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be submitted by the Director of National Intelligence to the
congressional armed services committees.
(e) DEFINITIONS.—In this section:
(1) The term ‘‘congressional armed services com-
mittees’’ means—
(A) the Committee on Armed Services of the
Senate; and
(B) the Committee on Armed Services of the
House of Representatives.
(2) The term ‘‘congressional intelligence commit-
tees’’ means—
(A) the Select Committee on Intelligence of
the Senate; and
(B) the Permanent Select Committee on In-
telligence of the House of Representatives.
(3) The term ‘‘element of the intelligence commu-
nity’’ means the elements of the intelligence commu-
nity specified in or designated under section 3(4) of
the National Security Act of 1947 (50 U.S.C.
401a(4)).
SEC. 310. VULNERABILITY ASSESSMENTS OF MAJOR SYS-
TEMS.
(a) IN GENERAL.—Title V of the National Security
Act of 1947 (50 U.S.C. 413 et seq.) is amended by inserting
after section 506A the following new section:
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‘‘VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS
‘‘SEC. 506B. (a) INITIAL VULNERABILITY ASSESS-
MENTS.—The Director of National Intelligence shall con-
duct an initial vulnerability assessment for any major sys-
tem and its items of supply, that is proposed for inclusion
in the National Intelligence Program. The initial vulner-
ability assessment of a major system and its items of supply
shall, at a minimum, use an analysis-based approach to—
‘‘(1) identify applicable vulnerabilities;
‘‘(2) define exploitation potential;
‘‘(3) examine the system’s potential effectiveness;
‘‘(4) determine overall vulnerability; and
‘‘(5) make recommendations for risk reduction.
‘‘(b) SUBSEQUENT VULNERABILITY ASSESSMENTS.—
(1) The Director of National Intelligence shall conduct sub-
sequent vulnerability assessments of each major system and
its items of supply within the National Intelligence
Program—
‘‘(A) periodically throughout the life-span of the
major system;
‘‘(B) whenever the Director determines that a
change in circumstances warrants the issuance of a
subsequent vulnerability assessment; or
‘‘(C) upon the request of a congressional intel-
ligence committee.
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‘‘(2) Any subsequent vulnerability assessment of a
major system and its items of supply shall, at a minimum,
use an analysis-based approach and, if applicable, a test-
ing-based approach, to monitor the exploitation potential
of such system and reexamine the factors described in para-
graphs (1) through (5) of subsection (a).
‘‘(c) MAJOR SYSTEM MANAGEMENT.—The Director of
National Intelligence shall give due consideration to the vul-
nerability assessments prepared for a given major system
when developing and determining the annual consolidated
National Intelligence Program budget.
‘‘(d) CONGRESSIONAL OVERSIGHT.—(1) The Director
of National Intelligence shall provide to the congressional
intelligence committees a copy of each vulnerability assess-
ment conducted under subsection (a) or (b) not later than
10 days after the date of the completion of such assessment.
‘‘(2) The Director of National Intelligence shall pro-
vide the congressional intelligence committees with a pro-
posed schedule for subsequent vulnerability assessments of
a major system under subsection (b) when providing such
committees with the initial vulnerability assessment under
subsection (a) of such system as required by subsection (d).
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The term ‘items of supply’—
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‘‘(A) means any individual part, compo-
nent, subassembly, assembly, or subsystem inte-
gral to a major system, and other property
which may be replaced during the service life of
the major system, including spare parts and re-
plenishment parts; and
‘‘(B) does not include packaging or labeling
associated with shipment or identification of
items.
‘‘(2) The term ‘major system’ has the meaning
given that term in section 506A(e).
‘‘(3) The term ‘vulnerability assessment’ means
the 
process 
of 
identifying 
and 
quantifying
vulnerabilities in a major system and its items of
supply.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
the first section of the National Security Act of 1947 is
amended by inserting after the item relating to section 506A
the following:
‘‘Sec. 506B. Vulnerability assessments of major systems.’’.
SEC. 311. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR
THE INTELLIGENCE COMMUNITY.
