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(4) The Quadrennial Defense Review, issued 
February 6, 2006. 
(5) The Committee Defense Review of the Com-
mittee on Armed Services of the House of Rep-
resentatives (when available). 
(c) RECOMMENDATIONS.—Each report submitted 
under subsection (a) shall include such recommendations 
as the Secretary considers appropriate, and implementa-
tion plans for the recommendations. 
(d) TERMINATION OF REPORT REQUIREMENT.—The 
requirement to submit reports under subsection (a) shall 
terminate on the first day of the calendar quarter fol-
lowing the first calendar quarter in which the Selected Ac-
quisition Report submitted to Congress under section 
2432 of title 10, United States Code, does not indicate 
that there has been an increase by a percentage equal to 
or greater than the significant cost growth threshold or 
the critical cost growth threshold in any major defense ac-
quisition program (as such thresholds are defined in sec-
tion 2433(a) of such title). 
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SEC. 805. ESTABLISHMENT OF DEFENSE CHALLENGE PROC-
ESS FOR CRITICAL COST GROWTH THRESH-
OLD BREACHES IN MAJOR DEFENSE ACQUISI-
TION PROGRAMS. 
(a) PRELIMINARY EVALUATION OF CHALLENGE PRO-
POSALS FOR CRITICAL COST BREACHES.— 
(1) SUBMISSION OF CHALLENGE PROPOSALS.— 
Section 2359b(c)) of title 10, United States Code, is 
amended— 
(A) in paragraph (1), by striking ‘‘Panel,’’ 
and all that follows through the end and insert-
ing the following: ‘‘Panel— 
‘‘(A) through the unsolicited proposal process; 
‘‘(B) in response to a broad agency announce-
ment; or 
‘‘(C) in response to a solicitation issued as a re-
sult of a critical cost growth threshold breach (as de-
fined in paragraph (4)).’’; 
(B) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (5), (7), and (8), respec-
tively; 
(C) by inserting after paragraph (3) the 
following new paragraph (4): 
‘‘(4)(A) If the program acquisition unit cost or 
procurement unit cost of a major defense acquisition 
program increases by a percentage equal to or great-
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er than the critical cost growth threshold for the 
program, as determined by the Secretary concerned 
under section 2433(d) of this title (in this section re-
ferred to as a ‘critical cost growth threshold 
breach’), the Under Secretary shall issue a solicita-
tion for challenge proposals that would result in im-
provements in affordability of the program. The so-
licitation shall specifically identify (i) the cost and 
schedule variances, and (ii) the design, engineering, 
manufacturing, or technology integration issues, con-
tributing to the breach. 
‘‘(B) A solicitation referred to in subparagraph 
(A) shall be made public before the end of the 14- 
day period beginning on the day the Selected Acqui-
sition Report containing the information described in 
section 2433(g) of this title is required to be sub-
mitted under section 2432(f) of this title. 
‘‘(C) A solicitation referred to in subparagraph 
(A) shall require any challenge proposals responding 
to the solicitation to be submitted within 30 days 
after the date of issuance of the solicitation.’’; 
(D) in paragraph (5) (as so redesignated) 
in the matter preceding subparagraph (A)— 
(i) by striking ‘‘or submitted’’ and in-
serting ‘‘submitted’’; and 
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(ii) by inserting after ‘‘paragraph 
(2),’’ the following: ‘‘or submitted in re-
sponse to a solicitation issued as a result 
of a critical cost growth threshold breach’’; 
and 
(E) by inserting after paragraph (5) (as so 
redesignated) the following new paragraph (6): 
‘‘(6) A panel shall complete a preliminary eval-
uation of challenge proposals submitted in response 
to a solicitation issued as a result of a critical cost 
growth threshold breach before the end of the 60- 
day period beginning on the day the Selected Acqui-
sition Report referred to in paragraph (4)(B) is sub-
mitted to Congress and shall inform the Secretary of 
Defense of the results of the evaluation to aid in the 
completion of the Secretary’s certification under sec-
tion 2433(e)(2)(B) of this title.’’. 
(b) ACTION UPON FAVORABLE FULL REVIEW AND 
EVALUATION OF CHALLENGE PROPOSALS FOR CRITICAL 
COST BREACHES.—Section 2359b(e) of such title is 
amended by adding at the end the following new para-
graph: 
‘‘(3) In the case of a challenge proposal re-
ferred to in paragraph (1) that was submitted in re-
sponse to a solicitation issued as a result of a critical 
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cost growth threshold breach, the costs of the pro-
posal shall be borne by the major defense acquisition 
program with respect to which the breach oc-
curred.’’. 
(c) ACTION UPON UNFAVORABLE FULL REVIEW AND 
EVALUATION OF CHALLENGE PROPOSALS FOR CRITICAL 
COST BREACHES.—Section 2359b of such title, as amend-
ed by section 213, is further amended— 
(1) by redesignating subsections (f), (g), (h), 
and (i) as subsections (g), (h), (i), and (j), respec-
tively; and 
(2) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) ACTION UPON UNFAVORABLE FULL REVIEW 
AND EVALUATION OF CRITICAL COST BREACH SOLICITA-
TIONS.—In the case of a challenge proposal that was sub-
mitted in response to a solicitation issued as a result of 
a critical cost growth threshold breach and that is not de-
termined under a full review and evaluation to satisfy each 
of the criteria specified in subsection (c)(5), the following 
provisions apply: 
‘‘(1) The office carrying out the full review and 
evaluation shall provide to the Panel that conducted 
the preliminary evaluation a statement containing a 
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summary of the rationale for the unfavorable evalua-
tion. 
‘‘(2) If the Panel disagrees with the rationale 
provided under paragraph (1), the Panel may return 
the challenge proposal to the office for further con-
sideration. 
‘‘(3) The full review and evaluation, including a 
further consideration of the review and evaluation 
under paragraph (2), shall be completed not later 
than the expiration of the 60-day period beginning 
on the date of completion of the preliminary evalua-
tion of the proposal by a Panel under subsection (c). 
‘‘(4) After a full review and evaluation of all 
such challenge proposals submitted for such review 
and evaluation are completed, including further con-
sideration under paragraph (2), the Under Secretary 
shall submit to the congressional defense committees 
a report containing a list of each challenge proposal 
with an unfavorable evaluation, including an identi-
fication of each such challenge proposal returned to 
an office for further consideration, and a detailed ra-
tionale for the unfavorable evaluations upon both 
initial and further consideration (if any). Such re-
port shall be submitted not later than the expiration 
of the 60-day period beginning on the date of com-
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pletion of the last preliminary evaluation of the pro-
posals by a Panel under subsection (c).’’. 
(d) AMENDMENTS TO UNIT COST REPORTS PROVI-
SIONS.— 
(1) ADDITIONAL ASSESSMENT REQUIRED UPON 
BREACH OF CRITICAL COST GROWTH THRESHOLD.— 
Section 2433(e)(2)(A) of title 10, United States 
Code, is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii); 
(B) by inserting ‘‘and’’ at the end of clause 
(iii); and 
(C) by adding at the end the following new 
clause: 
‘‘(iv) the availability of components, sub-
systems, or systems that may result in near- 
term improvements in affordability of the pro-
gram, as identified under the Defense Acquisi-
tion Challenge Program through a solicitation 
issued pursuant to section 2359b(c)(1)(C) of 
this title;’’. 
(2) ADDITIONAL
CERTIFICATION
REQUIRED 
UPON BREACH OF CRITICAL COST GROWTH THRESH-
OLD.—Section 2433(e)(2)(B) of such title is amend-
ed— 
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(A) by redesignating clauses (iii) and (iv) 
as clauses (iv) and (v), respectively; and 
(B) by inserting after clause (ii) the fol-
lowing new clause (iii): 
‘‘(iii) the Panel conducting preliminary 
evaluation of challenge proposals submitted in 
response to the solicitation issued under the De-
fense Acquisition Challenge Program pursuant 
to section 2359b(c)(1)(C) of this title has iden-
tified no promising proposals meriting full re-
view and evaluation;’’. 
(3) ADDITIONAL INFORMATION IN CERTAIN RE-
PORT REQUIRED.—Section 2433(g)(1)(P)(vi) of such 
title is amended by inserting after ‘‘of the program’’ 
the following: ‘‘and design, engineering, manufac-
turing, or technology integration issues’’. 
