H. R. 1588—138
Code, for Reserves who are alerted by the Department
of Defense to prepare to be mobilized imminently.
(6) An examination of the existing programs under which
the Department of Defense provides health care benefits to
mobilized Reserves during a transitional period immediately
following the release of the Reserves from the active duty
for which mobilized, including an assessment of the extent
to which those programs meet the needs of such Reserves
for health care benefits on a transitional basis.
(d) REPORT.—Not later than May 1, 2004, the Comptroller
General shall submit to the Committees on Armed Services of
the Senate and the House of Representatives a report on the results
of the evaluation required by this subsection, including findings
and recommendations.
(e) DEFINITIONS.—In this section:
(1) The term ‘‘mobilized’’ means called or ordered to active
duty for a period of more than 30 days (as defined in section
101(d)(2) of title 10, United States Code).
(2) The term ‘‘Reserves’’ means members of the reserve
components of the Armed Forces.
SEC. 706. LIMITATION ON FISCAL YEAR 2004 OUTLAYS FOR TEM-
PORARY RESERVE HEALTH CARE PROGRAMS.
(a) OUTLAY LIMITATION.—In the administration of the tem-
porary Reserve health care programs, the Secretary of Defense
shall carry out those program so as to limit the total Department
of Defense expenditures under those programs during fiscal year
2004 to an amount not in excess $400,000,000.
(b) CONTINUITY OF CARE.—In the administration of the tem-
porary Reserve health care programs, the Secretary of Defense
shall carry out the implementation and termination of those pro-
grams so as to ensure the least amount of disruption to the con-
tinuity of care for persons provided care under those programs.
(c) TEMPORARY RESERVE HEALTH CARE PROGRAMS.—For pur-
poses of this section, the term ‘‘temporary Reserve health care
programs’’ means the following:
(1) The program under section 1076b of title 10, United
States Code, as amended by section 702.
(2) The program under section 1074(d) of title 10, United
States Code, as amended by section 703.
(3) The program under section 704.
SEC. 707. TRICARE BENEFICIARY COUNSELING AND ASSISTANCE
COORDINATORS 
FOR 
RESERVE 
COMPONENT 
BENE-
FICIARIES.
Section 1095e(a)(1) of title 10, United States Code, is
amended—
(1) by striking ‘‘and’’ at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph
(C); and
(3) by inserting after subparagraph (A) the following new
subparagraph (B):
‘‘(B) designate for each of the TRICARE program
regions at least one person (other than a person designated
under subparagraph (A)) to serve full-time as a beneficiary
counseling and assistance coordinator solely for members
of the reserve components and their dependents who are
beneficiaries under the TRICARE program; and’’.
H. R. 1588—139
SEC. 708. ELIGIBILITY OF RESERVE OFFICERS FOR HEALTH CARE
PENDING 
ORDERS 
TO 
ACTIVE 
DUTY 
FOLLOWING
COMMISSIONING.
Section 1074(a) of title 10, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by striking ‘‘who is on active duty’’ and inserting
‘‘described in paragraph (2)’’; and
(3) by adding at the end the following new paragraph:
‘‘(2) Members of the uniformed services referred to in paragraph
(1) are as follows:
‘‘(A) A member of a uniformed service on active duty.
‘‘(B) A member of a reserve component of a uniformed
service who has been commissioned as an officer if—
‘‘(i) the member has requested orders to active duty
for the member’s initial period of active duty following
the commissioning of the member as an officer;
‘‘(ii) the request for orders has been approved;
‘‘(iii) the orders are to be issued but have not been
issued; and
‘‘(iv) the member does not have health care insurance
and is not covered by any other health benefits plan.’’.
Subtitle B—Other Benefits Improvements
SEC. 711. ACCELERATION OF IMPLEMENTATION OF CHIROPRACTIC
HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.
The Secretary of Defense shall accelerate the implementation
of the plan required by section 702 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (Public Law 106–
398; 114 Stat. 1654A–173) (relating to chiropractic health care
services and benefits), with a goal of completing implementation
of the plan by October 1, 2005.
SEC. 712. REIMBURSEMENT OF COVERED BENEFICIARIES FOR CER-
TAIN TRAVEL EXPENSES RELATING TO SPECIALIZED
DENTAL CARE.
Section 1074i of title 10, United States Code, is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘In any case’’;
and
(2) by adding at the end the following new subsection:
‘‘(b) DEFINITIONS.—In this section:
‘‘(1) The term ‘specialty care provider’ includes a dental
specialist.
‘‘(2) The term ‘dental specialist’ means an oral surgeon,
orthodontist, prosthodontist, periodontist, endodontist, or pedi-
atric dentist, and includes such other providers of dental care
and services as determined appropriate by the Secretary of
Defense.’’.
SEC. 713. ELIGIBILITY FOR CONTINUED HEALTH BENEFITS COVERAGE
EXTENDED TO CERTAIN MEMBERS OF UNIFORMED SERV-
ICES.
(a) EXTENSION.—Section 1078a(b) of title 10, United States
Code, is amended in paragraphs (1), (2)(A), and (3)(A) by striking
‘‘armed forces’’ and inserting ‘‘uniformed services’’ each place it
appears.
H. R. 1588—140
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to members of the uniformed services who are
not otherwise covered by section 1078a of title 10, United States
Code, before the date of the enactment of this Act and who, on
or after such date, first meet the eligibility criteria specified in
subsection (b) of that section.
SEC. 714. AUTHORITY FOR DESIGNATED PROVIDERS TO ENROLL COV-
ERED BENEFICIARIES WITH OTHER PRIMARY HEALTH
INSURANCE COVERAGE.
Subsection (d) of section 724 of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C.
1073 note) is amended to read as follows:
‘‘(d) ADDITIONAL ENROLLMENT AUTHORITY.—(1) Subject to para-
graph (2), other covered beneficiaries may also receive health care
services from a designated provider.
‘‘(2)(A) The designated provider may market such services to,
and enroll, covered beneficiaries who—
‘‘(i) subject to the limitation in subparagraph (B), have
other primary health insurance coverage (other than Medicare
coverage) covering basic primary care and inpatient and out-
patient services; or
‘‘(ii) are enrolled in the direct care system under the
TRICARE program, regardless of whether the covered bene-
ficiaries were users of the health care delivery system of the
uniformed services in prior years.
‘‘(B) For each fiscal year beginning after September 30, 2003,
the number of covered beneficiaries who are newly enrolled by
a designated provider pursuant to subparagraph (A)(i) may not
exceed 10 percent of the excess (if any) of—
‘‘(i) the number of enrollees in managed care plans offered
by designated providers as of the first day of such fiscal year;
over
‘‘(ii) the number of such enrollees as of the first day of
the immediately preceding fiscal year.
‘‘(3) For purposes of this subsection, a covered beneficiary who
has other primary health insurance coverage includes any covered
beneficiary who has primary health insurance coverage—
‘‘(A) on the date of enrollment with a designated provider
pursuant to paragraph (2)(A)(i); or
‘‘(B) on such date of enrollment and during the period
after such date while the beneficiary is enrolled with the des-
ignated provider.’’.
Subtitle C—Planning, Programming, and
Management
SEC. 721. PERMANENT EXTENSION OF AUTHORITY TO ENTER INTO
PERSONAL SERVICES CONTRACTS FOR THE PERFORM-
ANCE OF HEALTH CARE RESPONSIBILITIES AT LOCA-
TIONS OTHER THAN MILITARY MEDICAL TREATMENT
FACILITIES.
Section 1091(a)(2) of title 10, United States Code, is amended
by striking ‘‘The Secretary may not enter into a contract under
this paragraph after December 31, 2003.’’.
H. R. 1588—141
SEC. 722. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE
HEALTH CARE FUND VALUATIONS AND CONTRIBUTIONS.
(a) SEPARATE PERIODIC ACTUARIAL VALUATION FOR SINGLE UNI-
FORMED SERVICE.—Section 1115(c) of title 10, United States Code,
is amended by adding at the end of paragraph (1) the following:
‘‘The Secretary of Defense may determine a separate single level
dollar amount under subparagraph (A) or (B) for any participating
uniformed service, if, in the judgment of the Secretary, such a
determination would produce a more accurate and appropriate actu-
arial valuation for that uniformed service.’’.
(b) ASSOCIATED CALCULATIONS OF PAYMENTS INTO THE FUND.—
Section 1116 of such title is amended—
(1) in subsection (a), by striking ‘‘the amount that’’ in
the matter preceding paragraph (1) and inserting ‘‘the amount
that, subject to subsection (b),’’;
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(3) by inserting after subsection (a) the following new sub-
section (b):
‘‘(b) If an actuarial valuation referred to in paragraph (1) or
(2) of subsection (a) has been calculated as a separate single level
dollar amount for a participating uniformed service under section
1115(c)(1) of this title, the administering Secretary for the depart-
ment in which such uniformed service is operating shall calculate
the amount under such paragraph separately for such uniformed
service. If the administering Secretary is not the Secretary of
Defense, the administering Secretary shall notify the Secretary
of Defense of the amount so calculated. To determine a single
amount for the purpose of paragraph (1) or (2) of subsection (a),
as the case may be, the Secretary of Defense shall aggregate the
amount calculated under this subsection for a uniformed service
for the purpose of such paragraph with the amount or amounts
calculated (whether separately or otherwise) for the other uniformed
services for the purpose of such paragraph.’’.
(c) CONFORMING AMENDMENT.—Subsections (a) and (c)(5) of
section 1115 of such title are amended by striking ‘‘section 1116(b)
of this title’’ and inserting ‘‘section 1116(c) of this title’’.
SEC. 723. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD.
(a) REQUIREMENT FOR SURVEYS.—(1) The Secretary of Defense
shall conduct surveys in the TRICARE market areas in the United
States to determine how many health care providers are accepting
new patients under TRICARE Standard in each such market area.
(2) The Secretary shall carry out the surveys in at least 20
TRICARE market areas in the United States each fiscal year after
fiscal year 2003 until all such market areas in the United States
have been surveyed. The Secretary shall complete six of the fiscal
year 2004 surveys not later than March 31, 2004.
(3) In prioritizing the market areas for the sequence in which
market areas are to be surveyed under this subsection, the Sec-
retary shall consult with representatives of TRICARE beneficiaries
and health care providers to identify locations where TRICARE
Standard beneficiaries are experiencing significant levels of access-
to-care problems under TRICARE Standard and shall give a high
priority to surveying health care providers in such areas.
(b) SUPERVISION.—(1) The Secretary shall designate a senior
official of the Department of Defense to take the actions necessary
H. R. 1588—142
for achieving and maintaining participation of health care providers
in TRICARE Standard in each TRICARE market area in a number
that is adequate to ensure the viability of TRICARE Standard
for TRICARE beneficiaries in that market area.
(2) The official designated under paragraph (1) shall have the
following duties:
(A) To educate health care providers about TRICARE
Standard.
(B) To encourage health care providers to accept patients
under TRICARE Standard.
(C) To ensure that TRICARE beneficiaries have the
information necessary to locate TRICARE Standard providers
readily.
(D) To recommend adjustments in TRICARE Standard pro-
vider payment rates that the official considers necessary to
ensure adequate availability of TRICARE Standard providers
for TRICARE Standard beneficiaries.
(c) GAO REVIEW.—(1) The Comptroller General shall, on an
ongoing basis, review—
(A) the processes, procedures, and analysis used by the
Department of Defense to determine the adequacy of the
number of health care providers—
(i) that currently accept TRICARE Standard bene-
ficiaries as patients under TRICARE Standard in each
TRICARE market area (as of the date of completion of
the review); and
(ii) that would accept TRICARE Standard beneficiaries
as new patients under TRICARE Standard in each
TRICARE market area (within a reasonable time after
the date of completion of the review); and
(B) the actions taken by the Department of Defense to
ensure ready access of TRICARE Standard beneficiaries to
health care under TRICARE Standard in each TRICARE
market area.
(2)(A) The Comptroller General shall submit to the Committees
on Armed Services of the Senate and the House of Representatives
a semiannual report on the results of the review under paragraph
(1). The first semiannual report shall be submitted not later than
June 30, 2004.
(B) The semiannual report under subparagraph (A) shall
include the following:
(i) An analysis of the adequacy of the surveys under sub-
section (a).
(ii) The adequacy of existing statutory authority to address
inadequate levels of participation by health care providers in
TRICARE Standard.
(iii) Identification of policy-based obstacles to achieving
adequacy of availability of TRICARE Standard health care
in the TRICARE market areas.
(iv) An assessment of the adequacy of Department of
Defense education programs to inform health care providers
about TRICARE Standard.
(v) An assessment of the adequacy of Department of
Defense initiatives to encourage health care providers to accept
patients under TRICARE Standard.
H. R. 1588—143
(vi) An assessment of the adequacy of information available
to TRICARE Standard beneficiaries to facilitate access by such
beneficiaries to health care under TRICARE Standard.
(vii) Any need for adjustment of health care provider pay-
ment rates to attract participation in TRICARE Standard by
appropriate numbers of health care providers.
(d) DEFINITIONS.—In this section:
(1) The term ‘‘TRICARE Standard’’ means the option of
the TRICARE program that is also known as the Civilian
Health and Medical Program of the Uniformed Services, as
defined in section 1072(4) of title 10, United States Code.
(2) The term ‘‘United States’’ means the United States
(as defined in section 101(a) of title 10, United States Code),
its possessions (as defined in such section), and the Common-
wealth of Puerto Rico.
SEC. 724. PLAN FOR PROVIDING HEALTH COVERAGE INFORMATION
TO MEMBERS, FORMER MEMBERS, AND DEPENDENTS
ELIGIBLE FOR CERTAIN HEALTH BENEFITS.
(a) HEALTH INFORMATION PLAN REQUIRED.—The Secretary of
Defense shall develop a plan to—
(1) ensure that each household that includes one or more
eligible persons is provided information concerning—
(A) the extent of health coverage provided by sections
1079 or 1086 of title 10, United States Code, for each
such person;
(B) the costs, including the limits on such costs, that
each such person is required to pay for such health cov-
erage;
(C) sources of information for locating TRICARE-
authorized providers in the household’s locality; and
(D) methods to obtain assistance in resolving difficul-
ties encountered with billing, payments, eligibility, locating
TRICARE-authorized providers, collection actions, and such
other issues as the Secretary considers appropriate;
(2) provide mechanisms to ensure that each eligible person
has access to information identifying TRICARE-authorized pro-
viders in the person’s locality who have agreed to accept new
patients under section 1079 or 1086 of title 10, United States
Code, and to ensure that such information is periodically
updated;
(3) provide mechanisms to ensure that each eligible person
who requests assistance in locating a TRICARE-authorized pro-
vider is provided such assistance;
(4) provide information and recruitment materials and pro-
grams aimed at attracting participation of health care providers
as necessary to meet health care access requirements for all
eligible persons; and
(5) provide mechanisms to allow for the periodic identifica-
tion by the Department of Defense of the number and locality
of eligible persons who may intend to rely on TRICARE-author-
ized providers for health care services.
(b) IMPLEMENTATION OF PLAN.—The Secretary of Defense shall
implement the plan required by subsection (a) with respect to
any contract entered into by the Department of Defense after May
31, 2003, for managed health care.
(c) DEFINITIONS.—In this section:
H. R. 1588—144
(1) The term ‘‘eligible person’’ means a person eligible for
health benefits under section 1079 or 1086 of title 10, United
States Code.
(2) The term ‘‘TRICARE-authorized provider’’ means a
facility, doctor, or other provider of health care services—
(A) that meets the licensing and credentialing certifi-
cation requirements in the State where the services are
rendered;
(B) that meets requirements under regulations relating
to TRICARE for the type of health care services rendered;
and
(C) that has accepted reimbursement by the Secretary
of Defense as payment for services rendered during the
12-month period preceding the date of the most recently
updated provider information provided to households under
the plan required by subsection (a).
(d) SUBMISSION
OF PLAN.—Not later than March 31, 2004,
the Secretary shall submit to the Committees on Armed Services
of the Senate and House of Representatives the plan required
by subsection (a), together with a schedule for implementation
of the plan.
SEC. 725. TRANSFER OF CERTAIN MEMBERS OF THE PHARMACY AND
THERAPEUTICS COMMITTEE TO THE UNIFORM FOR-
MULARY BENEFICIARY ADVISORY PANEL UNDER THE
PHARMACY BENEFITS PROGRAM.
Section 1074g of title 10, United States Code, is amended—
(1) in subsection (b)(1) in the second sentence, by striking
‘‘facilities,’’ and all that follows through the end of the sentence
and inserting ‘‘facilities and representatives of providers in
facilities of the uniformed services.’’; and
(2) in subsection (c)(2)—
(A) by striking ‘‘represent nongovernmental’’ and
inserting the following: ‘‘represent—
‘‘(A) nongovernmental’’;
(B) by striking the period at the end and inserting
a semicolon; and
(C) by adding at the end the following new subpara-
graphs:
‘‘(B) contractors responsible for the TRICARE retail phar-
macy program;
‘‘(C) contractors responsible for the national mail-order
pharmacy program; and
‘‘(D) TRICARE network providers.’’.
SEC. 726. WORKING GROUP ON MILITARY HEALTH CARE FOR PERSONS
RELIANT ON HEALTH CARE FACILITIES AT MILITARY
INSTALLATIONS TO BE CLOSED OR REALIGNED.
(a) IN
GENERAL.—Section 722 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102–484; 10
U.S.C. 1073 note) is amended by striking subsections (a), (b), (c),
and (d) and inserting the following new subsections:
‘‘(a) ESTABLISHMENT.—Not later than December 31, 2003, the
Secretary of Defense shall establish a working group on the provi-
sion of military health care to persons who rely for health care
on health care facilities located at military installations—
‘‘(1) inside the United States that are selected for closure
or realignment in the 2005 round of realignments and closures
H. R. 1588—145
authorized by sections 2912, 2913, and 2914 of the Defense
Base Closure and Realignment Act of 1990 (part A of title
XXIX of Public Law 101–510; 10 U.S.C. 2687 note), as added
by title XXX of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107–107; 155 Stat. 1342); or
‘‘(2) outside the United States that are selected for closure
or realignment as a result of force posture changes.
‘‘(b) MEMBERSHIP.—The members of the working group shall
include, at a minimum, the following:
‘‘(1) The Assistant Secretary of Defense for Health Affairs,
or a designee of the Assistant Secretary.
‘‘(2) The Surgeon General of the Army, or a designee of
that Surgeon General.
‘‘(3) The Surgeon General of the Navy, or a designee of
that Surgeon General.
‘‘(4) The Surgeon General of the Air Force, or a designee
of that Surgeon General.
‘‘(5) At least one independent member (appointed by the
Secretary of Defense) from each TRICARE region, but not to
exceed a total of 12 members appointed under this paragraph,
whose experience in matters within the responsibility of the
working group qualify that person to represent persons author-
ized health care under chapter 55 of title 10, United States
Code.
‘‘(c) DUTIES.—(1) In developing the recommendations for the
2005 round of realignments and closures required by sections 2913
and 2914 of the Defense Base Closure and Realignment Act of
1990, the Secretary of Defense shall consult with the working
group.
‘‘(2) The working group shall be available to provide assistance
to the Defense Base Closure and Realignment Commission.
‘‘(3) In the case of each military installation referred to in
paragraph (1) or (2) of subsection (a) whose closure or realignment
will affect the accessibility to health care services for persons enti-
tled to such services under chapter 55 of title 10, United States
Code, the working group shall provide to the Secretary of Defense
a plan for the provision of the health care services to such persons.
‘‘(d) SPECIAL CONSIDERATIONS.—In carrying out its duties under
subsection (c), the working group—
‘‘(1) shall conduct meetings with persons entitled to health
care services under chapter 55 of title 10, United States Code,
or representatives of such persons;
‘‘(2) may use reliable sampling techniques;
‘‘(3) may visit the areas where closures or realignments
of military installations will adversely affect the accessibility
of health care for such persons and may conduct public
meetings; and
‘‘(4) shall ensure that members of the uniformed services
on active duty, members and former members of the uniformed
services entitled to retired or retainer pay, and dependents
and survivors of such members and retired personnel are
afforded the opportunity to express their views.’’.
(b) TERMINATION.—Section 722 of such Act is further amended
by adding at the end the following new subsection:
‘‘(f) TERMINATION.—The working group established pursuant
to subsection (a) shall terminate on December 31, 2006.’’.
H. R. 1588—146
(c) CONFORMING AMENDMENT.—Subsection (e) of such section
is amended by striking ‘‘joint services’’.
SEC. 727. JOINT PROGRAM FOR DEVELOPMENT AND EVALUATION OF
INTEGRATED HEALING CARE PRACTICES FOR MEMBERS
OF THE ARMED FORCES AND VETERANS.
(a) PROGRAM.—The Secretary of Defense and the Secretary
of Veterans Affairs may conduct a program to develop and evaluate
integrated healing care practices for members of the Armed Forces
and veterans. Any such program shall be carried out through the
Department of Veterans Affairs-Department of Defense Joint Execu-
tive Committee established under section 320 of title 38, United
States Code.
(b) SOURCE OF DOD FUNDS.—Amounts authorized to be appro-
priated by this Act for the Defense Health Program may be used
for the program under subsection (a).
TITLE VIII—AQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS
Subtitle A—Acquisition Policy and Management
Sec. 801. Consolidation of contract requirements.
Sec. 802. Quality control in procurement of aviation critical safety items and related
services.
Sec. 803. Federal support for enhancement of State and local anti-terrorism re-
sponse capabilities.
Sec. 804. Special temporary contract closeout authority.
Sec. 805. Competitive award of contracts for reconstruction activities in Iraq.
Subtitle B—United States Defense Industrial Base Provisions
PART I—ESSENTIAL ITEMS IDENTIFICATION AND DOMESTIC PRODUCTION CAPABILITIES
IMPROVEMENT PROGRAM
Sec. 811. Consistency with United States obligations under international agree-
ments.
Sec. 812. Assessment of United States defense industrial base capabilities.
Sec. 813. Identification of essential items: military system breakout list.
Sec. 814. Production capabilities improvement for certain essential items using de-
fense industrial base capabilities fund.
PART II—REQUIREMENTS RELATING TO SPECIFIC ITEMS
Sec. 821. Elimination of unreliable sources of defense items and components.
Sec. 822. Incentive program for major defense acquisition programs to use machine
tools and other capital assets produced within the United States.