(a) IN GENERAL.—Title V of the National Security
Act of 1947 (50 U.S.C. 413 et seq.), as amended by section
310, is further amended by inserting after section 506B,
as added by section 310(a), the following new section:
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‘‘ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE
INTELLIGENCE COMMUNITY
‘‘SEC. 506C. (a) REQUIREMENT TO PROVIDE.—The
Director of National Intelligence shall, in consultation with
the head of the element of the intelligence community con-
cerned, prepare an annual personnel level assessment for
such element of the intelligence community that assesses the
personnel levels for each such element for the fiscal year fol-
lowing the fiscal year in which the assessment is submitted.
‘‘(b) SCHEDULE.—Each assessment required by sub-
section (a) shall be submitted to the congressional intel-
ligence committees not later than January 31, of each year.
‘‘(c) CONTENTS.—Each assessment required by sub-
section (a) submitted during a fiscal year shall contain, at
a minimum, the following information for the element of
the intelligence community concerned:
‘‘(1) The budget submission for personnel costs
for the upcoming fiscal year.
‘‘(2) The dollar and percentage increase or de-
crease of such costs as compared to the personnel costs
of the current fiscal year.
‘‘(3) The dollar and percentage increase or de-
crease of such costs as compared to the personnel costs
during the prior 5 fiscal years.
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‘‘(4) The number of personnel positions requested
for the upcoming fiscal year.
‘‘(5) The numerical and percentage increase or
decrease of such number as compared to the number
of personnel positions of the current fiscal year.
‘‘(6) The numerical and percentage increase or
decrease of such number as compared to the number
of personnel positions during the prior 5 fiscal years.
‘‘(7) The best estimate of the number and costs
of contractors to be funded by the element for the up-
coming fiscal year.
‘‘(8) The numerical and percentage increase or
decrease of such costs of contractors as compared to
the best estimate of the costs of contractors of the cur-
rent fiscal year.
‘‘(9) The numerical and percentage increase or
decrease of such costs of contractors as compared to
the cost of contractors, and the number of contractors,
during the prior 5 fiscal years.
‘‘(10) A written justification for the requested
personnel and contractor levels.
‘‘(11) A statement by the Director of National
Intelligence that, based on current and projected fund-
ing, the element concerned will have sufficient—
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‘‘(A) internal infrastructure to support the
requested personnel and contractor levels;
‘‘(B) training resources to support the re-
quested personnel levels; and
‘‘(C) funding to support the administrative
and operational activities of the requested per-
sonnel levels.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
the first section of that Act, as amended by section 310(b),
is further amended by inserting after the item relating to
section 506B, as added by section 310(b), the following new
item:
‘‘Sec. 506C. Annual personnel levels assessment for the intelligence community.’’.
SEC. 312. BUSINESS ENTERPRISE ARCHITECTURE AND
BUSINESS SYSTEM MODERNIZATION FOR THE
INTELLIGENCE COMMUNITY.
(a) BUSINESS
ENTERPRISE
ARCHITECTURE
AND
BUSINESS SYSTEM MODERNIZATION.—
(1) IN GENERAL.—Title V of the National Secu-
rity Act of 1947 (50 U.S.C. 413 et seq.), as amended
by sections 310 and 311, is further amended by in-
serting after section 506C, as added by section 311(a),
the following new section:
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‘‘INTELLIGENCE COMMUNITY BUSINESS SYSTEMS,
ARCHITECTURE, ACCOUNTABILITY, AND MODERNIZATION
‘‘SEC. 506D. (a) LIMITATION
ON OBLIGATION
OF
FUNDS FOR INTELLIGENCE COMMUNITY BUSINESS SYSTEM
MODERNIZATION.—(1) After April 1, 2008, no funds appro-
priated to any element of the intelligence community may
be obligated for an intelligence community business system
modernization described in paragraph (2) unless—
‘‘(A) the approval authority designated by the
Director of National Intelligence under subsection
(c)(2) makes the certification described in paragraph
(3) with respect to the intelligence community busi-
ness system modernization; and
‘‘(B) the certification is approved by the Intel-
ligence Community Business Systems Management
Committee established under subsection (f).
‘‘(2) An intelligence community business system mod-
ernization described in this paragraph is an intelligence
community business system modernization that—
‘‘(A) will have a total cost in excess of
$1,000,000; and
‘‘(B) will receive more than 50 percent of the
funds for such cost from amounts appropriated for the
National Intelligence Program.