(e) ADDITIONAL CONFORMING AMENDMENTS.—Sec-
tion 2359b of such title is further amended— 
(1) in subsection (c)(8), as redesignated by sub-
section (a), by striking ‘‘paragraph (4)’’ and insert-
ing ‘‘paragraph (5)’’; 
(2) in subsection (d)(1), by striking ‘‘subsection 
(c)(6)’’ and inserting ‘‘subsection (c)(8)’’; 
(3) in subsection (d)(2), by striking ‘‘subsection 
(c)(4)’’ and inserting ‘‘subsection (c)(5)’’; and 
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(4) in subsection (e)(1), by striking ‘‘subsection 
(c)(4)’’ and inserting ‘‘subsection (c)(5)’’. 
SEC. 806. MARKET RESEARCH REQUIRED FOR MAJOR DE-
FENSE 
ACQUISITION 
PROGRAMS 
BEFORE 
PROCEEDING TO MILESTONE B. 
Section 2366a(a) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (1) through 
(7) as paragraphs (2) through (8), respectively; and 
(2) by inserting before paragraph (2) (as so re-
designated) the following new paragraph (1): 
‘‘(1) market research has been conducted prior 
to technology development to reduce duplication of 
existing technology and products;’’. 
Subtitle B—Acquisition Policy and 
Management 
SEC. 811. APPLICABILITY OF STATUTORY EXECUTIVE COM-
PENSATION CAP MADE PROSPECTIVE. 
(a) PROSPECTIVE APPLICABILITY
OF EXECUTIVE 
COMPENSATION CAP.—Section 808(e)(2) of Public Law 
105–85 (41 U.S.C. 435 note; 111 Stat. 1838) is amended 
by striking ‘‘before, on,’’ and inserting ‘‘on’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply as if included in Public Law 
105–85 as enacted. 
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SEC. 812. PROHIBITION ON PROCUREMENT FROM BENE-
FICIARIES OF FOREIGN SUBSIDIES. 
(a) PROHIBITION.—The Secretary of Defense may 
not enter into a contract for the procurement of goods 
or services from any foreign person to which the govern-
ment of a foreign country that is a member of the World 
Trade Organization has provided a subsidy if— 
(1) the United States has requested consulta-
tions with that foreign country under the Agreement 
on Subsidies and Countervailing Measures on the 
basis that the subsidy is a prohibited subsidy under 
that Agreement; and 
(2) either— 
(A) the issue before the World Trade Or-
ganization has not been resolved; or 
(B) the World Trade Organization has 
ruled that the subsidy provided by the foreign 
country is a prohibited subsidy under the 
Agreement on Subsidies and Countervailing 
Measures. 
(b) JOINT VENTURES.—The prohibition under sub-
section (a) with respect to a foreign person also applies 
to any joint venture, cooperative organization, partner-
ship, or contracting team of which that foreign person is 
a member. 
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(c) SUBCONTRACTS AND TASK ORDERS.—The prohi-
bition under subsection (a) with respect to a contract also 
applies to any subcontracts at any tier entered into under 
the contract and any task orders at any tier issued under 
the contract. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘Agreement on Subsidies and 
Countervailing Measures’’ means the agreement de-
scribed in section 101(d)(12) of the Uruguay Round 
Agreements Act (19 U.S.C. 3501(d)(12)). 
(2) The term ‘‘foreign person’’ means— 
(A) an individual who is not a United 
States person or an alien lawfully admitted for 
permanent residence into the United States; or 
(B) a corporation, partnership, or other 
nongovernmental entity which is not a United 
States person. 
(3) The term ‘‘United States person’’ means— 
(A) a natural person who is a citizen of the 
United States or who owes permanent alle-
giance to the United States; and 
(B) a corporation or other legal entity 
which is organized under the laws of the United 
States, any State or territory thereof, or the 
District of Columbia, if natural persons de-
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HR 5122 PCS 
scribed in subparagraph (A) own, directly or in-
directly, more than 50 percent of the out-
standing capital stock or other beneficial inter-
est in such legal entity. 
(e) APPLICABILITY.— 
(1) PROGRAMS WITH MILESTONE B APPROVAL 
NOT
COVERED.—The prohibition under subsection 
(a) shall not apply to any contract under a major 
defense acquisition program that has received Mile-
stone B approval as of the date of the enactment of 
this Act. 
(2) DEFINITIONS.—In this subsection: 
(A) The term ‘‘major defense acquisition 
program’’ means a Department of Defense ac-
quisition program that is a major defense ac-
quisition program for purposes of section 2430 
of title 10, United States Code. 
(B) The term ‘‘Milestone B approval’’ has 
the meaning provided that term in section 
2366(e)(7) of such title. 
SEC. 813. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT 
OF DEFENSE INFORMATION TECHNOLOGY 
BUSINESS SYSTEMS. 
(a) MILESTONE A LIMITATION.—The Department of 
Defense executive or entity that is the milestone decision 
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authority for an information system described in sub-
section (c) may not provide Milestone A approval for the 
system unless, as part of the decision process for such ap-
proval, that authority determines that the system will 
achieve initial operational capability within five years of 
such approval. 
(b) INITIAL
OPERATIONAL
CAPABILITY
LIMITA-
TION.—Funds appropriated or otherwise available to the 
Department of Defense may not be obligated or expended 
for an information system described in subsection (c) if 
the system, having received Milestone A approval, has not 
achieved initial operational capability within five years of 
the date of such approval. 
(c) COVERED SYSTEMS.—An information system de-
scribed in this subsection is any Department of Defense 
information technology business system that is not a na-
tional security system, as defined in 3542(b)(2) of title 
44, United States Code. 
(d) APPLICABILITY TO EXISTING PROGRAMS.— 
(1) WAIVER
AUTHORITY
FOR
EXISTING
PRO-
GRAMS
IN
DEVELOPMENT.—The Secretary of De-
fense may waive the applicability of subsection (b) in 
the case of a program described in subsection (c) 
that as of the date of the enactment of this Act has 
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received Milestone A approval but has not as of such 
date achieved initial operational capability. 
(2) INAPPLICABILITY TO PROGRAMS THROUGH 
DEVELOPMENT.—This section does not apply to an 
information system that achieved initial operational 
capability before the date of the enactment of this 
Act. 
(e) DEFINITIONS.—In this section: 
(1) MILESTONE
DECISION
AUTHORITY.—The 
term ‘‘milestone decision authority’’ has the meaning 
given that term in Department of Defense Instruc-
tion 5000.2, dated May 12, 2003. 
(2) MILESTONE A.—The term ‘‘Milestone A’’ 
has the meaning given that term in Department of 
Defense Instruction 5000.2, dated May 12, 2003. 
SEC. 814. ESTABLISHMENT OF PANEL ON CONTRACTING IN-
TEGRITY. 
(a) ESTABLISHMENT.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall establish a panel to be known as the ‘‘Panel on 
Contracting Integrity’’. 
(2) COMPOSITION.—The panel shall be com-
posed of the following: 
(A) The Deputy Secretary of Defense, who 
shall be the chairman of the panel. 
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(B) The service acquisition executive of 
each military department. 
(C) The Inspector General of the Depart-
ment of Defense. 
(D) The Director of the Defense Logistics 
Agency. 
(E) The Director of the Defense Contract 
Management Agency. 
(F) The Director of the Defense Contract 
Audit Agency. 
(G) Such other members as determined ap-
propriate by the Secretary of Defense. 
(b) DUTIES.—In addition to other matters assigned 
to it by the Secretary of Defense, the panel shall— 
(1) conduct reviews of progress made by the 
Department of Defense to eliminate areas of vulner-
ability of the defense contracting system that allow 
fraud, waste, and abuse to occur; 
(2) review the report by the Comptroller Gen-
eral required by section 841 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 
109–163; 119 Stat. 3389), relating to areas of vul-
nerability of Department of Defense contracts to 
fraud, waste, and abuse; and 
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(3) recommend changes in law, regulations, and 
policy that it determines necessary to eliminate such 
areas of vulnerability. 
(c) MEETINGS.—The panel shall meet as determined 
necessary by the Secretary of Defense but not less often 
than once every six months. 
(d) REPORT.— 
(1) REQUIREMENT.—The panel shall prepare 
and submit to the congressional defense committees 
an annual report on its activities. The report shall 
contain a summary of its findings and recommenda-
tions for the year covered by the report. 