Sec. 823. Technical assistance relating to machine tools.
Sec. 824. Study of beryllium industrial base.
PART III—OTHER DOMESTIC SOURCE REQUIREMENTS
Sec. 826. Exceptions to Berry amendment for contingency operations and other ur-
gent situations.
Sec. 827. Inapplicability of Berry amendment to procurements of waste and byprod-
ucts of cotton and wool fiber for use in the production of propellants and
explosives.
Sec. 828. Buy American exception for ball bearings and roller bearings used in for-
eign products.
Subtitle C—Defense Acquisition and Support Workforce Flexibility
Sec. 831. Management structure.
Sec. 832. Elimination of role of Office of Personnel Management.
Sec. 833. Single acquisition corps.
Sec. 834. Consolidation of certain education and training program requirements.
Sec. 835. General management provisions.
H. R. 1588—147
Sec. 836. Clerical amendments.
Subtitle D—Amendments to General Contracting Authorities, Procedures,
and Limitations
Sec. 841. Additional authority to enter into personal services contracts.
Sec. 842. Elimination of certain subcontract notification requirements.
Sec. 843. Multiyear task and delivery order contracts.
Sec. 844. Elimination of requirement to furnish written assurances of technical
data conformity.
Sec. 845. Access to information relevant to items deployed under rapid acquisition
and deployment procedures.
Sec. 846. Applicability of requirement for reports on maturity of technology at initi-
ation of major defense acquisition programs.
Sec. 847. Certain weapons-related prototype projects.
Sec. 848. Limited acquisition authority for commander of United States Joint
Forces Command.
Subtitle E—Acquisition-Related Reports and Other Matters
Sec. 851. Report on contract payments to small businesses.
Sec. 852. Contracting with employers of persons with disabilities.
Sec. 853. Demonstration project for contractors employing persons with disabilities.
Subtitle A—Acquisition Policy and
Management
SEC. 801. CONSOLIDATION OF CONTRACT REQUIREMENTS.
(a) AMENDMENT
TO TITLE 10.—(1) Chapter 141 of title 10,
United States Code, is amended by inserting after section 2381
the following new section:
‘‘§ 2382. Consolidation of contract requirements: policy and
restrictions
‘‘(a) POLICY.—The Secretary of Defense shall require the Sec-
retary of each military department, the head of each Defense
Agency, and the head of each Department of Defense Field Activity
to ensure that the decisions made by that official regarding consoli-
dation of contract requirements of the department, agency, or field
activity, as the case may be, are made with a view to providing
small business concerns with appropriate opportunities to partici-
pate in Department of Defense procurements as prime contractors
and appropriate opportunities to participate in such procurements
as subcontractors.
‘‘(b) LIMITATION ON USE OF ACQUISITION STRATEGIES INVOLVING
CONSOLIDATION.—(1) An official of a military department, Defense
Agency, or Department of Defense Field Activity may not execute
an acquisition strategy that includes a consolidation of contract
requirements of the military department, agency, or activity with
a total value in excess of $5,000,000, unless the senior procurement
executive concerned first—
‘‘(A) conducts market research;
‘‘(B) identifies any alternative contracting approaches that
would involve a lesser degree of consolidation of contract
requirements; and
‘‘(C) determines that the consolidation is necessary and
justified.
‘‘(2) A senior procurement executive may determine that an
acquisition strategy involving a consolidation of contract require-
ments is necessary and justified for the purposes of paragraph
(1) if the benefits of the acquisition strategy substantially exceed
H. R. 1588—148
the benefits of each of the possible alternative contracting
approaches identified under subparagraph (B) of that paragraph.
However, savings in administrative or personnel costs alone do
not constitute, for such purposes, a sufficient justification for a
consolidation of contract requirements in a procurement unless
the total amount of the cost savings is expected to be substantial
in relation to the total cost of the procurement.
‘‘(3) Benefits considered for the purposes of paragraphs (1)
and (2) may include cost and, regardless of whether quantifiable
in dollar amounts—
‘‘(A) quality;
‘‘(B) acquisition cycle;
‘‘(C) terms and conditions; and
‘‘(D) any other benefit.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The terms ‘consolidation of contract requirements’ and
‘consolidation’, with respect to contract requirements of a mili-
tary department, Defense Agency, or Department of Defense
Field Activity, mean a use of a solicitation to obtain offers
for a single contract or a multiple award contract to satisfy
two or more requirements of that department, agency, or
activity for goods or services that have previously been provided
to, or performed for, that department, agency, or activity under
two or more separate contracts smaller in cost than the total
cost of the contract for which the offers are solicited.
‘‘(2) The term ‘multiple award contract’ means—
‘‘(A) a contract that is entered into by the Adminis-
trator of General Services under the multiple award
schedule program referred to in section 2302(2)(C) of this
title;
‘‘(B) a multiple award task order contract or delivery
order contract that is entered into under the authority
of sections 2304a through 2304d of this title or sections
303H through 303K of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 253h through 253k);
and
‘‘(C) any other indeterminate delivery, indeterminate
quantity contract that is entered into by the head of a
Federal agency with two or more sources pursuant to the
same solicitation.
‘‘(3) The term ‘senior procurement executive concerned’
means—
‘‘(A) with respect to a military department, the official
designated under section 16(3) of the Office of Federal
Procurement Policy Act (41 U.S.C. 414(3)) as the senior
procurement executive for the military department; or
‘‘(B) with respect to a Defense Agency or a Department
of Defense Field Activity, the official so designated for
the Department of Defense.
‘‘(4) The term ‘small business concern’ means a business
concern that is determined by the Administrator of the Small
Business Administration to be a small-business concern by
application of the standards prescribed under section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).’’.
H. R. 1588—149
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2381
the following new item:
‘‘2382. Consolidation of contract requirements: policy and restrictions.’’.
(b) DATA REVIEW.—(1) The Secretary of Defense shall revise
the data collection systems of the Department of Defense to ensure
that such systems are capable of identifying each procurement
that involves a consolidation of contract requirements within the
department with a total value in excess of $5,000,000.
(2) The Secretary shall ensure that appropriate officials of
the Department of Defense periodically review the information col-
lected pursuant to paragraph (1) in cooperation with the Small
Business Administration—
(A) to determine the extent of the consolidation of contract
requirements in the Department of Defense; and
(B) to assess the impact of the consolidation of contract
requirements on the availability of opportunities for small busi-
ness concerns to participate in Department of Defense procure-
ments, both as prime contractors and as subcontractors.
(3) In this subsection:
(A) The term ‘‘consolidation of contract requirements’’ has
the meaning given that term in section 2382(c)(1) of title 10,
United States Code, as added by subsection (a).
(B) The term ‘‘small business concern’’ means a business
concern that is determined by the Administrator of the Small
Business Administration to be a small-business concern by
application of the standards prescribed under section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).
(c) APPLICABILITY.—This section applies with respect to procure-
ments for which solicitations are issued after the date occurring
180 days after the date of the enactment of this Act.
SEC. 802. QUALITY CONTROL IN PROCUREMENT OF AVIATION CRIT-
ICAL SAFETY ITEMS AND RELATED SERVICES.
(a) QUALITY CONTROL POLICY.—The Secretary of Defense shall
prescribe in regulations a quality control policy for the procurement
of aviation critical safety items and the procurement of modifica-
tions, repair, and overhaul of such items.
(b) CONTENT
OF REGULATIONS.—The policy set forth in the
regulations shall include the following requirements:
(1) That the head of the design control activity for aviation
critical safety items establish processes to identify and manage
the procurement, modification, repair, and overhaul of aviation
critical safety items.
(2) That the head of the contracting activity for an aviation
critical safety item enter into a contract for the procurement,
modification, repair, or overhaul of such item only with a source
approved by the design control activity in accordance with
section 2319 of title 10, United States Code.
(3) That the aviation critical safety items delivered, and
the services performed with respect to aviation critical safety
items, meet all technical and quality requirements specified
by the design control activity.
(c) DEFINITIONS.—In this section, the terms ‘‘aviation critical
safety item’’ and ‘‘design control activity’’ have the meanings given
H. R. 1588—150
such terms in section 2319(g) of title 10, United States Code,
as amended by subsection (d).
(d) CONFORMING AMENDMENT TO TITLE 10.—Section 2319 of
title 10, United States Code, is amended—
(1) in subsection (c)(3), by inserting after ‘‘the contracting
officer’’ the following: ‘‘(or, in the case of a contract for the
procurement of an aviation critical safety item, the head of
the design control activity for such item)’’; and
(2) by adding at the end the following new subsection:
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) The term ‘aviation critical safety item’ means a part,
an assembly, installation equipment, launch equipment,
recovery equipment, or support equipment for an aircraft or
aviation weapon system if the part, assembly, or equipment
contains a characteristic any failure, malfunction, or absence
of which could cause a catastrophic or critical failure resulting
in the loss of or serious damage to the aircraft or weapon
system, an unacceptable risk of personal injury or loss of life,
or an uncommanded engine shutdown that jeopardizes safety.
‘‘(2) The term ‘design control activity’, with respect to an
aviation critical safety item, means the systems command of
a military department that is specifically responsible for
ensuring the airworthiness of an aviation system or equipment
in which the item is to be used.’’.
SEC. 803. FEDERAL SUPPORT FOR ENHANCEMENT OF STATE AND
LOCAL ANTI-TERRORISM RESPONSE CAPABILITIES.
(a) PROCUREMENTS
OF ANTI-TERRORISM TECHNOLOGIES
AND
SERVICES BY STATE AND LOCAL GOVERNMENTS.—The Administrator
for Federal Procurement Policy shall establish a program under
which States and units of local government may procure through
contracts entered into by the Department of Defense or the Depart-
ment of Homeland Security anti-terrorism technologies or anti-
terrorism services for the purpose of preventing, detecting, identi-
fying, deterring, or recovering from acts of terrorism.
(b) AUTHORITIES.—Under the program, the Secretary of Defense
and the Secretary of Homeland Security may, but shall not be
required to, award contracts using the procedures established by
the Administrator of General Services for the multiple awards
schedule program of the General Services Administration.
(c) DEFINITION.—In this section, the term ‘‘State or local govern-
ment’’ has the meaning provided in section 502(c)(3) of title 40,
United States Code.
SEC. 804. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.
(a) AUTHORITY.—The Secretary of Defense may settle any finan-
cial account for a contract entered into by the Secretary or the
Secretary of a military department before October 1, 1996, that
is administratively complete if the financial account has an
unreconciled balance, either positive or negative, that is less than
$100,000.
(b) FINALITY OF DECISION.—A settlement under this section
shall be final and conclusive upon the accounting officers of the
United States.
(c) REGULATIONS.—The Secretary of Defense shall prescribe
regulations for the administration of the authority under this sec-
tion.
H. R. 1588—151
(d) TERMINATION OF AUTHORITY.—A financial account may not
be settled under this section after September 30, 2006.
SEC. 805. COMPETITIVE AWARD OF CONTRACTS FOR RECONSTRUC-
TION ACTIVITIES IN IRAQ.
(a) COMPETITIVE AWARD OF CONTRACTS.—The Department of
Defense shall fully comply with chapter 137 of title 10, United
States Code, and other applicable procurement laws and regulations
for any contract awarded for reconstruction activities in Iraq, and
shall conduct a full and open competition for performing work
needed for the reconstruction of the Iraqi oil industry.
(b) REPORT.—If the Department of Defense does not have a
fully competitive contract in place to replace the March 8, 2003,
contract for the reconstruction of the Iraqi oil industry on the
date of the enactment of this Act, the Secretary of Defense shall
submit to Congress, not later than 30 days after such date of
enactment, a report detailing the reasons for allowing the March
8, 2003, contract to continue.
Subtitle B—United States Defense
Industrial Base Provisions
Part I—Essential Items Identification and Domes-
tic Production Capabilities Improvement Pro-
gram
SEC. 811. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER
INTERNATIONAL AGREEMENTS.
No provision of this subtitle or any amendment made by this
subtitle shall apply to the extent the Secretary of Defense, in
consultation with the Secretary of Commerce, the United States
Trade Representative, and the Secretary of State, determines that
it is inconsistent with United States obligations under an inter-
national agreement.
SEC. 812. ASSESSMENT OF UNITED STATES DEFENSE INDUSTRIAL
BASE CAPABILITIES.
(a) ASSESSMENT PROGRAM.—(1) The Secretary of Defense shall
establish a program to assess—
(A) the degree to which the United States is dependent
on foreign sources of supply; and
(B) the capabilities of the United States defense industrial
base to produce military systems necessary to support the
national security objectives set forth in section 2501 of title
10, United States Code.
(2) For purposes of the assessment program, the Secretary
shall use existing data, as required under subsection (b), and submit
an annual report, as required under subsection (c).
(b) USE OF EXISTING DATA.—(1) At a minimum, with respect
to each prime contract with a value greater than $25,000 for the
procurement of defense items and components, the following
information from existing sources shall be used for purposes of
the assessment program:
(A) Whether the contractor is a United States or foreign
contractor.
H. R. 1588—152
(B) The principal place of business of the contractor and
the principal place of performance of the contract.
(C) Whether the contract was awarded on a sole source
basis or after receipt of competitive offers.
(D) The dollar value of the contract.
(2) The Federal Procurement Data System described in section
6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C.
405(d)(4)(A)), or any successor system, shall collect from contracts
described in paragraph (1) the information specified in that para-
graph.
(3) Information obtained in the implementation of this section
is subject to the same limitations on disclosure, and penalties
for violation of such limitations, as is provided under section 2507
of title 10, United States Code. Such information also shall be
exempt from release under section 552 of title 5, United States
Code.
(4) For purposes of meeting the requirements set forth in this
section, the Secretary of Defense may not require the provision
of information beyond the information that is currently provided
to the Department of Defense through existing data collection sys-
tems by non-Federal entities with respect to contracts and sub-
contracts with the Department of Defense or any military depart-
ment.
(c) ANNUAL REPORT.—(1) Not later than February 1 of each
year, the Secretary of Defense shall submit to the Committees
on Armed Services of the Senate and the House of Representatives
a report on the assessment program covering the preceding fiscal
year. The first report under this subsection shall cover fiscal year
2004 and shall be submitted to the Committees no later than
February 1, 2005.
(2)(A) The report shall include the following with respect to
contracts described in subsection (b):
(i) The total number and value of such contracts awarded
by the Department of Defense.
(ii) The total number and value of such contracts awarded
on a sole source basis.
(iii) The total number and value of contracts described
in clause (ii) awarded to foreign contractors, summarized by
country.
(iv) The total number and value of contracts awarded to
foreign contractors through competitive procedures, summa-
rized by country.
(B) The report also shall include—
(i) the status of the matters described in subparagraphs
(A) and (B) of subsection (a)(1);
(ii) the status of implementation of successor procurement
data management systems; and
(iii) such other matters as the Secretary considers appro-
priate.
SEC. 813. IDENTIFICATION OF ESSENTIAL ITEMS: MILITARY SYSTEM
BREAKOUT LIST.
(a) IDENTIFICATION PROCESS.—(1) The Secretary of Defense
shall establish a process, using the Defense Logistics Information
System existing database, to identify, with respect to each military
system—
H. R. 1588—153
(A) the essential items, assemblies, and components of
the system that are active items, assemblies, and components;
(B) foreign and domestic sources of supply for active items,
assemblies, and components of the system;
(C) the active items, assemblies, and components of the
system that are commercial; and
(D) Federal Supply Class and North American Industry
Classification System Codes for active items, assemblies, and
components of the system.
(2) Any modification to the logistics management system or
any successor system of the Department of Defense shall maintain
the capability to identify—
(A) essential items, assemblies, and components described
in paragraph (1)(A);
(B) foreign and domestic sources of supply for active items,
assemblies, and components;
(C) the active items, assemblies, and components of the
system that are commercial; and
(D) Federal Supply Class and North American Industry
Classification System Codes for active items, assemblies, and
components.
(3) For purposes of meeting the requirements set forth in this
section, the Secretary of Defense may not require the provision
of information beyond the information that is currently provided
to the Department of Defense through existing data collection sys-
tems by non-Federal entities with respect to contracts and sub-
contracts with the Department of Defense or any military depart-
ment.
(b) MILITARY SYSTEM ESSENTIAL ITEM BREAKOUT LIST.—The
Secretary of Defense shall produce a list, to be known as the
‘‘military system essential item breakout list’’, consisting of the
items, assemblies, and components identified under subsection
(a)(1)(A). In producing the list, the Secretary of Defense shall con-
sider the results of the report under subsection (c).
(c) ASSESSMENT.—Not later than 18 months after the date
of the enactment of this Act, the Secretary of Defense, acting
through a federally funded research and development center, shall
prepare a report that—
(1) assesses the criteria that should be used for identifying
whether an item, assembly, or component is essential to a
military system; and
(2) recommends which items, assemblies, and components
should be included on the military system essential item break-
out list under subsection (b).
(d) REPORT.—(1) Not later than November 1 of each year,
beginning with November 1, 2005, the Secretary of Defense shall
submit to the Committees on Armed Services of the Senate and
the House of Representatives a report on the implementation of
this section. The report may be submitted in classified and unclassi-
fied form.
(2) The report shall include the following:
(A) A list of each military system covered by the process
established under subsection (a).
(B) A list of the items, assemblies, and components on
the military system essential item breakout list that are manu-
factured or produced outside the United States, setting forth
military and commercial separately.
H. R. 1588—154
(C) The portion of the entire military system essential
item breakout list that consists of the items, assemblies, and
components listed under subparagraph (B) (stated as a percent-
age).
(D) A list of each Federal Supply Class and North American
Industry Classification System Code represented on the mili-
tary system essential item breakout list, and the portion of
the entire military system essential item breakout list that
consists of items, assemblies, or components in such classes
or codes (stated as a percentage).
(E) A list of each country outside the United States where
the items, assemblies, and components listed under subpara-
graph (B) are manufactured or produced, and the portion of
the entire military system essential item breakout list that
consists of—
(i) the items, assemblies, or components manufactured
or produced in that country, setting forth military and
commercial separately (stated as a percentage); and
(ii) the Federal Supply Classes and North American
Industry Classification System Codes represented by those
items, assemblies, or components (stated as a percentage).
(3) The Secretary shall submit an interim version of the report
required by this subsection not later than February 1, 2005, con-
taining as much information as is practicable to be included by
such date.
SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN
ESSENTIAL ITEMS USING DEFENSE INDUSTRIAL BASE
CAPABILITIES FUND.
(a) ESTABLISHMENT
OF FUND.—There is established in the
Treasury of the United States a separate fund to be known as
the Defense Industrial Base Capabilities Fund (hereafter in this
section referred to as the ‘‘Fund’’).
(b) MONEYS IN FUND.—There shall be credited to the Fund
amounts appropriated to it.
(c) USE
OF FUND.—The Secretary of Defense is authorized
to use all amounts in the Fund, subject to appropriation, for the
purposes of enhancing or reconstituting United States industrial
capability to produce items on the military system essential item
breakout list (as described in section 812(b)) or items subject to
section 2534 of title 10, United States Code, in the quantity and
of the quality necessary to achieve national security objectives.
(d) LIMITATION
ON USE
OF FUND.—Before the obligation of
any amounts in the Fund, the Secretary of Defense shall submit
to Congress a report describing the Secretary’s plans for imple-
menting the Fund established in subsection (a), including the prior-
ities for the obligation of amounts in the Fund, the criteria for
determining the recipients of such amounts, and the mechanisms
through which such amounts may be provided to the recipients.
(e) AVAILABILITY OF FUNDS.—Amounts in the Fund shall remain
available until expended.
(f) FUND MANAGER.—The Secretary of Defense shall designate
a Fund manager. The duties of the Fund manager shall include—
(1) ensuring the visibility and accountability of transactions
engaged in through the Fund; and
(2) reporting to Congress each year regarding activities
of the Fund during the previous fiscal year.
H. R. 1588—155
Part II—Requirements Relating to Specific Items
SEC. 821. ELIMINATION OF UNRELIABLE SOURCES OF DEFENSE ITEMS
AND COMPONENTS.
(a) IDENTIFICATION OF CERTAIN COUNTRIES.—The Secretary of
Defense, in coordination with the Secretary of State, shall identify
and list foreign countries that restrict the provision or sale of
military goods or services to the United States because of United
States counterterrorism or military operations after the date of
the enactment of this Act. The Secretary shall review and update
the list as appropriate. The Secretary may remove a country from
the list, if the Secretary determines that doing so would be in
the interest of national defense.
(b) PROHIBITION ON PROCUREMENT OF ITEMS FROM IDENTIFIED
COUNTRIES.—The Secretary of Defense may not procure any items
or components contained in military systems if the items or compo-
nents, or the systems, are manufactured in any foreign country
identified under subsection (a).
(c) WAIVER AUTHORITY.—The Secretary of Defense may waive
the limitation in subsection (b) if the Secretary determines in
writing and notifies Congress that the Department of Defense’s
need for the item is of such an unusual and compelling urgency
that the Department would be unable to meet national security
objectives.
(d) EFFECTIVE DATE.—(1) Subject to paragraph (2), subsection
(b) applies to contracts in existence on the date of the enactment
of this Act or entered into after such date.
(2) With respect to contracts in existence on the date of the
enactment of this Act, the Secretary of Defense shall take such
action as is necessary to ensure that such contracts are in compli-
ance with subsection (b) not later than 24 months after such date.
SEC. 822. INCENTIVE PROGRAM FOR MAJOR DEFENSE ACQUISITION
PROGRAMS TO USE MACHINE TOOLS AND OTHER CAP-
ITAL ASSETS PRODUCED WITHIN THE UNITED STATES.
(a) IN GENERAL.—(1) Chapter 144 of title 10, United States
Code, is amended by inserting after section 2435 the following
new section:
‘‘§ 2436. Major defense acquisition programs: incentive pro-
gram for contractors to purchase capital assets
manufactured in United States
‘‘(a) ESTABLISHMENT OF INCENTIVE PROGRAM.—The Secretary
of Defense shall plan and establish an incentive program in accord-
ance with this section for contractors to purchase capital assets
manufactured in the United States in part with funds available
to the Department of Defense.
‘‘(b) DEFENSE INDUSTRIAL CAPABILITIES FUND MAY BE USED.—
The Secretary of Defense may use the Defense Industrial Capabili-
ties Fund, established under section 814 of the National Defense
Authorization Act for Fiscal Year 2004, for incentive payments
under the program established under this section.