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‘‘(3) The certification described in this paragraph for
an intelligence community business system modernization
is a certification, made by the approval authority des-
ignated by the Director under subsection (c)(2) to the Intel-
ligence Community Business Systems Management Com-
mittee, that the intelligence community business system
modernization—
‘‘(A) complies with the enterprise architecture
under subsection (b); or
‘‘(B) is necessary—
‘‘(i) to achieve a critical national security
capability or address a critical requirement in
an area such as safety or security; or
‘‘(ii) to prevent a significant adverse effect
on a project that is needed to achieve an essen-
tial capability, taking into consideration the al-
ternative solutions for preventing such adverse
effect.
‘‘(4) The obligation of funds for an intelligence com-
munity business system modernization that does not comply
with the requirements of this subsection shall be treated as
a violation of section 1341(a)(1)(A) of title 31, United
States Code.
‘‘(b) ENTERPRISE ARCHITECTURE FOR INTELLIGENCE
COMMUNITY BUSINESS SYSTEMS.—(1) The Director of Na-
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tional Intelligence shall, acting through the Intelligence
Community Business Systems Management Committee es-
tablished under subsection (f), develop and implement an
enterprise architecture to cover all intelligence community
business systems, and the functions and activities supported
by such business systems. The enterprise architecture shall
be sufficiently defined to effectively guide, constrain, and
permit implementation of interoperable intelligence com-
munity business system solutions, consistent with applica-
ble policies and procedures established by the Director of
the Office of Management and Budget.
‘‘(2) The enterprise architecture under paragraph (1)
shall include the following:
‘‘(A) An information infrastructure that, at a
minimum, will enable the intelligence community
to—
‘‘(i) comply with all Federal accounting, fi-
nancial management, and reporting require-
ments;
‘‘(ii) routinely produce timely, accurate,
and reliable financial information for manage-
ment purposes;
‘‘(iii) integrate budget, accounting, and pro-
gram information and systems; and
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‘‘(iv) provide for the systematic measure-
ment of performance, including the ability to
produce timely, relevant, and reliable cost infor-
mation.
‘‘(B) Policies, procedures, data standards, and
system interface requirements that apply uniformly
throughout the intelligence community.
‘‘(c) RESPONSIBILITIES FOR INTELLIGENCE COMMU-
NITY BUSINESS SYSTEM MODERNIZATION.—(1) The Direc-
tor of National Intelligence shall be responsible for review,
approval, and oversight of the planning, design, acquisi-
tion, deployment, operation, and maintenance of an intel-
ligence community business system modernization if more
than 50 percent of the cost of the intelligence community
business system modernization is funded by amounts ap-
propriated for the National Intelligence Program.
‘‘(2) The Director shall designate one or more appro-
priate officials of the intelligence community to be respon-
sible for making certifications with respect to intelligence
community business system modernizations under sub-
section (a)(3).
‘‘(d) INTELLIGENCE COMMUNITY BUSINESS SYSTEM
INVESTMENT REVIEW.—(1) The approval authority des-
ignated under subsection (c)(2) shall establish and imple-
ment, not later than March 31, 2008, an investment review
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process for the review of the planning, design, acquisition,
development, deployment, operation, maintenance, mod-
ernization, and project cost, benefits, and risks of the intel-
ligence community business systems for which the approval
authority is responsible.
‘‘(2) The investment review process under paragraph
(1) shall—
‘‘(A) meet the requirements of section 11312 of
title 40, United States Code; and
‘‘(B) specifically set forth the responsibilities of
the approval authority under such review process.
‘‘(3) The investment review process under paragraph
(1) shall include the following elements:
‘‘(A) Review and approval by an investment re-
view board (consisting of appropriate representatives
of the intelligence community) of each intelligence
community business system as an investment before
the obligation of funds for such system.
‘‘(B) Periodic review, but not less often than an-
nually, of every intelligence community business sys-
tem investment.
‘‘(C) Thresholds for levels of review to ensure ap-
propriate review of intelligence community business
system investments depending on the scope, com-
plexity, and cost of the system involved.
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‘‘(D) Procedures for making certifications in ac-
cordance with the requirements of subsection (a)(3).
