capital funds of the Department of De-
fense established pursuant to section 2208 of title 10, United 
States Code, may be maintained in only such amounts as 
are necessary at any time for cash disbursements to be made 
from such funds: Provided, That transfers may be made be-
tween such funds: Provided further, That transfers may be 
made between working capital funds and the ‘‘Foreign Cur-
rency Fluctuations, Defense’’ appropriation and the ‘‘Oper-
ation and Maintenance’’ appropriation accounts in such 
amounts as may be determined by the Secretary of Defense, 
with the approval of the Office of Management and Budget, 
except that such transfers may not be made unless the Sec-
retary of Defense has notified the Congress of the proposed 
transfer. Except in amounts equal to the amounts appro-
priated to working capital funds in this Act, no obligations 
may be made against a working capital fund to procure 
or increase the value of war reserve material inventory, un-
less the Secretary of Defense has notified the Congress prior 
to any such obligation. 
SEC. 8007. Funds appropriated by this Act may not 
be used to initiate a special access program without prior 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00155
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
156 
HR 5631 PP 
notification 30 calendar days in session in advance to the 
congressional defense committees. 
SEC. 8008. None of the funds provided in this Act shall 
be available to initiate: (1) a multiyear contract that em-
ploys economic order quantity procurement in excess of 
$20,000,000 in any one year of the contract or that includes 
an unfunded contingent liability in excess of $20,000,000; 
or (2) a contract for advance procurement leading to a 
multiyear contract that employs economic order quantity 
procurement in excess of $20,000,000 in any one year, un-
less the congressional defense committees have been notified 
at least 30 days in advance of the proposed contract award: 
Provided, That no part of any appropriation contained in 
this Act shall be available to initiate a multiyear contract 
for which the economic order quantity advance procurement 
is not funded at least to the limits of the Government’s li-
ability: Provided further, That no part of any appropria-
tion contained in this Act shall be available to initiate 
multiyear procurement contracts for any systems or compo-
nent thereof if the value of the multiyear contract would 
exceed $500,000,000 unless specifically provided in this Act: 
Provided further, That no multiyear procurement contract 
can be terminated without 10-day prior notification to the 
congressional defense committees: Provided further, That the 
execution of multiyear authority shall require the use of a 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00156
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
157 
HR 5631 PP 
present value analysis to determine lowest cost compared 
to an annual procurement: Provided further, That none of 
the funds provided in this Act may be used for a multiyear 
contract executed after the date of the enactment of this Act 
unless in the case of any such contract— 
(1) the Secretary of Defense has submitted to 
Congress a budget request for full funding of units to 
be procured through the contract; 
(2) cancellation provisions in the contract do not 
include consideration of recurring manufacturing 
costs of the contractor associated with the production 
of unfunded units to be delivered under the contract; 
(3) the contract provides that payments to the 
contractor under the contract shall not be made in 
advance of incurred costs on funded units; and 
(4) the contract does not provide for a price ad-
justment based on a failure to award a follow-on con-
tract. 
Funds appropriated in title III of this Act may be 
used for a multiyear procurement contract as follows: 
C–17 Globemaster; 
F–22A; 
MH–60R Helicopters; 
MH–60R Helicopter mission equipment; and 
V–22 Osprey. 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00157
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
158 
HR 5631 PP 
SEC. 8009. Within the funds appropriated for the oper-
ation and maintenance of the Armed Forces, funds are here-
by appropriated pursuant to section 401 of title 10, United 
States Code, for humanitarian and civic assistance costs 
under chapter 20 of title 10, United States Code. Such funds 
may also be obligated for humanitarian and civic assist-
ance costs incidental to authorized operations and pursuant 
to authority granted in section 401 of chapter 20 of title 
10, United States Code, and these obligations shall be re-
ported as required by section 401(d) of title 10, United 
States Code: Provided, That funds available for operation 
and maintenance shall be available for providing humani-
tarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact 
of Free Association as authorized by Public Law 99–239: 
Provided further, That upon a determination by the Sec-
retary of the Army that such action is beneficial for grad-
uate medical education programs conducted at Army med-
ical facilities located in Hawaii, the Secretary of the Army 
may authorize the provision of medical services at such fa-
cilities and transportation to such facilities, on a non-
reimbursable basis, for civilian patients from American 
Samoa, the Commonwealth of the Northern Mariana Is-
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00158
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
159 
HR 5631 PP 
lands, the Marshall Islands, the Federated States of Micro-
nesia, Palau, and Guam. 