‘‘(c) APPLICABILITY TO MAJOR DEFENSE ACQUISITION PROGRAM
CONTRACTS.—The incentive program shall apply to contracts for
the procurement of a major defense acquisition program.
‘‘(d) CONSIDERATION.—The Secretary of Defense shall provide
consideration in source selection in any request for proposals for
H. R. 1588—156
a major defense acquisition program for offerors with eligible capital
assets.’’.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2435
the following new item:
‘‘2436. Major defense acquisition programs: incentive program for contractors to pur-
chase capital assets manufactured in United States.’’.
(b) REGULATIONS.—(1) The Secretary of Defense shall prescribe
regulations as necessary to carry out section 2436 of title 10, United
States Code, as added by this section.
(2) The Secretary may prescribe interim regulations as nec-
essary to carry out such section. For this purpose, the Secretary
is excepted from compliance with the notice and comment require-
ments of section 553 of title 5, United States Code. All interim
rules prescribed under the authority of this paragraph that are
not earlier superseded by final rules shall expire no later than
270 days after the effective date of section 2436 of title 10, United
States Code, as added by this section.
(c) EFFECTIVE DATE.—Section 2436 of title 10, United States
Code, as added by subsection (a), shall apply with respect to con-
tracts entered into after the expiration of the 18-month period
beginning on the date of the enactment of this Act.
SEC. 823. TECHNICAL ASSISTANCE RELATING TO MACHINE TOOLS.
(a) TECHNICAL ASSISTANCE.—The Secretary of Defense shall
publish in the Federal Register information on Government con-
tracting for purposes of assisting machine tool companies in the
United States and entities that use machine tools. The information
shall contain, at a minimum, the following:
(1) An identification of resources with respect to Govern-
ment contracting regulations, including compliance procedures
and information on the availability of counseling.
(2) An identification of resources for locating opportunities
for contracting with the Department of Defense, including
information about defense contracts that are expected to be
carried out that may require the use of machine tools.
(b) SCIENCE AND TECHNOLOGY INITIATIVES.—The Secretary of
Defense shall incorporate into the Department of Defense science
and technology initiatives on manufacturing technology an objective
of developing advanced machine tool capabilities. Such technologies
shall be used to improve the technological capabilities of the United
States domestic machine tool industrial base in meeting national
security objectives.
SEC. 824. STUDY OF BERYLLIUM INDUSTRIAL BASE.
(a) REQUIREMENT FOR STUDY.—The Secretary of Defense shall
conduct a study of the adequacy of the industrial base of the
United States to meet defense requirements of the United States
for beryllium.
(b) REPORT.—Not later than March 31, 2005, the Secretary
shall submit a report on the results of the study to Congress.
The report shall contain, at a minimum, the following information:
(1) A discussion of the issues identified with respect to
the long-term supply of beryllium.
(2) An assessment of the need, if any, for modernization
of the primary sources of production of beryllium.
H. R. 1588—157
(3) A discussion of the advisability of, and concepts for,
meeting the future defense requirements of the United States
for beryllium and maintaining a stable domestic industrial
base of sources of beryllium through—
(A) cooperative arrangements commonly referred to as
public-private partnerships;
(B) the administration of the National Defense Stock-
pile under the Strategic and Critical Materials Stock Piling
Act; and
(C) any other means that the Secretary identifies as
feasible.
Part III—Other Domestic Source Requirements
SEC. 826. EXCEPTIONS TO BERRY AMENDMENT FOR CONTINGENCY
OPERATIONS AND OTHER URGENT SITUATIONS.
Section 2533a(d) of title 10, United States Code, is amended—
(1) by striking ‘‘OUTSIDE THE UNITED STATES’’ in the sub-
section heading;
(2) in paragraph (1), by inserting ‘‘or procurements of any
item listed in subsection (b)(1)(A), (b)(2), or (b)(3) in support
of contingency operations’’ after ‘‘in support of combat oper-
ations’’; and
(3) by adding at the end the following new paragraph:
‘‘(4) Procurements of any item listed in subsection (b)(1)(A),
(b)(2), or (b)(3) for which the use of procedures other than
competitive procedures has been approved on the basis of sec-
tion 2304(c)(2) of this title, relating to unusual and compelling
urgency of need.’’.
SEC. 827. INAPPLICABILITY OF BERRY AMENDMENT TO PROCURE-
MENTS OF WASTE AND BYPRODUCTS OF COTTON AND
WOOL FIBER FOR USE IN THE PRODUCTION OF PROPEL-
LANTS AND EXPLOSIVES.
Section 2533a(f) of title 10, United States Code, is amended—
(1) by striking ‘‘(f) EXCEPTION’’ and all that follows through
‘‘the procurement of’’ and inserting the following:
‘‘(f) EXCEPTIONS
FOR
CERTAIN
OTHER
COMMODITIES
AND
ITEMS.—Subsection (a) does not preclude the procurement of the
following:
‘‘(1)’’;
(2) by capitalizing the initial letter of the word following
‘‘(1)’’, as added by paragraph (1); and
(3) by adding at the end the following new paragraph:
‘‘(2) Waste and byproducts of cotton and wool fiber for
use in the production of propellants and explosives.’’.
SEC. 828. BUY AMERICAN EXCEPTION FOR BALL BEARINGS AND
ROLLER BEARINGS USED IN FOREIGN PRODUCTS.
Section 2534(a)(5) of title 10, United States Code, is amended
by inserting before the period at the end the following: ‘‘, except
ball bearings and roller bearings being procured for use in an
end product manufactured by a manufacturer that does not satisfy
the requirements of subsection (b) or in a component part manufac-
tured by such a manufacturer’’.
H. R. 1588—158
Subtitle C—Defense Acquisition and
Support Workforce Flexibility
SEC. 831. MANAGEMENT STRUCTURE.
(a) REPEAL OF REQUIREMENTS FOR CERTAIN CAREER MANAGE-
MENT DIRECTORS, BOARDS, AND POLICIES.—Sections 1703, 1705,
1706, and 1707 of title 10, United States Code, are repealed.
(b) CONFORMING AMENDMENTS.—Chapter 87 of such title is
amended—
(1) in section 1724(d)—
(A) in the first sentence, by striking ‘‘The acquisition
career program board concerned’’ and all that follows
through ‘‘if the board certifies’’ and inserting ‘‘The Secretary
of Defense may waive any or all of the requirements of
subsections (a) and (b) with respect to an employee of
the Department of Defense or member of the armed forces
if the Secretary determines’’;
(B) in the second sentence, by striking ‘‘the board’’
and inserting ‘‘the Secretary’’; and
(C) by striking the third sentence;
(2) in section 1732(b)—
(A) in paragraph (1)(C), by striking ‘‘, as validated
by the appropriate career program management board’’;
and
(B) in paragraph (2)(A)(ii), by striking ‘‘has been cer-
tified by the acquisition career program board of the
employing 
military 
department 
as 
possessing’’ 
and
inserting ‘‘possess’’;
(3) in section 1732(d)—
(A) in paragraph (1)—
(i) in the first sentence, by striking ‘‘the acquisition
career program board of a military department’’ and
all that follows through ‘‘if the board certifies’’ and
inserting ‘‘the Secretary of Defense may waive any
or all of the requirements of subsection (b) with respect
to an employee if the Secretary determines’’;
(ii) in the second sentence, by striking ‘‘the board’’
and inserting ‘‘the Secretary’’; and
(iii) by striking the third sentence; and
(B) in paragraph (2), by striking ‘‘The acquisition career
program board of a military department’’ and inserting
‘‘The Secretary’’;
(4) in section 1734—
(A) in subsection (d)—
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as paragraph
(2), and in that paragraph by striking the second sen-
tence; and
(B) in subsection (e)(2), by striking ‘‘, by the acquisition
career program board of the department concerned,’’; and
(5) in section 1737(c)—
(A) by striking paragraph (2); and
(B) by striking ‘‘(1) The Secretary’’ and inserting ‘‘The
Secretary’’.
H. R. 1588—159
SEC. 832. ELIMINATION OF ROLE OF OFFICE OF PERSONNEL MANAGE-
MENT.
(a) WORKFORCE QUALIFICATION REQUIREMENTS AND EXAMINA-
TIONS.—Section 1725 of such title is repealed.
(b) ACQUISITION
CORPS
REQUIREMENTS.—Subchapter III of
chapter 87 of title 10, United States Code, is amended—
(1) in section 1731, by striking subsection (c);
(2) in section 1732(c)(2), by striking the second and third
sentences;
(3) in section 1734(g)—
(A) by striking paragraph (2); and
(B) in paragraph (1), by striking ‘‘(1) The Secretary’’
and inserting ‘‘The Secretary’’; and
(4) in section 1737, by striking subsection (d).
(c) APPOINTMENT OF SCHOLARSHIP RECIPIENT IN COMPETITIVE
SERVICE.—Section 1744(c)(3)(A)(i) of such title is amended by
striking ‘‘and such other requirements as the Office of Personnel
Management may prescribe’’.
SEC. 833. SINGLE ACQUISITION CORPS.
Subchapter III of chapter 87 of title 10, United States Code,
as amended by section 832, is further amended—
(1) in section 1731—
(A) in subsection (a)—
(i) by striking ‘‘each of the military departments
and one or more Corps, as he considers appropriate,
for the other components of’’ in the first sentence;
and
(ii) by striking the second sentence; and
(B) in subsection (b), by striking ‘‘an Acquisition Corps’’
and inserting ‘‘the Acquisition Corps’’;
(2) in sections 1732(a), 1732(e)(1), 1732(e)(2), 1733(a),
1734(e)(1), and 1737(a)(1), by striking ‘‘an Acquisition Corps’’
and inserting ‘‘the Acquisition Corps’’; and
(3) in section 1734—
(A) in subsection (g), by striking ‘‘each Acquisition
Corps, a test program in which members of a Corps’’ and
inserting ‘‘the Acquisition Corps, a test program in which
members of the Corps’’; and
(B) in subsection (h), by striking ‘‘making assignments
of civilian and military members of the Acquisition Corps
of that military department’’ and inserting ‘‘making assign-
ments of civilian and military personnel of that military
department who are members of the Acquisition Corps’’.
SEC. 834. CONSOLIDATION OF CERTAIN EDUCATION AND TRAINING
PROGRAM REQUIREMENTS.
(a) CONSOLIDATION OF AUTHORITY.—Section 1742 of such title
is amended to read as follows:
‘‘§ 1742. Internship, cooperative education, and scholarship
programs
‘‘The Secretary of Defense shall conduct the following education
and training programs:
H. R. 1588—160
‘‘(1) An intern program for purposes of providing highly
qualified and talented individuals an opportunity for acceler-
ated promotions, career broadening assignments, and specified
training to prepare them for entry into the Acquisition Corps.
‘‘(2) A cooperative education credit program under which
the Secretary arranges, through cooperative arrangements
entered into with one or more accredited institutions of higher
education, for such institutions to grant undergraduate credit
for work performed by students who are employed by the
Department of Defense in acquisition positions.
‘‘(3) A scholarship program for the purpose of qualifying
personnel for acquisition positions in the Department of
Defense.’’.
(b) CONFORMING AMENDMENTS.—Sections 1743 and 1744 of
such title are repealed.
SEC. 835. GENERAL MANAGEMENT PROVISIONS.
Subchapter V of chapter 87 of title 10, United States Code,
is amended—
(1) by striking section 1763; and
(2) by adding at the end the following new section 1764:
‘‘§ 1764. Authority to establish different minimum require-
ments
‘‘(a) AUTHORITY.—(1) The Secretary of Defense may prescribe
a different minimum number of years of experience, different min-
imum education qualifications, and different tenure of service quali-
fications to be required for eligibility for appointment or advance-
ment to an acquisition position referred to in subsection (b) than
is required for such position under or pursuant to any provision
of this chapter.
‘‘(2) Any requirement prescribed under paragraph (1) for a
position referred to in any paragraph of subsection (b) shall be
applied uniformly to all positions referred to in such paragraph.
‘‘(b) APPLICABILITY.—This section applies to the following
acquisition positions in the Department of Defense:
‘‘(1) Contracting officer, except a position referred to in
paragraph (5).
‘‘(2) Program executive officer.
‘‘(3) Senior contracting official.
‘‘(4) Program manager.
‘‘(5) A position in the contract contingency force of an
armed force that is filled by a member of that armed force.
‘‘(c) DEFINITION.—In this section, the term ‘contract contingency
force’, with respect to an armed force, has the meaning given
such term in regulations prescribed by the Secretary concerned.’’.
SEC. 836. CLERICAL AMENDMENTS.
The tables of sections for chapter 87 of title 10, United States
Code, are amended as follows:
(1) The table of sections at the beginning of subchapter
I is amended by striking the items relating to sections 1703,
1705, 1706, and 1707.
(2) The table of sections at the beginning of subchapter
II is amended by striking the item relating to section 1725.
H. R. 1588—161
(3) The table of sections at the beginning of subchapter
IV is amended by striking the items relating to sections 1742,
1743, and 1744 and inserting the following:
‘‘1742. Internship, cooperative education, and scholarship programs.’’.
(4) The table of sections at the beginning of subchapter
V is amended by striking the item relating to section 1763
and inserting the following:
‘‘1764. Authority to establish different minimum requirements.’’.
Subtitle D—Amendments to General Con-
tracting Authorities, Procedures, and
Limitations
SEC. 841. ADDITIONAL AUTHORITY TO ENTER INTO PERSONAL SERV-
ICES CONTRACTS.
(a) ADDITIONAL AUTHORITY.—Section 129b of title 10, United
States Code, is amended by adding at the end the following new
subsection:
‘‘(d) ADDITIONAL AUTHORITY
FOR PERSONAL SERVICES CON-
TRACTS.—(1) In addition to the authority provided under subsection
(a), the Secretary of Defense may enter into personal services con-
tracts if the personal services—
‘‘(A) are to be provided by individuals outside the United
States, regardless of their nationality, and are determined by
the Secretary to be necessary and appropriate for supporting
the activities and programs of the Department of Defense out-
side the United States;
‘‘(B) directly support the mission of a defense intelligence
component or counter-intelligence organization of the Depart-
ment of Defense; or
‘‘(C) directly support the mission of the special operations
command of the Department of Defense.
‘‘(2) The contracting officer for a personal services contract
under this subsection shall be responsible for ensuring that—
‘‘(A) the services to be procured are urgent or unique;
and
‘‘(B) it would not be practicable for the Department to
obtain such services by other means.
‘‘(3) The requirements of section 3109 of title 5 shall not apply
to a contract entered into under this subsection.’’.
(b) CONFORMING AMENDMENTS.—(1) The heading for section
129b of such title is amended to read as follows:
‘‘§ 129b. Authority to procure personal services’’.
(2) The item relating to section 129b in the table of sections
at the beginning of chapter 3 of such title is amended to read
as follows:
‘‘129b. Authority to procure personal services.’’.
SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION
REQUIREMENTS.
Subsection (e) of section 2306 of title 10, United States Code,
is amended—
H. R. 1588—162
(1) by striking ‘‘(A)’’ and ‘‘(B)’’ and inserting ‘‘(i)’’ and ‘‘(ii)’’,
respectively;
(2) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively;
(3) by striking ‘‘Each’’ and inserting ‘‘(1) Except as provided
in paragraph (2), each’’; and
(4) by adding at the end the following new paragraph:
‘‘(2) Paragraph (1) shall not apply to a prime contract with
a contractor that maintains a purchasing system approved by the
contracting officer for the contract.’’.
SEC. 843. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.
(a) REPEAL
OF APPLICABILITY
OF EXISTING AUTHORITY
AND
LIMITATIONS.—Section 2306c of title 10, United States Code, is
amended by striking subsection (g).
(b) CONTRACT
PERIOD.—Section 2304a of such title is
amended—
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following new sub-
section (f):
‘‘(f) CONTRACT PERIOD.—The head of an agency entering into
a task or delivery order contract under this section may provide
for the contract to cover a total period of not more than five
years.’’.
SEC. 844. ELIMINATION OF REQUIREMENT TO FURNISH WRITTEN
ASSURANCES OF TECHNICAL DATA CONFORMITY.
Section 2320(b) of title 10, United States Code, is amended—
(1) by striking paragraph (7); and
(2) by redesignating paragraphs (8) and (9) as paragraphs
(7) and (8), respectively.
SEC. 845. ACCESS TO INFORMATION RELEVANT TO ITEMS DEPLOYED
UNDER RAPID ACQUISITION AND DEPLOYMENT PROCE-
DURES.
Section 806(c) of the Bob Stump National Defense Authorization
Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2607;
10 U.S.C. 2302 note) is amended by adding at the end the following
new paragraph:
‘‘(3) If items are deployed under the rapid acquisition and
deployment procedures prescribed pursuant to this section, or under
any other authority, before the completion of operational test and
evaluation of the items, the Director of Operational Test and
Evaluation shall have access to operational records and data rel-
evant to such items in accordance with section 139(e)(3) of title
10, United States Code, for the purpose of completing operational
test and evaluation of the items. The access to the operational
records and data shall be provided in a time and manner determined
by the Secretary of Defense consistent with requirements of oper-
ational security and other relevant operational requirements.’’.
SEC. 846. APPLICABILITY OF REQUIREMENT FOR REPORTS ON MATU-
RITY 
OF 
TECHNOLOGY 
AT 
INITIATION 
OF 
MAJOR
DEFENSE ACQUISITION PROGRAMS.
Section 804(a) of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1180) is amended
by striking ‘‘, as in effect on the date of enactment of this Act,’’
H. R. 1588—163
and inserting ‘‘(as in effect on the date of the enactment of this
Act), and the corresponding provision of any successor to such
Instruction,’’.
SEC. 847. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.
(a) EXTENSION OF AUTHORITY.—Subsection (g) of section 845
of the National Defense Authorization Act for Fiscal Year 1994
(10 U.S.C. 2371 note) is amended by striking ‘‘September 30, 2004’’
and inserting ‘‘September 30, 2008’’.
(b) INCREASED SCOPE OF AUTHORITY.—Subsection (a) of such
section is amended by inserting before the period at the end the
following: ‘‘, or to improvement of weapons or weapon systems
in use by the Armed Forces’’.
(c) PILOT PROGRAM
FOR TRANSITION
TO FOLLOW-ON CON-
TRACTS.—Such section, as amended by subsection (a), is further
amended—
(1) by redesignating subsections (e), (f), and (g) as sub-
sections (f), (g), and (h), respectively; and
(2) by inserting after subsection (d) the following new sub-
section (e):
‘‘(e) PILOT PROGRAM
FOR TRANSITION
TO FOLLOW-ON CON-
TRACTS.—(1) The Secretary of Defense is authorized to carry out
a pilot program for follow-on contracting for the production of
items or processes under prototype projects carried out under this
section.
‘‘(2) Under the pilot program—
‘‘(A) a qualifying contract for the procurement of such an
item or process, or a qualifying subcontract under a contract
for the procurement of such an item or process, may be treated
as a contract or subcontract, respectively, for the procurement
of commercial items, as defined in section 4(12) of the Office
of Federal Procurement Policy Act (41 U.S.C. 403(12)); and
‘‘(B) the item or process may be treated as an item or
process, respectively, that is developed in part with Federal
funds and in part at private expense for the purposes of section
2320 of title 10, United States Code.
‘‘(3) For the purposes of the pilot program, a qualifying contract
or subcontract is a contract or subcontract, respectively, with a
nontraditional defense contractor that—
‘‘(A) does not exceed $50,000,000; and
‘‘(B) is either—
‘‘(i) a firm, fixed-price contract or subcontract; or
‘‘(ii) a fixed-price contract or subcontract with economic
price adjustment.
‘‘(4) The authority to conduct a pilot program under this sub-
section shall terminate on September 30, 2008. The termination
of the authority shall not affect the validity of contracts or sub-
contracts that are awarded or modified during the period of the
pilot program, without regard to whether the contracts or sub-
contracts are performed during the period.’’.
SEC. 848. LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF
UNITED STATES JOINT FORCES COMMAND.
(a) 
THREE-YEAR
AUTHORITY
TO
DELEGATE
ACQUISITION
AUTHORITY.—(1) Chapter 6 of title 10, United States Code, is
amended by inserting after section 167 the following new section:
H. R. 1588—164
‘‘§ 167a. Unified combatant command for joint warfighting
experimentation: acquisition authority
‘‘(a) LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF CER-
TAIN UNIFIED COMBATANT COMMAND.—The Secretary of Defense
may delegate to the commander of the unified combatant command
referred to in subsection (b) authority of the Secretary under chapter
137 of this title sufficient to enable the commander to develop
and acquire equipment described in subsection (c). The exercise
of authority so delegated is subject to the authority, direction,
and control of the Secretary.
‘‘(b) COMMAND DESCRIBED.—The commander to whom authority
is delegated under subsection (a) is the commander of the unified
combatant command that has the mission for joint warfighting
experimentation, as assigned by the Secretary of Defense.
‘‘(c) EQUIPMENT.—The equipment referred to in subsection (a)
is as follows:
‘‘(1) Equipment for battle management command, control,
communications, and intelligence.
‘‘(2) Any other equipment that the commander referred
to in subsection (b) determines necessary and appropriate for—
‘‘(A) facilitating the use of joint forces in military oper-
ations; or
‘‘(B) enhancing the interoperability of equipment used
by the various components of joint forces.
‘‘(d) EXCEPTIONS.—The authority delegated under subsection
(a) does not apply to the development or acquisition of a system
for which—
‘‘(1) the total expenditure for research, development, test,
and evaluation is estimated to be $10,000,000 or more; or
‘‘(2) the total expenditure for procurement is estimated
to be $50,000,000 or more.
‘‘(e) INTERNAL
AUDITS
AND
INSPECTIONS.—The commander
referred to in subsection (b) shall require the inspector general
of that command to conduct internal audits and inspections of
purchasing and contracting administered by the commander under
the authority delegated under subsection (a).
‘‘(f) TERMINATION.—The Secretary may delegate the authority
referred to in subsection (a) only during fiscal years 2004 through
2006, and any authority so delegated shall not be in effect after
September 30, 2006.’’.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 167
the following new item:
‘‘167a. Unified combatant command for joint warfighting experimentation: acquisi-
tion authority.’’.
(b) COMPTROLLER GENERAL REPORT.—The Comptroller General
shall review the implementation of section 167a of title 10, United
States Code, as added by subsection (a), and submit to Congress
a report on such review not later than two years after the date
of the enactment of this Act. The review shall cover the extent
to which the authority provided under such section 167a has been
used.