‘‘(E) Mechanisms to ensure the consistency of the
investment review process with applicable guidance
issued by the Director of National Intelligence and the
Intelligence Community Business Systems Manage-
ment Committee established under subsection (f).
‘‘(F) Common decision criteria, including stand-
ards, requirements, and priorities, for purposes of en-
suring the integration of intelligence community busi-
ness systems.
‘‘(e) BUDGET INFORMATION.—For each fiscal year
after fiscal year 2009, the Director of National Intelligence
shall include in the materials the Director submits to Con-
gress in support of the budget for such fiscal year that is
submitted to Congress under section 1105 of title 31, United
States Code, the following information:
‘‘(1) An identification of each intelligence com-
munity business system for which funding is proposed
in such budget.
‘‘(2) An identification of all funds, by appro-
priation, proposed in such budget for each such sys-
tem, including—
‘‘(A) funds for current services to operate
and maintain such system; and
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‘‘(B) funds for business systems moderniza-
tion identified for each specific appropriation.
‘‘(3) For each such system, identification of ap-
proval authority designated for such system under
subsection (c)(2).
‘‘(4) The certification, if any, made under sub-
section (a)(3) with respect to each such system.
‘‘(f) INTELLIGENCE COMMUNITY BUSINESS SYSTEMS
MANAGEMENT COMMITTEE.—(1) The Director of National
Intelligence shall establish an Intelligence Community
Business Systems Management Committee (in this sub-
section referred to as the ‘Committee’).
‘‘(2) The Committee shall—
‘‘(A) recommend to the Director policies and
procedures necessary to effectively integrate all busi-
ness activities and any transformation, reform, reor-
ganization, or process improvement initiatives under-
taken within the intelligence community;
‘‘(B) review and approve any major update of—
‘‘(i) the enterprise architecture developed
under subsection (b); and
‘‘(ii) any plans for an intelligence commu-
nity business systems modernization;
‘‘(C) manage cross-domain integration consistent
with such enterprise architecture;
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‘‘(D) be responsible for coordinating initiatives
for intelligence community business system mod-
ernization to maximize benefits and minimize costs
for the intelligence community, and periodically re-
port to the Director on the status of efforts to carry
out an intelligence community business system mod-
ernization;
‘‘(E) ensure that funds are obligated for intel-
ligence community business system modernization in
a manner consistent with subsection (a); and
‘‘(F) carry out such other duties as the Director
shall specify.
‘‘(g) RELATION TO ANNUAL REGISTRATION REQUIRE-
MENTS.—Nothing in this section shall be construed to alter
the requirements of section 8083 of the Department of De-
fense Appropriations Act, 2005 (Public Law 108–287; 118
Stat. 989), with regard to information technology systems
(as defined in subsection (d) of such section).
‘‘(h) RELATION TO DEFENSE BUSINESS SYSTEMS AR-
CHITECTURE, ACCOUNTABILITY, AND MODERNIZATION RE-
QUIREMENTS.—An intelligence community business system
that receives more than 50 percent of its funds from
amounts available for the National Intelligence Program
shall be exempt from the requirements of section 2222 of
title 10, United States Code.
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‘‘(i) RELATION TO CLINGER-COHEN ACT.—(1) The Di-
rector of National Intelligence and the Chief Information
Officer of the Intelligence Community shall fulfill the execu-
tive agency responsibilities in chapter 113 of title 40,
United States Code, for any intelligence community busi-
ness system that receives more than 50 percent of its fund-
ing from amounts appropriated for National Intelligence
Program.
‘‘(2) Any intelligence community business system cov-
ered by paragraph (1) shall be exempt from the require-
ments of such chapter 113 that would otherwise apply to
the executive agency that contains the element of the intel-
ligence community involved.
‘‘(j) REPORTS.—Not later than March 15 of each of
2009 through 2014, the Director of National Intelligence
shall submit to the congressional intelligence committees a
report on the compliance of the intelligence community with
the requirements of this section. Each such report shall—
‘‘(1) describe actions taken and proposed for
meeting 
the 
requirements 
of 
subsection 
(a),
including—
‘‘(A) specific milestones and actual perform-
ance against specified performance measures,
and any revision of such milestones and per-
formance measures; and
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‘‘(B) specific actions on the intelligence
community business system modernizations sub-
mitted for certification under such subsection;
‘‘(2) identify the number of intelligence commu-
nity business system modernizations that received a
certification described in subsection (a)(3)(B); and
‘‘(3) describe specific improvements in business
operations and cost savings resulting from successful
intelligence community business systems moderniza-
tion efforts.