SEC. 8010. (a) During fiscal year 2007, the civilian 
personnel of the Department of Defense may not be man-
aged on the basis of any end-strength, and the management 
of such personnel during that fiscal year shall not be subject 
to any constraint or limitation (known as an end-strength) 
on the number of such personnel who may be employed on 
the last day of such fiscal year. 
(b) The fiscal year 2008 budget request for the Depart-
ment of Defense as well as all justification material and 
other documentation supporting the fiscal year 2008 De-
partment of Defense budget request shall be prepared and 
submitted to the Congress as if subsections (a) and (b) of 
this provision were effective with regard to fiscal year 2008. 
(c) Nothing in this section shall be construed to apply 
to military (civilian) technicians. 
SEC. 8011. None of the funds appropriated in this or 
any other Act may be used to initiate a new installation 
overseas without 30-day advance notification to the Com-
mittees on Appropriations. 
SEC. 8012. None of the funds made available by this 
Act shall be used in any way, directly or indirectly, to in-
fluence congressional action on any legislation or appro-
priation matters pending before the Congress. 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00159
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
160 
HR 5631 PP 
SEC. 8013. None of the funds appropriated by this Act 
shall be available for the basic pay and allowances of any 
member of the Army participating as a full-time student 
and receiving benefits paid by the Secretary of Veterans Af-
fairs from the Department of Defense Education Benefits 
Fund when time spent as a full-time student is credited 
toward completion of a service commitment: Provided, That 
this subsection shall not apply to those members who have 
reenlisted with this option prior to October 1, 1987: Pro-
vided further, That this subsection applies only to active 
components of the Army. 
SEC. 8014. (a) LIMITATION ON CONVERSION TO CON-
TRACTOR PERFORMANCE.—None of the funds appropriated 
by this Act shall be available to convert to contractor per-
formance an activity or function of the Department of De-
fense that, on or after the date of the enactment of this Act, 
is performed by more than 10 Department of Defense civil-
ian employees unless— 
(1) the conversion is based on the result of a pub-
lic-private competition that includes a most efficient 
and cost effective organization plan developed by such 
activity or function; 
(2) the Competitive Sourcing Official determines 
that, over all performance periods stated in the solici-
tation of offers for performance of the activity or 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00160
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
161 
HR 5631 PP 
function, the cost of performance of the activity or 
function by a contractor would be less costly to the 
Department of Defense by an amount that equals or 
exceeds the lesser of— 
(A) 10 percent of the most efficient organi-
zation’s personnel-related costs for performance 
of that activity or function by Federal employ-
ees; or 
(B) $10,000,000; and 
(3) the contractor does not receive an advantage 
for a proposal that would reduce costs for the Depart-
ment of Defense by— 
(A) not making an employer-sponsored 
health insurance plan available to the workers 
who are to be employed in the performance of 
that activity or function under the contract; 
(B) offering to such workers an employer- 
sponsored health benefits plan that requires the 
employer to contribute less towards the premium 
or subscription share than the amount that is 
paid by the Department of Defense for health 
benefits for civilian employees under chapter 89 
of title 5, United States Code; or 
(C) offering to such workers a retirement 
benefit that in any year costs less than the an-
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00161
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
162 
HR 5631 PP 
nual retirement cost factor applicable to Depart-
ment of Defense civilian employees under chapter 
84 of title 5, United States Code. 
(b) EXCEPTIONS.— 
(1) The Department of Defense, without regard 
to subsection (a) of this section or subsections (a), (b), 
or (c) of section 2461 of title 10, United States Code, 
and notwithstanding any administrative regulation, 
requirement, or policy to the contrary shall have full 
authority to enter into a contract for the performance 
of any commercial or industrial type function of the 
Department of Defense that— 
(A) is included on the procurement list es-
tablished pursuant to section 2 of the Javits- 
Wagner-O’Day Act (41 U.S.C. 47); 
(B) is planned to be converted to perform-
ance by a qualified nonprofit agency for the 
blind or by a qualified nonprofit agency for 
other severely handicapped individuals in ac-
cordance with that Act; or 
(C) is planned to be converted to perform-
ance by a qualified firm under at least 51 per-
cent ownership by an Indian tribe, as defined in 
section 4(e) of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00162
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
163 
HR 5631 PP 
450b(e)), or a Native Hawaiian Organization, as 
defined in section 8(a)(15) of the Small Business 
Act (15 U.S.C. 637(a)(15)). 
(2) This section shall not apply to depot con-
tracts or contracts for depot maintenance as provided 
in sections 2469 and 2474 of title 10, United States 
Code. 