H. R. 1588—165
Subtitle E—Acquisition-Related Reports
and Other Matters
SEC. 851. REPORT ON CONTRACT PAYMENTS TO SMALL BUSINESSES.
(a) REPORT.—The Comptroller General shall prepare and
submit to the congressional defense committees a report on the
timeliness of contract payments made to small businesses during
fiscal years 2001 and 2002 by the Department of Defense. The
report shall include an estimate of the following:
(1) The total amount of contract payments made by the
Department to small businesses.
(2) The percentage of total contract payments to small
businesses that were not made in a timely manner.
(3) The reasons that contract payments to small businesses
were not made in a timely manner.
(4) The amount of interest owed and paid by the Depart-
ment to small businesses due to contract payments not made
in a timely manner.
(5) Such recommendations as the Comptroller General con-
siders appropriate to improve the process for making contract
payments to small businesses in a timely manner.
(b) DEFINITIONS.—For purposes of subsection (a)—
(1) a payment is considered not made in a timely manner
if it caused interest to accrue under chapter 39 of title 31,
United States Code (relating to prompt payment); and
(2) the term ‘‘small business’’ means an entity that qualifies
as a small business concern under the Small Business Act.
SEC. 852. CONTRACTING WITH EMPLOYERS OF PERSONS WITH
DISABILITIES.
(a) INAPPLICABILITY OF RANDOLPH-SHEPPARD ACT.—The Ran-
dolph-Sheppard Act does not apply to any contract described in
subsection (b) for so long as the contract is in effect, including
for any period for which the contract is extended pursuant to
an option provided in the contract.
(b) JAVITS-WAGNER-O’DAY CONTRACTS.—Subsection (a) applies
to any contract for the operation of a military mess hall, military
troop dining facility, or any similar dining facility operated for
the purpose of providing meals to members of the Armed Forces
that—
(1) was entered into before the date of the enactment
of this Act with a nonprofit agency for the blind or an agency
for other severely handicapped in compliance with section 3
of the Javits-Wagner-O’Day Act (41 U.S.C. 48); and
(2) is in effect on such date.
(c) ENACTMENT OF POPULAR NAME AS SHORT TITLE.—The Act
entitled ‘‘An Act to authorize the operation of stands in Federal
buildings by blind persons, to enlarge the economic opportunities
of the blind, and for other purposes’’, approved June 20, 1936
(commonly known as the ‘‘Randolph-Sheppard Act’’) (20 U.S.C. 107
et seq.), is amended by adding at the end the following new section:
‘‘SEC. 11. This Act may be cited as the ‘Randolph-Sheppard
Act’.’’.
H. R. 1588—166
SEC. 853. DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING
PERSONS WITH DISABILITIES.
(a) AUTHORITY.—The Secretary of Defense may carry out a
demonstration project by entering into one or more contracts with
an eligible contractor for the purpose of providing defense con-
tracting opportunities for severely disabled individuals.
(b) EVALUATION FACTOR.—In evaluating an offer for a contract
under the demonstration program, the percentage of the total
workforce of the offeror consisting of severely disabled individuals
employed by the offeror shall be one of the evaluation factors.
(c) DEFINITIONS.—In this section:
(1) ELIGIBLE CONTRACTOR.—The term ‘‘eligible contractor’’
means a business entity operated on a for-profit or nonprofit
basis that—
(A) employs severely disabled individuals at a rate
that averages not less than 33 percent of its total workforce
over a period prescribed by the Secretary;
(B) pays not less than the minimum wage prescribed
pursuant to section 6 of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206) to the employees who are severely
disabled individuals; and
(C) provides for its employees health insurance and
a retirement plan comparable to those provided for
employees by business entities of similar size in its indus-
trial sector or geographic region.
(2) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely
disabled individual’’ means an individual with a disability (as
defined in section 3 of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12102)) who has a severe physical or mental
impairment that seriously limits one or more functional capac-
ities.
TITLE IX—DEPARTMENT OF DEFENSE
ORGANIZATION AND MANAGEMENT
Subtitle A—Duties and Functions of Department of Defense Officers and
Organizations
Sec. 901. Clarification of responsibility of military departments to support combat-
ant commands.
Sec. 902. Combatant Commander Initiative Fund.
Sec. 903. Biennial review of national military strategy by Chairman of the Joint
Chiefs of Staff.
Sec. 904. Report on changing roles of United States Special Operations Command.
Sec. 905. Sense of Congress regarding continuation of mission and functions of
Army Peacekeeping Institute.
Sec. 906. Transfer to Office of Personnel Management of personnel investigative
functions and related personnel of the Department of Defense.
Sec. 907. Defense acquisition workforce freeze for fiscal year 2004.
Subtitle B—Space Activities
Sec. 911. Coordination of space science and technology activities of the Department
of Defense.
Sec. 912. Policy regarding assured access to space for United States national secu-
rity payloads.
Sec. 913. Pilot program for provision of space surveillance network services to non-
United States Government entities.
Sec. 914. Content of biennial global positioning system report.
Sec. 915. Report on processes-related space systems.
H. R. 1588—167
Subtitle C—Department of Defense Intelligence Components
Sec. 921. Redesignation of National Imagery and Mapping Agency as National
Geospatial-Intelligence Agency.
Sec. 922. Protection of operational files of the National Security Agency.
Sec. 923. Integration of defense intelligence, surveillance, and reconnaissance capa-
bilities.
Sec. 924. Management of National Security Agency Modernization Program.
Sec. 925. Modification of obligated service requirements under National Security
Education Program.
Sec. 926. Authority to provide living quarters for certain students in cooperative
and summer education programs of the National Security Agency.
Sec. 927. Commercial imagery industrial base.
Subtitle D—Other Matters
Sec. 931. Authority for Asia-Pacific Center for Security Studies to accept gifts and
donations.
Sec. 932. Repeal of rotating chairmanship of Economic Adjustment Committee.
Sec. 933. Extension of certain authorities applicable to the Pentagon Reservation to
include a designated Pentagon continuity-of-Government location.
Subtitle A—Duties and Functions of Department of Defense
Officers and Organizations
SEC. 901. CLARIFICATION OF RESPONSIBILITY OF MILITARY DEPART-
MENTS TO SUPPORT COMBATANT COMMANDS.
Sections 3013(c)(4), 5013(c)(4), and 8013(c)(4) of title 10, United
States Code, are amended by striking ‘‘(to the maximum extent
practicable)’’.
SEC. 902. COMBATANT COMMANDER INITIATIVE FUND.
(a) REDESIGNATION OF CINC INITIATIVE FUND.—(1) The CINC
Initiative Fund administered under section 166a of title 10, United
States Code, is redesignated as the ‘‘Combatant Commander Initia-
tive Fund’’.
(2) Section 166a of title 10, United States Code, is amended—
(A) by striking the heading for subsection (a) and inserting
‘‘COMBATANT COMMANDER INITIATIVE FUND.—‘‘; and
(B) by striking ‘‘CINC Initiative Fund’’ in subsections (a),
(c), and (d), and inserting ‘‘Combatant Commander Initiative
Fund’’.
(3) Any reference to the CINC Initiative Fund in any other
provision of law or in any regulation, document, record, or other
paper of the United States shall be considered to be a reference
to the Combatant Commander Initiative Fund.
(b) AUTHORIZED ACTIVITIES.—Subsection (b) of section 166a of
title 10, United States Code, is amended by adding at the end
the following new paragraph:
‘‘(10) Joint warfighting capabilities.’’.
(c) INCREASED MAXIMUM AMOUNTS AUTHORIZED
FOR USE.—
Subsection (e)(1) of such section is amended—
(1) in subparagraph (A), by striking ‘‘$7,000,000’’ and
inserting ‘‘$10,000,000’’;
(2) in subparagraph (B), by striking ‘‘$1,000,000’’ and
inserting ‘‘$10,000,000’’; and
(3) in subparagraph (C), by striking ‘‘$2,000,000’’ and
inserting ‘‘$5,000,000’’.
SEC. 903. BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY BY
CHAIRMAN OF THE JOINT CHIEFS OF STAFF.
(a) BIENNIAL REVIEW.—Section 153 of title 10, United States
Code, by adding at the end the following new subsection:
H. R. 1588—168
‘‘(d) BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY.—(1)
Not later then February 15 of each even-numbered year, the Chair-
man shall submit to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of
Representatives a report containing the results of a comprehensive
examination of the national military strategy. Each such examina-
tion shall be conducted by the Chairman in conjunction with the
other members of the Joint Chiefs of Staff and the commanders
of the unified and specified commands.
‘‘(2) Each report on the examination of the national military
strategy under paragraph (1) shall include the following:
‘‘(A) Delineation of a national military strategy consistent
with—
‘‘(i) the most recent National Security Strategy pre-
scribed by the President pursuant to section 108 of the
National Security Act of 1947 (50 U.S.C. 404a);
‘‘(ii) the most recent annual report of the Secretary
of Defense submitted to the President and Congress pursu-
ant to section 113 of this title; and
‘‘(iii) the most recent Quadrennial Defense Review con-
ducted by the Secretary of Defense pursuant to section
118 of this title.
‘‘(B) A description of the strategic environment and the
opportunities and challenges that affect United States national
interests and United States national security.
‘‘(C) A description of the regional threats to United States
national interests and United States national security.
‘‘(D) A description of the international threats posed by
terrorism, weapons of mass destruction, and asymmetric chal-
lenges to United States national security.
‘‘(E) Identification of United States national military objec-
tives and the relationship of those objectives to the strategic
environment, regional, and international threats.
‘‘(F) Identification of the strategy, underlying concepts, and
component elements that contribute to the achievement of
United States national military objectives.
‘‘(G) Assessment of the capabilities and adequacy of United
States forces (including both active and reserve components)
to successfully execute the national military strategy.
‘‘(H) Assessment of the capabilities, adequacy, and inter-
operability of regional allies of the United States and or other
friendly nations to support United States forces in combat
operations and other operations for extended periods of time.
‘‘(3)(A) As part of the assessment under this subsection, the
Chairman, in conjunction with the other members of the Joint
Chiefs of Staff and the commanders of the unified and specified
commands, shall undertake an assessment of the nature and mag-
nitude of the strategic and military risks associated with success-
fully executing the missions called for under the current National
Military Strategy.
‘‘(B) In preparing the assessment of risk, the Chairman should
make assumptions pertaining to the readiness of United States
forces (in both the active and reserve components), the length
of conflict and the level of intensity of combat operations, and
the levels of support from allies and other friendly nations.
H. R. 1588—169
‘‘(4) Before submitting a report under this subsection to the
Committees on Armed Services of the Senate and House of Rep-
resentatives, the Chairman shall provide the report to the Secretary
of Defense. The Secretary’s assessment and comments thereon (if
any) shall be included with the report. If the Chairman’s assessment
in such report in any year is that the risk associated with executing
the missions called for under the National Military Strategy is
significant, the Secretary shall include with the report as submitted
to those committees the Secretary’s plan for mitigating the risk.’’.
(b) CONFORMING AMENDMENT.—Subsection (b)(1) of such section
is amended by striking ‘‘each year’’ and inserting ‘‘of each odd-
numbered year’’.
SEC. 904. REPORT ON CHANGING ROLES OF UNITED STATES SPECIAL
OPERATIONS COMMAND.
(a) REPORT REQUIRED.—Not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall submit
to the Committees on Armed Services of the Senate and the House
of Representatives a report on the changing roles of the United
States Special Operations Command.
(b) CONTENT OF REPORT.—(1) The report shall specifically dis-
cuss in detail the following matters:
(A) The expanded role of the United States Special Oper-
ations Command in the global war on terrorism.
(B) The reorganization of that command to function as
a supported combatant command for planning and executing
operations.
(C) The role of that command as a supporting combatant
command.
(2) The report shall also include, in addition to the matters
discussed pursuant to paragraph (1), a discussion of the following
matters:
(A) The military strategy to employ the United States
Special Operations Command to fight the global war on ter-
rorism and how that strategy contributes to the overall national
security strategy with regard to the global war on terrorism.
(B) The scope of the authority granted to the commander
of that command to act as a supported commander and to
prosecute the global war on terrorism.
(C) The operational and legal parameters within which
the commander of that command is to exercise command
authority in foreign countries when taking action against for-
eign and United States citizens engaged in terrorist activities.
(D) The decisionmaking procedures for authorizing, plan-
ning, and conducting individual missions by that command,
including—
(i) the requirement in section 167(d)(2) of title 10,
United States Code, that the conduct of a special operations
mission under the command of the commander of the
United States Special Operations Command be authorized
by the President or the Secretary of Defense; and
(ii) procedures for consultation with Congress.
(E) The procedures for the commander of that command
to use to coordinate with commanders of other combatant com-
mands, especially geographic commands.
H. R. 1588—170
(F) Future organization plans and resource requirements
for that command conducting the global counterterrorism mis-
sion.
(G) The effect of the changing role of that command on
other special operations missions, including foreign internal
defense, psychological operations, civil affairs, unconventional
warfare, counterdrug activities, and humanitarian activities.
(c) FORMS
OF REPORT.—The report shall be submitted in
unclassified form and, as necessary, in classified form.
SEC. 905. SENSE OF CONGRESS REGARDING CONTINUATION OF MIS-
SION 
AND 
FUNCTIONS 
OF 
ARMY 
PEACEKEEPING
INSTITUTE.
It is the sense of Congress that the Secretary of Defense should
maintain the functions and missions of the Army Peacekeeping
Institute at the Army War College in Carlisle, Pennsylvania, or
within a joint entity of the Department of Defense, such as the
National Defense University or the Joint Forces Command, to
ensure that members of the Armed Forces continue to study the
strategic challenges and uses of peacekeeping missions and to pre-
pare the Armed Forces for conducting such missions.
SEC. 906. TRANSFER TO OFFICE OF PERSONNEL MANAGEMENT OF
PERSONNEL INVESTIGATIVE FUNCTIONS AND RELATED
PERSONNEL OF THE DEPARTMENT OF DEFENSE.
(a) TRANSFER
OF FUNCTIONS.—(1) Subject to subsection (b),
the Secretary of Defense may transfer to the Office of Personnel
Management the personnel security investigations functions that,
as of the date of the enactment of this Act, are performed by
the Defense Security Service of the Department of Defense. Such
a transfer may be made only with the concurrence of the Director
of the Office of Personnel Management.
(2) The Director of the Office of Personnel Management may
accept a transfer of functions under paragraph (1).
(3) Any transfer of a function under this subsection is a transfer
of function within the meaning of section 3503 of title 5, United
States Code.
(b) LIMITATION.—(1) The Secretary of Defense may not make
a transfer of functions under subsection (a) unless the Secretary
determines, and certifies in writing to the Committee on Armed
Services of the House of Representatives and the Committee on
Armed Services of the Senate, that each of the conditions specified
in paragraph (2) has been met. Such a transfer may then be
made only after a period of 30 days has elapsed after the date
on which the certification is received by those committees.
(2) The conditions referred to in paragraph (1) are the following:
(A) That the Office of Personnel Management is fully
capable of carrying out high-priority investigations required
by the Secretary of Defense within a timeframe set by the
Secretary of Defense.
(B) That the Office of Personnel Management has under-
taken necessary and satisfactory steps to ensure that investiga-
tions performed on Department of Defense contract personnel
will be conducted in an expeditious manner sufficient to ensure
that those contract personnel are available to the Department
of Defense within a timeframe set by the Secretary of Defense.
(C) That the Department of Defense will retain capabilities
in the form of Federal employees to monitor and investigate
H. R. 1588—171
Department of Defense and contractor personnel as necessary
to perform counterintelligence functions and polygraph activi-
ties of the Department.
(D) That the authority to adjudicate background investiga-
tions will remain with the Department of Defense and that
the transfer of Defense Security Service personnel to the Office
of Personnel Management will improve the speed and efficiency
of the adjudication process.
(E) That the Department of Defense will retain within
the Defense Security Service sufficient personnel and capabili-
ties to improve Department of Defense industrial security pro-
grams and practices.
(c) TRANSFER OF PERSONNEL.—(1) If the Director of the Office
of Personnel Management accepts a transfer of functions under
subsection (a), the Secretary of Defense shall also transfer to the
Office of Personnel Management, and the Director shall accept—
(A) the Defense Security Service employees who perform
those functions immediately before the transfer of functions;
and
(B) the Defense Security Service employees who, as of
such time, are first level supervisors of employees transferred
under subparagraph (A).
(2) The Secretary may also transfer to the Office of Personnel
Management any Defense Security Service employees (including
higher level supervisors) who provide support services for the
performance of the functions transferred under subsection (a) or
for the personnel (including supervisors) transferred under para-
graph (1) if the Director—
(A) determines that the transfer of such additional
employees and the positions of such employees to the Office
of Personnel Management is necessary in the interest of effec-
tive performance of the transferred functions; and
(B) accepts the transfer of the additional employees.
(3) In the case of an employee transferred to the Office of
Personnel Management under paragraph (1) or (2), whether a full-
time or part-time employee—
(A) subsections (b) and (c) of section 5362 of title 5, United
States Code, relating to grade retention, shall apply to the
employee, except that—
(i) the grade retention period shall be the one-year
period beginning on the date of the transfer; and
(ii) paragraphs (1), (2), and (3) of such subsection (c)
shall not apply to the employee; and
(B) the employee may not be separated, other than pursu-
ant to chapter 75 of title 5, United States Code, during such
one-year period.
(d) ACTIONS AFTER TRANSFER.—(1) Not later than one year
after a transfer of functions to the Office of Personnel Management
under subsection (a), the Director of the Office of Personnel Manage-
ment, in coordination with the Secretary of Defense, shall review
all functions performed by personnel of the Defense Security Service
at the time of the transfer and make a written determination
regarding whether each such function is inherently governmental
or is otherwise inappropriate for performance by contractor per-
sonnel.
(2) A function performed by Defense Security Service employees
as of the date of the enactment of this Act may not be converted
H. R. 1588—172
to contractor performance by the Director of the Office of Personnel
Management until—
(A) the Director reviews the function in accordance with
the requirements of paragraph (1) and makes a written deter-
mination that the function is not inherently governmental and
is not otherwise inappropriate for contractor performance; and
(B) the Director conducts a public-private competition
regarding the performance of that function in accordance with
the requirements of the Office of Management and Budget
Circular A–76.
SEC. 907. DEFENSE ACQUISITION WORKFORCE FREEZE FOR FISCAL
YEAR 2004.
(a) DEFENSE ACQUISITION WORKFORCE FREEZE.—During fiscal
year 2004, the number of defense acquisition and support personnel
may not at any time be greater than one percent above, or less
than one percent below, the baseline number, and any variation
from the baseline number (within such one percent variance) shall
be only to exercise normal hiring and firing flexibility during the
fiscal year.
(b) BASELINE NUMBER.—For purposes of subsection (a), the
baseline number is the number of defense acquisition and support
personnel as of October 1, 2003.
(c) USE OF FULL-TIME EQUIVALENT POSITIONS.—All determina-
tions of personnel strengths for purposes of this section shall be
on the basis of full-time equivalent positions.
(d) WAIVER AUTHORITY.—The Secretary of Defense may waive
the limitation in subsection (a) upon a determination that such
waiver is necessary to protect a significant national security interest
of the United States. If the Secretary makes such a determination,
the Secretary shall, within 30 days after making the determination,
notify the Committees on Armed Services of the Senate and House
of Representatives of the determination and the reasons for the
determination.
(e) DEFINITION.—In this section, the term ‘‘defense acquisition
and support personnel’’ means members of the Armed Forces and
civilian personnel (other than civilian personnel who are employed
at a maintenance depot) who are assigned to, or employed in,
acquisition organizations of the Department of Defense (as specified
in Department of Defense Instruction numbered 5000.58, dated
January 14, 1992), and any other organization that, as determined
by the Secretary, has acquisition as its predominant mission.
Subtitle B—Space Activities
SEC. 911. COORDINATION OF SPACE SCIENCE AND TECHNOLOGY
ACTIVITIES OF THE DEPARTMENT OF DEFENSE.
(a) IN GENERAL.—(1) Chapter 135 of title 10, United States
Code, is amended by adding at the end the following new section:
‘‘§ 2272. Space science and technology strategy: coordination
‘‘(a) SPACE SCIENCE AND TECHNOLOGY STRATEGY.—(1) The Sec-
retary of Defense shall develop and implement a space science
and technology strategy and shall review and, as appropriate, revise
the strategy annually. Functions of the Secretary under this sub-
section shall be carried out jointly by the Director of Defense
Research and Engineering and the official of the Department of
H. R. 1588—173
Defense designated as the Department of Defense Executive Agent
for Space.
‘‘(2) The strategy under paragraph (1) shall, at a minimum,
address the following issues:
‘‘(A) Short-term and long-term goals of the space science
and technology programs of the Department of Defense.
‘‘(B) The process for achieving the goals identified under
subparagraph (A), including an implementation plan for
achieving those goals.
‘‘(C) The process for assessing progress made toward
achieving those goals.
‘‘(3) The strategy under paragraph (1) shall be included as
part of the annual National Security Space Plan developed pursuant
to Department of Defense regulations and shall be provided to
Department of Defense components and science and technology
entities of the Department of Defense to support the planning,
programming, and budgeting processes of the Department.
‘‘(4) The strategy under paragraph (1) shall be developed in
consultation with the directors of research laboratories of the
Department of Defense, the directors of the other Department of
Defense research components, and the heads of other organizations
of the Department of Defense as identified by the Director of
Defense Research and Engineering and the Department of Defense
Executive Agent for Space.
‘‘(5) The strategy shall be available for review by the congres-
sional defense committees.
‘‘(b) REQUIRED
COORDINATION.—In carrying out the space
science and technology strategy developed under subsection (a),
the directors of the research laboratories of the Department of
Defense, the directors of the other Department of Defense research
components, and the heads of all other appropriate organizations
identified jointly by the Director of Defense Research and
Engineering and the Department of Defense Executive Agent for
Space shall each—
‘‘(1) identify research projects in support of that strategy
that contribute directly and uniquely to the development of
space technology; and
‘‘(2) inform the Director of Defense Research and
Engineering and the Department of Defense Executive Agent
for Space of the planned budget and planned schedule for
executing those projects.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘research laboratory of the Department of
Defense’ means any of the following:
‘‘(A) The Air Force Research Laboratory.