‘‘(k) DEFINITIONS.—In this section:
‘‘(1) The term ‘enterprise architecture’ has the
meaning given that term in section 3601(4) of title
44, United States Code.
‘‘(2) The terms ‘information system’ and ‘infor-
mation technology’ have the meanings given those
terms in section 11101 of title 40, United States Code.
‘‘(3) The term ‘intelligence community business
system’ means an information system, other than a
national security system, that is operated by, for, or
on behalf of the intelligence community, including fi-
nancial systems, mixed systems, financial data feeder
systems, the business infrastructure capabilities
shared by the systems of the business enterprise archi-
tecture that build upon the core infrastructure, used
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to support business activities, such as acquisition, fi-
nancial management, logistics, strategic planning
and budgeting, installations and environment, and
human resource management
‘‘(4) The term ‘intelligence community business
system modernization’ means—
‘‘(A) the acquisition or development of a
new intelligence community business system; or
‘‘(B) any significant modification or en-
hancement of an existing intelligence community
business system (other than necessary to main-
tain current services).
‘‘(5) The term ‘national security system’ has the
meaning given that term in section 3542 of title 44,
United States Code.’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents in the first section of that Act, as amended by
section 310 and 311, is further amended by inserting
after the item relating to section 506C, as added by
section 312(b) the following new item:
‘‘Sec. 506D. Intelligence community business systems, architecture, account-
ability, and modernization.’’.
(b) IMPLEMENTATION.—
(1) CERTAIN DUTIES.—Not later than 60 days
after the date of the enactment of this Act, the Direc-
tor of National Intelligence shall—
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(A) complete the delegation of responsibility
for the review, approval, and oversight of the
planning, design, acquisition, deployment, oper-
ation, maintenance, and modernization of intel-
ligence community business systems required by
subsection (c) of section 506D of the National Se-
curity Act of 1947 (as added by subsection (a));
and
(B) designate a vice chairman and per-
sonnel to serve on the Intelligence Community
Business System Management Committee estab-
lished under subsection (f) of such section 506D
(as so added).
(2) ENTERPRISE ARCHITECTURE.—The Director
shall develop the enterprise architecture required by
subsection (b) of such section 506D (as so added) by
not later than March 1, 2008. In so developing the en-
terprise architecture, the Director shall develop an
implementation plan for the architecture, including
the following:
(A) The acquisition strategy for new sys-
tems that are expected to be needed to complete
the enterprise architecture, including specific
time-phased milestones, performance metrics,
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and a statement of the financial and non-
financial resource needs.
(B) An identification of the intelligence
community business systems in operation or
planned as of December 31, 2006, that will not
be a part of the enterprise architecture, together
with the schedule for the phased termination of
the utilization of any such systems.
(C) An identification of the intelligence
community business systems in operation or
planned as of December 31, 2006, that will be a
part of the enterprise architecture, together with
a strategy for modifying such systems to ensure
that such systems comply with such enterprise
architecture.
SEC. 313. REPORTS ON THE ACQUISITION OF MAJOR SYS-
TEMS.
(a) IN GENERAL.—Title V of the National Security
Act of 1947 (50 U.S.C. 413 et seq.), as amended by sections
310, 311, and 312, is further amended by inserting after
section 506D, as added by section 312(a)(1), the following
new section:
‘‘REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS
‘‘SEC. 506E. (a) ANNUAL REPORTS REQUIRED.—(1)
The Director of National Intelligence shall submit to the
congressional intelligence committees each year, at the same
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time the budget of the President for the fiscal year beginning
in such year is submitted to Congress pursuant to section
1105 of title 31, United States Code, a separate report on
each acquisition of a major system by an element of the
intelligence community.
‘‘(2) Each report under this section shall be known as
a ‘Report on the Acquisition of Major Systems’.