(c) TREATMENT OF CONVERSION.—The conversion of 
any activity or function of the Department of Defense under 
the authority provided by this section shall be credited to-
ward any competitive or outsourcing goal, target, or meas-
urement that may be established by statute, regulation, or 
policy and is deemed to be awarded under the authority 
of, and in compliance with, subsection (h) of section 2304 
of title 10, United States Code, for the competition or 
outsourcing of commercial activities. 
(TRANSFER OF FUNDS) 
SEC. 8015. Funds appropriated in title III of this Act 
for the Department of Defense Pilot Mentor-Protege Pro-
gram may be transferred to any other appropriation con-
tained in this Act solely for the purpose of implementing 
a Mentor-Protege Program developmental assistance agree-
ment pursuant to section 831 of the National Defense Au-
thorization Act for Fiscal Year 1991 (Public Law 101–510; 
10 U.S.C. 2302 note), as amended, under the authority of 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00163
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
164 
HR 5631 PP 
this provision or any other transfer authority contained in 
this Act. 
SEC. 8016. None of the funds in this Act may be avail-
able for the purchase by the Department of Defense (and 
its departments and agencies) of welded shipboard anchor 
and mooring chain 4 inches in diameter and under unless 
the anchor and mooring chain are manufactured in the 
United States from components which are substantially 
manufactured in the United States: Provided, That for the 
purpose of this section manufactured will include cutting, 
heat treating, quality control, testing of chain and welding 
(including the forging and shot blasting process): Provided 
further, That for the purpose of this section substantially 
all of the components of anchor and mooring chain shall 
be considered to be produced or manufactured in the United 
States if the aggregate cost of the components produced or 
manufactured in the United States exceeds the aggregate 
cost of the components produced or manufactured outside 
the United States: Provided further, That when adequate 
domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the 
service responsible for the procurement may waive this re-
striction on a case-by-case basis by certifying in writing 
to the Committees on Appropriations that such an acquisi-
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00164
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
165 
HR 5631 PP 
tion must be made in order to acquire capability for na-
tional security purposes. 
SEC. 8017. None of the funds available to the Depart-
ment of Defense may be used to demilitarize or dispose of 
M–1 Carbines, M–1 Garand rifles, M–14 rifles, .22 caliber 
rifles, .30 caliber rifles, or M–1911 pistols. 
SEC. 8018. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of 
the Uniformed Services (CHAMPUS) or TRICARE shall 
be available for the reimbursement of any health care pro-
vider for inpatient mental health service for care received 
when a patient is referred to a provider of inpatient mental 
health care or residential treatment care by a medical or 
health care professional having an economic interest in the 
facility to which the patient is referred: Provided, That this 
limitation does not apply in the case of inpatient mental 
health services provided under the program for persons with 
disabilities under subsection (d) of section 1079 of title 10, 
United States Code, provided as partial hospital care, or 
provided pursuant to a waiver authorized by the Secretary 
of Defense because of medical or psychological circumstances 
of the patient that are confirmed by a health professional 
who is not a Federal employee after a review, pursuant to 
rules prescribed by the Secretary, which takes into account 
the appropriate level of care for the patient, the intensity 
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00165
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS
166 
HR 5631 PP 
of services required by the patient, and the availability of 
that care. 
SEC. 8019. No more than $500,000 of the funds appro-
priated or made available in this Act shall be used during 
a single fiscal year for any single relocation of an organiza-
tion, unit, activity or function of the Department of Defense 
into or within the National Capital Region: Provided, That 
the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying in writing to the congres-
sional defense committees that such a relocation is required 
in the best interest of the Government. 
SEC. 8020. In addition to the funds provided elsewhere 
in this Act, $8,000,000 is appropriated only for incentive 
payments authorized by section 504 of the Indian Financ-
ing Act of 1974 (25 U.S.C. 1544): Provided, That a prime 
contractor or a subcontractor at any tier that makes a sub-
contract award to any subcontractor or supplier as defined 
in section 1544 of title 25, United States Code or a small 
business owned and controlled by an individual or individ-
uals defined under section 4221(9) of title 25, United States 
Code shall be considered a contractor for the purposes of 
being allowed additional compensation under section 504 
of the Indian Financing Act of 1974 (25 U.S.C. 1544) 
whenever the prime contract or subcontract amount is over 
$500,000 and involves the expenditure of funds appro-
VerDate Aug 31 2005 
00:18 Sep 09, 2006
Jkt 049200
PO 00000
Frm 00166
Fmt 6652
Sfmt 6203
E:\BILLS\H5631.PP
H5631
ccoleman on PROD1PC71 with BILLS