‘‘(B) The Naval Research Laboratory.
‘‘(C) The Office of Naval Research.
‘‘(D) The Army Research Laboratory.
‘‘(2) The term ‘other Department of Defense research
component’ means either of the following:
‘‘(A) The Defense Advanced Research Projects Agency.
‘‘(B) The National Reconnaissance Office.’’.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
‘‘2272. Space science and technology strategy: coordination.’’.
H. R. 1588—174
(b) GENERAL ACCOUNTING OFFICE REVIEW.—(1) The Comp-
troller General shall review and assess the space science and tech-
nology strategy developed under subsection (a) of section 2272 of
title 10, United States Code, as added by subsection (a), and the
effectiveness of the coordination process required under subsection
(b) of that section.
(2) Not later than September 1, 2004, the Comptroller General
shall submit to the Committees on Armed Services of the Senate
and the House of Representatives a report containing the findings
and assessment under paragraph (1).
SEC. 912. POLICY REGARDING ASSURED ACCESS TO SPACE FOR
UNITED STATES NATIONAL SECURITY PAYLOADS.
(a) IN GENERAL.—(1) Chapter 135 of title 10, United States
Code, is amended by adding after section 2272, as added by section
911(a)(1), the following new section:
‘‘§ 2273. Policy regarding assured access to space: national
security payloads
‘‘(a) POLICY.—It is the policy of the United States for the Presi-
dent to undertake actions appropriate to ensure, to the maximum
extent practicable, that the United States has the capabilities nec-
essary to launch and insert United States national security payloads
into space whenever such payloads are needed in space.
‘‘(b) INCLUDED ACTIONS.—The appropriate actions referred to
in subsection (a) shall include, at a minimum, providing resources
and policy guidance to sustain—
‘‘(1) the availability of at least two space launch vehicles
(or families of space launch vehicles) capable of delivering into
space any payload designated by the Secretary of Defense or
the Director of Central Intelligence as a national security pay-
load; and
‘‘(2) a robust space launch infrastructure and industrial
base.
‘‘(c) COORDINATION.—The Secretary of Defense shall, to the
maximum extent practicable, pursue the attainment of the capabili-
ties described in subsection (a) in coordination with the Adminis-
trator of the National Aeronautics and Space Administration.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding after the item relating
to section 2272, as added by section 911(a)(2), the following new
item:
‘‘2273. Policy regarding assured access to space: national security payloads.’’.
SEC. 913. PILOT PROGRAM FOR PROVISION OF SPACE SURVEILLANCE
NETWORK SERVICES TO NON-UNITED STATES GOVERN-
MENT ENTITIES.
(a) IN GENERAL.—Chapter 135 of title 10, United States Code,
is amended by adding after section 2273, as added by section
912(a), the following new section:
‘‘§ 2274. Space surveillance network: pilot program for provi-
sion of satellite tracking support to entities out-
side United States Government
‘‘(a) PILOT PROGRAM.—The Secretary of Defense may carry out
a pilot program to determine the feasibility and desirability of
H. R. 1588—175
providing to non-United States Government entities space surveil-
lance data support described in subsection (b).
‘‘(b) SPACE SURVEILLANCE DATA SUPPORT.—Under such a pilot
program, the Secretary may provide to a non-United States Govern-
ment entity, subject to an agreement described in subsection (d),
the following:
‘‘(1) Satellite tracking services from assets owned or con-
trolled by the Department of Defense, but only if the Secretary
determines, in the case of any such agreement, that providing
such services to that entity is in the national security interests
of the United States.
‘‘(2) Space surveillance data and the analysis of space
surveillance data, but only if the Secretary determines, in the
case of any such agreement, that providing such data and
analysis to that entity is in the national security interests
of the United States.
‘‘(c) ELIGIBLE ENTITIES.—Under the pilot program, the Sec-
retary may provide space surveillance data support to non-United
States Government entities including the following:
‘‘(1) State governments.
‘‘(2) Governments of political subdivisions of States.
‘‘(3) United States commercial entities.
‘‘(4) Governments of foreign countries.
‘‘(5) Foreign commercial entities.
‘‘(d) REQUIRED AGREEMENT.—The Secretary may not provide
space surveillance data support to a non-United States Government
entity under the pilot program unless that entity enters into an
agreement with the Secretary under which the entity—
‘‘(1) agrees to pay an amount that may be charged by
the Secretary under subsection (e); and
‘‘(2) agrees not to transfer any data or technical information
received under the agreement, including the analysis of
tracking data, to any other entity without the express approval
of the Secretary.
‘‘(e) RULE OF CONSTRUCTION CONCERNING PROVISION OF INTEL-
LIGENCE ASSETS OR DATA.—Nothing in this section shall be consid-
ered to authorize the provision of services or information concerning,
or derived from, United States intelligence assets or data.
‘‘(f) CHARGES.—(1) As a condition of an agreement under sub-
section (d), the Secretary may (except as provided in paragraph
(2)) require the non-United States Government entity entering into
the agreement to pay to the Department of Defense such amounts
as the Secretary determines to be necessary to reimburse the
Department for the costs of the Department of providing space
surveillance data support under the agreement.
‘‘(2) The Secretary may not require the government of a State
or of a political subdivision of a State to pay any amount under
paragraph (1).
‘‘(g) CREDITING OF FUNDS RECEIVED.—Funds received for the
provision of space surveillance data support pursuant to an agree-
ment under this section shall be credited to accounts of the Depart-
ment of Defense that are current when the funds are received
and that are available for the same purposes as the accounts
originally charged to provide such support. Funds so credited shall
merge with and become available for obligation for the same period
as the accounts to which they are credited.
H. R. 1588—176
‘‘(h) PROCEDURES.—The Secretary shall establish procedures
for the conduct of the pilot program. As part of those procedures,
the Secretary may allow space surveillance data and analysis of
space surveillance data to be provided through a contractor of
the Department of Defense.
‘‘(i) DURATION OF PILOT PROGRAM.—The pilot program under
this section shall be conducted during the three-year period begin-
ning on a date specified by the Secretary of Defense, which date
shall be not later than 180 days after the date of the enactment
of this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding after the item relating
to section 2273, as added by section 912(b), the following new
item:
‘‘2274. Space surveillance network: pilot program for provision of satellite tracking
support to entities outside United States Government.’’.
SEC. 914. CONTENT OF BIENNIAL GLOBAL POSITIONING SYSTEM
REPORT.
(a) REVISED CONTENT.—Paragraph (1) of section 2281(d) of
title 10, United States Code, is amended—
(1) by striking subparagraph (C);
(2) by redesignating subparagraph (D) as subparagraph
(C);
(3) by redesignating subparagraph (E) as subparagraph
(D) and in that subparagraph striking ‘‘Any progress made
toward’’ and inserting ‘‘Progress and challenges in’’; and
(4) by striking subparagraph (F) and inserting the fol-
lowing:
‘‘(E) Progress and challenges in protecting GPS from jam-
ming, disruption, and interference.
‘‘(F) Progress and challenges in developing the enhanced
Global Positioning System required by section 218(b) of the
Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105–261; 112 Stat. 1951; 10 U.S.C.
2281 note).’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of such section
is amended by inserting ‘‘(C),’’ after ‘‘under subparagraphs’’.
SEC. 915. REPORT ON PROCESSES-RELATED SPACE SYSTEMS.
Not later than March 15, 2004, the Secretary of Defense shall
submit to the Committees on Armed Services of the Senate and
House of Representatives a report to provide the—
(1) the Secretary’s assessment of the role of the United
States Strategic Command in planning and requirements
development for space systems to support the warfighter;
(2) the Secretary’s assessment of the processes by which
space systems capabilities are integrated into training and
doctrine of the Armed Forces; and
(3) the Secretary’s recommendations for improvements in
the processes identified pursuant to paragraphs (1) and (2).
H. R. 1588—177
Subtitle C—Department of Defense Intelligence Components
SEC. 921. REDESIGNATION OF NATIONAL IMAGERY AND MAPPING
AGENCY 
AS 
NATIONAL 
GEOSPATIAL-INTELLIGENCE
AGENCY.
(a) REDESIGNATION.—The National Imagery and Mapping
Agency of the Department of Defense is hereby redesignated as
the National Geospatial-Intelligence Agency.
(b) DEFINITION OF GEOSPATIAL INTELLIGENCE.—Section 467 of
title 10, United States Code, is amended by adding at the end
the following new paragraph:
‘‘(5) The term ‘geospatial intelligence’ means the exploi-
tation and analysis of imagery and geospatial information to
describe, assess, and visually depict physical features and geo-
graphically referenced activities on the earth. Geospatial intel-
ligence consists of imagery, imagery intelligence, and geospatial
information.’’.
(c) AGENCY MISSIONS.—(1) Section 442(a) of title 10, United
States Code, is amended—
(A) in paragraph (1), by inserting ‘‘geospatial intelligence
consisting of’’ after ‘‘provide’’; and
(B) in paragraph (2), by striking ‘‘Imagery, intelligence,
and information’’ and inserting ‘‘Geospatial intelligence’’.
(2) Section 110(a) of the National Security Act of 1947 (50
U.S.C. 404e(a)) is amended by striking ‘‘imagery’’ and inserting
‘‘geospatial intelligence’’.
(d) TECHNICAL AND CONFORMING AMENDMENTS TO TITLE 10,
UNITED STATES CODE.—Title 10, United States Code, is amended
as follows:
(1) The heading of chapter 22 is amended to read as follows:
‘‘CHAPTER 22—NATIONAL GEOSPATIAL-INTELLIGENCE
AGENCY’’.
(2) Chapter 22 is amended—
(A) by striking ‘‘National Imagery and Mapping
Agency’’ each place it appears (other than in section 461(b))
and inserting ‘‘National Geospatial-Intelligence Agency’’;
(B) in section 453(b), by striking ‘‘NIMA’’ in paragraphs
(1) and (2) and inserting ‘‘NGA’’; and
(C) in section 461(b)—
(i) by striking ‘‘The National Imagery and Mapping
Agency’’ and inserting ‘‘The Director of the National
Geospatial-Intelligence Agency’’; and
(ii) by striking ‘‘on the day before’’ and all that
follows through the period and inserting ‘‘on September
30, 1996.’’.
(3) Section 193 is amended—
(A) by striking ‘‘National Imagery and Mapping
Agency’’ in subsections (d)(1), (d)(2), (e), and (f)(4) and
inserting ‘‘National Geospatial-Intelligence Agency’’;
(B) in the heading for subsection (d), by striking
‘‘NATIONAL IMAGERY AND MAPPING AGENCY’’ and inserting
‘‘NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY’’; and
(C) in the heading for subsection (e), by striking
‘‘NIMA’’ and inserting ‘‘NGA’’.
H. R. 1588—178
(4) Section 201 is amended by striking ‘‘National Imagery
and Mapping Agency’’ in subsections (b)(2)(C) and (c)(2)(C) and
inserting ‘‘National Geospatial-Intelligence Agency’’.
(5)(A) Section 424 is amended by striking ‘‘National
Imagery and Mapping Agency’’ in subsection (b)(3) and
inserting ‘‘National Geospatial-Intelligence Agency’’.
(B)(i) The heading of such section is amended to read
as follows:
‘‘§ 424. Disclosure of organizational and personnel informa-
tion: exemption for specified intelligence agen-
cies’’.
(ii) The item relating to that section in the table of sections
at the beginning of subchapter I of chapter 21 is amended
to read as follows:
‘‘424. Disclosure of organizational and personnel information: exemption for speci-
fied intelligence agencies.’’.
(6) Section 425(a) is amended by adding at the end the
following new paragraph:
‘‘(5) The words ‘National Geospatial-Intelligence Agency’,
the initials ‘NGA,’ or the seal of the National Geospatial-Intel-
ligence Agency.’’.
(7) Section 1614(2)(C) is amended by striking ‘‘National
Imagery and Mapping Agency’’ and inserting ‘‘National
Geospatial-Intelligence Agency’’.
(8) The tables of chapters at the beginning of subtitle
A, and at the beginning of part I of subtitle A, are each
amended by striking ‘‘Imagery and Mapping’’ in the item
relating to chapter 22 and inserting ‘‘Geospatial-Intelligence’’.
(e) CONFORMING AMENDMENTS TO NATIONAL SECURITY ACT OF
1947.—The National Security Act of 1947 is amended as follows:
(1) Section 3 (50 U.S.C. 401a) is amended by striking
‘‘National Imagery and Mapping Agency’’ in paragraph (4)(E)
and inserting ‘‘National Geospatial-Intelligence Agency’’.
(2) Section 105 (50 U.S.C. 403–5) is amended by striking
‘‘National Imagery and Mapping Agency’’ in subsections (b)(2)
and (d)(3) and inserting ‘‘National Geospatial-Intelligence
Agency’’.
(3) Section 105A (50 U.S.C. 403–5a) is amended by striking
‘‘National Imagery and Mapping Agency’’ in subsection (b)(1)(C)
and inserting ‘‘National Geospatial-Intelligence Agency’’.
(4) Section 105C (50 U.S.C. 403–5c) is amended—
(A) by striking ‘‘National Imagery and Mapping
Agency’’ each place it appears and inserting ‘‘National
Geospatial-Intelligence Agency’’;
(B) by striking ‘‘NIMA’’ each place it appears and
inserting ‘‘NGA’’; and
(C) by striking ‘‘NIMA’s’’ in subsection (a)(6)(B)(iv)(II)
and inserting ‘‘NGA’s’’.
(5) Section 106 (50 U.S.C. 403–6) is amended by striking
‘‘National Imagery and Mapping Agency’’ in subsection (a)(2)(C)
and inserting ‘‘National Geospatial-Intelligence Agency’’.
(6) Section 110 (50 U.S.C. 404e) is amended—
(A) by striking ‘‘National Imagery and Mapping
Agency’’ in subsections (a), (b), and (c) and inserting
‘‘National Geospatial-Intelligence Agency’’; and
H. R. 1588—179
(B) by striking ‘‘NATIONAL
IMAGERY
AND
MAPPING
AGENCY’’ in the section heading and inserting ‘‘NATIONAL
GEOSPATIAL-INTELLIGENCE AGENCY’’.
(7) The item relating to section 110 in the table of contents
in the first section is amended to read as follows:
‘‘Sec. 110. National mission of National Geospatial-Intelligence Agency.’’.
(f) CROSS REFERENCE CORRECTION.—Section 442(d) of title 10,
United States Code, is amended by striking ‘‘section 120(a) of the
National Security Act of 1947’’ and inserting ‘‘section 110(a) of
the National Security Act of 1947 (50 U.S.C. 404e(a))’’.
(g) REFERENCES.—Any reference to the National Imagery and
Mapping Agency in any law, regulation, map, document, record,
or other paper of the United States shall be considered to be
a reference to the National Geospatial-Intelligence Agency.
SEC. 922. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL
SECURITY AGENCY.
(a) PROTECTION
OF OPERATIONAL FILES
OF NSA.—Title VII
of the National Security Act of 1947 (50 U.S.C. 431 et seq.) is
amended by adding at the end the following new section:
‘‘OPERATIONAL FILES OF THE NATIONAL SECURITY AGENCY
‘‘SEC. 704. (a) EXEMPTION OF CERTAIN OPERATIONAL FILES FROM
SEARCH, REVIEW, PUBLICATION, OR DISCLOSURE.—The Director of
the National Security Agency, in coordination with the Director
of Central Intelligence, may exempt operational files of the National
Security Agency from the provisions of section 552 of title 5, United
States Code, which require publication, disclosure, search, or review
in connection therewith.
‘‘(b) OPERATIONAL FILES DEFINED.—(1) In this section, the term
‘operational files’ means—
‘‘(A) files of the Signals Intelligence Directorate of the
National Security Agency (and any successor organization of
that directorate) that document the means by which foreign
intelligence or counterintelligence is collected through technical
systems; and
‘‘(B) files of the Research Associate Directorate of the
National Security Agency (and any successor organization of
that directorate) that document the means by which foreign
intelligence or counterintelligence is collected through scientific
and technical systems.
‘‘(2) Files that are the sole repository of disseminated intel-
ligence, and files that have been accessioned into the National
Security Agency Archives (or any successor organization) are not
operational files.
‘‘(c) SEARCH AND REVIEW FOR INFORMATION.—Notwithstanding
subsection (a), exempted operational files shall continue to be sub-
ject to search and review for information concerning any of the
following:
‘‘(1) United States citizens or aliens lawfully admitted for
permanent residence who have requested information on them-
selves pursuant to the provisions of section 552 or 552a of
title 5, United States Code.
‘‘(2) Any special activity the existence of which is not
exempt from disclosure under the provisions of section 552
of title 5, United States Code.
H. R. 1588—180
‘‘(3) The specific subject matter of an investigation by any
of the following for any impropriety, or violation of law, Execu-
tive order, or Presidential directive, in the conduct of an intel-
ligence activity:
‘‘(A) The Committee on Armed Services and the Perma-
nent Select Committee on Intelligence of the House of
Representatives.
‘‘(B) The Committee on Armed Services and the Select
Committee on Intelligence of the Senate.
‘‘(C) The Intelligence Oversight Board.
‘‘(D) The Department of Justice.
‘‘(E) The Office of General Counsel of the National
Security Agency.
‘‘(F) The Office of the Inspector General of the Depart-
ment of Defense.
‘‘(G) The Office of the Director of the National Security
Agency.
‘‘(d) INFORMATION DERIVED OR DISSEMINATED FROM EXEMPTED
OPERATIONAL FILES.—(1) Files that are not exempted under sub-
section (a) that contain information derived or disseminated from
exempted operational files shall be subject to search and review.
‘‘(2) The inclusion of information from exempted operational
files in files that are not exempted under subsection (a) shall
not affect the exemption under subsection (a) of the originating
operational files from search, review, publication, or disclosure.
‘‘(3) The declassification of some of the information contained
in exempted operational files shall not affect the status of the
operational file as being exempt from search, review, publication,
or disclosure.
‘‘(4) Records from exempted operational files that have been
disseminated to and referenced in files that are not exempted
under subsection (a) and that have been returned to exempted
operational files for sole retention shall be subject to search and
review.
‘‘(e) SUPERCEDURE OF OTHER LAWS.—The provisions of sub-
section (a) may not be superseded except by a provision of law
that is enacted after the date of the enactment of this section
and that specifically cites and repeals or modifies such provisions.
‘‘(f) 
ALLEGATION; 
IMPROPER
WITHHOLDING
OF
RECORDS;
JUDICIAL REVIEW.—(1) Except as provided in paragraph (2), when-
ever any person who has requested agency records under section
552 of title 5, United States Code, alleges that the National Security
Agency has withheld records improperly because of failure to comply
with any provision of this section, judicial review shall be available
under the terms set forth in section 552(a)(4)(B) of title 5, United
States Code.
‘‘(2) Judicial review shall not be available in the manner pro-
vided for under paragraph (1) as follows:
‘‘(A) In any case in which information specifically author-
ized under criteria established by an Executive order to be
kept secret in the interests of national defense or foreign rela-
tions is filed with, or produced for, the court by the National
Security Agency, such information shall be examined ex parte,
in camera by the court.
‘‘(B) The court shall determine, to the fullest extent prac-
ticable, the issues of fact based on sworn written submissions
of the parties.
H. R. 1588—181
‘‘(C) When a complainant alleges that requested records
are improperly withheld because of improper placement solely
in exempted operational files, the complainant shall support
such allegation with a sworn written submission based upon
personal knowledge or otherwise admissible evidence.
‘‘(D)(i) When a complainant alleges that requested records
were improperly withheld because of improper exemption of
operational files, the National Security Agency shall meet its
burden under section 552(a)(4)(B) of title 5, United States Code,
by demonstrating to the court by sworn written submission
that exempted operational files likely to contain responsible
records currently perform the functions set forth in subsection
(b).
‘‘(ii) The court may not order the National Security Agency
to review the content of any exempted operational file or files
in order to make the demonstration required under clause
(i), unless the complainant disputes the National Security
Agency’s showing with a sworn written submission based on
personal knowledge or otherwise admissible evidence.
‘‘(E) In proceedings under subparagraphs (C) and (D), the
parties may not obtain discovery pursuant to rules 26 through
36 of the Federal Rules of Civil Procedure, except that requests
for admissions may be made pursuant to rules 26 and 36.
‘‘(F) If the court finds under this subsection that the
National Security Agency has improperly withheld requested
records because of failure to comply with any provision of
this subsection, the court shall order the Agency to search
and review the appropriate exempted operational file or files
for the requested records and make such records, or portions
thereof, available in accordance with the provisions of section
552 of title 5, United States Code, and such order shall be
the exclusive remedy for failure to comply with this section
(other than subsection (g)).
‘‘(G) If at any time following the filing of a complaint
pursuant to this paragraph the National Security Agency agrees
to search the appropriate exempted operational file or files
for the requested records, the court shall dismiss the claim
based upon such complaint.
‘‘(H) Any information filed with, or produced for the court
pursuant to subparagraphs (A) and (D) shall be coordinated
with the Director of Central Intelligence before submission
to the court.
‘‘(g) DECENNIAL REVIEW OF EXEMPTED OPERATIONAL FILES.—
(1) Not less than once every 10 years, the Director of the National
Security Agency and the Director of Central Intelligence shall
review the exemptions in force under subsection (a) to determine
whether such exemptions may be removed from a category of
exempted files or any portion thereof. The Director of Central
Intelligence must approve any determination to remove such exemp-
tions.
‘‘(2) The review required by paragraph (1) shall include consid-
eration of the historical value or other public interest in the subject
matter of a particular category of files or portions thereof and
the potential for declassifying a significant part of the information
contained therein.
‘‘(3) A complainant that alleges that the National Security
Agency has improperly withheld records because of failure to comply
H. R. 1588—182
with this subsection may seek judicial review in the district court
of the United States of the district in which any of the parties
reside, or in the District of Columbia. In such a proceeding, the
court’s review shall be limited to determining the following:
‘‘(A) Whether the National Security Agency has conducted
the review required by paragraph (1) before the expiration
of the 10-year period beginning on the date of the enactment
of this section or before the expiration of the 10-year period
beginning on the date of the most recent review.
‘‘(B) Whether the National Security Agency, in fact, consid-
ered the criteria set forth in paragraph (2) in conducting the
required review.’’.