‘‘(b) ELEMENTS.—Each report under this section shall
include, for the acquisition of a major system, information
on the following:
‘‘(1) The current total anticipated acquisition
cost for such system, and the history of such cost from
the date the system was first included in a report
under this section to the end of the calendar quarter
immediately proceeding the submittal of the report
under this section.
‘‘(2) The current anticipated development sched-
ule for the system, including an estimate of annual
development costs until development is completed.
‘‘(3) The current anticipated procurement sched-
ule for the system, including the best estimate of the
Director of National Intelligence of the annual costs
and units to be procured until procurement is com-
pleted.
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‘‘(4) A full life-cycle cost analysis for such sys-
tem.
‘‘(5) The result of any significant test and eval-
uation of such major system as of the date of the sub-
mittal of such report, or, if a significant test and
evaluation has not been conducted, a statement of the
reasons therefor and the results of any other test and
evaluation that has been conducted of such system.
‘‘(6) The reasons for any change in acquisition
cost, or schedule, for such system from the previous re-
port under this section (if applicable).
‘‘(7) The significant contracts or subcontracts re-
lated to the major system.
‘‘(8) If there is any cost or schedule variance
under a contract referred to in paragraph (7) since
the previous report under this section, the reasons for
such cost or schedule variance.
‘‘(c) DETERMINATION OF INCREASE IN COSTS.—Any
determination of a percentage increase in the acquisition
costs of a major system for which a report is filed under
this section shall be stated in terms of constant dollars from
the first fiscal year in which funds are appropriated for
such contract.
‘‘(d) DEFINITIONS.—In this section:
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‘‘(1) The term ‘acquisition cost’, with respect to
a major system, means the amount equal to the total
cost for development and procurement of, and system-
specific construction for, such system.
‘‘(2) The term ‘full life-cycle cost’, with respect to
the acquisition of a major system, means all costs of
development, procurement, construction, deployment,
and operation and support for such program, without
regard to funding source or management control, in-
cluding costs of development and procurement re-
quired to support or utilize such system.
‘‘(3) The term ‘major system’, has the meaning
given that term in section 506A(e).’’.
(b) CLERICAL AMENDMENT.—The table of contents in
the first section of that Act, as amended by sections 310,
311, and 312, is further amended by inserting after the item
relating to section 506D, as added by section 312(a)(2), the
following new item:
‘‘Sec. 506E. Reports on the acquisition of major systems.’’.
SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.
(a) NOTIFICATION.—Title V of the National Security
Act of 1947, as amended by sections 310 through 313, is
further amended by inserting after section 506E, as added
by section 313(a), the following new section:
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‘‘EXCESSIVE COST GROWTH OF MAJOR SYSTEMS
‘‘SEC. 506F. (a) COST INCREASES OF AT LEAST 20
PERCENT.—(1) On a continuing basis, and separate from
the submission of any report on a major system required
by section 506E of this Act, the Director of National Intel-
ligence shall determine if the acquisition cost of such major
system has increased by at least 20 percent as compared
to the baseline cost of such major system.
‘‘(2)(A) If the Director determines under paragraph
(1) that the acquisition cost of a major system has increased
by at least 20 percent, the Director shall submit to the con-
gressional intelligence committees a written notification of
such determination as described in subparagraph (B), a de-
scription of the amount of the increase in the acquisition
cost of such major system, and a certification as described
in subparagraph (C).