(2) FIRST REPORT.—The first report under this 
subsection shall be submitted not later than 180 
days after the date of the enactment of this Act and 
shall contain an examination of the current struc-
ture in the Department of Defense for personnel ac-
countability relating to the contracting system and 
recommendations for any changes needed to the sys-
tem of administrative safeguards and disciplinary 
actions to ensure accountability at the appropriate 
level for any violations of appropriate standards of 
behavior in contracting. 
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SEC. 815. AWARD AND INCENTIVE FEE CONTRACT STAND-
ARDS. 
(a) REQUIREMENT TO DEVELOP AND ISSUE STAND-
ARDS.—Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall develop 
and issue— 
(1) standards that link award and incentive fees 
to desired program outcomes, such as meeting cost, 
schedule, and capability goals; 
(2) standards that identify the appropriate ap-
proving official level involved in awarding new con-
tracts utilizing award and incentive fees; 
(3) guidance on when the use of rollover is ap-
propriate in terms of new contracts utilizing award 
and incentive fees; 
(4) performance measures to evaluate the effec-
tiveness of award and incentive fees as a tool for im-
proving contractor performance and achieving de-
sired program outcomes; and 
(5) guidance for the development of a mecha-
nism to capture award and incentive fee data and to 
share proven award and incentive fee strategies with 
appropriate contracting and program officials at the 
Department of Defense. 
(b) DEFINITION.—In this section, the term ‘‘rollover’’ 
means the process of moving unearned available award 
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HR 5122 PCS 
and incentive fees from one evaluation period to a subse-
quent evaluation period, thereby providing the contractor 
with an additional opportunity to earn that previously un-
earned award or incentive fee. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on the status and effec-
tiveness of developing the standards required under sub-
section (a) for award and incentive fee contracts. 
(d) SENSE OF CONGRESS.—It is the sense of Con-
gress that award and incentive fees should be used to mo-
tivate excellent contractor performance and that such fees 
should not be awarded for below-satisfactory performance. 
SEC. 816. OVERSIGHT AND ACCOUNTABILITY OF CON-
TRACTOR PERSONNEL. 
(a) REPORT
AND REQUIREMENTS RELATING
TO 
CONTRACTS TO BE PERFORMED IN IRAQ AND AFGHANI-
STAN.— 
(1) INSPECTOR GENERAL REPORT.—Not later 
than March 1, 2007, the Inspector General of the 
Department of Defense shall submit to Congress a 
report on overcharges discovered by the Inspector 
General under contracts entered into by the Depart-
ment for work to be performed in Iraq and Afghani-
stan. 
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(2) ASSIGNMENT OF SUFFICIENT CONTRACTING 
OFFICERS.—The Under Secretary of Defense for Ac-
quisition, Logistics, and Technology shall ensure 
that sufficient contracting officers are assigned to 
oversee and monitor contracts entered into by the 
Department of Defense for work to be performed in 
Iraq and Afghanistan. 
(b) REQUIREMENTS RELATING TO EMPLOYEES OF 
DEFENSE
CONTRACTORS
OPERATING
OUTSIDE
THE 
UNITED STATES.— 
(1) BACKGROUND CHECKS.—The Secretary of 
Defense shall implement a policy for conducting 
comprehensive background checks on foreign nation-
als hired by contractors (and subcontractors at any 
tier) of the Department of Defense operating outside 
the United States. The type of background check in-
cluded in such policy shall be suitable for employ-
ment screening and shall, at a minimum, include a 
determination of whether the potential employee is 
on a terrorist watch list or has a criminal record. 
The policy shall provide for completing such back-
ground checks as quickly as possible. 
(2) PROHIBITION ON HIRING CERTAIN EMPLOY-
EES.—A contractor (or subcontractor at any tier) of 
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the Department of Defense operating outside the 
United States may not hire any person— 
(A) who has been convicted of a violent fel-
ony; or 
(B) who is determined by the Secretary of 
Defense to have committed acts inconsistent 
with the policy of the Department of Defense 
on human rights. 
(c) REPORT AND APPLICABILITY OF DEFENSE IN-
STRUCTION RELATING TO CONTRACTOR PERSONNEL AU-
THORIZED TO ACCOMPANY THE ARMED FORCES.— 
(1) REPORT ON IMPLEMENTATION OF INSTRUC-
TION.—The Secretary of Defense shall submit to 
Congress a report on the Department of Defense in-
struction described in paragraph (3). The report 
shall include information on the status of the imple-
mentation of the instruction, how the instruction is 
being enforced, and the effectiveness of the instruc-
tion. 
(2) REQUIREMENT TO APPLY TO CONTRACTS.— 
The Department of Defense instruction described in 
paragraph (3) shall apply to— 
(A) contracts entered into by the Depart-
ment of Defense after the date of the enact-
ment of this Act; 
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(B) task orders issued after the date of the 
enactment of this Act under contracts in exist-
ence on the date of enactment of this Act; and 
(C) contracts in existence on the date of 
the enactment of this Act with respect to which 
an option to extend the contract is exercised 
after such date. 
(3) INSTRUCTION DESCRIBED.—The instruction 
referred to in this subsection is Department of De-
fense Instruction Number 3020.14, titled ‘‘Con-
tractor Personnel Authorized to Accompany the 
United States Armed Forces’’. 
Subtitle C—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 821. EXTENSION OF SPECIAL TEMPORARY CONTRACT 
CLOSEOUT AUTHORITY. 
Section 804 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1541) is amended in subsection (d) by striking ‘‘Sep-
tember 30, 2006’’ and inserting ‘‘September 30, 2007’’. 
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SEC. 822. LIMITATION ON CONTRACTS FOR THE ACQUISI-
TION OF CERTAIN SERVICES. 
(a) LIMITATION.—Except as provided in subsection 
(b), the Secretary of Defense may not enter into a contract 
for covered services if the amount of the contract— 
(1) exceeds 75 percent of the estimated value of 
any asset required for the provision of services under 
the contract, as of the date on which contract per-
formance begins; or 
(2) exceeds $150,000,000 in payments over the 
life of the contract assuming all options to extend 
the contract are exercised. 
(b) WAIVER.—The Secretary of Defense may waive 
subsection (a) with respect to a contract for covered serv-
ices if the Secretary— 
(1) determines that a waiver is necessary for 
national security purposes; and 
(2) provides to the congressional defense com-
mittees an economic analysis as described in sub-
section (c) at least 30 days before the waiver takes 
effect. 
(c) ECONOMIC ANALYSIS.—The economic analysis 
provided under subsection (b) shall include, at a minimum, 
the following: 
(1) A clear explanation of the need for the con-
tract for covered services. 
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(2) An examination of at least two alternatives 
for fulfilling the requirements that the contract is 
meant to fulfill, including the following with respect 
to each alternative: 
(A) A rationale for including the alter-
native. 
(B) A cost estimate of the alternative and 
an analysis of the quality of each cost estimate. 
(C) A discussion of the benefits to be real-
ized from the alternative. 
(D) A best value determination of each al-
ternative and a detailed explanation of the life- 
cycle cost calculations used in the determina-
tion. 
(d) COVERED SERVICES.—The limitation in sub-
section (a) applies to any contract for the following types 
of services: 
(1) Operation, maintenance, or support of fa-
cilities or installations, or construction of facilities 
needed for performing the contract. 
(2) Maintenance or modification of aircraft, 
ships, vehicles, or other highly complex military 
equipment, or the provision of aircraft, ships, vehi-
cles, or other highly complex military equipment 
needed for performing the contract. 
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HR 5122 PCS 
(3) Specialized training necessitating high qual-
ity instructor skills (for example, pilot and air crew 
members; foreign language training). 
(4) Base services (for example, ground mainte-
nance, in-plane refueling; bus transportation; refuse 
collection and disposal). 
SEC. 823. USE OF FEDERAL SUPPLY SCHEDULES BY STATE 
AND LOCAL GOVERNMENTS FOR GOODS AND 
SERVICES FOR RECOVERY FROM NATURAL 
DISASTERS, TERRORISM, OR NUCLEAR, BIO-
LOGICAL, CHEMICAL, OR RADIOLOGICAL AT-
TACK. 
(a) AUTHORITY TO USE SUPPLY SCHEDULES FOR 
CERTAIN GOODS AND SERVICES.—Section 502 of title 40, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(d) USE
OF SUPPLY SCHEDULES
FOR CERTAIN 
GOODS AND SERVICES.— 
‘‘(1) IN
GENERAL.—The Administrator may 
provide for the use by State or local governments of 
Federal supply schedules of the General Services Ad-
ministration for goods or services that are to be used 
to facilitate recovery from a major disaster declared 
by the President under the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
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HR 5122 PCS 
U.S.C. 5121 et seq.) or to facilitate recovery from 
terrorism or nuclear, biological, chemical, or radio-
logical attack. 