(b) CONSOLIDATION OF CURRENT PROVISIONS ON PROTECTION
OF OPERATIONAL FILES OF CIA.—Title VII of such Act is further
amended—
(1) in section 701(b) (50 U.S.C. 431(b)), by striking ‘‘For
purposes of this title’’ and inserting ‘‘In this section,’’; and
(2) in section 702 (50 U.S.C. 432)—
(A) by striking the section heading;
(B) by redesignating the text of that section as sub-
section (g) of section 701 and redesignating subsections
(a), (b), and (c) thereof as paragraphs (1), (2), and (3),
respectively;
(C) by inserting ‘‘DECENNIAL REVIEW
OF EXEMPTED
OPERATIONAL FILES.—’’ after the subsection designation
(as designated by subparagraph (B));
(D) in paragraph (1) (as redesignated by subparagraph
(B)), by striking ‘‘of section 701 of this Act’’;
(E) in paragraph (2) (as redesignated by subparagraph
(B)), by striking ‘‘of subsection (a) of this section’’ and
inserting ‘‘paragraph (1)’’; and
(F) in paragraph (3) (as redesignated by subparagraph
(B))—
(i) by striking ‘‘with this section’’ in the first sen-
tence and inserting ‘‘with this subsection’’; and
(ii) by striking ‘‘to determining’’ in the second sen-
tence and all that follows and inserting ‘‘to determining
the following:
‘‘(A) Whether the Central Intelligence Agency has con-
ducted the review required by paragraph (1) before October
15, 1994, or before the expiration of the 10-year period begin-
ning on the date of the most recent review.
‘‘(B) Whether the Central Intelligence Agency, in fact,
considered the criteria set forth in paragraph (2) in conducting
the required review.’’.
(c) CONSOLIDATION OF CURRENT PROVISIONS ON PROTECTION
OF OPERATIONAL FILES OF CERTAIN OTHER INTELLIGENCE AGEN-
CIES.—The National Security Act of 1947 (50 U.S.C. 401 et seq.)
is further amended—
(1) by transferring section 105C (50 U.S.C. 403–5c), as
amended by section 921(e)(4), and section 105D (50 U.S.C.
403–5e) to title VII of that Act and inserting them after section
701, as amended by subsection (b); and
(2) by redesignating those sections, as so transferred, as
sections 702 and 703, respectively.
(d) CLERICAL AMENDMENTS.—The National Security Act of 1947
is further amended as follows:
H. R. 1588—183
(1)(A) The heading for title VII is amended to read as
follows:
‘‘TITLE VII—PROTECTION OF OPERATIONAL FILES’’.
(B) The heading for section 701 is amended to read as
follows:
‘‘OPERATIONAL FILES OF THE CENTRAL INTELLIGENCE AGENCY’’.
(C) The heading for section 702, as transferred and redesig-
nated by subsection (c), is amended to read as follows:
‘‘OPERATIONAL FILES OF THE NATIONAL GEOSPATIAL-INTELLIGENCE
AGENCY’’.
(D) The heading for section 703, as transferred and redesig-
nated by subsection (c), is amended by striking the first two
words.
(2) The table of contents in the first section of the National
Security Act of 1947 is amended—
(A) by striking the items relating to sections 105C
and 105D; and
(B) by striking the items relating to title VII and
sections 701 and 702 and inserting the following new items:
‘‘TITLE VII—PROTECTION OF OPERATIONAL FILES
‘‘Sec. 701. Operational files of the Central Intelligence Agency.
‘‘Sec. 702. Operational files of the National Geospatial-Intelligence Agency.
‘‘Sec. 703. Operational files of the National Reconnaissance Office.
‘‘Sec. 704. Operational files of the National Security Agency.’’.
SEC. 923. INTEGRATION OF DEFENSE INTELLIGENCE, SURVEILLANCE,
AND RECONNAISSANCE CAPABILITIES.
(a) FINDINGS.—Congress makes the following findings:
(1) As part of transformation efforts within the Department
of Defense, each of the Armed Forces is developing intelligence,
surveillance, and reconnaissance capabilities that best support
future war fighting as envisioned by the leadership of the
military department concerned.
(2) Concurrently, intelligence agencies of the Department
of Defense outside the military departments are developing
transformation roadmaps to best support the future decision-
making and war fighting needs of their principal customers,
but are not always closely coordinating those efforts with the
intelligence, surveillance, and reconnaissance development
efforts of the military departments.
(3) A senior official of each military department has been
designated as the integrator of intelligence, surveillance, and
reconnaissance for each of the Armed Forces in such military
department, but there is not currently a well-defined forum
through which the integrators of intelligence, surveillance, and
reconnaissance capabilities for each of the Armed Forces can
routinely interact with each other and with senior representa-
tives of Department of Defense intelligence agencies, as well
as with other members of the intelligence community, to ensure
unity of effort and to preclude unnecessary duplication of effort.
H. R. 1588—184
(4) The current funding structure of a National Foreign
Intelligence Program (NFIP), Joint Military Intelligence Pro-
gram (JMIP), and Tactical Intelligence and Related Activities
Program (TIARA) may not be the best approach for supporting
the development of an intelligence, surveillance, and reconnais-
sance structure that is integrated to meet the national security
requirements of the United States in the 21st century.
(5) The position of Under Secretary of Defense for Intel-
ligence was established in 2002 by Public Law 107–314 in
order to facilitate resolution of the challenges to achieving
an integrated intelligence, surveillance, and reconnaissance
structure in the Department of Defense to meet such 21st
century requirements.
(b) GOAL.—It shall be a goal of the Department of Defense
to fully integrate the intelligence, surveillance, and reconnaissance
capabilities and coordinate the developmental activities of the mili-
tary departments, intelligence agencies of the Department of
Defense, and relevant combatant commands as those departments,
agencies, and commands transform their intelligence, surveillance,
and reconnaissance systems to meet current and future needs.
(c) ISR INTEGRATION REQUIREMENTS.—(1) Subchapter I of
chapter 21 of title 10, United States Code, is amended by adding
at the end the following new section:
‘‘§ 426. Integration of Department of Defense intelligence,
surveillance, and reconnaissance capabilities
‘‘(a) ISR INTEGRATION COUNCIL.—(1) The Under Secretary of
Defense for Intelligence shall establish an Intelligence, Surveillance,
and Reconnaissance Integration Council—
‘‘(A) to assist the Under Secretary with respect to matters
relating to the integration of intelligence, surveillance, and
reconnaissance capabilities, and coordination of related develop-
mental activities, of the military departments, intelligence
agencies of the Department of Defense, and relevant combatant
commands; and
‘‘(B) otherwise to provide a means to facilitate the integra-
tion of such capabilities and the coordiation of such develop-
mental activities.
‘‘(2) The Council shall be composed of—
‘‘(A) the senior intelligence officers of the armed forces
and the United States Special Operations Command;
‘‘(B) the Director of Operations of the Joint Staff; and
‘‘(C) the directors of the intelligence agencies of the Depart-
ment of Defense.
‘‘(3) The Under Secretary of Defense for Intelligence shall invite
the participation of the Director of Central Intelligence (or that
Director’s representative) in the proceedings of the Council.
‘‘(b) ISR INTEGRATION ROADMAP.—(1) The Under Secretary of
Defense for Intelligence shall develop a comprehensive plan, to
be known as the ‘Defense Intelligence, Surveillance, and Reconnais-
sance Integration Roadmap’, to guide the development and integra-
tion of the Department of Defense intelligence, surveillance, and
reconnaissance capabilities for the 15-year period of fiscal years
2004 through 2018.
H. R. 1588—185
‘‘(2) The Under Secretary shall develop the Defense Intelligence,
Surveillance, and Reconnaissance Integration Roadmap in consulta-
tion with the Intelligence, Surveillance, and Reconnaissance
Integration Council and the Director of Central Intelligence.’’.
(2) The table of sections at the beginning of such subchapter
is amended by adding at the end the following new item:
‘‘426. Integration of Department of Defense intelligence, surveillance, and reconnais-
sance capabilities.’’.
(d) REPORT.—(1) Not later than September 30, 2004, the Under
Secretary of Defense for Intelligence shall submit to the committees
of Congress specified in paragraph (2) a report on the Defense
Intelligence, 
Surveillance, 
and 
Reconnaissance 
Integration
Roadmap developed under subsection (b) of section 426 of title
10, United States Code, as added by subsection (c). The report
shall include the following matters:
(A) The fundamental goals established in the roadmap.
(B) An overview of the intelligence, surveillance, and recon-
naissance integration activities of the military departments
and the intelligence agencies of the Department of Defense.
(C) An investment strategy for achieving—
(i) an integration of Department of Defense intel-
ligence, surveillance, and reconnaissance capabilities that
ensures sustainment of needed tactical and operational
efforts; and
(ii) efficient investment in new intelligence, surveil-
lance, and reconnaissance capabilities.
(D) A discussion of how intelligence gathered and analyzed
by the Department of Defense can enhance the role of the
Department of Defense in fulfilling its homeland security
responsibilities.
(E) A discussion of how counterintelligence activities of
the Armed Forces and the Department of Defense intelligence
agencies can be better integrated.
(F) Recommendations on how annual funding authoriza-
tions and appropriations can be optimally structured to best
support the development of a fully integrated Department of
Defense intelligence, surveillance, and reconnaissance architec-
ture.
(2) The committees of Congress referred to in paragraph (1)
are as follows:
(A) The Committee on Armed Services, the Committee
on Appropriations, and the Select Committee on Intelligence
of the Senate.
(B) The Committee on Armed Services, the Committee
on Appropriations, and the Permanent Select Committee on
Intelligence of the House of Representatives.
SEC. 924. MANAGEMENT OF NATIONAL SECURITY AGENCY MOD-
ERNIZATION PROGRAM.
(a) MANAGEMENT OF ACQUISITION PROGRAMS THROUGH USD
(AT&L).—The Secretary of Defense shall direct that, effective as
of the date of the enactment of this Act, acquisitions under the
National Security Agency Modernization Program shall be directed
and managed by the Under Secretary of Defense for Acquisition,
Technology, and Logistics.
(b) APPLICABILITY OF MAJOR DEFENSE ACQUISITION PROGRAM
AUTHORITIES.—(1) Each project designated as a major defense
H. R. 1588—186
acquisition program under paragraph (2) shall be managed under
the laws, policies, and procedures that are applicable to major
defense acquisition programs (as defined in section 2430 of title
10, United States Code).
(2) The Secretary of Defense (acting through the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics) shall
designate those projects under the National Security Agency Mod-
ernization Program that are to be managed as major defense
acquisition programs.
(c) MILESTONE DECISION AUTHORITY.—(1) The authority to
make a decision that a program is authorized to proceed from
one milestone stage into another (referred to as the milestone
decision authority) may only be exercised by the Under Secretary
of Defense for Acquisition, Technology, and Logistics for the fol-
lowing:
(A) Each project of the National Security Agency Mod-
ernization Program that is to be managed as a major defense
acquisition program, as designated under subsection (b).
(B) Each major system under the National Security Agency
Modernization Program.
(2) The limitation in paragraph (1) shall terminate on, and
the Under Secretary may delegate the milestone decision authority
referred to in paragraph (1) to the Director of the National Security
Agency at any time after, the date that is the later of—
(A) September 30, 2005, or
(B) the date on which the Under Secretary submits to
the appropriate committees of Congress a notification described
in paragraph (3).
(3) A notification described in this paragraph is a notification
by the Under Secretary of the Under Secretary’s intention to dele-
gate the milestone decision authority referred to in paragraph (1)
to the Director of the National Security Agency, together with
a detailed discussion of the justification for that delegation. Such
a notification may not be submitted until—
(A) the Under Secretary has determined (after consultation
with the Under Secretary of Defense for Intelligence and the
Deputy Director of Central Intelligence for Community Manage-
ment) that the Director has implemented acquisition manage-
ment policies, procedures, and practices that are sufficient to
ensure that acquisitions by the National Security Agency are
conducted in a manner consistent with sound, efficient acquisi-
tion practices;
(B) the Under Secretary has consulted with the Under
Secretary of Defense for Intelligence and the Deputy Director
of Central Intelligence for Community Management on the
delegation of such milestone decision authority to the Director;
and
(C) the Secretary of Defense has approved the delegation
of such milestone decision authority to the Director.
(d) PROJECTS COMPRISING PROGRAM.—The National Security
Agency Modernization Program consists of the following projects
of the National Security Agency:
(1) The Trailblazer project.
(2) The Groundbreaker project.
(3) Each cryptological mission management project.
(4) Each other project of that Agency that—
H. R. 1588—187
(A) meets either of the dollar thresholds in effect under
paragraph (2) of section 2430(a) of title 10, United States
Code; and
(B) is determined by the Under Secretary of Defense
for Acquisition, Technology, and Logistics as being a major
project that is within, or properly should be within, the
National Security Agency Modernization Project.
(e) DEFINITIONS.—In this section:
(1) MAJOR
SYSTEM.—The term ‘‘major system’’ has the
meaning given that term in section 2302(5) of title 10, United
States Code.
(2) APPROPRIATE
COMMITTEES
OF
CONGRESS.—The term
‘‘appropriate committees of Congress’’ means the following:
(A) The Committee on Armed Services and the Select
Committee on Intelligence of the Senate.
(B) The Committee on Armed Services and the Perma-
nent Select Committee on Intelligence of the House of
Representatives.
SEC. 925. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS
UNDER NATIONAL SECURITY EDUCATION PROGRAM.
(a) IN GENERAL.—Section 802(b)(2) of the David L. Boren
National Security Education Act of 1991 (50 U.S.C. 1902(b)(2))
is amended by striking subparagraphs (A) and (B) and inserting
the following new subparagraphs (A) and (B):
‘‘(A) in the case of a recipient of a scholarship, after
the recipient’s completion of the study for which scholarship
assistance was provided under the program, work in a
position in the Department of Defense or other element
of the intelligence community that is certified by the Sec-
retary as appropriate to utilize the unique language and
region expertise acquired by the recipient pursuant to such
study for a period specified by the Secretary, which period
shall include one year of service for each year, or portion
thereof, for which such scholarship assistance was provided;
or
‘‘(B) in the case of a recipient of a fellowship, after
the recipient’s completion of the study for which the fellow-
ship assistance was provided under the program, work
in a position described in subparagraph (A) that is certified
by the Secretary as appropriate to utilize the unique lan-
guage and region expertise acquired by the recipient pursu-
ant to such study for a period specified by the Secretary,
which period shall (at the discretion of the Secretary)
include not less than one nor more than three years for
each year, or portion thereof, for which such fellowship
assistance was provided; and’’.
(b) APPLICABILITY.—(1) The amendment made by subsection
(a) shall apply with respect to service agreements entered into
under the David L. Boren National Security Education Act of 1991
on or after the date of the enactment of this Act.
(2) The amendment made by subsection (a) shall not affect
the force, validity, or terms of any service agreement entered into
under the David L. Boren National Security Education Act of 1991
before the date of the enactment of this Act that is in force as
of that date.
H. R. 1588—188
SEC. 926. AUTHORITY TO PROVIDE LIVING QUARTERS FOR CERTAIN
STUDENTS IN COOPERATIVE AND SUMMER EDUCATION
PROGRAMS OF THE NATIONAL SECURITY AGENCY.
Section 2195 of title 10, United States Code, is amended by
adding at the end the following new subsection:
‘‘(d)(1) The Director of the National Security Agency may pro-
vide a qualifying employee of a defense laboratory of that Agency
with living quarters at no charge, or at a rate or charge prescribed
by the Director by regulation, without regard to section 5911(c)
of title 5.
‘‘(2) In this subsection, the term ‘qualifying employee’ means
a student who is employed at the National Security Agency under—
‘‘(A) a Student Educational Employment Program of the
Agency conducted under this section or any other provision
of law; or
‘‘(B) a similar cooperative or summer education program
of the Agency that meets the criteria for Federal cooperative
or summer education programs prescribed by the Office of
Personnel Management.’’.
SEC. 927. COMMERCIAL IMAGERY INDUSTRIAL BASE.
(a) REQUIREMENT.—Of the total amount authorized to be appro-
priated for fiscal year 2004 for the acquisition, processing, and
licensing of imagery from commercial sources (including amounts
authorized to be appropriated under that title for experimentation
related to such imagery), not less than 90 percent shall be used
for the following purposes:
(1) Acquisition of space-based imagery from commercial
sources.
(2) Support for the development of next-generation commer-
cial imagery satellites.
(3) Support for infrastructure improvements that meet
unique requirements related to commercial imagery.
(b) WAIVER.—(1) The Secretary of Defense may waive the
requirement in subsection (a) if the Secretary determines that the
waiver is in the national security interest of the United States.
Any such waiver shall be made in consultation with the Director
of Central Intelligence.
(2) If the Secretary makes the waiver authorized by paragraph
(1), the Secretary shall, within 30 days of issuing the waiver,
submit to the appropriate congressional committees a report that
includes the following:
(A) The Secretary’s reasons for determining that the waiver
is in the national security interest of the United States.
(B) The Secretary’s plan for use of the amount referred
to in subsection (a).
(c) REPORT ON DEPARTMENT OF DEFENSE IMPLEMENTATION OF
PRESIDENT’S COMMERCIAL REMOTE SENSING POLICY.—(1) Not later
than March 1, 2004, the Secretary of Defense shall submit to
the appropriate congressional committees a report on the actions
taken, and to be taken, by the Secretary to implement the Presi-
dent’s policy issued on May 13, 2003, with the title ‘‘U.S. Commer-
cial Remote Sensing Space Policy’’. The Secretary shall consult
with the Director of Central Intelligence in preparing the report.
(2) The report under paragraph (1) shall include an assessment
of the following matters:
H. R. 1588—189
(A) The sufficiency for the sustainment of a viable commer-
cial imagery industrial base in the United States of—
(i) the President’s policy referred to in paragraph (1);
(ii) the amount provided for the Department of Defense
for fiscal year 2004 for the acquisition of imagery from
commercial sources; and
(iii) the amounts scheduled in the future-years defense
program (as of the submission of the report) for the acquisi-
tion of imagery from commercial sources.
(B) The extent to which the President’s policy referred
to in paragraph (1) and Department of Defense programs
relating to the procurement of imagery from commercial sources
are sufficient to ensure that imagery is available to the Depart-
ment of Defense from United States commercial sources to
meet the needs of the Department of Defense in a timely
manner.
(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—For the pur-
poses of this section, the term ‘‘appropriate congressional commit-
tees’’ means—
(1) the Committee on Armed Services, the Select Committee
on Intelligence, and the Committee on Appropriations of the
Senate; and
(2) the Committee on Armed Services, the Permanent Select
Committee on Intelligence, and the Committee on Appropria-
tions of the House of Representatives.
Subtitle D—Other Matters
SEC. 931. AUTHORITY FOR ASIA-PACIFIC CENTER FOR SECURITY
STUDIES TO ACCEPT GIFTS AND DONATIONS.
(a) AUTHORIZED SOURCES
OF GIFTS
AND DONATIONS.—Sub-
section (a) of section 2611 of title 10, United States Code, is
amended—
(1) in paragraph (1), by striking ‘‘foreign gifts and dona-
tions’’ and inserting ‘‘gifts and donations from sources described
in paragraph (2)’’;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new para-
graph (2):
‘‘(2) The sources from which gifts and donations may be
accepted under paragraph (1) are the following:
‘‘(A) The government of a State or a political subdivision
of a State.
‘‘(B) The government of a foreign country.
‘‘(C) A foundation or other charitable organization,
including a foundation or charitable organization that is orga-
nized or operates under the laws of a foreign country.
‘‘(D) Any source in the private sector of the United States
or a foreign country.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 2611 of such title
is further amended—
(A) by striking ‘‘FOREIGN’’ in the headings for subsections
(a) and (f);
(B) in subsection (c), by striking ‘‘foreign’’; and
(C) in subsection (f)—
(i) by striking ‘‘foreign’’ after ‘‘section, a’’; and
H. R. 1588—190
(ii) by striking ‘‘from a foreign’’ and all that follows
through ‘‘country.’’ and inserting a period.
(2) Section 184(b)(4) of such title is amended by striking ‘‘for-
eign’’.
(c) CLERICAL AMENDMENTS.—The heading of section 2611 of
such title, and the item relating to such section in the table of
sections at the beginning of chapter 155 of such title, are each
amended by striking the third word after the colon.
(d) CROSS REFERENCE CORRECTION.—Section 2612(a) of such
title is amended by striking ‘‘2611(f)’’ and inserting ‘‘2166(f)(4)’’.
SEC. 932. REPEAL OF ROTATING CHAIRMANSHIP OF ECONOMIC
ADJUSTMENT COMMITTEE.
Section 4004(b) of the Defense Economic Adjustment, Diver-
sification, Conversion, and Stabilization Act of 1990 (division D
of Public Law 101–510; 10 U.S.C. 2391 note) is amended—
(1) by striking ‘‘Until October 1, 1997, the’’ and inserting
‘‘The’’; and
(2) by striking the second sentence.
SEC. 933. EXTENSION OF CERTAIN AUTHORITIES APPLICABLE TO THE
PENTAGON RESERVATION TO INCLUDE A DESIGNATED
PENTAGON CONTINUITY-OF-GOVERNMENT LOCATION.
Section 2674 of title 10, United States Code, is amended by
adding at the end the following new subsection:
‘‘(g) For purposes of subsections (b), (c), (d), and (e), the terms
‘Pentagon Reservation’ and ‘National Capital Region’ shall be
treated as including the land and physical facilities at the Raven
Rock Mountain Complex.’’.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in fiscal
year 2004.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 2003.
Sec. 1004. Authorization of supplemental appropriations for fiscal year 2004.
Sec. 1005. Reestablishment of authority for short-term leases of real or personal
property across fiscal years.
Sec. 1006. Reimbursement rate for certain airlift services provided to Department
of State.
Sec. 1007. Limitation on payment of facilities charges assessed by Department of
State.
Sec. 1008. Use of the Defense Modernization Account for life cycle cost reduction
initiatives.
Sec. 1009. Provisions relating to defense travel cards.
Subtitle B—Naval Vessels and Shipyards
Sec. 1011. Repeal of requirement regarding preservation of surge capability for
naval surface combatants.
Sec. 1012. Enhancement of authority relating to use for experimental purposes of
vessels stricken from Naval Vessel Register.
Sec. 1013. Transfer of vessels stricken from the Naval Vessel Register for use as
artificial reefs.