‘‘(B) The notification required by subparagraph (A)
shall include—
‘‘(i) an independent cost estimate;
‘‘(ii) the date on which the determination covered
by such notification was made;
‘‘(iii) contract performance assessment informa-
tion with respect to each significant contract or sub-
contract related to such major system, including the
name of the contractor, the phase of the contract at
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the time of the report, the percentage of work under
the contract that has been completed, any change in
contract cost, the percentage by which the contract is
currently ahead or behind schedule, and a summary
explanation of significant occurrences, such as cost
and schedule variances, and the effect of such occur-
rences on future costs and schedules;
‘‘(iv) the prior estimate of the full life-cycle cost
for such major system, expressed in constant dollars
and in current year dollars;
‘‘(v) the current estimated full life-cycle cost of
such major system, expressed in constant dollars and
current year dollars;
‘‘(vi) a statement of the reasons for any increases
in the full life-cycle cost of such major system;
‘‘(vii) the current change and the total change,
in dollars and expressed as a percentage, in the full
life-cycle cost applicable to such major system, stated
both in constant dollars and current year dollars;
‘‘(viii) the completion status of such major sys-
tem expressed as the percentage—
‘‘(I) of the total number of years for which
funds have been appropriated for such major sys-
tem compared to the number of years for which
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it is planned that such funds will be appro-
priated; and
‘‘(II) of the amount of funds that have been
appropriated for such major system compared to
the total amount of such funds which it is
planned will be appropriated;
‘‘(ix) the action taken and proposed to be taken
to control future cost growth of such major system;
and
‘‘(x) any changes made in the performance or
schedule of such major system and the extent to which
such changes have contributed to the increase in full
life-cycle costs of such major system.
‘‘(C) The certification described in this subparagraph
is a written certification made by the Director and sub-
mitted to the congressional intelligence committees that—
‘‘(i) the acquisition of such major system is es-
sential to the national security;
‘‘(ii) there are no alternatives to such major sys-
tem that will provide equal or greater intelligence ca-
pability at equal or lesser cost to completion;
‘‘(iii) the new estimates of the full life-cycle cost
for such major system are reasonable; and
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‘‘(iv) the management structure for the acquisi-
tion of such major system is adequate to manage and
control full life-cycle cost of such major system.
‘‘(b) COST INCREASES OF AT LEAST 40 PERCENT.—
(1) If the Director of National Intelligence determines that
the acquisition cost of a major system has increased by at
least 40 percent as compared to the baseline cost of such
major system, the President shall submit to the congres-
sional intelligence committees a written certification stat-
ing that—
‘‘(A) the acquisition of such major system is es-
sential to the national security;
‘‘(B) there are no alternatives to such major sys-
tem that will provide equal or greater intelligence ca-
pability at equal or lesser cost to completion;
‘‘(C) the new estimates of the full life-cycle cost
for such major system are reasonable; and
‘‘(D) the management structure for the acquisi-
tion of such major system is adequate to manage and
control the full life-cycle cost of such major system.
‘‘(2) In addition to the certification required by para-
graph (1), the Director of National Intelligence shall submit
to the congressional intelligence committees an updated no-
tification, with current accompanying information, as re-
quired by subsection (a)(2).
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‘‘(c) PROHIBITION ON OBLIGATION OF FUNDS.—(1) If
a written certification required under subsection (a)(2)(A)
is not submitted to the congressional intelligence committees
within 30 days of the determination made under subsection
(a)(1), funds appropriated for the acquisition of a major
system may not be obligated for a major contract under
the program. Such prohibition on the obligation of funds
shall cease to apply at the end of the 30-day period of a
continuous session of Congress that begins on the date on
which Congress receives the notification required under sub-
section (a)(2)(A).
‘‘(2) If a written certification required under sub-
section (b)(1) is not submitted to the congressional intel-
ligence committees within 30 days of the determination
made under subsection (b)(1), funds appropriated for the
acquisition of a major system may not be obligated for a
major contract under the program. Such prohibition on the
obligation of funds for the acquisition of a major system
shall cease to apply at the end of the 30-day period of a
continuous session of Congress that begins on the date on
which Congress receives the notification required under sub-
section (b)(2).
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘acquisition cost’ has the meaning
given that term in section 506E(d).
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‘‘(2) The term ‘baseline cost’, with respect to a
major system, means the projected acquisition cost of
such system on the date the contract for the develop-
ment, procurement, and construction of the system is
awarded.
‘‘(3) The term ‘full life-cycle cost’ has the mean-
ing given that term in section 506E(d).
‘‘(4) The term ‘independent cost estimate’ has the
meaning given that term in section 506A(e).
‘‘(5) The term ‘major system’ has the meaning
given that term in section 506A(e).’’.
(b) CLERICAL AMENDMENT.—The table of contents in
the first section of that Act, as amended by sections 310
through 313 of this Act, is further amended by inserting
after the items relating to section 506E, as added by section
313(b), the following new item:
‘‘Sec. 506F. Excessive cost growth of major systems.’’.