‘‘(2) 
DETERMINATION
BY
SECRETARY
OF 
HOMELAND SECURITY.—The Secretary of Homeland 
Security shall determine which goods and services 
qualify as goods and services described in paragraph 
(1) before the Administrator provides for the use of 
the Federal supply schedule relating to such goods 
and services. 
‘‘(3) VOLUNTARY USE.—In the case of the use 
by a State or local government of a Federal supply 
schedule pursuant to paragraph (1), participation by 
a firm that sells to the Federal Government through 
the supply schedule shall be voluntary with respect 
to a sale to the State or local government through 
such supply schedule. 
‘‘(4) DEFINITIONS.—The definitions in sub-
section (c)(3) shall apply for purposes of this sub-
section.’’. 
(b) PROCEDURES.—Not later than 30 days after the 
date of the enactment of this Act, the Administrator of 
General Services shall establish procedures to implement 
section 502(d) of title 40, United States Code (as added 
by subsection (a)). 
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SEC. 824. WAIVERS TO EXTEND TASK ORDER CONTRACTS 
FOR ADVISORY AND ASSISTANCE SERVICES. 
(a) DEFENSE CONTRACTS.—Section 2304b(b) of title 
10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The period’’; 
(2) by inserting before the period the following: 
‘‘or a waiver is issued under paragraph (2)’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) The head of an agency may issue a waiver 
to extend a task order contract entered into under 
this section for a period not exceeding 10 years, 
through five one-year options, if the head of the 
agency determines in writing— 
‘‘(A) that the contract provides engineering 
or technical services of such a unique and sub-
stantial technical nature that award of a new 
contract would be harmful to the continuity of 
the program for which the services are per-
formed; 
‘‘(B) that award of a new contract would 
create a large disruption in services provided to 
the Department of Defense; and 
‘‘(C) the Department of Defense would en-
dure program risk during critical program 
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HR 5122 PCS 
stages due to loss of program corporate knowl-
edge of ongoing program activities.’’. 
(b) CIVILIAN AGENCY CONTRACTS.—Section 303I(b) 
of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253i) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The period’’; 
(2) by inserting before the period the following: 
‘‘or a waiver is issued under paragraph (2)’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) An executive agency may issue a waiver to ex-
tend a task order contract entered into under this section 
for a period not exceeding 10 years, through five one-year 
options, if the head of the agency determines in writing— 
‘‘(A) that the contract provides engineering or 
technical services of such a unique and substantial 
technical nature that award of a new contract would 
be harmful to the continuity of the program for 
which the services are performed; 
‘‘(B) that award of a new contract would create 
a large disruption in services provided to the execu-
tive agency; and 
‘‘(C) the executive agency would endure pro-
gram risk during critical program stages due to loss 
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HR 5122 PCS 
of program corporate knowledge of ongoing program 
activities.’’. 
(c) REPORT.—Not later than April 1, 2007, the Sec-
retary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Represent-
atives a report on advisory and assistance services. The 
report shall include the following information: 
(1) The methods used by the Department of 
Defense to identify a contract as an advisory and as-
sistance services contract, as defined in section 
2304b of title 10, United States Code. 
(2) The number of such contracts awarded by 
the Department during the five-year period pre-
ceding the date of enactment of this Act. 
(3) The average annual expenditures by the De-
partment for such contracts. 
(4) The average length of such contracts. 
(5) The number of such contracts recompeted 
and awarded to the previous award winner. 
(6) The number of contractors performing such 
contracts that previously qualified as a small busi-
ness but no longer qualify as a small business for a 
recompetition. 
(7) The number of such contracts required for 
a period of greater than five years and a justifica-
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HR 5122 PCS 
tion of why those services are required for greater 
than five years, including the rationale for not per-
forming the services inside the Department of De-
fense. 
(8) The percentage of such contracts awarded 
by the Department during the five-year period pre-
ceding the date of the enactment of this Act for as-
sistance in the introduction and transfer of engineer-
ing and technical knowledge for fielded systems, 
equipment, and components. 
(9) The actions taken by the Department to 
prevent organizational conflicts of interest in the use 
of such contracts. 
(d) PROHIBITION ON USE OF AUTHORITY BY DE-
PARTMENT OF DEFENSE IF REPORT NOT SUBMITTED.— 
The head of an agency may not issue a waiver under 
2304b(b)(2) of title 10, United States Code, as added by 
subsection (a), if the report required by subsection (c) is 
not submitted by the date set forth in that subsection. 
SEC. 825. ENHANCED ACCESS FOR SMALL BUSINESS. 
Section 9(a) of the Contract Disputes Act of 1978 
(41 U.S.C. 608) is amended by striking the period at the 
end of the first sentence and inserting the following: ‘‘or, 
in the case of a small business concern (as defined in the 
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HR 5122 PCS 
Small Business Act and regulations under that Act), 
$150,000 or less.’’. 
SEC. 826. PROCUREMENT GOAL FOR HISPANIC-SERVING IN-
STITUTIONS. 
Section 2323 of title 10, United States Code, is 
amended— 
(1) in subsection (a)(1)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(B) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(D) Hispanic-serving institutions, as des-
ignated by the Department of Education.’’; 
(2) in subsection (a)(2)— 
(A) by inserting after ‘‘historically Black 
colleges and universities’’ the following: ‘‘, His-
panic-serving institutions,’’; and 
(B) by inserting after ‘‘such colleges and 
universities’’ the following: ‘‘and institutions’’; 
(3) in subsection (c)(1), by inserting after ‘‘his-
torically Black colleges and universities’’ the fol-
lowing: ‘‘, Hispanic-serving institutions,’’; and 
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HR 5122 PCS 
(4) in subsection (c)(3), by inserting after ‘‘his-
torically Black colleges and universities’’ the fol-
lowing: ‘‘, to Hispanic-serving institutions,’’. 
SEC. 827. PROHIBITION ON DEFENSE CONTRACTORS RE-
QUIRING LICENSES OR FEES FOR USE OF 
MILITARY LIKENESSES AND DESIGNATIONS. 
The Secretary of Defense shall require that any con-
tract entered into or renewed by the Department of De-
fense include a provision prohibiting the contractor from 
requiring toy and hobby manufacturers, distributors, or 
merchants to obtain licenses from or pay fees to the con-
tractor for the use of military likenesses or designations 
on items provided under the contract. 
Subtitle D—United States Defense 
Industrial Base Provisions 
SEC. 831. PROTECTION OF STRATEGIC MATERIALS CRIT-
ICAL TO NATIONAL SECURITY. 
(a) REQUIREMENT
TO
BUY
FROM
AMERICAN 
SOURCES.— 
(1) IN
GENERAL.—Chapter 148 of title 10, 
United States Code, is amended by inserting after 
section 2533a the following new section: 
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HR 5122 PCS 
‘‘§ 2533b. Requirement to buy strategic materials crit-
ical to national security from American 
sources; exceptions 
‘‘(a) REQUIREMENT.—Except as provided in sub-
sections (c) through (h), funds appropriated or otherwise 
available to the Department of Defense may not be used 
for the procurement of an item described in subsection (b) 
if the item is not reprocessed, reused, or produced in the 
United States. 
‘‘(b) COVERED ITEMS.—An item referred to in sub-
section (a) is any of the following: 
‘‘(1) A specialty metal. 
‘‘(2) An item critical to national security, as de-
termined by the Strategic Materials Protection 
Board. 
‘‘(c) AVAILABILITY
EXCEPTION.—Subsection (a) 
does not apply to the extent that the Secretary of Defense 
or the Secretary of the military department concerned de-
termines that satisfactory quality and sufficient quantity 
of any item described in subsection (b) cannot be procured 
as and when needed. 
‘‘(d) EXCEPTION FOR CERTAIN PROCUREMENTS.— 
Subsection (a) does not apply to the following: 
‘‘(1) Procurements outside the United States in 
support of combat operations or in support of con-
tingency operations. 
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HR 5122 PCS 
‘‘(2) Procurements by vessels in foreign waters 
for use of the item. 
‘‘(3) Procurements for which the use of proce-
dures other than competitive procedures has been 
approved on the basis of section 2304(c)(2) of this 
title, relating to unusual and compelling urgency of 
need. 