Sec. 1014. Priority for title XI assistance.
Sec. 1015. Support for transfers of decommissioned vessels and shipboard equip-
ment.
Sec. 1016. Advanced shipbuilding enterprise.
Sec. 1017. Report on Navy plans for basing aircraft carriers.
Sec. 1018. Limitation on disposal of obsolete naval vessel.
H. R. 1588—191
Subtitle C—Counterdrug Matters
Sec. 1021. Expansion and extension of authority to provide additional support for
counter-drug activities.
Sec. 1022. Authority for joint task forces to provide support to law enforcement
agencies conducting counter-terrorism activities.
Sec. 1023. Use of funds for unified counterdrug and counterterrorism campaign in
Colombia.
Sec. 1024. Sense of Congress on reconsideration of decision to terminate border and
seaport inspection duties of National Guard under National Guard drug
interdiction and counter-drug mission.
Subtitle D—Reports
Sec. 1031. Repeal and modification of various reporting requirements applicable to
the Department of Defense.
Sec. 1032. Plan for prompt global strike capability.
Sec. 1033. Annual report concerning dismantling of strategic nuclear warheads.
Sec. 1034. Report on use of unmanned aerial vehicles for support of homeland secu-
rity missions.
Subtitle E—Codifications, Definitions, and Technical Amendments
Sec. 1041. Codification and revision of defense counterintelligence polygraph pro-
gram authority.
Sec. 1042. General definitions applicable to facilities and operations of Department
of Defense.
Sec. 1043. Additional definitions for purposes of title 10, United States Code.
Sec. 1044. Inclusion of annual military construction authorization request in an-
nual defense authorization request.
Sec. 1045. Technical and clerical amendments.
Subtitle F—Other Matters
Sec. 1051. Assessment of effects of specified statutory limitations on the granting
of security clearances.
Sec. 1052. Acquisition of historical artifacts through exchange of obsolete or surplus
property.
Sec. 1053. Conveyance of surplus T–37 aircraft to Air Force Aviation Heritage
Foundation, Incorporated.
Sec. 1054. Department of Defense biennial strategic plan for management of elec-
tromagnetic spectrum.
Sec. 1055. Revision of Department of Defense directive relating to management and
use of radio frequency spectrum.
Sec. 1056. Sense of Congress on deployment of airborne chemical agent monitoring
systems at chemical stockpile disposal sites in the United States.
Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of United
States Fire Administration.
Sec. 1058. Review and enhancement of existing authorities for using Air Force and
Air National Guard Modular Airborne Fire-Fighting Systems and other
Department of Defense assets to fight wildfires.
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon deter-
mination by the Secretary of Defense that such action is necessary
in the national interest, the Secretary may transfer amounts of
authorizations made available to the Department of Defense in
this division for fiscal year 2004 between any such authorizations
for that fiscal year (or any subdivisions thereof). Amounts of
authorizations so transferred shall be merged with and be available
for the same purposes as the authorization to which transferred.
(2) The total amount of authorizations that the Secretary may
transfer under the authority of this section may not exceed
$2,500,000,000.
(b) LIMITATIONS.—The authority provided by this section to
transfer authorizations—
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority
is transferred; and
H. R. 1588—192
(2) may not be used to provide authority for an item that
has been denied authorization by Congress.
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made
from one account to another under the authority of this section
shall be deemed to increase the amount authorized for the account
to which the amount is transferred by an amount equal to the
amount transferred.
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify
Congress of each transfer made under subsection (a).
SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED
BUDGETS IN FISCAL YEAR 2004.
(a) FISCAL YEAR 2004 LIMITATION.—The total amount contrib-
uted by the Secretary of Defense in fiscal year 2004 for the common-
funded budgets of NATO may be any amount up to, but not in
excess of, the amount specified in subsection (b) (rather than the
maximum amount that would otherwise be applicable to those
contributions under the fiscal year 1998 baseline limitation).
(b) TOTAL AMOUNT.—The amount of the limitation applicable
under subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of the end
of fiscal year 2003, of funds appropriated for fiscal years before
fiscal year 2004 for payments for those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions authorized to
be made under section 2501.
(c) AUTHORIZED AMOUNTS.—Amounts authorized to be appro-
priated by titles II and III of this Act are available for contributions
for the common-funded budgets of NATO as follows:
(1) Of the amount provided in section 201(1), $853,000
for the Civil Budget.
(2) Of the amount provided in section 301(1), $207,125,000
for the Military Budget.
(d) DEFINITIONS.—For purposes of this section:
(1) 
COMMON-FUNDED
BUDGETS
OF
NATO.—The 
term
‘‘common-funded budgets of NATO’’ means the Military Budget,
the Security Investment Program, and the Civil Budget of
the North Atlantic Treaty Organization (and any successor
or additional account or program of NATO).
(2) FISCAL
YEAR
1998
BASELINE
LIMITATION.—The term
‘‘fiscal year 1998 baseline limitation’’ means the maximum
annual amount of Department of Defense contributions for
common-funded budgets of NATO that is set forth as the annual
limitation in section 3(2)(C)(ii) of the resolution of the Senate
giving the advice and consent of the Senate to the ratification
of the Protocols to the North Atlantic Treaty of 1949 on the
Accession of Poland, Hungary, and the Czech Republic (as
defined in section 4(7) of that resolution), approved by the
Senate on April 30, 1998.
SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR
FISCAL YEAR 2003.
(a) DOD AND DOE AUTHORIZATIONS.—Amounts authorized to
be appropriated to the Department of Defense and the Department
of Energy for fiscal year 2003 in the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107–314) are
hereby adjusted, with respect to any such authorized amount, by
H. R. 1588—193
the amount by which appropriations pursuant to such authorization
are increased (by a supplemental appropriation) or decreased (by
a rescission), or both, or are increased by a transfer of funds,
pursuant to title I of Public Law 108–11.
(b) REPORT ON FISCAL YEAR 2003 TRANSFERS.—Not later than
30 days after the end of each fiscal quarter for which unexpended
balances of funds appropriated under title I of Public Law 108–
11 are available for the Department of Defense, the Secretary
of Defense shall submit to the congressional defense committees
a report stating, for each transfer of such funds during such fiscal
quarter of an amount provided for the Department of Defense
through a so-called ‘‘transfer account’’, including the Iraqi Freedom
Fund or any other similar account—
(1) the amount of the transfer;
(2) the appropriation account to which the transfer was
made; and
(3) the specific purpose for which the transferred funds
were used or are to be used.
SEC. 1004. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR
FISCAL YEAR 2004.
(a) DEPARTMENT
OF
DEFENSE
AUTHORIZATIONS.—Amounts
authorized to be appropriated to the Department of Defense for
fiscal year 2004 in this Act are hereby increased, with respect
to any such amount, by the amount by which the corresponding
appropriation account of the Department of Defense for fiscal year
2004 is increased by a supplemental appropriation, or by a transfer
of funds, pursuant to title I of the Emergency Supplemental Appro-
priations Act for Defense and for the Reconstruction of Iraq and
Afghanistan, 2004.
(b) 
DESIGNATION
AS
EMERGENCY.—Amounts 
by 
which
authorizations of appropriations are increased in accordance with
subsection (a) are designated as emergency requirements pursuant
to section 502 of House Concurrent Resolution 95 of the 108th
Congress.
SEC. 1005. REESTABLISHMENT OF AUTHORITY FOR SHORT-TERM
LEASES OF REAL OR PERSONAL PROPERTY ACROSS
FISCAL YEARS.
(a) REESTABLISHMENT OF AUTHORITY.—Subsection (a) of section
2410a of title 10, United States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of Defense’’;
(2) by striking ‘‘for procurement of severable services’’ and
inserting ‘‘for a purpose described in paragraph (2)’’; and
(3) by adding at the end the following new paragraph:
‘‘(2) The purpose of a contract described in this paragraph
is as follows:
‘‘(A) The procurement of severable services.
‘‘(B) The lease of real or personal property, including the
maintenance of such property when contracted for as part of
the lease agreement.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of such section
is amended to read as follows:
H. R. 1588—194
‘‘§ 2410a. Contracts for periods crossing fiscal years: sever-
able service contracts; leases of real or personal
property’’.
(2) The item relating to such section in the table of sections
at the beginning of chapter 141 of such title is amended to read
as follows:
‘‘2410a. Contracts for periods crossing fiscal years: severable service contracts;
leases of real or personal property.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall not apply to funds appropriated for a fiscal year before fiscal
year 2004.
SEC. 1006. REIMBURSEMENT RATE FOR CERTAIN AIRLIFT SERVICES
PROVIDED TO DEPARTMENT OF STATE.
(a) AUTHORITY.—Subsection (a) of section 2642 of title 10,
United States Code, is amended—
(1) by striking ‘‘(a) AUTHORITY’’ and all that follows through
‘‘the Department of Defense’’ the second place it appears and
inserting the following:
‘‘(a) AUTHORITY.—The Secretary of Defense may authorize the
use of the Department of Defense reimbursement rate for military
airlift services provided by a component of the Department of
Defense as follows:
‘‘(1) For military airlift services provided’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) For military airlift services provided to the Department
of State for the transportation of armored motor vehicles to
a foreign country to meet requirements of the Department
of State for armored motor vehicles associated with the overseas
travel of the Secretary of State in that country.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading for such section
is amended to read as follows:
‘‘§ 2642. Airlift services provided to certain other agencies:
use of Department of Defense reimbursement
rate’’.
(2) The item relating to such section in the table of sections
at the beginning of chapter 157 of such title is amended to read
as follows:
‘‘2642. Airlift services provided to certain other agencies: use of Department of De-
fense reimbursement rate.’’.
SEC. 1007. LIMITATION ON PAYMENT OF FACILITIES CHARGES
ASSESSED BY DEPARTMENT OF STATE.
(a) COSTS OF GOODS AND SERVICES PROVIDED TO DEPARTMENT
OF STATE.—Funds appropriated for the Department of Defense may
be transferred to the Department of State as remittance for a
fee charged to the Department of Defense by the Department of
State for any year for the maintenance, upgrade, or construction
of United States diplomatic facilities only to the extent that the
amount charged (when added to other amounts previously so
charged for that fiscal year) exceeds the total amount of the unreim-
bursed costs incurred by the Department of Defense during that
year in providing goods and services to the Department of State.
(b) EFFECTIVE DATE.—Subsection (a) shall take effect as of
October 1, 2003.
H. R. 1588—195
SEC. 1008. USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE
CYCLE COST REDUCTION INITIATIVES.
(a) 
FUNDS
AVAILABLE
FOR
DEFENSE
MODERNIZATION
ACCOUNT.—Section 2216 of title 10, United States Code, is
amended—
(1) by striking subsection (c);
(2) by redesignating subsection (b) as subsection (c); and
(3) by inserting after subsection (a) the following new sub-
section (b):
‘‘(b) FUNDS AVAILABLE FOR ACCOUNT.—The Defense Moderniza-
tion Account shall consist of the following:
‘‘(1) Amounts appropriated to the Defense Modernization
Account for the costs of commencing projects described in sub-
section (d)(1), and amounts reimbursed to the Defense Mod-
ernization Account under subsections (c)(1)(B)(iii) out of savings
derived from such projects.
‘‘(2) Amounts transferred to the Defense Modernization
Account under subsection (c).’’.
(b) START-UP FUNDING.—Subsection (d) of such section is
amended—
(1) by striking ‘‘available from the Defense Modernization
Account pursuant to subsection (f) or (g)’’ and inserting ‘‘in
the Defense Modernization Account’’;
(2) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(3) by inserting after ‘‘purposes:’’ the following new para-
graph (1):
‘‘(1) For paying the costs of commencing any project that,
in accordance with criteria prescribed by the Secretary of
Defense, is undertaken by the Secretary of a military depart-
ment or the head of a Defense Agency or other element of
the Department of Defense to reduce the life cycle cost of
a new or existing system.’’.
(c) REIMBURSEMENT OF ACCOUNT OUT OF SAVINGS.—(1) Para-
graph (1)(B) of subsection (c) of such section, as redesignated by
subsection (a)(2), is amended by adding at the end the following
new clause:
‘‘(iii) Unexpired funds in appropriations accounts that are
available for procurement or operation and maintenance of
a system, if and to the extent that savings are achieved for
such accounts through reductions in life cycle costs of such
system that result from one or more projects undertaken with
respect to such systems with funds made available from the
Defense Modernization Account under subsection (b)(1).’’.
(2) Paragraph (2) of such subsection is amended by inserting
‘‘, other than funds referred to in subparagraph (B)(iii) of such
paragraph,’’ after ‘‘Funds referred to in paragraph (1)’’.
(d) REGULATIONS.—Subsection (h) of such section is amended—
(1) by inserting ‘‘(1)’’ after ‘‘COMPTROLLER.—’’; and
(2) by adding at the end the following new paragraph
(2):
‘‘(2) The regulations prescribed under paragraph (1) shall, at
a minimum, provide for—
‘‘(A) the submission of proposals by the Secretaries con-
cerned or heads of Defense Agencies or other elements of the
Department of Defense to the Comptroller for the use of Defense
H. R. 1588—196
Modernization Account funds for purposes set forth in sub-
section (d);
‘‘(B) the use of a competitive process for the evaluation
of such proposals and the selection of programs, projects, and
activities to be funded out of the Defense Modernization
Account from among those proposed for such funding; and
‘‘(C) the calculation of—
‘‘(i) the savings to be derived from projects described
in subsection (d)(1) that are to be funded out of the Defense
Modernization Account; and
‘‘(ii) the amounts to be reimbursed to the Defense
Modernization Account out of such savings pursuant to
subsection (c)(1)(B)(iii).’’.
(e) ANNUAL
REPORT.—Subsection (i) of such section is
amended—
(1) by striking ‘‘QUARTERLY REPORTS.—(1) Not later than
15 days after the end of each calendar quarter,’’ and inserting
‘‘ANNUAL REPORT.—(1) Not later than 15 days after the end
of each fiscal year,’’; and
(2) in paragraph (1), by striking ‘‘quarter’’ in subparagraphs
(A), (B), and (C), and inserting ‘‘fiscal year’’.
(f) 
CODIFICATION
AND
EXTENSION
OF
EXPIRATION
OF
AUTHORITY.—(1) Such section is further amended by adding at
the end the following new subsection:
‘‘(k) EXPIRATION
OF
AUTHORITY
AND
ACCOUNT.—(1) The
authority under subsection (c) to transfer funds into the Defense
Modernization Account terminates at the close of September 30,
2006.
‘‘(2) Three years after the termination date specified in para-
graph (1), the Defense Modernization Account shall be closed and
any remaining balance in the account shall be canceled and there-
after shall not be available for any purpose.’’.
(2) Subsection (c) of section 912 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110
Stat. 410; 10 U.S.C. 2216 note) is repealed.
SEC. 1009. PROVISIONS RELATING TO DEFENSE TRAVEL CARDS.
(a) MANDATORY
DISBURSEMENT
OF
TRAVEL
ALLOWANCES
DIRECTLY TO TRAVEL CARD CREDITORS.—Section 2784a(a) of title
10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘The Secretary of Defense
may require’’ and inserting ‘‘The Secretary of Defense shall
require’’;
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following new para-
graph (2):
‘‘(2) The Secretary of Defense may waive the requirement for
a direct payment to a travel care issuer under paragraph (1) in
any case the Secretary determines appropriate.’’.
(b) DETERMINATIONS OF CREDITWORTHINESS FOR ISSUANCE OF
DEFENSE TRAVEL CARD.—Section 2784a of title 10, United States
Code, is amended—
(1) by redesignating subsections (d) and (e) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (c) the following new sub-
section (d):
H. R. 1588—197
‘‘(d) DETERMINATIONS OF CREDITWORTHINESS FOR ISSUANCE OF
DEFENSE
TRAVEL
CARD.—(1) The Secretary of Defense shall
evaluate the creditworthiness of an employee of the Department
of Defense or a member of armed forces before issuing a Defense
travel card to such an employee or member. The evaluation may
include an examination of the individual’s credit history in available
credit records.
‘‘(2) An individual may not be issued a Defense travel card
if the individual is found not creditworthy as a result of the evalua-
tion required under paragraph (1).’’.
(c) DISCIPLINARY ACTIONS AND ASSESSING PENALTIES FOR MISUSE
OF DEFENSE TRAVEL CARDS.—
(1) REQUIREMENT FOR REGULATIONS.—Section 2784a of title
10, United States Code, is further amended by inserting after
subsection (d) (as added by subsection (b)) the following new
subsection (e):
‘‘(e) REGULATIONS ON DISCIPLINARY ACTION.—(1) The Secretary
of Defense shall prescribe regulations for making determinations
regarding the taking of disciplinary action, including assessment
of penalties, against Department of Defense personnel for improper,
fraudulent, or abusive use of Defense travel cards by such personnel.
‘‘(2) The regulations prescribed under paragraph (1) shall—
‘‘(A) provide for appropriate adverse personnel actions or
other punishment to be imposed in cases in which employees
of the Department of Defense violate such regulations or are
negligent or engage in misuse, abuse, or fraud with respect
to a Defense travel card, including removal in appropriate
cases; and
‘‘(B) provide that a violation of such regulations by a person
subject to chapter 47 of this title (the Uniform Code of Military
Justice) is punishable as a violation of section 892 of this
title (article 92 of the Uniform Code of Military Justice).’’.
(2) REPORT.—Not later than February 1, 2004, the Sec-
retary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a
report on the regulations prescribed under section 2784a(e)
of title 10, United States Code, as added by paragraph (1).
The report shall include the following:
(A) The regulations.
(B) A discussion of the implementation of the regula-
tions.
(C) A discussion of any additional administrative
action, or any recommended legislation, that the Secretary
considers necessary to effectively take disciplinary action
against and penalize Department of Defense personnel for
improper, fraudulent, or abusive use of Defense travel cards
by such personnel.
(3) DEFENSE TRAVEL CARD DEFINED.—In this subsection,
the term ‘‘Defense travel card’’ has the meaning given such
term in section 2784a(f)(1) of title 10, United States Code
(as redesignated by subsection (b)).
H. R. 1588—198
Subtitle B—Naval Vessels and Shipyards
SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESERVATION OF
SURGE CAPABILITY FOR NAVAL SURFACE COMBATANTS.
(a) REPEAL.—Section 7296 of title 10, United States Code, is
amended by striking subsection (b).
(b) CLERICAL AMENDMENTS.—Such section is further amended—
(1) by striking ‘‘(3) Any notification under paragraph (1)(A)’’
and inserting ‘‘(b) CONTENT OF NOTIFICATION.—Any notification
under subsection (a)(1)(A)’’;
(2) by redesignating subparagraphs (A), (B), and (C) of
subsection (b) (as redesignated by paragraph (1)) as paragraphs
(1), (2), and (3), respectively; and
(3) by striking ‘‘subparagraph (B)’’ in subsection (b)(3) (as
redesignated by paragraphs (1) and (2)) and inserting ‘‘para-
graph (2)’’.
SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO USE FOR
EXPERIMENTAL PURPOSES OF VESSELS STRICKEN FROM
NAVAL VESSEL REGISTER.
(a) ENVIRONMENTAL REMEDIATION.—Paragraph (1) of subsection
(b) of section 7306a of title 10, United States Code, is amended—
(1) by inserting ‘‘AND ENVIRONMENTAL REMEDIATION OF’’
in the subsection heading after ‘‘STRIPPING’’; and
(2) by inserting before the period at the end the following:
‘‘and such environmental remediation of the vessel as is
required for the use of the vessel for experimental purposes’’.
(b) SALE
OF
MATERIAL
AND
EQUIPMENT
STRIPPED
FROM
VESSEL.—Subsection (b) of such section is further amended—
(1) by redesignating paragraph (2) as paragraph (3);
(2) by inserting after paragraph (1) the following new para-
graph (2):
‘‘(2) Material and equipment stripped from a vessel under para-
graph (1) may be sold by the contractor or by a sales agent approved
by the Secretary.’’; and
(3) in paragraph (3), as redesignated by paragraph (1),
by striking ‘‘scrapping services’’ and all that follows through
the end of such subsection and inserting ‘‘services needed for
such stripping and for environmental remediation required for
the use of the vessel for experimental purposes. Amounts
received in excess of amounts needed for reimbursement of
those costs shall be deposited into the account from which
the stripping and environmental remediation expenses were
incurred and shall be available for stripping and environmental
remediation of other vessels to be used for experimental pur-
poses.’’.
(c) CLARIFICATION
OF COVERED EXPERIMENTAL PURPOSES.—
Such section is further amended by adding at the end the following
new subsection:
‘‘(c) USE FOR EXPERIMENTAL PURPOSES DEFINED.—In this sec-
tion, the term ‘use for experimental purposes’, with respect to
a vessel, includes use of the vessel in a Navy sink exercise or
for target purposes.’’.
H. R. 1588—199
SEC. 1013. TRANSFER OF VESSELS STRICKEN FROM THE NAVAL
VESSEL REGISTER FOR USE AS ARTIFICIAL REEFS.
(a) AUTHORITY TO MAKE TRANSFER.—Chapter 633 of title 10,
United States Code, is amended by inserting after section 7306a
the following new section:
‘‘§ 7306b. Vessels stricken from Naval Vessel Register:
transfer by gift or otherwise for use as artificial
reefs
‘‘(a) AUTHORITY TO MAKE TRANSFER.—The Secretary of the
Navy may transfer, by gift or otherwise, any vessel stricken from
the Naval Vessel Register to any State, Commonwealth, or posses-
sion of the United States, or any municipal corporation or political
subdivision thereof, for use as provided in subsection (b).
‘‘(b) VESSEL TO BE USED AS ARTIFICIAL REEF.—An agreement
for the transfer of a vessel under subsection (a) shall require that—
‘‘(1) the recipient use, site, construct, monitor, and manage
the vessel only as an artificial reef in accordance with the
requirements of the National Fishing Enhancement Act of 1984
(33 U.S.C. 2101 et seq.), except that the recipient may use
the artificial reef to enhance diving opportunities if that use
does not have an adverse effect on fishery resources (as that
term is defined in section 2(14) of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C.
1802(14)); and
‘‘(2) the recipient obtain, and bear all responsibility for
complying with, applicable Federal, State, interstate, and local
permits for using, siting, constructing, monitoring, and man-
aging the vessel as an artificial reef.