SEC. 315. SUBMITTAL TO CONGRESS OF CERTAIN COURT
ORDERS 
UNDER 
THE 
FOREIGN 
INTEL-
LIGENCE SURVEILLANCE ACT OF 1978.
(a) INCLUSION OF CERTAIN ORDERS IN SEMI-ANNUAL
REPORTS OF ATTORNEY GENERAL.—Subsection (a)(5) of
section 601 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1871) is amended by striking ‘‘(not includ-
ing orders)’’ and inserting ‘‘, orders,’’.
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(b) REPORTS BY ATTORNEY GENERAL ON CERTAIN
OTHER ORDERS.—That section is further amended by add-
ing at the end the following new subsection:
‘‘(c) The Attorney General shall submit to the commit-
tees of Congress referred to in subsection (a) a copy of any
decision, order, or opinion issued by the court established
under section 103(a) or the court of review established
under section 103(b) that includes significant construction
or interpretation of any provision of this Act not later than
45 days after such decision, order, or opinion is issued.’’.
SEC. 316. REPEAL OF CERTAIN REPORTING REQUIRE-
MENTS.
(a) ANNUAL REPORT ON INTELLIGENCE.—
(1) REPEAL.—Section 109 of the National Secu-
rity Act of 1947 (50 U.S.C. 404d) is repealed.
(2) CLERICAL AMENDMENT.—The table of con-
tents in the first section of the National Security Act
of 1947 is amended by striking the item relating to
section 109.
(b) ANNUAL AND SPECIAL REPORTS ON INTELLIGENCE
SHARING WITH THE UNITED NATIONS.—Section 112 of the
National Security Act of 1947 (50 U.S.C. 404g) is
amended—
(1) by striking subsection (b); and
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(2) by redesignating subsections (c), (d), and (e)
as subsections (b), (c), and (d), respectively.
(c) ANNUAL REPORT ON SAFETY AND SECURITY OF
RUSSIAN NUCLEAR FACILITIES AND FORCES.—Section 114
of the National Security Act of 1947 (50 U.S.C. 404i) is
amended—
(1) by striking subsection (a); and
(2) by redesignating subsections (b), (c), and (d)
as subsections (a), (b), and (c), respectively.
(d) ANNUAL
CERTIFICATION
ON
COUNTERINTEL-
LIGENCE INITIATIVES.—Section 1102(b) of the National Se-
curity Act of 1947 (50 U.S.C. 442a(b)) is amended—
(1) by striking ‘‘(1)’’; and
(2) by striking paragraph (2).
(e) REPORT AND CERTIFICATION UNDER TERRORIST
IDENTIFICATION CLASSIFICATION SYSTEM.—Section 343 of
the Intelligence Authorization Act for Fiscal Year 2003 (50
U.S.C. 404n–2) is amended—
(1) by striking subsection (d); and
(2) by redesignating subsections (e), (f), (g), and
(h) as subsections (d), (e), (f), and (g), respectively.
(f) ANNUAL REPORT ON COUNTERDRUG INTELLIGENCE
MATTERS.—Section 826 of the Intelligence Authorization
Act for Fiscal Year 2003 (Public Law 107–306; 116 Stat.
2429; 21 U.S.C. 873 note) is repealed.
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(g) SEMIANNUAL REPORT ON CONTRIBUTIONS TO PRO-
LIFERATION EFFORTS OF COUNTRIES OF PROLIFERATION
CONCERN.—Section 722 of the Combatting Proliferation of
Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2369)
is repealed.
(h) CONFORMING AMENDMENTS.—Section 507(a) of
the National Security Act of 1947 (50 U.S.C. 415b(a)) is
amended—
(1) in paragraph (1)—
(A) by striking subparagraphs (A) and (B);
and
(B) by redesignating subparagraphs (C)
through (N) as subparagraphs (A) through (L),
respectively; and
(2) in paragraph (2)—
(A) by striking subparagraphs (A) and (D);
(B) by redesignating subparagraphs (B)
and (C) as subparagraphs (A) and (B), respec-
tively; and
(C) in subparagraph (A), as redesignated
by subparagraph (B) of this paragraph, by strik-
ing ‘‘114(c)’’ and inserting ‘‘114(b)’’.