‘‘(e) EXCEPTION RELATING TO AGREEMENTS WITH 
FOREIGN GOVERNMENTS.—Subsection (a) does not pre-
clude the procurement of an item described in subsection 
(b) if— 
‘‘(1) the procurement is necessary— 
‘‘(A) to comply with agreements with for-
eign governments requiring the United States 
to purchase supplies from foreign sources for 
the purposes of offsetting sales made by the 
United States Government or United States 
firms under approved programs serving defense 
requirements; or 
‘‘(B) in furtherance of agreements with 
foreign governments in which both such govern-
ments agree to remove barriers to purchases of 
supplies produced in the other country or serv-
ices performed by sources of the other country; 
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HR 5122 PCS 
‘‘(2) any such agreement with a foreign govern-
ment complies, where applicable, with the require-
ments of section 36 of the Arms Export Control Act 
(22 U.S.C. 2776) and with section 2457 of this title; 
and 
‘‘(3) the item is grown, produced, or manufac-
tured in the United States or in the country from 
which it is procured. 
‘‘(f) EXCEPTION FOR COMMISSARIES, EXCHANGES, 
AND OTHER NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES.—Subsection (a) does not apply to items purchased 
for resale purposes in commissaries, exchanges, and non-
appropriated fund instrumentalities operated by the De-
partment of Defense. 
‘‘(g) EXCEPTION
FOR SMALL PURCHASES.—Sub-
section (a) does not apply to procurements in amounts not 
greater than the simplified acquisition threshold referred 
to in section 2304(g) of this title. 
‘‘(h) APPLICABILITY TO PROCUREMENTS OF COM-
MERCIAL ITEMS.—This section applies to procurements of 
commercial items notwithstanding section 34 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 430). 
‘‘(i) APPLICABILITY TO SUBCONTRACTS.—This sec-
tion applies to subcontracts at any tier under a prime con-
tract. 
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HR 5122 PCS 
‘‘(j) APPLICABILITY
TO
NONCOMPLIANT
COMPO-
NENTS.—A procurement subject to subsection (a) shall 
not be considered to be in compliance with subsection (a) 
if noncompliant components are delivered under the pro-
curement without charge to the Federal Government. In 
this subsection, the term ‘noncompliant component’ means 
a component that is not reprocessed, reused, or produced 
in the United States. 
‘‘(k) SPECIALTY METAL DEFINED.—In this section, 
the term ‘specialty metal’ means any of the following: 
‘‘(1) Steel— 
‘‘(A) with a maximum alloy content ex-
ceeding one or more of the following limits: 
manganese, 1.65 percent; silicon, 0.60 percent; 
or copper, 0.60 percent; or 
‘‘(B) containing more than 0.25 percent of 
any of the following elements: aluminum, chro-
mium, cobalt, columbium, molybdenum, nickel, 
titanium, tungsten, or vanadium. 
‘‘(2) Metal alloys consisting of nickel, iron-nick-
el, and cobalt base alloys containing a total of other 
alloying metals (except iron) in excess of 10 percent. 
‘‘(3) Titanium and titanium alloys. 
‘‘(4) Zirconium and zirconium base alloys. 
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‘‘(5) A metal determined by the Strategic Mate-
rials Protection Board (established under section 
187 of this title) to be a specialty metal critical to 
national security. 
‘‘(l) ADDITIONAL DEFINITIONS.—In this section: 
‘‘(1) The term ‘United States’ includes posses-
sions of the United States. 
‘‘(2) The term ‘micropurchase’ means a pro-
curement in an amount not greater than the micro-
purchase threshold, as defined by section 32(f) of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 428). 
‘‘(3) The term ‘component’ has the meaning 
provided in section 4 of such Act (41 U.S.C. 403).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘2533b. Requirement to buy strategic materials critical to national security from 
American sources; exceptions.’’. 
(3) 
CONFORMING
AMENDMENTS.—Section 
2533a of title 10, United States Code, is amended— 
(A) by striking paragraph (2) of subsection 
(b); 
(B) in subsection (c), by striking ‘‘or spe-
cialty metals (including stainless steel flat-
ware)’’; and 
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HR 5122 PCS 
(C) in subsection (e)— 
(i) by striking ‘‘SPECIALTY METALS 
AND’’ in the heading; and 
(ii) by striking ‘‘specialty metals or’’. 
(4) EFFECTIVE DATES.— 
(A) Section 2533b of title 10, United 
States Code, as added by paragraph (1), shall 
apply with respect to contracts entered into 
after the date occurring 30 days after the date 
of the enactment of this Act. 
(B) The amendments made by paragraph 
(3) shall take effect on the date occurring 30 
days after the date of the enactment of this 
Act. 
(b) 
ONE-TIME
INADVERTENT
MICROPURCHASE 
WAIVER OF SPECIALTY METALS DOMESTIC SOURCE RE-
QUIREMENT.— 
(1) NOTICE OF NONCOMPLIANCE.—In the case 
of a contract with the Department of Defense in ef-
fect before the date of the enactment of this Act 
with respect to which the contracting officer for the 
contract determines the contractor is not in compli-
ance with section 2533a of title 10, United States 
Code (as in effect before such date of enactment) 
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HR 5122 PCS 
with respect to specialty metals, the contracting offi-
cer shall— 
(A) post a notice on FedBizOpps.gov that 
the contractor is not in compliance with such 
section; 
(B) notify the contractor (and any subcon-
tractor under the prime contract that is also 
noncompliant) in writing that the contractor (or 
subcontractor) is not in compliance with such 
section; and 
(C) require the contractor and any subcon-
tractor notified under subparagraph (B) to sub-
mit to the contracting officer a compliance plan 
for becoming compliant with such section. 
(2) WAIVER AUTHORITY.—In the case of a con-
tract described in paragraph (1), the contracting of-
ficer for the contract may waive the applicability to 
the contract of section 2533a of title 10, United 
States Code (as in effect before such date of enact-
ment) with respect to specialty metals if— 
(A) the procurement is a micropurchase of 
components (whether in a prime contract or a 
subcontract under such contract) and the ag-
gregate value of all such procurements in the 
prime contract and all the subcontracts under 
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HR 5122 PCS 
such contract does not exceed 1 percent of the 
amount of the contract or $100,000, whichever 
is less; 
(B) the contracting officer determines in 
writing that the contractor was and continues 
to be inadvertently not in compliance with such 
section with respect to such metals and the con-
tractor has submitted a compliance plan under 
paragraph (1)(C); and 
(C) the Secretary of the military depart-
ment concerned approves the waiver. 
(3) NOTICE.—Not later than 15 days after a 
contracting officer makes a determination under 
paragraph (2)(B) with respect to a contract, the 
contracting 
officer 
shall 
post 
a 
notice 
on 
FedBizOpps.gov that a waiver has been granted for 
the contract under this subsection. The notice shall 
include information about the applicability of section 
1001 of title 18, United States Code (relating to 
criminal penalties for false statements). 
(4) CHALLENGE PERIOD.— 
(A) During the 15-day period beginning on 
the date of the posting of a notice of a waiver 
under paragraph (3) for a contract (in this sub-
section referred to as the ‘‘challenge period’’), 
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HR 5122 PCS 
the contracting officer shall accept challenges 
submitted with respect to the contract. 
(B) For purposes of this paragraph, a 
challenge, with respect to a contract for which 
a waiver has been granted under this sub-
section, is a submission of information by an 
entity (referred to as a ‘‘challenger’’ in this sec-
tion) stating that the challenger can provide the 
specialty metals needed for performance of the 
contract and can certify in writing that the 
metals are reprocessed, reused, or produced in 
the United States. The information shall be 
submitted to the contracting officer in such 
form and manner as may be prescribed by the 
Under Secretary of Defense for Acquisition, 
Technology, and Logistics. 
(5) DETERMINATION
BY
CONTRACTING
OFFI-
CER.—During the 15-day period beginning on the 
day after the end of the challenge period with re-
spect to a contract, if any challenge has been sub-
mitted to the contracting officer, the contracting of-
ficer shall make a determination regarding whether 
the challenger can provide the specialty metals for 
the components concerned in sufficient quantity, of 
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satisfactory quality, within a reasonable time, and at 
a cost that is not unreasonable. 