‘‘(c) PREPARATION OF VESSEL FOR USE AS ARTIFICIAL REEF.—
The Secretary shall ensure that the preparation of a vessel trans-
ferred under subsection (a) for use as an artificial reef is conducted
in accordance with—
‘‘(1) the environmental best management practices devel-
oped pursuant to section 3504(b) of the Bob Stump National
Defense Authorization Act for Fiscal Year 2003 (Public Law
107–314; 16 U.S.C. 1220 note); and
‘‘(2) any applicable environmental laws.
‘‘(d) COST
SHARING.—The Secretary may share with the
recipient of a vessel transferred under subsection (a) any costs
associated with transferring the vessel under that subsection,
including costs of the preparation of the vessel under subsection
(c).
‘‘(e) NO LIMITATION ON NUMBER OF VESSELS TRANSFERABLE
TO PARTICULAR RECIPIENT.—A State, Commonwealth, or possession
of the United States, or any municipal corporation or political
subdivision thereof, may be the recipient of more than one vessel
transferred under subsection (a).
‘‘(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may
require such additional terms and conditions in connection with
a transfer authorized by subsection (a) as the Secretary considers
appropriate.
‘‘(g) CONSTRUCTION.—Nothing in this section shall be construed
to establish a preference for the use as artificial reefs of vessels
stricken from the Naval Vessel Register in lieu of other authorized
uses of such vessels, including the domestic scrapping of such
H. R. 1588—200
vessels, or other disposals of such vessels, under this chapter or
other applicable authority.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating
to section 7306a the following new item:
‘‘7306b. Vessels stricken from Naval Vessel Register: transfer by gift or otherwise
for use as artificial reefs.’’.
SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.
(a) IN GENERAL.—Section 1103 of the Merchant Marine Act,
1936 (46 U.S.C. App. 1273) is amended—
(1) in subsection (i) (as added by section 3544 of this
Act) by striking ‘‘PRIORITY’’and inserting ‘‘PRIORITY
FOR
NATIONAL DEFENSE TANK VESSELS’’; and
(2) by adding at the end the following:
‘‘(j) PRIORITY FOR OTHER VESSELS SUITABLE FOR SERVICE AS
A NAVAL AUXILIARY.—In guaranteeing and entering commitments
to guarantee under this section, the Secretary shall, after applying
subsection (i), give priority to a guarantee or commitment for a
vessel that is otherwise eligible for a guarantee under this section
and that the Secretary of Defense determines—
‘‘(1) is suitable for service as a naval auxiliary in time
of war or national emergency; and
‘‘(2) meets a shortfall in sealift capacity or capability.’’.
(b) REPORT.—Within 180 days after the date of the enactment
of this Act, the Secretary of Transportation and the Secretary
of Defense shall transmit a report to the Senate Committee on
Armed Services, the Senate Committee on Commerce, Science, and
Transportation, and the House of Representatives Committee on
Armed Services that—
(1) sets forth the criteria to be used by the Secretary
of Defense in making, for purposes of section 1103(j) of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1273(j)), as
amended by this section, the determinations described in para-
graphs (1) and (2) of that section; and
(2) describes the procedure that the Secretary of Defense
will follow—
(A) in reviewing applications for which priority treat-
ment is sought under section 1103(j) of that Act; and
(B) in reporting to the Secretary of Transportation
with respect to such applications.
SEC. 1015. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS
AND SHIPBOARD EQUIPMENT.
(a) IN GENERAL.—Chapter 633 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 7316. Support for transfers of decommissioned vessels and
shipboard equipment
‘‘(a) AUTHORITY TO PROVIDE ASSISTANCE.—The Secretary of
the Navy may provide an entity described in subsection (b) with
assistance in support of a transfer of a vessel or shipboard equip-
ment described in such subsection that is being executed under
section 2572, 7306, 7307, or 7545 of this title, or under any other
authority.
‘‘(b) COVERED VESSELS AND EQUIPMENT.—The authority under
this section applies—
H. R. 1588—201
‘‘(1) in the case of a decommissioned vessel that—
‘‘(A) is owned and maintained by the Navy, is located
at a Navy facility, and is not in active use; and
‘‘(B) is being transferred to an entity designated by
the Secretary of the Navy or by law to receive transfer
of the vessel; and
‘‘(2) in the case of any shipboard equipment that—
‘‘(A) is on a vessel described in paragraph (1)(A); and
‘‘(B) is being transferred to an entity designated by
the Secretary of the Navy or by law to receive transfer
of the equipment.
‘‘(c) REIMBURSEMENT.—The Secretary may require a recipient
of assistance under subsection (a) to reimburse the Navy for
amounts expended by the Navy in providing the assistance.
‘‘(d) DEPOSIT OF FUNDS RECEIVED.—Funds received in a fiscal
year under subsection (c) shall be credited to the appropriation
available for such fiscal year for operation and maintenance for
the office of the Navy managing inactive ships, shall be merged
with other sums in the appropriation that are available for such
office, and shall be available for the same purposes and period
as the sums with which merged.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by adding at the end the following
new item:
‘‘7316. Support for transfers of decommissioned vessels and shipboard equipment.’’.
SEC. 1016. ADVANCED SHIPBUILDING ENTERPRISE.
(a) FINDINGS.—Congress makes the following findings:
(1) The President’s budget for fiscal year 2004, as submitted
to Congress, includes $10,300,000 for the Advanced Ship-
building Enterprise of the National Shipbuilding Research Pro-
gram.
(2) The Advanced Shipbuilding Enterprise is an innovative
program to encourage greater efficiency among shipyards in
the defense industrial base.
(3) The leaders of the Nation’s shipbuilding industry have
embraced the Advanced Shipbuilding Enterprise as a method
of exploring and collaborating on innovation in shipbuilding
and ship repair that collectively benefits all manufacturers
in the industry.
(b) SENSE OF THE CONGRESS.—It is the sense of the Congress
that—
(1) the Congress strongly supports the innovative Advanced
Shipbuilding Enterprise of the National Shipbuilding Research
Program that has yielded new processes and techniques to
reduce the cost of building and repairing ships in the United
States;
(2) the Congress is concerned that the future-years defense
program submitted to Congress for fiscal year 2004 does not
reflect any funding for the Advanced Shipbuilding Enterprise
after fiscal year 2004; and
(3) the Secretary of Defense and the Secretary of the Navy
should continue funding the Advanced Shipbuilding Enterprise
at a sustaining level through the future-years defense program
to support subsequent rounds of research that reduce the cost
of designing, building, and repairing ships.
H. R. 1588—202
SEC. 1017. REPORT ON NAVY PLANS FOR BASING AIRCRAFT CARRIERS.
(a) FINDINGS.—Congress finds that—
(1) the Committee on Armed Services of the Senate, in
its report to accompany the bill S. 2514 of the 107th Congress
(Senate Report 107–151, filed May 15, 2002), at page 442
of that report directed that the Chief of Naval Operations
submit to the congressional defense committees, not later than
180 days after enactment of the defense authorization Act
for fiscal year 2003, a report on plans of the Navy for basing
aircraft carriers through 2015;
(2) the Bob Stump National Defense Authorization Act
for Fiscal Year 2003 (Public Law 107–314) was enacted on
December 2, 2002; and
(3) as of October 24, 2003, the Chief of Naval Operations
has not submitted the report referred to in paragraph (1).
(b) REPORT ON AIRCRAFT CARRIER BASING PLANS.—Not later
than 120 days after the date of the enactment of this Act, the
Secretary of Defense shall submit to the congressional defense
committees a report on plans of the Navy for basing aircraft carriers
through 2020.
SEC. 1018. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.
The Secretary of the Navy may not dispose of the decommis-
sioned destroyer ex-Forrest Sherman (DD–931) before October 1,
2004, to an entity that is not a nonprofit organization unless the
Secretary first determines that there is no nonprofit organization
that meets the criteria for donation of that vessel under section
7306(a)(3) of title 10, United States Code.
Subtitle C—Counterdrug Matters
SEC. 1021. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE
ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES.
(a) GENERAL EXTENSION OF AUTHORITY.—Subsection (a) of sec-
tion 1033 of the National Defense Authorization Act for Fiscal
Year 1998 (Public Law 105–85; 111 Stat. 1881) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Subject to’’;
(2) by striking ‘‘either or both’’ and inserting ‘‘any’’; and
(3) by inserting after the second sentence the following
new paragraph:
‘‘(2) The authority to provide support to a government under
this section expires September 30, 2006.’’.
(b) ADDITIONAL GOVERNMENTS ELIGIBLE TO RECEIVE SUP-
PORT.—Subsection (b) of such section is amended by adding at
the end the following new paragraphs:
‘‘(3) The Government of Afghanistan.
‘‘(4) The Government of Bolivia.
‘‘(5) The Government of Ecuador.
‘‘(6) The Government of Pakistan.
‘‘(7) The Government of Tajikistan.
‘‘(8) The Government of Turkmenistan.
‘‘(9) The Government of Uzbekistan.’’.
(c) TYPES
OF SUPPORT.—Subsection (c) of such section is
amended—
(1) in paragraph (2), by striking ‘‘riverine’’; and
(2) in paragraph (3), by inserting ‘‘or upgrade’’ after
‘‘maintenance and repair’’.
H. R. 1588—203
(d) MAXIMUM ANNUAL AMOUNT OF SUPPORT.—Subsection (e)(2)
of such section is amended by striking ‘‘$20,000,000 during any
of the fiscal years 1999 through 2006’’ and inserting ‘‘$20,000,000
during any of the fiscal years 1999 through 2003, or $40,000,000
during any of the fiscal years 2004 through 2006’’.
(e) COUNTER-DRUG PLAN.—(1) Subsection (h) of such section
is amended—
(A) in the subsection caption, by striking ‘‘RIVERINE’’;
(B) in the matter preceding paragraph (1)—
(i) by striking ‘‘fiscal year 1998’’ and inserting ‘‘fiscal
year 2004’’; and
(ii) by striking ‘‘riverine’’; and
(C) by striking ‘‘riverine’’ each place it appears in para-
graphs (2), (7), (8), and (9).
(2) Subsection (f)(2)(A) of such section is amended by striking
‘‘riverine’’.
(f) CLERICAL AND CONFORMING AMENDMENTS.—(1) Subsection
(b) of such section is further amended—
(A) in paragraph (1), by striking ‘‘, for fiscal years 1998
through 2002’’; and
(B) in paragraph (2), by striking ‘‘, for fiscal years 1998
through 2006’’.
(2) The heading for such section is amended by striking ‘‘PERU
AND COLOMBIA’’ and inserting ‘‘OTHER COUNTRIES’’.
SEC. 1022. AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUP-
PORT TO LAW ENFORCEMENT AGENCIES CONDUCTING
COUNTER-TERRORISM ACTIVITIES.
(a) AUTHORITY.—A joint task force of the Department of Defense
that provides support to law enforcement agencies conducting
counter-drug activities may also provide, subject to all applicable
laws and regulations, support to law enforcement agencies con-
ducting counter-terrorism activities.
(b) CONDITIONS.—Any support provided under subsection (a)
may only be provided in the geographic area of responsibility of
the joint task force.
SEC. 1023. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND
COUNTERTERRORISM CAMPAIGN IN COLOMBIA.
(a) AUTHORITY.—(1) In fiscal year 2004, funds available to
the Department of Defense to provide assistance to the Government
of Colombia may be used by the Secretary of Defense to support
a unified campaign by the Government of Colombia against nar-
cotics trafficking and against activities by organizations designated
as terrorist organizations, such as the Revolutionary Armed Forces
of Colombia (FARC), the National Liberation Army (ELN), and
the United Self-Defense Forces of Colombia (AUC).
(2) The authority to provide assistance for a campaign under
this subsection includes authority to take actions to protect human
health and welfare in emergency circumstances, including the
undertaking of rescue operations.
(b) APPLICABILITY OF CERTAIN LAWS AND LIMITATIONS.—The
use of funds pursuant to the authority in subsection (a) shall
be subject to the following:
(1) Sections 556, 567, and 568 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act,
2002 (Public Law 107–115; 115 Stat. 2160, 2165, and 2166).
H. R. 1588—204
(2) Section 8077 of the Department of Defense Appropria-
tions Act, 2004 (Public Law 108–87; 115 Stat. 2267).
(3) The numerical limitations on the number of United
States military personnel and United States individual civilian
contractors in section 3204(b)(1) of the Emergency Supple-
mental Act, 2000 (division B of Public Law 106–246; 114 Stat.
575), as amended by the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 2002 (Public Law
107–115; 115 Stat. 2131).
(c) LIMITATION
ON PARTICIPATION
OF UNITED STATES PER-
SONNEL.—No United States Armed Forces personnel, United States
civilian employees, or United States civilian contractor personnel
employed by the United States may participate in any combat
operation in connection with assistance using funds pursuant to
the authority in subsection (a), except for the purpose of acting
in self defense or of rescuing any United States citizen, including
any United States Armed Forces personnel, United States civilian
employee, or civilian contractor employed by the United States.
(d) RELATION TO OTHER AUTHORITY.—The authority provided
by subsection (a) is in addition to any other authority in law
to provide assistance to the Government of Colombia.
SEC. 1024. SENSE OF CONGRESS ON RECONSIDERATION OF DECISION
TO TERMINATE BORDER AND SEAPORT INSPECTION
DUTIES OF NATIONAL GUARD UNDER NATIONAL GUARD
DRUG INTERDICTION AND COUNTER-DRUG MISSION.
(a) FINDINGS.—Congress makes the following findings:
(1) The counter-drug inspection mission of the National
Guard is highly important in preventing the entry of illegal
narcotics into the United States.
(2) The expertise of members of the National Guard in
conducting vehicle inspections at United States borders and
seaports has contributed to the identification and seizure of
illegal narcotics being smuggled into the United States.
(3) The support provided by the National Guard to the
United States Customs Service and the Bureau of Border Secu-
rity of the Department of Homeland Security greatly enhances
the capability of these agencies to perform counter-terrorism
surveillance and other border protection duties.
(b) SENSE
OF CONGRESS.—It is the sense of Congress that
the Secretary of Defense should reconsider the decision of the
Department of Defense to terminate the border inspection and
seaport inspection duties of the National Guard as part of the
drug interdiction and counter-drug mission of the National Guard.
Subtitle D—Reports
SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING
REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF
DEFENSE.
(a) TITLE 10, UNITED STATES CODE.—Title 10, United States
Code, is amended as follows:
(1) Section 117(e) is amended by striking ‘‘each month’’
and all that follows through ‘‘subsection (d)’’ and inserting
‘‘each quarter submit to the congressional defense committees
a report in writing containing the results of the most recent
joint readiness review under subsection (d)(1)(A)’’.
H. R. 1588—205
(2) Section 127(d) is amended to read as follows:
‘‘(d) ANNUAL REPORT.—Not later than December 1 each year,
the Secretary of Defense shall submit to the congressional defense
committees a report on expenditures during the preceding fiscal
year under subsections (a) and (b).’’.
(3) Section 127a is amended by striking subsection (d).
(4) Section 128 is amended by striking subsection (d).
(5) Section 226(a) is amended—
(A) by striking ‘‘December 15’’ and inserting ‘‘January
15’’; and
(B) by striking ‘‘in the following year’’ in paragraph
(1) and inserting ‘‘in that year’’.
(6)(A) Section 228 is amended—
(i) in subsection (a)—
(I) by striking ‘‘MONTHLY’’ in the subsection
heading and inserting ‘‘QUARTERLY’’;
(II) by striking ‘‘monthly’’ and inserting ‘‘quar-
terly’’; and
(III) by striking ‘‘month’’ and inserting ‘‘fiscal-year
quarter’’; and
(ii) in subsection (c), by striking ‘‘month’’ each place
it appears and inserting ‘‘quarter’’.
(B)(i) The heading of such section is amended to read
as follows:
‘‘§ 228. Quarterly reports on allocation of funds within oper-
ation and maintenance budget subactivities’’.
(ii) The item relating to section 228 in the table of sections
at the beginning of chapter 9 is amended to read as follows:
‘‘228. Quarterly reports on allocation of funds within operation and maintenance
budget subactivities.’’.
(7) Section 437 is amended—
(A) by striking the second sentence of subsection (b);
and
(B) in subsection (c)—
(i) by striking ‘‘report)—’’ in the matter preceding
paragraph (1) and inserting ‘‘report) the following:’’;
(ii) by striking ‘‘a’’ in paragraphs (1), (2), and (3)
after the paragraph designation and inserting ‘‘A’’;
(iii) by striking the semicolon at the end of para-
graph (1) and inserting a period;
(iv) by striking ‘‘; and’’ at the end of paragraph
(2) and inserting a period; and
(v) by adding at the end the following new para-
graph:
‘‘(4) A description of each corporation, partnership, or other
legal entity that was established.’’.
(8)(A) Section 520c is amended—
(i) by striking subsection (b);
(ii) by striking ‘‘(a) PROVISION OF MEALS AND REFRESH-
MENTS.—’’; and
(iii) by striking the heading for such section and
inserting the following:
H. R. 1588—206
‘‘§ 520c. Recruiting functions: provision of meals and refresh-
ments’’.
(B) The item relating to such section in the table of sections
at the beginning of chapter 31 is amended to read as follows:
‘‘520c. Recruiting functions: provision of meals and refreshments.’’.
(9) Section 1060 is amended by striking subsection (d).
(10)(A) Section 1130 is amended—
(i) in subsection (a), by striking ‘‘and the other deter-
minations necessary to comply with subsection (b)’’; and
(ii) in subsection (b), by striking ‘‘to the requesting’’
and all that follows and inserting ‘‘to the requesting
Member of Congress a detailed discussion of the rationale
supporting the determination.’’.
(B) The heading for such section, and the item relating
to such section in the table of sections at the beginning of
chapter 57, are each amended by striking the last two words.
(11)(A) Section 1563 is amended—
(i) in subsection (a), by striking ‘‘and the other deter-
minations necessary to comply with subsection (b)’’; and
(ii) in subsection (b), by striking ‘‘notice in writing’’
and all that follows and inserting ‘‘a detailed discussion
of the rationale supporting the determination.’’.
(B) The heading for such section, and the item relating
to such section in the table of sections at the beginning of
chapter 80, are each amended by striking the last two words.
(12) Section 2224 is amended by striking subsection (e).
(13) Section 2255(b) is amended—
(A) by striking paragraph (2);
(B) by striking ‘‘(1)’’ after ‘‘(b) EXCEPTION.—’’;
(C) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(D) by redesignating clauses (i), (ii), and (iii) of para-
graph (1), as redesignated by subparagraph (C), as subpara-
graphs (A), (B), and (C), respectively.
(14) Section 2282 is amended by inserting ‘‘through 2008’’
after ‘‘March 1 of each year’’.
(15) Section 2323(i) is amended by striking paragraph (3).
(16) Section 2327(c)(1) is amended—
(A) in subparagraph (A), by striking ‘‘after the date
on which such head of an agency submits to Congress
a report on the contract’’ and inserting ‘‘if in the best
interests of the Government’’;
(B) in subparagraph (B), by striking ‘‘A report under
subparagraph (A)’’ and inserting ‘‘The Secretary shall main-
tain records of each contract entered into by reason of
subparagraph (A). Such records’’; and
(C) by striking subparagraph (C).
(17) Section 2350a is amended by striking subsection (f).
(18) Section 2350j(e)(2) is amended by inserting before the
period the following: ‘‘or, if earlier, the end of the 14-day period
beginning on the date on which a copy of that report is provided
in an electronic medium pursuant to section 480 of this title’’.
(19) Section 2371(h) is amended by adding at the end
the following new paragraph:
‘‘(3) No report is required under this subsection for a fiscal
year after fiscal year 2006.’’.
H. R. 1588—207
(20) Section 2374a(e) is amended by inserting ‘‘during
which one or more prizes are awarded under the program
under subsection (a)’’ in the first sentence after ‘‘each fiscal
year’’.
(21) Section 2410m(c) is amended—
(A) by striking ‘‘REPORTING REQUIREMENT.—Each year’’
and inserting ‘‘ANNUAL REPORT.—Not later than 60 days
after the end of each fiscal year’’;
(B) by inserting ‘‘at the end of such fiscal year’’ in
paragraph (1) before the period;
(C) by striking ‘‘during the year preceding the year
in which the report is submitted’’ in paragraph (2) and
inserting ‘‘under this section during that fiscal year’’;
(D) by striking ‘‘in such preceding year’’ in paragraph
(3) and inserting ‘‘under this section during that fiscal
year’’; and
(E) by striking ‘‘in such preceding year’’ in paragraph
(4) and inserting ‘‘under this section during that fiscal
year’’.
(22) Section 2457 is amended by striking subsection (d).
(23) Section 2515(d) is amended—
(A) by striking ‘‘ANNUAL’’ in the subsection heading
and inserting ‘‘BIENNIAL’’; and
(B) in paragraph (1)—
(i) in the first sentence, by striking ‘‘an annual
report’’ and inserting ‘‘a biennial report’’;
(ii) in the second sentence, by striking ‘‘each year’’
and inserting ‘‘each even-numbered year’’; and
(iii) in the third sentence, by striking ‘‘during the
fiscal year’’ and inserting ‘‘during the two fiscal years’’.
(24) Section 2521 is amended by striking subsection (e).
(25) Section 2541d is amended—
(A) by striking subsection (b); and
(B) in subsection (a), by striking ‘‘(a)’’ and all that
follows through ‘‘The Secretary of Defense’’ and inserting
‘‘The Secretary of Defense’’.
(26) Section 2645 is amended—
(A) in subsection (d)—
(i) by striking ‘‘to Congress’’ and all that follows
through ‘‘notification of the loss’’ in paragraph (1) and
inserting ‘‘to Congress notification of the loss’’;
(ii) by striking ‘‘loss; and’’ and inserting ‘‘loss.’’;
and
(iii) by striking paragraph (2); and
(B) by striking subsection (g).
(27) Section 2662 is amended—
(A) in subsection (a)—
(i) by redesignating paragraphs (1) through (6)
as subparagraphs (A) through (F), respectively, and
by designating the sentences following subparagraph
(F), as so redesignated, as paragraph (2);
(ii) in paragraph (2), as so designated, by striking
‘‘clause (1) or (2)’’ and inserting ‘‘subparagraph (A)
or (B) of paragraph (1)’’ and by striking ‘‘clause (5)’’
and inserting ‘‘subparagraph (E)’’;
(iii) by inserting ‘‘(1)’’ before ‘‘The Secretary’’;