(6) RESCISSION
OF
WAIVER.—(A) Except as 
provided in subparagraph (B), if the determination 
under paragraph (5) is in the affirmative, the con-
tracting officer shall— 
(i) rescind the waiver granted with respect 
to the contract under this subsection; and 
(ii) require the contractor to comply with 
subsection (a) by purchasing specialty metals 
from the challenger. 
(B) If the contracting officer makes a deter-
mination in the affirmative under paragraph (5) 
with respect to two or more challengers, the con-
tracting officer shall select or require the contractor 
to select, in such manner as the contracting officer 
considers appropriate, the challenger to provide spe-
cialty metals under the contract. 
(7) DEFINITIONS.—In this subsection: 
(A) The term ‘‘micropurchase’’ means a 
procurement in an amount not greater than the 
micropurchase threshold, as defined by section 
32(f) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 428). 
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HR 5122 PCS 
(B) The term ‘‘component’’ has the mean-
ing provided in section 4 of such Act (41 
U.S.C. 403). 
(C) The term ‘‘FedBizOpps.gov’’ means 
the website maintained by the General Services 
Administration known as FedBizOpps.gov (or 
any successor site). 
(8) TERMINATION OF WAIVER AUTHORITY.—A 
contracting officer may exercise the waiver authority 
under this subsection only after the date of the en-
actment of this Act and before July 1, 2008. 
SEC. 832. STRATEGIC MATERIALS PROTECTION BOARD. 
(a) IN GENERAL.—Chapter 7 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 187. Strategic Materials Protection Board 
‘‘(a) ESTABLISHMENT.—(1) The Secretary of De-
fense shall establish a Strategic Materials Protection 
Board. 
‘‘(2) The Board shall be composed of the following: 
‘‘(A) The Secretary of Defense, who shall be 
the chairman of the Board. 
‘‘(B) The Under Secretary of Defense for Ac-
quisition, Technology, and Logistics. 
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HR 5122 PCS 
‘‘(C) The Under Secretary of Defense for Intel-
ligence. 
‘‘(D) The Secretary of the Army. 
‘‘(E) The Secretary of the Navy. 
‘‘(F) The Secretary of the Air Force. 
‘‘(b) DUTIES.—In addition to other matters assigned 
to it by the Secretary of Defense, the Board shall— 
‘‘(1) determine the need to provide a long term 
domestic supply of items designated as critical to na-
tional security to ensure that national defense needs 
are met; 
‘‘(2) analyze the risk associated with each item 
designated as critical to national security and the af-
fect on national defense that the nonavailability of 
such item from a domestic source would have; 
‘‘(3) recommend a strategy to the President to 
ensure the domestic availability of items designated 
as critical to national security; 
‘‘(4) recommend such other strategies to the 
President as the Board considers appropriate to 
strengthen the industrial base with respect to items 
critical to national security; and 
‘‘(5) publish, not less frequently than once 
every two years, in the Federal Register a list of 
items determined to be critical to national security, 
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HR 5122 PCS 
including a list of specialty metals determined to be 
critical to national security for purposes of section 
2533b of this title (and referred to in section 
2533b(l)((1)(5) of such title). 
‘‘(c) MEETINGS.—The Board shall meet as deter-
mined necessary by the Secretary of Defense but not less 
frequently than once every two years to— 
‘‘(1) determine and publish a list of items crit-
ical to national security as described in subsection 
(b)(5); and 
‘‘(2) review items previously determined by the 
Board to be critical to national security, including 
specialty metals critical to national security for pur-
poses of section 2533b of this title, to determine the 
appropriateness of their continuing classification as 
critical to national security. 
‘‘(d) REPORTS.—After each meeting of the Board, 
the Board shall prepare and submit to Congress a report 
containing the results of the meeting and such rec-
ommendations as the Board determines appropriate. 
‘‘(e) REMOVAL OF ITEMS FROM LIST.—The Board 
may not remove from the list referred to in subsection 
(b)(5) an item previously determined to be critical to na-
tional security by the Board until a period of 30 days ex-
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HR 5122 PCS 
pires after the Board submits to the congressional defense 
committees a written notification of the removal.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘187. Strategic Materials Protection Board.’’. 
(c) FIRST MEETING OF BOARD.—The first meeting 
of the Strategic Materials Protection Board, established 
by section 187 of title 10, United States Code (as added 
by paragraph (1)) shall be not later than 180 days after 
the date of the enactment of this Act. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Standardization of statutory references to ‘‘national security system’’ 
within laws applicable to Department of Defense. 
Sec. 902. Correction of reference to predecessor of Defense Information Sys-
tems Agency. 
Sec. 903. Addition to membership of specified council. 
Sec. 904. Consolidation and standardization of authorities relating to Depart-
ment of Defense Regional Centers for Security Studies. 
Sec. 905. Redesignation of the Department of the Navy as the Department of 
the Navy and Marine Corps. 
Subtitle B—Space Activities 
Sec. 911. Designation of successor organizations for the disestablished Inter-
agency Global Positioning Executive Board. 
Sec. 912. Extension of authority for pilot program for provision of space sur-
veillance network services to non-United States Government 
entities. 
Sec. 913. Operationally Responsive Space. 
Subtitle C—Chemical Demilitarization Program 
Sec. 921. Transfer to Secretary of the Army of responsibility for Assembled 
Chemical Weapons Alternatives Program. 
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HR 5122 PCS 
Sec. 922. Comptroller General review of cost-benefit analysis of off-site versus 
on-site treatment and disposal of hydrolysate derived from neu-
tralization of VX nerve gas at Newport Chemical Depot, Indi-
ana. 
Sec. 923. Sense of Congress regarding the safe and expeditious disposal of 
chemical weapons. 
Subtitle D—Intelligence-Related Matters 
Sec. 931. Repeal of termination of authority of Secretary of Defense to engage 
in commercial activities as security for intelligence collection 
activities abroad. 
Subtitle A—Department of Defense 
Management 
SEC. 901. STANDARDIZATION OF STATUTORY REFERENCES 
TO ‘‘NATIONAL SECURITY SYSTEM’’ WITHIN 
LAWS APPLICABLE TO DEPARTMENT OF DE-
FENSE. 
(a) 
DEFENSE
BUSINESS
SYSTEMS.—Section 
2222(j)(6) of title 10, United States Code, is amended by 
striking ‘‘in section 2315 of this title’’ and inserting ‘‘in 
section 3542(b)(2) of title 44’’. 
(b) CHIEF INFORMATION OFFICER RESPONSIBIL-
ITIES.—Section 2223(c)(3) of such title is amended by 
striking ‘‘section 11103 of title 40’’ and inserting ‘‘section 
3542(b)(2) of title 44’’. 
(c) PROCUREMENT
OF AUTOMATIC DATA PROC-
ESSING EQUIPMENT AND SERVICES.—The text of section 
2315 of such title is amended to read as follows: 
‘‘For purposes of subtitle III of title 40, the term ‘na-
tional security system’, with respect to a telecommuni-
cations and information system operated by the Depart-
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HR 5122 PCS 
ment of Defense, has the meaning given that term by sec-
tion 3542(b)(2) of title 44.’’. 
SEC. 902. CORRECTION OF REFERENCE TO PREDECESSOR 
OF DEFENSE INFORMATION SYSTEMS AGEN-
CY. 
Paragraph (1) of section 193(f) of title 10, United 
States Code, is amended to read as follows: 
‘‘(1) The Defense Information Systems Agen-
cy.’’. 
SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUN-
CIL. 
Section 179(a) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(5) The commander of the United States Stra-
tegic Command.’’. 
SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AU-
THORITIES RELATING TO DEPARTMENT OF 
DEFENSE REGIONAL CENTERS FOR SECU-
RITY STUDIES. 
(a) BASIC AUTHORITIES FOR REGIONAL CENTERS.— 
(1) IN
GENERAL.—Section 184 of title 10, 
United States Code, is amended to read as follows: 
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HR 5122 PCS 
‘‘§ 184. Regional Centers for Security Studies 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
administer the Department of Defense Regional Centers 
for Security Studies in accordance with this section as 
international venues for bilateral and multilateral re-
search, communication, and exchange of ideas involving 
military and civilian participants. 
‘‘(b) REGIONAL CENTERS SPECIFIED.—(1) A De-
partment of Defense Regional Center for Security Studies 
is a Department of Defense institution that— 
‘‘(A) is operated, and designated as such, by 
the Secretary of Defense for the study of security 
issues relating to a specified geographic region of 
the world; and 
‘‘(B) serves as a forum for bilateral and multi-
lateral research, communication, and exchange of 
ideas involving military and civilian participants. 
‘‘(2) The Department of Defense Regional Centers 
for Security Studies are the following: 
‘‘(A) The George C. Marshall European Center 
for Security Studies, established in 1993 and located 
in Garmisch-Partenkirchen, Germany. 
‘‘(B) The Asia-Pacific Center for Security Stud-
ies, established in 1995 and located in Honolulu, 
Hawaii. 
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HR 5122 PCS 
‘‘(C) The Center for Hemispheric Defense 
Studies, established in 1997 and located in Wash-
ington, D.C. 
‘‘(D) The Africa Center for Strategic Studies, 
established in 1999 and located in Washington, D.C. 
‘‘(E) The Near East South Asia Center for 
Strategic Studies, established in 2000 and located in 
Washington, D.C. 
‘‘(3) No institution or element of the Department of 
Defense may be designated as a Department of Defense 
Regional Center for Security Studies for purposes of this 
section, other than the institutions specified in paragraph 
(2), except as specifically provided by law after the date 
of the enactment of this section. 
‘‘(c) REGULATIONS.—The administration of the Re-
gional Centers under this section shall be carried out 
under regulations prescribed by the Secretary. 
‘‘(d) PARTICIPATION.—Participants in activities of 
the Regional Centers may include United States military 
and civilian personnel, governmental and nongovernmental 
personnel, and foreign military and civilian, governmental 
and nongovernmental personnel. 
‘‘(e) EMPLOYMENT
AND COMPENSATION
OF FAC-
ULTY.—At each Regional Center, the Secretary may, sub-
ject to appropriations— 
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HR 5122 PCS 
‘‘(1) employ a Director, a Deputy Director, and 
as many civilians as professors, instructors, and lec-
turers as the Secretary considers necessary; and 
‘‘(2) prescribe the compensation of such per-
sons, in accordance with Federal guidelines. 
‘‘(f) PAYMENT OF COSTS.—(1) Participation in ac-
tivities of a Regional Center shall be on a reimbursable 
basis (or by payment in advance), except in a case in 
which reimbursement is waived in accordance with para-
graph (3). 
‘‘(2) For a foreign national participant, payment of 
costs may be made by the participant, the participant’s 
own government, by a Department or agency of the United 
States other than the Department of Defense, or by a gift 
or donation on behalf of one or more Regional Centers 
accepted under section 2611 of this title on behalf of the 
participant’s government. 
‘‘(3) The Secretary of Defense may waive reimburse-
ment of the costs of activities of the Regional Centers for 
foreign military officers and foreign defense and security 
civilian government officials from a developing country if 
the Secretary determines that attendance of such per-
sonnel without reimbursement is in the national security 
interest of the United States. Costs for which reimburse-
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351 
HR 5122 PCS 
ment is waived pursuant to this paragraph shall be paid 
from appropriations available to the Regional Centers. 
‘‘(4) Funds accepted for the payment of costs shall 
be credited to the appropriation then currently available 
to the Department of Defense for the Regional Center that 
incurred the costs. Funds so credited shall be merged with 
the appropriation to which credited and shall be available 
to that Regional Center for the same purposes and same 
period as the appropriation with which merged. 
‘‘(5) Funds available for the payment of personnel 
expenses under the Latin American cooperation authority 
set forth in section 1050 of this title are also available 
for the costs of the operation of the Center for Hemi-
spheric Defense Studies. 
‘‘(g) SUPPORT TO OTHER AGENCIES.—The Director 
of a Regional Center may enter into agreements with the 
Secretaries of the military departments, the heads of the 
Defense Agencies, and, with the concurrence of the Sec-
retary of Defense, the heads of other Federal departments 
and agencies for the provision of services by that Regional 
Center under this section. Any such participating depart-
ment and agency shall transfer to the Regional Center 
funds to pay the full costs of the services received. 
‘‘(h) ANNUAL REPORT.—Not later than February 1 
of each year, the Secretary of Defense shall submit to the 
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HR 5122 PCS 
Committee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives 
a report on the operation of the Regional Centers for secu-
rity studies during the preceding fiscal year. The annual 
report shall include, for each Regional Center, the fol-
lowing information: 
‘‘(1) The status and objectives of the center. 
‘‘(2) The budget of the center, including the 
costs of operating the center. 
‘‘(3) A description of the extent of the inter-
national participation in the programs of the center, 
including the costs incurred by the United States for 
the participation of each foreign nation. 
‘‘(4) A description of the foreign gifts and do-
nations, if any, accepted under section 2611 of this 
title.’’. 
(2) CLERICAL AMENDMENT.—The item relating 
to such section in the table of sections at the begin-
ning of chapter 7 of such title is amended to read 
as follows: 
‘‘184. Regional Centers for Security Studies.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) EMPLOYMENT
AND
COMPENSATION
AU-
THORITY FOR CIVILIAN FACULTY.—Section 1595 of 
title 10, United States Code, is amended— 
(A) in subsection (c)— 
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HR 5122 PCS 
(i) by striking paragraphs (3) and (5); 
and 
(ii) by redesignating paragraphs (4) 
and (6) as paragraphs (3) and (4), respec-
tively; and 
(B) by striking subsection (e). 
(2) STATUS OF CENTER FOR HEMISPHERIC DE-
FENSE STUDIES.—Section 2165 of title 10, United 
States Code, is amended— 
(A) in subsection (b)— 
(i) by striking paragraph (6); and 
(ii) by redesignating paragraph (7) as 
paragraph (6); and 
(B) by striking subsection (c). 
SEC. 905. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF MILITARY DEPARTMENT.— 
The military department designated as the Department of 
the Navy is redesignated as the Department of the Navy 
and Marine Corps. 
(b) REDESIGNATION
OF SECRETARY
AND OTHER 
STATUTORY OFFICES.— 
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354 
HR 5122 PCS 
(1) SECRETARY.—The position of the Secretary 
of the Navy is redesignated as the Secretary of the 
Navy and Marine Corps. 
(2) OTHER
STATUTORY
OFFICES.—The posi-
tions of the Under Secretary of the Navy, the four 
Assistant Secretaries of the Navy, and the General 
Counsel of the Department of the Navy are redesig-
nated as the Under Secretary of the Navy and Ma-
rine Corps, the Assistant Secretaries of the Navy 
and Marine Corps, and the General Counsel of the 
Department of the Navy and Marine Corps, respec-
tively. 
(c) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as 
follows: ‘‘The Department of the Navy and Marine 
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HR 5122 PCS 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking 
‘‘There is a Secretary of the Navy’’ and inserting 
‘‘There is a Secretary of the Navy and Marine 
Corps’’. 
(4) CHAPTER HEADINGS.— 
(A) The heading of chapter 503 of such 
title is amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such 
title is amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.— 
(A) Title 10, United States Code, is 
amended by striking ‘‘Department of the Navy’’ 
and ‘‘Secretary of the Navy’’ each place they 
appear other than as specified in paragraphs 
(1), (2), (3), and (4) (including in section head-
ings, subsection captions, tables of chapters, 
and tables of sections) and inserting ‘‘Depart-
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HR 5122 PCS 
ment of the Navy and Marine Corps’’ and ‘‘Sec-
retary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to 
be in the same typeface and typestyle as the 
matter stricken. 
(B)(i) 
Sections 
5013(f), 
5014(b)(2), 
5016(a), 5017(2), 5032(a), and 5042(a) of 
such title are amended by striking ‘‘Assistant 
Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended. 
(d) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘Department 
of the Navy’’ and ‘‘Secretary of the Navy’’ each place they 
appear and inserting ‘‘Department of the Navy and Ma-
rine Corps’’ and ‘‘Secretary of the Navy and Marine 
Corps’’, respectively. 
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HR 5122 PCS 
(e) OTHER REFERENCES.—Any reference in any law 
other than in title 10 or title 37, United States Code, or 
in any regulation, document, record, or other paper of the 
United States, to the Department of the Navy shall be 
considered to be a reference to the Department of the 
Navy and Marine Corps. Any such reference to an office 
specified in subsection (b)(2) shall be considered to be a 
reference to that office as redesignated by that subsection. 
(f) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act. 
Subtitle B—Space Activities 
SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS 
FOR THE DISESTABLISHED INTERAGENCY 
GLOBAL POSITIONING EXECUTIVE BOARD. 
(a) SUCCESSOR ORGANIZATIONS.—Section 8 of the 
Commercial Space Transportation Competitiveness Act of 
2000 (10 U.S.C. 2281 note) is amended by striking ‘‘by 
Congress’’ and all that follows and inserting ‘‘for the func-
tions and activities of the following organizations estab-
lished pursuant to the national security presidential direc-
tive issued December 8, 2004 (and any successor organi-
zation, to the extent the successor organization performs 
the functions of the specified organization): 
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HR 5122 PCS 
‘‘(1) The interagency committee known as the 
National Space-Based Positioning, Navigation, and 
Timing Executive Committee. 
‘‘(2) The support office for the committee speci-
fied in paragraph (1) known as the National Space- 
Based Positioning, Navigation, and Timing Coordi-
nation Office. 
‘‘(3) The Federal advisory committee known as 
the National Space-Based Positioning, Navigation, 
and Timing Advisory Board.’’. 
(b) CLARIFICATION.—Such section is further amend-
ed by striking ‘‘interagency funding’’ and inserting ‘‘multi- 
agency funding’’. 
SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM 
FOR PROVISION OF SPACE SURVEILLANCE 
NETWORK SERVICES TO NON-UNITED STATES 
GOVERNMENT ENTITIES. 
Section 2274(i) of title 10, United States Code, is 
amended by striking ‘‘shall be conducted’’ and all that fol-
lows and inserting ‘‘may be conducted through September 
30, 2009.’’. 
SEC. 913. OPERATIONALLY RESPONSIVE SPACE. 
(a) OPERATIONALLY RESPONSIVE SPACE PROGRAM 
OFFICE.— 
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359 
HR 5122 PCS 
(1) 
ESTABLISHMENT
OF
OFFICE.—Section 
2273a of title 10, United States Code, is amended 
to read as follows: 
‘‘§ 2273a. Operationally Responsive Space Program 
Office 
‘‘(a) ESTABLISHMENT
OF OFFICE.—(1) The Sec-
retary of Defense shall establish within the Department 
of Defense an office to be known as the Operationally Re-
sponsive Space Program Office. 
‘‘(2) The head of the Office shall be the official in 
the Department of Defense who is designated by the Sec-
retary of Defense as the Department of Defense Executive 
Agent for Space. 
‘‘(b) MISSION.—The mission of the Office shall be to 
contribute to the development of low-cost, rapid reaction 
payloads, spacelift, and launch control capabilities in order 
to fulfill joint military operational requirements for on-de-
mand space support or reconstitution. The Office shall 
manage the program element required under subsection 
(g). 
‘‘(c) ORGANIZATION.—The Office shall be organized 
into integrated and co-located elements that include the 
following: 
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HR 5122 PCS 
‘‘(1) A science and technology section, which 
shall perform the functions specified in subsection 
(d). 
‘‘(2) An operations section, which shall perform 
the functions specified in subsection (e). 
‘‘(3) An acquisition section, which shall perform 
the functions specified in subsection (f). 
‘‘(d) SCIENCE AND TECHNOLOGY.—As directed by 
the head of the Office, the science and technology section 
shall pursue innovative approaches to the development of 
capabilities for operationally responsive space through 
basic and applied research focused on (but not limited to) 
payloads, bus, and launch equipment. 
‘‘(e) OPERATIONS.—As directed by the head of the 
Office, the operations section shall serve as the primary 
intermediary between the Office and the combatant com-
mands in order to— 
‘‘(1) ascertain the needs of the warfighter; and 
‘‘(2) integrate operationally responsive space capabili-
ties into— 
‘‘(A) operations plans of the combatant com-
mands; 
‘‘(B) techniques, tactics, and procedures of the 
military departments; and 
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HR 5122 PCS 
‘‘(C) military exercises, demonstrations, and 
war games. 
‘‘(f) ACQUISITION.—(1) As directed by the head of 
the Office, the acquisition section shall undertake the ac-
quisition of systems necessary to integrate, sustain, and 
launch assets for operationally responsive space. 
‘‘(2) In the case of any system or subsystem to be 
acquired by the Office, the acquisition may be carried out 
only after the commander of the United States Strategic 
Command has validated the system requirements for the 
system or subsystem to be acquired. 
‘‘(3) The commander of the United States Strategic 
Command shall participate in the approval of any acquisi-
tion program initiated by the Office. 
‘‘(g) REQUIRED PROGRAM ELEMENT.—(1) The Sec-
retary of Defense shall ensure that, within budget pro-
gram elements for space programs of the Department of 
Defense— 
‘‘(A) that there is a separate, dedicated pro-
gram element for operationally responsive national 
security payloads and buses of the Department of 
Defense for space satellites; and 
‘‘(B) that programs and activities for such pay-
loads and buses are planned, programmed, and 
budgeted for through that program element. 
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HR 5122 PCS 
‘‘(2) In this subsection, the term ‘operationally re-
sponsive’, with respect to a national security payload and 
bus for a space satellite, means an experimental or oper-
ational payload and bus with a weight not in excess of 
5,000 pounds that— 
‘‘(A) can be developed and acquired within 18 
months after authority to proceed with development 
is granted; and 
‘‘(B) is responsive to requirements for capabili-
ties at the operational and tactical levels of war-
fare.’’. 
(2) CLERICAL AMENDMENT.—The item relating 
to that section in the table of sections at the begin-
ning of chapter 135 of such title is amended to read 
as follows: 
‘‘2273a. Operationally Responsive Space Program Office.’’. 
(b) 
PLAN
FOR
OPERATIONALLY
RESPONSIVE 
SPACE.— 
(1) PLAN REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
defense committees a report setting forth a plan for 
the acquisition by the Department of Defense of ca-
pabilities for operationally responsive space to sup-
port the warfighter. 
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(2) ELEMENTS.—The plan required by para-
graph (1) shall include the following: 
(A) An identification of the capabilities re-
quired by the Department to fulfill the mission 
of the Department with respect to operationally 
responsive space. 
(B) An identification of the roles and mis-
sions of each military department, Defense 
Agency, and other component or element of the 
Department of Defense for the fulfillment of 
the mission of the Department with respect to 
operationally responsive space. 
(C) A description of the chain of command 
and reporting structure of the Operationally 
Responsive Space Program Office established 
under section 2273a of title 10, United States 
Code, as amended by subsection (a). 
(D) A description of the classification of 
information required for that Office in order to 
ensure that the Office carries out its respon-
sibilities in a proper and efficient manner. 
(E) A description of the acquisition policies 
and procedures applicable to that Office, includ-
ing a description of any legislative or adminis-
trative action necessary to provide the Office 
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HR 5122 PCS 
additional acquisition authority to carry out its 
responsibilities. 
(F) A complete schedule for the implemen-
tation of the plan. 
(G) The funding required to implement the 
plan over the course of the future-years defense 
program under section 221 of title 10, United 
States Code, in effect as of the submission of 
the plan. 
(3) DEFINITION.—In this subsection, the term 
‘‘operationally responsive space’’ means the develop-
ment and launch of space assets upon demand in a 
low-cost manner. 
Subtitle C—Chemical 
Demilitarization Program 
SEC. 921. TRANSFER TO SECRETARY OF THE ARMY OF RE-
SPONSIBILITY FOR ASSEMBLED CHEMICAL 
WEAPONS ALTERNATIVES PROGRAM. 
Effective January 1, 2007, the text of section 142 
of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 
1521 note) is amended to read as follows: 
‘‘(a) PROGRAM MANAGEMENT.—(1) The program 
manager for the Assembled Chemical Weapons Alter-
natives program shall report to the Secretary of the Army. 
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HR 5122 PCS 
‘‘(2) The Secretary of the Army shall provide for that 
program to be managed as part of the management orga-
nization within the Department of the Army specified in 
section 1412(e) of Public Law 99–145 (50 U.S.C. 
1521(e)). 
‘‘(b) CONTINUED IMPLEMENTATION OF PREVIOUSLY 
SELECTED ALTERNATIVE TECHNOLOGIES.—(1) In car-
rying out the destruction of lethal chemical munitions at 
Pueblo Chemical Depot, Colorado, the Secretary of the 
Army shall continue to implement fully the alternative 
technology for such destruction at that depot selected by 
the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics on July 16, 2002. 
‘‘(2) In carrying out the destruction of lethal chem-
ical munitions at Blue Grass Army Depot, Kentucky, the 
Secretary of the Army shall continue to implement fully 
the alternative technology for such destruction at that 
depot selected by the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics on February 3, 
2003.’’. 
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